Retail sales in 2016 were projected to reach $22 trillion globally, buoyed by events such as Alibaba's $18 billion Singles Day and the 11 US e-commerce days with over $1 billion in sales beginning on Thanksgiving in 2016.

However, the massive increases in sales mean that the market is even more crowded. Customers can afford to be selective about price and user experience, because global competition is now the norm and there is always a competitor willing to offer a comparable experience.

In today's landscape, retailers and brands must make the following four key trends a priority to stay competitive.

1. Product content will become mission-critical for retailers

Having a great product is a cornerstone of a successful retail company, but if that great product isn't effectively merchandised across a variety of platforms, its success is severely limited.

Enter content. Fully 88% of consumers say detailed product content is a key purchase driver. What does that content look like?

Good product content should go beyond simply showing an image and sourcing information; it should help customers by adding value, by offering educational content and forging a connection with a brand. Once a seller has provided high-quality product content, that information needs to be consistent across every platform that a seller uses to sell its products.

The likes of Amazon are at the forefront of the product information "war," and it has implemented strict guidelines aimed at reducing the amount of counterfeit sellers and inaccurate product content on its platform.

2. Omnichannel will move from aspirational to essential

The word "omnichannel" has been one of the most talked about concepts in the world of retail in recent years, but it may finally be behind us. Retailers have had a few years to invest in the selling experience on multiple channels, and the margin for error is significantly smaller than it used to be.

Consumer data backs up the importance of nailing the omnichannel experience: Shoppers who interact with companies across multiple channels spend 18-36% more than customers who interact with only one channel.

Retailers have had their logistics capabilities and physical stores in place for many years now, but new investments in additional physical operations, such as in-store technology, pose a host of issues at a time when consumers expect a more unified experience than ever before. Integrating new technology into the e-commerce experience, with its global shipping networks, online sites, mobile apps, and more, creates a new level of complexity.

The recent emergence of Amazon Go signals a shot across the bow for retailers as well. The company's beta version of a grocery store, with instant checkouts, product selection, and arrangement determined by artificial intelligence, may force the entire grocery industry to rethink existing stores.

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The Four Trends That Should Drive Retail Strategy in 2017

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ABOUT THE AUTHOR

image of Dan Wilkinson

Dan Wilkinson is chief commercial officer of 1WorldSync, a global multi-enterprise product information network.

LinkedIn: Dan Wilkinson