The retail industry is changing rapidly. In recent years, there has been a shift from brick-and-mortar stores to online shopping. This trend has been driven by the increasing use of mobile devices and the convenience of home delivery.
Mobile shopping is growing in popularity, particularly among younger shoppers. A recent study found that Gen Z and Millennial shoppers are more likely to use their smartphones to make purchases than any other age group. This trend is having a major impact on the retail industry, as businesses are forced to adapt to the changing needs of shoppers.
In this blog, we take a brief look three key factors which have been driving forces around how mobile shopping is changing the retail industry and the challenges that businesses face in keeping up with this trend.
The changing landscape of retail is mobile
The retail industry is transforming as mobile becomes more widely used by consumers. Mobile shopping has opened up newer channels of engagement with shoppers, and has allowed retailers to connect quickly with their customers.
Mobile technology has changed the retail industry in a number of ways. One of the most obvious changes is that it has made it easier for shoppers to shop online. Mobile shopping apps have become increasingly popular with shoppers, and have made it easier for them to find what they need, compare prices, and purchase items from their phones.
Mobile technology has also allowed retailers to access and track shoppers’ patterns and provide more personalised experiences. Retailers now have access to shoppers’ location data, allowing them to target local shoppers with more timely and relevant offers. Mobile apps have made it easier for retailers to reach shoppers, as they can send notifications directly to customers’ phones.
Finally, the rise of mobile technology has made it easier for retailers to build loyalty and reward their customers. With the use of mobile wallets and loyalty programs such as Apple Pay, retailers can easily reward customers with points or discounts for their purchases. This has allowed retailers to create a more personalised and engaging shopping experience.
Consumers are all pivoting to mobile shopping
The growth of mobile shopping is clear when you look at the latest figures. According to a survey conducted by PwC, more than 60% of people of all ages in develop regions around the world are now using their phones to shop, with half of them choosing to do all their shopping through a mobile device.
This is echoed by reports from Shopify, which found that mobile commerce now makes up more than half of the total sales generated by their clients. Additionally, the growth of mobile shopping is highest among younger generations, with an estimated 80% of Millennials and over 70% of Gen Z-ers using their phones to shop online, with online shopping being their first and primary method of buying.
Mobile shopping is also growing across regions and countries. The survey from PwC found that mobile commerce has been growing the fastest in Asia, with some 80% of people now using their phones to shop. Meanwhile, in the US, over 60% of people are shopping on their phones, and in Europe, mobile commerce is growing faster than ever before.
These figures demonstrate that mobile shopping is becoming an increasingly important part of the retail industry. As the number of people using their phones to shop continues to grow, retailers need to ensure they are providing a seamless and engaging mobile experience.
Retail industry must respond to mobile today
The rise of mobile shopping is forcing the retail industry to rethink and reinvent its approach. For retailers, this means being able to offer a consistent shopping experience across different channels. Consumers expect a consistent message, products, prices, and services across all channels, whether they are shopping in-store, online, or through their mobile device.
This means that retail organisations need to be able to provide a personalised shopping experience that is tailored to each individual customer. Using technologies such as artificial intelligence (AI) and machine learning (ML), retailers can analyse customer data, preferences, and buying behaviour in order to create a tailored shopping experience for each customer.
Meanwhile, mobile shopping has also given rise to the concept of “m-commerce”, which refers to the use of mobile devices to shop on the go. With m-commerce, customers can simply scan the product’s barcode using their phone and make their purchase without having to wait in line at the store.
M-commerce has revolutionised the retail industry and is leading to a shift in the way that retailers do business. By utilising m-commerce, retailers can increase their reach, as they are able to reach new customers outside of their regular retail outlets. This has led to an increase in sales and revenue, as well as greater customer retention.
The future of mobile retail is right now
The retail industry is undergoing dramatic changes, world wide, and mobile shopping is only the beginning. The future of retail is bound to be even more innovative, with personalised shopping experiences, intuitive checkout processes, and automation at the centre of the changing retail landscape.
Data and analytics will become an even more integral part of the retail industry. Retailers will be able to automatically collect and analyse data from customer interactions and shopping habits, to better understand customer preferences. Businesses will be able to tailor products, services, and experiences to individual customer needs, leading to a more personalised shopping experience.
Augmented reality (AR) also stands to revolutionise retail. AR enables customers to “try on” clothes from the comfort of their homes and to interact with products in a way that is not currently possible.
Artificial intelligence (AI) is also likely to play a major role in the future of retail. AI algorithms can be used to identify trends, anticipate customer needs, and provide personalised product recommendations. AI can also be used to optimise logistics, supply chains, and inventory management, empowering businesses to run more efficiently.
We are starting to see the significant industry wide effects of these emerging technologies in the retail industry around the world, and it is clear that they will continue to shape the future of retail. The future of retail is mobile, and that future is now.