From Singles’ Day livestreams to shoppable reality TV shows, the worlds of entertainment and retail are becoming more intertwined than ever. How can retailers win in the battle for consumer attention both in-store and on-screen?

JD Sport Nike Tik Tok

  • Making shopping entertaining and engaging has never been more important
  • Covid crisis has changed the way people find, buy and consume brands
  • Retailers need to create a point of difference
  • TikTok says retailers have a chance to create a new kind of shopping experience

 

Nowadays, the average consumer is as likely to forgo a trip to the shops in favour of binging a show on Netflix as they are to decide what they’re going to make for dinner via the latest viral TikTok recipe video.

Against this backdrop, David Roth, chief executive of WPP’s global retail practice The Store, says making shopping entertaining and engaging has never been more important. “We’ve retailed excitement out of the retail experience,” he says.

”We’ve made everything so damned efficient that we’ve taken out the sparkle and the fun and the interaction. Covid accelerated that process so, post-Covid, if retailers don’t make the act of buying much more interesting, we will default to a much more mechanical way of doing things. This is certainly not good for retailers and not good for brands.” 

Roth says retailers should be asking themselves: “What is the best way to engage with people? What is the best way of creating a bigger and bolder emotional bond between retailers and the consumer?”

The rise of ‘shoppertainment’

Westfield London

Entertainment has always been at the heart of shopping. But recent research from Westfield indicates that customers now want as much as 50% of space given over to experiences, which has led the shopping centre operator to add activities such as healthy cooking classes for kids and mini-golf courses.

What’s more, the rise of social commerce, combined with new digital technologies such as virtual reality, has forced retailers to become much more adept at delivering so-called ‘shoppertainment’. 

And it’s not just in-store that retailers are driving this shift.

Shein and Amazon have both launched fashion reality shows, allowing shoppers to buy the clothes showcased on the programmes.

John Lewis’ virtual Beauty Weekends, which allow shoppers to watch panel discussions, skincare advice videos and tutorials with renowned make-up artists, have been a hit with shoppers, according to executive director Pippa Wicks.  

H&M has taken aim at the $293bn (£220bn) licensed merchandise market with the launch of Creator Studio, a platform that allows artists to sell personalised products to their fans on-demand.

Ellen Svanström, head of business ventures at H&M Group, said the venture was in response to customers “demanding more personalised products and experiences than ever”. 

As the lines between entertainment and commerce become increasingly blurred, how much potential is there for retailers to monopolise on this growing trend?

From pandemic pastime to permanence

Neil Mason, retail director at market research firm Mintel, says there is plenty of potential for retailers to engage with customers in new and exciting ways, not least because the Covid crisis has led to a step-change in the way people find, buy and consume brands.

Online shopping

Mintel research shows that retailers are increasingly investing in augmented reality (AR) technology.

Since the pandemic began, some 48% of consumers have used technology to view products in their homes, 40% got sales advice via text and 36% got sales advice via video. 

“Retailers need to create a point of difference, give people a reason to shop and encourage people to engage with the brand for a longer time” 

Neil Mason, Mintel

Mason explains: “Online sales jumped from 20% of overall retail sales to 30% throughout the pandemic. It might fall back a bit as stores reopen, but this is a legacy jump.

“Retailers will have to reach out in different ways. It’s important for retailers to follow consumers and how they are consuming.

“Retailers need to create a point of difference, give people a reason to shop and encourage people to engage with the brand for a longer time.” 

Lululemon sunrise yoga

Sunrise yoga at Lululemon

Mason cites Lululemon as an example of a retail brand that has ticked all these boxes by creating a strong sense of community. The sportswear brand hosts running clubs and in-store fitness classes, while some of its stores have cafes selling healthy food.

So which platforms, partners or channels should retailers should be investing in? 

Social media platform TikTok, which has built up a community of 100 million monthly active users in Europe alone in just five years, has proved to be a rich seam for retailers across a wide variety of sectors.

