What:  IADS’ partner GDR quarterly report on innovation in retail.

Why it is important:  GDR scouts the world to source retail innovation on all its forms, from all segments and all categories.

This quarter, GDR identifies 7 trends : the discount lure, digital concierge, pixels are not enough, hyper-mersion, metaverse enterprise, IRL NFTs and Eco game-changers.

The discount lure: it is all about proposing a new win-win approach between customers and retailers, as the latter offer the former bargain prices in exchange for their data:

• For instance, Amazon’s Alexa is able to offer discounts (under the form of coupons to be redeemed in third party physical stores) to customers, and also tracks this way their behaviour.
• Hyperjar proposes a Buy Now Pay Later alternative where customers can pledge to buy a specific product and save until the amount is reached, while also gaining an interest rate on the saved amount on the process.
• Ziscuit is a grocery search engine scanning local shops and the lowest prices possible on the list of desired products provided by customers,
• Muni in Colombia connects local wholesales to final customers, who get access to wholesale prices but have to pay in cash at their doorstep when the order is delivered. Mara in Brazil is a supermarket chain with the same concept of offering wholesale prices to customers.

Digital concierge relates to how retailers increase their one to one capabilities to better serve customers. Notable examples in retail are:

• Walmart proposes a service of turning photos of leftover ingredients into shoppable recipes,
• Beauty Buddy offers data-backed advice to shoppers and brands,
• At-home Yves Saint Laurent device that prints a made-to-measure and on-request lipstick color,
• Korean beauty brand Amorepacific creates bath bombs based on customers’ brainwaves,
• Dior communicates with its customers via a 1 to 1 Whatsapp strategy

Pixels are not enough:  DNVBs also need a physical space to convey their messages and animate their communities. Physical stores are also entering the digital world. Meta, Google, and even Deliveroo have opened retail spaces, while Harvey Nichols sells NFTs and Gucci accepts cryptocurrencies.

Hyper-mersion: physical spaces are doubling down on the experience to make sure they leave a lasting trace in customers’ memories: WOW instagrammable department store in Madrid, 10,000 sqm Dior flagship store in Paris, Balenciaga’s boutique entirely covered in pink faux-fur in London, Jacquemus immersive installation in Selfridges…

Metaverse Enterprise: brands continue to explore the commercial opportunities in the Metaverse. Coca Cola makes product placement there, Wendy's opens a hangout space while Zara launches a hybrid collection, and CitizenM hotels open metaverse hotel to support its physical locations.

IRL NFTs: or how to monetize NFTs in the real world and build another bridge between the Metaverse and the real world. For instance a furniture company proposes 15% discount on its products for NFT holders.

Eco game-changers: it is all about accelerating in the sustainable practices and go beyond the obvious:

• Ikea has create a store which improves local biodiversity and microclimate in Vienna,
• Mastercard ties employee bonuses to ESG goals,
• ReSell Tag simplifies the resale process for customers,
• Cosmetic brands force customers to change their behaviours,

GDR 82nd Global Innovation Future