Technology is redefining the way retail function. Both internally as well as externally for the customer facing narrative, technology is the highlight that is pushing growth for retailers across offline and online. 

But, Tech implementations are always followed with questions on ROI and other such result-oriented discussions. But today along with the questions on return, a new thought has been outlined and that is the idea of conveniently reaching out to the new-age customer. This layer of convenience redefines the tech approaches, but how are the leading tech minds in the industry addressing this? While we discuss the idea of tech and how it is driving the right conversation with customers at the Middle East Retail Forum on 10th of October 2023 at the Address Dubai Marina, let’s discuss 3 most interesting ways in which technology is creating the right backbone for growth for retail. 

Building the backbone of AI
Artificial intelligence has been a strong support for retail since a long time. In fact, retail started to adopt to the AI practices even before other industries could. This has taken a leap forward with time and now more and more unique implementations and AI tools are getting moulded into the functions of retail across processes. The most popular use of AI by a retailer is the recommendation engine, which has begun helping the industry predict user needs and recommend them the right products, accordingly. The ML algorithm recommends related products to customers based on their previous shopping history, location, and purchase habits of other similar customers. Going forward, retailers need to double down on AI and related technologies to grab the right eyeballs and catch customer attention across touchpoints. 

Using tech to automate the processes
Retailers are betting big on automation and amping up their investment in tools that helps technologically drive the processes across all arenas of retail. Automation is ruling out the idea of repetitive tasks. Today retailers are using technologies to reduce human intervention and in turn making processes more agile. Automation in every area within the retail sector, from warehousing, inventory management, and order fulfillment to consumer-facing features like contactless payments can uplift the way retail functions. According to a report by McKinsey, 52% of all retail activities can be automated with existing technology. It reduces human errors, improves quality and speed of service, boosts employee productivity, and saves money. Automation can generate 300 to 500 basis points of incremental margin, a godsend for retailers facing margin pressures. This makes automation not a choice but a requirement in the hypercompetitive retail environment.

RFID & smart store technologies
Adopting smart store technologies is dominant for brick-and-mortar retailers looking to enhance their omnichannel experience. Most brands and retailers today employ tools to manage inventory, including radio-frequency identification (RFID) and QR codes. According to research more than 70% of Gen Z and millennials are willing to shop or spend more with retailers offering contactless checkout. So, it is time to add more agility and implement self-checkout solutions like mobile-POS (mPOS). These deliver a seamless experience across all customer touchpoints, whether online, in-store, mobile, or social media.  

Technology inclusion in retail processes optimizes the way of working and the pathway is endless and only gets interesting at every turn. Hear the tech leaders share more insights on this at the Middle East Retail Forum on 10th of October 2023 at the Address Dubai Marina.

Purpose-driven retail is a buzzword today and has been interpreted and considered in varied ways. However, being purposeful in retail does not only mean conscious consumerism. The idea of purpose-driven retail way beyond the aspects of consumerism and can reflect on strategies and plans too. 

Let me talk about being purposeful, responsible, and mindful for retail in detail. But before that I would want to mention that we at IMAGES hold the idea of being purpose-driven very close to our soul and it is one of our biggest pillars that we believe in, practice and nurture. 

That’s why on 10th of October at the Middle East Retail Forum, one of our key sessions on the agenda is Creating responsible formats & businesses. While you gear up to join us and the panellists discuss this more in-depth at the Address Marina, Dubai let me help you with some thought starters.

Let me keep it simple, and I will give you a low down of 5 points that will help you roll out the agenda of responsible retailing right into your business strategies and initiatives. 

1. Cut down on paper usage
As simple and silly it may sound but paper trails are the main culprit when it comes to pollution. In fact, research shows that 250 million gallons of oil, 10 million trees, and 1 billion gallons of water are used to create receipts just in the U.S. each year. So, as a responsible retailer think about mother nature and say no to printed receipts and other such numerous paper trails.

