Top 5 Retail Tech Trends for 2023

The economic outlook for many parts of the world looks set to be a bumpy road over the next year, and retail has traditionally been one of the first industries to feel bumps in the road. This could create additional headaches for brick-and-mortar retailers who are still recovering from the disruption caused by the covid-19 pandemic. But it’s also a challenge for online retailers to continue to innovate and keep the disposable income of their limited customers flowing in their direction.

Rising inflation is pushing up the prices of commodities such as food and clothing, as well as luxury goods sold by multinational conglomerates. At the same time, supply chain disruptions are hurting operations, as inventories are running low and some retailers are pushing prices even higher.

answer? Harness the power and potential of technology to give your customers new and exciting ways to browse, buy and save. Both online and offline, retailers are turning to technology in many innovative ways. So here’s a rundown of the trends to watch in 2023.

Hybrid and omnichannel customer journeys

Online shopping is very convenient because you can do it anytime, anywhere and have access to almost everything without leaving your home. Retailers can also learn a lot about us by tracking customer behavior and combining it with data from other online sources.

At the same time, offline shopping means that you can get what you need instantly (if the store is open) and you can see, feel, and even taste and smell the product before you buy it. It gives you the tactile experience of being able to.

Hybrid shopping is about combining the best of both online and offline worlds to create a customer journey that meets all the criteria.

For offline shopping, this means understanding who you are and what you want when you walk into a store. This is what e-tailers do when they visit their website. In the world of online retail, that means developing ways to offer the same experiential shopping experience that you enjoy in the real world. This is due to innovative technologies that enable personalization or virtual and augmented reality solutions (more on all of this below).

Offline outlets can take advantage of innovations made by online retailers in logistics and inventory management to offer flexible payment methods, delivery options, and loyalty programs (such as Amazon’s Style store). At the same time, online retailers can learn about building personal relationships with customers and delivering an immersive shopping experience from brick-and-mortar retailers. In 2023, embracing this hybrid mindset will be a key strategy for retailers looking to continue building brand awareness and customer loyalty.

Conscious consumers continue to define retail habits

To succeed in retail in 2013, businesses must continue to adapt to the fact that ethical, environmental and sustainability issues are increasingly at the heart of consumer purchasing decisions.

Two out of three of us consider ourselves to be “principal buyers” and believe that the products and services we purchase are strongly environmental, social and governance (ESG) We really want to know that it is made in an environmentally friendly way by. ) principle. Organizations that have successfully adapted to this trend will find themselves developing more efficient operations and processes, while quickly building stronger bonds of trust and loyalty with their customers, rather than industry roadblocks and hindrances. prize. This can be achieved by reducing waste associated with excess packaging and reducing overall energy consumption. South Korean retailer Coupang is a prime example of a company that has eliminated packaging from 75% of his deliveries, resulting in increased brand loyalty and reduced logistics costs.

As more and more people realize the increasing severity of the threats facing our environment and the planet, companies are finding new solutions to these problems and working in transparent and accountable ways. The technology that allows us to do just that will be a major retail industry trend throughout 2023.

Personalization across the customer journey

Stitch Fix is ​​a California-based fashion retailer that uses algorithms and online surveys to select clothes that theoretically match a customer’s taste and size exactly. Global sportswear giant Nike also launched the Nike By You service, allowing anyone to create a fully customized sneaker that perfectly matches their tastes. These are both examples of lifestyle-oriented brands seeking to capitalize on the growing demand for personalized and unique products that somehow reflect our personalities and individual sense of style.

This trend is not just limited to fashion and footwear products. Consumers have been shown to respond well to personalization throughout their customer journey, from sales and marketing where email and e-commerce portals offer personalized recommendations, to upselling and after-sales support. . Companies that can successfully navigate this trend in 2023 will understand how to use the myriad of data points available today to create products and services that look “special” or are uniquely tailored to the individual. I will. They create personalized touchpoints throughout the customer journey, making customers feel not only made for people like themselves, but uniquely related to themselves as individuals. Applying technologies that enable “personalization at scale” is key to capitalizing on this trend.

AR, VR, Metaverse Drive Immersive, Experiential Shopping

According to recent research, today’s consumers crave a superior customer experience above all else. This means that excellent service is delivered in a hassle-free, efficient, consistent and memorable manner. This is why the Metaverse concept, an immersive, experiential digital environment where users can work, play, and shop on her one permanent platform, is highly anticipated. No one knows exactly what the metaverse will ultimately look like, but retailers are already enthusiastic about it as a new and exciting channel through which they can connect with their customers and do business. Adidas, Nike, Tommy Hilfiger, Samsung, and Burberry are among the big name names that have already established a presence or have indicated plans to do so.

VR is a big part of the metaverse, offering the most immersive ways consumers can connect to these worlds today. That and related technologies of AR (both relying on head-mounted displays) are also making inroads into retailers through innovations such as the virtual dressing room trend, which he also plans to become more prevalent in 2023. Retailers like Hugo Boss, Walmart, and Amazon allow customers to virtually try on clothing using digital representations of themselves. The trend builds on the previous use of AR by companies like IKEA and Home Depot to let you see what the furniture they sell would look like in your own home. As customers demand more immersive and fun ways to shop and spend money, we expect more companies to adopt and innovate on these technologies in 2023.

Cashless, contactless, autonomous shopping and delivery

This trend, which also involves the convergence of hybrid and omnichannel innovation, focuses on the all-important “last mile” of the retail experience. Consumers want more streamlines and efficiencies in how they pay for goods and services, and how they get to us. Convenience trends such as buy online, pick up in store (BOPIS), buy online, return in store (BORIS), and buy online, pick up in store (BOPAC) are fast becoming the norm It looks like Artificial intelligence and advanced analytics make this possible by automating the complex inventory management processes required. It is also essential for new automated shipping methods that retailers are increasingly trying, piloting and deploying in real-world deployments.

Starship, for example, has experienced unprecedented demand for its delivery robots since the pandemic and has now completed over 100,000 automated deliveries across the UK, US and Europe. Chinese retailer JD.com operates autonomous delivery vehicles, and Amazon’s Scout delivery robots are becoming a common sight in US cities, including Irvine, California. Atlanta, Georgia and Franklin, Tennessee. In addition to increasing efficiency by reducing the need to rely on costly manual couriers for last-mile fulfillment, automating this step in the process helps businesses reduce their carbon footprint. Vehicles are usually electric and solar. But managing this switch in an ethical manner, given the impact it will have on the lives of thousands of delivery drivers, is a challenge facing retailers in the coming year.

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