As motivational speaker Garrison Wynn nce said: “Action and adaptability create opportunity”. For local retailers, there is an opportunity to future-proof by taking action on initiatives that maintain and drive customer loyalty. But they must be adaptable as they pursue this boon to the business.
By Mandy Duncan, Aruba country manager South Africa
Today’s successful retailer has already digitally transformed to offer shoppers an omnichannel experience. However, South African consumers have since upped the ante. They don’t just want shopping experiences that work in tandem online and offline.
They’re now after incredibly engaging and personalized purchasing journeys that flow seamlessly between physical and digital platforms. According to the Future Shopper Report, 85% of South African consumers say retailers need to improve when it comes to giving them the experience they want.
To compete for wallet share, local retailers need to rise to the occasion. Technology is core to meeting new shopper expectations, meaning the burden of “action” will largely fall to retail’s IT teams, who need to be at the peak of their digital innovation and agility game.
What are the implications of shifting consumer demands on a retailer’s IT teams and network? Aruba, partnered with trends agency Foresight Factory to unpack this by looking at what 2023 will bring.
Retailers will bring immersive digital experiences to in-store shoppers
We’ve moved beyond the notion that brick-and-mortar spaces are only there so customers can physically interact with products. South African shoppers expect far more creativity than that, with research showing they expect brands to demonstrate greater value in a way that matters to them on a personal level. Ultimately, they want an experience, not just a transaction.
As a result, there will be greater investment in AR and VR technology that will allow brands to reveal new dimensions of their offering to anyone who walks through their door. For example, when used in-store with headsets provided, VR could be a vehicle for showcasing the sustainable construction of an item or for housing an extended showroom of products that the physical space can’t accommodate.
How will this impact your network? Immersive tech puts a huge strain on most networks, with the danger being that slow applications will alienate rather than engage the user. This burden won’t be constant though, meaning an intelligent network that’s scalable, whether up or down, is needed to seamlessly and instantly allocate relevant computing resources.
Delivery options will become more disparate and diversified
In the era of laser-focused personalization, freedom of choice is key. In fact, while 78% of South African consumers plan to increase their use of digital shopping channels, 74% of these same shoppers prefer spending money with a brand that has both a physical and online presence.
Retailers will respond with increasingly hybrid approaches to order fulfillment. Alongside traditional delivery solutions, we’ll also see a rise of dark stores for online-order fulfilment, micro-fulfilment centers, grab-and-go ‘pop-ups’ for in-store collection, on-demand couriers, and mobile stores. Enhanced geolocation services will also see more uptake.
The implication? Retailers will need to expand and secure their network infrastructure, right to the edge, where people, devices, and IoT connect to the network. This gives secure and near real-time access to data as opposed to traditional set-ups where all data is funnelled through a central data centre.
In-store locations will become smarter to drive delight and efficiency
The online retail industry in South Africa grew by 35% in 2022, off the back of 40% growth in 2021. With e-commerce offering ever more sophisticated competition, in-store spaces will be redefined to not only focus on enhanced customer satisfaction and personalization, but also more efficient business operations. As such, we’ll see intelligent tech being leveraged for use in cashierless checkouts or smart changing rooms, for instance.
But what does this mean for your IT department? When cumbersome networks require constant troubleshooting and updates, IT will be focused on this, rather than looking at how emerging tech can be innovatively applied to better the business.
However, with the support of an intuitive network solution and outsourced network management and maintenance, IT staff could innovate endlessly, for example, by implementing smart initiatives like IoT sensors in freezers to maintain responsible energy consumption instead of watching dashboards or on break/fix operations.
Intelligent inventory insights will help clinch customer loyalty
Predictive technologies will be high on the priority list as retailers look to better understand inventory needs to meet customer demand in real time. We can expect more intelligent operations in both warehouse and distribution centres, where retailers will be deploying smart robots to keep on top of stock levels. As a result, made-to-order retailing will be shifted into the mainstream, with waste and excess inventory reduced, too.
But, for these technologies to be effective in delivering immediate data and trends predictions, reliable connectivity and real-time data insights are a must. Without this smarter networking structure, inventory insights will be vaguer and customer demands may go unanswered.
The way forward for retailers
The technology picture is becoming denser and more complex for South African retailers. While vital, modern technology can only deliver on its promised benefits if it is supported by the right infrastructure. The argument is compelling for a flexible network-consumption model like network as a service (NaaS) that provides greater scalability, up or down, and helps deliver a more business-outcome-focused networking approach.
Why is it such a good fit? A consumption-based, cloud-like subscription model gives retailers the ability to outsource several networking needs, from the costly provisioning to daily management and maintenance. This brings not only more financial predictability to an industry that’s constantly evolving, but also frees up budgets to focus on digital innovation that drives customer engagement and loyalty.
There is so much scope for improvement, bolstering savvy retailers’ bottom line and securing their place in a competitive landscape. The first step is taking action towards a flexible and adaptable network.