The retail industry is undergoing rapid transformation, driven by changing consumer expectations and the rapid expansion of the digital economy. This year’s e-Conomy SEA 2024 report highlights the region’s robust digital economy, which is projected to grow by 15 per cent year-over-year, reaching US$263 billion. Revenues have seen a 14 per cent increase, with forecasts indicating they will reach US$89 billion in 2024.
This growth underscores how digitalisation is reshaping the retail landscape, creating new ways for businesses to connect with consumers. For today’s shoppers, the ability to choose where and how they shop is non-negotiable.
Shoppers demand seamless, personalised experiences, and the lines between online and in-store shopping are fading fast. This new era of retail brings both opportunities and challenges as retailers strive to meet heightened expectations while maintaining operational efficiency.
A recent global shopper study by Zebra Technologies revealed a shift in shopper satisfaction. While consumer spending remains steady, shopper satisfaction is declining. In the Asia Pacific region, satisfaction with in-store shopping dropped from 81 per cent in 2023 to 78 per cent in 2024, and online satisfaction fell from 80 per cent to 75 per cent.
Meanwhile, 78 per cent of shoppers favour retailers with an omni-channel presence, and 78 per cent of shoppers prefer to shop with e-retailers that also have brick-and-mortar shops. Shoppers no longer see online shopping as a mere alternative but expect a seamless integration across different channels.
The new retail reality: Greater variety, greater complexity
Modern shoppers arrive at the store informed and expect retail associates to provide value beyond transactions through personalised insights and tailored recommendations. According to Zebra’s study, around 77 per cent of APAC shoppers are more likely to try and purchase items when retailers demonstrate an understanding of their preferences.
Offering consumers more choices come at a cost. Services like buy-online-return-in-store (BORIS), same-day locker pickups, and on-demand delivery have become essential offerings, but delivering these conveniences often complicates backend operations. With the proliferation of an increasingly popular ‘spend-and-return’ culture, retailers today need to spend more time and resources than usual to ensure that the back-of-house operations run smoothly.
Eighty-five percent of APAC retailers and associates reported challenges with both click-and-collect and returns options, citing challenges to confirm current inventory and pricing. Coupled with persistent labor shortages and inventory losses, these challenges risk slowing operations and disappointing customers.
Without better ways to handle this increased workload, organisations may end up experiencing stockouts, inefficiencies, and a loss of productivity—which ironically could lead to fewer choices and a poorer shopping experience.
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Bridging the gap with modern retail technology
Retailers can address today’s toughest challenges with advanced retail technologies such AI-augmented mobile computers, connected RFID readers, and cloud-based workforce management systems without comprising efficiency. Research shows that modern RFID readers can improve inventory accuracy and reduce stockouts while lowering costs and boosting revenue.
Additionally, another research affirmed that retail management software enhances retail operations by providing businesses with automation capabilities, improved collaboration, and enhanced visibility.
Here’s how retailers can best use these technologies.
- Enhancing inventory visibility and fulfilment efficiency
Modern technologies like RFID scanners and mobile printers are transforming retail operations by dramatically accelerating productivity at the back-of-house, allowing businesses to better deal with the rapid pace of omni-channel sales and returns.
These devices collect data that provide complete, real-time view of inventories across the organisation, thereby optimising returns and ensuring products are where customers expect them to be, at all times.
Even taking baby steps with modern retail solutions can yield significant efficiency gains. For example, Malaysia’s largest prescription pharmacy chain, recently improved its capacity to fulfil e-commerce orders by five times and efficiency of fulfilment by 80 per cent just by deploying modern mobile computers and RFID sled readers.
- Empower retail associates with data-driven tools
Retail associates are pivotal to the omni-channel shopping experience, but they need the right tools to meet modern demands. Equipping them with modern devices like mobile computers and wearables, enables them to accelerate pickups and returns, reduce wait and checkout times, or make more informed decisions during service recovery.
According to Zebra’s study, 41 per cent of APAC retailers believe that Generative AI (Gen AI) will have an extremely significant impact on inventory management and demand forecasting.
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Gen AI on these devices also further enhances productivity by providing employees with real-time personalised information. From summaries of return policies governing BORIS for specific lineups, to tailored product recommendations for in-store customers, Gen AI empowers retail associates to add a personal touch to every interaction.
Additionally, giving shoppers their own mobile shopping devices can elevate the customer experience. A Sri Lankan supermarket chain with 130 supermarkets conveniently located across the country, recently deployed such devices in-store, which enabled their shoppers to scan items as they shop and get recommendations on promotions – leading to reduced wait times and increased operational efficiency.
- Transform data into actionable insights
Businesses can leverage modern retail management software to fully harness the potential of the data collected by devices across the store. By using AI-driven predictive insights from historical data, retailers can better forecast demand, stay ahead of market trends, streamline stocktaking processes, and improve loss prevention.
Future-proofing for an evolving landscape
The retail sector continues to evolve, shaped by the expectations of emerging generations and their demand for hyper-personalised, seamless experiences. To stay ahead of these changes, retailers must future-proof their operations by adopting modern retail technologies, including AI-powered software, connected devices, and advanced data analytics.
These solutions not only enhance efficiency today but also enable retailers to anticipate and respond to the trends and preferences of tomorrow’s consumers. By embracing these innovations, businesses can remain agile, resilient, and prepared for the next wave of retail transformation.
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Image courtesy: DALL-E
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