The Transformation of Retail Industry During 2020
There is no doubt that 2020 has been a challenging year. Due to the COVID-19 pandemic that stayed with us for most of the year, many sectors have suffered a great loss. It is worth mentioning that one of the industries that have suffered most from the pandemic’s effect is the retail industry.
The COVID-19 pandemic led to the shutting down of businesses and most parts of the economy, making consumers result in purchasing items online against traditional in-store shopping.
Although the lockdown imposed due to pandemic has been relaxed in most countries, the retail industry is yet to recover from the lockdown effects. While some retailers have been able to recover significantly, others are still struggling to get back to business as usual.
Interestingly, the COVID-19 pandemic has led to the transformation of the retail industry. Retailers are now forced to adjust to new trends to remain in the retail business.
One of the major transformations the retail industry is going through in 2020 is the technological and digital trend. Online shopping is now beginning to dominate the retail I industry as consumers become more comfortable and confident purchasing items online.
That said, this digital transformation has now created retailers’ need to more than ever before, providing a seamless shopping experience for their customers.
Other transformation trends of the retail industry in 2020 include:
Although the retail industry is experiencing a rise in the demand for online operations, retailers still need to focus on having both online and offline operations.
While some consumers are becoming comfortable with making online purchases, others still prefer traditional in-store purchases. As a result, retailers must maintain an active presence across various channels if they want to remain in the retail business.
Digital Technology Integration
Another retail industry trend for 2020 is the integrated digital technology in the everyday business of retailers. Retailers will need to adapt to new technology and invest more in digital infrastructure to perform better than their competitors.
The new digital technologies will give rise to the use of virtual screens in offline stores, making it convenient for customers to shop online and provide for a seamless offline shopping experience.
Use of Social Commerce
As more businesses go online, retailers need to create more awareness for their products to make them more noticeable. Retailers will need to make use of various social commerce platforms to increase their brand awareness.
Even more, these social commerce platforms will help facilitate improved customer engagement through the sharing of pictures and videos directly with potential customers. Customers can also share recommendations and reviews.
Improved Data Collection and Analysis
With the increase in big data availability, retailers are now beginning to identify demands, buying trends, and patterns. It is worth mentioning that big data plays a vital role in the offline and online retail industry.
Besides, these data can help retailers to serve their customers better hence increase profit.
Improved In-Store User Experience
Unlike previously, where the retail industry was all about selling products and services, the sector has now transformed with customers needing a blending of technology, which will allow them to better interact with the brand.
Customers want to experience technology-driven features not only online but also in stores.
As the world continues to experience various forms of transformation, the retail sector is also not left behind. The retail industry has gone through various forms of transformation, such as digital technology integration, social commerce platforms, and many others. This transformation is expected to give direction to the retail industry for 2020 and beyond.