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How Retail Stores Can Use New Tech

Moazzam Kamran
Sep 05, 2019

Here's how retailers can use technology to improve the shopping experience.

The digitization scene is exploding onto the global arena. Working in both the software and, most recently, the e-commerce space, I have heard the following statements in way too many conversations: “Brick-and-mortar is dead,” “It’s all e-commerce from now on,” and my personal favorite, “Why do you still shop at stores? Just order online!”

While I am one of the strongest proponents of technology and do endorse the fact that the e-commerce space is here to stay, in-store and e-commerce are two completely different and distinct shopping experiences.

But there’s a bigger concern here. Why are both established and newer conventional store owners having such a hard time adjusting to technology and the massive advantages it could offer them? It is because, rather than seeing technology as an evolution of their business model, they see it as a disrupter.

Retailers failing to implement new technology

There is no easy way to say it: Right now, a lot of the technology adoption being done globally – both in the store and outside of it – is being done simply to avoid disruption. I am not one to argue with the evolution of an environment, but for a lot of us who are trying to organically evolve and innovate certain business practices, the fear of pending disruption causes massive anxiety in business owners. This pushes them and their teams to quickly overhaul certain aspects of the business and push for KPIs that should not be expected at such a nascent stage.

An example of this is the e-commerce scene in Pakistan. As it is evolving, the necessary digital landscape is gradually arriving in this market, which is why there is a need to find and fund future-proof, hybrid business models. These models need to take into account that certain aspects of the conventional retail journey can be digitized, while others need to be looked at carefully before investments are made. 


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E-commerce growing but can’t replace physical shopping

Expanding on my point above, you as a business owner or key decision-maker must understand your current environment and what sort of disruption your market should expect. In 2017, global e-commerce represented around $2.3 trillion in sales and is expected to hit $4.5 trillion by 2021, according to a Statista report. [Looking for an e-commerce platform or shopping cart software? Check out our best picks and reviews.]

But if we examine the U.S. market with respect to this data, e-commerce currently represents around 10% of retail sales. Although this number is growing, brick-and-mortar retail is not going away either!

I base this on two basic things: numbers and logic. There is too much physical infrastructure (in the forms of shops, midlevel stores, malls and high-end outlets) and years – not just decades but millennia – of physical shopping experiences for digital to so quickly replace it.

Long story short: Physical stores are here to stay, because the sensory experience that physical shopping provides is not something consumers will let go of easily. The value proposition for full-scale digitization has to be massive, with discounts, faster deliveries and service. While good, current offerings are not enough to completely move people from the physical to the virtual.

Bridging the gap between physical and e-commerce stores

We’ve established that physical stores are not going anywhere, but that doesn’t mean that e-commerce isn’t a serious threat; all the numbers point to its growth. Right now, physical and virtual stores are fighting for a larger chunk of consumer purchases in a nonsensical tug-of-war where there can be no clear winners.

The solution is technology. As I stated earlier in this article, the adoption of technology needs to be an organic and seamless journey. As such, the amalgamation of the physical and virtual storefronts needs to be a natural alliance. We now have the tech to connect with customers and build a two-way communication process.

Here are examples of startups that are evolving the way a storefront can and should function:

  • Companies like Proximate are guiding consumers to stores and shelves across the Middle East through a Bluetooth beacon-based mobile application. The apps let people know of deals, discounts and experiences around them (through the concept of nearables) and will also alert shop owners to which campaigns brought traffic to their storefronts. Companies like Shopkick are doing similar things in other parts of the world.  
  • Another good example is a company called Retail Zipline. This communications software helps retailers coordinate their brick-and-mortar stores and boost employee engagement. It is a brilliant example of technology helping to build and streamline operational processes for brick-and-mortar firms.
  • Amazon Go is an example of how an e-commerce giant saw efficacy in building a brick-and-mortar store supported by digital technology. Customers just pick up what they want and walk out, and their mobile phones take care of the scanning, invoicing and payments. The result is a seamless, digital-led yet physical purchase process that isn’t intrusive and lets consumers bypass standing in long queues and fumbling around with change and credit cards at checkout counters.
  • Finally, Deligram is innovation at its finest. A young entrepreneur realized the potential that both online and offline models had, with respect to his environment, and put the best pieces together to build the future of retail. This startup out of Bangladesh is by far the best example of how retailers can use technology to elevate their current practices.

Examples like these should help you understand how each channel has a purpose and is a beneficial part of the organic omnichannel retail experience you build for your customers.

Another thing to understand is that new technology practices exist that can help you transverse your current geographic limitations. With dropshipping firms at your disposal, you now have the capacity to open your virtual doors to any global destination.

Using retail technology organically

I know for some this might be understating the entire digital movement and its disruptive potential, but to organically grow any technology or movement, we have to allow it to evolve and run its natural course.

The internet took almost 40 years to become mainstream, but now we can’t imagine life without it. It functions as a utility because it organically grew into that role. A massive community of developers, content creators and entrepreneurs built use cases for its success and scalability.

With respect to evolving the e-commerce ecosystem, this is where we are right now, where storefront owners need to experiment with a series of technologies and find their fit – with respect to their wallets, their current technology landscape, and their vision of their current and future business objectives.

Image Credit:

Weedezign/Getty Images

Moazzam Kamran
Moazzam Kamran is the Global Head of Marketing at Avanza Solutions a leading Channel Banking solutions provider. He has diversified experience working on first to market initiatives in Software, Technology and Consumer Electronics verticals. You can get in touch with him on Google+ or LinkedIn.