{"id":36783,"date":"2024-07-18T15:33:03","date_gmt":"2024-07-18T14:33:03","guid":{"rendered":"https:\/\/www.hult.edu\/blog\/?p=36783"},"modified":"2024-07-18T15:33:03","modified_gmt":"2024-07-18T14:33:03","slug":"the-future-of-retail","status":"publish","type":"post","link":"https:\/\/www.hult.edu\/blog\/the-future-of-retail\/","title":{"rendered":"The Future of Retail: Adapting to a Post-Digital Landscape"},"content":{"rendered":"<p>In the second episode of our Fireside Chat series, Hult Professor Dr. Caryn Pang hosted legendary marketing experts <strong>Professor Philip Kotler<\/strong> and <strong>Dr. Giuseppe Stigliano<\/strong> as they discussed the findings in their new book, <em>Redefining Retail: 10 Guiding Principles for a Post-Digital World<\/em>.<\/p>\n<p>The fast-paced retail landscape is constantly evolving, presenting companies with big challenges and opportunities to leverage new channels, technology, and tools including artificial intelligence (AI). Professor Kotler and Dr. Stigliano\u2019s fascinating chat covers a wide range of topics related to the current state of retail, offering valuable tips and insight for the marketing leaders of tomorrow.<\/p>\n<p><strong>Check out the full video below and read on for some key takeaways, all about how the retail industry is adapting to a high-tech, post-pandemic reality.<\/strong><\/p>\n<p><iframe title=\"Fireside Chat with Philip Kotler &amp; Giuseppe Stigliano\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/sLKazrTG_FU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<h2>The VUCA environment: Navigating retail in turbulent times<\/h2>\n<p>The pandemic forced retailers to quickly pivot their strategies. Companies today are still operating in a VUCA (volatile, uncertain, complex, ambiguous) environment, and both Professor Kotler and Dr. Stigliano emphasize that most are ill-equipped to deal with such instability.<\/p>\n<p>As Dr. Stigliano points out, \u201cThe majority of business leaders in charge today, who are in their 50s and 60s, have been trained for a completely different economic reality\u2014a more stable world. Today, it is much harder to predict the evolution of the context we\u2019re operating in because the future is no longer just a marginal optimization of the past.\u201d There is a real need for agility and adaptability in the face of this uncertainty.<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>\u201cThe majority of business leaders in charge today have been trained for a completely different economic reality.<\/p>\n<p><span style=\"font-size: 16px\">Dr. Giuseppe Stigliano<\/span><\/p><\/blockquote>\n<p>Moreover, with the rise of automation and artificial intelligence (AI), Professor Kotler acknowledges that this shift requires big changes to traditional management theories and practices. As he explains, \u201cThe whole question being raised in the digital and AI age is: what kind of adjustments do we have to make in the machine-person relationship?\u201d<\/p>\n<p>Professor Kotler uses examples like Amazon Go stores and Trader Joe&#8217;s to showcase the potential of technology in enhancing the customer experience. Finding the right balance between high-tech solutions and high-touch experiences is crucial for success in a time when customer journeys are becoming \u201cthree-dimensional&#8221;\u2014spanning physical, digital, and virtual worlds.<\/p>\n<p>&nbsp;<\/p>\n<h2>Prioritizing marketing strategy: The omni-channel vs. opti-channel approach<\/h2>\n<p>Omni-channel marketing involves targeting customers across multiple channels, including brick-and-mortar stores, e-commerce websites, social media, email, and more. The prefix &#8220;omni&#8221; means &#8220;all,&#8221; indicating a strategy that encompasses all possible customer interactions, ensuring a unified approach across physical and digital touchpoints.<\/p>\n<p>Professor Kotler and Dr. Stigliano suggest taking an opti-channel approach instead, focusing on optimizing a retailer&#8217;s presence across the most effective channels for each individual customer.<\/p>\n<p>Dr. Stigliano explains, \u201cThe theory of omnichannel is absolutely correct, and our North Star should be about consistency and a seamless integration. But the problem is, in a world that is so fragmented, where there are so many different channels, when you try to apply that theory, you realize that you don\u2019t have enough budget or people to actually be everywhere.<\/p>\n<p>So, instead of trying to be everywhere\u2014instead of trying to be relevant in every single channel, and every touchpoint, we should probably try to leverage business intelligence to identify the optimal channel for each customer interaction. It\u2019s less about being everywhere and more about being where it makes sense.\u201d<\/p>\n<p>It&#8217;s a departure from the traditional approach of maximizing all available channels, but this strategic shift allows retailers to tailor personalized experiences for their customers, fostering stronger relationships and loyalty.<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>\u201cWe don\u2019t want to maximize the number of channels\u2014we\u2019ve got to have the right channels so we get the most impact.<\/p>\n<p><span style=\"font-size: 16px\">Professor Philip Kotler\u00a0<\/span><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<h2>Personalization and the Human Touch: It\u2019s still important<\/h2>\n<p>While technology plays a vital role in retail, the human touch and personalization are equally important. Companies are grappling with the challenge of maintaining a personal connection with customers as they scale their operations. Professor Kotler recalls visiting the corner store as a young boy to buy candy and the shopkeeper always knew his name. He cautions that this personal touch is something that\u2019s increasingly lost in today\u2019s shopping experience.