VML Reveals The Top Trends Shaping Retail Beyond 2024
Experts from VML weigh in on the future of retail and how consumers buy and transact with the rise of social commerce, the influence of AI, and the proliferation of media channels.
In a challenging economy, with mass high-street closures and the rising influence of AI, brands and retailers face unique challenges and opportunities in 2024 and beyond as they look for ways to keep pace with changing consumer habits.
With the launch of VML’s ‘Tomorrow’s Commerce report’, experts have examined their crystal ball to see how the changes of the past year will shape commerce in the coming decade.
Commenting on the report’s launch, Erin Hunter, managing partner of VML Commerce AUNZ said “The Tomorrow’s Commerce report provides a comprehensive analysis of the evolving Commerce landscape globally and in Australia and New Zealand. It equips our local team and client partners to make impactful decisions for the present while planning for a future-proof tomorrow. The 20 trends highlighted in the report will continue to shape our perspective on Commerce in the AUNZ market, as retailers and brands continually adapt their priorities and capabilities to meet customer demands.”
Whether it’s the maturing of the metaverse, luxury brands’ foray into digital worlds, or the rise of retail media as marketplaces navigate the deprecation of third-party cookies, the commerce landscape is set to completely
revolutionise over the next ten years. Here are 5 of the 20 trends highlighted in the report:
1. The rise of retail media and creative commerce
“Retail media spending globally is expected to reach $128 billion in 2023, and it is poised to overtake linear TV as the third biggest channel by spend.
So not only is it ushering in the next era of commerce, but today’s technology-driven age means that the time-honoured traditions of shopper marketing for retailers and brands are being upended,” according to Beth
Ann Kaminkow, global chief commerce officer at VML.
“The future will no longer be about retail media as a vehicle, but how it is used to engage shoppers. This is where ‘creative commerce’ comes in: ideas that inspire conversion regardless of the channel. Retail media is powerful because it gets brands closer to the point of purchase and is far more targeted. But to cut through and convert, a creative approach will be imperative.”
2. The age of experimentation and search
Michelle Baumann, chief strategy officer, commerce at VML US believes that “shopping channels are proliferating online and consumers are starting to seek out novelty in their shopping journeys as they hop from
channel to channel. They will dabble here and there to test the waters, and serendipity will become a more sought-after part of the shopping experience.
“This age of experimentation poses a challenge to retailers and brands, however. Why? Because digital shopping involves navigating a web of connections that throw up new ideas, suggestions, and recommendations.
These kinds of non-linear, non-repeating shopping journeys are hard to predict and often take the consumer in a completely new direction. Brands and retailers need to ensure that experimentation in the customer journey doesn’t lead to shoppers clicking off a retailers’ site and onto a competitor.”
3. The power of ‘Social Conversion’ in the east
“The future, when it comes to social commerce, is here… in China. Social media drives commerce in China, with 90 per cent of Chinese consumers having shopped via social media. So, what can the West learn about this future?
“In China, it’s all about both content and conversion. Mega-powerful influencers livestream highly entertaining sales pitches and invite immediate purchase. The shopping experience is simple, seamless and, perhaps most importantly, contained within the Alibaba ecosystem.
“On the other hand, social commerce in Western countries is tiny. It’s changing slowly of course – Amazon Live and the imminent launch of Walmart Creator are just two recent examples. And the marketplace or retailer outside of China that can capitalise on this will be set to reap the long-term benefits,” says Debbie Ellison, chief commerce officer, at VML UK Group.
4. Content supply chains of the future counting on the cure of AI
“For modern digital businesses, your brand is your content. With 60 per cent of digital consumers seeking to be entertained by the shopping experience, the quality of content is a key differentiator that drives purchasing
decisions. But supporting this appetite for content puts a massive strain on content supply chains. Every website, every app, every marketplace listing, every social media account needs their content fix too.
“This is where generative AI can make a difference – it is quickly becoming a go-to tool for brands looking to slash production times for differentiated content across channels. For instance, our Brand Guardian solution uses NLP and computer vision AI to monitor large-scale content output according to predefined flexible ‘rules’ that reflect a unique brand identity; it proposes fixes to content errors too. We call it a ‘curative AI’ approach –
‘curing’ anomalies within the context of high-scale digital content creation. And together with generative AI, it could help foster the content supply chain of the future,” according to Gemma Spence, chief digital commerce officer at VML EMEA.
