“Change” is the name of today’s retail game – whether it's old-school stores going digital, a growing interest in eco-friendly approaches, or the rise of AI.
Here at Bee IT, we're excited about our in-depth knowledge of various retail sectors, playing a significant role in boosting their online strategies and eCommerce solutions. As we also celebrate another year, let's explore the major retail trends set to influence 2024, helping businesses stay ahead of the curve.
The distinction between online and offline retail spaces is being slowly erased
Offline vs. online is a long-term battle - ever since the online lifestyle came into being.
Retailers presently have the market battle through the excellence of their customer service, actively crafting distinctive experiences that set them apart, both online and offline, and the year 2024 holds the prospect of even greater integration between these two domains.
While retailers are having debates between bricks and clicks customers are getting used to the flexibility of shopping anytime and anywhere. All the happenings in the past few years brought us to the situation where retailers must fight for customers' attention and adapt their business model to the 2 main questions:
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What is offered?
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How is it sold?
The critical aspect of your retail system lies in enabling seamless interaction between online and in-store selling. In these extraordinary times, retailers must embrace agility and swift adaptation to thrive and compete successfully.
It's all about giving customers the choice to interact with your brand in the way they prefer; do they want to buy online, in store or mix it up and buy online and pick up in store etc.
Omnichannel is a great example of a big contribution to blurring the lines between the online and offline spaces. Retailers use technology to integrate inventory management, order fulfillment and customer data across channels, providing a cohesive and personalized experience for customers regardless of how and where they choose to engage. If you go to any retail technology conferences, you'll see companies fighting over new products, both software and hardware that are designed to make the shopping experience easier.
However, for numerous retailers, the online customer experience often diverges significantly from the in-store counterpart. Establishing a consistent customer journey across every touchpoint is crucial for crafting an amazing experience.
Also, 2024 will bring retailers the need for trained employees who seamlessly transition between in-store roles and online platforms. A holistic work environment that encourages innovation became a priority.
Sustainability remains on the top of the critical factors for success
Companies that have proactively integrated sustainable and ethical practices into their operations experience benefits such as improved brand reputation, increased customer loyalty and improved financial performance.
Sustainability is a trend that has been active for years, but it is believed that the year 2024 will bring significant changes meaning that more and more retailers will align their operations with ESG principles. This includes reducing waste, minimizing energy consumption, and utilizing renewable resources. Hopefully, the plastic bags will finally become our past.
It is expected of future retail models, especially those used by large companies, to combine mainline, outlet, and resale models.
Internally, fostering a sustainable corporate culture has proven to be a critical factor in attracting and retaining top talent, as well. The modern workforce is usually driven by a sense of purpose and values, so companies that prioritize sustainability in their operations are definitely more likely to engage employees who find meaning in their work, leading to increased productivity in the long run. Additionally, a commitment to social responsibility can enhance employee morale and contribute to a positive workplace culture.
If we observe from a regulatory perspective, governments and international bodies are imposing stricter environmental standards and requirements. Non-compliance with sustainability regulations can lead to legal repercussions, fines, and damage to a company's reputation.
Greater use of AI
Big data empowers retailers to acquire invaluable insights into preferences, purchasing patterns, and potential areas for improvement. Since AI-driven customer engagement tools are created to provide all those benefits - retailers will heavily rely on it.
Every retailers’ move goes towards enhancing the customer journey, from chatbots delivering instant responses to AI algorithms providing personalized product recommendations. Customer behavioral analysis is emerging as a cornerstone for the development of effective business strategies.
Some of the best applications of AI in retail are:
1. Demand forecasting
For example, Nike made an acquisition back in 2019 by bringing an AI start-up called Celect into its fold. This move aimed to enhance Nike's capability to comprehend real-time consumer demand, ensuring optimal inventory placement to meet customer needs. If you think about it deeper, it also minimizes costs and improves business efficiency in general.
2. Recommendations
For example, when you buy something online, the majority of the websites will suggest other things to buy. It is based on your past order history, user profile, and other details that AI algorithms process to give you personalized experience. AI uses a wealth of information and what is the better use case then enhancing the overall shopping experience by creating recommendations?
3. Just walk out
For example, Amazon made a step further with Amazon Go stores. If you haven’t been in one, you definitely should. It is a store without cash registers, lined with cameras on the ceiling that track what customers are taking off the shelf, and charge you when you exit the store. Amazon has revealed that the concept is based on a combination of machine learning, sensors and artificial intelligence.
Key takeaways
Due to all the latest happenings, the conclusion is that retailers must adapt to the latest demands to stay competitive in an environment defined by the exponential growth of eCommerce, Big Data, AI, omnichannel retailing, sustainability, and other critical factors shaping our future. In this fast-paced business environment, the key is to react fast by fostering and satisfying customers' demand.
In short terms - that’s it for now!
I hope this blog was useful and interesting for you! In the meantime - let me know if you have some questions about the topic or proposals for another one!