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Nov 07 2023
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IFA 2023 – A Core Ingredient in the Evolution of CE

Once again IFA 2023 was the place to be seen for all technology brands and not just those from the CE category. With the show sold out across 26 halls covering 130,000 sqm of exhibition space, filled by 2059 brands from 48 countries, there is no other show that competes. IFA 2023 affirmed its position as the de facto CE showcase, forecasted to host 180,000 visitors from 144 countries over 5 days.

The fact that we have witnessed all markets contract in every category, shrinking by an average of 7% and in particular CE which is down 12.4% globally. The EU market outlook is looking increasingly positive at a more palatable contraction of 4.5% year on year. No doubt this is making the rest of the world a bigger problem for those whose presence is not as prevalent in the EU market, compared to other brands. The economic reality is that the globe is in a  Polycrises, a simultaneous occurrence of several negative global events such as war, extreme weather events, food and energy Inflation which is compounded by increased Interest rates and social unease, unsurprisingly stops people from spending. Therefore the need for a brand to increase its voice rather than remain silent is critical and to do this with a new perspective. Doing so through a new lens that better understands the pain points consumers are experiencing and appeals to the user’s pleasure points. Perhaps achieved through ethical practices, practical time and cost-saving innovations that help ease the pain on a macro level, rather than add to the global situation. That’s why IFA as a cultural hub, is so much more than an exhibition, its place is essential to the industry as the centre stage for the globe’s CE brands not just to brag but to demonstrate how to solve the problems we share as we coexist on this planet. Making IFA a core ingredient in the evolution of the consumer electronics industry.

All brands, big and small, were in attendance with 350 of those 3059 brands being CE startups from across the globe. These included all manner of concepts and categories and there were several robotic floor care startups displaying and showcasing, however, one that caught my imagination was Dreame’s Revolutionary Flagship Robotic Vacuum L20 Ultra with Industry First AI-Driven Mop Extend™. Which is definitely worth a look. However one of my most memorable chats was with the haircare brand SharkNinja and its ultra compact SpeedStyle hairdryer. The irony is, as a follically challenged man, I’ve not owned a hairdryer for 30 years yet I was enthralled by its functionality, design and huge potential consumer appeal, it’s going to be a Christmas wish list essential item.

The themes were consistent across every manufacturer and focussed on Sustainability – Renewables – Connected by AI and  Premium. Let’s start with the latter as while aspiring to be a premium brand is admirable there, in relative terms, there can only ever be a few brands who genuinely sit in the category otherwise it defeats the terminology of ‘premium’. It’s down to the consumer’s perception of what constitutes premium based on how much they are prepared to pay for your products and brand. What you and I may think of as being premium may well not be the view of others and is likely to vary greatly, depending on whether you’re Gen Z or Gen X.

These generations and to be fair, everyone now, wants quality as standard and brought to them at a reasonable price, as well as being produced ethically in all aspects including the manner in which those products are brought to market. Whilst GfK expects the global CE market to still be in the red by the end of this year, the trend is for consumers to replace appliances, as home tech becomes increasingly more innovative, making even those devices and appliances of five years ago look exceptionally dated in look and functionality. Today many want technology which most now consider commonplace in the home, not luxury or the unattainable.

Almost all appliance brands included smart connectivity in their product line-ups presented at IFA 2023, which enables you at a basic level of connectivity, to control your appliance from your phone, hub or television. Personalisation is the next step in the development of your smart home where you can not only change the panels and the lighting of your cooling appliances such as the LG MoodUP Instaview Freezer but also create your own wash program and save it as your personal wash cycle as LG have also done as part of their wider LG THINQ UP 2.0 concept. Taking cooking to new levels of perfection as Haier has done with the ID series featuring a unique style and the exclusive Bionicook technology. With the ID Series, you can not only view what’s cooking in your oven with its built-in camera but also see it on your phone or TV and the built-in screen on the oven’s facia. It’s opening up the options for personalisation in your home tech to meet the needs of the household to a unique level of personal satisfaction.

Combine this with AI, assisting in noting your trends on laundry, cooking and cleaning, which enables it to update the software on your connected appliances as you would update the apps on your phone or tablet. The AI functionality improves the efficiency of, for example, a more effective wash cycle so that it uses less energy while still giving you a great wash thanks to the connectivity and the hOn app which allows users to get the most out of their Candy Machine. Increasing innovation and enhancing sustainability credentials which for many brands also extends throughout the entire product, and not just its materials. With almost all brands now adopting a policy where a percentage of all products are made utilising recycled materials and not just its packaging. At the forefront of this message was both LG and Samsung who were championing this throughout their product categories. Taking the initiative a step further, linking these credentials into the aspirational brand qualities, which many consumers are now looking for in a true premium brand.

So what’s different this year is that people are asking more questions and drilling down on the specifics. While 74% said they will search online before buying, search data also shows sustained growth in terms containing questions — up 25% compared to the past three years during the same period — and searches for “which is best” and “where to buy” continue to garner momentum in the shopping category on Google Trends. Those searching online, we know like to shop in-store when it is a considered purchase. So make sure you feature on that where to buy ist.

