The Top 10 Technology Trends For Digital Transformation In Retail Industry

Evolve or perish. This famous catchphrase encapsulates the number one rule of contemporary retail. Businesses in the online retail and eCommerce market face ongoing, tooth-and-nail rivalry as one of the fastest-growing and most dynamic industries. They will battle to the death to win the hearts of their customers. But, as we all know, individuals are inconsistent, and consumer behaviour constantly changes.  

Retailers must handle massive advertising expenditures, handle procurement complications. Supervise complex manufacturing operations. Untangle what can quickly become a tangled web of logistics to acquire and maintain their items on the market. The mechanics of all the many business choices and procedures may be intimidating—and punishing. Supply chain visibility solutions & technology may alleviate some of these difficulties for retail company owners, allowing them to concentrate on what is most important: the client experience. 

Why is digitisation critical in the retail industry? 

Digitalisation is fostering innovation in the retail business. When the COVID-19 epidemic struck, it changed how people interacted and pushed more retail buyers online. Modern retail organisations utilise a mix of automation and personalised service to fulfil consumers' expectations and drive repeat purchases. Retailers must research customer behaviour and increase marketing effectiveness by using consumer data. 

According to Statista, by 2024, total retail sales in the United States will have reached $5.94 trillion. Consumers' shopping experiences are being moulded by technology. It aids both the shopper in quickly narrowing down their options and the sales staff gain access to the data they need to serve their clients better. 

The Advantages of Retail Technology Transformation 

There are several advantages to technical improvements in the retail business. We've highlighted a handful of them below. 

Provide useful information 

If you haven't already, it seems that the moment has come to put data analytics to work for you. The more information you collect, the better the customer experience. You may construct an optimal, data-driven experience to enhance sales. 

Artificial intelligence for supply chain and machine learning may help you learn about your customers' preferences and spending habits. Studying customers' tastes using this information might lead to higher conversion rates.  

Automation 

According to Emerj's study, automated retail technology such as robots, drones, and automatic checkout is transforming retail. Drones can decrease transportation costs by 86%, warehouse robots can cut human labour costs by 70%, and more than half of purchasers prefer unattended checkout for speed alone. 

The top 10 retail technology trends to look out for in 2022  

Accept the technological solutions that will define the eCommerce and Retail environment in 2022, and you will be able to stay up with this quickly expanding business. We are confident that you will be delighted with the outcomes. 

1. Predictive Analytics

It's only natural for retail to become more data-driven as the number of available data increases. Here are some examples of how merchants might use predictive analytics to make better business choices.  

They look at a range of criteria, including: 

• Inventory reporting and purchase dynamics allow merchants to identify trends and enhance their restocking strategy. 
• Analytics of consumer behaviour and the customer journey, aids in personalising the client experience throughout the decision-making process. 
• Customer behaviour patterns may spark ideas for increasing sales, decreasing cart abandonment, and improving conversion rates. 
• Preferences and interests of customers; individual customer loyalty programmes and special incentives are developed in this manner by merchants. 

2. Shopping for Friends

Buyers increasingly rely on the recommendations and opinions of other customers as the number of blind internet transactions increases. Social purchasing entails integrating others into your purchases, making shopping less personal. Social media platforms like Pinterest and Instagram, as well as contemporary influencers and bloggers, have become a source of shopping inspiration and a location where trends flourish and thrive. Shopping groups and channels connect individuals who have similar interests. 

Group buying platforms like Groupon encourage individuals to purchase things in bulk at wholesale costs. And it's not only on the internet. Social buying has infiltrated the physical retail experience as well. Robo (Research Online, Buy Offline) and ROPO (Research Online, Purchase Offline) movements have recently grown in popularity. Furthermore, there is an increasing number of apps, such as Presenter, employed by companies such as Adidas and Mexx.  

3. Environmental and social consciousness

Consumers are also becoming more interested in sustainability, environmental consciousness, and social awareness. 

Eco-transformation is putting a lot of pressure on retailers. They are often accused of fostering materialism. Some manufacturers have discontinued using fur and leather.  

• They reduced the amount of plastic produced.  
• Many companies choose biodegradable packaging.  
• Purchasing products from local vendors reduces logistical emissions.  
• Technology and digitisation may lessen the footprint.  