<\/p>\n<p>However, Dr. Stigliano notes that retailers can leverage technology like AI to deliver valuable personalization too. \u201cWe acknowledge the importance of personalization,\u201d he insists. \u201cIt is important because it\u2019s human nature\u2014we like to be considered as individuals, we like to be called by name, we like to order \u2018the usual,\u2019 and we like when someone has respect for our time and our loyalty. Thanks to technology, we can now do personalization at scale. The problem is, when you scale personalization, the customer experience can become quite cold. Technology is cool, but people are warm.\u201d<\/p>\n<p>This concept of &#8220;warm people and cool technology&#8221; highlights the need for marketers and retailers to aim for a harmonious blend of human interaction and technological innovation.<\/p>\n<p>&nbsp;<\/p>\n<blockquote><p>\u201cTechnology is cool, but people are warm.\u201d<\/p>\n<p><span style=\"font-size: 16px\">Dr. Giuseppe Stigliano\u00a0<\/span><\/p><\/blockquote>\n<h2>The rise of virtual worlds: Redefining customer journeys<\/h2>\n<p>The customer journey has evolved to encompass the physical, digital, and now virtual worlds \u2014what Professor Kotler and Dr. Stigliano refer to as \u201cthree-dimensional.\u201d Young consumers in particular are establishing emotional connections with brands through virtual experiences, such as buying digital products in video games.<\/p>\n<p>The <em>metaverse<\/em> presents new opportunities and challenges for retailers to engage with consumers in this emerging virtual space. As the boundaries between physical and digital blur, retailers must be prepared to innovate and experiment in this uncharted territory.<\/p>\n<p>Dr. Stigliano shares an example from a recent conversation he had with his son: \u201cMy son is 10 years old, and a few weeks ago he asked me to buy a BMW for him. And I said, \u2018Well that\u2019s a bit expensive and you can\u2019t drive.\u2019 And he said, \u2018No, I mean in <em>Fortnite<\/em>.\u2019 It turns out you can buy Moncler jackets, Ralph Lauren clothes, and a BMW for your Fortnite avatar.\u201d<\/p>\n<p>More fascinating still, in this virtual world, a customer journey can now begin without any prior physical or digital interactions. As Dr. Stigliano explains, \u201cMy son hasn\u2019t been to a BMW dealership. He doesn\u2019t follow them on Instagram. He hasn\u2019t been to their website to configure a car. He has zero experience in the real world with this brand and zero experience in the digital world. However, he is establishing an emotional connection with this brand and starting a customer journey in the form of an avatar in a virtual world.\u201d<\/p>\n<blockquote><p>&#8220;It turns out you can buy Moncler jackets, Ralph Lauren clothes, and a BMW for your Fortnite avatar.&#8221;<\/p>\n<p><span style=\"font-size: 16px\">Dr. Giuseppe Stigliano\u00a0<\/span><\/p><\/blockquote>\n<p>What does this mean for a marketer? According to Dr. Stigliano, <strong>70% of Gen Alpha say they are happy to buy themselves the same products in real life that they buy for their avatar<\/strong>. The implication is that marketers need to be aware of this evolution as something that will become the norm.<\/p>\n<h2>Sustainability in the post-digital age: Balancing profit and responsibility<\/h2>\n<p>A key question today for consumers and businesses alike is how do we achieve sustainability in the face of overconsumption? It\u2019s a difficult balancing act for fast-fashion retailers, who must reconcile profit-driven priorities with responsible practices. Professor Kotler and Dr. Stigliano argue that governments must play a central role in supporting industries during the transition towards more sustainable practices. And retailers must prioritize sustainability and responsible consumption to maintain consumer trust and loyalty.<\/p>\n<blockquote><p>\u201cIf everybody\u2019s clear on the fact that we won\u2019t have a planet in a few years if we don\u2019t act now, the only solution is that governments should step in. We need to help companies to help themselves.\u201d<\/p>\n<p><span style=\"font-size: 16px\">Dr. Giuseppe Stigliano\u00a0<\/span><\/p><\/blockquote>\n<p>The retail landscape is undergoing a seismic shift, driven by technological innovation, changing consumer behaviors, and the need for sustainability. To thrive in this environment, retailers must be agile, adaptable, and willing to experiment with new channels, technologies, and business models. By balancing technology, personalization, and sustainability, retailers can create memorable experiences that drive loyalty and growth.<\/p>\n<p>&nbsp;<\/p>\n<h3>Learn more in Professor Philip Kotler and Dr. Giuseppe Stigliano\u2019s latest book, <a href=\"https:\/\/www.amazon.com\/dp\/1394204701\"><em>Redefining Retail: 10 Guiding Principles for a Post-Digital World<\/em><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>In the second episode of our Fireside Chat series, Hult Professor Dr. Caryn Pang hosted legendary marketing experts Professor Philip Kotler and Dr. Giuseppe Stigliano as they discussed the findings&#8230;<\/p>\n","protected":false},"author":63,"featured_media":36935,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[114],"tags":[364,182,205],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Future of 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