New Realities of the Retail Realm
As one is heading towards the future, technology seems to transform the businesses, and therefore this invasion is welcomed in personal and professional lives. The retail sector, which comprises both the brick and mortar stores and the online channels, is becoming fiercely competitive. It gives an idea that retail won’t just be about the competition amid the two mediums rather it will be a blend of the two through a variety of tools and services which focus on one major component- customer satisfaction.
Although the online platforms are one of the significant disruptions in the in retail, market stores are considered as the backbone of the online platforms. As per a report by A.T. Kearney’s, 90 percent of all retail sales are transacted in stores and 95 percent of all retail sales are captured by retailers with brick and mortar stores.
Blue-chip enterprises and traditional retailers have realized that the combination of brick and click can do wonders. These e-commerce giants have a significant impact on the global retail landscape. The industry will flourish as the integration will drive it by online, offline, logistics and data across a single value chain; there will be a tremendous competition among the e-commerce players.
For instance, Amazon Go that enables the “Just Walk out Shopping Experience” to its customers through e-commerce computer vision, and multiple sensors. Amazon is introducing the cashier-less experience to its customers. By tapping the Amazon Go app, one can enter the stores and leave without waiting in queues. It has already opened nine stores and is planning to open up 3,000 more by 2021, as per reports.
Gartner stated that by 2020, customers would manage 85 percent of their relationships with the enterprise without interacting with a human. The rising customer expectations and demands are forcing retailers to innovate and invest in the latest technologies. The report also stated the global retail sector technology spending would reach almost $203.6 bn in 2019 and around $225.4 bn by 2022.
Experience of the customer will gain more prominence and be the brand differentiator in comparison to customer experience, products, and price.