Some 75% of those on the platform are there for entertainment, according to TikTok, so retailers looking to tap into this audience need to follow suit. 

Alongside this, 67% say they come to TikTok to discover new products, with hashtags like #AsSeenOnTikTok – which helps people share their best TikTok-inspired purchases – racking up millions of views. 

Cassandra Russell, head of fashion, luxury, beauty and retail brand partnerships (EMEA) at TikTok, says retailers have a clear opportunity to create a new kind of shopping experience.

“TikTok is built on discoverability, which means that anyone, any brand and any product can go viral”

Cassandra Russell, TikTok

“From cooking hacks to beauty tutorials, there is an incredible community on TikTok who are very passionate, providing great opportunities for retailers to engage their customers in a way that’s creative and authentic,” she says.

“TikTok is built on discoverability, showing people content based on what they like rather than who they follow, which means that anyone, any brand and any product can go viral.”

Feta cheese on pasta - photo by Julias Torten und Törtchen from Pexels

One trend that went viral was #fetapasta with 1 billion views, which caused a spike in feta cheese sales. Spotting the trend, Asda introduced a special Baked Feta Pasta bundle for people wanting to try the trend at home, showing how grocers can be part of trends and drive sales. 

Shoe retailer JD launched a collaboration with Nike earlier this year, inviting people to get involved in a bespoke shoe trying-on moment, following the launch of the new Nike Air Vapormax – yet another example of a retailer that has capitalised on TikTok’s potential. 

Consumer expectation shift 

Spotify on a handset

Music-streaming service Spotify, which has 365m global listeners, is another platform that has seen some interesting collaborations with retailers.

Its Spotify for Artists team has joined forces with retail operating system Shopify to help musicians capitalise on their fanbase and grow additional revenue streams, such as via merchandising. Little Mix, alt-j and Spector all use the integration.

Managing director of Shopify’s EMEA region Shimona Mehta says the move is an example of how retailers are “surfacing commerce right where the customer already is”.

“It’s like the two worlds of commerce and entertainment are colliding”

Shimona Mehta, Shopify

She explains: “Consumer expectations have changed and brands have to adapt to thrive. Consumers expect to shop on the platforms that they like to use the most – with entertainment. And now retailers are aligning with that more than ever.

“It’s like the two worlds of commerce and entertainment are colliding.”

According to Mehta, retailers are finding customers and building relationships across so many different platforms – from in-store to online to social and even in the metaverse – that it’s difficult to pinpoint one particular platform to focus on. Instead, retailers need to focus on being agile.

“We saw this through Covid when all traditional channels were shut down. The brands that thrived were the ones that could quickly pivot,” she says.

“Our goal is to ensure that we’re looking at the future of commerce and making all of those channels available to our retailers.” 

Shopify homepage

Social commerce clearly represents one of the fastest-growing channels for Shopify merchants, primarily as more independent creators rely on these platforms to build their businesses, but that doesn’t mean retailers can be complacent.

And, while the demographics point to younger, more digitally-native consumers enjoying an entertainment-led offer, this doesn’t mean that older age groups should be ignored. 

Shopify’s Future of Commerce 2021 report revealed that 54% of younger consumers who purchase from independent retailers discover brands via social media. However, interestingly, as much as 43% of middle-aged consumers, aged 35 to 54, and 25% of older consumers, aged 55 and above, also used social media for brand inspiration.

One area that is growing in significance is the so-called creator economy. In response to this trend, Shopify partnered with TikTok earlier this year, launching an in-app shopping experience to help creators and merchants deepen their relationships with consumers and create communities with like-minded people. 

Indeed, TikTok sees this blend of community and commerce as the driving force behind a new shopping culture. 

A study by TikTok in partnership with Publicis Groupe and WARC found that 78% of consumers surveyed spend more time interacting with people and brands through virtual social channels. 

Retail reality

Marks & Spencer foodhall

So how lucrative have moves into entertainment been for retailers?  

