The Future of Retail: Key Takeaways from Lunr's 2024 Investor + Retail Summit

Before we jump into it, we wanted to start by thanking everyone who attended the Lunr Investor + Retail Summit and helped make it such a successful and special event. We’re excited for more to come! 

The 2024 summit brought together retail leaders and innovators, and the insights shared were invaluable for navigating the rapidly evolving retail landscape. Below, we’ll explore the critical takeaways from the summit, focusing on how brands can stay ahead in a competitive market driven by digital discovery, data-driven decisions, and the need for strategic partnerships.

Social Media is Now the #1 Retail Discovery Platform

Product discovery has fundamentally shifted from physical stores to digital platforms. Social media, particularly TikTok, has emerged as the leading platform for discovering new products. A staggering 41% of consumers have discovered a product on social media in just the past three months, and a study in collaboration with TikTok found that 61% of TikTok users discover new brands and products on the platform, 1.5x more than other platform users.

Where brand discovery thrives, TikTok

This shift underscores the need for brands to invest in robust social media strategies. It's no longer sufficient to rely on in-store experiences or traditional advertising. Brands must engage consumers where they spend most of their time—on social media. This approach not only captures early interest but also drives direct sales, with 43% of Gen Z and Millennials reporting they’ve made purchases directly through social media platforms in recent months.

Brands Must Differentiate on Multiple Fronts to Stand Out

One of the standout strategies discussed at the summit was Target's approach to differentiation. Target has successfully combined brand storytelling with a strong omnichannel presence, making it not just a retailer, but a brand that consumers actively seek out. Target's strategy revolves around creating unique in-store experiences, such as exclusive collaborations and limited-time collections, that resonate deeply with their audience. This, coupled with a seamless online experience, ensures that Target maintains its appeal across all consumer touchpoints. By integrating innovation and consistency in their brand narrative, Target continues to differentiate itself in a highly competitive market.

In today's increasingly competitive retail landscape, brands must adopt a similar approach to differentiation. It’s no longer enough to offer a good product; brands must continuously innovate, tell compelling stories, and maintain a strong presence across multiple channels. Differentiation has become essential for capturing consumer attention and building lasting brand loyalty.

Investors are increasingly looking for brands that have already proven demand before committing to retail partnerships. This means emerging brands must focus on building strong direct-to-consumer (D2C) sales before attempting to scale into traditional retail channels​.

The Consumer Journey is More Complex Than Ever

The path from discovery to purchase has become increasingly convoluted. Consumers are more informed and deliberate in buying decisions, often taking longer to move from initial interest to final purchase. In fact, the average number of clicks it takes for a consumer to complete their journey from discovery to purchase has increased from 200 to 300.

This extended journey reflects a more complex decision-making process, where consumers engage with multiple touchpoints—researching products, comparing options, reading reviews, and seeking validation through social media before making a purchase. For brands, engaging consumers at every stage of their journey is crucial, providing consistent messaging and value to guide them toward conversion.

This complexity is a reflection of the broader retail evolution discussed at the summit. As the market has shifted from the "Age of Empires" dominated by department stores to the "Age of Champions" where specialized e-commerce and omnichannel experiences lead, brands must adapt by ensuring they are present and relevant across all these touchpoints in the consumer journey.

CPG Brands Must Harness Data to Drive Growth

Data is a must-have, offering insights that can drive everything from product development to marketing strategies. However, with the explosion of data sources and analytics tools, navigating these tools can be overwhelming. Data in the CPG world can mean many things—from sales and inventory data to consumer behavior and market trends—and understanding how to leverage it effectively is crucial for success.

Leveraging Data for CPG Success:

Data analytics tools have become indispensable for CPG brands aiming to stay competitive and connect with consumers in today’s digital-first landscape. With the complexity of online consumer behavior, brands must leverage data to navigate and optimize every stage of the consumer journey.

• Search Behavior and SEO Optimization: Consumers often begin their product discovery journey with a search. By analyzing search data, CPG brands can optimize their SEO strategies to ensure their products appear at the top of search results, capturing consumer interest early and tailoring content to specific needs.
• Social Media Listening and Targeted Advertising: Social media platforms offer rich consumer data. By using social listening tools, brands can identify trends and gaps in the market, then launch targeted campaigns that drive both brand awareness and conversion among the most engaged users.
• E-commerce and Marketplace Data: Platforms like Amazon and Walmart provide valuable insights into consumer purchasing behavior. Analyzing this data helps CPG brands refine product listings, adjust pricing, and optimize the online shopping experience based on how consumers interact with their sites.
• Consumer Data Platforms and Integration: Consumer Data Platforms (CDPs) allow brands to consolidate data from various sources into a unified view, helping them identify patterns and trends to inform more effective marketing strategies across all touchpoints.
• Personalized Marketing Through Data: By integrating data from search behavior, social media, and e-commerce, brands can create personalized marketing journeys that guide consumers seamlessly from discovery to purchase, ensuring targeted offers meet their needs.

The growing number of data sources and analytical tools means that brands need to be discerning in how they collect and use data. Successful CPG brands are those that can filter through this data, extracting the most relevant insights to inform their strategies and drive growth.

Strategic Partnerships are Key

While it would be great to offer a step-by-step guide to retail success, there’s no one-size-fits-all solution. That’s why it’s crucial for brands to stay nimble and data-driven while also having the right strategic partners who can provide specific guidance when needed.

Whether it’s navigating social media trends, leveraging data for personalized experiences, or making critical distribution decisions, having the right partner makes all the difference. At Lunr, we’re committed to guiding brands through these challenges, helping them achieve sustained success in a rapidly changing market.

Have questions? Want to dive deeper into any of these trends? Or maybe you just want to share your own experiences and perspectives? We're here as a resource. Don't hesitate to reach out – we'd love to chat more about the future of retail and how we can all navigate these exciting changes together.