Tech-Centric Ventures: Retailers' Quest for Innovative Concepts

The evolving retail landscape is marked by a fundamental shift in consumer behavior, with shopping becoming a flexible, multi-platform experience accessible anytime, anywhere. According to Euromonitor International’s Voice of the Industry: Retail Survey conducted in July 2023, 74% of industry professionals recognize this transformation. As a result, there has been a significant uptick in investments aimed at enhancing digital customer experiences, while simultaneously improving the in-store shopping journey.

Euromonitor International's Retail system monitors emerging trends and innovations across global channels. In the current landscape, five key themes dominate new concepts, with technology playing a pivotal role in three of them. These themes include:

Exploring the Latest in Digital Interfaces

Retailers and brands are adopting innovative digital platforms like social commerce, livestreaming, AR/VR, and the metaverse to connect with online consumers. These technologies enrich the online shopping experience and provide new avenues for transactions, appealing to the preferences of younger demographics like Generation Z.

Retailers are actively investigating different strategies within digital interfaces.

One in three retail industry professionals indicated that their businesses enable consumers to make purchases through social media transactions

^{Source: Euromonitor International’s Voice of the Industry: Retail Survey (fielded July 2023)}

In the upcoming investments, there will be a focus on integrating new transactional functionalities into social media, improving online consultations, and further harnessing the power of livestreaming. These initiatives underscore retailers' acknowledgment of the significance of engaging with consumers through interactive experiences. For instance, Amazon launched "Consult-a-Friend" in October 2023, allowing users to solicit feedback on potential purchases from friends and family via their preferred social messaging app. In response to the increasing popularity of social media, TikTok introduced TikTok Shop in Vietnam in April 2023, providing a platform for retailers, brands, and content creators to showcase products. Consumers have the option to directly purchase featured items from livestreamed videos on TikTok. Major brands like Samsung and Unilever have shown interest in this emerging platform.

Streamlined Retail: Embracing Simplified Shopping Experiences

57% of retail industry professionals indicated that improving the customer experience is a strategic priority over the next 12 months

^{Source: Euromonitor International’s Voice of the Industry: Retail Survey (fielded July 2023)}

Retailers are prioritizing enhancing product visibility and assortment, whether in physical stores or on digital platforms, recognizing the significance of aiding consumers in navigating the vast array of choices available online. Technology, notably artificial intelligence (AI), is instrumental in simplifying the shopping journey by facilitating rapid product discovery, ensuring up-to-date pricing, and delivering personalized promotions such as coupons and loyalty rewards. Tailoring product offerings to individual preferences, including past purchases and user profiles, is increasingly crucial. Retail giants like Walmart are leading this charge, harnessing AI-driven solutions to assist shoppers in locating specific items and automating the replenishment of previously purchased products.

Technological innovations are also catering to diverse consumer needs. In March 2023, the tech startup Inklusiv unveiled an app designed to support people with disabilities in shopping at Danish businesses. The app features a searchable database of accessibility features, business location maps, and customer reviews, offering users the option to schedule customized assisted shopping trips.

‍Transforming Retail: Harnessing the Power of Data-Driven Strategies"

Retailers and brands are leveraging the power of data, advanced algorithms, and artificial intelligence (AI) to streamline both back-end operations and the customer experience. This encompasses enhancements in inventory management, supply chains, pricing strategies, marketing efforts, and beyond.

The integration of AI technology enables retailers to optimize various aspects of their operations while also delivering personalized experiences to consumers.

43% of retail professionals recognised AI as the most influential technology in retail in 2023

^{Source: Euromonitor International’s Voice of the Industry: Retail Survey (fielded July 2023)}

Thus, leveraging data has become indispensable for decision-making in the retail sector. AI-driven tools like machine learning algorithms are enhancing supply chain management and price optimization. Innovations such as ChatGPT and other AI technologies are driving advancements in online shopping experiences. With personalization becoming more seamless and less intrusive, an increasing number of consumers are willing to share their personal data in exchange for tailored deals. Euromonitor International’s Voice of the Consumer: Lifestyles Survey indicates that the percentage of consumers open to sharing data for personalized marketing rose from 37% in 2020 to 42% by 2024, reflecting a growing acceptance of personalized marketing tactics.

In 2023, data-driven innovations reshaped the retail landscape, impacting both front-end and back-end operations. For example, Mexican conglomerate FEMSA’s retail arm, Oxxo, collaborated with Finnish tech company Relex to optimize its supply chain and retail planning across 22,000 convenience stores. By employing machine learning and AI, this software enhances operational predictions, streamlines the supply chain, and implements customer-centric strategies. Similarly, Alibaba’s Tmall introduced Wenwen, an AI-powered feature aiding merchants with copywriting, images, and customer service during the Chinese 11.11 shopping event. By November 2023, Wenwen had amassed over five million users and facilitated 1.5 billion interactions, assisting consumers in securing discounts for optimal deals.

Anticipating Future Trends and Opportunities

Over the next five years, retail industry professionals are predominantly concentrating on growth and expansion. Euromonitor International’s Voice of the Industry: Retail Survey, conducted in July 2023, reveals that 45% of professionals plan to prioritize investment in new technologies during this period. Given the significant impact of technology on retail in recent times, ongoing innovation in this domain is anticipated to define the industry's trajectory going forward.

Source: Euromonitor

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