{"id":251818,"date":"2021-05-05T17:20:04","date_gmt":"2021-05-05T15:20:04","guid":{"rendered":"https:\/\/www.testbirds.com\/?p=251818"},"modified":"2021-12-07T12:43:55","modified_gmt":"2021-12-07T12:43:55","slug":"smart-retail-when-real-world-shopping-meets-digital","status":"publish","type":"post","link":"https:\/\/www.testbirds.com\/en\/blog\/smart-retail-when-real-world-shopping-meets-digital\/","title":{"rendered":"Smart Retail – When Real-World Shopping Meets Digital"},"content":{"rendered":"
Retail has faced unprecedented challenges this past year (and counting).\u00a0<\/strong><\/p>\n International lockdowns, coupled with on-and-off regional disruptions, have kept employees from working, interrupted the flow of goods, and importantly, kept customers from visiting businesses to buy said goods.<\/span>\u00a0<\/span><\/p>\n There\u2019s no doubt this lack of physical shopping has been hardest for most retailers. While all have struggled to varying degrees, some have seen actual growth in other areas of their business \u2013 particularly online.<\/span>\u00a0<\/span><\/p>\n Driven by the huge increase in online ordering<\/strong>, UK supermarkets have finally seen their <\/span>online grocery become \u2018consistently profitable\u2019<\/span><\/a>. The French luxury goods group Kering (whose brands include Gucci), saw their online business account for 14% of total sales<\/span>\u00b9.<\/span>\u00a0<\/span><\/p>\n Meanwhile, huge traditional retailers such as Target and Walmart<\/span>\u00b2 saw huge increases in online sales during 2020.<\/span>\u00a0<\/span><\/p>\n For any retailer that could successfully use technology to improve remote access to their services, the pandemic has proved to be very profitable. Especially as consumers needed new ways to do things \u2013 from working out to socializing. HelloFresh, a meal delivery service, ended 2020 with total sales up 107 percent<\/span>\u00b3. Tonal, a remote training system, says its unit sales increased by a monstrous 800 percent<\/span>\u2074. Peloton sales doubled<\/span>\u2075<\/span>.<\/span>\u00a0<\/span><\/p>\n There is no doubt that for some the pandemic boosted their existing services (it\u2019s no surprise online ordering of food or workout systems increased) but their infrastructures were ready for it<\/strong>. Others were able to quickly make use of systems that were underused.<\/span>\u00a0<\/span><\/p>\n The question is, as the pandemic subsides, can retailers retain the gains they\u2019ve made? Sure, a restaurant can boost sales by offering additional \u2018drive-thru\u2019 lanes<\/span>\u2076<\/span> today, but once lockdown ends, what can keep people coming?<\/span>\u00a0<\/span><\/p>\n This is especially important for traditional retailers offering \u2018on-the-side\u2019 online services. Additional efforts will need to be made to keep customers who no longer \u2018need\u2019 to shop online \u2013 but who now can clearly see the benefits of doing so.<\/span>\u00a0<\/span><\/p>\n For many retailers, it\u2019s regional lockdowns that continue to decide whether you can open your doors or not. In eastern Germany, just alongside the Czech Republic\u2019s border, positive coronavirus cases are (as of April 2021) far above the national average. A big reason is that the area is largely industrial, which severely limits any \u2018work from home\u2019 initiatives, and many workers come from the Czech Republic, which is also experiencing huge infection rates. As lockdowns have been eased and workers flow back into the factories, and tourism increases, infection rates inevitably climb again.<\/span>\u00a0<\/span><\/p>\n As such, lockdowns in the region are longer and stricter, which means local retailers face bigger challenges than retailers who may be nearby, but not in the same viral catchment area.<\/span>\u00a0<\/span><\/p>\n Unsurprisingly, the lockdowns, coupled with increased competition from online stores, are forcing traditional brick-and-mortar retailers to consider alternative and smarter solutions to generate income and keep their customers<\/strong>.<\/span>\u00a0<\/span><\/p>\n It\u2019s not just retailers that are changing with the times.<\/span>\u00a0<\/span><\/p>\n Consumers are shopping online in greater numbers and wanting more of that experience when they\u2019re in a physical store. Convenience, ease-of-use, and tailored experiences are becoming more of an expectation than a nice-to-have<\/strong>.<\/span>\u00a0<\/span><\/p>\n For consumers who may now, in this covid world, be reconsidering the need for \u2018non-essential\u2019 shopping, the stakes are high for retailers to encourage customers into their stores.\u00a0<\/span>\u00a0<\/span><\/p>\n A recent <\/span>Bergmeyer report on the Future of Shopping<\/span><\/a> highlighted these concerns, with 35 percent of those surveyed stating they were s<\/span>omewhat apprehensive<\/span><\/i> and 20 percent were <\/span>strongly apprehensive<\/span><\/i> about returning to non-essential shopping \u2013 with 60 percent citing crowds as the primary reason.