2. Inspire and be transparent with customers
Sustainability is of growing importance to consumers, so be sure to share your mission and work with your customers. For customers to join you on your sustainability plan, you need to involve them and letting them know what you are planning and giving them the right plan of action to get motivated and join you in your endeavour, you need to market your responsible streak the right way. Be vocal about it and get the right visibility.

3. Curate sustainable brands 
If you stock various brands in your retail store, then it is better to keep your sustainability agenda high on your radar and handpick the right products from sustainable brands to make your offerings more environment-friendly, conscious and responsible. Alongside choosing the right brand mix, it is also important to see how you want to send the packages to your customers. Whether an online order or an in-store purchase, you should always look at sustainable packaging to drive the point home for your customers and establish your supremacy as a responsible company.

4. Switch to refurbished furniture and shop fittings
To stay put on your sustainability agenda it is important to practice what you preach. That’s why it is important to cut down on unnecessary purchases. Rather than buying all new product displays and furniture, consider buying second hand, vintage, or fixtures made from recycled materials. 

5. Plan a second-hand retail format to increase brand value

Second-hand, resale, or vintage products hits the right chord with conscious consumers. This is because consumers feel that buying pre-used clothing means the environmental impact of the purchase is lower, and second-hand clothing is generally more affordable. As a retailer with a conscious inkling you can think of ways in which you can make second hand clothing available to your customer base, to further build your reputation. 

According to recent research by Shopify, 42% of consumers said knowing that a brand is actively working on reducing its carbon footprint is important when deciding to purchase a product. So, keeping your customers and their knack for conscious consumerism in mind, it is important for you to do whatever you can do to reduce, reuse, refurbish, repair, and recycle to contribute to sustainability in retail.

Social Media I E-commerce

According to reports, about 98% of customers today choose the convenience of social media when shopping. The idea is to shop in a click while browsing your favourite content and never losing touch with #What’sTrending.

Socially conscious consumers seek value and with social commerce they look to find the best hybrid of e-commerce and social media. For social media, retailers use a host of active posts and video content to hook their target audience linked to their social media profiles or followers’ feeds. Social media platforms today include tools like shoppable posts and on-site storefronts to help customers shop with ease and get more insights into the brand and its products. These features allow users to discover new products, learn about new brands, and make purchases without leaving their social feed.

But social commerce is profitable, and brands can benefit from it by amping up their presence. As per Statista, social commerce generated $475 billion in sales in 2020 and will generate $3.37 trillion by 2028, growing at a 28.4% annual pace. 

Why social shopping stands out?

Social shopping opens a vast list of touchpoints for the customers. On their retail journey the social path allows users to browse and explore products and engage with brands. Social shopping helps people to buy what they see on their feeds. This ensures captive engagement. It also provides user-generated social footprint. This turns it from transactional eCommerce into bond-building social commerce between two primary players: shoppers and brands.

Unlike offline retail, the engagement of customers with brands is very high on social media. They can spend hours searching for the brands of their choice, engaging with their content, learning more about their business through their posts and may interact with businesses, creators, and other customers via one-on-one chats, product demos, expert-generated content, public groups, and private communities. 

But being available on social media platforms, brands, must be conscious of their presence. They need to curate authentic social content to engage customers and prospects. They must study the trend, understand and act according to it. This is because the attention span for customers is very less when browsing online. So, they need to capture the audience on the go and make them stay hooked through the right content approaches.

Social commerce also gives rise to an impersonal space that is complete with static product images clubbed with scrollable videos, how-to content, consumer and brand expert insights, and other interactive elements. So, it is important to use the right technologies to stay trendy and right!

AI Tools For Change

Artificial intelligence and its advent into the business landscape has helped shape varied aspects of business and under its influence several key functions have grown and become streamlined. The AI buzz is growing, and it is taking over every aspect of business including retail. Let’s try to decode the potential of AI in retail.

AI solving cybersecurity problems

Cybersecurity is the need of the hour for online businesses, and it is important for e-commerce companies to tighten their security measures so that the personal information of shoppers can be managed effectively. AI algorithms helps build-in latest security measures. And these advanced algorithms help break down high amounts of data into smaller chunks. This ensures maximum safety from both malicious attacks and data breaches.

