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What’s in store for retail in 2019?

Posted on December 27, 2018January 10, 2023 by admin

While everyone is enjoying the festive season frenzy, and eagerly awaiting the New Year with hope and aspirations, it is time for businesses to retrospect and set objectives for the future. Retail businesses, specifically, are more consumer driven. Therefore, it becomes essential to be intuitively proactive in gearing up for what lies ahead while striving to outperform the previous year.

It’s a given that technology will continue to play a major role in the New Year as it did in 2018 and the years gone by. Being an enabler, and also a disruptor, technology will see itself getting strongly embedded into the very genes of retail businesses and will drive the engine. And this is perfectly evident in the prediction by Gartner analysts who say that retailers’ investment in technology will grow by 3.6% globally in 2019 as customer expectations will put pressure on them to perform.

Further, Gartner mentioned that software would be one of the fastest growing technology expenditures in the retail industry, especially platforms for analytics, mobile applications, digital marketing, e-commerce and Artificial Intelligence (AI) increasingly becoming areas of interest for retail CIOs. By these predictions it is clear that technology will be the driving force for retail businesses in 2019.

The next thing in retail that is set to make the waves in 2019 and the years following would be the rise of brick-and-mortar retailing. As global sales of physical retail went up by 4.8 in 2018 and there were more stores being opened than closed, the trend will seem to continue. Even large online players like Amazon have started their own physical stores or are buying out other stores. As physical stores are evolving and are becoming destinations for experiences and not just limited to transactions, customers will continue to flock to the stores to enjoy these curated experiences.

Eventually, retail is no more about the channel, but it is about the consumer. Ultimately, the integration of technology and the business in the right manner will ensure that customers get what they want while businesses achieve their goals in the New Year 2019.

Why is customer data and analytics beneficial for retail?

Posted on December 14, 2018June 8, 2022 by admin

Technology has been an enabler for most businesses to achieve better outcomes. The retail business has witnessed tremendous disruptions across various aspects in terms of operations and processes, thanks to technology. Today, the retail sector is the best example of how a business can evolve and one of the major reasons for this has been the customers – they adopted technology, and with that, not only their purchasing behavior, but also different stages of their shopping journey evolved, leaving retail companies no choice but to follow suit.

Tech-savvy customers being the drivers of the retail evolution led to one of the biggest advantages for retailers – the ability to acquire customer data, and translating that data into powerful insights that enabled in better decision making. Listed below are some of the important and tangible benefits that customer analytics based decisions have:

Streamlining retail campaigns: Retailers can channelize their marketing efforts and optimize costs.

Having competitive pricing: Retail brands can price their products based on demand and customers’ expectations and market trends.

Enabling customization: Retail customers can be provided with a combination of features or service that satisfy their needs.

Reducing wastage: Retailers can manage their inventory better by proactively anticipating customer demands.

Facilitating faster delivery: Knowing local demands and trends will enable retailers to set-up the right supply chain management system to fulfill customer orders.

Fostering customer loyalty: Offering the products at the right prices enhances customer satisfaction and leading to loyal customers.

Increasing profitability: All the above factors will lead to higher profitability for the retail business overall.

In today’s retail scenario, the customer is key. Retailers can ensure increase in profitability and sustainability of their businesses by focusing on the customers, knowing and understanding their needs and fulfilling them as and when the customers’ desire.

Important Retail Technology Predictions

Posted on December 31, 2018April 15, 2023 by admin

Good bye to an eventful 2018 and welcome to the New Year 2019! At this juncture, it is the time to remember all the good things of the past year as well as get ready with plans and strategies for success in the new year. The retail industry has seen many ups and downs in the past year. And from all the reports, stats, debates and news, one thing was clear – retail companies who were not able to cope with technology, struggled while those businesses who used technology effectively, succeeded. The same is expected to continue in the new year and beyond. So here are a few retail tech predictions for the the future.

3 Important Tips for Retail Business Success in 2019

Posted on December 26, 2018June 8, 2022 by admin

The New Year is almost here and retail businesses must look forward to getting it spot on, right from the word go. It is therefore important for retailers to rely on learnings from the past while strategizing for success in the new year. So let’s look at 3 important factors that will help retailers get it right in retail in 2019.

