News 28.12.2020

Looking Back in 2020: Retail

Retail brands were this year forced to explore new phygital channels for commerce and communication, writes our retail sector lead Alex Hawkins.

The Trend: Feedback Frontiers

Character Illustration IV by OmarAqil
Character Illustration IV by OmarAqil
Character Illustration IV by OmarAqil

The role of customer service is being reframed. As the number of communication channels has grown, the relationship between brands and consumers has become more complex. Our 2020 macrotrend Feedback Frontiers explores how businesses must reconsider how they connect with their customers, and fundamentally alter their perception of them.

With the understanding that every piece of information can provide insights to improve their business, brands are taking a less extroverted approach. Some are rethinking the structure of their internal teams, while others are creating new business models.

‘Our approach is part of a new era of direct-to-consumer businesses – one we’re calling ‘direct-with-consumer’ or DWC,’ says Nick Ling, CEO of Pattern Brands. ‘At its core, we see DWC as a model intrinsically designed to build intimacy at scale through much deeper, more personal consumer relationships.’

As customer service evolves from a cost centre to a driver of profit, these brands will no longer try to limit interactions with customers as in the past. Instead, they will strive to create conversations, forging ahead across the multiple interactions and touchpoints that are emerging as the next frontiers for brands.

The Big Idea: How retail is becoming a phygital playground

The Last Statement T-shirt by Carlings and Virtue The Last Statement T-shirt by Carlings and Virtue

With bricks-and-mortar retail facing new challenges amid Covid-19, retailers looked to innovate with new experiences that invite shoppers to interact with products and spaces both physically and digitally. From visual merchandising to product design, innovators created interactive mobile experiences that extend across both online and in-store channels.

Scandinavian fashion retailer Carlings, for example, worked with creative agency Virtue to introduce the world’s first augmented reality t-shirt. According to Roy Mikalsen, CEO of Carlings, the aim was to ‘extend the digital impact of a single t-shirt. Meanwhile, colour cosmetics brand Lime Crime has launched an augmented reality app, highlighting how technology can activate traditional packaging and take consumers on a ‘virtual journey’.

Elsewhere, Ikea innovated with a phygital window display featuring a virtual influencer as part of its Happiness at Homecampaign in Japan. Imagining a future of touch-free retail experiences, StudioXAG’s conceptual project Feel Touch used customer data and augmented reality (AR) to show product offerings through individual smartphones.

The Campaign: Project Earth by Selfridges

Project Earth by Selfridges, London
Project Earth by Selfridges, London
Project Earth by Selfridges, London

While sustainability took the back seat for many retailers amid the Covid-19 crisis, British department store Selfridges continued to push the issue with an ambitious new sustainability initiative that aims to transform the state of retail by 2025.

Building on Selfridges' sustainability initiatives from the past 10 years, Project Earth addresses everything from the materials used in products to repair and resell models. ‘Project Earth is not only our bold, new commitment to stretching environmental targets, it is about imagining new ways to do business, within the next five years,' says Alannah Weston, group chairman at Selfridges.

Aiming to inspire mindset shifts among consumers and employees, its August launch was also be supported by talks, takeovers and screenings that tacked topics such as ethical consumerism and sustainable beauty. As part of this series, The Future Laboratory also hosted an Instagram takeover in October, discussing the future potential of Immaterial Fashion and the end of product ownership.

The Interview: MetaFactory on community-owned brands

MetaFactory, Canada MetaFactory, Canada

We profiled new retail platform MetaFactory in November, and co-founders Drew Harding and Hammad Jutt discussed how cryptoculture is inspiring new decentralised brand economies.

MetaFactory builds new community-owned brands where creators and consumers both share incentives and collective brand management. The platform adapts the existing concept of a decentralised autonomous organisation (DAO) and applies it to the retail category.

‘We're approaching fashion from a completely different mindset,’ says Harding. ‘Beyond just the passive buyer or the active designer, which are two very distinct user types, there's a community of people who are deciding what products make it to the marketplace.’

Speaking of why this open-source model appeals to consumers today, Jutt adds: ‘Internet subcultures have existed for a long time, but this starts to turn a hobby into an economic force. And instead of just using the internet to share information, we can now use the internet to share and coordinate value.’

