The future of retail: 4 trends to follow so you don’t get left behind

A new age of retail

As we rang in the New Year, many of us were aware that 2020 would be a year of transition for the world of retail. However, even the most skilled forecaster couldn’t have predicted just how dramatic the pace of transition would be. In fact, it is difficult to estimate what the true effects of the current pandemic on society will be. Despite the obvious health and economic challenges felt in all corners of the world, it has already caused a rapid digital transformation that has radically altered the face of retail.

A new age of retail is dawning globally, yet retailers have never been more uncertain as to how they are going to be able to operate in the future. In order to help guide retailers through this transition, Wirecard conducted a survey of 5,000 consumers from around the world. The results provide fascinating insight into emerging technology trends as we look to predict what the future of retail may look like.

Advance your retail-tech capabilities

In many cases, the retail industry has been slow to implement the technologies that consumers crave thereby neglecting signs that the future of retail in dawning. In the United Arab Emirates, 68% of respondents were interested in using their fingerprint to confirm purchases, yet only 3% had so far had the opportunity to try it. In Brazil, 57% wanted to use facial recognition, but only 1% had. Meanwhile, in China only 4% had used voice recognition to make a payment, whereas almost eight in ten (79%) were interested in trying the emerging technology.

Now is the time to improve your retail technology capabilities. For some consumers how they pay is just as important as the price they pay, with studies suggesting that almost three quarters of people believe customer experience to be an important factor in purchasing decisions. For those that might still be sceptical, think back to the use of self-checkout facilities in grocery stores: initially shunned by some consumers the technology is now used by four-in-five (81%) consumers.

It won’t be long before other technologies are also ingrained into the consumer’s retail psyche. Virtual reality could be the one to lead the pack, with as many as 78% of respondents to our survey saying they would like to use it to try on items of clothing prior to purchase.

The new sales floor

With most brick-and-mortar high street stores forced to temporarily close during the COVID-19 pandemic, the trend towards mobile has accelerated quicker than anyone predicted. Today, smartphones are the new sales floor. The use of mobile wallets is rapidly moving past the morning macchiato too; four in five (81%) consumers in our survey said they are now willing to use mobile wallets to pay for big-ticket items too.

Mobile is certainly king in 2020. In total, nearly half of consumers globally (47%) use mobile wallets as a payment method. Another 54% of consumers would like to see the technology implemented or improved. The key for retailers is to ensure that their mobile offerings are seamlessly integrated into their wider infrastructure so that they can tap into the mobile trend moving forward.

Taking retail into the home

As consumers around the world have been forced to take their spending online and on mobile, it is those businesses that have been able to quickly adapt to the “new normal” that have been the most successful. If you have struggled to keep up with these changes, it is not too late. The key is to effectively integrate your offerings into the daily life of your customers; getting your brand back in the hands of consumers, metaphorically and physically.

We live in the era of convenience. From movies to meals, society centres around a want-it-now culture. Not only are consumers forced to spend more time at home this year, homes have increasingly become connected and smart. So much so, that over three-quarters (78%) of respondents to our survey said that they were likely to shop via smart home devices. Similarly, two thirds (66%) said that they would like to re-order out of stock groceries via a smart refrigerator.

The value of data

There has been a real shift in consumer attitudes towards trust recently, leading to the emergence of data-as-a-currency. More than half of respondents (52%) to our survey said that they would provide fitness/health data or information on their personal preferences in exchange for goods and services. Over a third (36%) would be even be willing to offer photographs or details of private chat conversations as part payment. Whilst regulations need to be adhered to, it is an interesting area for brands to explore as it has the potential to bring them closer to their customers than ever before with the opportunity to offer more bespoke goods and services. We’ll be exploring this subject in more detail in a future blog article.

Don’t be left behind

The future of retail is undoubtedly digital, and the future is now. In the current pandemic, digital pioneers are clearly set to make it through the crisis intact while boosting their attractiveness in the fight to win and keep customers. Don’t be left behind.

Download our free report “Retail 2020: The Road Ahead” here.