by Daniel Kittell | Accounting News, Industry - Retail & Distribution, News, Retail & Distribution, Uncategorized
The retail industry has experienced considerable changes in the past few years, and 2023 is on track for continued transformation. Retail companies can expect to see several key trends impacting businesses this year, including the growth of e-commerce, the focus on personalized experiences, and a shift to adopting sustainable practices. Below we discuss the key trends that are affecting retail businesses.
An Increase in E-Commerce
Online shopping escalated dramatically during the Covid-19 pandemic, and it doesn’t appear to be slowing down anytime soon. Online shopping provides consumers with convenience, access to wider ranges of products, and competitive prices. If they haven’t already, retailers need to embrace the new e-commerce era and optimize their online shopping experiences to level with customer expectations. Even strictly brick-and-mortar stores should think about offering best-selling products in an online storefront.
Additionally, a continuing e-commerce trend can be seen in the integration of social media commerce and marketing strategies. Social commerce lets customers buy products directly through social media platforms, sometimes with the assistance of influencers or brand ambassadors, and it’s an ideal way for retailers to interact with clients and drive sales.
Personalized Experiences
Retailers will need to create a special in-person shopping experience in order to compete with online shopping, increase customer loyalty, and drive sales. This can include online pre-order and curbside pickup as well as personal shoppers who guide customers through the store to offer personalized product recommendations. For example, if a customer is keen on a particular fragrance, the salesperson can point them toward different products with the same fragrance, making sure the customer is aware of any sales, promotions, or customer loyalty rewards programs. A personalized shopping experience elevates the shopping trip for the customer in a way that is difficult for e-commerce stores to do.
Automated Technology
Automation in pricing and inventory management systems is on the rise, which helps retailers lessen staff labor. As the industry continues to experience labor shortages, more retailers will be investing in these technologies. And more companies that specialize in automation solutions are popping up. Implementation of pricing automation can balance profitability and revenue growth, while inventory management systems can pinpoint an accurate amount of inventory to have in stock.
Sustainability
Consumers are becoming increasingly conscious of the environmental impact of the products they purchase and bring into their homes. Retailers and brands can reflect this by offering products that use recyclable or biodegradable packaging materials. They can also take steps to reduce their carbon footprint by embracing more sustainable transportation operations and working with suppliers that have environmentally-friendly practices. Finally, retailers are seeking ways to use more sustainable packaging materials, such as biodegradable packaging and plant-based plastics, and reduce packaging overall.
by Stephen Reed | Accounting News, Business Growth, Industry - Retail & Distribution, News, Retail & Distribution, Uncategorized
Online shopping isn’t new by any means, but the EY Future Consumer Index, which has surveyed thousands of consumers since the Covid-19 pandemic began, discovered that 43% of U.S. consumers now shop more often online than in brick-and-mortar stores. All signs point to a new normal for consumers, who are realizing that as long as internet is available, geographical location isn’t necessarily a factor when it comes to getting products in their hands. The question now is, how do retail businesses best position themselves to adapt to a future that possibly favors online shopping and ever-evolving customer experience expectations? Read on for ways that you can best position your retail business for hybrid shopping.
Play to the Strengths of In-Store Shopping
In-person shopping has some advantages over online shopping, and if you want to remain competitive among exclusively online retailers, you’ll need to leverage those strong points. For example, when customers engage in in-store shopping, they don’t need to worry about shipping costs and time. Currently, this can be especially advantageous to brick-and-mortar stores by advertising and marketing in-stock products that are being held up within the supply chain. Brand visibility; personal interaction with customers; community outreach and involvement; and tangibility of product for customers to hold in their hands, try on, and inspect are all additional aspects of in-person shopping that provide potential points of strength over online shopping.
Adapting to the Industry Shift Toward E-Commerce
The focus for any e-commerce store, whether exclusively online or as an extension of a brick-and-mortar store, should be on the consumer experience. When making decisions regarding investment and operating models, pay careful consideration to:
- A technology platform that’s able to quickly adapt to differentiated shopping experiences for customers.
- Product that’s available only online versus product that’s available in-store, and the logic behind those selections.
- Competitive pricing while sustaining margin (i.e., is there a way to influence impulse purchases online?).
- The chain-of-events for the consumer from digital browsing to product in hand—and how you will get return customers.
The Store as Fulfillment Center
The pandemic ushered in the customer-centered convenience of buying online and picking up curbside or in-store, and this option is likely here to stay. While this is an effective service to attract and keep customers, long wait times and orders that can’t be fulfilled due to inventory shortage risk losing customers to comparable stores with better modes of communication and track records of product availability. As your retail business scales to meet new demands, it must be prepared to offer a consistent customer experience.
The retail industry can always count on change—whether it’s in the form of a global pandemic, ever-evolving consumer behaviors, or any number of unexpected roadblocks—and you must be willing and able to meet those changes by cultivating strong relationships with customers, no matter if your business is purely brick-and-mortar, exclusively online, or a hybrid of both.
