The digitization scene is exploding onto the global arena. Working in both the software and, most recently, the e-commerce space, I have heard the following statements in way too many conversations: \"Brick-and-mortar is dead,\" \"It's all e-commerce from now on,\" and my personal favorite, \"Why do you still shop at stores? Just order online!\"
\r\nWhile I am one of the strongest proponents of technology and do endorse the fact that the e-commerce space is here to stay, in-store and e-commerce are two completely different and distinct shopping experiences.
\r\nBut there's a bigger concern here. Why are both established and newer conventional store owners having such a hard time adjusting to technology and the massive advantages it could offer them? It is because, rather than seeing technology as an evolution of their business model, they see it as a disrupter.
\r\nThere is no easy way to say it: Right now, a lot of the technology adoption being done globally – both in the store and outside of it – is being done simply to avoid disruption. I am not one to argue with the evolution of an environment, but for a lot of us who are trying to organically evolve and innovate certain business practices, the fear of pending disruption causes massive anxiety in business owners. This pushes them and their teams to quickly overhaul certain aspects of the business and push for KPIs that should not be expected at such a nascent stage.
\r\nAn example of this is the e-commerce scene in Pakistan. As it is evolving, the necessary digital landscape is gradually arriving in this market, which is why there is a need to find and fund future-proof, hybrid business models. These models need to take into account that certain aspects of the conventional retail journey can be digitized, while others need to be looked at carefully before investments are made.
\r\n\r\n
Editor's note: Need an e-commerce website design service for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
\r\n\r\nExpanding on my point above, you as a business owner or key decision-maker must understand your current environment and what sort of disruption your market should expect. In 2017, global e-commerce represented around $2.3 trillion in sales and is expected to hit $4.5 trillion by 2021, according to a Statista report. [Looking for an e-commerce platform or shopping cart software? Check out our best picks and reviews.]
\r\nBut if we examine the U.S. market with respect to this data, e-commerce currently represents around 10% of retail sales. Although this number is growing, brick-and-mortar retail is not going away either!
\r\nI base this on two basic things: numbers and logic. There is too much physical infrastructure (in the forms of shops, midlevel stores, malls and high-end outlets) and years – not just decades but millennia – of physical shopping experiences for digital to so quickly replace it.
\r\nLong story short: Physical stores are here to stay, because the sensory experience that physical shopping provides is not something consumers will let go of easily. The value proposition for full-scale digitization has to be massive, with discounts, faster deliveries and service. While good, current offerings are not enough to completely move people from the physical to the virtual.
\r\nWe've established that physical stores are not going anywhere, but that doesn't mean that e-commerce isn't a serious threat; all the numbers point to its growth. Right now, physical and virtual stores are fighting for a larger chunk of consumer purchases in a nonsensical tug-of-war where there can be no clear winners.
\r\nThe solution is technology. As I stated earlier in this article, the adoption of technology needs to be an organic and seamless journey. As such, the amalgamation of the physical and virtual storefronts needs to be a natural alliance. We now have the tech to connect with customers and build a two-way communication process.
\r\nHere are examples of startups that are evolving the way a storefront can and should function:
\r\nExamples like these should help you understand how each channel has a purpose and is a beneficial part of the organic omnichannel retail experience you build for your customers.
\r\nAnother thing to understand is that new technology practices exist that can help you transverse your current geographic limitations. With dropshipping firms at your disposal, you now have the capacity to open your virtual doors to any global destination.
\r\nI know for some this might be understating the entire digital movement and its disruptive potential, but to organically grow any technology or movement, we have to allow it to evolve and run its natural course.
\r\nThe internet took almost 40 years to become mainstream, but now we can't imagine life without it. It functions as a utility because it organically grew into that role. A massive community of developers, content creators and entrepreneurs built use cases for its success and scalability.
\r\nWith respect to evolving the e-commerce ecosystem, this is where we are right now, where storefront owners need to experiment with a series of technologies and find their fit – with respect to their wallets, their current technology landscape, and their vision of their current and future business objectives.
