It is a time for both hope and uncertainty for the global retail industry. As digitization takes over the retail landscape and customers start preferring online shopping to brick-and-mortar shops, new trends are shaping the retail atmosphere. To keep your business ahead of the competition, you need to know the top retail trends to look out for in 2023.
The hikes in prices and escalating inflation rates have complicated things further, forcing retailers to be more flexible with their pricing and promotion decisions. However, some things remain constant, such as supply disruptions, political turmoils, increasing taxation, and disturbances in cross-border trading. Nevertheless, retailers must keep abreast of the future trends that will likely affect the retail industry in the coming times.
Let us look at some of these retail trends of the future.
Top Retail Trends for 2023
E-Commerce is here to stay
As the COVID-19 pandemic took over in the last few years, sales from brick-and-mortar stores have declined considerably. People started to shop from the comfort of their homes, preferring online shopping to brick-and-mortar stores. Moreover, technology and digitization have made it easier to sell and advertise online. There are now 13 to 24 million E-commerce stores globally, while 58% of internet users buy online weekly. With the increase in the trend of online shopping, the demand for ecommerce translation services has also increased.
Although the sales from brick-and-mortar stores have increased with a decrease in the threat of pandemics like COVID-19, analysts still expect the E-commerce shopping rates to remain constant or increase in the coming years. As a result, according to future estimates, the global E-commerce industry is likely to grow to $8.1 trillion by 2025.
Considering the scope, it’s wise to expand your reach to multiple foreign markets. Professional translation company can be of great help in this regard.
Self-service Checkout is the New Boss
Gone are the days when consumers had to wait in long queues at the counters to check out their purchases. Today, customers use self-service checkout options and apps that let them check out faster after shopping. Some of the significant factors which are driving this demand for self-service checkout are:
- A hike in the cost of retail store space
- Increasing consumer queue times
- Rising labor costs
- A desire to achieve a “personalized” consumer experience
As a result, the self-service checkout market rose to $3.4 billion in 2021. As retailers try to find ways to automate processes and save costs, customers are seeking more personalized experiences in shopping. This rate in self-service checkout is likely to grow at an annual compound growth rate of 13.3% by 2023.
Personalization is a part of the Customer Journey
As new technologies emerge, retail touchpoints are further refined to provide customers with a personalized experience. Personalization has reached such levels that product recommendations are tailored to a customer’s past purchases and preferences. Preferred language is also an important factor to consider. For instance, if you are dealing with the french market, it is suggested to hire french translation services for a better, more personalized experience.
Moreover, a customer’s search history also gives an insight into his purchase behavior and choices, which retailers now use to tailor their product offerings.
Take the example of Nike, which enables its customers to create custom-designed sneakers with its Nike By You program or Stitch Fix. This program uses a combination of in-house stylists and complex natural language processing algorithms to deliver curated clothing collections to customers. When customers choose their product, the algorithm “learns” from their feedback. In this way, these ultra-personal touches engage customers emotionally while inspiring additional brand loyalty.
Digital Experiences Lead the Way
The digital revolution in retail offerings is opening doors for a more extraordinary experiential shopping experience for customers. This is the reason why customers of today crave more hassle-free, consistent, efficient, and memorable experiences.
This digital offering has given impetus to the concept of metaverse–immersive digital environments where users can work and play in a digital platform. Virtual Reality (VR) and Augmented Reality (AR), significant parts of the metaverse, deliver the most immersive connecting method for consumers to connect to these digitally created worlds. Retailers across the globe are already using AR and VR to develop innovations such as virtual dressing rooms. Retailers such as Walmart, Hugo Boss, and Amazon allow users to virtually try new clothes by using digital versions of themselves.
As customers seek a more excellent immersive experience that lets them become a “part” of the overall experience, it can be expected that retailers will adopt these technologies and continue to innovate in the coming years.
Contactless Payments and Shopping on the Rise
As the COVID-19 pandemic struck, retailers resorted to implementing contactless payment methods as a safety precaution for in-store shopping. Contactless payment methods quickly became the norm, as they provided convenience to customers, saving them valuable time that would otherwise be spent counting cash and signing receipts. According to research, almost 8 in 10 customers prefer contactless payment methods, while 57% of consumers said they would more likely do business with retailers offering contactless payment options.
This contactless payment method has now opened doors for AI-powered cashier-less stores where customers only have to scan their cell phones when paying for their purchases. The amount they owe will be automatically subtracted from their accounts. It is expected that more retailers will adopt this method in 2023 and beyond.
As digitization takes over the retail industry, global retailers must change and tailor their product offerings to the customers. Suppose you are a retailer looking to connect with a worldwide customer. In that case, you need a strategy, such as hiring Portuguese translation services to attract Portuguese customers.
The future trends shaping the retail industry call for a shift in how retailers connect and interact with their customers. Retailers must embrace new trends to stay ahead of the competition in 2023 and future years.