Over the past 12-18 months in particular there has been a shift in the way that people use the Internet. While traditionally surfers have viewed web pages filled with content provided mainly by large corporations or enthusiasts, the trend is now towards user generated content. People are blogging their thoughts and opinions online, uploading and sharing video and audio clips, and are making new friends through social networking sites. Some people are even living virtual lives. Back in the real world, the likes of Facebook, YouTube and MySpace are increasingly dominating office and social chatter, are gaining substantial media coverage and are importantly attracting the attention of investors and blue chip corporations.
UK grocer Waitrose, the latest retailer to jump onboard, seems to have identified an easy win. Its plan to launch a ‘Facebook for foodies’ – which allows its customers to exchange recipes and ideas on message boards – is simple yet affective. Granted, it will not break any boundaries in technological terms, but it will allow the retailer to leverage current interest in social networking, as well as helping to create genuine value for its customers and, of course, they hope, encourage more spend. Tesco, too, has announced its intentions, which seem a little more ambitious. It believes tools like blogging, discussion boards and other user generated content will help put Tesco.com more in-touch with local needs. Already, as part of this initiative, the retailer has introduced Microsoft’s Virtual Earth application, to help customers find their local store.
Some retailers have taken their involvement in this next generation web to a far higher level, such as those opening stores in Second Life – ‘a 3-D virtual world entirely built and owned by its residents’. Apple, American Apparel and Reebok have all opened such outlets, selling virtual products for exclusive use in the virtual world.
At first, all this may sound a little gimmicky, but there are good reasons for retailers to explore new avenues. Apart from the obvious need to innovate, there is a genuine case for promoting user interaction. As well as providing essential feedback for the retailers to learn from, it encourages shoppers to try new products and swap ideas; and perhaps spend more money. Also, taking more of a long-term view, it should help forward-thinking retailers react to more significant changes expected from the next generation of consumers who have been brought up with the Internet – a world where immediate gratification takes priority and the ownership of physical products is less important.
Whether or not there is a mini-bubble forming around Web 2.0 continues to be debated, as some observers question the high prices being paid in recent new technology takeovers. But, what is for sure is that, under all the media storm and promotional spin, these next generation technologies do offer new areas of interest, alternative ways for consumers to interact and ultimately new commercial opportunities. Retailers would do well to keep an eye on developments at the very least.
Source: Verdict Research
