NRF 2022: WT’s Key Takeaways

Since the pandemic began nearly two years ago, brands and retailers have innovated at a staggering pace and it shows no signs of slowing down. According to Target CEO Brian Cornell, what started as innovation out of necessity to enable business operations to ensure customer and employee safety has served to raise customer expectations. For Target, that included turning their more than 1,900 stores into fulfillment centers, shoring up their ecommerce capabilities, and forging partnerships with brands like Apple and Ulta Beauty to meet customers at the point of inspiration.

Best Buy CEO Corie Barry echoed this, describing the change as convenience commerce, where consumers expect to be able to engage with a brand on their terms. She noted that 40% of Best Buy orders are fulfilled via buy-online-pickup-in-store, although most of those products are also available in store or for next day delivery. She also noted a trend that she described as “digital comfort,” where consumers are more open than ever to trying new technologies and channels, but also their customer experience expectations have been raised to the point where they expect “magic” too.

• Customer data is the common currency of retail success
• Customer-first strategies isolate and solve specific customer problems or address net new needs
• Owned commerce channels offer brands end-to-end control of the customer experience

From advanced AI platforms to robotics, tech innovations were a dominant theme at NRF this year. One area capturing intense interest at the event was the metaverse. Emma Chiu, Global Director at Wunderman Thompson Intelligence, led a session on the recent Wunderman Thompson report Into the Metaverse. While still in its infancy and evolving rapidly across multiple platforms, consumers have shown a propensity for purchasing virtual goods in the metaverse. NFT sales alone ballooned to $24.9 billion in 2021.

This has prompted some early movers, like Nike, to create “virtual twins” of their flagship stores. Within these digital experiences, consumers can participate in online games, buy virtual apparel to outfit their avatars, or purchase non-fungible tokens (NFTs) as collectibles. Nike can then use data collected in the metaverse to determine which concept to manufacture and bring to market.

Liz Bacelar, Executive Director, Global Tech Innovation at Esteé Lauder Companies, spoke about how Esteé Lauder brands have found success pairing limited-edition NFTs with physical products and in-person experiences. This convergence of physical and digital touch points has created deeper connections with their customers. Ralph Lauren CEO, Patrice Louvet, spoke about the company’s aggressive push into the metaverse. In addition to a revenue-generating channel, which has included a sold-out run of over 100,000 NFTs, he sees the metaverse as a place to connect and nurture the next generation of Ralph Lauren customers in ways that were not possible only a few years ago.

• The metaverse is not a single place, but rather a collection of virtual platforms offering an array of experiences
• Experiment with emerging technologies to find what works for your brand to unlock new revenue streams and customer insights
• Use the metaverse to connect with current customers and to inspire the next generation of customers