5. The maturing of the metaverse
Naji El-Arifi, head of innovation, commerce at VML said, “It’s fair to say that the metaverse – the technological hot take of 2022 – hasn’t yet lived up to the hype. Where are the immersive 3D hangout spaces we were promised to free us from the confines of screen-based social media? Why can we not yet send our digital avatars to do our shopping in giant virtual superstores?
“But from cloud computing to AI, groundbreaking technologies often take time to reach their potential, with a few bumps along the way. All the early buzz around the metaverse focused on how it would revolutionise the
consumer experience of technology, creating a VR internet that would allow us to (digitally) go where we want, do what we want, be who we want. That may still come to pass, but some of the most interesting developments are happening not in the consumer sphere, but in business.
“Whether it’s the use of digitally augmented training methods to boost skills and talent retention, or ‘digital twin’ simulations in product development and process design, we’re seeing more of a ‘big picture’ definition of the metaverse emerging in B2B applications, with AR, XR and mixed reality technologies sitting alongside VR.”
Latest News
Cannes In Cairns MC Keeva Stratton Shares Her Top Session Picks
Self-professed nerd and one of four top Cannes in Cairns, presented by Pinterest MCs, Keeva Stratton has a front-row seat to some fascinating minds and fierce debates. But who should you put on your must-see, must-hear list? Here, B&T grabs five with the Quip agency founder, who will be helming the lecture in the Rainforest […]
Here Are The Agencies That Made AFR’s Best Places To Work List And What The Industry Can Learn From Them
Did your office not make the list? Make sure your boss shouts at least two schooners at office drinks come Friday.
Get Ready, B&T’s Best Of The Best Is Back With The Top Holding Company Executive Leaders – Creative!
Want to know who the Grandest of the Grand Poobahs in the industry are? Look no further than this exhaustive list.
How A Glittering Campaign Helped The Australian Museum Sell 400,000 Tickets
B&T thoroughly enjoyed the Ramses exhibition at The Australian Museum, despite thinking we were going to the Archibald.
TV Ratings (30/04/2024): A “Shoey” Straight From A Fish’s Mouth Launches The Cheap Seats Into 2024
Last night's TV saw horny farmers beat Lego nerds, who beat fame-obsessed home cooks, who beat a chap with a large fish.
Spotlight Extends Partnership With Starlight Children’s Foundation
B&T always happy to promote the excellent work of the Starlight Foundation. Less so the Starfish Fanciers Foundation.
Amazon’s Advertising Quarterly Revenue Soars To $11.8bn
There are so many Amazon couriers visiting B&T headquarters at the moment our office dog doesn't know who to maul first.
VML Wellington Welcomes Jacob McGregor As Pou Ārahi Māori
McGregor set to lead cultural competency and safety at VML Wellington in important new gig.
“They Grow Up So Fast”: Simon Fowler On Five Years Of ABEL
Abel's CEO talks lessons learned from the agency's first five years. Including staff nicking all the Nespresso capsules.
Kyle & Jackie O Urge Melbourne To Pick A Side
Who can stop Kyle & Jackie O's indelible march into Melbourne radio? Is Peter 'Moony' Moon waiting by the phone?
Future & Taika Waititi Feature In Striking New Global Belvedere Campaign
Not only does drinking vodka make you cool like these dudes, it also has great weight loss properties for the bone idle.
The Fall Of Bonza: A Case Study In How To, And Not To, React In A Crisis
Does the collapse of yet another budget airline hark back to a gentler time of 17 hours spent on a Greyhound bus?
Opinion: Agencies, Be Unique – Stop Using The Word “Unique!”
Trinity P3's Ellie Angell says agencies are overusing the word unique. You could add omnichannel & holisitic to that.
Ex Marketing & Advertising Exec Releases Melanoma Memoir
Ex-adlander Anne Gately has penned a tome to skin cancer. Which is a handy reminder to check your moles, people.
