Top 10 Retail Trends and Forecasts for 2020
With 2020 right here with us, it is time to look ahead and find out the retail trends we can expect to see next year. Since the IT industry is very dynamic, there are some new technologies that are appearing on the market, and existing ones are being perfected to allow retailers to expand their customer base. Let’s take a look at some trends you can expect to see in retail in 2020.
1. AR Shopping
Augmented reality is one of the most innovative retail technologies that are here to stay because it allows companies to bridge the gap between brick and mortar stores and e-commerce. For example, industry leaders like Ikea and Target are already using AR to sell furniture. If someone is shopping for a couch, it can be difficult to imagine how it will look like in their home. AR technology can help them make this connection and allow retailers to increase sales by eliminating customer hesitation. Therefore, expect even more brands to start incorporating augmented reality solutions into their service offerings.
2. Item Customization
One of the most interesting and creative retail industry trends is customizing the products that you are buying. Everybody loves to have something unique because, in some sense, it is a sign of luxury. However, to actualize this and other new retail concepts, you need to have a website and a mobile app that will provide users with almost unlimited options as far as customization is concerned. Your shoppers might be very creative, and you need to have the necessary technology to make their vision a reality.
3. Visual Search
Artificial intelligence is doing a lot of the new retail shopping trends possible, and visual search is no exception. Shoppers love this new feature because it allows them to find the exact product they are looking for. Some industry leaders such as Pinterest are already using this technology to increase user engagement and help people find what they are looking for by incorporating computer vision technology into the camera in their mobile app. As a result of this implementation, user searches have increased by 140%. The results speak for themselves.
4. Social Shopping
Combining retail and social media seems to be the future of retail in 2020. The reason for this popularity is because people are heavily influenced by what they see on social media and are tempted to make a purchase right away. If they can do so without existing Facebook or whatever platform they are on, this will further stimulate them to buy the product.
5. Digital Advertising Will Play a Bigger Role
Even though the costs of digital advertising have increased over the past year, its value has also gone up as well. For example, let’s take a look at advertising on Amazon. A lot of the competitive keywords have a cost per click of more than $2, but in the first and second quarters of 2019, Amazon advertising accounted for about 25% of those brands total sales who paid for the CPC keywords.
6. Google Shopping at a New Level
If you are unfamiliar with Google shopping, this is a new service offered by the internet giant that allows customers to compare physical products across many retailers and purchase the ones they like. This is very convenient because people can do all of their shopping without even leaving Google. For advertisers, Google offers things like shoppable ads, smart shopping campaigns, and many other functionalities.
7. New Channels for E-commerce Brands
Nowadays, brands have a lot of different options to reach new shoppers. One of the new platforms people are using is TikTok, which claims to have more than 30 million active users a month in the US alone and 150 million around the world. In fact, it was the second most downloaded app from both Google Play and the App Store.
8. Autonomous Delivery
The very last part of the delivery process, getting the product to the customer’s door is the most expensive aspect of the process. Companies like Amazon are trying to reduce the costs by starting automated deliveries. You can expect autonomous deliveries to become popular for commonly ordered things like pizza and groceries.
9. Expansion of Data Collection
Retailers are continually looking for new ways of acquiring data in order to learn more about their customers and offer them a more tailored experience. Currently, a lot of companies are relying on cookies inside internet browsers for data collection. In 2020, expect this to expand to IoT devices. In addition to data collection, they will need tools such as PowerBI, Splunk, and Tableau to make sense of it all.
10. Store Will Embrace the IoT
The IoT is a growing trend that retailers simply cannot ignore. In fact, it is estimated that there will be more than 309 billion IoT devices in operation next year. Companies can take advantage of this technology by sending customers alerts about relevant products when they travel close to the store, offer automated checkouts and smart shelves.
You can expect to notice the trends forecasts mentioned above, even in early 2020. Retailers are constantly looking for ways to provide their customers with a unique experience and build relationships. These technologies certainly do this job a lot easier, which is why brands will rely on them more and more next year.