Corporate Transformational Innovation in Retail Part 1

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Corporate Transformational Innovation in Retail Part 1

Examples of current major corporate transformational retail innovations/trends that are disrupting the market include automated delivery, QR code, Scan & Go, artificial intelligence (AI) and Near Field Communication (NFC).

AUTOMATED DELIVERY

  • Tech-based solutions, for example, self-working vehicles, robots, and drones have gotten a lot of consideration of late in the race to scale and fulfill the need for quick last mile delivery solutions.
  • On the cargo conveyance side, self-driven eighteen wheelers are relied upon to hit the streets within the next five to ten years.
  • Autonomous tractor-trailers may flag a pattern towards more prominent combination in the logistics industry if the foreseen cost reserve funds are acknowledged since owner-operators may experience issues going up against a robotic fleet.
  • Robotisation will be at the core of urban freight solutions as autonomous vehicles will "follow the delivery guy like a loyal dog."
  • There is a growing sight of unmanned deliveries by robots and drones, unmanned pack-stations for pick-up and delivery at workplaces, stores and in open transport stations.
  • Robotisation downstream has impacted e-commerce ready packaging, picking and arranging forms, transportation upstream, and containerization in the supply/retail chain. Operational magnificence is vital in the integral door-to-door supply chain.
  • Robotisation is additionally fundamental on account of developing driver deficiencies and changing labor market conditions.
  • As an innovation and e-commerce leader, Alibaba has become the first company to begin the commercial operation of a viable robotic service with G Plus delivery robots.
  • In the meantime, Amazon is leading the private automaton/drone preliminaries in the UK and Kroger is teaming up with Nuro (a tech startup) to dispatch an autonomous vehicle grocery delivery in Arizona.

QR CODES

  • In-store, customers can scan QR codes on products to get more information (including the exact date food items were harvested, sourced, and delivered). "Payment can also be made through the Hema app, making shopping quick and convenient."
  • There's a lot of discussion on the utilization of QR codes in retail organizations. Marketers are either in full support of or against the idea of implementing QR codes. Be that as it may, Retailer Express is putting QR codes with every one of its regular postal mail to give purchasers a chance to shop featured looks.
  • Moreover, Boston Market, a prevalent eatery network, effectively drove consumers by running a campaign that offered free prizes to clients on examining/scanning the QR codes.
  • Also, McDonald’s followed suit by putting QR codes on its packaging as a part of its CSR efforts to create awareness among consumers for leading a healthy, nutritious life, and making informed decisions. In 2016, the Chinese e-commerce giant, Alibaba opened its first Hema store in China. The premise of the supermarket is to combine elements of online and offline shopping to create the ultimate seamless experience.

ARTIFICIAL INTELLIGENCE (AI)

  • It is a universally agreed upon fact that artificial intelligence has had and will continue to have a great impact and benefit on FinTech in the near future. Artificial Intelligence saves a significant amount of time by carrying out the automation of several tasks such as data analysis. This technology is particularly useful in the creation of robo-advisors and chatbots.
  • Also, artificial intelligence plays a major and important role in monitoring the patterns of customer behavior, hence, capable of detecting fraud. Furthermore, e-commerce anti-fraud tools like artificial intelligence and virtual/digital assistants have become real growth segments that have been disrupting the corporate retail market.
  • "AI will combine with predictive analytics to give retailers data about which products will sell the most and how to personalize the products they offer."
  • Retailers turn to technology to meet customer expectations, deal with tight margins, and use database platforms such as Google BigQuery Free at Google Cloud and MongoDB Atlas "to help them identify top sellers and gain insights on how to replenish inventory."
  • As indicated by Pravin Pillai, Global Head of Retail Industry Solutions for Google Cloud, "they were seeing the measure of determining light up with machine learning (ML) driving it," he stated, including how organizations such as Fast Retailing, which possesses Japanese style apparel brand Uniqlo, are utilizing Google Cloud to build estimating models dependent on client request utilizing machine learning (ML).
  • Food search and discovery engine, Spoon Guru offers a mobile app that uses AI to help allergy sufferers spot the products in a store that contain ingredients compatible with their needs. "The app scans digital shelf labels, uses beacons, and integrates with store kiosks." By scanning a bar code, shoppers can learn which foods in a store are safe for them, like whether the products are nut-free or gluten-free. The service supports 180 proprietary dietary attributes.

