The retail market in Poland is growing steadily. Poles want to own more and more clothes, not necessarily paying attention to their durability. Nearly half of us admitted, in a study conducted by KPMG (an international audit and advisory firm), that they buy clothing at least once a month. Our retail market in 2018 was worth USD 12 billion, which secured it a place in the top ten among European markets and in the top thirty globally.
So let's explore the trends that will govern the retail market in 2020!
1. The final step of purchase as the biggest differentiator
Where does the future of sales lie?
The final step of the purchase is delivering the item to the customer. This trend is mainly about online stores, which have to bend over backwards to deliver ordered items as quickly as possible. The customer doesn't want to wait a week or two for the item they ordered. So the faster the delivery, the better the opinion of the store. A very popular solution for e-commerce businesses that also have physical locations is the option to order online and pick up in-store. The customer can then collect the package at their most convenient time, rather than waiting for a courier. Brick-and-mortar stores are starting to set aside dedicated spaces for parcel pickup, returns and product complaints, in order to streamline customer flow. In the US, they have even come up with parcel pickup in the form of drive-through, where customers can collect ordered items without leaving their car.
2. The problem with returns
The troublesome issue of returns
Many stores have a problem with the volume of items returned by consumers; it's a logistical problem, but also a financial one. Free returns generate significant losses, where the store pays for the shipping.
For smaller companies this is the main problem, which is why this year experiments are planned to eliminate or minimize this issue. Some larger companies are joining forces and jointly creating small warehouses dedicated solely to returns.
Another problem is what to do with returned items. Those items that have no defects are resold, while those that are damaged or defective are sent to a place where they will be reprocessed into something else. The main goal is for these items to return to sale as quickly as possible, with their cost as close as possible to the price of the original product. Investing in technologies that streamline this process in the coming years will bring significant benefits.
3. Customers choose stores based on what they give to the world
A shift in consumer thinking
The majority of today's customers have their own views on the environment and society. It's no wonder, then, that customers choose companies that support their beliefs. Whether by getting involved in improving working conditions in China or Bangladesh, or perhaps participating in campaigns to save nature and the environment. Charitable activities attract customers interested in the cause. By choosing a company they agree with, they decide who to give their money to. They feel good choosing socially responsible companies or ones that plant trees.
4. Crossing currency borders
Retail trends for 2020 – the most important directions
Retail trends for 2020 – a summary of changes
Due to the development of the internet, used by the majority of the population in developed countries, one cannot fail to notice the growing interest in foreign stores. One of the most popular stores shipping their items internationally is Amazon or AliExpress. Buying in a different currency from a website in a foreign language is becoming increasingly popular. The whole process is facilitated by seamless payments, which convert currency during the money transfer, as well as by access to foreign currency accounts where you can hold money in a given currency.
Now online stores operate not only in their own countries, but globally. Those stores that manage to overcome all the obstacles related to transporting goods, as well as the level of taxes imposed, will achieve the greatest success.
5. Brick-and-mortar stores: the need for change
Challenges for ordinary stores
The number of people buying in brick-and-mortar stores is steadily declining, and the stores themselves are either failing or moving online. The problem is that while online stores are constantly improving, changing strategies and design so that their site is as easy to use and as pleasant as possible, brick-and-mortar stores are standing still. There is a visible need to engage potential customers. Adding a photo zone or new technologies used in fitting rooms will attract consumers to stores. Interesting, or even shocking, the customer will be a good way to make them return to the store.
6. Shopping through social media platforms
On Instagram or Facebook you can set up a shop and sell products from them. More and more users of these platforms are being won over to this way of shopping. On Instagram, you can buy items recommended by influencers or celebrities with a single click. After clicking on a photo, the consumer is automatically redirected to the store where they can purchase the item.
7. Mastering data
This is about data collected on customers and visitors to websites or social media channels. With careful analysis and grouping of customers, you can create better marketing campaigns, improve websites to suit visitors' tastes, but also take much better care of loyal customers and attract new ones. Through analysis, we learn what lives they lead, what goals they have, what age they are, but most importantly what matters to them, what their goals and ideals are. If the majority of visitors care about the deteriorating state of the natural environment, the company can start getting involved in aid, attracting even more customers with this move. Meanwhile, dividing customers by age will help match the form of advertising to the consumer; a young person may see a display ad while playing on their phone, while an older person will more quickly notice an outdoor ad.
Summary
The clothing market in Poland, valued at USD 12 billion, is changing under the influence of new customer expectations. Fast delivery, efficient pickup in brick-and-mortar stores or even in drive-through form, are elements of the fight for the customer. However, costly returns remain a problem, forcing companies to experiment with logistics.
Consumers are increasingly choosing socially responsible brands. The popularity of shopping in foreign stores, such as Amazon or AliExpress, is also growing. Brick-and-mortar stores must change, and sales are permeating social media platforms. The key is the skillful use of customer data.
