4 Technology Trends That Will Dominate the Retail Marketplace In 2020

2020-10-23 09:08:27

Digital transformation is already happening and inevitable. Digitization, implementation of new business models, and increasing automation are some of the leading causes of large-scale and sweeping transformations across all industries, and the retail business is no exception.

Mentioned below are the four key trends that will affect the entire retail value chain by the end of 2020:

Augmented Reality (AR)

Undoubtedly, 2020 will be the year when shopping experiences go simply beyond observing, feeling or testing a product or a service. Shoppers can't get enough of sustainability and personalization. Augmented reality is one such technology by which shoppers can now experience things without touching them. Recently, Toyota launched an AR program that makes it possible for users to try out a minimum of ten vehicles while never touching the keys.

Toyota is just one example to demonstrate this, while other e-commerce retailers such as Amazon, Lowe’s, and Walmart have found AR to be hugely beneficial for bringing down the number of returns from their online customers. As per new research, it has been estimated that the e-tail market will be valued at $5 billion by 2021, however, out of all the items purchased, at least 25 percent of the items are sent back.

While the use of experiential marketing is growing in the retail marketplace, AR is a technology trend that is likely going to become a prominent tool for retailers and brands alike. AR has helped retailers keep up and increase deals as users get a clear understanding of what they are purchasing while shopping.

5G Network

Although there are many new possibilities that 5G will introduce to the retail sector, including faster operational processes and in-store experience for customers, not every possibility will be brought to the marketplace. The advent of 5G in the marketplace will mean more devices getting access to the improved network and compatible accessories for those devices, resulting in increased sales all round as everything from websites to mobile apps to in-store tech devices will arise.

The number of personalized experiences with items will be increased on a considerably large scale with technologies like AI, AR, VR, digital signage, in-store interactive apps, etc. That implies you will have the option to receive information ranging from the introduction of new products in retail shops and recommendations to delivery rates and prices. It's likely that retailers will even come up with new approaches to deliver “out-of-stock” through fulfillment solutions with IoT drones.

Social Shopping

Who doesn't want a seamless shopping experience?

This is one of the reasons why visual search and social shopping have already started to gain popularity. To put it in simple words, having the option to click a picture of your favorite designer shoes, or a dress of your favorite celebrity on their Instagram post, are a couple of things that will be gaining huge momentum in 2020.

That is on the grounds that individuals can use visual search with the capabilities of AI. Pinterest and Instagram are some of the prominent social shopping players who are playing a major role in making social shopping a key trend. Both online and physical stores are using integration techniques to benefit as much as possible from these leading trends. For example, organizations like Stitch Fix have taken efforts to transform the shopping experience by teaming extensive data analytics with human curation. The retailer has disrupted the fashion retail industry by turning to social media platforms to show its fashion collection to the target customers before dispatching the requested orders. This move will provide customers with more personalized style recommendations that fit their lifestyle and budgets.

Mobile Commerce

From shopping to interactive in-store apps to websites, the ability to make product payments in stores through Google Wallet or Phone Pe is the traditional payment techniques. More and more individuals are preferring digital modes of payment, with organizations exploring different ways to make checking-out quicker and easier.

Amazon Go started testing its cashless, clerk-less stores that enable customers to take something off the shelf and get consequently charged while leaving. With this trend advancing into all physical stores, soon enough there probably won't be a need to carry cash all the time.

This year, the retail industry will see some noteworthy advances because of the increasing use of technologies such as AI, big data, and cognitive computing. These trends are altogether focused on making a shopper’s experience seamless, simpler, and increasingly consistent and allowing for brands and retailers to have more opportunities to connect with shoppers.

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