Retail businesses around the world are embracing the latest trends to ensure survival, but also to become competitive and drive change. In there, Virtual reality interaction helps users spend smarter is the most powerful revolution today. In today's article from Viindoo, let's learn about the latest trends in digital transformation, a future that benefits both consumers and businesses.
1. What is digital transformation in retail?
Digital transformation in the retail industry is the application of technology to the sales field to optimize operations, enhance customer experience and promote development. This includes activities such as online ordering, door-to-door delivery, use of automated payment systems, cost optimization and product recommendations powered by artificial intelligence (AI).
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2. Current status and common digital transformation trends in the retail industry in Vietnam
Reality Digital transformation in the retail industry Vietnam is undergoing significant changes under the severe impact of the Covid-19 pandemic. More than 8,700 Vietnamese businesses had to leave the market in March 2021. To adapt and cope with the shift of the digital economy, retail brands in Vietnam are gradually transforming into businesses. while focusing on developing online stores.
Under this pressure, many supermarkets in Vietnam have succeeded in developing their own online shopping channels such as VinID, BigC,... And there are more and more online shopping platforms such as Shopee, Lazada, Shopee , Tiki,... are promoting buying and selling activities of many industries.
According to data from the Ministry of Industry and Trade, the retail e-commerce market in Vietnam is predicted to reach more than 16.4 billion USD, accounting for 7.5% of the country's revenue of consumer goods and services by 2022. Online business is becoming an important step to help retail businesses survive in the digital age.
More and more applications are being developed to meet the needs of online shoppingThere are several important trends in digital transformation including:
Transforming modern sales channels
Digital transformation has promoted the transformation of traditional distribution channels such as stores and sales counters to online sales channels on online platforms. In particular, e-commerce has become the main trend of the retail industry and sometimes determines the survival of businesses in the current context.
Digitize payment methods
The change from cash payment to electronic payment has become a growing trend. This is driven by the shift from in-person shopping to online shopping, especially in the context of the Covid-19 epidemic.
Consumers use transfer code scanning and card swiping, and the number of cashless transactions has increased significantly. Mobile Money services are also creeping into rural, mountainous and remote areas, promoting digital payments in the retail industry.
Using cloud computing data and software for customer care and data collection
Digital technology has provided retail businesses with the ability to store, manage and analyze customer data. Sales automation software helps track customer shopping behavior, thereby providing better service and improving order conversion rates. This helps businesses take care of customers effectively and reduce costs.
Applying technology to improve the operational efficiency of retail businesses
Retail businesses are using merchandise management software, vending, and ERP solutions to optimize workflows. This reduces costs, increases performance and improves customer file management. Technology solutions also assist in financial management and marketing activities, especially important for large retail businesses with complex processes.
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3. Digital transformation methods in retail create competitive advantage
In the heart of the revolution Digital transformation in the retail industry Let's learn about ways to create competitive advantage in the market for businesses. Learn the Application of digital transformation in businesses for the retail industry now!
3.1 Private business app
Digital adoption by businesses in the retail sector plays an important role in building and maintaining a strong competition. Unique mobile applications help businesses reach customers effectively and provide many important benefits:
- Create a personal space for customers: Mobile applications allow customers to search and interact with brands the way they want. Customers can easily find products, receive coupons, connect with customer service, and follow company news.
- Collect valuable data: To register and use applications, customers often provide personal information such as name, birthday, email address, phone number, and home address. This allows businesses to collect valuable data about customers and send personalized offers via email or through postal services.
- Easy advertising and branding: A very typical example is The Coffee House's mobile application. The Coffee House achieves success in customer care and ensuring sustainable operations, even during difficult times like the Covid-19 epidemic.
Online ordering features in the app help brands take care of customers effectively and create a strong impression every time customers download and use the app. Offers are updated regularly and information about new programs is easily found on the app, attracting customers to place orders without having to go to the store.
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3.2 Personalization
The retail industry is becoming stronger by using digital technology to build personal relationships with customers. Consumers increasingly prefer products that are personalized to their preferences and needs. Benefits of personalization in Digital transformation in the retail industry:
- Get to know and understand customers: By collecting customers' personal information and shopping history, businesses can build an accurate image of consumer demand. Through this, businesses can accurately understand each customer segment and build appropriate strategies.
- Optimize customer experience: Based on collected information, businesses can provide specific product, service or offer suggestions for each customer. This creates a better shopping experience and enhances customer satisfaction.
- Increase accessibility and loyalty: Customers feel cared for and respected when they receive personalized offers. This contributes to increasing consumers' ability to return to purchase and building brand loyalty.
Humanization campaign - Shake a Coke by marketing king Coca ColaA specific example for this campaign can be Netflix, a giant that has succeeded in applying personalization to get to know and understand each customer. The application stores users' movie viewing history and uses algorithms to recommend new movies based on audience preferences.
Netflix also specially prepared a “Top Picks for + username” category instead of “Top Picks for You”. This creates a stronger connection and creates a particularly impressive impression for users. There is no need to carry out complicated campaigns, small details can bring big results.
3.3 Virtual shopping
Virtual shopping is an innovative approach to retail that helps bridge the gap between the online world and physical stores. Customers can ask questions about size, shape, reviews, price, promotions,... before deciding to purchase. This is the perfect combination of traditional and online shopping models, providing a truly omnichannel experience.
Virtual shopping helps customers better understand products and services before spendingBenefits of virtual shopping:
- Predict conversion rates: Virtual shopping allows stores to track shoppers while they view products, thereby suggesting other items. Thanks to personalized advice, customers often spend up to 70% more.
- Flexible business development: Retailers can maintain sales whether they work from the store, home or office. This helps consultants provide tools and support for customers to shop even when physical stores are closed.
- Personalized shopping experience: Online customers prefer an item-by-item shopping experience that is easily sorted and based on individual preferences.
- Loyal customers: Stores can contact customers, announce new products and provide product information, thereby increasing customer loyalty.
- Brand Ambassador: Consumers can now watch videos shared by KOLs or KOCs about their buying experiences or product reviews during online shopping. This helps build an influential community and create engaging content, transforming contributors into brand representatives.
3.4 Augmented Reality
Interactive virtual reality (AR) is a digital transformation method in the retail sector, allowing to create a next-generation shopping experience, combining the virtual world with reality. Brands use AR to help consumers "experience before they buy." Interactive virtual reality in Digital transformation in the retail industry has the following benefits:
- Increase customer interaction with products: Customers can use AR to realistically view, test, and interact with products through their mobile phones.
- Interactive advertising: AR has opened a new trend with interactive advertising in any location, allowing users to interact with products or images through AI. This helps brands attract customers more effectively.
Virtual reality interaction helps users spend smarterExamples of virtual reality interactions:
The 3CE brand allows customers to try lipstick colors through selfies before purchasing the product, helping them choose products that suit their personal needs and preferences. Or the Downtown Disney store in Orlando allows shoppers to hold a box of Legos in front of a virtual interactive screen, so customers can see what the finished product looks like after being assembled. This attracts visitors to your physical store and helps drive sales.
The retail industry is undergoing a significant transformation in the digital age. Businesses who understand the value of change are leveraging the latest digital transformation trends to create a competitive advantage. Above are the trends Digital transformation in the retail industry Latest updated by Viindoo. Don't forget to follow the latest information.
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