Material World is exactly the kind of brand that’s shaping the future of retail. As millennials move towards acquiring more pre-owned, high quality goods and away from Fast Fashion, smart resellers and digital-first marketplaces are snapping up market share. This shifting landscape was a big topic at our Future of Retail Summit, but we got to continue the conversation with one of our panelists—Material World’s co-founder Rie Yano—on Randi Zuckerberg’s Dot Complicated radio show on Sirius XM’s Wharton Business channel.
Randi opened the conversation with some stats, “Despite the press on store closings, data shows a net increase in store openings of over 4,000 in 2017 and sales have increased more than 3% per year since 2008. More and more hyper-customized concierge and on-demand services like ultra-fast delivery, digital dressing rooms, and robot customer service are becoming part of the CRM norm.”
There’s no doubt that customer behavior is driving the future of retail and relationships. Rie and Alon discussed the implications of these big picture changes. Find some of the highlights from Alon and Rie’s conversation with Randi below.
The Future of Brick and Mortar
While there’s so much focus on etail, traditional store-centric retail still has a huge place in the market. However, brick and mortar is changing, and needs to account for the digital experience. To make sure that the buyer journey continues and that the experience is relevant and consistent, you need the total customer view:
The Future of Subscriptions
Subscription business models are supplementing or even replacing both brick and mortar and etail channels. Customers love the convenience, and it’s a unique way for retailers to build loyalty. Material World has recently started offering a Material Box: the service delivers a pre-owned outfit styled by a designer straight to your doorstep, which you can also use to donate items of your own when you send it back. Subscription is proving to be both a great way to provide an easier shopping experience to your customers, and to learn more about them and build a deeper relationship.
The Future of Bots
Automation is a useful way to cut down on the number of basic inquiries coming through to your customer service representatives, giving customers the fast responses they expect. However, the experience can only be taken so far. Instead, bots have to amplify your agents’ abilities, not replace them.
We can’t be sure of what the future holds, but from our conversation with Rie and Randi, we’re pretty sure it’s going to include way better experiences for customers—whether they’re in-store, online, or somewhere in between. That, and dancing. Lots of dancing.