Whilst the wealth of bands at IFA 2023 were vast, you could not miss one brand in particular whose branding adorned the neck of almost everyone with its very clever lanyard sponsorship. That brand was Hisense who was this year, IFA’s headline sponsor and gave the opening keynote delivered by its Global President,  Fisher Yu whom also announced the brand’s sponsorship of the Euro 2024 Football tournament due to be held in Germany. When you are a brand that not only makes TV but also appliances and applications, it’s easier to integrate your devices and with VIDAA at the heart of the ecosystem, Hisense products and its fellow brand stable mates can integrate via the VIDAA interface making the TV in your home, the hub of the household that connects your smart home ecosystem. Making the screen the focus of your living space where you control your appliances around the house via your Smart TV. With ViDAA now in 180 countries and connected to 22 million devices, the task for Hisense is perhaps slightly easier than it may be for other brands in the CE sector. Coupled with the shift from content to services the next step is how to monetize this conversion and its integration with responsive and predictive AI, to further enhance the user’s experience and lifestyle. Easier done when you own the platform and make the devices it connects to.

It’s fair to say that the outlook for retailers is exciting with increasingly more innovation in all categories and an enhanced social responsibility tone that now takes on many more subject matters. These include AI and sustainability which are now common parlance in the sales approach by brands to their target consumers, old and new. For those amongst us who ignore the trends that come out of IFA, do so at some risk, as these trends will inevitably become standard messaging across every category and brand within the year, not the distant future. It’s crucial for the success of all within the industry to embrace, understand and develop these trends to create meaningful consumer conversations.

To read the published article written by Dan Todaro, Managing Director please visit ERT

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Oct 04 2023
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‘Inevitable’ fall of Wilko explained – ‘atrocious’ online to ‘ghost ship’ stores

“They were occupying an ex-Woolworth’s size store with 2,500 square feet, if not bigger, and paying excessive amounts of rent, excessive amounts of rates, with very little support from the government,” Daniel said. “The average basket value was low and they were never going to make a huge amount of money as margin, when you consider all of their overheads including salaries.

“But they didn’t appeal to a mass audience and they didn’t make themselves known to a younger audience, who ultimately probably would have enjoyed shopping there on the basis that it would have fitted in with their budget, but it just did not appeal to them in that way. It puts shoppers off to walk into a giant store that is half empty. They could have sectioned off 500 square foot of the store and put everything in there to create a more appealing shopping environment rather than feeling like you were in a ghost ship.”

But it was ultimately their failure to have a strong online presence that left Wilko ultimately vulnerable, Daniel added: “Their online offering was atrocious, it was appalling,” Daniel said. “In the space of nine months, they borrowed 105 million pounds. Was there no consideration of that money that they borrowed to help develop that online proposition and create a new audience. You have to question where did this money go?

“As an organisation, they were struggling to appeal to a certain demographic, couldn’t sell enough of their low-end products to make enough margin to keep these stores going – so did no one think about investing part of that to just develop some kind of online proposition?

The general demise of the high street also played a big part in Wilkos downfall with the loss of big high-street stores such as Debenhams, which entered administration twice throughout its 242 years but finally collapsed for the final time in 2020. Other big high street losses included Sir Philip Green’s retail empire, Arcadia Group, which included brands such as Topshop, Topman, Burton, Dorothy Perkins, Miss Selfridge and Evans. It fell into the hands of administrators in 2020, under the weight of a £750million debt pile. Another brand previously owned by Sir Philip Green and one of the most famous on the street, BHS, had fallen into administration a few years before in April 2016.

“Once one starts to fall, it’s a domino effect for town centres because if they’re not drawing that portfolio, then it’s very difficult to draw somebody to the town, park up and wander through,” Rick said. “Then there’s the demise of the town where a lot of people were saying that it’s dirty and people were generally being put off because the shutters were up, the wrong people were in the towns, and its demise was setting in from the big boys leaving those locations. It’s just generally been a slow strangulation of the High Street and when one goes its a domino effect.”

Daniel agreed, adding: “Wilko was never a destination store – you didn’t come into town to shop at Wilko, you wandered into Wilco after visiting the bank or going to M&S or the post office. Debenhams’ loss decimated certain towns where it was literally the anchor store in the most prominent position in the high street. Part of their downfall was that there wasn’t the footfall. The high street needs help, not just from the government and local council, but from responsible retailers too.”

When the pandemic hit in 2020, people were forced to use online to order shopping and deliveries, only hammering home Wilko’s failure to make it online. “Places like Wilko had the benefit of a broad offering of toothpaste, pet food and everything, but their model is where the problem lies and instead people went to places like Asda online and got there, instead of the high street,” Rick said. “Wilkos didn’t have its foot in the market early enough for it to capitalise on it when things started to go wrong.”

Even when the cost-of-living crisis hit, Wilko, as a budget high-street store, may have been expected to survive – but there were other competitors out there. Rick explained: “Places like The Ranch have sprung up over the years and been able to give Wilko clients an offering not only just in store but online.

“In these times, it’s about sifting the wheat from the chaff and inevitably those that are strong, and have good contingencies and can weather the storms will always prosper out of this. But unfortunately Wilkos from one reason to another reason, to another reason just couldn’t weather this type of storm.”

For Wilkos’ former employers, Daniel said he hopes they are redeployed into other stores, but in reality, fears they will “fade into the rest of the unemployment figures”. This, he says, is only more reason why the government needs to get involved in saving the high street.