\n","docType":"article","guid":"articles_092b82f7ea0d983f585889904f259d01","lastModified":"2019-09-05T16:00:00.000Z","published":"2019-09-05T16:00:00.000Z","structuredData":null,"subtitle":"Here's how retailers can use technology to improve the shopping experience.","template":"v1","title":"How Retail Stores Can Use New Tech","type":"article","author":{"avatar":null,"bio":"Moazzam Kamran is the Global Head of Marketing at Avanza Solutions a leading Channel Banking solutions provider. He has diversified experience working on first to market initiatives in Software, Technology and Consumer Electronics verticals. You can get in touch with him on Google+ or LinkedIn.","name":"Moazzam Kamran","image":null,"slug":null,"social":{"facebook":"https://www.facebook.com/moazzam.kamran.1","linkedin":"https://www.linkedin.com/in/moazzamkamran?trk=nav_responsive_tab_profile","twitter":null,"website":"http://www.avanzasolutions.com"},"status":"enabled","title":null,"type":"Old BDC Member","user":{"imagePath":"https://staging.business.com/images/uploads/user/profile/300925cc3613d780cdf8b68aa5daaa69b3a13.jpg","profile":{"company":"","jobTitle":"Chief Operationg Officer | www.symbios.pk","website":"http://www.symbios.pk"}}},"breadcrumbs":null,"channels":{"primary":{"name":"Business Basics","slug":"business-basics"},"sub":{"name":"Strategy","slug":"strategy"}},"meta":{"robots":"index, follow","description":"Conventional retail isn't dead. Learn how technology is evolving both digital and conventional commerce and turning it into a multichannel sales center.","title":"Future Tech for Brick-and-Mortar Retailers - business.com"},"parsedContent":{"toc":[{"id":"retailers-failing-to-implement-new-technology","title":"Retailers failing to implement new technology"},{"id":"e-commerce-growing-but-cant-replace-physical-shopping","title":"E-commerce growing but can't replace physical shopping"},{"id":"bridging-the-gap-between-physical-and-e-commerce-stores","title":"Bridging the gap between physical and e-commerce stores"},{"id":"using-retail-technology-organically","title":"Using retail technology organically"}],"json":[{"component":"p","children":["The digitization scene is exploding onto the global arena. Working in both the software and, most recently, the e-commerce space, I have heard the following statements in way too many conversations: \"Brick-and-mortar is dead,\" \"It's all e-commerce from now on,\" and my personal favorite, \"Why do you still shop at stores? Just order online!\""]},{"component":"p","children":["While I am one of the strongest proponents of technology and do endorse the fact that the e-commerce space is here to stay, in-store and e-commerce are two completely different and distinct shopping experiences."]},{"component":"p","children":["But there's a bigger concern here. Why are both established and newer conventional store owners having such a hard time adjusting to technology and the massive advantages it could offer them? It is because, rather than seeing technology as an evolution of their business model, they see it as a disrupter."]},{"component":"h2","props":{"id":"retailers-failing-to-implement-new-technology"},"children":["Retailers failing to implement new technology"]},{"component":"p","children":["There is no easy way to say it: Right now, a lot of the technology adoption being done globally – both in the store and outside of it – is being done simply to avoid disruption. I am not one to argue with the evolution of an environment, but for a lot of us who are trying to organically evolve and innovate certain business practices, the fear of pending disruption causes massive anxiety in business owners. This pushes them and their teams to quickly overhaul certain aspects of the business and push for KPIs that should not be expected at such a nascent stage."]},{"component":"p","children":["An example of this is ",{"component":"a","props":{"href":"https://propakistani.pk/2018/10/29/pakistans-growth-in-e-commerce-among-the-lowest-in-the-region/","target":"_blank","rel":"nofollow"},"children":["the e-commerce scene in Pakistan"]},". As it is evolving, the necessary digital landscape is gradually arriving in this market, which is why there is a need to find and fund future-proof, hybrid business models. These models need to take into account that certain aspects of the conventional retail journey can be digitized, while others need to be looked at carefully before investments are made. "]},{"component":"p","children":[" "]},{"component":"p","children":[{"component":"strong","children":["Editor's note: Need an e-commerce website design service for your business? Fill out the below questionnaire to have our vendor partners contact you with free information."]