A new report by JWT retail hypothesizes that the idea of a circular economy will gain popularity and fair trade apparel will become more widely accepted by retailers in 2014.
The "Retail Things to Watch 2014" report discusses paradigm shifting trends such as brands featuring "real" people in advertisements rather than models, a 3D-printing boom and Bitcoins becoming a formidable currency. Existing trends that will become more pronounced such as immersive experiences and verified reviewers are also discussed.
"One of the most interesting things to watch is the drive toward ambient commerce," said Ann Mack, director of trendspotting at JWT, New York.
"As more smart, sensor-connected objects hit the marketplace, brands will seek to offer instant gratification by way of ambient commerce: anticipating consumer needs and wants and providing goods and services automatically," she said.
"Consumers would set up guidelines in advance, then let technology take care of the rest. In other words, brands will be able to predict consumer wants and needs and deliver accordingly."
JWT Intelligence surveyed 1,003 adults aged 18-plus (500 Americans and 503 Britons) using SONAR, JWT’s proprietary online tool, on Nov. 5–8, 2013. The report includes input from nearly 70 JWT planners and researchers across more than two dozen markets, and interviews with experts and influencers across sectors including technology, health and wellness, media and academia.
Reworking the mold
With 3D-printing still outside the budget of most consumers, retailers will begin to host 3D-printers for consumer needs.
Consumers will begin to appreciate the tenets of a circular economy, which moves from the linear "make, break, dispose" model to a circular system that minimizes waste.
JWT 2014 retail trends
Even with China's recent blow to Bitcoin, JWT predicts that the the wildly volatile currency will gain traction, as evinced by Bitcoin ATMs and acceptance by some restaurants.
Other surprising predictions include a space-age fashion comeback, branded real-estate developments and the growth of the "Amazon of Africa," Jumia.
Raising the volume
To overcome the rising noise of technology, JWT predicts that brands will craft immersive experiences to keep consumers engaged for longer.
The explosion of mobile devices will compel brands to master the new image, video and emoji languages that have emerged.
JWT 2014 retail trends
JWT foresees consumers becoming more impatient, which will call for shrinking the delay between consumer wants and brand delivery. Examples of this phenomenon include couriers on call, mobile applications that hasten payments, car services such as Uber and click-and-collect shopping.
Also, JWT argues that advances in emotion and facial recognition technology will result in brands enhancing personalization offers.
Consumers in emerging markets will likely use mobile as a launchpad to better opportunities.
JWT 2014 retail trends
Other rising trends include fair-trade apparel and feel-good fashion.
"As the pace of life seems to speed up, with ever more to do, see and attend to, time has become an increasingly valuable commodity," Ms. Mack said.
"Anything that moves quickly or saves time enjoys a competitive advantage," she said. "People are scared of wasting time and always looking for more of it. It will be a competitive advantage for brands to be able to satisfy consumers promptly, removing or reducing friction points and enabling more seamless transactions.
"This is an organic fit for the luxury sector, as in many cases, consumers will pay a premium for greater convenience and speed. As the saying goes, time is money."
Final Take
Joe McCarthy, editorial assistant on Luxury Daily, New York