My relationship with writing isn’t linear. I think this is typical for those that put out their work to those to consume. But, I think by taking some time off to be introspective and understand what I’ve enjoyed doing and what I want to do, I think I’m gaining clarity on what my next steps look like. I think this is what this article represents.
Ok enough about me. Onto the article :)
It’s been clear that progressive retail brands are reinventing what online retail looks like. Retailers are finding ways to keep up with consumer expectations — same day/1 day shipping, free returns, and online-exclusive products. We’re even seeing future-looking retailers trying to push the envelope by providing NFTs. These NFTs are keys for consumers to access exclusive product content — I’m thinking Bobby Hundreds with Adam Bomb Squad.
The catalyst for these transformative initiatives was (obviously) the pandemic. The pandemic wreaked havoc on all businesses, especially luxury, high-end retailers. One large retailer that took a hit was Neiman Marcus Group, the luxury department store. NMG filed for Chapter 11 bankruptcy in late 2020. As part of their new path forward, they’ve committed to a digital transformation as part of their strategy. They’ve recently appointed 2 new leaders to drive NMG’s next-generation digital experience and strategy and partnered with FARFETCH to revamp their mobile experience as their first big step.
This news got me thinking. Retailers need to understand their consumers’ purchasing decision-making process to identify opportunities to enhance engagement and loyalty. As a UX Designer, my brain automatically thinks that means understanding the motivations and needs of their consumers. Merchants are making intentional investments into reverse logistics, providing a easy and seamless returns experience such as providing at-home parcel pickups, instant refunds and more. We’re seeing modern retailers integrate Augmented Reality, AR, into their apps to visualize products and/or try on products in real-time.
But then we have merchants at the deep end of the progressive spectrum. These are the merchants that are pushing the envelope and investing their resources into Web3. For example, The Hundreds sold a limited number of NFTs for sale to provide these consumers exclusive products and more. While we’re in an experimentation phase of the intersection of Web3 and retail, I think we’re on the right path. The following snippet was taken from a Business of Fashion’s interview with Beniot Pagotto:
“Brands need to change completely – the word consumer is over,” said Benoit Pagotto, co-founder of virtual fashion start-up RTFKT Studios, which Nike acquired in December 2021. Instead, brands need to rethink traditional measures of success, such as a high market capitalisation, which might no longer be the key indicator of a brand’s value. “It’s the communities that define your value,” he said. “Instead of ‘what can I get from them?,’ ask ‘what can I do for them?’ That’s a big shift.”
I haven’t fully developed a confident stance of how brands will operate in the future in Web3 but I’m excited based on what I’ve seen so far. I think providing a community token for consumers to access exclusive products promotes the feeling of community and belonging that we look for in a brands. Equally as important, we can display our NFTs to signal our identify and what we represent.
While that’s all happening at the consumer-facing side of things, I’m curious as to how Web3 will affect the crucial activities that aren’t as sexy — think logistics and transportation. As someone who currently building digital products in the logistics, supply chain and transportation space, I’ve been thinking about how Web3 will affect my work.
As I’m typing this, I’m actively thinking about what next-generation transportation looks like. How might we take advantage of Web3’s capability to verify instantaneously in the supply chain and transportation space? I think this will be a fundamental block in the Web3 e-commerce space because I see transportation and the supply chain as the linkage between your digital and physical touch points. In other words, transportation slots in the middle of the moment you click “Pay” and when you receive your parcel. As we continue to see brands like The Hundreds embrace Web3, I believe the answers will become more obvious.