The concept of retailtech refers to startups that develop solutions for retail. These technology-based companies play a fundamental role in monitoring changes in consumer behavior, which have transformed the retail industry in recent years.
But the application of technology is not restricted to digital media. Several solutions also mediate and seek to improve the consumer experience in physical retail. Check out what retailtechs are and how they are helping to transform the segment below!
Retailtech: what is it?
Retailtechs are startups that develop technology to optimize the retail market. The solutions help with the sector's productivity, contribute with insights to improve business management and respond to changes in consumption.
Among the segment's pain points that they help solve are logistics operations and customer service.
The study The Fast Track to Digital Marketing Maturity, from BCG, also indicates that more mature companies that digitize and include retailtechs in their routines are able to increase profits by up to 18%. In addition to doubling their market presence, they managed to reduce costs by 29%.
Retail digitalization panorama
Despite advances in recent years, there is still a lot of progress to be made in the digitization of retail, and retailtechs can help with this. According to Deloitte, some of the aspects that should be prioritized by the industry in digital engagement they are:
- improvements in consumer experience;
- DTC strategies (direct to consumer, in free translation, direct to consumer);
- improvement of interaction with consumers.
The behavior highlights the possibility of retailtechs investing in improving marketplaces, e-commerce and other sales channels. There are also opportunities in specific segments: a McKinsey survey shows that online food retail, for example, is expected to grow in the coming years.
It is now possible to observe the entry of supermarkets and small stores in delivery apps. Big food brands are also investing in marketplaces and e-commerce. Other initiatives, such as subscription purchase, are also growing, as they guarantee convenience and possibility of discounts.
Trends in retailtech
Investing in technologies that help monitor consumer behavior is essential for consolidating the digitalization of retail. Below, we list some trends in the segment!
Artificial intelligence
Artificial intelligence(AI) is a great ally in capturing data and understanding how retailtechs refine shoppers’ journeys. Through the use of data, with buyers' consent, stores can improve the arrangement of products in physical stores, for example, by tracking each person's preferences.
Personalization of service
Another result of the use of AI by retailtechs is the anticipation of consumer behavior and a more assertive adaptation of their interests and the best payment methods.
It is now common for virtual stores to present related products or send mail marketing when a cart is abandoned. However, this technology could be even better.
Artificial intelligence has applications that go beyond the B2C relationship. There are retailtechs that use data to build sales strategies Business Intelligence (BI) and Machine Learning.
These solutions help, for example, to map stock in real time. This way, as soon as the AI alerts that something is missing, the company is notified to replace it.
More accurate pricing
Another possibility for the data use collected by AI is in more accurate pricing or in controlling price changes, which can be adjusted according to the outflow or greater interest of consumers in specific products.
Augmented reality (AR) and virtual stores
Technologies like Augmented Reality (AR), which improve the shopping experience, are on the rise. AR allows shoppers to try on clothing and accessories virtually. It's an opportunity to get an idea of what the product "physically" looks like.
The possibility of visiting virtually a store, also contributes to the convenience of the shopper. Knowing the space just a click away is a way to improve the experience and attract you to convert.
Image recognition
It is also widely used by retailtechs. Technology helps from organizing the shelves of stores, supermarkets and pharmacies, based on shopper behavior, to monitoring competitors.
Furthermore, it is possible to avoid stock out. For physical retail, management and trade marketing are also key pieces in this sense.
Chatbots
Chatbots are also a type of AI developed by retailtechs. They help resolve consumer doubts and avoid cart abandonment. Robots also indicate products according to the shopper's profile, monitor the shipment of purchases and ensure buyer satisfaction.
Omnichannel and variety of sales channels
The return to in-person consumption has enabled retailtechs to be important in the convergence between multiple sales channels. Omnichannel makes it possible for the customer to increasingly be the center of decision-making. They can purchase a product digitally and, if they don't like it, exchange it in a physical store. In short, it is a way of providing multiple choices for shoppers.
It was clear that retailtech is already more than a reality and that the evolution of retail with the support of these startups only tends to grow, right? The solutions from these startups will continue to increasingly impact both electronic and physical commerce.