<\/span>\u00a0<\/span><\/p>\n As vaccinations roll out worldwide, there is light at the end of our current pandemic tunnel, but 2021 will not be the year retail goes back to normal. If it ever can.<\/span>\u00a0<\/span><\/p>\n Our new normal may require a true rethink of how retail needs to deal with customers. Many are looking at a fully connected, omnichannel experience<\/strong> \u2013 where you create a seamless digital and in-store experience for your customers across all devices and stores.<\/span>\u00a0<\/span><\/p>\n However, this all-in-one approach isn\u2019t for everyone. Just as some companies prefer to use an Enterprise Resource Planning solution that covers everything, some go for a best-of-breed approach. And this is where <\/span>smart retail<\/span><\/a> comes in.<\/span>\u00a0<\/span><\/p>\n Often described as a set of smart technologies, smart retail is all about using specific tools to give your customers a better, faster, safer, and yes, smarter experience when they\u2019re shopping with you.<\/span>\u00a0<\/span><\/p>\n For some, this could mean developing a solid e-commerce site. For others, near-field communication (NFC) can enable two devices to communicate with each other and exchange information when they\u2019re near each other \u2013 letting products directly \u2018talk\u2019 to a customer\u2019s smartphone (it\u2019s also a clever way to monitor stock and see what people are interested in).<\/span>\u00a0<\/span><\/p>\n Such digital technologies are also being used to track those who enter your store. Apps, such as Germany\u2019s <\/span>Luca app<\/span><\/a>, require customers to scan a QR-code before entering. The customer\u2019s data is then shared with health authorities, and if a covid outbreak occurs, immediate contact tracing begins.<\/span>\u00a0<\/span><\/p>\n Today, with the ongoing and seemingly unstoppable development of \u2018<\/span>Internet of Things<\/span><\/a>\u2019 devices, it\u2019s the perfect time for retailers to look at digitally transforming their business<\/strong>.\u00a0<\/span>\u00a0<\/span><\/p>\n Such transformation needs to happen within your physical stores and be fully interconnected with any digital presence you already have (or will have). These digital solutions aren\u2019t about solving one specific problem but are ideally about unlocking value and putting a system in place that can handle any issue confronting it. All while improving the customer\u2019s experience. This means being willing to take risks and try new things.<\/span>\u00a0<\/span><\/p>\n While there may be a difference in customer expectations, everyone has similar wants \u2013 convenience, pricing, availability, and personalized service. A smart store \u2013 that connects you with your customers \u2013\u00a0 can address these quickly and easily.<\/span>\u00a0<\/span><\/p>\n And give you immediate access to their valuable data, so you can better track customer insights.<\/span>\u00a0<\/span><\/p>\n Ultimately, smart retail can give your business the edge it needs<\/strong> to stay competitive. And there are a lot of options to choose from.<\/span>\u00a0<\/span><\/p>\n While smart tags have been gaining in popularity the past few years, our recent pandemic and its \u2018social distancing\u2019 are seeing their usefulness increase. As are even smarter tags, which use a combination of IoT, GPS, and RFID technology.<\/span>\u00a0<\/span><\/p>\n Not only can a smart tag (which uses a unique code that identifies the product it\u2019s attached to \u2013 and that links to your management system) tell you where items are (at all times) in your store, but how many there are, what the item is, and when they\u2019re running low. They can also help you synchronize your promotions.<\/span>\u00a0<\/span><\/p>\n Each tag can keep you constantly informed about its status. This is invaluable when keeping your stocks in order. Prices can be changed remotely (specifically, when using Electronic Shelf Labels), more can be ordered automatically, and all can be done without staff needing to be on the floor and re-stocking during your busiest times \u2013 ideal when it comes to social distancing.<\/span>\u00a0<\/span><\/p>\n Additionally, smart(er) tags are taking things a step further. They can help you monitor the temperature in your store. Humidity levels. Where and when an item is moved. Directly monitor a product if it\u2019s been shipped from another store. You could even monitor and adjust lighting levels depending on whether customers are interacting with products in an area or not.<\/span>\u00a0<\/span><\/p>\nThe ongoing lockdown challenge<\/h2>\n
Changing perceptions<\/h2>\n
The top smart retail trends for 2021<\/h2>\n
Smart tags<\/h3>\n
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