“Do you really want another lead wave of redundancies happening on your High Street, which is then going to further impact your entire local economy and what it costs the taxpayer to then support them?” Daniel said. “This is a very short sighted view that this government is taking that will actually cost more in the long run than if you had done something to support the High Street and to help the high street thrive and survive, as opposed to letting it die.”

To read the published article written by Dan Todaro, Managing Director please visit Mirror

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Sep 25 2023
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Empowering Small Businesses: A Plea for Supportive Government Policies

The economic landscape in the UK has been incredibly challenging in recent years, particularly for SMEs. These companies make up the business backbone of this nation and they are likely to be the driving force behind our recovery and any potential growth-based revival, ploughing more into local economies than large corporations, particularly those registered offshore.

Their undeniable contribution to economic recovery and expansion should not be underestimated. According to Government statistics, SMEs constitute 60% of the UK workforce and contribute 52% to the country’s GDP. They provide employment for 16.4 million people and generated a remarkable £2.1trn in turnover in 2022. Despite the Government’s claim to support and champion small businesses, the current administration has imposed hurdle after hurdle in the paths of many.

In 2020, the UK witnessed an unprecedented 47% increase in SME business failures compared to 2019, as reported by the Insolvency Service. This was a significant blow to the economy, despite Government support measures. Unfortunately, this trend has continued, exacerbated by an economic downturn, surging inflation, and looming loan repayments.

The situation did not improve. In the first quarter of 2022, there were 10,790 SME business failures in the UK, marking a 10% increase compared to the same period in 2021. These statistics underscore the urgent need for comprehensive support and policies that genuinely champion the vital SME sector in its economic recovery efforts.

The road to sustainable growth

Business owners have voiced their concerns about the absence of support, the weight of taxes, and the financial obstacles that hinder their progress. It is time that this Government wakes up and addresses these pressing failures overseen by the then Chancellor of the Exchequer and now Prime Minister. Is it not incumbent on this same person now running the Government and supposedly steering the nation, albeit a bit haphazardly, to formulate key policies that not only encourage long-term growth but also pave the way for sustainability?

Here are a few suggestions that could assist in turning this situation around:

  1. Easing the tax load and boosting incentives

    Entrepreneurs yearn for a reprieve from tax burdens and seek financial incentives tailored to their unique needs. A judicious approach by the Government, offering tax breaks and incentives designed to allow small businesses to retain a larger portion of their profits is needed. Against this backdrop repealing the hugely damaging rise in corporation tax would be a welcome first step.
  2. Facilitating access to affordable financing

    The struggle to secure affordable financing for expansion is an ongoing battle for small businesses. Exorbitant interest rates and stringent loan requirements are discouraging, dampening aspirations to invest in growth. This has been further heightened by pandemic loans that need to be repaid. In other words, businesses find themselves caught in a financial quagmire.

    A well-structured plan by the Government, offering specialised loan programs with favourable interest rates and more flexible repayment options, can potentially be a lifeline for small businesses in need of capital infusion. The level of interest rates makes business investment an unattainable dream.
  3. Nurturing skills with targeted training

    Investment in skills, the lifeblood of small businesses, has hit a multi-year low. A recent Federation of Small Businesses (FSB) report revealed that SMEs in the UK are investing the least in skills development now, compared to the last five years.

    To empower businesses, foster innovation, and embrace technological advancements, a proactive Government approach is needed. Establishing robust training and development programs can equip SMEs with the tools to enhance employee skills. In turn, this will help them remain competitive and actively contribute to industry growth.

    In today’s challenging market, attracting talent and promoting growth is no small feat, a challenge amplified by the impact of Brexit. However, targeted training initiatives have the potential to bridge the gap between untapped potential and achieving success.
  4. Adapting apprenticeship initiatives

    Apprenticeship programs are undoubtedly beneficial, yet they need to evolve to encompass a wider range of professions, including disciplines like marketing. The Government’s effort in adapting these programs to cater to professions beyond the conventional trades can provide a platform for small businesses in diverse sectors to harness apprenticeship potential. Apprenticeships matter, but their scope must broaden.
  5. Easing the strain of business expenses

    For brick-and-mortar businesses, overhead costs – rent, utilities, and other expenses – are immense and have small businesses teetering on the edge. A study by the National Federation of Independent Business (NFIB) found that 60% of small businesses are concerned about their ability to pay their rent. With soaring expenses, how can we grow?

    The Government can help to ease the financial strain on small businesses by introducing relief measures or subsidies. The Government could provide rent relief to small businesses that are struggling to pay their rent. This could be done by providing grants or loans to businesses, or by negotiating with landlords to reduce rent payments. They could also provide utility relief to small businesses. This could be done by providing grants or loans to businesses, or by negotiating with utility companies to reduce utility bills.

    The Government could also provide other subsidies to small businesses, such as subsidies for marketing or training. These subsidies could help businesses to reduce their overhead costs and focus on growth. Do we also encourage a return to the office to facilitate subsidies for those who contribute to the local economy whilst making travel for those commuting more affordable?
  6. Embracing education and diverse talent

    Investing in education and fostering diverse talent is pivotal for a thriving business environment. Eradicating tuition fees, increasing educational funding, and advocating for a rich mix of students pursuing higher education can lead to a skilled and diverse workforce, contributing significantly to small business expansion.

