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Intro: The new retail trajectory

Retailers are standing on the cusp of another revolution. E-commerce’s once-unstoppable momentum appears to be flagging as more consumers flock back to malls, yet there's a strong appetite to connect with brands in innovative and exciting ways. Meanwhile the return of inflation is fueling a focus on cost and value among even the . Winning market share in the emerging retail order will require adept management of multiple touchpoints throughout an increasingly non-linear customer journey, fusing each into an experience that’s seamless. The future of commerce is not just connected, but convergent.��

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Online retail losing allure (% of US consumers expressing enjoyment of each retail category)

Source: Morning Consult Research Intelligence

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i. Breaking down convergent commerce and its implications��

With channels like social media, live streaming and voice becoming part of the shopping process, consumers are able to embark on, and end, the buying journey anywhere, supported by a constant stream of real-time information. This has reduced tolerance for friction and also complicates customer loyalty, which can only be won by blending channels and building experiences to cater to the desire for differentiation.

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Consumers dive into a host of shopping options

Source: Ipsos

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ii. Future commerce requires a data-driven foundation��

The pressure to support, and seamlessly blend, a multitude of customer touchpoints means many retailers will have no choice but to reassess their technology architecture, to make sure it equips the enterprise with the necessary flexibility and resilience. By pursuing both systems and organizational integration, and increasing access to and the ability to act on data, businesses can create the foundation of information and insights needed to deliver on customer demands – and to change direction where necessary. Careful change management and forging the right partnerships will minimize any growing pains associated with this process.

iii. Choosing channels and priorities

Data shows a significant number of consumers ‘channel hopping’ as they shop. But the resources required to set up and maintain channels like AR or VR mean very few retailers will be able to support them all. Rather than racing to adopt every technology embraced by competitors, ������ experts recommend a more tactical approach, where investments in new touchpoints and experiences are tailored to the organization’s customer base and aligned with its overall strategy.��

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Emerging channels driving purchasing decisions

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Proportion of consumers using VR retail channels who:

Source: PwC

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iv. Positive, not intrusive, customer experience��

Convergent commerce presents a dilemma for retailers in that it makes customer data more valuable than ever, but gathering or applying that data in the wrong way can shatter the experience organizations need it to create. Missteps can be avoided through transparency and ensuring customers are conscious of a connection between the data they provide and the value they receive in return. Rather than seeing data security and privacy as risks, retailers should view these as opportunities to build the kind of trust with customers that contributes to retention and repeat business.

v. Looking into the convergent commerce crystal ball������

Through 2023 and very likely beyond, uncertainty will continue to surround consumer sentiment, the development of customer touchpoints, and what habits, and expectations shoppers might pick up next. Nonetheless, retailers can bet on some broad trends gaining prominence, including connected devices playing a larger role in the retail ecosystem, renewed appreciation for the importance of retail retaining a human touch, and above all, the capacity for change being a major driver of organizational success.