In addition to offline shopping, online retail is more important than ever for the retail industry: Companies must not only reach out to and interact with their customers through digital channels, but also manage inventory and promotions more efficiently. This is driving a significant increase in global IT spending: a 3.6 percent rise is expected compared to 2018. According to Gartner, global spending on retail technologies will total $203.6 billion in 2019.
Reason enough for Tech.—a collaboration with the UK news magazine Retail Week and the World Retail Congress, one of the world’s largest retail events—to interview C-level and managerial-level retail experts from Germany, the United Kingdom, France, the United States, and Russia about digital transformation as well as new technology trends and strategies.
Some interesting findings from the technology survey «A World in Motion: Retail Digital Transformation Across the Globe, and the Technology Supporting It»:
- In Germany, retailers already have a strong understanding of how new technologies affect their businesses. As a result, 60 percent are investing in voice technologies, among other things.
- In the U.S., 75 percent of retailers say that the urgency of digital transformation is increasing. Forty percent are already using artificial intelligence, and new payment methods are also very popular.
- In France, half of those surveyed are already using robotics, and artificial intelligence is also a key item on the agenda. To drive digital transformation and make effective use of these technologies, 90 percent of retailers believe that, above all, a shift in mindset is needed at the executive level.
- In the United Kingdom, one-third of retailers plan to invest a six-figure sum over the next 18 months. Visual search tools are at the top of their wish list, as they aim to provide customers with a more intuitive shopping experience.
- Russian retailers also believe that digital transformation requires a new approach to business management. However, three out of four retailers admit that there is currently a shortage of skilled workers. Currently, 75 percent of companies are using technologies based on artificial intelligence.
Retailers in these markets are under significant pressure. The growth and complexity of e-commerce mean that companies must operate more efficiently and cost-effectively to remain competitive. At the same time, they must find new and creative ways to attract and retain customers.
In Germany, voice search is therefore a popular tool, with a 60 percent adoption rate. This allows users to quickly, easily, and conveniently ask a question or express a product request via their mobile device or a connected speaker. Otto is one of the first German retailers to enable its customers, through a partnership with Google, to enter product requests via the app using a voice assistant.
Visual search is proving very popular among 45 percent of retailers in the United Kingdom, especially when it comes to selling high-priced items. It gives customers a much better sense of what a new kitchen or sofa would look like in their own home. In France, robots assist with product picking in large warehouses.
Poppie Mickleburgh, Event Director at Tech., summarizes: «New, innovative technologies are opening up opportunities for the retail industry that would have been completely unthinkable just a few years ago. All markets agree that digital transformation should be at the top of the priority list. How individual countries are approaching this and which technologies they prefer is fascinating and offers international peers the opportunity to learn from one another.»