A vision for long-term regeneration

Yes, there would be a cost to pay to implement many of these measures, but the point is transient policies won’t cut it; we need a holistic, long-term strategy for business revival.

Consistent Government policies that alleviate tax burdens, address financing challenges, and prioritise workforce development can infuse stability and empower small businesses to envision sustainable growth. It’s time to focus on real issues, such as homelessness and education, to foster an economy that truly thrives. I realise it might be too much to hope for a cross-party consensus on this, but enlightened politicians should at least try, in the national interest, or face the prospect of a very real business decline for a generation.

Small businesses are the beating heart of our economy, and their success shapes the trajectory of our future. By championing policies that alleviate the hurdles faced by small businesses, the Government can cultivate an ecosystem that promotes innovation, encourages investment, and fuels job creation. The call to action is now, to pave the way for a future where small businesses stand tall, and our economy thrives.

To read the published article by Dan Todaro, Managing Director please visit Business Leader

Photo by Heidi Fin on Unsplash

Aug 21 2023
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Curating the Customer Journey Through Training

When independent stores raise the issue of needing more support from brands to compete against multiple and online retail to remain competitive, there’s no support more valuable than training. Without the sales skills to confidently identify the customer’s needs to sell the benefits of a product that is right for them, you can’t really blame the brand if you aren’t selling more products than forecasted.

Most brands will offer training to your staff and this is free, so if you aren’t taking advantage of it, why not and if you are, do so some more as it’s there to help you and the brand in equal measure.

Allowing your salespeople access to brand ambassadors or training representatives is a positive start to your team’s training journey. Put personalities aside, they aren’t there to be your friend, let them do their job and train your team to develop their core competencies to improve the process of selling consumer electronics. Too often I hear criticism of training teams even before they’ve been allowed to do what they are skilled at doing; training your sales team.

On the whole, every brand will have created modules to be delivered in person or online that are specifically designed to engage with your staff and help them better understand not only the differences in technology options across a range but also the approach, many of which will be incorporating soft skills, how to sell.

Those of you who appreciate the value of training and see the benefits it drives to the store’s bottom line should take what the brand has to offer, perhaps even developing this further by incorporating it into your own training program.

Think about what’s important to you and your customers, be it high-end, entry-level, ease of use or bells and whistles, curate journeys your staff can communicate effectively during the sales process, that embraces the free training your brands have on offer to you. Work with your supplier to develop training that meets the needs of your business, take it beyond generic and make it bespoke to you and your challenges based on your customer profile.  By working with the brand ambassador they will be happy to adapt to make it relevant to you and your needs, after all, they will be rewarded for helping you develop sales.

I am a true advocate of training as an essential part of great retail experiences because it’s what my organisation does and research like our Mind the Knowledge Gap Research helps us understand better. Did you know that:

  • 1 in 10 shoppers have cancelled a planned, considered purchase due to poor in-store advice, This equates to some £15bn in revenue overall over the past year.
    • Gen Z [those now in their 20’s] are most likely to seek out experts
    •  37% of shoppers in the consumer electronics category revealed they would be prepared to spend more if they received excellent and knowledgeable in-store advice
    • 1 in 4 DIY shoppers (25%) were so disappointed by the advice they were put off making an expensive purchase altogether, with 11% pulling the plug on the purchase and walking out of the store.

Unsurprisingly, staff training is not only good for your profits but also morale and the increased motivation of staff enables them to want to learn and do better in their roles especially if it’s linked to personal and career development. It is proven to improve Productivity, Efficiency and Accountability.

Now more than ever, enhancing the customer experience is critical to create theatre in order to take the consumer through the varied steps of the journey from demo to sale. To do this, retailers need to develop the staff’s skill set to be the very best they can be – and this all starts with training.

A key element of success in store, especially in the considered purchase sector,  is the engagement of shoppers with any retail sales advisor. Therefore for a retailer, the need to have proactive, helpful, skilful, knowledgeable staff, capable of providing a personalised experience is key in the battle to convert shoppers into customers in your store.

Curating the customer journey through training enables you to enhance the overall in-store experience, complementing your displays and in-store environment to bring it to life as an experience. Tailored alongside offers and promotions it can be the difference between a sale or not.

If there is one key driver that should be running through a retailer’s training approach, like a stick of rock, is that the experience you offer in-store with fully trained and engaged staff is something the online experience can’t ever replicate.

To read the full article by Dan Todaro, Managing Director please visit ERT Online

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Jul 26 2023
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Smarten up!

When the CEO of BT’s Consumer Division, Marc Allera, announces that the average UK household will contain 50 connected devices by 2023, it’s a sure-fire signal that the smart home sub-sector will continue its growth trajectory and still has some boom opportunities for retail.

In the context of the ever-increasing cost of living, Energy Savings Products within the smart home category are pivotal to many, especially when lots of consumers are looking for ways to save money. Features from timed switch-on to smarter regulating, whether this is for water or heating, are amongst the many features devices such as these offer a cost-conscious consumer.

So, with an estimated 57 per cent of Britain’s homes having a smart device, it makes the UK smart home industry worth approximately £7 billion per annum. Revenue is expected to show an annual growth rate of 12.08 per cent, resulting in a projected market volume of £13.05bn by 2027.

