One more time: There are few (if any) of us working in fashion these days that have not been laid off.
The retail environment has been undergoing a seismic shift in recent years. At its heart lies the intersection of the physical and digital worlds that makes up our lives. This has changed retail beyond what people on the street (or in malls) can imagine. This change, referred to as “phygital” retail, alters how consumers interact with brands; and the decision-making process toward purchase starts to change. Using digital technology, retailers are finding fresh ways to integrate the sensory and experiential characteristics of shopping with online efficiency and personalization. Retailers are now trying to remove the barriers and make further changes in their digital stores so as to bring real benefits.
The Rise of Omnichannel Retail
Designed to bring about this revolution in business, this coming process is called omnichannel retail. It seamlessly combines different types of shopping channels: there are the off-line opportunities provided by brick and mortar stores; there are on-line purchasing options enabled through a computer or mobile phone; and anywhere relevant social networking sites act to expand product information as well as word-of-mouth influence in decision making by consumers among themselves. Thus, customers can now browse products on the web before actually visiting shops in person and use their mobile phone to purchase them — all without any feeling of friction. This level of seamless integration not only makes things more convenient but also results in a more consistent brand telling at every stage along a customer’s journey.
Technological Innovations Driving Phygital Retail
A number of technological breakthroughs are now driving the fusion of physical and digital retail. Foremost among these are Augmented Reality (AR)—which lets customers see products as they actually appear in place within their home or a virtual shop—and Virtual Reality (VR). Together these two technologies empower customers to try out goods “in situ” at home and even have the opportunity for piracy in make-believe stores. For example, beauty brands employ AR to allow their customers experiment with makeup in virtual space; and furniture sellers offer VR experiences that let shopping people check out their products as if in a virtual residence.
IoT, also known as the Internet of Things, is a game-changer. IoT devices are used to collect information about aspects of stores such as sales and inventory control, as well as customer behavior. This data a computer needs before it can be used to personalize the shopping experience in real time./ At “smart stores”, connected devices can now create a very good shopping experience in real time for you. Smart mirrors, for example, will suggest outfits of clothing to match what you are trying on. Bluetooth beacons that know she’s in, send personal offers to her phone while walking through the aisles; these are just a few examples of how IoT is transforming the shop itself.
Data and AI
Data Management & AI Analytics It is absolutely essential that artificial intelligence (AI) be applied if we want to understand customer behavior and then predict it, especially when we are fusing the physical with the digital environment. By using AI to analyze vast amounts of data from online and offline interactions, retailers hope to offer customers the most thoroughly personalized shopping experience possible. For example, AI-powered recommendation engines use a customer’s browsing history, purchasing behaviour or even the weather in her location to recommend products to her.
In physical stores, AI is gaining a foothold in inventory control and customer service. Some retailers use AI chatbots or virtual assistant systems for guidance over the buying processes whether customer is online or on site. These technologies guarantee that regardless of where she shops clients always get a consistent but customized shopping experience.
The Future of Phygital Retail
As consumer expectations continue to evolve, retail’s future is likely one that will see a more intimately integrated mix of physical and digital experiences. Stores as a business service are emerging. Physical outlets will no longer be simple points of sale, but they are likely to operate as experience centers. For example, they could offer workshops and events or personalized services that can’t be duplicated online—all of which will help draw visitors to their doors more frequently and make customers feel greater loyalty to the brand. With the rise of artificial intelligence, augmented reality and Internet of Things technology, choice in retail grows ever more limitless. Imagine a world where online shopping is tailored to follow the individualized leisure activity patterns and tastes of each customer, or where such personal but as-yet-nonworkable experiences unfortunately exist. Is this an absolute end to friction in commercial navigation?
Conclusion
The evolution of retail has been a field of innovation in its own right, with changes still continuing. By integrating the two experiences, physical and digital, retailers not only maintain the buying habits of modern-day customers; they also find new points of connection and growth opportunities. As this trend takes shape the line between online and offline shopping will become still less clear, possibly ushering in a new era—lively but single-mindedly focused on retail itself.