Page 10 - Designing Ways 281

TRADE WINDS

Renowned forecaster Dion Chang outlines

major shifts and trends affecting retailers

id you know retail sales are Renowned local destination, the
estimated to represent close V&A Waterfront has noticed a slight
Dto 20% of South Africa’s GDP? drop in frequency of shopping visitors,
Facing a barrage of ever-changing micro which is likely due to these general
and megatrends, it remains crucial that shifts in shopping habits, and increased
our local retail industry moves with uptake on online grocery sales which
shifting shopping patterns. has reduced the daily or weekly shop
Dion Chang of Flux Trends, a local in favour of monthly shopping visits.
trends analysis company that distils, ‘However, when shoppers do visit,’ says
translates and packages trend insights into Alex Kabalin, V&A Waterfront Retail
business strategy, is a veritable doyen of Executive, ‘their spend per head has
culture and trends. Offering some valuable increased materially which more than Dion Chang
insights into the latest movements, offsets the drop in frequency.’
Chang breaks down the trends currently Elevating the everyday can keep
impacting the retail industry. consumers coming back in person. Service Generational shifts are showing up
He believes ‘seamless service and user excellence, while a perennial concern for heavily in the retail sphere, according
experiences, considered design and a business owners, is necessary for drawing to Chang. ‘Tech savvy shoppers are
high value shopping experience can draw out hermit consumers. Brand loyalty becoming centre stage, and demand is
customers from their hermit states’. With is earned through exceptional service high for retail that seamlessly straddles
the age of the ‘hermit consumer’ heralded that raises the consumer experience, online and offline spaces. This form of
by publications such as The Economist, personalised rewards incentives, and phygital integration sees the physical
consumers continue to turn inwards post- classic convenience. store meet the online in a way that caters
Covid, spending more time at home and Considering recent visitor statistics, to the unique needs and expectations of
acting accordingly - shopping online, the V&A Waterfront still records a different generations,’ he says.
ordering groceries for delivery and long visitor duration or ‘dwell time’ in In 2024, successful retailers are those
turning to social media for inspiration. the precinct – which Kabalin credits to that provide integrated experiences,
‘What they are shopping for is also the holistic nature of the space: ‘This is such as buy-online-pickup-in-store and
affected by the hermit behaviour - it's not testament to the qualitative aspect of the real-time inventory visibility across
just how they shop but also what they neighbourhood as a pleasant, safe and channels. Enhanced loyalty programmes
are now buying, such as products geared enjoyable place beyond shopping, as and personalised marketing across these
towards making the home environment well as the significant amount of leisure platforms further strengthen customer
more of a cocoon,’ Chang explains. attractions and activities on offer.’ engagement.
‘Livestreaming e-commerce is gaining
traction in the retail landscape, merging
entertainment with shopping in a dynamic,
interactive format on social media
platforms like TikTok,’ says Chang. This
trend, popularised in markets like China,
is now gaining traction globally, allowing
brands to showcase products in real-time
while engaging directly with users.
Brands are also moving more into the
resale and rental space in what is being
called the ‘recommerce boom’. While
recommerce is not a new trend as such,
Chang and other trend forecasters are
seeing an accelerated industry-wide shift
to second marketplaces and luxury goods
rentals. Major brands are implementing
their own B2C recommerce initiatives,
and third-party C2C marketplaces like
Facebook Marketplace, Yaga and Depop
continue to draw users.

10 Issue 281 • dw