Retail Technology Trends

Retail Technology Trends
www.hiddenbrains.co.uk

Digital transformation has revamped the existence of every industry
unimaginably. Technological disruption has intensified completion,
changed business models and eliminated geographical barriers. The
retail industry has witnessed unprecedented changes due to
technology evolution.
The rapid rise of e-commerce giants such as Amazon and Alibaba
and the paradigm shift in consumer preferences have compelled
traditional retailers to rethink their strategies and explore new
forms of consumer engagement. The revolution took off with the
advent of the iPhone app development and smartphones.

A major transition for established brick-and-mortar retailers is
eminent. The evolution has resulted in digital transformation from
warehouse, inventory, and logistics to supply chain management at
every business level. Retail software solutions are available for each
and every function.
Retailers are now using immersive experiences, often blurring
boundaries between online and offline worlds. The stakes are
high, and it is all about convenience, personalization and flexibility.
There is no denying that the mandate is clear to either change or
be left out in the highly competitive world.

Retail Apocalypse: Is it real?
This year alone, major global retailers such as Bon-Ton department
stores and Toys R Us permanently closed, while J.C. Penney, Sears and
Macy are announced major store closures. The growing eCommerce
industry is making it challenging for brick-and-mortar stores to stay
relevant store closures and job losses in retail continue to dominate
the news. Several reasons have contributed to the closure of retail
stores such as rising costs, technological disruption and changing
consumer behaviour. The UK high street also continues to undergo a
considerable structural change.
The retail industry is dynamically changing to emerging technologies
and trends. The key to surviving in this industry is to adapt to changing
customer preferences and demands with the help of Retail IT Solutions
and new technology in the retail industry.

UK Retail Industry Challenges
Brexit
Consumer Spending
Competition
UK High Street
Online Shopping

Retail Technologies that will
Define Future for The
Industry
From facial recognition to biometric checkout, smart sensors
tracking customer movements in the store—technology is
redefining retail software solutions and how retailers function
with optimum efficiency.

Retail Technologies that will Define
Future for The Industry
1. Rise of Mobile Applications
The usage of smartphones is increasing rapidly, which leads mobile
applications into the trend. Due to the high adoption of mobility
solutions, retail-based apps have taken over the industry. It helps
retailers increase reach, build loyalty, and improve efficiency by
providing multiple purchasing options and hassle-free services.
The primary reason that attracts retailers towards mobile application
development service is that it allows to run businesses 24*7. Apart from
this, retailers can also save infrastructure costs and offer the next
generation shopping experience to their customers.

2. Social Shopping
With social media platforms, it is easier to target the right and wider
audience. Social networking sites help spread product information more
effectively by encouraging users to like, share, and discuss in the
comment section. It is considered a powerful and effective marketing
strategy for E-commerce as social media platforms can engage users.

3. Extended Reality
Extended Reality comprises enhanced digital and physical experiences
combining augmented reality (AR), virtual reality (VR), and mixed reality
(MR). It will greatly change shopping preferences and change the
interaction between the company and its brands.
Reduce costs
Increase revenue and productivity
Improve customer experience
Benefits of Extended Reality

3. Extended Reality
How it works
Extended reality provides customers with the option to navigate
through different products and virtually try products using a mobile
application. It also gives customers the option to share their experience
with other users.
Extended reality is especially gaining traction in the new normal,
avoiding touchpoints during shopping due to COVID-19 social distancing
restrictions. It limits the need for touching items that the customer
might not end up buying.

4. Recommendation Engines
Higher cart sales and improved customer satisfaction thanks to
recommendation automation.
Providing highly contextual user experience.
Drive high conversion rate by giving personalized product
recommendations.
Recommendation engines have become a popular solution for online
retailers looking to suggest products to users. These tools filter out
information of lesser relevance to predict the likeliness of a user
purchasing an item and suggesting those products or services to the user.
This technology can play a vital role in building an omnichannel experience
for the user right from researching a product online to purchasing in store.
Recommendation engines work better based on the availability of data.

5. Order Fulfilment Automation
Order fulfilment automation integrated with your existing systems can
forecast future inventory needs, as well as enhance inventory
replenishment best practices. These innovative retail technologies are
ideal for small and mid-sized distributors, suppliers, and online retailers.
It centralizes and automates fulfilment operations, especially with orders
converging from different sales channels. Order fulfilment solutions
process orders, reducing processing time.