Striving for Seamless integration across the business: It is now or never for retailers, where ‘unified commerce’ is concerned. Shoppers are increasingly demanding seamless experiences across channels. Operating in silos will surely spell doom for retail businesses. On the other hand, integrating channels and business processes will provide dual benefits – single version of the truth, seamless flow of information. Data is key to delivering outstanding experiences to customer. Having the right information related to product and inventory across channels, and having a thorough knowledge of the customer while ensuring that multiple channels are well integrated in the business system will enable retail brands to deliver exceptional retail experiences to their customers.
Focusing on Lifetime value rather than transaction value: Retail brands should stop focusing on the value of the transaction, rather they should look at how much value a customer brings to the retail business throughout their lifetime. This approach will provide a more holistic insight while managing customer relationships. While using on a transaction value based approach will help retailers to increase the value of a single transaction, focusing on the lifetime value will allow retailers to design strategies that will be enable them to extract more value of the customer. Further, this approach will aid in customer retention and cementing brand loyalty while ensuring repeat business and creating brand advocates.
Staying abreast with technology advancements that could disrupt: Every new technology that made its headway into the retail industry has led to the disruption of the business, primarily in 2 ways; i) consumers adopted technology faster leading to changes in their shopping behavior and shopping journeys, ii) businesses who were early adopters used technology to enhance their processes and operations which made traditional methods obsolete. Some of the biggest game changers in recent times have been e-commerce, mobile commerce, omni-channel, virtual reality (VR) & augmented reality (AR), Internet of things (IoT), and Artificial Intelligence (AI) being the latest entrant. It is necessary for retail owners to equip their business with the right retail technology for futureproofing their investments.

Gearing up with the right attitude while aiming to work towards making their business better using the above tips will allow retailers to have a Happy New Year 2019.

Malls – One-stop retail shopping destinations!

Posted on December 12, 2018January 10, 2023 by admin

The Christmas festive season is almost here, as is the end of another year and we look for the best in the New Year. The past 2 years have probably been one of the biggest testing times for the retail industry, especially for physical retail. In the wake of the last year, which seen many known retail brands going bankrupt or shuttering stores, debates on whether physical retail would witness an apocalypse because of the rise of online shopping have been happening across the industry; but it seems like the predictors of the doom of physical retail have been silenced, thanks to the reinvention of retail.

Malls still face a threat from e-commerce shopping due to rising number of consumers preferring to shop online. The major reasons being a wide range of options available online, more discounts on online purchases, convenience of shopping from home while avoiding crowds and even reducing the chances impulse shopping. One of the major debates were whether malls would survive the online shopping or e-commerce onslaught, but the numbers are in favor of shopping in a mall. A recent survey indicated that more than 60% of consumers would visit the mall for apparel shopping as opposed to shopping for clothing online, and another 39% prefer to go to the malls, not only to explore multiple retail brands in one location, but also try on and compare clothing options. Malls offer strategic advantages which are still a hit among consumers.

One of the biggest clicks for shoppers visiting malls is the tangibility of products. Brick-and-mortar retail has thrived on the ‘touch-and-feel’ feature that shoppers love when it comes to purchasing apparel, footwear and other items. Moreover, most retail brands would be present in malls and this allows shoppers a fair opportunity to explore different brands belonging to similar categories and then take a conscious decision on what to buy, from where. Another major advantage that malls offer is socializing. Consumers prefer shopping with family and friends or even interacting with store associates to help them find the right product, as they find it easier to seek opinions and then make a purchase. In addition to this, malls are a one stop destination for shopping, entertainment and eating, thus offering wholesome experiences to shoppers for their time and money.

The bottom line is that malls and e-commerce will continue to coexist as consumers will always look at multiple options to satisfy their shopping needs. However, the catch is to ensure customers get what they want and retail brands are able to do that no matter which channel they use.

Finally! A Retail revival, but for whom?

Posted on November 28, 2018August 26, 2022 by admin

Two years ago I wrote about the struggles of the retail industry in my article “Retail is dead! Long live Retail”, it’s nice to see some of the predictions in this article come true! Time to reflect and see what’s next.

