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The retail industry is undergoing major transformations in recent years, due to the digitalization and acceleration of e-commerce, changes in purchasing habits and consumer preferences, as well as social, cultural, political and economic phenomena that directly influence it.
In this dynamic and highly competitive context, what does a retail brand need to do to gain its position in the market and in the mind of the customer?
Here are some essential aspects to consider both in the branding/rebranding process of a retail business and in the day-to-day management of its brand.
1. Knowledge of the target audience
Customer-centric approach
A deep understanding of the target audience, the needs, expectations, buying and consumption behavior underlies the entire strategy and business decisions, from the portfolio of products and services offered, the type of retail chosen (physical, online or both), the value and experience promised to the customer, how the brand differentiates itself from the competition or the way in which it communicates.
Amazon is a relevant example of this, being “the everything store” where anyone can find almost anything they want, conveniently and quickly, permanently and efficiently assisted by excellent Customer Service.
Customization
Using data analytics and AI (artificial intelligence), retail brands can tailor their offerings to individual preferences, increasing customer satisfaction and loyalty.
Amazon uses sophisticated algorithms and machine learning to analyze customer behavior and preferences. These are the basis of its recommendation engine, which improves the shopping experience by making it easier for customers to find products of interest.
2. Optimizing the customer experience
Experiential retail
The development of the concept of experiential retail has transformed the way brands interact with consumers. Retail spaces evolve from point of sale to immersive environments that offer unique, memorable experiences beyond simply displaying and presenting products.
It is worth mentioning here the iconic Apple and Lululemon stores that attract millions of visitors annually, perhaps more than famous sights of New York City, becoming destinations that transcend the borders of traditional retail.
Omnichannel integration
The presence and omnichannel manifestation of the brand is no longer a luxury; it is a necessity. Consumers expect an integrated, unified phygital (physical + digital) experience across all online and offline points of contact with the brand.
Nike and Starbucks fully master this concept, leveraging every channel and way of interacting with the customer to promote their products/services and personalize the buying and consuming experience. For example, the Nike app offers the ability to book or customize products online to pick them up from the store and send notifications related to events and special offers from stores near the customer. Through the Starbucks app, customers can order and pay for their products in advance to reduce wait time at the location, or receive special offers and rewards based on their purchase history and preferences.
Digital-first orientation
The growth in the share of online shopping has been exponential in recent years, accelerated by the COVID-19 pandemic. Consumers increasingly prefer the convenience of shopping through e-commerce or m-commerce (mobile commerce), which means retailers need to prioritize their presence in the digital environment, ensuring that it is not just functional, but reflects the identity, promise and values of the brand.
Companies like Glossier and Warby Parker have developed innovative digital business models that resonate with modern consumers. Beauty brand Glossier engages its customer community in the development of new products through interactions and feedback sessions conducted on social media. The Warby Parker brand revolutionized the eyewear category with its Home Try-On program, allowing customers to try five pairs of glasses at home for free. This strategy removes friction from online shopping and enhances the customer experience by providing convenience and confidence in the choices made.
3. Building a strong brand identity
Consistent brand manifestation
From products, employee behavior and the physical store environment, to communication messages and visual identity, everything must coherently reflect what makes the retail brand unique and relevant to its audience, in order to build a clear positioning and a strong image in the market.
Patagonia is perhaps the best example here, with its commitment to environmental sustainability being central to all brand manifestations, starting with the company's mission statement (“We're in business to save our home planet.”) to how it directs the process of new product development and everyday communication.
Storytelling
A well-articulated, authentic brand narrative clearly and convincingly communicates why the brand exists and how it brings value to the lives of those around it, being the source of inspiration for its own actions and those of the community formed around it.
Continuing the example above, Patagonia often highlights in communication environmental activism and the importance of conservation. The brand produces documentaries and communication content that addresses urgent environmental issues, engaging its audience in initiatives designed to support the mission and common values they share. On Black Friday in 2011, Patagonia ran a one-page ad in the New York Times with the message “Don't Buy This Jacket,” with the text mentioning the environmental and social costs associated with one of the company's best-selling products accompanied by the exhortation: “Don't buy what you don't need. Think twice before buying anything.”
Conclusion
The long-term success of a retail brand depends on how it manages to connect and adapt permanently to trends in buying and consumer behavior, leveraging technology to be closer to customers through relevant experiences while remaining true to its promise of value to them and its mission.