This article might feel tangential but stay with me…
It’s been a relatively quiet week in retail news. As I sat down on Monday to look over the headlines, I’ll admit that I struggled to find something to share with you all. So, in the absence of hot convenience gossip, I started surfing further afield.
What if I told you that the news story that set off alarm bells for me this week was about a Californian cannabis dispensary? And yes, I believe it will have implications for our convenience stores here in the UK.
… I told you to stick with me, didn’t I.
This week, Cannaverse Technologies, the creatively-named purveyor of cannabis products announced plans to develop what they are calling Cannaland.
(Stay with me!!!)
What makes Cannaland so fascinating from a business standpoint is that it is designed to act as an ALL-DIGITAL COMMERCIAL ENVIRONMENT, leveraging new technology within the digital space known as the Metaverse.
The Metaverse is a virtual world where people can interact with each other and digital objects and environments like in the real world; usually via a Virtual Reality headset and hand-mounted controllers that can simulate tactile actions in a 3D digital space. In case it wasn’t clear, this is the new big thing from tech company Meta, the parent company of Facebook.
I can feel your scepticism from here… I can! ‘Truth is, these newfangled technological innovations might not shake up how we work in the independent convenience sector…
… but they might!
I wanted to explore exactly what the Metaverse is, and how a mainstreamed and popularised Metaverse might impact how we operate day-to-day in our businesses. Sure, this is speculation, but being prepared pays off!
THE VIRTUAL STOREFRONT
Business-to-Customer (B2C)
We so often take for granted how we have become used to interacting with customers. Face-to-face, cash and card transactions in-store. However, ever since the pandemic, we have seen suddenly illuminated in frightening clarity how quickly and easily these conventions can change. Imagine, if you will, how a popularised virtual reality might impact the store/customer relationship.
Convenience store owners could create virtual stores within the Metaverse where they can showcase products, engage with customers, and make sales. Brands, in turn, can use virtual storefronts to market their products directly to customers, bypassing the need for intermediaries such as wholesalers or distributors.
Imagine your customers being able to browse digital shelving, browse products and place orders in an all-digital environment. This could allow retailers to devote more space to product storage as opposed to real-world display, increasing the amount of stock that retailers can store at a time.
This will provide new opportunities for convenience store owners and brands to gather data and insights about their customers. Virtual storefronts and events can be equipped with tracking and analysis tools that can provide data about customer behaviour, preferences, and purchasing habits.
This data will allow convenience store owners and brands to make informed decisions about their products, marketing strategies, and overall business operations.
DELIVERY
If this were to become popularised, it would also mean that the convenience secotr would be forced to invest heavily in delivery methods and personnel to meet the gorwing demand for purchase-from-home options amongst our customer base.
In truth, B2C interactions are the thing that I think will change the least if the Metaverse becomes more prevalent. I honestly think that customers will still want a brick-and-mortar store that is convenient for them.
However, I foresee our business practice being influenced by new Metaverse technology, just differently…
BUSINESS-TO-BUSINESS INTERACTION (B2B)
The rise of the Metaverse might be poised to change the way business-to-business (B2B) interactions occur, especially between convenience store owners and brands.
Convenience store owners and brands will be able to attend virtual trade shows and events where they can meet, network, and showcase their products. These virtual events will save time, money, and effort, as convenience store owners and brands will no longer need to travel to physical trade shows. Additionally, virtual events can be attended by a larger audience, making them more inclusive and accessible.
The Metaverse will also change the way that convenience store owners and brands collaborate on product development. With the use of virtual environments, convenience store owners and brands can work together to create and test new products, saving time and resources. The virtual environment will allow for real-time communication and collaboration, and the ability to simulate different scenarios and test products in a safe and controlled environment using customers within a digital storefront or even with AI tools simulating customer interactions with products based on existing data.
COMMUNITY
Perhaps more importantly still will be the opportunity for retailers across the country, or even the world to feel more connected as a community in the digital space.
Imagine retailers being able to meet face-to-face in a digital environment regardless of their physical location for meetings, socials and beyond. Across the country, retailers who operate under the same banner (suppliers, symbol groups, etc.) could meet in virtual spaces to maximise their sense of community and hold meetings.
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Overall, the Metaverse could have a profound impact on B2B interactions between convenience store owners and brands. From virtual storefronts to virtual events and collaboration, the Metaverse might provide new and innovative ways for these businesses to connect, market their products, gather insights, and build their brand. As the Metaverse continues to grow, convenience store owners and brands should seize the opportunity to leverage its benefits to transform their businesses and stay ahead of the competition.
While I don’t think it will ever usurp our current methods, it is poised to streamline our day-to-day operations should we embrace the positives that new technological innovations can provide.
I’ll be keeping an eye on Cannaland to see just how prophetic it might be.