AI helps with product recommendations

Understanding the customer shopping patterns and then predicting products as per their needs helps with customer retention. AI tools in this regard help with data analysis and works towards decoding customer purchasing habits. Retailers can use the AI engine to drive the right recommendations and thus, offer personalised product suggestions. Moreover, the AI predictions and data from shopping behaviour can be saved, analysed and used to predict the right approaches in future also. 

Building prompt responses with AI

Artificial intelligence and machine learning can help train chatbots and therefore retailers can use it to have personalized conversations with customers. The chatbots offer 24/7 customer assistance and guide customers through their shopping needs virtually, all through the day. The good part about this is that customers no longer need to wait for responses. But actually, get quick results, which are satisfactory as if they were talking to real people. The automation garnered by AI makes the process streamlined and does not need employees to manually respond to requests. 

AI for predicting sales

Business predictions is helpful in deciding the outlook for business and it helps the company analyse and plan the growth path. When we appoint the right AI tools to run these predictions, then the outcome is streamlines and the result helps with better company decisions. Predictive analysis of sales records always helps in keeping abreast with the market changes and the right forecasting allows one to stay ready for the trends and future demands. 

Ease of payment

According to a report by the National Retail Federation, cashless payments have become more prevalent in the United States. With 67% of consumers preferring cards or mobile payment options. AI is ruling the aisle when it comes to automating purchases and it is helping tighten the approach. Going contactless is the trend to follow and artificial intelligence tools helps set the trend right by makes the framework technology-driven and agile.

AI is powering it all and making shopping faster and easy as a breeze. It is helping derive a consumer-friendly approach and thus, AI-driven trend in retail will continue into 2024 and beyond making it an indispensable truth.

Retail I Future outlook

Retail is undergoing a big change riding on evolving customer needs. Moreover, since the pandemic, the industry has evolved keeping pace with the growing customer demands. But at this juncture it is important to identify the critical trends of shopping and therefore understand how the retailers can navigate uncertainty and build their base in the next three to five years.

Seamless shopping across platforms

The concept of shopping is no more divided by platforms, rather it is connected and Google in one of its recent reports mentioned that omnichannel shopping behaviour will continue to evolve as it shifts from a discrete task, in which people look for a specific item on a particular channel in a defined period, to an ambient experience. People will discover new products and services while scrolling through social feeds, watching streaming videos, and playing video games. 

Younger shoppers will dominate the shopping curve

The shopping revolution is now led by the youth, and they are 2X to 3X as likely to shop using emerging media. As per the Google trend report experiences powered by augmented reality and virtual reality, along with shoppable videos, will become more prominent as consumers’ appetite for tech-enabled shopping experiences grows.

Partnerships and collaboration will rule the aisle

Now is the time for marketers to rely more on AI to stay agile and adapt quickly so that they can activate the customer with ease. Aside of brand loyalty and collaboration programs now is the time to tweak all marketing campaigns with personal insights. Today, more than 70% shoppers expect brands to understand their unique needs and expectations. 

Last mile is going to be a gamechanger

As per Allied Market Research, the global autonomous last-mile delivery market is projected to reach $90 billion by 2030. At the same time, online marketplaces will account for 45% to 50% of online spend by 2025. These numbers emphasise the need for retailers to find the right partner so that they can provide customers with better shopping experiences.

Conscious consumers will drive sales

Shoppers today have become more intentional about value. Consequently, they are placing more importance on a retailer’s overall brand value proposition than on spending less money. In fact, recent Google research has shown communicating the benefits of buying from a particular retailer, such as fast delivery and free returns, can have roughly the same power as a product discount.

Alongside all these trends, the idea of privacy and data security will also emerge as a big trend. According to Kantar’s Global Monitor, 79% of global consumers say they are concerned about data protection and privacy on the internet, and 72% believe they are very or somewhat at risk from people or companies misusing their personal data. So, right now it is a big task for brands and retailers to understand the importance and therefore plan their approaches to keep it consumer centric.