NEAR FIELD COMMUNICATION (NFC)

  • Today, buyers and consumers are intensely dependent on portable mobile devices and cell phones to purchase items and services from retail dealers whether huge or little. This makes it imperative for retailers to offer NFC as a payment option through their mobile application.
  • Furthermore, as the use and penetration of mobile devices in the market continue to grow, further augmentation in the adoption of NFC mobile payment can be anticipated. Even though it will be a nominal percentage of increase, the growth will still be impressive.
  • Near Field Communication (NFC) isn't altogether a new concept, yet, it's relied upon to pick up force in the coming years. Increasingly, more retail businesses will receive this innovation to let their customers associate and connect with practically any real-world elements, for example, clothing, stationery items, publications, furniture, and so forth.
  • At present, Google Wallet and Isis are driving and leading the NFC game. Be that as it may, as the adoption boosts up, a lot more enterprise has been seen to have joined the bandwagon through the creation of their mobile applications that do varying things.
  • Examples of brands that are using mobile innovations and m-commerce, especially as it concerns FinTech, to their advantage include:
    • Wagamama: This restaurant chain launched its mobile application which allows visitors to split the bill, pay at the table and walk away with no waiting required. This innovation which imbibes NFC together with artificial intelligence saves diners the time and makes dining experience frictionless and easier.
    • Nike SNKRS: Nike, as a brand, has redefined mobile commerce through the introduction of AR through its SNKRS app which offers a new way to purchase limited-edition sneakers. The app sees users point their camera at a specific physical location to unlock sneakers before purchasing them.
    • Pizza Hut: Through its mobile application, Pizza Hut rolled out a new payment method called Qkr which uses Masterpass to allow diners split bills with friends and have them all pay individually and quickly.

SCAN & GO

  • Scan & Go innovation is intended to make the shopping experience less complex, quicker and increasingly advantageous and convenient for buyers. "Just as barcode technology transformed the efficiency of retail stores in the early 1980s, Scan & Go is set to become retail’s next great disruptive technology, improving a range of existing retail practices."
  • Similarly, as self-checkout machines are more proficient than waiting in line for an assistant to scan items and payments, Scan & Go is proving to be the next best logical step in streamlining and improving the in-store experience.
  • The "early deployments of Scan & Go technology require shoppers to carry a handheld scanner around the store with them. Instead of going through the lengthy process of scanning items at the end of the visit, customers can scan each item as they put it in their cart." "This allows them to pack while they shop and arrive at the checkout with a pre-scanned list of items, both of which accelerate the payment process."
  • However, with the novel Scan & Go tech, there is no need to carry the handheld scanner around as the new generation tech uses a simple app on smartphones.
  • "The surge in contactless payments and growing use of mobile payment services, like the various OEM Pay platforms e.g. Apple Pay and Samsung Pay, are a testament to the fact that consumers are embracing innovative technology. Now retailers have what they need to take this to the next level."
  • Scan & Go innovation is advantageous in that it allows checkout lines and lengthy payment processes to be skipped in every respect, and by making payments through an app in an in-path process, customers enjoy a smooth and seamless purchasing experience. This additionally implies that retailers can free up floor space recently involved by checkouts and redeploy staff to various jobs.
  • Scan & Go frameworks can also incorporate AI innovation, augmented reality (AR) and personalized adverts to tailor the customer experience.
  • Co-Op has rolled out a Scan & Go innovation that enables customers to filter things they need to buy in-store and leave without visiting a checkout.
  • Employed in organizations with MasterCard, it's another case of a brand adopting the Amazon Go strategy to shop for food and guarantees to offer a frictionless purchasing background.
  • Another brand looking to the potential of Scan & Go technology is Macy’s. Having announced a couple of months ago that it had completely revamped its mobile app to cater to the changes, the app allows users to scan the items they wish to purchase and pay on the app before leaving, and as part of the brand’s price simplification strategy, the app will also apply relevant offers and rewards automatically.

