Top Retail Trends That Are Reigning in 2023

Retail January 2, 2023

Retail Trends 2023

Over the past 12 months, retailers have been hit hard by supply chain issues, price inflation, economic uncertainty, and geopolitical events, all of which have weighed on profits and slowed the business. Over the past few years, leading retailers have realized the promising potential of mobile technology in retail.

(Source: https://www.pwc.com/sg/en/publications/assets/page/the-consumer-transformed.pdf)

A new year has brought optimism and a renewed interest in the retail sector. A unified customer experience and a mix of traditional and online purchasing methods will shape the future of retail.

Augmented Reality(AR)

Augmented reality is one of the key components of digital transformation. Google found that 66 percent of shoppers consider AR a tool to aid their shopping decisions. However, Snapchat estimates that by 2025, over 75% of all consumers worldwide will routinely utilize augmented reality when purchasing.

Here are some of the best AR practices:

Color Matching

Even when the paint or lipstick is in the customer's hands, it can be hard to predict how it will look in the home or how it will contrast with the customer's skin tone. Judging a product's color through a screen is an even greater challenge.

By superimposing a sample of paint or lipstick on top of a photo, augmented reality (AR) can help consumers find the perfect color match.

Virtual Fitting Rooms

Clothes shopping online has its own set of difficulties. For example, it's not always easy for a shopper to tell how a garment will fit their body type just by looking at a product photo.

​​Interactive In-Store Displays

Keeping clients interested enough to purchase is crucial after they visit a store. For example, putting up AR-enabled displays in your store can let customers peruse your inventory, make customizations, and locate things that complement their tastes and skin tones.

Virtual Try-Ons

The use of augmented reality (AR) by merchants and brands allows customers to virtually try on things such as hats and spectacles, similar to virtual fitting rooms.

Space Visualization

It's hard to visualize how a sofa will look unless it's already there. Customers can use AR to see how a huge piece of furniture will look and fit in their space before making a purchasing decision.

Gaining and keeping clients' interest is essential to every business's success. Keeping customers amused as they peruse your wares and providing them with a means of engaging with your brand can result in repeat business.

Provide Additional Content

After the sale is complete, it takes a long time to build a relationship with a customer. Maintaining customer loyalty requires providing relevant information about the brand and its purchase.

Here are some benefits of AR:

Takes the store to the customer - AR allows customers to see products without visiting physical stores.

Offers immersion opportunities - AR can greatly influence buying decisions. Also, it can provide an immersive retail experience for the customer.

Enhances customer experience - AR is a great tool which greatly improves the customer interaction with the company or brand. And, it can greatly enhance the customer experience.

Elevate the Digital Experience

Merchants should keep considering ways to improve the mobile shopping experience to complement the in-store one.

1. Deliver personalized service

    A dedicated sales app empowers sales teams with unique knowledge about each customer. Your sales teams can form stronger connections with them over time by tailoring each step of the customer's experience to their specific needs. Personalized and curated service paves the way for loyal customers.

    2. Offer timely discounts and promotions

      Also, customer data available digitally can help sales reps check pricing, offers, and promotions effortlessly. Moreover, customers won’t need to visit offline stores to check prices, offers, or promotions. They can do all these online. As a result, customers will be more likely to buy from you due to the convenience. Hence, you must elevate the digital experience for customers.

      3. Remove hiccups in customer journey

        Fast and integrated communication with the customer on every platform they interact with your brand is essential. From mobile apps to in-store displays, digital platforms are a bridge between all the possible access points your customers may use to interact with you.

        Data-Driven Marketing

        Data-driven marketing is a marketing strategy that uses data to inform and guide marketing campaign and tactic decisions. Here are some benefits of data-driven marketing:

        1. Cost Efficiencies

          Analyzing the effectiveness of each department and marketing approach is essential in the transition to a data-driven retail model. Companies can cut spending if problems are identified and fixed or eliminated.

          As a result, everything from underperforming marketing channels to brick-and-mortar establishments is affected. For example, a manufacturer can use the data to analyze the effectiveness of the store's software, programs, and message to determine which strategies and methods are most effective.

          2. More Agile & Responsive to Consumer Trends

            You can analyze a company's actions internally and its external environment. By keeping tabs on and understanding customer preferences, forward-thinking retailers can continue to be the "it" spot for the latest and greatest. Retailers can learn about their customers' preferences and trends by observing their spending habits and trying different approaches.

            3. More Agile & Responsive to Business Trends

              Retailers can adapt and execute new tactics internally to promote better growth by keeping up with cost efficiency and consumer trends. For example, retailers can reduce the likelihood of customer defection by allocating resources to the points of contact with the company or the locations where customers go for assistance.

              4. Detect New Opportunities & Act Quickly

                There is a steady emergence of novel distribution methods, marketing approaches, and wares. Stores can use a data-driven approach to anticipate consumer demand and capitalize on emerging trends. Retailers should avoid missing out on lucrative possibilities by keeping tabs on the evolution and development of their tools, techniques, and products.

                5. Create Stellar Customer Experiences

                  Marketers invest much time and energy into developing and preserving the company's brand. This work shows up in logos, retail design, and marketing materials. It's crucial to focus on creating a memorable experience that draws in your ideal client base, but ultimately, you want to increase revenue and strengthen customer loyalty.

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                  Empowering Workforce

                  Technology is empowering the retail workforce by utilizing cutting-edge innovations like prescriptive analytics, mobile computing, automated intelligence, machine learning, and sophisticated forecasting, frontline employees.

                  Here are some other ways tech is empowering the workforce:

                  • Access to customer preferences and customer data digitally - The data that we collect drives our society. Some organizations mine this data for one-of-a-kind insights that help them enhance customer service and revenue. In addition to being a source of entertainment, you may utilize data to inform and improve future planning and action. Internal processes and monetary choices are two examples.

                  • Using AI to aid customers better - As one of the most talked-about developments in IT, AI has quickly become an indispensable resource for companies aiming to deliver a highly customized, first-rate customer service experience.

                  • Boosting productivity: Tech can greatly reduce the time consumed in doing tasks and can lead to better productivity. All these things will ultimately result in increased productivity and will generate more revenue.

                  Omnichannel Retail

                  Do customers need to have the same experience each time they interact with your brand? Short answer: yes. 75% of customers have high expectations for uniformity across all touchpoints. 68% of shoppers rank it as extremely important for salespeople to grasp their unique preferences and requirements.

                  You need a single, all-encompassing solution that integrates retail innovations, dispersed inventory management, cross-channel data integration, and a robust set of e-commerce capabilities that span mobile, social, and web to win over more customers and increase sales.

                  Assure consistency across all digital platforms

                  Despite the increased mobility and adaptability of the customer journey, consumers still expect a unified and consistent purchasing encounter. Therefore, before making a final purchase decision, a customer may engage with your business through various digital channels, including mobile, web, social, and others.

                  You can't just focus on your website when delivering a unified experience for your customers. Instead, you have to ensure that all your digital commerce tools are interconnected so that you can be responsive to their needs at any time and wherever they are.

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                  mohan
                  Written By

                  A technology veteran, investor and serial entrepreneur, Mohan has developed services for clients including Singapore’s leading advertising companies, fans of Bollywood movies and companies that need mobile apps.

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