3 Types of Consumers that Drive Retail Today

It seems everyday a new article highlighting a failed retailer or brick and mortar closures hits the headlines, spreading a dooms day effect of retail being 'dead.' While brands and stores are inevitably closing, we need to pay attention to what is closing and WHY these retailers aren't hitting the mark. Because, in fact, over 3,800 more stores are opening that closing in 2018 among big chains— and through the first seven months of the year, retail sales are up $190 billion according to IHL’s Retail’s Radical Transformation/Real Opportunities.

I'd argue retail isn't dead, but the consumer has just changed, taking some players who have not adapted out of the game. Let’s dive into today’s modern consumer and what it takes to be a real winner in today's retail landscape:

THE IMPATIENT CONSUMER: BUSIER THAN EVER

Let’s face it, today’s consumers lives are busier than ever between the demands of dual working parents, children in a myriad of activities and the constant demands filling calendars and time. Because of this, ‘consuming’ retail has become another task, and these consumers value their time more than ever. Consumers are demanding an easier way to get the products they need without it being a huge disruption to their lives.

There is no wonder why the department store is struggling the most with capturing this type of consumer, as strolling through a department store to find the perfect dress or pair of shoes is a thing of the past and consumers value their time more than ever. People are doing their shopping at work, in bed, in the car, and generally on-the-go to fit it into their busy lives. On top of this, Millenials and Gen Z consumers grew up online, and are more comfortable than ever with skipping the ability to touch, feel and even try on their products in a quest to save time and convenience.

THE INFORMED CONSUMER: TECH SAVVY

These same consumers are more informed than any generation that has become before. Retailers use to be the place for consumers to find inspiration and discover new products in a new & exciting way. Today, consumers primarily discover their products online and are exposed to around 4,000 to 10,000 ads each day. Because of this, many consumers begin to prioritize value and will shop around online to find a good deal on a product they want.

Because of a consumers ability to quickly get online and see if consumers before them have loved or hated the product, retailers are faced with an extremely informed consumer. Consumers have the ability to be interconnected and share opinions and thoughts on products to a platform of people like never before. The consumers are trailblazing what they want, and brands need to stay in pace and understand the consumers needs & wants or get out of the way for the brands that do.

THE INVOLVED CONSUMER: VALUE EXPERIENCE

Finally, today's modern consumer values an experience over a product more than ever. Millennials and Gen Z consumers are not afraid to voice opinions, welcome change and care more than ever about the quality of their life. The 'American Dream' has greatly shifted and retailers are needing to respond as a result. Retailers cannot rely on the amount of products stocked on their shelves or simply their history to earn consumer's loyalty.

Consumers want brands and retailers who stand for more than delivering products and services, they want a brand who stands behind things they care about. In addition, they want a brand that cares about their customer experience, who responds promptly and positively to how they feel. They want a brand they can interact with and feel connected to-- via online platforms such as Twitter, Facebook, and Instagram. A retailer's brand is more important than ever in this highly experience driven world and they need to be consistent in delivering consumers the experience they want and expect.

THE REAL WINNERS

While today's consumers are demanding on all fronts, retailers who successfully capture all three of these consumers are few & far between. Instead, retailers need to FOCUS on the type of consumer they want to capture and focus efforts there instead of constantly trying to keep up with the competition on platforms in which they simply cannot compete. In the same sense, retailers shouldn't be afraid to pivot their direction based off their consumers needs, and continually re-look at the value they are adding to the lives of those consuming. Retailers need to be focus on connecting with their consumer outside of their brick & mortar locations, which will drive more consumers to go and experience what they have to offer.

Inevitably, retailers will 'die' and new retailers will emerge in this ever changing retail landscape. But is retail 'dead'? No, retail still and will continue to serve an important purpose in today's society. People enjoy socializing at a coffee shop, the camaraderie of a workout class, and the ability to shop for clothing in person. While retailers face the most competition and demanding consumers ever, the real winners will be the retailers who capture today's consumers needs best and most effectively-- focusing on their core competencies and staying in their lane amongst ever growing competition.