Retail

Towards the digital transformation of stores, an omnichannel strategy and a better user experience.

Retail sector trends

Consumers will switch more of their spending from conventional retail to new and alternative formats and channels, as retailers scramble to offer new choices and reshape their physical premises.

Improve customer lives. Shoppers will value life-improving services from retailers and technology firms. This, wellness-focused lifestyles will support demand for digital tools that promote mental and physical well-being.

Deliver a better experience. Brands, retailers and technology firms will offer new types of interactions, rewards and experiences. Also, mobile devices are central to shopper engagement with retailers at all points.

Collaborations and alliances. Rapid industry change will prompt retailers to collaborate with technology giants, logistics technology vendors and social media influencers.

Improve competitive position. Retailers will leverage technologies as diverse as the blockchain and 3D printing to make their supply chains smarter and, as a result, fitter for a more competitive market.

Environmental sustainability. Consumers are demanding socially conscious mission statements and pressing companies to make both their products and businesses sustainable. They are looking to buy from companies that focus on sustainability across the entire supply chain and all business operations. Is the era of responsible retail.

INDUSTRY CHALLENGES

Digital transformation of stores

Physical stores need to implement the right in-store technology to deliver enhanced customer experiences that create unique opportunities to drive shopper engagement and loyalty. The major challenge for retailers is trying to use legacy technology, built for a different era and not designed to implement new in-store IT innovations.

Enhance omnichannel strategy

An omnichannel approach puts the customer at the center of the company strategy. It provides an entirely centralised data management towards synchronization of existing channels. Therefore, it brings shoppers a seamless shopping experience by blurring the boundaries among channels.

Digital Citizens and Businesses

The science of knowing the customers: who they are, what motivates them, what they want, need, love, or hate. Retailers must know their customers as more than just a number, understanding their purchasing patterns and needs. They cannot sell successfully without knowing 3 sources of customer knowledge: transactions, interactions and behavior on social media.

Improve customer experience

Creating an emotional bond between the brand and the customers is critical to the customer experience. Retailers must make customers feel valued and appreciated, as well as feel that visiting the store and purchasing is worthwhile.

Cost reduction and generation of efficiencies

Retailers must invest heavily in advanced analytics and their IT infrastructure to upgrade their digital capabilities. They face increasingly challenging trading conditions: pricing pressure, inflation, minimum-wage hikes and the changing shopping patterns. Retailers need to transform their cost structures. Looking at all parts of the cost to reinvest in high priority areas.

Adaptation and improvement of the distribution channel

Retailers and their suppliers are under more pressure than ever before to deliver more goods to more destinations faster. If there is a problem with their supply chain they have the risk losing customers. To stay competitive, they face the need to know where things are at all times so they can redirect shipments, rebalance inventories and respond to new demands on the fly.

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