Four ways digital technology is changing retail

Today, technology is indispensable to almost any business enterprise you can think of, and is in fact driving growth of retail in an unprecedented way. Thanks to technology, the nature of retail is changing in a dramatic way. Technology is influencing not just the way products and services are being marketed and sold, it is changing consumer perception and habits. Here are four ways that the face of retail is changing as a result of technological developments.

Enhancing traditional shopping, making new markets – everybody’s doing it

Much has been said about the demise of brick-and-mortar stores, but currently, this is not entirely true. The walk-in store is not quite ready to disappear as yet, particularly in TT, although digital sales are steadily increasing. To stay competitive, even retailers that have a physical store are adding online shopping options. This has significantly increased their reach beyond fixed geographic areas, and items can be ordered online for either delivery or in-store pick up. In addition, it is benefiting downstream sectors: financial services, marketing, delivery providers and app developers, for instance.

Evening the playing field for small operations

Large, well-established companies have always enjoyed all the advantages in the retail sector. Not only were they able to own the outfitted stores, they spend the most on advertising and provided the best services at the best price. Technology has now changed all that. The resources needed for online retail is significantly less, allowing small businesses to compete more effectively. It is often a boon to niche providers and home businesses which are unable to scale. They also have the opportunity to collaborate with other businesses and providers to enhance their own operations.

One of the beneficial side-effects has been to allow small enterprises to work smarter. Whereas recruiting and retaining workers could be an issue, a flexible digital workforce is often beneficial.

Mobile apps put everything at your fingertips

The rapidly expanding field of mobile apps is showing no signs of slowing. There are apps that not only help you select your product or service, but make online payments, delivery, and a host of other activities easier. The website Retail Dive, referring to a study by Synchrony, states that, “The number of retailer mobile apps used by consumers has doubled since last year (2018), from an average of two per phone to four”, and “67 per cent have downloaded a mobile app from a retailer on their smartphones versus 63 per cent a year ago (2018)”. Locally apps for food or other deliveries and transport have proved to be popular and growing in both number and variety.

Comparing price, quality and other factors has never been easier, and once the purchase is made, many apps offer rewards of one kind or another that keeps clients coming back.

A highly personalised customer experience

The reach of virtual shopping is steadily increasing as digital marketing capabilities evolve to provide consumers with increasingly personalised experiences. Knowing the consumer – his tastes, preferences and his retailers of choice – is vital to satisfying his needs. Technology advances have made real-time interactions between consumers and vendors the norm. Analytics are increasingly being used to understand and target the individual patterns of consumers. A recent Gartner survey suggests that, generally, organisations are becoming aware of the importance of utilising AI in some way. Of those surveyed, 59 per cent said they are looking into ways to build their AI strategies, while the other 41 per cent have already adopted automated solutions.

TT and the wider Caribbean has been essentially playing catch-up with technology, more specifically, e-commerce. Vendors will need to be up-to-date with technology and aware of trends in order to provide consumers with the most positive online experience.

Article submitted by the Trinidad and Tobago Chamber of Industry and Commerce