Older than MegaX itself, this marketing concept was introduced by American sociologist George Ritzer in 1999. He defined it as “the use of sound, ambience, emotion and activity to get customers interested in the merchandise and in the mood to buy.”
Retailtainment, also known as “experiential marketing”, is designed to breathe life back into the retail sector. It highlights the increasing expectations of customers from brands. It is no longer enough that retailers provide efficient service and wide variety, they must now also create an experience that customers cannot buy.
It paves the way for a friendship that goes both ways:
- According to The Freeman Company, 9 in 10 marketers believe that brand experiences provide engagement to that is more compelling for customers.
- EventTrack reports that 91% of consumers feel more positively towards brands after participating in events and experiences.
Technology has enabled more immersive brand experiences. Over the years, Swedish furniture retailer Ikea has explored both virtual and augmented reality.
In 2016, it collaborated with Valve’s game platform Steam to release a test app called “Ikea Virtual Reality Kitchen Experience.” With the VR headset, users performed basic kitchen tasks like frying meatballs, browsing the Ikea Catalogue and sorting waste. In 2017, it released Ikea Place, an AR app that lets buyers decorate their homes with 3D and true-to-scale models of Ikea furniture.
What happens when technology itself is the platform for retail?
The Enterprise Guide to Global Ecommerce estimates worldwide e-commerce sales to hit $3.3 trillion in 2019. They’ve moved over from window shopping at brick-and-mortar stores to wishlisting online. Through this shift in behaviour, they carry the same expectations of brands:
“Sell to me but entertain me.”
This calls for a new buzz word, the marrying of e-commerce and entertainment. Maybe this time the credit goes to Alibaba for inspiring that new term: Entertainmerce.
The e-commerce giant live-streamed an eight-hour “see now, buy now” fashion show for Singles Day 2018 on Tmall. As models walked down the runway in the latest designer clothes, audiences watching could buy the pieces on the spot. Those that jump on the live-streaming bandwagon in China stand to benefit from this booming and profitable industry. There are now more than 300 platforms catering to 300 million users. Brands can leverage on this channel of real-time product testimonials to enhance the shopping experience of customers.
Same rules apply
Because both “Retailtainment” and “Entertainmerce” prioritise the enjoyment of the customer, marketers can follow the same guidelines in crafting activations and initiatives. The three main questions to ask are the following.
- Who is my customer? Understand the target market, how their preferences change and what entertains them.
- Which solution best appeals to my customer? Of the many viable initiatives, the selected one should ultimately appeal to the target customers.
- What trends and concepts can I leverage? Brands are not evaluated in silos, and marketers therefore should consider their competitors and the industry trends.
