As our world continues to become more digitally evolved, the retail industry has been undergoing unprecedented change. Artificial Intelligence, augmented reality, and blockchain are just a few areas where constant improvements in terms of retail technology are being made. It is not wrong to assume that in the coming time, technology will be the driving force behind all sorts of industries. For this reason, it is essential to recognize evolving technology trends and innovations. The quicker we understand them and how they work, the easier it becomes for us to adapt accordingly.
To help you better understand what the future will look like in terms of technology, we have underlined the top 6 trends in retail technology in 2023 for you in this blog.
Advancement of Web 3.0
Web 3.0 is the third generation of the world wide web, which is to be accessible to everyone and is built on blockchain technologies. A decentralized web allows users to connect to the internet without needing a central authority. This will give them greater control over their online experience and data. Web 3.0 is secure and is used for various applications by individuals. Its most common usage as a retail technology is seen in supply chain management and voting systems. The application of Web 3.0 is expected to increase with time, and it is likely that in the coming years, it will enable new models of ownership and governance.
An Increase in TikTok Marketing
We have seen how TikTok started merely as an app to make videos for entertainment purposes. However, within just a few years, it has gained immense popularity and is now used extensively for marketing. This is due to its global usage. TikTok has become one of the best ways to reach potential customers. It is for this reason and the fact that it allows you to practice your humor and creativity freely that TikTok is expected to replace conventional marketing methods entirely in the next few years. The application currently has 2 billion downloads. This gives businesses a reason to promote their production of this app. Moreover, TikTok provides companies with an informal and fun way to reach potential customers. This creates a personalized relationship between potential customers and a brand, and they can get more information regarding the product/service.
Artificial Intelligence will Shape the Retail industry
Another retail technology trend we can expect to see in 2023 and beyond is the significant impact artificial intelligence will have on the retail industry. The use of chatbots and automated customer services with artificial Intelligence has already changed how companies interact with potential customers. Unlike previously, consumers do not have to wait for a customer representative to answer their queries. A report by Forbes said that Artificial Intelligence is likely to be incorporated within 95% of businesses by 2021. This showcases that if retailers want to stay in a competitive market, they would have to include artificial Intelligence, too, since almost everyone else would be doing it.
More than that, artificial Intelligence finds its purpose in carrying out essential business tasks. One of its major applications is to predict the customer demand for companies, and they can then manage their production and inventories accordingly. This increases efficiency and reduces wastage, which is something almost all firms are moving towards as a primary objective. Artificial Intelligence also comes in handy in providing businesses with consumer insights that help them make better decisions. This would be because they can now predict consumer preferences and habits.
Bank cards and mobile money applications have increased the number of cashless transactions that take place in the market to a great extent. This number is expected to only increase in 2023 as financial literacy increases. More retailers are adopting methods where customers can pay for their purchases using a card because of its ease and the problems it caters to. Customers no longer have to worry about the hassle of going to an ATM to get their money or gauge the amount of cash they should keep in hand for a shopping trip. They need to carry their card with them.
Increase in Quantum Computing
Quantum computing uses quantum mechanical phenomena such as entanglement to carry out different operations with the data on hand. For businesses, it means solving various problems quickly and dealing with tasks like analyzing customer data, optimizing supply chains, and forecasting customer demand. Quantum computers can process a large amount of data in a short time, which is why there is great potential for greater application. It is also secure, which is why many businesses are exploring quantum computing to make their operations more efficient to remain in the competition.
Progression Of Green Technology
One of the most expected retail technology trends that can be predicted in 2023 and beyond is the rise of green technology. The world is becoming more aware of environmental issues, due to which consumers are becoming environmentally conscious. There has been a trend to shift towards products and retail IT services that are ecologically sustainable. As a result, to retain customers, companies have been forced to reduce their carbon footprint and adopt different green technology methods to show their support for the cause. Examples include the use of solar panels and electric vehicles.
With time, green technology is becoming more of a necessity. Businesses must keep up with the trend to retain customers. If they invest in green technology, not only will environmentally conscious consumers be more inclined to buy from them, but they will also play an integral role in conservation. The retail industry will undergo significant changes in trends in the upcoming years. These trends in the retail industry will mainly be a result of technological innovation. It is safe to expect the way we shop and our choices will be impacted by advancements in artificial Intelligence and financial technology. Therefore, businesses need to make relevant changes in how they operate to stay updated with new trends. Failure to do so might lead to a potential loss of customers.