Retail technology : Reports, statistics and latest trends and how to make them work in your business successful
Retail technology describes the digital devices and advances that traditional brick-and-mortar stores and e-commerce websites utilize inside their physical locations. Which current technological advances in retail are so worthy of the hype? And how do you choose the best avenues to go for your retail company? We will outline the biggest retail technology trends in this post along with studies and data. You will be able to maintain the pace in this quickly expanding sector thanks to it.
Retail technology: Reports Highlights
- As retailers prepare for a post-pandemic future, financing for retail technology increased to $28.9 billion in the first quarter from the same period last year, according to figures from Retail Dive. Year over year, there were 7% more transactions in the first quarter.
- According to the research, in-store tech funding increased to $2.2 billion in Q1 from $1 billion in Q4 2017. A 73% rise to $11.7 billion was also seen in e-commerce technologies.
- According to research, investing in technology helps supply chains and logistics run faster and more efficiently. It nearly doubled to $8.7 billion.
- The unstoppable expansion of e-commerce is driving up valuations and larger investment rounds. The number of mega-rounds (deals over $100M+) decreased from Q1’s 73 to Q2’s 71. The top 5 transactions were all in the e-commerce industry, and the top 5 new retail firms in Q2 of this year likewise span the e-commerce value chain.
- For Amazon third-party marketplace brand acquirers, business is expanding rapidly. The company that buys, combines, and scales third-party businesses saw investments reach $1.2 billion in Q2 of 21. FBA brands stand for Fulfilled by Amazon.
- In Q2 of 21 the financing for loyalty and incentives technology climbed by around 60% to $413M.
- Retailers will focus on technology that makes the supply chain run more smoothly. Apps that may streamline warehouse processes, delivery routes, and other activities will receive special consideration. Supply chain and logistics technology investments increased by 13% to $9.6 billion in Q2 of 21.
Size of the retail technology market
Retail technology is crucial for physical stores, B2B and B2C e-commerce companies and e-services like meal kits and food delivery. The financial expenditures made in these sectors have increased dramatically over the past several years, driving businesses to alter their organizations to be more digital.
Next stage in technology retail
Although e-commerce enterprises are known for using digital technologies in retail, brick and mortar and multichannel retailers are now leading the way in the adoption of these technologies by the retail sector as a whole. Smart or self-checkout kiosks, smart changing areas outfitted with augmented or virtual reality technology, and broad digital payment alternatives are a few of the in-store retail technologies that businesses prioritize.
Leader in the retail tech game
Asia receives the majority of financing and investments for retail technology. This is not unexpected considering that the area now has the highest online revenues and the greatest number of e-commerce customers. With around 34% of the global retail IT capital allocated to it in 2020, North America is a close second. Europe is trailing behind in terms of investments in retail technology when compared to the two main retail technology trailblazers.
Lastest Retail Tech Trends To Watch
We have now looked at some recent retail technology innovations and some advice for using them successfully in your company.
Virtual Fitting Rooms
40% of consumers said they would be prepared to pay more for a product if they could use augmented reality to experience it. Another 71% of consumers said they would make more frequent purchases at a store if it used AR technology. Retailers may produce custom-sized charts thanks to this technology. With this, buyers can quickly locate sizes and style profiles that precisely suit their needs. Moreover, because it enables customers to “try on” and purchase any items without leaving the comfort of their homes, this technology is very beneficial for the clothes industry.
Advice: Businesses may take advantage of this and establish virtual mirrors in their physical locations. There is no need to allocate precious shop space to changing areas. Alternatively, the area might be utilized to display merchandise and set up visual merchandising displays.
Ongoing Advancements in Fulfillment Options
Shoppers needed brand-new, practical, and secure ways to acquire their purchases, which led to the birth of Buy Online, Pickup In-Store (BOPIS) and the sudden popularity of curbside pickup. Yet, even before the epidemic, Numerator’s 2019 research indicated that 77% of Walmart customers really preferred curbside pickup over in-store orders. Customers were already leaning toward speedier and more convenient fulfillment options, even without the addition of health worry. Moreover, some companies have gone a step further and implemented – or are in the process of implementing – same-day and next-day delivery options.
While Walmart and Target have increased their two-hour fast delivery options, it was Amazon Prime that established the two-hour express delivery model, which is now expected. But that’s just the tip of the iceberg; according to PwC, 89% of consumers said they would be prepared to pay extra for speedier delivery.
As you are aware, contactless payments are not a recent innovation in retail; tap-and-go and mobile payments (such as Apple Pay and Samsung Pay) have been used for many years. The epidemic has, however, markedly quickened this tendency.
According to a research by Mastercard, over 50% of users worldwide (47%) “have switched from their top-of-wallet card to one that supports contactless; this figure jumps to 53 percent among those under 34 years old.” In addition, contactless payment options are deemed to be a significantly wiser method of payment by 83% of respondents. Serving contactless payments like Apple Pay was also before a great to have. Consequently, if you haven’t already taken advantage of this trend, upgrade your terminals or payment processing services to enable contactless payments.
And you need to tell people about it. letting customers know about your contactless activities by leveraging all of your communication channels, including email, social media, in-person, etc. Furthermore, you may ensure the safety of your clients and staff by encouraging your consumers to adopt these solutions.
A tip would be to speed sales at the checkout in-store, online, and while the customer is on the go by accepting all the payment methods they choose. Payment processing is made incredibly simple and adaptable using it.
Rise of Subscriptions
Customers are using subscriptions more frequently to purchase goods and services. According to study by McKinsey:
45% of online users are now media subscribers (ie Netflix, Spotify)
15% of online shoppers have at some point subscribed to one or more eCommerce subscription items.
Since 2014, the subscription eCommerce industry has increased by more than 100% yearly.
Customers frequently pick subscriptions because of its convenience, financial savings, or customization. The desire for subscriptions gives eCommerce firms a special opportunity to build a devoted following of consumers and stable income, regardless of whether customers are refilling staples, seeking for curated items, or prepared to pay for exclusive access. Hence, as subscription services grow, new technologies will be developed to support them. Chargebee, Stripe Connect, Chargify, Zuora, and Oracle Subscription Management are just a few examples of developing leaders.
Advice: The shop may make use of these options, and other eCommerce platforms start offering their own subscription services all year round.
Customers of today place a high priority on zero waste and sustainability. Consequently, a smart way to meet those demands is to only produce things in response to requests.
We hope our list of the top Retail tech worth seeing has brought you something new. If you are not familiar with Retail technology, you can connect with Onextdigital, which is always ready to help you understand Retail technology better.
Onextdigital is a website development and business growth company for its e-commerce venture. Also, we provide economical BigCommerce, Magento, and Shopify development services, as well as a team of skilled experts and developers who collaborate directly with designers.