Era of Retail 3.0: New retail marketing era combining data and experience

October 23, 2019

The so-called Retail 3.0 Era, that is, the era in which consumers dominate. Throughout the entire process of economic market development, consumers are undoubtedly on the highest position of the market chain. Manufacturers, distributors, and service providers all exist to satisfy the consumers. It is a consumer-led era.

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What is the New Retail Era? How is it Developed?

In the United States, with the development of TV media, manufacturers are like a flood of floodgates, presenting goods in front of consumers through various methods, and having more funds to explore other sales methods. The stores have become the most direct and fast sales channel for manufacturers as they can directly communicate with consumers face to face and receive comments from consumers. It opens the era of Retail 1.0: The Era Dominated by Manufacturers.

In the mid-1990s, the merger of some FMCG retailers, such as Wal-Mart, they can compete with manufacturers as they have vast data accumulation and clients' information. That is the secret ingredient of these FMCG retailers. It is the era of Retail 2.0: The Channel-Led Era.

With the development of the economy, consumers have begun to have their ideas. It is not a shopping attitude that has never been rejected in the past. Ordinary retail methods can no longer satisfy consumers' preferences. It has ushered in a new era of Retail 3.0: The Consumer-Led Era.

Today, the advent of the era of big data, the diversification of information media has opened the door for personalized customization in the retail market, and data marketing has become the first weapon in the Retail 3.0 Era. 

"New Retail," firstly proposed by Jack Ma’s [1][2], that is, experiential marketing. It mainly through the offline experience platform such as brand flash shop and experience hall, to present the retail display to provide consumers with the stimulation of color, scent and touch, so that they can obtain physiological sensory massage and emotional comfort so that they willingly promote the store. From Coca-Cola Happy Vending Machines, Adidas Flash Shops, to New York Fashion Week 29 Rooms, to Taobao Creation Festival, touchable offline experiences, and "irrational" emotional interactions are becoming popular.

What do consumers want?

In the era of Retail 3.0, what retailers can offer to the consumer is ahead of what consumers want. More and more research show that consumers are pursuing a personalized customization requirement. Current consumers most likely recognize only the "exclusive" products provided for individual styles. The mass production single copy product mode is no longer available. Retailers should provide a stable and operable large-scale personalized customization service to meet consumers' needs. With the coming of big data, along with diverse media, make the personalized retail market possible. Data marketing has become the first weapon in the era of Retail 3.0.

Inevitable Trend of the Development of New Retail

1. Digitization: By digitizing the supply chain, companies will effectively reduce the level of suppliers and improve overall efficiency.
2. Multi-channelization: Making full use of big data and multi-channel personalized communication will effectively stimulate consumer demand.
3. Platformization: Allows access to the brand offline inventory database via an online platform, which will provide a broader range of product choices and drive online order growth in physical stores.
4. Entertainment:  The point is that the Store displays a comfortable and pleasant, lively, and engaging retail fixtures to build a new offline shopping environment which makes the consumers highly-involved in this store, so it will effectively enhance consumer interaction and brand awareness.
New retail is the trend of the times. As Jack Ma's foresight, online can't replace offline, the shift in consumption habits is redefining the market. HK One Plus Display Products is a service provider that provides retail decoration design for retailers, with 5 years of digital display design and manufacturing experience, we are capable of providing service to help our clients to grasp the opportunity of new retail. The consumption scene in the new retail era must be user-centered, and it is the kingly way to enjoy shopping, save time, and spend the cost.
1.Jack Ma, co-founder and former executive chairman of Alibaba Group.
2. Alibaba Group, the world’s largest retailer and e-commerce company, provides the world's largest online B2B trading platform for buyers and sellers.