Shopping 2020: five revolutionary technologies in retail

Even 20 years ago, no one could have imagined that we would make purchases with two clicks on a smartphone. Algorithms, AR, smart stores and conscious consumption – in the 2020s, buyers are waiting for another round of transformations

With digital fitting rooms and virtual reality furniture selection, shopping in the new decade will be easier than ever before. Already, according to Nielsen, about half of consumers (51%) are ready to use augmented and virtual reality (AR / VR) technologies to evaluate products.

By clicking on an ad on Instagram, you can instantly try on a suit and choose a closet that fits your needs. In the fall of 2019, Lamoda placed 16 virtual fitting rooms in the center of Moscow and added the AR fitting function for sneakers in the mobile app. In turn, IKEA introduced a system that allows you to embed virtual furniture in the interior of the apartment, and Nike created the Fit service for remote selection of sneakers.

AR filters and smart mirrors will allow us to more accurately select clothes by size, which means we won’t have to return the goods again. Manufacturers will be able to predict demand in advance by releasing digital collections and adjusting the product range. Searching for things will also become easier: smart image search is already used by many large retailers, from AliExpress to Lamoda and ASOS.

This trend will not pass by convenience stores either: according to a Nielsen study, 89% of consumers will abandon physical shopping if they have a device or technology at their disposal that fully recreates the experience of shopping (including smells, the ability to feel the product, and so on) .

In the 2020s, stores will turn into ecosystems that cover all areas of life. The voice assistant will remind you to buy champagne for your birthday, you will be shown a promotional coupon with a personalized discount in the social media feed, and the online store will display offers especially for you on the start page.

On the one hand, advertising will become more intrusive and frighteningly accurate, on the other hand, the shopping process will be simplified.

An omnichannel model will come to the fore – an approach that combines all the tools of communication with the client into one system. You can easily switch between online and offline, switch from the mobile version of the store to the desktop version, contact support by phone or messenger. Convenience will take precedence.

The giant Amazon, the cosmetics corporation Sephora and the furniture store Crate & Barrel, as well as the brands of LVMH, are already working on this model. In our country, e-commerce platforms and grocery chains X5 Retail Group, Azbuka Vkusa and VkusVill are experimenting with omnichannel.

The boundaries between a physical outlet and an online store will blur. For example, you can make a purchase through Instagram, pick up at a pickup point in the nearest supermarket, and, if necessary, issue a return at the retailer’s flagship store.

Climate change, environmental pollution and an excess of plastic will force even the most conservative companies to experiment, awareness will finally become the main trend among buyers and sellers. For example, this is the massive use of recycled plastic in packaging and an extensive network of recycling.

Global giants like PepsiCo, Unilever, Starbucks, Amazon are already making public commitments to cut down on plastic, ditch disposables, count CO2 emissions from transporting goods, and so on. Cosmetic brands are accepting empty cans to reuse, while clothing brands are collecting items for recycling. Food delivery retailers (such as Perekrestok, part of the X5 Retail group) offer customers to return plastic bags for recycling through them.

In the 2020s, retailers will begin to cater to Generation Z—those born in the late 1990s and early 2000s. For the Zetas, it’s not the brand name that matters, but the culture and experience built around it. That is, it is not so much the product itself that is important, but the context surrounding it.

For example, the American brand Casper not only sells mattresses, but also records meditation podcasts, blogs about sleep culture, and conducts scientific research. Companies are experimenting with social media, posting unretouched photos and memes on Instagram, blurring the line between brand and consumer. Another example is Lamoda, which hosts online DOTA2, Fortnite and League of Legends tournaments on the popular video streaming platform Twitch.

Food delivery services are launching their own merch: T-shirts, bags and sweatshirts with branded logos. Restaurants, taxi companies and grocery stores are collaborating with clothing brands and bloggers. Similar special projects existed before, but in recent years they have become fashionable and gained viral popularity.

The experiments involve all five senses, including smell and hearing. JTW Intelligence analysts call the new practice of selecting sound accompaniment acoustic branding. For example, the brand Coach focuses on the sounds that bags make when they snap, and uses the hashtag #ASMR. And the developers of electric vehicles involve producers and record labels to create a unique “rumbling” engine.

For generation Z, the experience of consumption is important. Following this trend, companies are organizing exhibitions and turning stores into experiential museums with immersive attractions. Offline shopping is transforming from a tiring shopping experience into an exciting experience that you’ll want to tell your friends about.

Automated stores without salespeople, robotic warehouses and drone delivery — drone technology is gradually taking over retail. True, there is no talk of full automation yet. For some categories of goods, emotional involvement and interaction of one person with another will still play a big role.

Therefore, for example, food stores without sellers in China first bred in huge numbers, but then some of them closed. It became clear that it is important for consumers to communicate with other people in the buying process. Especially when it comes to food.

Despite this, most large retailers will have their own team of artificial intelligence (AI) developers and big data specialists. They will help analyze demand, predict customer behavior, plan logistics and set up targeted advertising.

Voice assistants will become increasingly popular in the 2020s. With their help, it will be possible to make purchases on the go and ask the AI ​​​​assistant to select products that suit your preferences. According to a Nielsen study, 50% of consumers are ready to use a smart assistant in the next three years.

In the new decade, algorithms will serve not only as assistants, but also as curators. Algorithmic feeds of social networks will migrate to online stores. Artificial intelligence will determine which products will be in demand, and will offer them to customers more often.