So, this category is definitely one worth considering! For those who know, Matter-enabled products are the future and will enable increased growth across the smart home category. With the Matter initiative and its implementation across future smart tech, it will allow users to unify with one app their product from brands with unique ecosystems, which could result in more than one purchase in-store as the consumer is not tied down to a single ecosystem, thus able to shop around to meet their budget. So, for example, if a customer wants smart lighting, they could choose a brand like Philips alongside a more budget-friendly option to save money.

This development in the evolution of smart products is revolutionary, if you take the example of Security Products to which a consumer will usually connect multiple devices, e.g. a doorbell cam, a camera or security lighting for your back garden and decide to get a smart a door lock, you are no longer tied down to get this and other products from the same brand. In general, not all smart security devices aren’t part of the initial roll-out of the Matter protocol, however, the products will still likely benefit from an uplift in interest thanks to greater interoperability.

As a category, smart security revenue is expected to show an average growth of 11.83 per cent, resulting in a projected market volume from £900 million to £1.41 billion by 2027.

GfK recently commented: “Smart devices generally have benefited from consumers’ drive to create simplicity in their home lives. Intruder security devices, sales of which have grown strongly since the start of the pandemic, now increasingly offer smart connectivity with smartphones and the home ecosystem, enabling users to detect whether or not they have a window open, for example, and then adjust the heating accordingly.”

With the ease of use and flexibility of installation becoming easier, it’s no wonder its popularity is increasing. The convenience factor offered is a huge draw, as well as the peace of mind such devices can give. A doorbell camera for example can give a new perspective to your front door area while also showing some great comedic moments from guests. Most new build homes are smart and therefore when upgrading your current property, smart devices are now a normal feature in the wish list and it is obvious to see why, when we as a nation use smart speakers and smart heating devices as the most popular devices in our homes, with 79 per cent of owners of smart home tech having one or both of these.

When training retail staff and creating messaging around the smart category, it’s important to address consumers’ concerns as speculation or hearsay may deter some shoppers who are keen but reticent.

As identified by YouGov, when it comes to the reasons that non-owners have not considered buying any smart home devices it’s due to security fears. About 39 per cent of respondents stated that security fears are their biggest concern, representing the greatest barrier to a consumer’s entry into the category. The second barrier is cost with 36 per cent that they do not have any smart devices for this reason, a reason that any retailer with the right display and knowledgeable staff can overcome at the point of purchase.

To read the full article by Dan Todaro, Managing Director please visit ERT Online

Photo by John Tekeridis on Pexels

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Jul 07 2023
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Is AI retail’s friend or foe?

Generative AI is the latest buzzword to trend its way across the globe. Supercharged by the popularity of the ChatGPT tool released in November 2022, the world’s largest companies have all accelerated their development and adoption of AI into their products and services. It is clear, amidst the hype, that we have reached a real milestone in its development amidst rocketing use. 

While not necessarily a completely new technology, the traction we are now seeing is undeniable and won’t be slowing down for a while yet. Amid all the discussions, from efficiency boosts to apocalyptic scare-stories, will AI be a friend or foe to the retail world?

Retailers and brands have been investing heavily in digital transformation projects for the past decade, recognising that being at the forefront of relevant technologies improves brand perception, the customer experience, and brings tangible benefits to the bottom line.

Retail has been an early adopter of AI

As a result of this, retail is historically no stranger to AI, with some of the first uses being in interactive chatbots that have been able to help streamline customer service. Although initial uses may have been relatively small scale in stature, the momentum is building and globally the market for AI in retail is expected to grow from the $4.8bn it was last year to $31.2bn by 2028, highlighting just how impressive the forecasts are.

The current economic turbulence and high inflation has hit consumer demand, meaning that competition within retail for both sales and share of voice is fierce. Businesses will, and should, be looking to AI in order to increase their effectiveness both in-store and online. 

Being at this cutting edge does require an investment and the costs required to develop AI have been a barrier to entry for many in retail. However not taking action could prove most costly in the long run. There are clear tangible benefits in efficiency, customer satisfaction and future profits. All of this means brands who take the leap can be in a hugely advantageous position to succeed if the technology is implemented successfully.

Positive sentiment among consumers

For consumers, awareness of AI in general is growing and the overall sentiment is positive despite any ominous warnings. According to a recent survey by PC Mag 67% of people already believe that it will change society greatly, with 62% of Millennials or younger agreeing that the impact on their line of work will be positive rather than seeing it replace them.

Many such consumers will now expect retailers and brands to be adopting the technology in some way or form. There is a very real risk that if you do not experiment you could be left behind by rivals. This desire from shoppers is only set to grow, once they start to realise the  real benefits of AI on their purchasing experience.

Game-changing personalisation

The concept of personalisation has long been one of the key aspects of a top-tier 21st century customer experience. According to recent research from Klarna 65% of consumers want their experience to be more personal in the future. The benefits that AI tools can bring to personalisation could be truly game changing. Being able to crunch vast amounts of data to then provide highly accurate product recommendations on the go is just one such example of how such technology could be leveraged. Imagine an online store that was able to guide customers through their shopping journey, answering questions and curating device recommendations that fit the needs of the consumer from discovery to purchase.

Boosting retail efficiencies

From the retailer and brand perspective, the ability for AI to work effectively with large datasets also lends itself to behind the scenes operations. Stock management and improvements in the supply chain can save retailers money as well as boost profits through dramatically improved efficiency. 

