With the arrival of 2021, a change in the customer’s values and behavior has unfolded. A significant shift is noticed in customer’s interaction with brands and their need for personalization. Customers seek omnichannel options to have a dynamic experience. Furthermore, retailers are looking to implement the latest retail technology to drive maximum return on their investments. According to Statista, over 2 billion people purchased goods or services online in 2020. The same year witnessed the excel in e-retail sales by 4.2 trillion U.S. dollars worldwide.
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Using predictive analytics, retailers forecast the customer demand during a specific time interval. It also uses data & insights to cut costs and become cost-efficient. Moreover, retailers can know about the shopping behavior of their customers. It eliminates uncertainties in retail technology functions. Therefore, they can use it for inventory management and building marketing plans. The retail tech leads to precise inventory calculation, order, allocation, and restock of the items. It is majorly used to target campaigns and make reasonable price decisions.
For example, Revlon serves up the cosmetic product recommendation based on previous purchases. Demand forecasting leads to better purchasing decisions using accurate budgeting. Thus, every sale provides a capitalization opportunity.
Retailers have harnessed the power of AI for better ROI (Return of Investment) and customer experience. For supply chain management, AI tracks & monitors the customer’s demand using retail technology. According to the report published by Meticulous Research, the share of AI in the global retail market is expected to grow at 34.4% annually from 2020 to reach $19.9 billion by 2027.
For example, eBay, an e-commerce platform, is using AI. and analytics amidst Covid-19. Furthermore, AI algorithms use customer’s data for actionable information.
AI algorithms manage logistics and warehouses. In-store AI can also lead to an interactive shopping experience.
Voice commands allow customers to search and purchase products online. Retailers can also build their brand using voice search and virtual assistants. Technology retailers should find ways to add value to customer’s services. Covid-19 has removed the hesitancy from using voice-enabled devices. Moreover, it is operational from smart home devices and phones.
E.g: Personal assistants like Alexa, Google Assistant, and Siri are used as voice commands. Dominos uses Alexa to order pizza. Also used by hotels and grocery stores to make customers feel secure during the pandemic. Additionally, customers can prepare shopping lists and purchase the product. They also provide a seamless and personalized experience.
virtual fitting rooms. Jewelry brands such as Kendra Scott use A.R which enables their customers to try ornaments virtually.
AR/VR has simplified the trials amidst the pandemic. Moreover, customers have a digital screen in front of them. They can also try various products that appear reasonable and suit their body.
Retailers accumulate data from various sources such as user logins and card transactions to gain insights. The data is used to make business decisions. Thus, it optimizes supply chain, pricing and provides a better understanding of customer behavior. According to Mordor Intelligence, the market of Big Data is expected to reach $ 13.26 billion by the end of 2026, having a CAGR of 21.20%.
For example, Costco, an American retail company, used big data to warn customers about the possible product contamination. Moreover, the retail technology allows retailers to prepare a Retail Market Report. The report also consists of market risks, opportunities, and business growth.
used in the pandemic. Customers can use net banking, UPI to make payments while amazon pay provides instant checkout.
They do not require a PIN or sign-in data to make payments. Moreover, RFID (radio-frequency identification) is inserted into debit/credit cards to provide secure transactions.
existing profile or creates new profiles for unknown identities. Moreover, they accumulate customer’s data and gain valuable insights from their browsing styles. The system also provides discount coupons from previous purchase history. Such coupons and codes further intensify the shopping experience through fashion-forward tips.
The retail technology integrates online shopping and pickup in-store. The retail tech eliminates the long delivery time and shipping costs. Post pandemic, its growth has accelerated. According to Statista, in 2020 U.S. observed growth of 60.4% through Click & Collect Retail Sales. The trend in retail offers speed, convenience, and avoids crowds.
E.g: The brand Lululemon reported that 20% of shoppers who opt for Click and Collect have added additional items to their cart. Many other brands like Zara and Nike are implementing them across the stores.
The trend in retail has increased sales and maximized online activities. It also allows customers to select the time and place to pick up the product.
Technology retailers use robots for inventory management, product delivery, and warehouse operations. These robots deliver items anywhere within the shortest route possible. Robots meet the customers, collect information & feedback. This retail technology operates as shopping assistants. It provides product recommendations to the customers.
For example: Amazon is using robots to deliver goods. It has built Scout vehicles for door-to-door deliveries. Eliport has electric vehicles delivering goods to homes and offices. The robots allow people to stay safe at home. They are also widely used by grocery stores and pharmacies.
Technology in retail stores uses Data science to harness the power of data. Additionally, it is used to analyze customer sentiments, implement A.R. and price optimization. The retail technology also checks sales requirements and stock availability.
For example, Social media giant Facebook uses it for marketing purposes. Amazon accesses customer’s information such as addresses and payment modes using. Netflix also determines customer’s browsing habits and recommends related videos.
Social media uses data science to gather customer’s data in bulk. Furthermore, it predicts customer’s behavior and is used in fraud detection. They pass the data to retailers to find retail technology trends. Retailers can also offer personalized marketing depending on the customer browsing history.
IoT devices determine in-store analytics, such as monitoring and navigation. The integrated GPS sensors also inform about product availability and location. Moreover, they track real-time inventory and data audits.
The tech retail offers different styling ways and provides product recommendations. E.g., Rebecca Minkoff installed smart mirrors in fitting rooms. Kroger has installed smart shelves. They are also integrated with RFID tags.
IoT renders personalized communication as per the collected data. It also manages supply chain and leads to automated checkout.
The retail technology trends are evolving at a rapid rate. Hence, technology retailers can find new opportunities to make and analyze their business decisions. Retailers also evaluate the ever-changing market conditions to benchmark their performance. An engaging customer journey is achieved by determining their preferences. Moreover, the tech retail brands are necessary for customized and personalized services. Technology retailers leverage modern retail technologies to speed up innovative digital channels.