Innovation in Retail: The use of technology combined with other changes in society were naturally transforming our consumption patterns.
More than a point of differentiation, technology has kept businesses running. With that, innovations were radically accelerated, and much is said about the impacts on consumption habits that these changes will leave.
In this article, we discussed the main market trends, how they work, and the effects of the coronavirus on them. Check out!
What Is The Importance Of Investing In Retail Innovation?
Innovating is a necessity! Now, many purchases are made using smartphones, several stores have implemented self-checkouts to replace traditional check-in boxes, and the presentation of products to shoppers is no longer limited to well-lit shelves. To convert sales, it is necessary to go beyond the conventional, capture the customer’s desire and offer interactive experiences.
For these and other reasons, companies working on these points are closer to ensuring future prosperity. According to information released by Bain & Company, a reference organization in consumer goods consulting, the prospects are positive! The market value of enterprises that bet on innovative strategies has grown significantly.
In addition to the current moment, retail invests more in innovation for other reasons. Follow:
- increased agility in operations;
- quality and practicality in customer service;
- optimization of operational processes;
- expansion of interactivity with the consumer;
- improvement in the presentation of products and services;
- reduced investment in human capital;
- targeted marketing;
- positive competitiveness;
- high sales conversion.
What Are The Trends For Innovating In Retail?
Retail innovation can be accomplished in multiple ways. Commonly, they differ in terms of objectives, technologies used, and investment values, for example. See what the leading market trends are!
The more efficient and consistent the company’s presence, the better! Omnichannel (multichannel) strategies aim to overcome retail challenges, improve user experiences, qualify the relationship with the public, improve the shopping journey, and establish multiple interaction points between the brand and people.
It offers the customer a fluid experience between the physical and virtual stores. This brings the customer closer to the brand and increases digital and physical sales. Consumers can purchase, request invoices or contact the company using computers, tablets, and smartphones. A good example is using social networks (Facebook, Instagram, Twitter) for customer service.
All company operations are based on numbers, formulas, and other commands, correct? One way to drive retail innovation is to use artificial intelligence (AI) to read, filter, analyze, and process data. In this way, they can be converted into useful information for business development.
The idea is to close bottlenecks and make processes efficient and automated. Examples abound. Nowadays, AI can be used in inventory control, predicting demand, reducing stock outs, and identifying the ideal volume of goods. With all this, artificial intelligence is a digital transformation in retail of great relevance.
Do you know those projections in the environment that were used a lot in science fiction movies and crime series? They are already in retail. Augmented reality (AR) combines virtual and real-world elements to provide people with information about products and services.
It works through devices (smartphones and tablets, for example) integrated with software that reads codes or images. Once read, the programmed information is projected onto the physical environment in an integrated manner.
With augmented reality, it is possible to create interactive and exclusive content and virtually demonstrate e-commerce products at your customer’s home, in addition to other applications such as scannable labels and packaging, the virtual showcase, and the interactive mirror. However, it is worth remembering that augmented reality differs from virtual reality. The first expands the world we know in real-time. The second creates simulations and new situations using only virtual components.
To attract, conquer and retain the public, it is essential to create differentials. For this reason, the personalized experience is among the leading innovations in retail, as all its strategies start to focus on people and no longer on products. The idea is to attract attention and create links and increasingly creative situations of exclusivity, even online, where competition is much greater in this regard.
For this, the establishment must know the target audience’s profile and collect the data essential for formulating new strategies. Activities such as sending personalized messages (email and WhatsApp), new formatting for displaying products, promotions, individualized disclosures, and customized consultations are already part of some stores.
Another way to promote personalization is to insert the company into the community. That is, your establishment must be more than an address. According to Google searches, 40% of consumers say they made more purchases at local businesses during social isolation. Take advantage of this so that your business becomes a reference and increasingly part of the daily lives of people who visit your region.
Management System (ERP)
Indeed, retail innovation is synonymous with an excellent integrated business management system (Enterprise Resource Planning – ERP). Investing in this type of software breaks the paradigm of fragmentation of business sectors; that is, all information starts to work in a centralized and integrated way, which helps in optimizing processes, reducing rework, and favoring data-based decision-making. Reliable (reports, performance indicators, balance sheets, etc.).
Note some of the main advantages:
- efficient stock control;
- instant and easy access to information;
- monitoring and control of budgets, profits, and expenses;
- efficient tax control;
- elimination of the use of multiple tools or manual controls;
- reduction in the time of management processes;
- speed of response to the market;
- proper use of working capital.
These are some of the leading market trends. By accompanying them, you will considerably increase the performance of your business, and your brand will consolidate itself as a reference for the public. Innovative strategies, technologies, and ideas can be implemented in stages or simultaneously, although many were executed quickly during the pandemic.