What tech innovations retailers are investing in

They are now increasingly adopting digital interfaces, simplified shopping, and data-driven retail.

About 74% of retail industry experts see shopping becoming an anytime and anywhere activity in 2023, driving increased investments in digital customer experiences and enhancements in traditional in-store shopping, as per Euromonitor International. 

Euromonitor International’s Voice of the Industry: Retail Survey cited key themes in retail innovation, including new digital interfaces, simplified shopping, and data-driven retail.

Retailers and brands are now increasingly adopting digital interfaces such as social commerce, livestreaming, AR/VR, and the metaverse to engage consumers online. These technologies not only enhance online experiences but also provide innovative transaction methods, catering to the preferences of younger consumers, especially Generation Z.

A significant number of retailers are also enabling social media transactions, with one in three industry professionals indicating that their businesses allow consumers to make purchases through social platforms. 

Future investments will focus on enhancing transactional features on social media, online consultations, and leveraging livestreaming.

For instance, Amazon launched "Consult-a-Friend" in October 2023, allowing users to seek feedback on potential purchases through their preferred social messaging apps. Similarly, TikTok introduced TikTok Shop in Vietnam, providing a platform for retailers, brands, and content creators to promote products via livestreamed videos.

Moreover, retailers are actively streamlining both online and offline shopping experiences by implementing frictionless checkout and fulfilment processes. About 57% of industry professionals view improving customer experience as a strategic priority for the next 12 months.

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Technology, particularly AI, plays a crucial role in simplifying the shopping journey by facilitating faster product discovery, ensuring timely price updates, and offering personalised promotions.

Additionally, retailers are also increasingly harnessing the power of data, advanced algorithms, and AI to enhance both back-end operations and customer experiences. 

In 2023, 43% of retail professionals recognised AI as the most influential technology in retail. Data-driven innovations have transformed various retail operations. 

Over the next five years, the primary focus for 45% of retail industry professionals will be on investing in new technologies, according to Euromonitor International's survey.