2020 Trends in the Retail Industry

The retail industry is highly dynamic, to say the least. As consumer needs change and technology continues to disrupt the market, some changes are both beneficial and complicated. Sadly, retail companies that cannot keep up with these trends will be left in the dust. To do better this year, it is not sufficient to know the trends that shaped the previous years but to predict what is to come.

The importance of business agility in retail

We have witnessed time and again that in retail, on the best will survive. If you are currently looking at securing retail business loans for expansion, you need to focus mostly on how to optimize inventory as well as keep the supply chain efficient. The biggest players in retail nowadays are focusing their efforts on giving the consumers what they want, when they want it, and with the highest possible standards of customer service.

Although physical stores today are becoming less and less essential, they will continue to exist to provide consumers with the “human experience.” However, automation is improving logistics and other time-consuming tasks, nothing beats the personalized touch that store employees bring.

Data analytics will be a game-changer

Exploiting data has already changed the face of business across industries. In retail, data will play a significant role in moving forward. In marketing, for example, information gathered from consumers will provide new insights on how to cater better to their needs. Advertising campaigns will be highly targeted, and brands will become more and more active on social media channels as a result.

Immersive shopping experience

Although many people think that physical stores are becoming obsolete, the trend in retail is quite the contrary. Ecommerce giants like Amazon are experimenting with new ways to improve the physical store experience for consumers. Their flagship investments, including Amazon Go and Whole Foods, is a testament that retail will not shift 100% online. Instead, there will be an increase in providing consumers with improved shopping experience through immersive technology.

Sustainability as a marketing strategy

The increasing awareness and consciousness of shoppers today should be given attention by retail companies. Efforts such as reducing plastic, supporting local producers, buying organic produce, products using recycled packaging, and the like are all gaining much attention. With the help of social media, these retail companies that are not afraid to make a difference are getting free publicity from consumers.

Brands that want to engage consumers more should take notice and take action. For many decades, many retail companies have been in the spotlight for their unsustainable practices. Nowadays, the reputation of a retail business can quickly go down the drain with a single mistake posted on social media platforms. Take, for example, the case of fast fashion. These companies are doing their best to inject “sustainability” into their marketing strategy in hopes of luring young consumers who are highly conscious about the products they buy.

In conclusion, the retail industry will continue to change in the coming years. This year, we will perhaps see a lot more efforts to incorporate technology, sustainability, and improved customer experience as the primary objectives of retail businesses.