Mamamia Appoint Danni Wright As New Head Of Strategy
Danni Wright takes up Mamamia's strategy reins with a feng shui expert called over positioning of office chaise lounge.
From The Bureau: Championing Competency & Cross-Industry Collaboration
The IAB's Jonas Jaanimagi calls for more specialisation in adtech. Meaning you'll understand it less than you already do.
Rumble Nabs Renee Park From Cutting Edge
Rumble has recruited Renee Park as one of its new sound designers. And it's only right to make some noise about it.
iD Collective Teams Up With City Of Parramatta To Amp Up NRL Fan Experience
Adland's often lampooned for never going further west than Surry Hills. So this Parramatta news is welcome indeed.
Slew Of New Hires At The Company We Keep
The Company We Keep announces new hires. Here's hoping it doesn't impact the RBA's interest rate decision.
UnDigital Announces Brand Refresh Helping Clients Achieve More Than 600% Sales Increase
Warning - this headline comes with some obscene bragging. Much like the B&T editor's 5/8 in the weekend footy tipping.
Microsoft Advertising: “We Make The Complicated Simple”
Microsoft ads wants to make the complicated simple. The total opposite to Korean restaurant menus & the recent Yes vote.
TV Ratings 29/4/24: Farmer Wants A Wife And Lego Masters Lock Horns In Overnight’s Battle
Who won the battle of the big guns - Lego or Farmer Wants A Wife? One thing's for sure, it wasn't Great Train Journeys.
Nielsen Data Reveals Brands Spending Big To Attract Aussie Tourists
Nielsen Ad Intel data has revealed that the travel and tourism industry spent more than $153 million on advertising in Australia in Q1, 2024 – an increase of 8 per cent from the previous quarter, with TripADeal the biggest spender, followed by Virgin Australia, then the Flight Centre-owned Ignite Travel. As many Australians return from […]
IAS Awarded New Responsible AI Certification From Trustarc
Integral Ad Science tossing up over the mahogany or teak frame after being awarded TRUSTe Responsible AI Certification.
AWARD Calls For Hall Of Fame Nominations
B&T's noms for AWARD Hall of Famer includes Louis The Fly, Chums' talking Scottie dog & Mumbrella's coke dealer.
Havas Red Wins PagerDuty PR Account
Havas Red wins PagerDuty's PR. And judging by B&T having to Google PagerDuty, it could probably do with some help.
ACA Poised To Release Results Of 2023 Create Space Census
The Advertising Council unveils date for its census results. Hey, why not coincide it with an office lamington drive?
Why Fear Is Essential To Fernando Machado’s Creativity
If there's anyone B&T loves to chat to, it's fabled marketer Fernando Machado. Although the 5am time difference sucks.
Superdry Drafts AFL’s Patrick Lipinski For New Campaign
B&T fast regretting that poncho we just bought, as it appears the puffer jacket returns as winter's hottest trend.
Elon Musk vs eSafety: Legal Experts Warn That ‘Rogue Operators’ Like X Are Unlikely To Win Federal Court Battle
If this legal stoush boils down to who can afford the better lawyers, B&T's backing Mr Musk every single time.
Amy Poehler Presents First Look At Inside Out 2 At Vivid Sydney 2024
Vivid isn't about freezing your arse off while looking at lights on a wall, as you'll learn with this Amy Poehler news.
Mutinex Launches DataOS Improving Data Warehousing & Quality For MMM Marketers
Work in marketing? Does your data warehousing resemble a teenager's bedroom? Here's a Marie Kondo-approved read.
IMAA Celebrates Three Years Of Group Trade Credit Insurance Deal
Are you a struggling indie? Thinking of firebombing the building for the insurance money? IMAA has you covered here.
Adam Sandler Seemingly ‘Slams’ Ukraine In Pro-Kremlin Campaign
Host of A-list celebs caught slamming Ukraine's president. Thankfully it does have the Milli Vanillis about it.
New Marketing & Comms Agency For Defence & Aerospace Industry Takes Flight
As painful as this is to say, judging by current world events, the bomb & tank industries must be in rude health.
Opinion: Do Punters Want To Wear Your Brand?
This columnist asks do punters want to wear your brand? B&T'd say yes if you were Nike, no if you were Anusol.