People are painting tech advancement as the biggest enemy of brick and mortar retailers. The giant’s companies such as Alibaba, Walmart, and Amazon are transforming the retailing sector at a fast pace. The consumers are depending on the mobile applications and website that has saved them from the inconvenience of physical shopping. In this busy world, this is the double-edged sword technology that is saving a lot of time.
In 2017, there was news all over the web about how physical stores are shutting down. The simple reason is that they don’t meet the demand and requirement of a customer. There are so many choices for a consumer to look for that has empowered them. Even the market condition is improving, business is ruling efficiently and enhancing user experience.
However, each and every technology comes with a number of challenges that much be passed away in order to make a name in the retailing field. There are many retailers that are fading away with the increase in technology. The retail market is stapled by mobile payments, geo-targeting, and beacons. Nevertheless, there are so many retailing advancements that are not permeating even though they must be.
Catch the latest trends in the retail industry with our report on the best-in-class tech solutions available for the industry today.
Major Tech Advancements in Retail Industry:
Here is a list of some technologies that holds the power to change the retailing sector. Some of them are on their way to make a big mark in the retail sector.
1. Artificial Intelligence, Big Data, and Machine Learning
AI is slowly taking over each and every industry with so much potential it holds. The biggest thing is that no one is disappointed by what AI is offering, if anything, it is increasing the demand of consumers. It tends to convert the large and assorted data sets into deepened information that enhances the speed, cost, and flexibility of the supply chain.
And with the combination of AI and machine learning, it has thrown the cautions in the air and managed to divert all the attention to the rate of production. It is assumed that by 2020, the business of a retailer will be doubled with the help of AI and machine learning. AI is an industry that is already working on an essential change that has the power to modify the way customer do shopping.
The main benefit of AI is its ability to predict forecasting, merchandising and capacity planning that can help retailers and brand. The customer now can have better product accessibility with faster and accurate deliveries. Even forecasting error can be reduced by 50 percent while the inventory cost is feasible with 20 to 50 percent inventory reduction.
Read More: 5 Uncommon ways of using Big Data in Retail
2. Augmented Reality
Last year, we all witnessed the craze of Pokémon Go and get an insight of the augmented world. Augmented reality had the spotlight for many years now but last year was the time when people experienced the first-hand use of it. However, with the augmented reality on the toe, industries are running towards it checking out what it has stored for them.
If we take Lego then there were delivering AR Kiosks for years in the market. This is one of the most impressive growth for the in-store retailer world. In the recent years, augmented reality has enhanced and shown some progressive changes being Lego at the top. Especially the brands that deals in home decorations are an advantage of this growing technology. They are implementing AR to improve their shopping experience.
In the coming future, retailers will only adopt these strategies to evolve their business. However, the bottom line is that there is nothing without utilities. Retailers are working to improve the shopping experience of the customers. They are providing the showroom experience online at a reasonable price to attract an audience and improve their public image.
Read More: 5 Key benefits if cloud computing in retail
3. Drone Delivery
In 2016, everyone in the retailing sector believed that they will be introduced with drone delivery. Then there came reports that clearly shows that drone is not ready to face the world anytime soon due to regulating governing finalization. This doesn’t mean that you must not be excited about drone now.
All the companies are working on their drone project and it is possible that some are almost done with their new delivery ready to be out. They are all set to have a larger expansion of their pilot programs.
Even one of the top online retailing store, Amazon, managed to drop their first deliver through a drone in the UK in 2016. Then it was like that there is no off switch for Amazon. They are busy earning patents and filing. However, they are still working on their vision and hoping to take it to new heights.
Robots are something that is the long-term dream of the sci-fi world. Scientists have the vision to create something extraordinary – a fiction character – that will have a tendency to rule over every industry. Finally, robots are now making an appearance in the day-to-day activities. In the retail sector, the popularity of the sophisticated gadgets is increasing at a remarkable rate.
Robotics technology is now making retailing sector – supply chain – its commonplace. Almost all the brands and big names are depending on this technology. For instance, Amazon has approximately 50,000 robots that are working in their warehouses, supply, and logistics. This will only increase in the coming years.
Retailers are now committed to the expansion of the robotic systems for their supply chain. It is assumed that there will be an expansion in the other departments as well including checkout counters and aisles for the in-store retailing services.
Read More: 3 Core use cases of Blockchain in retail
At the end of the day, loyalty and customer return is something that every retailer look for. However, the advancement is made to ensure that a customer has a better shopping experience and to deliver a quality product. If the experience of a customer is improved then he/she returns to purchase a product. This will only ensure that you are gaining some loyal customers by only providing an experience for them to enjoy. This way you will create a customer for life and not for one-time shopping.
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