• Tokens may replace paper receipts. 
• Energy and water sensors 
• Electric transport. 
• Vending machines in reverse. 
• Technology for conscious consumption (like in the case with Carrefour, which applied Blockchain for milk traceability). 

4. User Data Protection via Privacy and Cybersecurity

• Most consumers don't realise how much data they leave online.  
• Purchase history geolocation data, medical records and medications ID, and payment information, 
• Education background, demographic identifiers, family information, political and religious markers, and so forth. 

Data privacy has become a significant problem, and firms are trying to meet new GDPR and CCPA rules. According to this Deloitte survey, 73% of retailers have already devised a customer privacy protection policy, while 27% are still trailing behind. Privacy-conscious merchants notify customers about the types of data they collect. They provide the opportunity to control (remove or edit) this data and obtain it in a machine-readable format.  

5. Self-Learning Recommendation Engines

Self-taught recommendation algorithms undertake vital work while remaining unnoticed. They are slowly progressing from the list of new retail technologies to the standard and critical retail trends. Amazon, for example, offered customised suggestions technology. As a consequence, revenue increased by 29%. Customisation is the number one trend in customer experience technology today. Artificial intelligence for supply chain & ML techniques are often used in recommendation engines. 

There are two varieties: Some systems handle client purchases, wishlist items, and searches (content-based recommendations). Others create clever offers based on the preferences of other consumers of the same age, geographic location, and cultural background (collaborative filtering). 

6. Internet of Things Devices and Wearables

IoT devices have enormous promise in the Retail business for streamlining processes and reducing human labour: 

• Automated checkouts 
• Robot staff, intelligent shelves, warehouse automation, and so forth. 

According to this study, the number of IoT devices will have surpassed 30 billion by 2020. IoT technology enhances in-store administration, improves customer experience, delivers speedier service, optimises product placement, predicts equipment repair, and more. IoT devices in retail help use both the digital and physical worlds for better outcomes. 

7. Electronic wallets and digital payments

Digital wallet technology provides merchants with an easy, adaptable, and secure approach to satisfy the payment demands of their customers. Previously, internet payments required credit card information, multi-step verification, and lengthy transaction processing. They have now crossed the bridge to one-click purchases, frequently activated with Touch ID or face recognition. 

They did not stop there; online payments evolved into Digital Wallets, which are integrated, typically Blockchain-based platforms for administering benefits, customer loyalty points, and much more. As a consequence, they provide clients with more convenience and faster service.  

8. Voice Assistants

Voicebot discovered that one in every five US people uses voice assistants throughout their purchasing experience. Google Home, Amazon Alexa, and Apple's Siri have all become popular in-car companions and home assistants for many families worldwide. Retailers cannot avoid adapting to the trend by optimising their products and services for voice search. Voice search provides a quicker, more accessible, hands-free method to search. It also has drawbacks, such as natural language processing problems and difficult informative browsing owing to the vast number of search results.  

9. Image Search

Visual search has become a significant component of the business of Target, Forever 21, and Aliexpress. This technology, introduced quite some time ago, has just recently become a Retail tool. Visual search helps consumers to discover goods they have previously pictured quickly. It indicates that consumers are one step closer to making a purchase and are twice as likely to do so. 

The increase in visual search in shopping affects sales through visual platforms. Instagram and Pinterest, for example, have elevated digital fashion influencers and celebrities to the status of significant shopping authorities. 

10. 5G

5G service, which will be available in 2020, will be 20 times faster than 4G. This will undoubtedly have an impact on the future of retail and eCommerce. Numerous new capabilities, such as Cloud and AR, need more connection from our phones, which 5G may supply. 5G will enable physical shops to adopt various current retail technologies, including improved IoT devices and even robots with longer battery life, thanks to 5G's low energy usage. 

Also, personalisation is possible, thanks to new high-speed real-time data transfer and dynamic pricing. 

• Gamification, AR, and VR are simple to implement. 

Wrapping Up 

We hope our list of the top technological trends to watch in 2022 provides you with some new ideas. Are you stuck in an engineering bind? Do you believe your retail company is at a fork in the road? 

Cozentus has been a trusted digital transformation partner for enterprises worldwide for almost a decade. We deal with startups and large organisations, offering full-cycle software development, consulting, supply chain visibility solutions and other services.