The retail industry is undergoing a massive technological remake, and that trend will continue this year too, in 2023. While consumer data protection still remains a major concern for retailers this year, with data privacy laws in vogue and more sophisticated and advanced cyber attacks taking place, a focus on offering better-personalised customer experiences will be the key differentiator, bringing about hustle and scalability for any retail business.
Retail Industry
In 2022, the retail industry will face a lot of challenges, from supply chain issues to labour shortages. As hybrid models of office-remote working arrangements become more common, retail itself is becoming more dynamic and hybrid. The line between actuals and e-commerce has become merged and blurred, and many entrepreneurs are attempting to determine the best way to position their businesses in order to make it big in 2023. Here are some of the new standards being set in the retail industry in 2023: trends to watch out for:
- Technological shifts: While technology continues to remain one of the key driving forces in shaping retail, tech adoption has become the inevitable practice now thanks to the rapid evolution of artificial intelligence, machine learning and digital technology. Retailers need to make efforts in order to incorporate these to stand out from the rest of the crowd. Online shopping: This one hit it big during COVID-19 and has increased drastically ever since. Retailers have realized that this by itself presents an enormous opportunity for those businesses and industries which are still more onto physical shopping aka brick and mortar retailers. Retailers definitely need to consider offering their best selling items on an e-commerce platform to give customers the option to purchase their most popular products without visiting their physical location.
- Reducing packaging waste: As more and more consumers are becoming environmentally conscious, retailers also need to work towards reducing their packaging waste. The use of recyclable and bio-degradable packing materials is a much more viable option. The complete movement towards more sustainable packaging is evident from the emergence of those companies which develop packaging options from plant-derived materials. More and more brands are working towards this.
- Consumer data protection: This one continues to be a major concern, especially for U.S. retailers. High-profile breaches cost retailers money and also damage their brands big time. Yes, retail businesses collect consumer data for valid purposes and yet they must ensure that this information is protected at all times from cyberattacks. Failure to defend such sensitive data -financial info etc. could not only lead to lawsuits and fines but also a serious threat to brand reputation as well as lost opportunities for future business.
- Influencers will play a major role: Whether you agree or not, influencers have remained one of the most relevant forces for retail for years now. Consumers value and emphasize the mindset put across by influencers towards any product/ service. Micro influencer campaigns focus on influencers who generically align with the values and beliefs of both the brands as well as the consumers to ensure that they have a meaningful impact.
- Role of social media: Social media will continue to be a major force in introducing customers to brands. Experts are also predicting that hashtags as well as meme cultures will play as big a role as traditional advertising methods for successful small businesses and their young customers. Social shopping is likely to continue its rampant growth among tech-savvy retailers. More creative social programming includes experiential marketing such as live events which are streamed on social media platforms, where people engage with the brand in person or online, thanks to the widespread exposure.
- Rise in Automation in pricing: In recent times, more and more companies have relied on automated technology, to ensure that their prices are properly set. One can expect automated pricing to become more commonplace, helping retailers reduce the labour required by the staff. With the continued shortage of workers in select domains, automation investments will continue to increase with inventory management systems also ensuring the perfect amount of inventory to be at hand.
In the end
The economic lurches that all businesses face may be more pronounced in the retail industry, especially in 2023, having seen a rocky couple of years that led to innovation and evolution. Further adoption of novel tech solutions, increased personalization, and more creative customer engagement campaigns are some of the trends that will be top of mind in 2023.
Also read: How some Brands Beating the Retail and lowdown
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