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IoT in Retail Market

IoT in Retail Market

Retail Solutions for a Digital Transformation

A digital transformation process is underway in the global market that has generated changes of revolutionary impact in retail trade.

As a result, Retail Solutions for stores located all around the world are evolving in favor of a digitization that redefines the role of the store itself.

With the advent of e-commerce and online platforms, customers are increasingly more connected, and their customer journey moves naturally from one touchpoint to the next.
In such an articulated scenario, the brick-and-mortar store loses its centrality, becoming part of a chain of meeting points between brands and customers, both physical and virtual.

An omnichannel strategy is therefore the future of retail, and in this perspective to be able to count on innovative solutions that make the most out of the IoT in a pioneering way can really make a difference for brands.

 

Omnichannel Retail: promoting meeting points

In a market like today’s, the digital contact points of sale have become a fundamental asset of retail’s customer journey. Today the customer is a "digital client": they browse through the company’s e-commerce in search of inspiration, they satisfy their need for information, and through the store locator they identify the physical store closest to them in order to finalize the purchase.

The path of purchase is not exclusively an unidirectional "online towards the physical store" one, but it is instead a path where the meeting points between brand and client are multidirectional.

The modern customer, therefore, is not satisfied with a single mode of purchasing but is looking for a "hybrid" experience, fluid and perfectly integrated with their "personal shopping experience", in favor of omnichannel retail.

Digital Retail: Products Take On a "Digital Voice"

Digital Retail: Products Take On a "Digital Voice"

Digital Transformation means placing digital technologies at the service of markets, exploiting their potential to create innovations capable of offering new tools for companies and opening new borders.
The revolution of Digital Transformation in the retail sector gave rise to "Digital Retail", a generating phenomenon of complex scenarios in which the physical products also acquire a "digital voice".

It is precisely in this scenario that we witness phenomena of "disruption", i.e. moments of rupture within which new ways of interpreting what surrounds us are born Clayton Christensen, Harvard professor and business consultant, consciously coined the term "disruptive innovation" to talk about a sudden and totalizing modification of market logic due to the effect of a new technology.

 
Clayton Christensen - https://claytonchristensen.com/

 

But if the digital transformation promoting of innovative changes in many sectors is a fluid path that does not encounter resistance in the real, physical world, in the retail sector it must often deal with the non-digitization of products. Despite this, in the sale of retail trade, the need for the transfer of physical goods from the seller to the consumer is an aspect that has not stopped the digitization process of retailers.

Even in the retail market, every process of the Customer Journey is now digitized, so much so that it’s making the old business models of the sector obsolete and unsustainable.

Digital Retail therefore means evolving from a business model focused on the product to a vision focused on the customer and on their shopping experience.

The digital channel allows you to have a continuous and constant relationship with the consumer, integrating all the touchpoints until you get an Omnichannel buying experience.

Fashion Retail: An Increasingly Digital Sector

Even in Fashion Retail, the digital transformation is now an increasingly consistent reality.

The Fashion Buyer, who before the digital revolution bought exclusively in physical stores, is today completely at ease in an omnichannel and strongly digital buying path.

According to a post published on Deloitte on the challenges facing fashion industries in the digital era, the role of consumers has clearly changed.

Thanks to the increasingly massive use of digital technologies and devices, consumers are no longer playing a passive role, and they are no longer satisfied with simply buying fashion products but rather they want to interact with the brand, to have an experience of belonging, to be inspired and inspire the brand itself.

In the Fashion Retail market, consumers use digital channels before, during and after buying.

In such a scenario of digitization, the challenge for many fashion brands is precisely that of not being late compared to consumer expectations but rather anticipating the desires of them.
The state of omnichannel commerce in Fashion Retail has therefore become an essential requirement, as it was revealed in a study published by Osservatorio.net in a thoroughgoing analysis on omnichannel retail. 

This attentive study by the Politecnico of Milan provides us with an overview of the evolution of consumer behavior in an omnichannel perspective, from which the following data emerged:

  • 35.5 million Italians use digital in the purchasing process,
  • 23.1 million Italians use the web at every stage of the purchasing process
  • 6.6 million Italians are "Everywhere Shoppers" (i.e. they relate to a brand by using more channels).

https://www.osservatori.net/it/ricerche/osservatori-attivi/multicanalita

The IoT Supporting the New Needs of the Retail Market

The IoT Supporting the New Needs of the Retail Market

Digital Transformation and Retail market developments have seen new exigencies and new needs emerge from retailers. These novel challenges of retail trade have been translated into technological business tools and innovative digital solutions.

Precisely for this reason, the technologies connected to IOT (Internet of Things) are increasingly utilized in the Retail Market.

In fact, retailers from all over the world use IoT for important actions to support the sales process, such as:

  • monitoring and improving customer experience,
  • reducing costs,
  • optimizing supply chain and logistics processes.

A concrete example of how IoT technologies show themselves as support systems for retailers is the use of tracing sensors.

The sensors in retail can be used for many purposes, for example managing the supply chain and logistics
RFID technology and IoT sensors are used by retailers to monitor goods across the entire supply chain. This allows you to acquire important data such as position, temperature, humidity, and potential damages, thus providing all the information that will optimize quality control and traceability.

IoT technologies help retailers make logistical management more and more efficient, reducing product damage and minimizing losses.

According to a survey mentioned in an article by Deloitte on the Internet of Things, "74% of those who have implemented initiatives such as sensor-based logistics have seen an increase in revenues. "

Articolo di Deloitte sull'Internet of Things
https://www2.deloitte.com/us/en/insights/deloitte-review/issue-17/internet-of-things-supply-chain-management.html/#endnote-10 


Even in the customer satisfaction measurement field, the Retail Market successfully makes good use of IoT technology. IoT sensors connected to a dashboard allow stores to collect customer feedback immediately after acquisition, thus obtaining valuable information in real-time.

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