From conception to purchase, every step of the digital buyer journey is scrutinized and quantified. The evolution of retail IT drives every innovation — new concepts such as smart replenishment, augmented reality shopping, and algorithmic assortment planning bring more convenience and choice to the consumer.
New trends in shopping will bring new retail IT trends that will only continue to shorten the distance between the consumer and the product. Here are some of the shopping trends that retail IT service providers should know about that are set to transform retail IT as we know it.
Automatic Replenishment
Very soon, the staples of life will be on autopilot. Imagine never having to worry about running out of toilet paper. Technologies such as Amazon Dash and Alexa have already added the ability to order products using voice commands. However, in the future, commands will not even be necessary. The products will recognize automatically when they need to be refilled and do so without any queue from the consumer himself.
Augmented Reality Retail
Retail stores are shifting into a new paradigm — providing new and exciting experiences for consumers. Instead of simply looking at a static picture of clothing online, you will be able to try on an entire wardrobe of clothes and see how they would look on your body. Retailers will also gain customers by directing that experience according to a consumer's stated preferences or behavior patterns. This personalization will keep customers coming back instead of viewing augmented reality as a novelty.
New Supply Chains
One of the most important innovations in retail IT will never be seen directly by any customer. However, it’s just as important. A next-generation supply chain lowers the cost of production for companies. These companies (ideally) pass those savings along to the customer in the form of lower prices or more services. Supply chains will become much more fluid, with the ability to adapt in real-time. Automated replenishment, discussed above, will play a role in these new supply chains. When staple items are automatically replaced using a just-in-time strategy, retailers will be able to better manage inventory. There will be fewer cases of overruns and plenty of savings to be had in lower storage costs.
Algorithmic Assortment Planning
The proliferation of the drop shipping industry means that a digital retailer can hold virtually unlimited inventory. This inventory can also be curated specifically to the needs of the target market. Retailers will have a new challenge with all of this new freedom — they will have to be more selective in the inventory they choose. Artificial intelligence will play a role here. AI will have the ability to analyze the inventory of competitors, compare them to the target audience of the business and make suggestions as to the products that are most likely to appeal to them.
Brand Overlap
Brands and retailers will no longer have a wall between them. The proximity of "competing" brands is much closer online, and many brands will be partnering with each other to make more sales. Consumers will purchase from a single place, and outside parties will simply bid on the fulfillment of the orders. Retailers and brands will both compete in this bidding. Algorithms are being developed to optimize for the fastest delivery and lowest cost of fulfillment. If one retailer has the ability to fulfill another brand's order more quickly, there is no longer any stigma about joining forces.
It’s definitely a great time to be a consumer in this new digital environment — and it’s a great time for retail IT service providers, too. Stay on top of many new technologies to remain relevant in this new market, and the competition will only improve the consumer marketplace.