Research Strategy:

In conducting the search for examples of current major corporate transformational retail innovations/trends that are disrupting the market, we took advantage of a compilation of leading publications, expert blogs and reviewers, and industry databases to put together these examples.

We started by searching for common retail innovations/trends globally and we found quite a good deal of information. We then streamlined our search to examples of current major corporate transformational retail innovations/trends that are disrupting the market. We then got fewer but precise information as to what was needed.

The trends chosen are the top and most current trends put together by experts and reviewers in the FinTech industries. These trends appear in almost all sources picked out and are considered major since they are basically incorporated everywhere. Also, these sources have several years of experience writing about FinTech trends in the retail industry.

Sources
Sources

Quotes
  • "An increase in e-commerce in B2B, B2C and C2C markets has given rise to a greater number of challenges around urban freight: increasing use of public space, pollution levels, noise, road congestion and safety. E-commerce results in more, and smaller, and time critical deliveries in cities. It’s clear that there is a need for improving urban freight"
Quotes
  • "Last mile delivery represents the final leg on the journey to deliver goods to their ultimate destination. This closing stretch from the transportation hub to an individual delivery point is often costly, representing more than a quarter of the entire cost of shipping. Restaurants and retail locations operating under a lean, “just in time” model have long struggled with the complexity of managing logistics when there are so many variables in play—as have the transportation companies serving these sectors."
Quotes
  • "Mobile commerce, as the name suggests, is purchasing products using mobile devices. Mobile commerce has garnered tremendous popularity in the recent years. It is constantly evolving with the advances in the technology. As smartphones and tablets become more ubiquitous owing to its light-weight and portability, consumers are shopping through mobile from anywhere, anytime. "
  • "Those retail businesses that are able to adapt to this major trend, leverage mobile app development on Android platform and deliver mobile-friendly user experiences will outgrow their competitors in 2018 while achieving a clear competitive edge over their less mobile-savvy sellers."
Quotes
  • "According to Statista, mobile commerce, or m-commerce, revenue worldwide has increased from $184 billion in 2014 to a projected $669 billion by the end of this year. That’s a lot of money. Combine that with the fact that as of 2016, according to Actinic, 86% of UK digital shoppers made a purchase through a mobile platform and you begin to see just how much of an impact mobile is having on retail."
Quotes
  • "Retail technology is a long game and advancing innovations can be on the rise for a very long time. Look no further than Retail Dive's list — published two years ago this month — of the top five technologies we expected to reshape retail in 2017: Robotics; drone delivery; e-commerce anti-fraud tools; blockchain and bitcoin; and virtual/digital assistants. Many of those technologies have yet to see wide adoption. "
Quotes
  • "Brick and mortar stores have to work hard to compete with each other, and with online shopping, and one way of doing this is to use technology to create a great in-store experience. Technology can be used in various ways: for experiential purposes, to appeal to mobile users, increase convenience for shoppers, or to promote a retailer’s online presence. "
Quotes
  • "The strong trend toward mobile banking resulted in a growing number of digital-only banks with no physical branches. They are particularly popular among Millennials, who often use smartphones for financial transactions. "
  • "The examples of digital banks are Revolut and N26. These banks provide apps that let customers manage money on the go. No wonder, visits to bank branches are expected to drop in the near future."
Quotes
  • "The way that consumers shop in-store is fundamentally changing. The rise of ‘Scan and Go’ technology, coupled with other industry developments, is helping retailers to overhaul the buying experience that they offer their customers. So, what do retailers need to know about Scan and Go, and what are its benefits? "
Quotes
  • "Artificial intelligence (AI) is making a huge impact on retail as robots are now assisting with inventory checks, monitoring when floors are dirty, and much more. Because supermarkets, for example, often have difficulty keeping up with labor staffing challenges, robots are helping them manage consumer traffic patterns and keep track of price tags. Robots are also delivering business intelligence (BI) on consumer buying behaviors and crowd reaction. "