* By Elói Assis
Brazilian retail has changed a lot in the last two years due to the influence, and consequence, of the pandemic. But the transformation didn't just stay on this side of the counter, it also reached consumers. Generation Z, and other generations, have changed their consumption habits and profiles, giving greater value to the ways of relating to brands.
In this context, technology has broadened the horizons of small, medium and large retailers, who have invested in solutions to increase their productivity, expand their business and be present in the virtual environment, communicating with the other side. And, there are many strategies aimed at expanding online business. However, with the advance of vaccination and the expectation of the fall of sanitary restrictions, it is possible to gradually return to shopping and physical experiences. But it is certain: nothing will be like before, we will not go back to the place we were before March 2020.
For those who think of technology linked to retail only in digital media, they are wrong. Now, to improve the experience of consumers in physical stores, technology is the answer once again. And there is a great diversity of tools that can be explored in this sense.
It is at this point, for example, that the implementation of the 5G network will further accelerate this transformation, increasing mobile connectivity and driving a new evolution of physical stores, from the full use of the capacity of intelligent technologies and tools applied to businesses. 5G improves and drives the adoption of IoT (Internet of Things) devices and, with this, enables sensors and devices to monitor the movement of stores and shelves, allowing for management combined with inventory, and connected devices will also be able to to signal the preventive maintenance of the store, for example.
For retailers that have employees in direct customer service, the use of tablets and smartphones will be expanded, with an even faster connection and data availability and with more mobility. Self-service totems, with increasing adoption in Brazilian retail, may also have increased connectivity and accessibility. And for the customer, there will be numerous opportunities to innovate in-store customer experience, such as augmented reality and beacons.
Another possibility to be explored is Virtual Reality, in which retailers can create 3D environments so that customers can visualize projects, stores and products in a realistic way, although this space has still generated more “buzz” than results. And finally, I can also mention the entire distribution and logistics part, which could become more automated, intelligent, faster and at lower costs.
In parallel with this scenario that awaits us, it is important that all these technologies and experience formats are aligned with a solid omnichannel strategy. I've been saying since before the pandemic that we would be experiencing the era of polychannel, and that this era would only reach its potential if it was treated in an omnichannel way, and that's what happened: retail explored the integration of its multiple channels and the consumer experience off and online. Now that polychannel is a reality, this omnichannel is consolidated so that we can increasingly scale the results.
Large retailers understood the need for a unified and fluid experience, where online and offline converge to provide a more complete journey. In this sense, some concepts were applied and stood out with popularity. At NRF 2022: Retail's Big Show, for example, Nike reinforced the creation of different styles and store formats, designed to reach and please different target audiences. The brand has already adopted the system pick and go, in which the customer chooses a product in the physical store by reading the bar code on the cell phone, in the brand's application, to obtain information such as price, evaluations, technical specifications, etc. When completing the purchase, with the product in the cart, just make the payment on the platform itself and, in a few minutes, it is released. At Nike House of Innovation, for example, fans of the brand can also use the app to customize and create their own sneakers.
Another great brand that joined technologies to customization was Sephora. The beauty products retailer launched a multi-purpose app, creating an exclusive social network for customers of its loyalty program. In this way, the store was able to apply augmented reality features, online chats for consumers to exchange information and other experiences that add to the shopping journey.
By following the recent NRF 2022 event, I could see other concerns and trends for this “new moment” – it reads: transformed by the pandemic. With the hybrid model of work and more flexible routines, this scenario makes room for “15-minute cities”. In a more practical way, it is the person taking advantage of the shops and services that are close to their homes, which will lead to a growth in the proximity stores of big brands, more stores with click-and-take and greater penetration of dark stores and dark kitchens in the neighborhoods, to facilitate the 15-minute logistics. Additionally, stores that offer services to their consumers are also among the highlights, such as food (cafes or restaurants) or other services, whether or not related to the retailer's segment, so that customers can enjoy the shopping moment more and create relevance for the physical store, in a domain where digital cannot compete.
On top of all that, keep an eye out for the metaverse. A new trend that, like Virtual Reality in a physical store, has the potential to significantly impact the digital store and consumer realities as we know it. However, we are still in the early stages of understanding how retail will be impacted.
The fact is that consumers have changed their way of consuming and are increasingly privileging experiences, relationships and evaluating the purpose of the brands they consume. It is important for retailers to understand this new scenario, but still, turn to the analysis of their target audience and “brand advocates”. It is for them that innovations need to work, in order to retain them and little by little to build a new legion of consumers. The technology is available to support you in this reinvention.
*Elói Assis, Executive Director of Retail at TOTVS
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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