With the rapid growth of e-commerce and online shopping, the retail industry is witnessing a major transformation through the use of data analytics and Big Data technologies to stay competitive in the market.
FREMONT, CA: Traditionally customers would physically visit stores to make purchases, but today, they are more likely to interact with brands through digital channels including social media and e-commerce platforms. In addition, as more people work remotely there has been an increase in online shopping during the Covid-19 outbreak, with 41 per cent of customers increasing their frequency of online purchases. In actuality, consumers have been purchasing four to ten times more basic food items, 3.5 to five times more paper goods, and two to six times more personal care and home cleaning products. A trail of useful data is left behind by the link that exists between clients and these platforms. Retailers can utilize this information to better understand their customers and provide them with the appropriate goods and services at the appropriate times and rates.
Opening a store and expecting to generate high revenue is no longer sufficient in today's world. Retailers face ongoing pressure to provide greater customer service and keep consumers for longer periods as their businesses are customer-focused. The global retail analytics market is anticipated to grow at a rate of 18 per cent by the end of 2025, reaching a value of more than USD 9.5 billion in that time. Businesses that make data-driven decisions have the best chance of surviving in today’s mercurial market narratives.However, only five per cent of retail and consumer packaged goods (CPG) businesses are data-driven across all industries. The potential loss of business makes this situation worrisome. One company that has struggled to adapt to the transition toward online shopping or e-commerce is Forever 21, a US fashion retailer, which has filed for chapter 11 bankruptcy protection. Forever 21 is also facing financial challenges to introduce new clothing styles to the market at a time when fast fashion was rising and consumers were ravenous for novelty. Then, as Forever 21 competed with Zara, its sales decreased. As for Zara, they consider big data and a flexible supply chain to be the keys to their success. Store managers, for instance, use client feedback to determine what customers like and dislike as well as what they are searching for. The designers at Zara receive immediate feedback on the demand information and start sketching right away.
Retailers can better service their customers since they can hear their voices from all over the world. Additionally, they face challenges such as overproduction or the problem of fashion waste when they produce goods that satisfy consumer needs.