}]},{"component":"RfqWidget","props":{"className":"bz-form-widget","id":"bz-form-widget-0","widgetCategoryId":"10119"},"children":[" "]},{"component":"h2","props":{"id":"e-commerce-growing-but-cant-replace-physical-shopping"},"children":["E-commerce growing but can't replace physical shopping"]},{"component":"p","children":["Expanding on my point above, you as a business owner or key decision-maker must understand your current environment and what sort of disruption your market should expect. In 2017, global e-commerce represented around $2.3 trillion in sales and is expected to hit $4.5 trillion by 2021, according to a ",{"component":"a","props":{"href":"https://www.shopify.com/enterprise/global-ecommerce-statistics","target":"_blank","rel":"nofollow"},"children":["Statista report"]},". ",{"component":"strong","children":["[Looking for an ",{"component":"Link","props":{"href":"https://www.business.com/categories/ecommerce-platforms/"},"children":["e-commerce platform or shopping cart software"]},"? Check out our best picks and reviews.]"]}]},{"component":"p","children":["But if we examine the U.S. market with respect to this data, e-commerce currently represents around 10% of retail sales. Although this number is growing, brick-and-mortar retail is not going away either!"]},{"component":"p","children":["I base this on two basic things: numbers and logic. There is too much physical infrastructure (in the forms of shops, midlevel stores, malls and high-end outlets) and years – not just decades but millennia – of physical shopping experiences for digital to so quickly replace it."]},{"component":"p","children":["Long story short: Physical stores are here to stay, because the sensory experience that physical shopping provides is not something consumers will let go of easily. The value proposition for full-scale digitization has to be massive, with discounts, faster deliveries and service. While good, current offerings are not enough to completely move people from the physical to the virtual."]},{"component":"h2","props":{"id":"bridging-the-gap-between-physical-and-e-commerce-stores"},"children":["Bridging the gap between physical and e-commerce stores"]},{"component":"p","children":["We've established that physical stores are not going anywhere, but that doesn't mean that e-commerce isn't a serious threat; all the numbers point to its growth. Right now, physical and virtual stores are fighting for a larger chunk of consumer purchases in a nonsensical tug-of-war where there can be no clear winners."]},{"component":"p","children":["The solution is technology. As I stated earlier in this article, the adoption of technology needs to be an organic and seamless journey. As such, the amalgamation of the physical and virtual storefronts needs to be a natural alliance. We now have the tech to connect with customers and build a two-way communication process."]},{"component":"p","children":["Here are examples of startups that are evolving the way a storefront can and should function:"]},{"component":"ul","children":[{"component":"li","children":["Companies like ",{"component":"a","props":{"href":"http://proximate.ae/","target":"_blank","rel":"nofollow noopener external"},"children":["Proximate"]}," are guiding consumers to stores and shelves across the Middle East through a Bluetooth beacon-based mobile application. The apps let people know of deals, discounts and experiences around them (through the concept of ",{"component":"a","props":{"href":"https://www.fastcompany.com/3034830/ideo-thinks-estimotes-bluetooth-nearables-could-be-a-game-changer","target":"_blank","rel":"nofollow"},"children":["nearables"]},") and will also alert shop owners to which campaigns brought traffic to their storefronts. Companies like ",{"component":"a","props":{"href":"https://www.shopkick.com/","target":"_blank","rel":"nofollow noopener external"},"children":["Shopkick"]}," are doing similar things in other parts of the world. "]},{"component":"li","children":["Another good example is a company called ",{"component":"a","props":{"href":"https://www.retailzipline.com/resources/case-studies","target":"_blank","rel":"nofollow noopener external"},"children":["Retail Zipline"]},". This communications software helps retailers coordinate their brick-and-mortar stores and boost employee engagement. It is a brilliant example of technology helping to build and streamline operational processes for brick-and-mortar firms."]},{"component":"li","children":[{"component":"a","props":{"href":"https://www.amazon.com/b?ie=UTF8&node=16008589011","target":"_blank","rel":"nofollow noopener external"},"children":["Amazon Go"]}," is an example of how an e-commerce giant saw efficacy in building a brick-and-mortar store supported by digital technology. Customers just pick up what they want and walk out, and their mobile phones take care of the scanning, invoicing and payments. The result is a seamless, digital-led yet physical purchase process that isn't intrusive and lets consumers bypass standing in long queues and fumbling around with change and credit cards at checkout counters."]