Since the emergence of commerce in early human civilisation, approximately around the 7th century BCE, according to historians, retail selling has first emerged. Its modern version commenced in the 19th century and continues to evolve.
Today, the retail industry is undergoing the fastest transformative phase influenced predominantly by technological advancements, progressing market trends and increasing consumer demands. Retailers are forced to focus on new strategies to confront the fierce competition to suit modern customers.
The retail industry has been fiercely competitive during the past decade, more than ever before, making retailers change traditional processes and strategies to match the digital age thinking. As retailing makes an enormous impact on the economy of any country, businesses are changing their approach to the retail industry rapidly to stay ahead of competition.
Important part of the economy
What is retail? It is one of the most important parts of the economy of a country on the one hand and an essential portion of the day-to-day life of citizens on the other. Retail enables people to purchase goods and services they need. Retail stores provide customers with a variety of needy products, from groceries to clothing to many other essentials. Customarily, the retail industry provides goods directly to customers for their personal consumption.
In the current context, the rise of digital transformation, increased customer expectations, and the evolving role of physical stores have led to innovative trends in retail selling. Retailers are gearing up to embrace and adapt themselves to the changing customer behaviour and new business models aided by digital technology, including artificial intelligence. The future of retail is not just selling a product but creating the most satisfying experience and building lasting trust.
Brick-and-mortar operators now have an enormous opportunity to reach their customers by using several digital platforms simultaneously. Prior to the digital era, retailers had to depend on foot traffic and localised promotion campaigns to attract customers.
Omnichannel selling
Today, omnichannel selling is not optional but a necessity for retailing. Retailers are integrating physical stores with e-commerce platforms, mobile apps, and social media platforms to create an effective shopping experience. Modern customers prefer browsing products online, checking physical availability of products and purchasing through digital platforms.
Providing omnichannel retailing also offers retailers an opportunity to gather important information such as purchasing patterns, frequencies, and demographics that can be utilised to optimise selling strategies. Also, by leveraging data collected from multiple channels, retailers can directly communicate personalised recommendations and promotions.
Artificial intelligence (AI) is making a sizeable impact onretail selling in the modern markets, enabling retailers to easily analyse data that can be immensely useful in deciding on actionable plans. Technology is being used today to augment personalise shopping experiences. Also, technology helps retailers to adjust pricing based on real-time information on competition and other related factors.
Customarily, buying behaviour based on loyalty and trust in a product or organisation has long gone. With the current flow of information, customers are increasingly becoming aware of environmental and social issues, not only of their native country but also of other countries.
As a result, they demand ethical practices, fair play, and transparency from all businesses. The trend has already shifted to adopting eco-friendly practices and ethical approaches to their business models.
Hence, companies are consciously following ethical retail selling practices to deal with socially conscious customers to enhance loyalty and build trust. Those who treat social responsibility as an important factor in their business practices can make a significant difference in competitive markets.
Ethical approach
The purpose of retail also has advanced with technology and has undergone significant changes during the past decade. It used to be a place of exchange. In the modern markets, retailers are looking to reposition themselves to fit into new demands. Therefore, offering experience has become a key influence in retailing. Retailers are looking to give customers things that cannot be easily imitated online and create engaging experiences in their stores.
Providing experience inside a retail store is far beyond traditional shopping. Retailers are now introducing various devices and tools to create lasting experiences that cannot be replaced online. Also, many of them host workshops, product demonstrations, instant lottery draws, etc., engage customers and give unique in-store experiences. This can increase foot traffic, boost sales, and strengthen brand loyalty.
The traditional way of decision-making in retail business is no more. The availability of data and advanced analytics has made decision-making more convenient and more accurate. With modern technology, retailers are empowered to make informed decisions that lead to precision in many spheres. The trend of utilising analytics tools has enabled retailers to optimise performance and increase revenue.
For example, retailers can segment their customer base based on demographics, purchasing behaviour and preferences, allowing for more targeted marketing campaigns. Also, scientific analysis of data can help retailers to determine seasonal demands, effectively manage stock levels and reduce waste. Monitoring daily activities such as sales, conversion rates, and identifying areas for improvement can help retailers to operate smoothly.
Contactless payments will be another new trend worldwide. Accelerated during the Covid-19 pandemic period, contactless payments, mobile wallets and digital currencies are visibly becoming popular among customers, particularly the young clientele, as they offer faster and more secure transactions.
The shift towards cashless transactions has accelerated due to the pandemic. Contactless payments are fast becoming the norm. Retailers are integrating payment options such as Apple Pay, Google Pay and cryptocurrency payments to offer faster and more secure transactions, enhancing customer convenience. This trend is expected to continue as customers become more accustomed to the speed and convenience of digital payment methods. Therefore, retailers that adopt this trend can improve convenience, reduce waiting times, and augment customer satisfaction.
Integrating e-commerce with social media platforms is another trend that is being used heavily in modern retail selling. This integration allows customers to purchase directly through social media networks. Retailers publish advertisements on social media platforms where customers can interact with the retailer through various messaging apps to make enquiries.
Also, live streaming events on platforms such as Instagram and Facebook allow retailers to showcase products in real-time, answer questions and offer deals. By mixing product features into social platforms, retailers can streamline the purchasing process and effectively influence customers.
The retail industry is changing at a rapid pace due to the evolving technological advancements that create more demanding expectations from customers. Due to the ease of accessing digital platforms and information flow, retailers must embrace these technologies to stay competitive and achieve the competitive edge. Hence, retailers must remain alert, agile and responsive to the emerging trends.
