Technology will drive revolution in the forthcoming years, thus, retailers should invest in digitally advanced infrastructure and facilities, says Sanjay Kothari
The COVID-19 outbreak elicited a wide spectrum of merchants’ sentiments and behaviours. The retailers are focussing on innovation to operate to the best of their capacities in the new normal. If the modifications, that merchants are compelled to make as a result of the pandemic, are good enough, they will become the new benchmark for customer experience. When you introduce customers to a new level of convenience, reduced pricing, or better fit, their future expectations will be established accordingly. As sad as a pandemic of this magnitude is, merchants simply cannot afford to waste time.
During the first several months, dealing with the new social distance standards was difficult, and only a few shops could open, largely selling food, medical supplies, and necessities. With many establishments closing, the retail sector business faced a very low consumer base and was at times nil. However, as time passed, each sector learned new strategies to deal with the new difficulty.
Consumer behaviour was forced to alter during the lockdown. With physical stores closing, everyone, even sectors and client groups that had previously avoided doing so, had to turn to the digital realm for their retail requirements. Now that this behavioural change has been adopted, it is doubtful that things will revert to their previous state.
This indicates that the offline-online link is more crucial than ever before. Brands that are unable to balance the two might struggle. Physical retail remains a very powerful tool for customer engagement and the digital environment will never be able to compete with its value and experience, hence, being omnichannel is the way forward to exist in composure.
E-commerce will continue to eat market share because it already has the tools in place to provide what customers want — price, selection, free and rapid delivery, to mention a few. Many brick-and-mortar stores were failing even before the outbreak. The reasons for this are numerous and complicated, but it is reasonable to assume that the rise and popularity of e-commerce are to blame for a large portion of it.
Another trend that will undoubtedly become popular in the future is contactless shopping, which helps avoid crowded stores while preferring low exposure; a retail experience in which no items are touched, displays are not restocked, and large crowds are not required. Products are displayed in displays, and purchases are either made there and then and produced from the rear, or they are delivered directly to your home the following day. While this is a format that has emerged as a result of the short-term restrictions of working in a Covid environment, it is quite likely that customers will come to accept it and then prefer it.
Technology will drive a revolution in the forthcoming months and years and thus, retailers should invest in digitally advanced infrastructure and facilities. Digital transformation will pave the way for touch-free shopping experiences, merchandising, transactions, and eliminate physical interactions, therefore, investment in retail technology will be seen. The use of VR and AR for marketing changed the playing field dramatically. Leading companies are adopting augmented reality (AR) or virtual reality (VR) into their digital marketing strategy to attract customers, advertise their goods, improve sales, retain consumers, and give consumers new experiences. Their application is expanding in a variety of fields, including healthcare, medicine, astronomy, education, defence, and consumer products.
AR and VR also allow for in-store experiences to be had from the comfort of one’s own home, eliminating the need to travel to the store. AR is rapidly being used by e-commerce platforms to allow buyers to experience the goods as if they were there in a real-life situation. The use of augmented reality and virtual reality in retail establishments, e-commerce, and advertising is the next big thing poised to disrupt marketing paradigms. AR is more successful since it has reduced costs and assists customers in making purchasing decisions while they are engaged with the information.
‘Shopping by appointment’ is another shopping trend now gaining more popularity. This is already happening with a lot of designer labels and fashion firms, and it’s a trend that may continue to spread when Covid fades into obscurity. In a nutshell, ‘appointment only’ refers to booking an appointment and receiving a time window in the store for yourself only or with a restricted number of other clients. While the short-term goal is to maintain social distance standards and make the client feel safe, the long-term goal is to deliver a variety of substantial benefits leading to a lasting experience. Customers with an appointment are more likely to make purchases, allowing retailers to spend more of their time and effort on other aspects of their business.
With huge retailers suffering and are in the midst of a recession, landlords will need to rethink their options and tactics if they want to keep filling their facilities with brands that attract customers and confirm growth.
(The writer is the Vice Chairman of KGK Group.)