4 ways digital technology is changing retail

Today, technology is indispensable to almost any business enterprise you can think of, and in fact is 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 the walk-in store is not ready to disappear as yet, 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 pickup. In addition, it is benefiting downstream sectors – financial services, marketing, delivery providers and app developers, for instance.

Evens out the playing field for small operations

Large, well-established companies have always enjoyed the advantage 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.

Mobile apps putting 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. Consider this: the three finalists of the business technology category of the 2018 Champions of Business were all providers via mobile apps. Just about anything may be purchased online – jewellery, weight-loss meal deliveries, a tractor or plants. 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. A driving force of this transformation is automation powered by artificial intelligence. 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. As Roanna Maharaj, 2018 Champions of Business (business technology) finalist notes, “The world of online marketing is rapidly changing and is often complex.” 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, and newer platforms offer infinite possibilities to find exactly what shoppers are seeking. Analytics are increasingly being used to understand and target the individual patterns of consumers. Technological capabilities are expanding and further transforming the way we exchange goods and services.

(Content courtesy the TT Chamber of Industry and Commerce)