This is something that Next has already been implementing within its merchandising supply chain, allowing AI to utilise its data to forecast stock levels and plan distribution accordingly.

Importantly, CEO Simon Wolfson highlighted that he believed using AI like this is not at the expense of a real merchandising team. In Next’s case, the technology is being used to enhance their team, allowing merchandisers to spend more of their time on spotting trends and stock analysis.

Positive impact on the High Street

Further adoption of the technology will also impact positively on the high street. Again utilising valuable shopper data, AI technology could be used to generate insights that could then power hyper-relevant upselling opportunities, better stock placement in stores, and interactive POS. 

AI presents a multitude of benefits and untapped potential, both offline and online. It holds the key to realising exciting possibilities and enhancing customer experiences with your brand. 

So is AI retail’s friend or foe? I think the positives surely outweigh the negatives when it comes to the long term outlook. There are certainly valid concerns around costs, maintenance and certain roles being affected in future. However most use cases point to the fact that retail has to keep embracing new technologies in order to succeed in the future. Being ahead of the trends is after all how good retailers have always succeeded in the past.

This is particularly true in an ongoing environment of economic uncertainty, where every advantage gained really matters. This is especially the case with all indications pointing to the AI bubble continuing to grow exponentially over the coming years, across all aspects of our lives.
It appears we are just scratching the surface when it comes to the benefits and ROI that AI could bring to both the physical channel and online within retail. It can help set you apart from your competitors and allow you to be dynamic and efficient en route to profitability. AI should be embraced, not feared.

To read the original article by Tom Harwood, Data and Insight Manager please visit Retail Sector

Photo by Andrew Neel from Pexels

Jun 26 2023
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The Power of Influencer Marketing in Retail: Reaching and Engaging Target Audiences

In today’s digital age, where social media has become an integral part of our lives, influencer marketing has emerged as a powerful tool for businesses to reach and engage their target audiences. The retail industry, in particular, has embraced this strategy to harness the power of influencers and leverage their influence over consumers. In this blog post, we will explore the remarkable impact of influencer marketing in retail, focusing on how it helps brands effectively connect with their target audiences.

Building Authenticity and Trust:

One of the key advantages of influencer marketing is its ability to establish authenticity and trust. Consumers today are more likely to trust recommendations from individuals they admire and follow on social media than traditional advertising. Influencers, with their dedicated followers, have cultivated a sense of authenticity and credibility, making their endorsements more genuine. By partnering with influencers, retail brands can tap into this trust and leverage it to engage their target audiences effectively.

Expanding Reach and Visibility:

Influencers have built a loyal fan base, often consisting of thousands or even millions of followers across various social media platforms. Collaborating with influencers allows retail brands to tap into their extensive reach and gain exposure to a broader audience. By featuring products or promoting campaigns through influencers, brands can rapidly expand their visibility and brand awareness, ultimately reaching a larger pool of potential customers.

Targeting Niche Audiences:

Influencers come in various niches, catering to specific interests, demographics, or industries. This diversity allows retail brands to pinpoint and engage their exact target audiences effectively. For instance, a fashion brand can collaborate with a fashion influencer whose content aligns with their brand values and appeals to their target customer base. By leveraging influencers’ expertise in niche markets, retail brands can strategically tailor their messaging and product promotion to resonate with their intended audience.

Driving Sales and Conversions:

Influencer marketing has proven to be a potent driver of sales and conversions for retail brands. When an influencer recommends or endorses a product, their followers are more inclined to consider purchasing it. Influencers often share unique discount codes or exclusive offers, creating a sense of urgency and incentivising their followers to make a purchase. Moreover, influencers’ engaging content, such as unboxing videos, product reviews, or style guides, can inspire and convince potential customers to convert, leading to increased sales for retail brands.

Creating Engaging Content:

Influencers are masters at creating captivating and engaging content. Their ability to tell stories, produce high-quality visuals, and connect with their audience on a personal level makes their content immensely appealing. By collaborating with influencers, retail brands can leverage their creativity and expertise to develop compelling and authentic content that resonates with their target audiences. This content not only boosts brand awareness but also encourages engagement and fosters a sense of community among followers.

Influencer marketing has transformed the way retail brands connect with their target audiences, offering a powerful tool to reach and engage potential customers. By harnessing the authenticity, reach, and creativity of influencers, retailers can establish trust, expand their visibility, target niche audiences, drive sales, and create engaging content. As the digital landscape continues to evolve, influencer marketing is expected to play an even more significant role in the retail industry, shaping consumer behaviour and driving brand success. To stay competitive in the market, retail brands must recognize the power of influencer marketing and harness its potential to connect with their target audiences effectively.

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Jun 06 2023
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An Experience Worth the Effort?

For consumers, a trip to your store has to be worth the effort, time and expenditure, offering an experience that surpasses the convenience of simply buying online from the comfort of home. As a retailer how far do you go and how much do you invest to meet these needs, especially considering the current economic conditions.

It’s worth noting that from a macro perspective, things are not all doom and gloom. People are shopping and spending. The latest ONS data showed positive results for retail with a surprisingly large rise in retail sales for the month of February, the result marking the second consecutive month of industry growth. Volume sales were up by 1.2% against forecasts of 0.2% and once again shows the resilience of the UK consumers against an unrelenting cost of living crisis.

