Future of Retail in 2020-2025 - Speech or Presentation Example

Future of Retail in 2020-2025

Introduction

As per Alison Kenney (“Retail Industry Outlook”), the main drivers of retail industry is convergence and diversification where retailers are adapting varied schemes and inventive methods to improve their services. This helps the entities to grow competitively in the area served with high loyalty and consumer base that is good for their sustainability (Alison Kenney, “Retail Industry Outlook”). The major changes that the retail sector has experienced over years are mainly due to advancement in technology via digital, social websites and mobile applications (Alison Kenney, “Retail Industry Outlook”).

The sector has been segregated into categories; store and non-store whose contribution in the total sales currently is 82% and 18% (Deborah, “What will retail industry look like in 2020”). The non-store retail segment is dominated by online sales that after 2020 will contribute nearly $475 billion (80%). The total sale for the segment in the coming years (2020) is going to raise more than $ 3.2 trillion (Deborah, “What will retail industry look like in 2020”). With technological advancement and wider options, consumers are becoming more powerful, educated and modern while making their purchases (Deborah, “What will retail industry look like in 2020”). The shopping patterns and customer habits are changing frequently that is going to change the whole outlook of the retail industry from 2020- 2025 (Deborah, “What will retail industry look like in 2020”).

Through this essay, a brief outlook of retail industry from 2020-2025 is going to be discussed. The key drivers that will be the reason behind the transformation and possible scenario in the future market will be pointed out.

Key change Drivers of retail Industry

Government in order to protect the environmental degradation is instructing companies to reduce waste and carbon emissions (Deborah, “What will retail industry look like in 2020”). Accordingly, the consumers have also become more concerned towards environment protection and prefer economic sustainable companies (Deborah, “What will retail industry look like in 2020”). Retailers are changing their pattern of operations by adopting advanced technical know-how like recycling (Deborah, 2016). For instance, Nike and Patagonia are companies that take back their used items to recycle them for future purpose (Deborah, “What will retail industry look like in 2020”). Therefore, changing consumer habits and advanced technologies will be the key drivers for the future retail market.

Retail in 2020-2025

Some of the technology that is going to change the outlook of fashion, gadgets and grocery segment can be as discussed below:

Own Custom Lipstick

Stores are going to have fewer products with high customization function. For instance, there is a shop named Bite Beauty in New York where the customers have an option to customize their desired lipstick shade within few minutes (Kendo, “The Perfect Bite”). The advantage of these lipstick shades are that they are made from extracts and pigment of organic fruits like pomegranate which are blended in a sterilized light box as illustrated in figure 1.

The ingredients used in the lipstick are as per customers’ requirements like the color they want, the type of finishing (matt, glossy) or the fragrance (mango, cherry, peppermint). After deciding the mixture and texture of lipstick, it is put into a circular mold and is heated at two degrees Fahrenheit till it hardens (Kendo, “The Perfect Bite”).

Figure 1: Customizing lipstick shades as per client choices

(Source: Catherine, “Crafting a Custom Lipstick at Bite Beauty’s SoHo Lip Lab”)

The entire process takes nearly seven minutes to finish. Based on this example, it can be said in future, women will be having option to get a perfect match of their dress within few minutes before going to a party. Fashion stores of the retail outlets will be equipped with this advanced technology to serve the customer within few minutes and with use of organic matters.

Made to measure Suit

Joseph Abboud has created an iPad application termed as “Made to Measure” through which users can have access to fabrics and style they want in their suits (Lauren, “What if there was a better to purchase a “Made to Measure” suit”). The design for these suits can be completely customized by the users by mixing the lapels, pockets or vents the customers like to have in their suits (Lauren, “What if there was a better to purchase a “Made to Measure” suit”). After finalizing the design, it can be ordered directly by the client to the factory through the application (Lauren, “What if there was a better to purchase a “Made to Measure” suit”). The technologically advanced design help the customers to refine their own looks based on their preferences where the product is delivered to the consumers within two weeks (Lauren, “What if there was a better to purchase a “Made to Measure” suit”).

Figure 2: iPad Application- Made to measure

(Source: Lauren, “What if there was a better to purchase a “Made to Measure” suit”)

Figure 2 and 3 illustrates the design and suits options that customers can have through a single application and that can be ordered from the factory directly. Thus, people instead of visiting the physical stores to offer their measurements can order for their suits online with correct measurements and choice.

Figure 3: Customization Options for suits

(Source: Lauren, “What if there was a better to purchase a “Made to Measure” suit”)

Wonderlabs

Instead of opening new malls and supermarkets, IT giants will be coming up with Wonderlabs where people after going through features available in gadgets can book them for future purchase. For instance, Google opened “Winter Wonderlabs” for its electronic items like Nexus 7 and digital TV receiver Chromecast (Rob, “Wonderlabs: Google Promotes Devices in Pop-Up Showrooms”). People visiting the place were having an option to record themselves in slow motion playing with the fake snow with the help of available gadgets (Rob, “Wonderlabs: Google Promotes Devices in Pop-Up Showrooms”). This was a technically advanced way to make the people familiar with the features of gadgets (sales promotion).

