Table of Contents
- 1 What is Digital Transformation for Retail?
- 2 Digital transformation in fashion retail
- 3 Digital transformation retail banking
- 4 Digital transformation retail case study
- 5 Retail digital transformation roadmap
- 6 Retail digital transformation trends
What is Digital Transformation for Retail?
The term ‘digital transformation’ in retail includes a range of business opportunities that do not simply focus on a single technology or a discreet strategy. A digital transformation for retail refers to the trend of retailers creating new and innovative business models that blur the physical and digital worlds.
Digital transformation for retail is a radical rethinking of how a retailer uses technology to pursue new and improved revenue streams and new business models.
Digital Retail Transformation Assembly is a conference dedicated to the highly complex digital retail environment that will develop over the next few years.
Digital Retail Transformation Assembly covers topics such as:
- Shaking up the Digital Retail Landscape: From Online to Omnichannel to Unified Commerce
- The Evolution of Digital Retail: Digital Experience as the New Customer Experience
- The Future of eCommerce: Building Brand for the Next Generation Shopper
- Mobile-Only Consumers: It’s time to Prepare for this New Reality
- The Next Generation of Retail Lease
- Evolving Retailer-Consumer Relationships to Compete with the Rise of the Niche Brand
When it comes to the digital transformation in the retail sector, it takes on a very wide meaning and can be a very unhelpful phrase. ‘Business Transformation’ represents the process that requires more than just replacing old technology to guarantee success. It represents the necessity to change how retail works to accommodate the continuing shift in how consumers shop. This transformation includes how stores are using digital technology to revolutionize the in-store experience, as well as reshaping finding a local store, paying for goods without queuing up, and everything.
Digital transformation in fashion retail
The fashion industry, spreading from global discount retailers to exclusive luxury brands, plays an important part in the global economy. Fashion is one of the most challenging fields, heavily impacted by global economic instability as well as differentiated trends and industrial changes. In response to the pressure for growth and cost savings, many brands have initiated a series of initiatives to improve the speed of market access and implement sustained innovation in their core product design, manufacturing, and supply chain processes.
A fundamental challenge facing many fashion brands is that they are increasingly lagging behind consumers’ expectations. The role of the consumer has shifted from one of passive observance to allowing for dominance. They are no longer satisfied with simply purchasing fashion products. Their desires are that they can interact, belong, influence, and be the brands from which they buy. Informed, selective, and in charge, they care about how they look in public and on social media and perceptions of the goods they buy and own. Those are the driving forces behind the digital transformation in the retail industry.
This means that being a digitally-savvy brand cannot be considered a separate business any longer. It will become the foundation for organizations and the entire relationship between consumers and brands instead. There is no typical consumer segment, no geographic area, and no universal solutions for all.
It is setting new standards of service and experience, and mostly about moving away from being a product brand to becoming one that shapes and implements contextualized, consumer-centric propositions – a brand that considers its entire experience ecosystem. Legacy businesses with analog systems and processes are judged by these new standards and find themselves obsolete and outdated in comparison.
But many brands are still questioning how to bridge the digital divide. Given the brand heritage and identity, which are at stake – it is a very delicate path to tread. Any digital manifestation of the brand – from social platforms to third party distributors – needs to go hand in hand with redefined brand values and must be tailored to the needs of the customer. A misaligned or generic digital offering may actually widen the digital divide and even pose a threat to brand and reputation.
But many brands are still wondering how to close the digital gap. Any brand’s digital rendition – from social platforms to third-party distributors – should go hand in hand with redefined brand values and should be in tune with consumer needs. Delivering false or generic digital offerings can really widen the digital gap and even cause a threat to brands and reputations.
Digital transformation retail banking
Digital transformation in retail banking is gradually moving the bottom line in the digital transformation retail industry. The key to building the technological foundation will be gradually migrating away from legacy systems while strategically bringing in emerging technologies like AI. More than half of banking executives state updating their legacy technology without disrupting day-to-day business activities is a major challenge, followed by a lack of collaboration with the IT function and lack of change management expertise.
Digital transformation retail case study
There were already a lot of companies that applied the idea of digital transformation retail. Accent Group includes nine different retail brands and it has distribution rights for 10 international brands – including TAF, Skechers, Merrell – and it has a total of 445 stores across Australia and NZ. So what the digital transformation journey has been like for a company with so many moving parts?
Teperson talks about the digital transformation for the retail journey starting and ending with the consumer. This isn’t just a soundbite. Here, he elaborates:
“What do I mean by that? Our customers told us that they wanted click-and-collect, so we implemented it.”
“Everybody reports they have a ‘customer-centric strategy’ and talk about ‘customer centricity in everything you do’. I have no idea if you’ve seen a picture in my presentations – there is a quote by Sir Terry Leahy in my office, former Tesco CEO: “Follow the customer and you will never have to seek growth ”.
“And that very prominent principle is the cornerstone of all the innovations we have brought about through digitizing our business operations.”
