Technology Trends Dominating Retail In 2022
By Frank Hamilton
The statement that lockdown and the COVID-19 pandemic became the reason for e-commerce growth is valid. Indeed, the global share of online retail raised in 2020. The United Nations Conference on Trade and Development proves that an additional 26.7 trillion dollars earned are calculated for 19% of all retail sales. After the market learned the rules of a new reality and the need for digitization, the business became calmer, and entrepreneurs felt more confident. Although 2022 brings new challenges, there are new techniques to overcome them. Read the latest retail technology trends below!
Advanced Marketing Approach
Retailers face new challenges related to supply chains, logistics, and workers. For example, iOS updates also undermine retailers' marketing strategies. With the release of Apple's iOS 14.5 update, retailers faced multiple challenges as apps were forced to ask users for tracking and ad access. Thus, it became more challenging to monitor and communicate with interested people. It resulted in the development of direct communication with consumers. In 2022, many will focus on looking for new marketing channels that will bring more profit. There are websites, SEO optimization tools, social media, newsletters, conferences, printed samples, and ads. Also, the implementation of chatbots and AI started. It all requires time and effort. At the same time, several people are good at it and can work with such tasks to make the business grow.
Usage Of Other Platforms
Companies are trying to diversify operations and develop different revenue streams. It means offering not only products but also services. And, as is increasingly the case, to provide business-to-business services. For example, Walmart: The retailer has offered its delivery platform to other companies through Walmart GoLocal. Similarly, ThredUp's resale as a service server platform has helped Walmart, Everlane, eBay, Farfetch, and Gap target resale. Analysts at Wells Fargo estimate the platform, projected to generate up to $300 million in revenue by 2025, could be more profitable than ThredUp's used clothing sales. Amazon, known for its lucrative AWS cloud unit, also hasbranched into other service offerings. For example, the company has begun selling its cashless technology to other retailers, allowing consumers to pay for goods in brick-and-mortar stores without waiting in line.
Keep Wholesale And DTC Balanced
That is a widespread technique when retailers modify their business models to obtain the optimal balance between wholesale sales and direct-to-customer ones. Examples are Adidas, Adidas, and Under Armor. But one has to be careful doing this, as long as it may not match one's particular company case. For example, Adidas limits wholesale partners and strengthens DTC channels to have revenue from both channels. In parallel, digital-enabled brands are finding value in expanding with wholesale partners in addition to their e-commerce and stand-alone stores. As a result, in 2022, more and more brands will try to find the right balance between DTC and wholesale channels.
Bet On Developing Your Brand
Retailers see brand development and personal brand as reasonable. As long as you work to grow the recognizability among your audience, you get new potential clients who already know who you are. In addition, different channels will allow them to obtain more market share. Importantly for the private label market, buyers are increasingly worried about earning as much as possible. If price growth outpaces wage growth amid inflation, private labels may become more attractive to price-conscious consumers.
Customer Orientation
It seems like that trend will never be outdated, and there are reasons for that! Customer experience always has been the factor that affects the client's decision to return to the store. Besides, it is about the relationships that start far ahead of the first purchase and do not finish after the money goes to the retailer. The savviest retailers know that a good customer experience is about the process. Thus, it is essential to be next to him from the beginning and grow his clients. Speaking about potential clients, you can take the group, imagine the personas and address them but a few years younger versions.
It is about marketing and content strategies. There are numerous ways to promote your services and products, encourage people, and be with them when they receive their beautifully packaged order on their doorstep.
In addition, the buyer has become more demanding. In particular, a survey conducted at the beginning of 2021 showed that faster delivery was the main reason shoppers worldwide switched to online shopping (11.2% of respondents).
In second place is free returns, cited by 8.1% of surveyed consumers, followed by reliable reviews and ratings at 7.3%. However, judging by the dynamics of global retail sales, online sales will grow and may surpass offline sales in the future.
The trends will develop and modify, giving companies new paths to improve and grow. Keep tracking the updates to make the correct moves. Good luck!
About The Author
Frank Hamilton has been working as an editor at essay review services Writing Judge and Best Writers Online. He is a professional writing expert at the writing company Trust My Paper in such topics as blogging, digital marketing, and self-education. He also loves traveling and speaks Spanish, French, German, and English.