5. Order Fulfilment Automation
Benefits of Order Fulfillment
Real-time inventory control
Advanced purchasing based on trends
Warehouse management
Easily track an unlimited number of products
Prioritize orders based on the customer needs, inventory needed,
and seasonal peaks
Reduced fulfilment times resulting in unexpected cost savings

6. Facial Recognition
Facial recognition is fast becoming an integral part of the retail industry.
This path-breaking technology is helping retailers overcome the
problem of shrinkage, as well as personalize online shopping
experience back to the brick-and-mortar stores. Retailers can use facial
recognition to analyze the behavioural patterns of customers while
shopping at their retail stores. It allows them to understand what
customers feel and how they behave and act while in their stores.

6. Facial Recognition
Improving customer experience by providing a real-time customer
experience
Combat returns fraud based on its mode of operation
Understand your customers better
Integrate with other loyalty software, CRM and cash register for
increased sales
Know your customers better and purchasing behaviour, as well as
patterns

7. Inventory Management
Effective management of stock-flow and predictions
Improve forecasting to improve the retailer’s bottom line
Integrate sales and inventory data to decide reordering and
promotion strategy
Review data and place orders to avoid stock outages
Prioritize purchases based on an item’s profitability and popularity
Determine dead stock such as damaged items, incorrect deliveries
and unusable seasonal items.
Inventory management solutions are improving inventory control
and real-time tracking of stock, giving the retailer a holistic view of
product availability in-store.

8. Internet of Things
With over billions of connected products like home speakers, TVs,
entertainment systems and cars to the Internet, retailers can collect
voluminous data and actionable insights about customers’ product
usage and preferences. This will allow targeted marketing to
customers throughout every phase of the buyer journey. “Connected
devices will be 3x the global population by 2023″ By- Cisco
It’s clear that The Internet of Things makes shopping faster, cheaper,
and hassle-free.

9. Artificial Intelligence
AI like Siri, Cortana and Alexa are completely revamping consumers’
daily shopping experience. From manufacturing, distribution to delivery,
AI will play a crucial role in the retail world.
Artificial intelligence is all set to change the outlook of the retail industry
completely. The most likely technology to reshape the retail landscape
is artificial intelligence (AI), driven by data from customers themselves.
Analysis of “heat maps” provides details of customers’ movements in a
particular section and which items they look. This information can be
captured by LIDAR sensors. Similarly, virtual assistants and robots
inside the store help make a recommendation to customers that add
value to the customers.

10. Augmented Reality
Augmented Reality is also a potent tool that stores are increasingly
using. Augmented reality (AR) is expected to get even more
sophisticated in 2021 with Apple and Google moving AR into the iOS
and Android operating system. The adoption and implementation of AR
technology will undoubtedly witness an increase. As AR technology
matures, more retailers will explore ways to use it. For instance,
retailers have produced demos of AR in the changing room to great
effect. One of the most successful case studies of AR app development
is IKEA. The app used Apple’s ARKit to preview how different IKEA
products would look in the actual environment. It was simple, just scan
the floor using the iPhone and select the product that needed to be
placed.

11. Big Data Analytics
Big data analytics continues to mature. It is helping in strategic decision
making. Progressive retailers are exploring new ways to leverage big
data analytics to enhance different business aspects from sales,
marketing, and customer service to retail operations. Retailers have
adequate tools and data sources. It is just a matter of using big data
tools and technologies in the best possible manner. Big data analytics
can help retailers forecast demand, customize shopper experience and
streamline the supply chain.
When used effectively, big data services and technologies can create a
360-degree view of customer experience across digital and in-store
channels. Big data will only work if you are willing to make drastic and
significant changes to your business.

12. Blockchain
As retailers struggle to do more with less in a margin-squeezed
environment, the potential for Blockchain to reduce operating costs
is one of its principal attractions. Blockchain can reinvent essential
business functions, bringing trust and security in retail functions
spanning across supply chain management, accounting and audit,
and related account management processes.

Payment Trends in New Retail
Technology to Watch Out
Wallet Apps
Smartphone “wallet” apps will emerge as a new way to pay– a trend
that’s being driven by “lifestyle” apps such as Alipay and WeChat.
Biometric payments
Biometric payments (fingerprint or iris scans) will be used to
authenticate payments, replacing cash shortly. A report predicts a
trillion biometric payments will be made annually by 2022.
Wallet Apps
Smartphone “wallet” apps will emerge as a new way to pay– a trend
that’s being driven by “lifestyle” apps such as Alipay and WeChat.

Finally
Successful retailers are continuously creating unparalleled, immersive
customer-centric experiences in-store, enabling brick and mortar to
compete with the convenience and variety of online shopping.
Winning means taking the strengths of each and creating the best of
both worlds.

biz@hiddenbrains.com
www.hiddenbrains.co.uk
+44 2079932188
Contact Us

Retail Technology Trends

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