STORY INLINE POST
Without a doubt, this decade has been characterized by the transformation of many industries, with the implementation of new tools, investment, and the birth of new startups targeting sustainability and social impact. These new ventures are completely immersed in the use of technology as a fundamental part of their DNA.
In this context, our generation is living in a time in which the growth of fintech, edtech, foodtech, and healthtech companies are becoming the next-generation business models.
This new wave of companies that have technified traditional industries has also arrived in retail. This panorama is not a coincidence as the growth of e-commerce has been a key factor in the increase in demand among physical stores for technological solutions.
Every day more startups are emerging with answers to the needs of the brick-and-mortar industry. The growth of companies focused on retailtech is breaking the old paradigms that retailers themselves could not resolve.
2022 has been crucial for sectors such as retail, where the usual purchasing patterns have changed around the globe.
In this new world of retailtech companies, there are two key actions that have to happen for brands to ensure their growth this year.
1. The importance of knowing your product.
Although it seems a very basic issue for the biggest retail brands, it could become an obstacle to ensure if the product offered in the store satisfies the purchase promise made on a daily basis.
After the problem with logistics delays for imports and exports during the pandemic months, retailers have to face the problem of the lack of new products to restock their shelves. Some of the hardest-hit sectors were clothing, footwear, and accessories stores that need to offer new products to their consumers to keep them aware of their existence. This caused a decrease in purchase intention in some sectors during those months.
For this reason, those companies that quickly managed to resolve the availability of new articles began to increase their sales above the brands that offered the same products for months.
As a consequence, consumers bought much more than they did last year. Purchase intentions have been higher in several retail sectors.
From this moment and throughout this year, the brands that understood the importance of an innovative and novel product are the ones that have had the best sales results.
This is half of the key to sales success. Especially in 2022, it is important to listen to your customers to rediscover their current needs, their expectations and incorporate them into the shopping experience.
Before thinking about a new strategy, it is important for retailers to look inward, at their research and development or purchasing departments, to align their product strategy to their customers’ desires.
This is one of the most important lessons that the pandemic taught retailers.
2. The importance of the modernization of physical stores.
With the product issues resolved, stores must consider the technification of their operational process.
Starting this year, stores that have not yet invested in technology to help them simplify their operations, will have to consider it seriously.
The diversification of sales channels on digital platforms is already a reality for customers.
The pandemic proved the ability of retailers to adapt to this trend from one moment to another. The implementation of technology that integrates all points of contact with the final consumer will make a difference in the purchase decision.
And this is not only exclusively in relation to the sales funnel: consumers increasingly appreciate being able to buy online and pick up at a store. These types of options for all sales processes are the ones that are leading purchase decisions.
In this omnichannel environment, the retail analytics sector is becoming the most important above other technologies.
With the control of the backend logistics process and the visibility of sales behavior, retail stores can improve their omnichannel actions without prioritizing one sales channel over the other.
These two issues can be a game changer for a brand or tear apart a store’s sales performance. The omnichannel era is already here. It's time to take action on it.