Hopefully this positivity isn’t just a blip, but even so, it’s fortunate that in the ERT world of ‘considered purchases’ – purchases made with significant financial or emotional thought – there is simply no match for the timeless ability of an in-store experience to engage all the senses and stimulate sales. This is particularly the case for consumer electronics and home appliances – categories with products that often require a high spend and technical questions that need to be answered as well as having to fit in with our homes and lifestyles.

True experiential retail as a strategy goes further than this though and could be defined as an approach where physical retail spaces offer additional experiences beyond browsing or buying products. It directly engages customers, inviting them to experience your brand live and in-person. Pop-up events, masterclasses, brand takeovers and hosting community events are all examples of experiential retail that may or may not work for you.

What is undeniable though is that customers now expect more. Research in the US  found that 91% of consumers would be more inclined to purchase a brand’s product or service after participating in a brand activation or experience, and 40% felt they become more loyal to the brand.

Retailers and brands have gone to great lengths to meet these expectations. Blowing the budget earlier in the year was luxury brand Louis Vuitton who transformed stores across the world for the launch of its collection with artist Yayoi Kusama. Stores such as Harrods were redecorated with Kusama’s signature polka-dots and life-like animatronics of Kusama painting in the windows of the stores!

On a slightly less grand scale, ERT has reported several times on how John Lewis has refurbished several stores to create “inspiring spaces to showcase products, experiences and services”. And this year they plan to trial a multi-sensory experience at its Horsham store. This is all great and hopefully it helps strengthen their position on the high street. However, what, in my opinion, can potentially detract from the desired effect is that it is often difficult finding a member of staff to talk to, something made all the more challenging with the no uniform policy.

People really do count when it comes to the overall retail experience. After all, this is a trump card that physical retail has over online channels. Indeed, Gekko’s latest research shows that 42% want to be able to engage with knowledgeable shop staff. It’s therefore surprising to see great looking and no doubt expensive Meta Quest virtual reality demo gaming areas in stores that are cordoned off from shoppers because there is no staff presence. If ever there was a category that needs to be experienced by shoppers before they buy into it, it’s VR.

So how can all this be applied to independent retailers selling consumer electronics and domestic appliances? Unforgettable, mind-blowing experiences that go viral on TikTok are generally going to be the preserve of big city flagship stores like Harrods. What is a realistic expectation is to play to your strengths both as an individual business and a physical retailer. As highlighted above, your staff are vital. Good old fashioned customer service is still fundamental to the retail experience. The research also showed that for 60% of shoppers cite a pleasant retail environment is an important factor to a great retail experience.  For 47% of those surveyed, the top reason for in person shopping versus online is the ability to try before you buy.

Most of you will already be offering this kind of experience for your customers but take the time to regularly reassess how you’re meeting these shopper desires. Moving with the times is essential though. What has worked in the past with your older customers won’t necessarily appeal to younger generations who have different expectations. But whoever the customer, the experience they receive in your store must be worth their while.

To read the full article by Rupert Cook, Marketing Director please visit ERT Online

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May 09 2023
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The Power of Online

Creating an effective online presence is hard and maintaining it is harder still, so why do it? Well, it’s the virtual window to your store and even if it’s a non-transactional site, it’s as important as your store experience.

So when considering your website, always ask what do you want the site to achieve. If you want to drive sales, the site needs to be set up to have your consumers coming to it. You could make the best site in the world but if you don’t attract the right people to it, no one will know it exists, nor will you sell anything. 

If you have the luxury of a big budget to launch a major ATL campaign to drive awareness of the site, then great but if this isn’t an option, then you’ll need to get inventive and use your resources wisely. Therefore it is best that you spend as much time on planning the site as defining your consumer base, driving the customers with each click-through to your site. And don’t forget to make it mobile compatible as according to Statista, 59% of all worldwide website traffic is now on mobile devices. According to Hubspot, the industry benchmark for average dwell time is considered somewhere between 2-4 minutes. It usually takes around this time to explore a website and get a feel for the design and your offering.

You will soon know if you have the right audience coming to the site as they will purchase if it’s an e-commerce site or engage if not, the objective is to not let them drop off, never to be seen again. Play to the key strengths of online, with 85% of consumers researching online before a purchase in store, make sure you use the space at your disposal to portray all key bits of information surrounding the products. 

Consumers will often be coming to your site for information on pricing product details and reviews, so ensuring all this information is readily available and accurate is key and furthermore, this helps with SEO, helping to push your site up the search rankings.

Everything from pricing, through to more detailed specifications should be easily found and digestible and failing to do so will lead to customer drop-off. People will more often than not be looking for this info with a view to also then go and touch, feel, demo a product with a view to purchase in-store.

If you already have a physical store, make sure the site is aligned with your in-store messaging and values. Too often retailers aren’t aware of how messaging, promotions, experience and brand compliance should transcend from store to site and vice versa. Recent Gekko research found that 69% of people surveyed said that a well-synced online and offline experience would help drive a considered purchase.

