With all of the factors in retail, including regulation, consumer expectations, and technology, business processes continuously need an update. For retailers, an adaptive and quick mindset is required to get ahead in the digital age and this ever-changing industry
Fremont, CA: The past decade has seen a transformation in the retail industry from moving to a primarily online function and innovation to meet the needs of an ever-shifting assortment of consumers. It has been evident that consumers are continually shopping and brands that strategically maneuver the complex world of retail will benefit the most.
The retail industry has embraced the digital transformation, and merchants need to be up to date with the constant change of the nature of commerce and plan accordingly so that they are in tune with the many factors impacting their businesses.
Innovation in retail technology is also picking up its speed. From how retailers market to consumers to how shoppers check-out to receive their products, customer experience has changed immensely. Goods can now be purchased directly through social media, opening a new door for digital commerce strategy. But all these new methods of acquisition will not matter if retailers are unable to fulfill customer orders efficiently.
Technology must work in tune to increase the customer experience at every touchpoint. And all operations, from the supply chain and backroom to check-out, must be in sync to ensure a smooth customer experience.
Consumers' preferences change constantly, and businesses should be able to keep up with this change. Generation Z consumers make impulsive decisions and prefer experiences over physical entities. They are more diverse than other age brackets before them and lean towards brands that share their same ideals. Also, Gen Z's spending power is currently valued at $44 billion and growing.
With constant innovation, consumer expectations also increase, and businesses will need to anticipate these expectations and deliver.
Changes in terms of regulations and other factors are inevitable, and retailers cannot avoid all of these obstacles. Trade policies can change at any time, leaving merchants trying to come up with a new strategy. Although it is difficult to predict the future, businesses can be proactive in setting their brand up for success in the face of unavoidable change. With many new regulations are facing US retailers in 2020, from the California Consumer Privacy Act (CCPA) to the United States-Mexico-Canada Agreement (USMCA) and the impact of Chinese tariffs, and staying ahead can be the difference in hitting revenue goals.
Only 8 percent of US businesses are prepared for the impacts of CCPA, and this policy will likely spread across the United States. Having a plan now can help save merchants from considerable fines and regulatory issues in the near future. And for the increasing Chinese tariffs, merchants with affected products should consider a different strategy in place to avoid incurring growing penalties.
See also: Top Retail Technology Companies