Digital is a word that is often synonymous with business transactions. Every business has an online presence and the brick and mortar stores as we had always known them has started to revamp itself to suit the changing business needs of the market. There has been many studies regarding the impact that going digital has on the market. Digital transformation is the buzz word of the hour with almost every company wanting to invest in the same.
What is digital transformation anyway?
Well, digital transformation is the process by which companies are changing to internet based systems to find customers, market products and process payments.
The retail industry has long since been lagging in moving with the times. However a recent study by Virtusa Corporation in September 2017 revealed that the retail industry is now in the forefront of this technological change and are setting the standard for innovative and digitally driven customer experiences. The need to transform business into the digital dimension has made retailers to start this change.
This new interest of the retail industry is surely creating changes in other parts of the business world. Entrepreneurs must keep a track of the changes that are shaping the retail world so that they can strategize to stay ahead of the business game. Here are three digital transformations that are shaping the retail world.
Convenience is something that is synonymous with business growth. If you want your business to grow then it is important that you make your business experience convenient. The companies that give users a more convenient user experience are the ones that will succeed.
Making a business mobile friendly is one thing that entrepreneurs all over are doing. This makes a company user friendly, naturally making it one of the favourite companies with users and increasing its success rate. The CEO of Macy’s Jeff Gennette says the following regarding a business being mobile – “The winning formula for Macy’s, Inc. is a healthy brick-and-mortar business, robust ecommerce and a great mobile experience. While we have more work to do, the continuing improvement in our stores is encouraging, and we once again achieved double-digit growth in the digital business.”
It is important that entrepreneurs provide a user-friendly experience to its customers. Every other business is looking at not only giving users a good mobile experience but some are even planning at enhancing this experience by using augmented reality in the mobile application. This can give the users a real life experience of how a product would look like in reality.
The very advanced modes of payments that people had are going to change. The business world has seen the emergence of cryptocurrency and different payment options in the few years. Companies like Online Retailer was the first company to begin accepting payments by Bitcoin.
Cryptocurrencies are becoming very popular but the retail industry is still to welcome it as part of their transactions. The fact that cryptocurrencies are very volatile make entrepreneurs in retail stay away from experimenting it with.
But there is a different side to cryptocurrencies as per Stefan Krautwald who is the commercial director of FluzCoin. FluzCoin is a patent-pending intelligent retail cryptocurrency. He said that “Cryptocurrencies, if built on proper enterprise level blockchains, offer a significant reduction in transaction costs and increase in transaction security to benefit retailers,”
He further stated that “For ecommerce businesses, reduced fraud, such as the elimination of fraudulent chargebacks and lower transaction fees, can play a crucial role in cryptocurrency’s adoption.”
This proves that the retail would gradually go the Cryptocurrency way.
3. The Rise of Automated Services:
There has been a rise of competition between e-commerce companies and those subscription-based companies. The subscription companies are taking the convenience of online shopping a step further.
Subscription-based companies use the power of automation to give users new innovative services. These make people no longer worry about rushing to the store for daily essentials but can be delivered at the push of a button. Amazon for example already has subscription options that customers can use for their use. For Example, Amazon’s Dash Button allows customers to refill an order automatically. Then there is this company named Stitch and Fix. It is more like a personal shopping service. This shop does not only sell clothes but also send customers a box of accessories and clothing every month after analysing what would suit the customers taste. It however charges customers for the service.
The digital transformation has arrived long back. But the retail industry took some time to actually go digital. The retail companies of today understand the importance of being digital and therefore have started their shift in that dimension. The change in the retail company’s transactions are something that would naturally affect all the dimensions that we know it. The above stated are the ones that are the first to be transformed.
Entrepreneurs in the retails sector must look at changing their way of working. It is important that they move with the changing needs of the business world. The Brick and Mortar Stores might not lose its importance completely with quite a heavy number of people going shopping the old way. However digitalisation is going to be one important factor that would push success of a company. Entrepreneurs who want to stay in their comfort zones would have a hard time catching up with the change later. The competition would rise and there will be a lot of struggle to match the level that those retail companies who made the move earlier has. Entrepreneurs who want to stay ahead of the retail game must make the necessary changes that would help them thrive in the digital retail future. The digitalisation of the retail world has arrived and retail entrepreneurs who do not understands it will be left behind in a business world where no one understands their language and way of working. Give your business the digital transformation it needs and make it a success.