Technology trends within the retail industry 2023
Technology is continuing to advance and change at a fast rate, meaning that the retail industry will need to keep up. Consumer behaviour can change a lot based on technology, with more customers actively looking for more flexible payment options, sustainable technology within physical retail stores and engaging with different marketing efforts. We’ve written the top 5 technology trends within retail in 2023.
The rise of the Metaverse
The Metaverse is a virtual world that allows users to interact with one another in digital spaces using a virtual reality headset and hand controllers. With the Metaverse being new, retailers have already begun experimenting with this platform to engage with their customers effectively and in an exciting way.
Something that we will have seen in futuristic films in the past is the ability to try on clothes through virtual reality, well, the Metaverse can do that, and that’s why retailers are jumping on this new piece of technology. In this digital space, retailers can create interactive experiences that allow customers to virtually try on clothes and browse their virtual stores. Not only does this enhance the consumer experience, but it’s also a great way for retailers to access data on customer behaviour and trends.
So, in 2023, more retailers will be learning and developing their virtual spaces, with the Metaverse market expected to reach 936 billion USD by 2030.
Retailers must begin to take on different payment methods to suit their consumers. For example, consumers don’t just make payments online with debit/credit cards; they now use Apple Pay, Google Pay, and Paypal. Enabling a wide range of payment options actually pleases your consumer more; having those options at the tip of their fingers results in a faster and much more convenient way of paying.
In 2023, retailers are now also looking into adding the option for buy-now-pay-later schemes like Afterpay or Klarna. Since the Covid-19 pandemic, there is no denying that the average consumer’s buying habits have changed, with them being more cautious with what they spend their money on; however, by incorporating the buy-now-pay-later scheme, you are allowing them to pay in instalments over a select period of time, which is more manageable for some consumers.
Cashless and contactless payments
It’s no surprise that the way we pay will increase with the rapid speed of technological advancement. In 2023, more retailers will adapt to contactless and cashless payment methods. Cashless payments mean more security, saving time and convenience, which is one of the main reasons that they are turning away cash. With only 17% of people preferring to pay with cash, contactless has a clear advantage, so more retailers are adapting to this method.
I’m sure that all of us at least once have been influenced by a product being shown on TikTok; with its vast explosion of popularity since 2020 and a further increase in video marketing, more businesses are choosing this platform as a means of marketing.
According to Hootsuite, TikTok is the fastest-growing social media platform in the world, with 500 million active users; with that amount of users, it is an excellent opportunity for retailers to jump on and reach their consumer base. Additionally, traditional video marketing techniques aren’t being used on TikTok; users go to this platform for authenticity and personal experiences, so more brands are beginning to intertwine humour and relatable video content to sell their products, as this can be the most gripping way to capture their target audience.
With consumers reaching for more sustainable processes and actively choosing retailers that promote positive climate action, retailers will have to turn to green technology in 2023, to meet their customer demand.
Green technology is the use of technology to reduce the negative human impact on our climate. So what does this mean for retailers? Retailers must make it a priority in 2023 to ensure that they reduce their carbon footprint in more ways than none, so sustainable and reusable packaging, using energy-efficient appliances, automatic light sensors in changing rooms/bathrooms and more. All of those changes can make an impact but customers want to see retailers in 2023 actively trying to be more environmentally friendly.
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