Figure 4 illustrates the Winterlabs launched by Google in order to offer its customer a new mode of display where they were able to play music, take pictures and browse net with a snowy background.

Figure 4: Google's Winter Wonderlabs

(Source: Rob, “Wonderlabs: Google Promotes Devices in Pop-Up Showrooms”)

Robots in the Retail Stores

Companies like Amazon have used robots at warehouses for movements of the items but it is being predicted that retails shops in future is going to replace human staff (Jeff, “Robots move beyond warehouses, into retail stores”). Best Buy is a store located in New York that is utilizing a robot named Chloe to check the inventory level of various items (Jeff, “Robots move beyond warehouses, into retail stores”). Another chain, Orchard Supply Hardware is using a machine named OSHbot to assist the customers in finding items that are looking for in the stores (Jeff, “Robots move beyond warehouses, into retail stores”).

Figure 5 illustrates the robot being tested by the retailers in the stores for assisting the customers. A survey was conducted by experts to understand the experience of consumers for these machines where maximum positive response was achieved (Dlane, “As robots starts to take over retail, will there be any job left?” ). Stores of Best Buy consist of nine touch screen machines from where customers can pick and select item for purchase (Dlane, “As robots starts to take over retail, will there be any job left?”). Robots present in the store have arms that retrieve items and drops them off to the customers within few minutes (Dlane, “As robots starts to take over retail, will there be any job left?”).

Figure 5: Robot at a retail store

(Source: Jeff, “Robots move beyond warehouses, into retail stores”)

Shopping experiences is completely going to change after 2020 as technologically advanced products will save the time of consumer.

Figure 6: OSHbot in Orchard Supply Hardware

(Source: Dlane, “As robots starts to take over retail, will there be any job left?”)

Virtual Shopping Cart

Hointer Beta, a store located in Washington, is considered an innovative apparel store that is targeting men who does not waste too much time on shopping (Craig, “US retailer Hointer uses robots to deliver your selections to the fitting room”). The store is supported with robots and mobile application without any labor assistance for serving the customers (Craig, “US retailer Hointer uses robots to deliver your selections to the fitting room”). The modern outlet is offering the company to have reduced cost as no labors is employed and major portion of its sales comes from online segment (Craig, “US retailer Hointer uses robots to deliver your selections to the fitting room”). Shopper after installing the company’s application on their smart phones and iPhone can try out the clothes present at the store and can order them throughout virtual shopping cart (Craig, “US retailer Hointer uses robots to deliver your selections to the fitting room”). The product collection on the application ranges from 150 styles of jeans with belts and shirts.

Figure 7: Hointer Retail Store uses robot and application to deliver clothes to the fitting room

(Source: Craig, “US retailer Hointer uses robots to deliver your selections to the fitting room”)

Figure 7 illustrates the store outlet of Hointer where there are no workers used for serving the customers. The most interesting part of the store is that the clothes tried by shopper over the application arrives the dressing room within thirty seconds (Craig, “US retailer Hointer uses robots to deliver your selections to the fitting room”). The cloths that do not fit to the customers are automatically removed from the shopping cart.

Conclusion

The retail industry in 2020-2025 is going to be more customized and technologically advanced. In this essay, varied examples of the retailers that are using technology as a means to transform the shopping experiences in the coming generation, has been highlighted. Some of these entities discussed in the essay are Google, Orchard Supply Hardware, Bite Beauty and Best Buy. Fashion and gadget segment is going to experience largest modification where consumers will be able to customize lipstick and suit as per their preferences. Instead of opening new stores, the retailers can be initiating Wonderlabs where items will be tested by the people in innovative environment as Google’s “Winter Wonderlabs”. The concept of sales promotion and trial room is going to be substituted with robots and virtual rooms. Thus, enterprises should try to implement innovative technologies to serve the future generation to be competitive in the long-run.

Work Cited

Alison Kenney, Paul. 2015 “Retail Industry Outlook” . Deloitte, n.d. Web. 11 June. 2016.

Catherine, Piercy. “Crafting a Custom Lipstick at Bite Beauty’s SoHo Lip Lab.” 7 November 2013. Web. 11 June 2016.

Craig, Smith. “US retailer Hointer uses robots to deliver your selections to the fitting room.” Retail Innovation. 2015. Web. 11 June 2016.

Deborah, Weinswig. “What will retail industry look like in 2020.” 22 August 2016. Web. 11 June 2016.

Dlane, Francls. “As robots starts to take over retail, will there be any job left?” New York Post. 25 January 2015. Web. 11 June 2016.

Jeff, Daniels. “Robots move beyond warehouses, into retail stores.” CNBC LLC. 18 November 2015. Web. 11 June 2016.

Kendo, Holdings. “The Perfect Bite.” 2016. Web. 11 June 2016.

Lauren, Indvik.. “What if there was a better to purchase a “Made to Measure” suit.” 8 March 2012. Web. 11 June 2016.

Rob, Scott. “Wonderlabs: Google Promotes Devices in Pop-Up Showrooms.” 19 November 2013. Web. 11 June 2016.