The Space: Off-White’s Miami flagship

Off-White’s flagship store is a fulfilment centre and a multipurpose events space designed by Virgil Abloh and AMO Design, Miami Off-White’s flagship store is a fulfilment centre and a multipurpose events space designed by Virgil Abloh and AMO Design, Miami

Reconceiving the store as a reactive retail space, Virgil Abloh and architects AMO designed the Off-White flagship in Miami Design District to serve seamlessly as a fulfilment centre and multipurpose events space. The idea, according to Samir Bantal, director of AMO, was to create a ‘space that is adjustable and transformable over time.’

The two-storey store is fronted with a moveable wall on the ground floor, which can be pushed back, while all the furniture is placed on wheels or is collapsible. These changeable design elements mean that both the shop floor and storage spaces can be compressed or expanded to accommodate a variety of activities or events.

As such, the store’s physical layout can react and respond to the immediate needs of the Off-White brand, rather than betting on square footage that needs to be used for retail exclusively. Moving away from the strict measure of sales per square foot, the store can leverage its adaptive design to host runway shows and live events or focus on fulfilment.

Download the Future Forecast 2021 report

Now that you know what shaped 2020, discover what’s on the horizon. Download our Future Forecast 2021 report comprising 50 new behavioural patterns across 10 key consumer sectors, expert opinion pieces and interviews with global innovators.

Previous News Articles
LS:N Global Just Got Smarter

News

LS:N Global Just Got Smarter

Meet our new AI tool, Ember.
The Future Laboratory
Mami Wata makes sun protection accessible with a touch of humour

News

Mami Wata makes sun protection accessible with a touch of humour

Suncare brand Mami Wata is using humour and nostalgia to highlight the often-overlooked importance of scalp protection.
Beauty : Advertising : Health
The Wizard of Oz at The Sphere uses generative AI to re-imagine a classic

News

The Wizard of Oz at The Sphere uses generative AI to re-imagine a classic

Launching in August 2025, The Wizard of Oz at the Sphere will transform the 1939 classic into an immersive spectacle using cutting-edge generative AI.
Technology : Architecture : Pop Culture
Stat: US teen beauty spending soars as Gen Z embrace fragrances and skincare

News

Stat: US teen beauty spending soars as Gen Z embrace fragrances and skincare

Teen beauty spending is on the rise, with Piper Sandler’s Taking Stock With Teens 2025 report revealing double-digit year-on-year growth, particula...
Beauty : Retail : Youth
Pepsi uses AI to let diners customise dishes in São Paulo

News

Pepsi uses AI to let diners customise dishes in São Paulo

Pepsi is inviting diners to co-create bold new dishes with its AI-powered campaign Your Bites, Your Rights.
Drink : Food : Technology
Birth of womb transplant baby marks a milestone in fertility innovation

News

Birth of womb transplant baby marks a milestone in fertility innovation

The first British baby born to a mother with a transplanted womb has been safely delivered.
Technology : Health : Society
Stat: AI boom set to double data centre energy use by 2030

News

Stat: AI boom set to double data centre energy use by 2030

Data centres are on track to consume 945 terawatt-hours of electricity by 2030, more than double their 2024 usage and equivalent to Japan’s current...
Technology : Sustainability : AI
Cécred champions hair as a cultural memory in first campaign

News

Cécred champions hair as a cultural memory in first campaign

Beyoncé’s haircare brand Cécred has launched its debut campaign, A Deeper Understanding of Hair, created in partnership with Wieden+Kennedy.
Beauty : Advertising : Pop Culture & Media
YouTube introduces Watch With feature at Coachella 2025

News

YouTube introduces Watch With feature at Coachella 2025

YouTube is re-imagining its Coachella 2025 festival live-stream with a new Watch With feature.
Technology : Media : Pop Culture
Stat: Curation and vintage resale influence audiences to shop circular fashion

News

Stat: Curation and vintage resale influence audiences to shop circular fashion

New data from luxury resale platform The RealReal reveals a growing appetite for second-hand fashion that blends environmental intent with elevated...
Fashion : Sustainability : Retail
You have 2 free News articles remaining. Sign up to LS:N Global to get unlimited access to all articles.
BECOME A MEMBER
SIGN IN