The customer journey more often than not starts with a visit to your website. Gekko’s research has shown that 85% of shoppers looking to make a significant purchase will do their research online before actually buying. This shopper journey should be developed, keeping the consumer’s attention, rather than leaving them unmotivated to click beyond the landing page or walk through your physical door. Therefore with dwell times on a landing page recorded as up to 4 minutes, the importance of the look, feel and ease to digest information and navigate their way through your site is therefore the key to a successful site. It’s understood that 88% of online shoppers are more likely to continue shopping on a retailer website that offers a personalised experience, increasing to 96% of Gen Z and 97% of Millennials based on research conducted by Elastic.

It may seem an obvious thing to point out for those of you with a physical retail presence but be conscious of using changing seasons, events and promotions as a worthwhile excuse to update your site. Keeping your site fresh and relevant will make sure you are attracting traffic to the site and driving potential customers to shop with you for special seasonal deals. Ensure that any promotion or event you are running in-store is reflected on your site and perhaps create a call to action. By doing this you can get to understand your customer better so that you can proactively market out to them at a later date. Utilise site analytics to assist you in understanding who your consumers are and how they are using your website. Insights on where users are coming from, which pages shoppers look at the most, plus the effectiveness of any marketing campaigns you have running will all help understand key impacts and help in your long-term strategies for the brand and products.

If you create a site that has independent reviews and rating, which is considered standard, then be prepared not only for the positive feedback but also the less than glowing reviews. The reality is that all retailers will get these from time to time. It’s how you deal with this feedback that matters. According to Review Trackers, 94% of online customers have avoided a business due to a negative review. Therefore for over 9 out of 10 customers, online reviews have become essential to their decision-making online. Whilst 94% may avoid you, it’s claimed by Podium that 93% of customers say they’ve made purchasing decisions based on an online review. What’s more, most customers say they won’t engage with a product or business if they see too many negative reviews or a star rating of less than 3.3. Be mindful of how you position your feedback and its features in Google searches of your site.

It is estimated that  21% of UK retail purchases are expected to take place online in 2023. It’s therefore no surprise that your e-commerce strategy is important. With more customers shopping online, your business can sell more and earn more as a result if you’re running an effective e-commerce site. However, whether your goal via your website is to boost direct sales or only engagement, it’s important to create a strategy that encourages consumers to your site and increases dwell time that elevates the customer experience and begins their journey.

Keeping the site uncluttered is critical as is the need to have relevant imagery that truly represents your business, royalty-free stock photography can work but it needs to be true to your brand. Involving your staff can make it personal too. It makes you real and relevant to the consumer with the added bonus that they recognise a few faces when they drop into your store, increasing your credentials as a retailer that values a personal approach to the customer journey. 

To read the full article by Dan Todaro, Managing Director please visit ERT Online

Photo by Negative Space

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Apr 19 2023
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ChatGPT in Retail

ChatGPT is a powerful tool that has been developed by OpenAI, a leader in artificial intelligence and machine learning. This tool has many potential benefits for retailers who are looking to improve their customer service, increase sales, and streamline their operations. In this article, we will explore the ways in which ChatGPT can benefit retailers and how it works.

What is ChatGPT?

ChatGPT is a type of language model that has been trained on a massive dataset of text. It uses deep learning algorithms to understand the meaning of the text and generate responses that are natural and human-like. The model has been trained on a variety of topics, including news articles, books, and online forums. This means that it has a broad knowledge base and can provide accurate and relevant information on many different subjects.

How can ChatGPT benefit retailers?

Improve Customer Service

One of the main benefits of ChatGPT is that it can improve customer service. By using ChatGPT as a chatbot, retailers can provide customers with quick and accurate answers to their questions. This can help to reduce the time that customers spend waiting for assistance and improve their overall experience. ChatGPT can also provide personalized recommendations based on a customer’s previous purchases or browsing history, which can help to increase sales.

Increase sales

Another benefit of ChatGPT is that it can help to increase sales. By providing personalized recommendations to customers, retailers can help to guide them towards products that they are likely to be interested in. ChatGPT can also be used to offer discounts or promotions to customers who are considering a purchase, which can help to encourage them to complete the transaction.

Streamline Operations

ChatGPT can also help retailers to streamline their operations. By automating the customer service process, retailers can reduce the need for staff to answer basic questions and focus on more complex issues. This can help to reduce labour costs and free up staff to focus on other tasks, such as merchandising or inventory management.

Improve Marketing

Finally, ChatGPT can help retailers to improve their marketing efforts. By analyzing customer interactions with the chatbot, retailers can gain valuable insights into customer preferences and behaviour. This information can be used to develop targeted marketing campaigns that are more likely to resonate with customers and drive sales.

How does ChatGPT work?

ChatGPT analyses text inputs and generates responses based on its knowledge base. When a customer types a question into the chatbot, ChatGPT uses natural language processing to understand the meaning of the question and generate a response that is relevant and accurate. The model is also capable of recognizing context and using previous interactions to personalize its responses.

ChatGPT can be integrated into a variety of platforms, including websites, social media platforms, and messaging apps. It can be customized to match a retailer’s branding and style and can be trained on specific product information or customer data to improve its accuracy and relevance.

Conclusion

ChatGPT is a powerful tool that can provide many benefits for retailers. By improving customer service, increasing sales, streamlining operations, and improving marketing, ChatGPT can help retailers to stay competitive in a rapidly changing retail landscape. As more retailers adopt chatbots and other AI-powered tools, ChatGPT is likely to become an increasingly important tool for retailers of all sizes.

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