A generation ago, if people were told they could purchase products through phones, it would have led to ripples of laughter. But today, consumers are using various digital devices, including mobile phones, to order various products and services. 

Since the new millennium, the retail landscape has undergone paradigm change. The initial phase opened with e-commerce as brands and buyers both began transacting online. Whereas the security concerns of consumers and traders meant online transactions only gained gradual popularity, the scenario was transformed almost overnight after the pandemic broke out in 2020.  

Hybrid Models and More

Suddenly, retailers and shoppers were cocooned indoors due to the nationwide lockdown. As in-store footfalls fell, digital-native retailers (online platforms) majorly scaled up business. Soon, the traditional brick-and-mortar outlets discovered the virtues of an online presence to keep business continuity plans running.  

Before long, even as lockdown restrictions were eased, the criticality of retaining a digital presence was apparent to retailers, including the significance of having a hybrid or omnichannel business model. Simultaneously, shoppers were discovering the benefits of buying online. 

Currently, virtual shopping remains one of the most exciting prospects. Before proceeding further, let’s understand what virtual shopping is all about. An e-commerce service, virtual shopping permits consumers to browse and buy products online just as they would do inside brick-and-mortar stores. In other words, virtual shopping deploys technology to introduce the human element in digital commerce via channels such as video chats, live chats, and co-browsing. 

Virtual channels are run by contact center agents or customer service executives, who work either remotely or in-store. Thereby, retailers can provide consumers with a seamless shopping experience while building a human connection, irrespective of whether people are buying online or in person. 

While the chat forms are self-explanatory, co-browsing requires some elaboration. Collaborative browsing or co-browsing refers to the use of technology that permits agents to access a consumer’s browser to navigate this in real-time. Through joint navigation of web pages, retail agents can interact and collaborate with customers online. In this way, it’s easier for retailers to provide sales assistance or customer support, boosting consumer engagement. 

Particularly after the lockdown, fast-evolving needs and rising expectations of customers have nudged even reluctant retailers to embrace digital tools to keep business going. Although this was not difficult for e-commerce enterprises that had made the transition earlier, physical retailers had to quickly learn the ropes of operating online.

The retail trade has always pivoted around providing enjoyable shopping experiences to drive greater customer satisfaction. But this isn’t as easy as it sounds because many buyers prefer to first feel, touch, and try the product before finally purchasing it. In the contactless world of digital retail, however, providing a high-touch experience required vibrant use of digital tools and innovation. This led to the emergence of livestream shopping, virtual retail, and BOPIS (buy online, pick up in-store). 

The Future of Retail

In 2022 and beyond, the future of retail vests in the omnichannel model, where shopping will be personal, seamless, customized, and innovative. Whereas customers will wish to buy whatever they want as and when required, they also expect retailers to provide them with the right products as per their preferences. As a result, retailers need the right combo of omnichannel tools to meet consumer demands and simultaneously enhance their retail experience through bespoke products and services. 

In essence, the future of retail isn’t about moving everything online. Rather, it will depend on offering customers the requisite products online or offline, depending on their needs. Therefore, it is necessary to synchronize all online or offline operations so that varied touchpoints work in tandem. For this, retailers must use integrated tools that sync inventories, track orders, curate loyalty programs, and sell on social media. 

If all elements fall in place, customers could be provided personalized, connected experiences running across channels, complementing online orders with an equally satisfying in-person shopping trip. 

The Future of Retail Report (2022), notes that one-third of retailers in the UK will invest in livestream shopping this year. Livestream shopping over video gained popularity after the pandemic when retailers sought various ways to showcase their products and engage with customers. Livestreaming can be done via Instagram Stories to show customers new stock that’s in the store or by using an iPad. Retailers can interact in real-time with customers through livestream sales. As per The Future of Retail Report, 21% of consumers evinced interest in livestream shopping through live online videos, with the number jumping to 35% for millennials.

Coming to BOPIS, this mode is favored by both buyers and merchants as many people prefer checking a product in person before buying it. Accordingly, buyers browse and buy a product online and then pick up the item later from a physical store. Unsatisfied customers can choose a better product alternative. Retailers are also happy with BOPIS since sales are assured through the multiple choices available without worrying about a refund as with online orders. 

The other interactive mode is sales through social media, termed social retail. The Future of Retail Report notes that 75 percent of surveyed retailers reveal they are driving sales through social media. Also, 43 percent of these retailers say 50 percent or more revenues are derived from social media selling, with the most earned from Facebook, Instagram, Twitter, and TikTok. 

VR (virtual reality) is another way of providing customers with an immersive shopping experience through a simulated environment. Not surprisingly, 30 percent of retailers would use VR to offer customers an immersive experience before they add products to their cart. 

As things stand, VR, social media, chatbots, checkout links, and other digital tools are helping retailers connect effectively with consumers every time and everywhere they seek to shop. In a nutshell, digital tools are opening up umpteen opportunities to drive greater sales through more enjoyable customer experiences with interconnected online and offline touchpoints.