JUNE 2021retailtechinsights.com8In my opInIonTo look to the future of retail and the role of technology, it is important to understand who holds the power in consumer decision-making and how we got to where we are today. In the mid-1900s, consumers had limited choice, and a brand's route to market was restricted. Department stores were king. In the second half of the last century, the focus for brands was to grow and expand distribution while relying heavily on advertising, to create demand and desire. Branded manufacturers, and later, branded retailers, held the power. Starting in the 2000s and especially in recent years, the rise of eCommerce and marketplace retailers--from Amazon and eBay to off-price superstores--has shifted power to the consumer. We, as consumers, now live in a world of virtually endless choice and almost perfect price transparency. In today's noisy and time-stressed world, consumers are looking more than ever to brands to give them a point of view, tell them what's cool, and help them take decisions. But consumers also face almost endless barrage of marketing messages, and time is now the ultimate luxury item. So, how will branded retailers get them to give us their time? Anyone reading this knows that retail is an industry going through a transcendent period of disruption, an environment which is pushing many traditional retailers down two possible paths. Path A involves embracing risk-taking, experimentation and transformational, consumer-centric thinking--basically a start-up mindset. Path B involves cutting costs, unfortunately often in those areas like staffing, store design, and experiences that matter most to customers, and doubling down on comfort zones. I don't have to tell you which approach is winning. With most retail sales still occurring in physical stores, upstart and digitally-BRANDED RETAIL: LIVING AT THE INTERSECTION OF TECHNOLOGY AND CULTUREBy Greg Klingaman, Global Head of Retail & Strategic Partnerships, Diageo [LON: DGE]
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