The US retail market, the bellwether of the industry, has finally started growing again. Retail sales are surging, up 6.4% YOY from last year this July. Store closures are down 22%.

The growth is being led by Retailers who are getting the consumer back, bringing e-commerce like service to their customers, with click and collect and curb-side pickups, concierge services, frictionless returns, store to home deliveries, and many other services. While physical retail is back, e-commerce continues to grow, interestingly a major part of this digital growth is being driven by retail giants like Walmart.

At the same time, we are seeing a number of brands and retailers heading down the slippery slope. Some of them household names. The market is clearly being divided into those who will make it and those who will not. These retailers have closed unprofitable stores, cut costs, reduced manpower, rejigged their pricing and merchandise, yet they are not able to make it out of the downward spiral. So what is the reason? Since we work with retailers across 22 countries and see some of our customers and friends in both categories, we can clearly see the difference in their approach. Some retailers see technology investments and related service costs as a necessary evil, they do not see them as strategic tools to help them win this wave of transformation both in the industry and the minds of consumers. These are the retailers who are endangered, though they can still turn around if they change their mindsets.

On the other had there are a number of retailers who are quietly embarking on large internal projects to change the way they work with consumers and the service levels they provide, transforming their technology and online presence, bringing Omni-channel and self-service initiatives to the table and using smart ways to price right and brand right and promote the right products to the right consumers. They have brought in change in their existing teams and brought on board a number of new retail experts, worked closely and deeply with technology and supply chain partners, malls and banks to bring about the transformation that’s required. They are making great progress and have a shot at winning the retail race.

The race is still open, and like in any race, there will be winners and losers. May the best retailers win!

This article has been written by:

Naresh Ahuja, Chairman and CEO, ETP Group

Naresh as the Founder, Chairman and CEO of the ETP Group leads the company with a clear focus on bringing enduring value to customers through best practices mirrored in software applications. Spanning 30 years of focus on retail domain expertise and IT development, ETP today, has a strong customer base of market leaders in more than 22 countries across Asia Pacific, India and the Middle East, and is Asia’s leading Omni-channel Retail Software company.

When to start the festive season sales?

Posted on November 23, 2018August 29, 2022 by admin

And yet again the festive season is here. This is arguably the best time of the year for many, as it is also considered to be the holiday season in many regions. Ultimately, this is the time of festivities, color, new beginnings, gifts, and also the best time to shop. This is the right time for retail brands to capitalize and score big to add glitter to their festive season. One important query that retailers seek to resolve is to know the right time to start the festive sales

Officially speaking there is no specific start date for retailers to begin launching their festive season sales. In fact, every year, new standards are set by different retailers, making this shopping season a dynamic one and which continues to evolve further. Having said that, deciding the start of the festive season sale should be typically based on 2 factors:

The nature of the business: The best starting point would be to look at earlier trends of the business and understand what the competition is doing as this will give retail owners a benchmark. Then applying those learnings to their business will help them in taking the right steps towards launching the campaign. Also, it is very important to consider business objectives and align efforts accordingly because the business’ long term goal should be.
The market the business serves: It is important to understand and sense the market trends and the sentiments of the consumers. Various factors such as season, geography, ethnicity, and others, largely influence the target markets’ shopping behavior.

A good example of considering the above to factors for starting the sale is a scenario where a retail business deals with selling products that are generally perceived to be of high value and exclusive, with a limited stock. In that case it would be better to start closer to the festival as the bonuses come in and thus there may be demand for high range products then due to the increase in purchasing power.

Taking into account the nature of the business and its market will really help retailers make the right decisions towards launching their festive season sales.

What is in store for Singles’ Day 2018?

Posted on November 8, 2018August 29, 2022 by admin

Singles’ Day (11.11) 2018 which will be celebrated on 11 November, will mark the shopping event’s 10th anniversary. It would not be an exaggeration to state that 11.11 has grown much bigger than a commercial fair as is now one of the major annual milestones in China’s cultural calendar, thanks to Alibaba. This year, the company and its partners are gearing up to make this event a phenomenal shopping extravaganza, with sights set on trumping last year’s figures, there is definitely something exciting to look forward to for the shoppers.

