The retail industry is facing some big challenges and the question is... are you ready for them?
The 2019 challenges in the retail industry
During The Retail Facility Day, eightteen top experts shared their vision on this year's challenges in the retail industry. We made a list of the most important ones for you:
- the rise of automation and Artificial Intelligence bots,
- the death of the traditional retail model,
- the appearance of new competitors with other cost models and new discount moments like Black Friday,
- the fact that consumers are buying more and more online, as well as abroad,
- the shift towards 'service retailer', and
- the new definition for retail: an integration of online, offline logistics and data across a single value chain.
Seize the opportunity
Now, how can you bend these challenges into opportunities for your retail company?
You need to read this post from start to finish. Make sure you understand and put in place to make your business 100% bulletproof the upcoming challenges. Otherwise you could lose from "The Big Retailers" and destroy your business.
- Improve your store management system.
Implement a system that gives consumers new means of inspiration, information, stimulation, experience and support.
- Omnichannel is the way forward.
Put in place a mix of human, digital and physical experience. Make shopping easy and pleasant, facilitate buying choices. Reduce the time of the shoppers to make a choice/find what he/she needs. - People are in the center of your business.
- Build better and more personal relationships with your customers. Personalize your messages. Interact with your customers through smart technologies e.g. interactive screens/kiosks.
- Give your customers a unique experience.
- Get better insights in their motivations. If you are looking for a long term future in retail, you need to stop focusing on how you can make easy money. Instead, give your customers value and solve their real problems.
- Smart data enables you to be successful on above three items.
- Combine all data: open, your own, from suppliers or purchased data.
- Get real-time insights on general vs. abnormal consumptions, visitors, dwell time, effectiveness of promotions/campaigns, stock levels, motivations of shoppers, and much more.
- Adapt quickly, speed of change is important. Build a mindset of continuous improvement. Fast to the point actions.
- Dare to experiment, but not on gut feeling. You need to manage your risks based on the right data.
Final thoughts
Smart data is key in the retail market. It is a tremendous asset helping your company to face the upcoming challenges. Ignore your data at your own risk, but if you do you'll never make money from retail in the future.
Don't know where to start? We can help, have a look at: https://www.tengu.io/use_cases/smart_retail.
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