The Tech Trends That Will Shape The Future of the Retail Sector
Consumers are more demanding than ever and require new ways of shopping, so retail professionals are looking for new tools to meet their demands.
Unlike other industries where the primary focus is on profitability, in the retail sector, the focus in 2024 shifts to achieving an excellent and personalized customer experience.
According to Gartner, 57% of retailers plan to spend more on software this year and prioritize marketing and IT investments. As digital transformation has accelerated even further, and customer habits have shifted towards omnichannel shopping and e-commerce, it is crucial to understand where these trends are going and what the keys are to making a business competitive in the future. Let’s take them one by one!
Retail Technology Trends
We are facing an omnichannel customer that demands personalized experiences. Therefore, our challenge must be to be able to predict consumer behavior and the possibility of satisfying these needs in a simple way and at the time the user demands.
Technology has become responsible for making all this possible, and the following are the ones that will shape the future of the retail sector.
Generative AI
It is a technology that is repeated in all predictions, regardless of sector and seems to be here to stay. Already, many retail companies are using LLM models to create more engaging product descriptions, optimize images, answer customer questions, recommend products, create marketing content, and more.
Advanced algorithms and data analytics decode complex consumer behaviors, enabling personalized shopping experiences. From interactive chatbots offering real-time assistance to personalized recommendations, AI-generated experiences improve customer engagement and satisfaction.
Spatial computing
Extended reality and immersive shopping are one of the trends that have been gaining momentum in recent months. Now, with the arrival of Apple Vision Pro, a new concept is opening up: spatial computing. This technology, powered by enhanced processors, ultra definition, and global network speeds, promises revolutionary immersive experiences.
It is the fusion of the virtual and physical world through a combination of augmented reality and virtual reality where products appear life-size, allowing interaction through intuitive gestures.
Gamification
Younger consumers are already becoming a major buying force, so reaching and engaging Generation Z means new gamified online experiences that engage and retain them.
In the same way that social media has served and continues to serve to engage millennials, branded games will be one of the key strategies for companies to connect with the younger demographic.
Computer Vision
It is a technology that is constantly growing in the retail sector, and its possibilities for managing inventory or better meeting customer needs are numerous.
From image optimization to customer behavior analysis to in-store space management, computer vision can improve the shopping experience, save costs and increase revenues. It provides competitive advantages and plays an essential role in the sector’s digitization strategy through heat maps, virtual mirrors and recommendation engines, advertising, crowd analysis, planograms…
Hybrid and omnichannel Customer Journeys
The trend towards a digital model is growing more and more, as it offers great convenience by allowing shopping from anywhere, anytime. It is also a perfect opportunity for retailers to track customer behavior.
At the same time, in-store shopping still offers great appeal for those who prefer a more ‘tactile’ experience. Hybrid shopping, therefore, brings together the best of both worlds to create customer journeys that meet all their requirements.
Physical retail outlets can leverage logistics and inventory management innovations to offer flexible payment methods or loyalty programs. In addition, online retailers can build customer relationships and offer immersive shopping experiences from traditional retailers to apply to online commerce.
Predicting Demand with Machine Learning
One of the biggest challenges for retailers is to improve stock tacking. Now Artificial Intelligence solutions make it possible to monitor product turnover in real-time and analyze the purchasing situation.
Introducing AI makes it possible to react quickly to ensure the availability of goods of certain products depending on the parameters that trigger the purchase, such as the weather. A snowfall forecast should mean that we have products in stock according to these conditions.
Automation of Processes
Implementing AI to automate operations is essential today, whether it’s for verifying identification when customers buy age-restricted items, reordering processes for low stock, recording serial numbers, or customizing product samples according to the customer… The possibilities are endless.
We can also apply it for marketing purposes, where customer data can be collected to encourage an increase in their purchases. This collection of information can be translated into data-backed campaigns that can be automated, such as communications or the launch of offers based on loyalty to our brand.
Sustainability and re-trade
It’s one of the retail technology trends that is gaining momentum in all sectors, including retail. Consumers are placing more and more importance on the ethical values associated with a brand, and shopping is moving towards a greener trend.
Sustainable and disruptive technology facilitates the creation of a more balanced future without sacrificing efficiency or business growth. Migrating to a Cloud model, opting for digitalization to generate less waste, and improving processes using Computer Vision or Big Data to minimize costs and maximize production are just a few examples.
The retail sector is shifting towards a much more digital and omni-channel model, but often times, business owners fail to get the right technology right. In fact, according to Gartner, 49% of retailers regret one or more purchases made in the last year and a half, which highlights the importance of having a technology provider that demonstrates a deep understanding of the shopper’s situation and identifies the pain points that need to be addressed.
At Plain Concepts we have extensive experience helping large companies in the industry to achieve their goals and meet the needs of a changing market and customers. If you want to take your business to the next level, don’t hesitate to contact us!
>> Download our ebook to become a profitable omnichannel retailer by predicting demand and offering a personalized customer experience in real-time.
