Traditional retail is represented by offline stores. Alongside them, online platforms have also begun to thrive with the rise of the internet. It was once believed that marketplaces could completely displace traditional retail outlets. However, each of these retail types has carved out its own niche, complementing each other. Currently, "smart retail," based on the application of innovations in the retail sector, is rapidly developing.
Benefits for consumers:
increasing the speed of service;
improving the quality of service;
eliminating the purchase of expired goods;
absence of conflict situations, which often arise due to human factors (irritability, fatigue, etc.).
Retail owners also benefit from integrating technology into their retail operations. The key advantages of this type of business include reduced staffing costs, optimized store occupancy, product demand analysis, and increased customer loyalty.
The proliferation of smartphones and radio protocols, IoT platform solutions, and customer identification methods are considered key to the rwanda cell phone database successful development of "smart retail." For example, in China, all of these technologies are being implemented in Alibaba's retail chain. Similar retailers such as Amazon GO and Walmart also exist in the US. Beyond these retailers, there are also specialized projects hosted on crowdfunding platforms.
Technologies used
"Smart retail" involves the implementation of a customer identification system. Registration occurs via a smartphone app. Scanning a QR code at the store entrance and taking a selfie at the turnstile are also permitted.
Movement throughout the sales floor is tracked via Wi-Fi. RFID tags are installed on products. These tags allow for tracking of product manufacturing and expiration dates, product placement on display, and the fullness of the consumer basket.
Artificial intelligence can significantly improve the shopping cart experience. For example, the system can record a list of needed items and send the details to a phone. At the checkout, the cart is scanned at the turnstile, and the appropriate payment option is offered. Payment is debited from the bank card linked to the app.
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It's worth noting that the development of "smart retail" is only feasible for retail spaces with high consumer traffic. The location of such locations must provide stable internet access.
How retail functions
How retail functions
This process looks like this: a company that is a retailer goes through several steps to implement its business:
contacts suppliers;
purchases goods in bulk;
transports products to warehouses or directly to retail outlets;
determines the markup taking into account demand and additional costs and sets the retail price of goods;
is conducting an advertising campaign;
directly sells specific products to retail customers.
The main task of retail is to provide a wide range of products available to the end consumer.
The Role of Marketing in Retail: From Window Displays to Online Promotion
Marketing, along with retail, is a key component of business. Both are aimed at promoting products and services, but differ in their methods and approaches. Marketing focuses on market research, analyzing consumer preferences, and developing a promotional strategy. Through this, retailers offer a product range tailored to consumer needs. This, in turn, increases demand for products and facilitates business growth.
Promotion plays an important role: advertising campaigns, SMM, and SEO. These marketing tools attract attention to the company and increase customer traffic.
The importance of retail in the modern economy and its prospects
The importance of retail
In this article, we examined retail: what it is, the different types, and its main advantages. But it's also worth noting the role retail plays in the country's economic development.
What influences retail trade:
Provision of jobs: sales support, logistics, etc.
Building interactions with consumers that stimulate demand.
Economic growth through the creation of additional opportunities for key retail participants: manufacturers, suppliers, and entrepreneurs.
Stimulating competition.
Retail is a key element of the economic sphere. Manufacturers, retailers, and consumers are united into a single network. The emergence of innovative technologies and changing consumer needs require retail to adapt and evolve.