1. Retail offering revolves around meeting consumer demands
Customers’ ability to compare product quality, price and express their reviews has increased potentially. They demand the exact product they want, how and when they want it. Consumers are concerned on influencing products that provides wellness and healthy lifestyle. Studies have found that 40 percent of shoppers would value more green space. 85 percent of current generation consider environmentally friendly products compared with those aged 65+. By 2030, the present generation will be the workforce and consumer market, retailers need to have sustainability part for their branding and business model. It’s anticipated by 2030, most products will be free of plastic packaging. Brand loyalty and return customers will be key to retailer success.
2. Online retail is more efficient with packaging and delivery
Amazon is creating a streamlined approach using algorithms and machine learning to deliver multiple packages in a single delivery, increasing efficiency and reducing packaging. Online retailers will transform systems to reduce packaging and number of deliveries by 2030. Digital supermarkets will be implementing virtual products that eliminates delivery, stacking and store monitoring requirements. Enables customers with flexibility to shop anytime, anywhere and delivered at time of their choice. For retailers this means less space occupied because loading and storage will not be required, and customers will still be able to have a ‘shopping experience’ and the ability to browse a physical store. UBS estimates global food-delivery sales will grow tenfold by 2030. Grocery delivery will see high growth in online adoption due to convenience, safety and timesaving advantages. Meal kits will be popular, consumers will simply select recipes rather than individual products. As retail goes online, the floor space can be used as a mini-distribution centre to fulfil online orders effectively.
3. Flexible payments accepted anywhere through a single platform
New development of apps that integrates all form of payment methods and act as a single platform for payments. Retailers need to be flexible and secure in accepting all forms of payment mostly single-click or tap will improve the experience for the customers.
4. Manufacturers the new retailers
Advances in technology and supply chains will facilitate manufactures to be retailers eliminating the need for a distributor. This reduces overall costs and benefit for consumers.
5. Sharing economy has transformed retail requirements
A key driver for new industry of rentals of premium furniture where customers rent furniture rather than buying it cheaply. Many products are entirely reusable and it paves way for sharing economy, so customers will not need to buy something to use occasionally.
6. Big data is central to retailer strategies
Data analytics will help in tracking customer behaviour and inventory in real time. Customer data can help in personalising services such as tailored sales, promotions, loyalty programs and rewards