“And the digital transformation of retail has been built off the momentum that we have seen off of these innovations. Click-and-collect started and it was a great incremental lift. We saw overall about 10%-20% lift in our digital sales when we launched it. Then, when we did a ship from the store, we saw another 30-50% lift in our digital sales as a result. Therefore, this is the reason why you ought to ‘follow the customer’.”
Same-day delivery and ‘endless aisle’
Beyond click-and-collect, Teperson expanded on what’s next for tech and logistics at Accent:
“Consumers always appreciate choice and service, so the next Accent Group will roll out same-day delivery, followed by 3-hour delivery. That won’t just come from one warehouse, it will come from all of our stores across the country. This means we will have about 80-90% coverage of the consumer market and be able to get the product to them within three hours across the country – which is a pretty amazing transformation.”
“And now that one of the lessons from ship-to-store or click-and-dispatch is to make all of our inventory available for online selling, we want to solve the problem that we don’t have the item in the store the client is in, but have it somewhere else.”
“To accomplish that, we are going to launch ‘endless aisle’, where staff in one of our stores has access to every piece of the inventory we own across the business. So, if the customer is standing in front of them, they can fulfill that desire for that customer and have it delivered to them free of charge the next day, making the customer’s life and the experience better.”
“So back to your question around digital transformation across the group. The take up of these pieces of innovation has been a little bit different across each of our brands, but it is always driven by what the consumer wants.”
>>>> Read more: Digital transformation examples and the strategy to do this
Retail digital transformation roadmap
The digital roadmap is access to identifying and managing digital transformation steps. It provides a structured way to navigate through the many programs needed to achieve success.
The roadmap starts with assessing the digital maturity of businesses today and moves to the definition of a vision of the future. After the assessment and vision have been completed, the system gaps that need to be filled can be identified. These steps can then be formulated into a roadmap.
The roadmap for an effective retail digital transformation starts with a clear understanding of the analytics value chain which is an iterative process.
► DATA COLLECTION & DATA CLEANING
► DATA ANALYSIS & INTERPRETATION
► REPORT GENERATION & VISUALIZATION
► REFINE & ENHANCE
► IMPLEMENT & OPERATIONALIZE
Retail digital transformation trends
Immediate Delivery Demand
Digital transformation in retail 2019 shows a trend that the consumers tend to receive the ordered products as soon as possible and the holdup duration is shortening. The marketplaces have to make sure that their services to clients become faster than ever before. Some of the apps serving in this regard are, Instacart and Shipt. Research informs that 88% of the customers are ready to pay extra charges for the fast delivery of the products. Amazon has provided a free one-day shipping offer. Amazon prime indicates that shoppers are not willing to wait for product delivery for more than two days. Amazon Prime Air even guarantees a 30-minute food delivery. Grubhub and UberEats are offering faster in-and-out dining.
Those are great digital transformation in retail examples. The case of Prowexx is also one of the most outstanding digital transformation retail examples, a leading B2B marketplace plans to provide even faster marketing services, regarding food and other consumer products to meet the standards of the world’s best marketplaces.
Augmented Reality (AR Technology)
“Though, undoubtedly very useful as a tool for getting Instant information, there are certain contexts where…Augmented Reality is deemed to be inferior to real-world interaction”
These were the words that misconduct the usefulness of the AR technology that clearly seems to rule in digital transformation in retail 2020. Where you don’t need to physically experience a product before you have finally purchased it. Thanks to the AR technology, product discovery is the most convenient and virtual. Many powerful corporations such as Toyota and Target, Low’s launched their programs following Augmented Reality technology. The product procurement process in B2B marketplaces also has an upgrade in their systems to AR technology as a consumer product marketplace.
Nowadays, customers need to be provided with more personal and convenient digital services. They need it all on one screen, giving them complete information about prices, styles, dates, and all other data related to the product. The B2B market cannot avoid the importance of AI. It’s very important to use AI to stay at the forefront of the vastly active digital B2B marketing networks in the world. AI programmers are required to assign the product discovery process more refined, personal, and quick so AI programmers are so essential in digital transformation for retail.
In this era of digital transformation for retail, AI has played a crucial role and it will be featured in the coming years because of its outstanding experiences. You use social media services like Pinterest and Instagram and are fascinated by the captivating images of costumes and food that catch your eyes and convince you to satisfy cravings from the real market. relevant consumer products. The process is so much help that a smart digital device in your hands is making product discovery easier to examine, choose, and then ordering it. Digital transformation in terms of shopping can virtually cultivate your experiences.
The Spatial web is a computing environment operating in three-dimensional space, mixing both real and virtual reality. Billions of connected devices allow it to operate and be accessed by the interfaces of virtual and augmented reality. By 2020, the situation of retailing via the Spatial Web is increasingly confusing. You can use digital services to visualize yourself in a virtual or artificial environment.
This confusing strategy has disadvantages at some points but at the same time, being used effectively and smartly can help them prove to be the game changers for the retailing and commerce marketplaces. This is considered a creative strategy in the retail digital transformation market.