},{"component":"li","children":["Finally, ",{"component":"a","props":{"href":"https://techcrunch.com/2019/05/21/deligram/","target":"_blank","rel":"nofollow"},"children":["Deligram"]}," is innovation at its finest. A young entrepreneur realized the potential that both online and offline models had, with respect to his environment, and put the best pieces together to build the future of retail. This startup out of Bangladesh is by far the best example of how retailers can use technology to elevate their current practices."]}]},{"component":"p","children":["Examples like these should help you understand how each channel has a purpose and is a beneficial part of the organic omnichannel retail experience you build for your customers."]},{"component":"p","children":["Another thing to understand is that new technology practices exist that can help you transverse your current geographic limitations. With ",{"component":"a","props":{"href":"https://www.oberlo.com/hub/dropshipping","target":"_blank","rel":"nofollow noopener external"},"children":["dropshipping"]}," firms at your disposal, you now have the capacity to open your virtual doors to any global destination."]},{"component":"h2","props":{"id":"using-retail-technology-organically"},"children":["Using retail technology organically"]},{"component":"p","children":["I know for some this might be understating the entire digital movement and its disruptive potential, but to organically grow any technology or movement, we have to allow it to evolve and run its natural course."]},{"component":"p","children":["The internet took almost 40 years to become mainstream, but now we can't imagine life without it. It functions as a utility because it organically grew into that role. A massive community of developers, content creators and entrepreneurs built use cases for its success and scalability."]},{"component":"p","children":["With respect to evolving the e-commerce ecosystem, this is where we are right now, where storefront owners need to experiment with a series of technologies and find their fit – with respect to their wallets, their current technology landscape, and their vision of their current and future business objectives."]}]},"resource":null,"sponsorship":null,"thumbnail":{"path":"https://staging.business.com/images/content/5d6/eef1e9c658a2a1d8b456a/1500-0-","caption":"Weedezign/Getty Images","isBlurred":false},"bestPicks":null},"related":{"relatedArticles":[{"title":"Hiring for Retail: A Guide to Building the Right Team","canonical":"https://www.business.com/articles/retail-hiring-guide/","slug":"retail-hiring-guide","thumbnail":"https://www.business.com/images/content/594/85c791039eb45268b4572/1500-0-","dek":"It starts with the interview and ends with you.","lastModified":"2017-07-12T07:00:00Z","published":"2017-07-12T07:00:00Z","sponsored":false},{"title":"Retail Technology Guide","canonical":"https://www.business.com/articles/retail-technology-guide/","slug":"retail-technology-guide","thumbnail":"https://www.business.com/images/content/591/c92fd1039eb40168b4567/1500-0-","dek":"How to use today's tech for sales, customer loyalty and brand awareness","lastModified":"2017-06-05T16:00:00Z","published":"2017-06-05T16:00:00Z","sponsored":false},{"title":"State of the Retail Industry in 2017","canonical":"https://www.business.com/articles/state-of-retail-industry/","slug":"state-of-retail-industry","thumbnail":"https://www.business.com/images/content/590/77b213087b18507b605f1/1500-0-","dek":"Things are changing, but it's not all doom and gloom.","lastModified":"2017-05-18T17:00:00Z","published":"2017-05-18T17:00:00Z","sponsored":false},{"title":"Ready to Franchise Your Retail Business? Here's How","canonical":"https://www.business.com/articles/retail-franchise-guide/","slug":"retail-franchise-guide","thumbnail":"https://www.business.com/images/content/590/a70d83087b15807b6063c/1500-0-","dek":"Is your business a good fit for a franchise?","lastModified":"2017-06-15T07:00:00Z","published":"2017-06-15T07:00:00Z","sponsored":false},{"title":"How Augmented Reality Is Transforming the Retail Experience","canonical":"https://www.business.com/articles/ar-transforming-retail-experience/","slug":"ar-transforming-retail-experience","thumbnail":"https://www.business.com/images/content/5c0/1a1655a215ed95c8b459d/1500-0-","dek":"\"New retail\" blends digital and in-store elements to create a seamless customer experience","lastModified":"2018-11-30T08:00:00Z","published":"2018-11-30T08:00:00Z","sponsored":false},{"title":"A Guide to Growing Your Retail Business","canonical":"https://www.business.com/articles/growing-your-retail-business/","slug":"growing-your-retail-business","thumbnail":"https://www.business.com/images/content/594/41bf892a3a41e7b8b457b/1500-0-","dek":"See if you're ready to grow and what path to take.","lastModified":"2017-06-12T19:00:00Z","published":"2017-06-12T19:00:00Z","sponsored":false},{"title":"Retail Is Not Dead ... 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