After struggling over the year and a half, the retail business is bouncing back. The National Retail Federation is forecasting that retail sales will now grow between 10.5 percent and 13.5 percent to more than $4.44 trillion this year as the economy accelerates its pace of recovery.
This momentum is expected to continue into next year but in a world of supply chain challenges, product shortages and the chance of new virus strains keeping consumers away from stores, brands must be nimble and creative to survive in the ever-changed post-pandemic world.
“Marketing agility is here to stay,” says Kristin Harrer, Chief Marketing Officer at Vans. “Not only is there a need to be agile to serve consumers better and operate at the speed of culture, but we also have to be able to respond to change and disruption as it comes. Accelerating a digital offense and building 1:1 relationships is an enabler, but the key is building a marketing capability that is specifically tuned for agility. Sometimes our own internal marketing processes can prevent us from anticipating and leading culture when the world shifts overnight. It is imperative that brands have the ability to act fast now more than ever. We not only have to build that capability and capacity internally, but we have to empower, enable and protect it.”
Retailers that pivot to meet new consumer behaviors and communicate shared values will thrive in 2022. It is all about listening to consumers and meeting them where they are.
“Today, listening to your fans is table stakes,” says Heidi Cooley, Senior Vice President & Chief Marketing Officer at Crocs. “For brands to excel in 2022, they’ll need to step beyond the traditional confines of product to establish two-way dialogue with consumers. Those that choose to respond by putting the consumer at the center of their strategy can inspire fans to join, not just transact with, your brand.”
As brands think about next year, they will need to continue to keep on top of the cultural and government trends and keep lines of communication open with consumers. One form of communication that is valued by consumers today is brand values. Offering programs that show the brand’s authentic connection to making a difference will resonate with consumers in 2022.
“Guests (and gov’t regulations) will continue to demand more transparency and urgency around sustainability – both from a materials innovation and operations perspective,” says Nikki Neuburger, Chief Brand Officer at lululemon. “Brands like ours are investing heavily into these areas as well as alternative retail models – like our ‘lululemon like new’ program that enables both trade in and resale of gently used lululemon products. We are already seeing the many benefits of this new model. It not only extends the lifecycle of our products, but also invites new guests into our brand in a way that aligns with their values.”
New forms of engagement will also be on display for retailers next year as they continue to look for new spaces to engage consumers digitally. “Fashion brands are slowly going to start understanding how to use NFTs beyond video games. NFTs is an ownership layer and it will generate new business models that are community- and auction-based,” said Ana Andjelic, Chief Brand Officer at Banana Republic. “Mass retailers will continue to suffer. Fast fashion brands will accelerate and become stronger. They will continue to go beyond price-strategy towards brand-strategy. Luxury brands are going to become more pervasive, through collaborations, content, and their participation in culture (we are already seeing this with Gucci Vault and Balenciaga x Simpsons).”
Doug Zarkin, Vice President, Chief Marketing Officer at Pearle Vision says that 2022 is going to be yet another “new normal.”
“As the country continues its battle with COVID-19, state and local retail behavior will fluctuate as the debate and discussion continues related to the vaccine mandates and the impact it has on consumer confidence, in-person retail and the ongoing staffing shortages everyone is facing who has a retail facing business,” says Zarkin. “That said, consumers have shown us just how anxious and yet excited they are about a return to brick-and-mortar in person shopping.”
“Brands who invest in delivering a strong value equation (Value = Experience / Price) are being rewarded with consumer confidence and a new form of advocacy in the world of reviews and ratings,” he continues. “We live in a feedback culture and fortunately (or unfortunately) consumer satisfaction is something even higher on the reason to believe, to trust and to visit than ever before. Intentionality a.k.a doing their homework about where they shop is taking an even larger part of the consumer journey and brands who again, understand and lean into this will continue to thrive.”