Marks & Spencer Food’s collaboration with ITV’s Cooking with the Stars series featured an unprecedented level of brand integration on the primetime show and across social, online and stores.

The retailer said the programme led to a spike in sales of specific ingredients featured and more than 2 million recipe cards collected in M&S Foodhalls since the launch. While it doesn’t reveal the financial effect of the collaboration, M&S’s figures for the six months to October 2 2021, show strong growth in food sales of 10.4%.

“We’re all competing for people’s attention, so having great content and experiences is very important.” 

Pete Markey, Boots

Boots’ chief marketing officer Pete Markey says it’s still too early to establish whether an entertainment-led marketing strategy delivers a good return on investment. Still, he’s keen that the health and beauty retailer is a pioneer in this area.

Boots Christmas showcase

Davina McCall (right) hosts Boots’ Christmas special

For example, Boots recently created a one-hour magazine-style TV show hosted by Davina McCall to showcase its Christmas gift range. It also hired former Doctor Who star Jenna Coleman to feature in its Christmas advert Bags of Joy, which has been a hit with shoppers. 

Markey says: “We’re all competing for people’s attention, so having great content and experiences is very important.” 

Boots is also piloting the first-ever shoppable TV campaign in partnership with Sky. QR codes are displayed on TV, allowing customers to scan and shop in the moment via their mobile phones.

He says: “At the moment for retailers, it’s all about shortening the window between seeing something you like and getting it. So how do you make that as easy as possible? It’s early days because we’re piloting this, but it’s really exciting.

“I want us to be pioneering and go out and test channels like this in their infancy.” 

Shopping as entertainment

person shopping on their mobile phone - photo by cottonbro from Pexels

What plans are there for retailers to evolve their entertainment-led offers?

WPP’s Roth points to livestreaming as a trend that retailers should keep an eye on. As a shopping channel, it has achieved continuous and organic growth in China, even after Covid-19 lockdowns were lifted, becoming the second-largest shopping channel of choice during this year’s online shopping extravaganza Singles’ Day, according to research from Kantar.

Roth says shoppers love the heady mix of being shown the products in an engaging way, being part of a community, having things explained to them by someone they trust and the confidence that they’re getting products at the best prices.

“It’s entertainment, shopification of gaming, two-way communication with your consumer on steroids,” says Roth. 

Meanwhile, since the beginning of the pandemic, virtual launches and digital metaverses have become mainstream as brands and retailers find innovative ways to meet the demands of shoppers – and they seem set to stay. 

Ye Olde Castle Shop from I'm a Celebrity sponsored by John Lewis

Ye Olde Castle Shop from I’m a Celebrity sponsored by John Lewis

John Lewis has partnered with ITV to launch an I’m A Celebrity  ‘Castle trials’ experience in battle-royale video game Fortnite as part of the retailer’s Christmas campaign.

A castle set has been recreated in-game via Fortnite Creative, a mode in the game that allows players to design, create and share experiences with other players. John Lewis-inspired festive games will feature on the map each week and there is a branded shop where players can obtain supplies. 

Anne Muhlethaler, founder of coaching and consulting practice AVM Consulting and former head of communications for the Christian Louboutin group, says the metaverse is ideal for retailers to connect with shoppers and align themselves with how their customers feel.

“It can be hard to achieve this connection on a mass, store-based level, so this is why these new digital and virtual platforms are achieving great results,” she says.

The retail landscape is ever-changing but it seems that consumers are currently looking to be enchanted and captivated, and retailers have taken note.

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The global technology leaders influencing retail

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Innovative thinking. New ideas. Investing ahead of the competition. These are all requirements if retailers want to stay agile in these changing times. So, who are the individuals leading the charge?

Retail Week’s annual Tech 100 index celebrates the people shaping the new digital retail ecosystem and who will continue to do so in the months and years ahead.

Read Tech 100 today to discover:

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