In this blog post, we would like to highlight three key digital trends that will affect the retail sector this year. It is important to keep yourself updated on these trends as they have the potential to impact your B2B or B2C businesses.
Augmented Reality
According to Forbes, Augmented Reality (AR) has the potential to reduce the number of returns from online shoppers. Online retail is expected to hit $6.5 trillion in value by 2022. However, it is estimated that 25% of purchased items are sent back. AR’s ability to allow consumers to test out the product, virtually, will likely reduce these numbers.
Recently, Apple’s 2020 iPad Pro released a Light Detection and Ranging (LiDAR) sensor that has the potential for business use cases. In their video advertisement, Apple showcased testing out furniture as a potential use case for LiDAR. We believe this technology can alter the way online retailers interact with customers in the future. Though the technology is yet to receive widespread adoption due to the lack of consumer-level alternatives, it will be interesting to see the impacts of AR on the online retail sector in the coming months.
Convenience Matters
According to Deloitte, convenience matters for both traditional and digital retail businesses. Price, quality, and variety of products no longer drive consumer loyalty as there is an overabundance of choice. The only differentiating factor is the level of convenience. Whether in-store or online, consumers want a frictionless experience. Some consumers may even pay a premium for the convenience.
Artificial Intelligence
Artificial intelligence (AI) is improving the way businesses operate as well as enhancing their interactions with customers. Capgemini reports that more than 25% of the top 250 global retailers are currently integrating AI into their organisations, compared to only 4% that did so in 2016. Analysts have also estimated that in 2022, global annual spending on AI by retailers could reach $7.3 billion, which could lead to an overall cost savings as well.
AI has been able to improve retail businesses by increasing conversion rates and boosting sales. Just recently, Adobe released Product Recommendations powered by Adobe Sensei AI for their eCommerce platform, Magento Commerce. This technology can help customers discover relevant products throughout their shopping journey – while creating engagement, increasing conversion, and driving revenue.
These digital trends will definitely shape the future of the digital retail sector. If you want to improve your online store, A&H Digital Solutions is here to help you. Book a no obligation consultation with us today!
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