The future of retail

Publicity

Retail has been one of the most technologically advanced sectors in the latest times. The acceleration of e-commerce reinforces the importance of diversifying sales channels and customer service. The challenge is to keep the service humanized by simultaneously innovating through new technologies. The survey “Tendências do Varejo 2023” (2023 Retail Trends), conducted by the consultancy Opinion Box and the technology and marketing company Dito, shows the paths of this sector. Omni-channel (the convergence of physical stores, virtual stores and customers) is stronger than ever in retail. The integration between the online and the offline world must be increasingly greater in the sector. As a result, the use of appropriate tools is not only the reality in large retail chains, but also in small stores. Figures show that 73% of consumers have bought from both physical and online stores in the last 12 months, and, according to 84%, the ideal experience is to have both the physical and virtual environments integrated. This result shows that the challenge for entrepreneurs is to effectively integrate the two shopping experiences. The survey also shows that in-person shopping is no longer the consumer’s favorite one, however, they are not willing to quit one format in favor of another. According to 39% of respondents, offline and online channels are not competitive, but complementary.

Advantages and disadvantages of each channel

Among the main reasons for shopping online, consumers indicate a number of factors for their choice: better prices (67%); convenience of buying and receiving the product at home (62%); having access to a variety of promotions (60%); being able to compare prices (60%) or finding products from outside their residential region (52%). This shows how the customer is attentive to what happens in the digital world, not to mention that 45% of the survey respondents emphasize that not standing in lines is a great advantage of online shopping. However, there are not only advantages to the digital channel: shipping fees (73%), high prices (68%), and long delivery times (54%) are the main reasons for quitting this model. Not to mention poor service, problems with navigation and lack of interactivity with the customer. The greatest advantage of in-person shopping reported in the survey is the physical contact with the products, the possibility to see, touch and try them (71%), in addition to acquiring the product at the moment of its purchase (71%).

In-person service is important for 24% of respondents; however, this number is accompanied by the demand for good service and competitive prices.

Integration between the physical and virtual models

In a globalized world, it is essential that online stores be integrated with the physical mode, given that, in 87% of cases, price search in a physical store results in an online purchase. About 80% of people state they search virtually to buy in a brick-and-mortar store. And another strategy discussed was online purchase for in store pickup (78%). Competing with marketplaces is a challenge for growing chains and small retailers as 68% of the respondents prefer marketplaces, where there are several types of sellers, over single stores. This set of actions is reflected in the customer’s behavior; with the use of social networks, purchases have become attractive and impulsive. The survey showed that many purchases are driven on three channels: WhatsApp (58%), Instagram (47%) and Facebook (36%). The shopping experience through these networks is seen as positive by more than 80% of respondents. In addition, 40% claimed to have already made purchases after lives, and Instagram (59%) was the most prominent network, followed by YouTube (46%).

The power of personalization

The challenge for companies is to use Artificial Intelligence (AI) without breaking the bond with the customer. It has been observed that 72% of people expect to be recognized as unique individuals, with their own interests, and they are looking for a personalized experience that guarantees recognition and their buying potential. Retail today is much more than just selling products, it involves delighting consumers. In food retailing, for example, the shares in “Groceraunts” stores (grocery store + restaurant) are expected to soar in the coming years, by proposing the preparation of complete meals for the family. Another trend that is likely to be more and more explored is the “recipe subscription”, through which the customer pays a monthly fee and receives at home all the ingredients for the preparation of a gourmet dish, combining convenience and experience.

Technology in the buying process

When it comes to technology for payment methods, the current trends are expected to remain growing in the coming year. It was noted that 86% of respondents report that technology is a great ally in the current purchase process. The use of QR codes is the most prominent, as 56% of respondents have either used or been impacted by this digital tool. CHATBOTS (customer service robots) are also growing in the market, 30% of respondents have used or been impacted by this process. These findings only prove that physical stores are increasingly connected to online sales channels. The synergy between the digital and analog environments allows companies from all locations to gain agility and visibility, without leaving aside more consultative sales experience, which is the characteristic of the physical environment. The adoption of new retail practices, such as sales and service through apps, social networks and other digital means, delivery and the possibility of buying online and picking up at the store is now part of the consumers’ reality and it is only expected to grow from 2023 on. The time has come to invest in new business strategies and use new technologies to remain in the market and in the expansion process.