During last year’s event, 812 million parcels were delivered and this year the stakes have been raised higher as the prediction for the milestone in 2018 is more than 1 billion parcels. This could pose some serious challenges in terms of logistics and delivery. One of the ways the company is planning to counter those and preparing for the rush is by opening what is said to be the biggest robotic warehouse in China. This new warehouse positioned as an internet of things-powered, “robotic smart warehouse” will have close to 700 automated vehicles.

Another important move to tackle the delivery challenges while trying to cope up with changing demands and offering a better experience is ensuring quick delivery. Hence this year, for the first time, goods ordered during the Singles Day event will be delivered directly from the stores to the customers and in some-cases within minutes. Short-distance delivery services will also be available in more than 280 cities in the country.

This year the event will also be expanding beyond China through Lazada, the Southeast Asia online platform owned by Alibaba. This will prove to be a strategic and inspiring move in an effort to magnify the events footprint and globalize it. Moreover, this event will also witness diversification in a bigger way as it will not only be restricted to purchasing products, but also offer purchase of services.

With all this at play, one thing is sure that Alibaba would be looking to offer a brand new seamless shopping experience by heavily relying on technology such as omni-channel, AI, cloud and so on to provide an online and offline, cross-platform supply-chain solution and enabling them to cut inventory costs, while increasing operating efficiency, especially around 11.11, the busiest season of the year.

As Singles’ Day 2018 is poised to eclipse again this year, it is just a matter time when the figures start coming in and provide a clearer picture of how much more extravagant and successful this year’s event will be.

Luxasia Goes Live with ETP Omni-channel Solution

Posted on November 5, 2018June 8, 2022 by admin

ETP Group is proud to announce that Luxasia, the leading omni-channel partner for beauty and luxury lifestyle brand distribution, retail, and e-commerce in Asia Pacific, has gone live successfully with ETP’s Omni-channel Retail Solutions in “Freyja”, its new community beauty hub in the Philippines, with the ETP V5.5 POS, Mobile POS and Omni-channel Connect software successfully integrated with its online store, CRM and ERP.

Why are physical stores important for retail business success?

Posted on October 31, 2018August 29, 2022 by admin

The retail industry has evolved over the past few decades and the customers have now become the prime focus. With the advent of omni-channel retailing, the entire ball-game for businesses has been about getting to the customer wherever they are and whenever they are available. This has driven the necessity of creating and offering shopping experiences that can have a positive and long-lasting impact on the customers so that they do not move away from the brand.

The essential advantage of having a brick and mortar retail store is to introduce the products to customer in the context of an allowing them to experience the products and related services and then build on that experience and relationship in person so that it stays with them. This will then foster loyalty and repeat business while also turning these loyal customers into brand ambassadors for the business. Having a retail store is an opportunity for retailers to allow customers experience tangibility of the products and the services as well as leverage the human touch factor by having store associates to engage with the customers directly for assistance and promoting sales. It is a matter of fact that people influence people and this is one major click that retailers can achieve to connect with their customers and build long standing relationships.

One more aspect of retail stores is when the store is not just used to display products and increase sales, rather it is about leveraging the physical space to create moments and memories that go beyond just selling. For example, in the apparel retail business, having trial rooms have always been a big booster for the business as customers prefer to try out stuff before actually going ahead and buying. So also, other retail verticals like bookstores can provide space for reading and collaborating, or furniture stores can demonstrate some DIY techniques, and so on and so forth.

Thirdly, it would not be an understatement to say that retail stores are the best place for the customer to interact directly with the brand, be it touching or trying out tangible aspects of the brands like products or even coming face-to-face with the human aspect of the brand while engaging with store associates who with the right kind of training can definitely be brand custodians. It is at the brick-and-mortar store that experiential retail can be really demonstrated and experienced.

Thus in this new age of retail, brands that continue with the old line of thinking where the idea is to optimize the floor space purely for sales purposes will definitely see their business plummet. Changing the approach by working on re-purposing every square foot of the space to build that kind of a retail experience that will truly resonate with the customers.

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Author: admin