Future of Retail

Future of Retail
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Future of Retail
Summary
The retail landscape is currently facing disruption that is bound to fundamentally change the operations of the industry. As it stands, two major drivers are forcing a revolution and will continue redefining the entire retail industry. Among these two factors is the digital age customer who has a profound awareness of the needs and wants, regularly connected, desires and demand a great shopping experience, and is well-informed regarding different brands. As more millennials enter into the adult age-bracket, the retail industry is bound to have more digital customers. This implies that retailers need to be aware that they are dealing with a customer group that can use any channel they choose, be it mobile, desktop, in-store, or tablet. As Deloitte (2017) asserts, approximately 92% of shoppers had utilized digital devices in purchasing products from retail stores. This implies that the industry is characterized by a customer base capable of using any channel and fond of using digital channels.
The other factor that is significantly influencing the retail industry is digital competition. The rapid technological advancements and universal access to information have created a situation where it is increasingly easier for new players to enter the retail industry. The technology, together with relaxed government regulations and increased venture capital, has made it easier for people to establish retail businesses. The ease of market entry implies that retailers no longer have to just worry about traditional competitors, but they have to counter the new competitors who are highly innovative. Technology seems to be at the core of the transformation being experienced in the retail industry. Its prevalence is likely to continue shaping the digital era of the retail industry. The only question at the forefront of all fashion retailers' minds is; how will the continued rise of online retail affect the fashion industry.
Research
Research by Deloitte (2017) shows that generation change is among the reasons why the retail industry tide is gradually shifting. Traditionally, online shoppers perceived not being able to try items before buying as a hurdle to online shopping. Providing payment and shipping details was also seen as an annoying aspect of online shopping. These perspectives are quickly shifting as more Gen Z come of age. The ability to try items before buying remains an issue for many online shoppers, especially in Gen X and Baby Boomers generations. Millennials are also concerned with the issue, but they value the experience of having to shop at the comfort of a couch. Approximately 70% of Millennials are comfortable shopping online (Deloitte, 2017). For Gen Z and Millennials, the greatest buzzkill of shopping online is the shipping cost. With more people accepting the convenience of online shopping, fashion retail in the United States is increasingly shifting. However, it is worth noting that a significant number of consumers still prefer the physicals hopping experience in brick-and-mortar stores.
In the U.S., the fashion e-commerce industry has continuously enjoyed steady positive growth since...