By Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce

Gazing into the night sky and dreaming about space has been a pastime for as long as anyone can remember. But when Leonov took the iconic step in the ’60s to enter into space, it gave way to the rise of something new altogether: “astropreneurs”. As a result, and perhaps surprisingly, there are currently 10 people in space right now.

Gone are the days of watching this space, and instead, entrepreneurs are now building in it.

After all, work in space is no longer limited to government bodies and space agencies – with the likes of Elon Musk, Jeff Bezos and Richard Branson becoming the new major players when it comes to space missions. And if this is the “billionaire’s boys club” latest hobby, then it will only be a matter of time before their collective desire to use space for commercial advantage comes to fruition.

Today, it’s not outlandish to think of infrastructures being built in space, enabling corporations to sell new or better products that in turn serve customers in faster and more efficient ways. Here’s the opportunity space commerce offers retailers.

Looking up now will prevent future downfalls

Although a ‘future gazing’ topic, retailers must consider the opportunity space offers if they want to compete with eCommerce giants, such as Amazon, who commands nearly a fifth of global online consumer spend and already have a strong footing in the space race. By looking at competitor movements, it will aid an understanding of how commerce will look in the future – meaning retailers must start making long-term plans now if they want to be in the race.

What’s more, early investors will be the gatekeeper to space as they will be able to construct how the commercial ecosystem works; reaping the biggest rewards once space commerce goes mainstream. The first-mover advantage will deliver businesses with a high return of investment (ROI) in the future.

Similarly, it is also key for retailers to understand the following principles: if you own an interface, you own the customer. If you own the customer, you own the data. If you own the data, then you own the future. Now, space represents a new commercial interface, and those who control the massive, technologically advanced infrastructure required to make space commerce happen will wield an enormous amount of power.

However, before launching this new venture, businesses need to uncover how space will build alliances that are profitable. They will also need to consider an agile approach, and how they can accommodate production, resourcing, logistics and service delivery. Nailing down the viability of offerings will make sure your product isn’t left floating in the universe.

But whether it be in space or on earth, as with all products and services customers are the heart of a business. Therefore, an understanding of consumer perception of space commerce is key. Failing to gauge their sentiment may otherwise lead to shortcomings.

Understanding consumer perception when it comes to the final frontier

While 31% of consumers were excited about the commercialisation of space, nearly half of consumers (46%) feel that the commercialisation of space could act as a destabilising force to peace and cooperation on earth. With this in mind, it’s vital that brands who venture into this market position it in the right way.

And that all comes down to demonstrating the value of space to consumers. By positioning it correctly and proving its benefits through faster delivery and products that can only be manufactured in space, there’s a real chance consumers could follow their space leaders across to the dark side. What’s more, if businesses can show there’s more to mining natural resources in space than the film, Don’t Look Up, would have us believe, there’s a real opportunity there to consolidate that demand.

When businesses overturn the notion that space ventures are all novelty and showboating and, instead, convey that it’s for the betterment of the consumer, only then will space commerce be a viable and rewarding strategy.

Creating campaigns that hit the mark

Not only should brands focus on how it benefits consumers, but marketing efforts should also be pivoted towards how space commerce is advantageous for society as a whole – fewer than one-in-six (15%) consumers believe that those trips are for the betterment of the human race. Tapping into why consumers find the idea of business ventures in space so alarming – the suggestion it isn’t a sustainable or environmentally-friendly practice, for instance – and how businesses can debunk those ideas will be crucial.

Looking at past innovations and understanding how they overcame negative connotations can help with strategy. For example, consumers initially rejected the idea of the internet in the early 1990s. In fact, the American magazine Newsweek went as far as publishing “the truth is no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works” in February 1995. However, as of January 2021, there were 4.66 billion active internet users worldwide, showing how initial perceptions can be overturned once the advantages begin to impact individuals’ everyday life. Arguably, space commerce is no different.

Looking forward, despite consumers having reservations about space commerce, it’s not all doom and gloom as over half (55%) of consumers would be willing to pay a premium for an “out of this world” product if it was exceptional – so demand, while small, is there. The same percentage would also be happy to pay a premium for a product from space if it arrived faster, meaning the logistics of trips must be mastered if businesses are to meet impressive time frames.

Overall, despite trepidations around space commerce, there is an overarching feeling that pioneers will win in the end. Elon Musk is the favourite to win the commercialisation “space race” in being set to benefit most from space commerce; with government agencies in second place and Jeff Bezos taking the third spot. Now, it is vital that businesses look up and understand the potential space offers.