New Retail Trends You Need to Know for 2023

The retail industry's operations have evolved significantly during the past few years as a result of changes in consumer behavior. Both permanent and temporary adjustments will be made. For instance, longtime brick and retail customers are shifting to online buying, while customers who are digital natives prefer a hybrid purchasing experience.

But one thing is certain: both offline retailers and online merchants are aiming to achieve the same objective: utilizing technology to build a powerful shopping experience. Retailers can use these impending technological changes.

?1) AR/3D/VR drive immersive, experiential shopping

According to a recent study, consumers today place a premium on having a great customer experience. This refers to providing excellent service in a hassle-free, effective, reliable, and memorable way. This explains why the idea of the metaverse—immersive, interactive digital spaces where users can work, play, and, yes, shop—is generating so much buzz. Retailers have already embraced the metaverse with enthusiasm as a new and interesting channel through which they can engage and conduct business with customers, despite the fact that no one is entirely sure what form it will ultimately take. Among the well-known brands that have either already established a presence or made it clear that they want to do so are Adidas, Nike, Tommy Hilfiger, Samsung, and Burberry.

The most engaging way for users to connect to various worlds right now is through virtual reality, which is a significant component of the metaverse. It and the associated technology of augmented reality (AR) are also gaining traction with stores thanks to developments like the virtual dressing room trend, which is also expected to become popular in 2023.?

Arty prides itself on developing the latest AR technologies for showcasing 3D models of retail products and allowing customers to experience Augmented Reality technology, where they can experience 3D visualization in the real world.

2) The metaverse's impact on retail

It will be interesting to see how brands and customers perceive retailing as a result of the metaverse. Our senses are confined to sight and sound, which could leave a lot to be desired. Since our real-world experiences heavily rely on our senses of smell, touch, and taste, which are missing in the metaverse, we must ask:

• How will online environments make up for this?
• How can businesses use the senses at their disposal to give customers an immersive experience?
• And how can we simulate authentic experiences in a setting limited to sight and sound?

Leveraging sensory marketing techniques in the metaverse

Pixel Canvas metaverse platform brings photo-real product showcases while shopping in the metaverse. Instead of browsing for products on a web2 flat website, the metaverse experience is more about exploration where users can be immersed in a real-time 3D mall environment shopping with their friends from the comfort of their home.?

3) Use of 5G to Integrate Online and Offline Shopping

In their online storefronts, retailers have embraced augmented reality (AR). Customers will increasingly be able to view product information instantaneously on their smartphones in brick and mortar establishments thanks to the use of augmented reality (AR).

However, processing significant amounts of data, such as product information and inventory levels, requires networks with low latency and high capacity. The adoption of technology like augmented reality (AR) will accelerate the transformation of the in-store customer experience in terms of engagement and customization.

For instance, a consumer opens a shopping list using the store's augmented reality app. The software sends the list over 5G to a nearby MEC (multi-access edge computing) server, which locates available items rapidly and proposes substitutes for those that are out of stock.

The software instantly determines the best path through the store to collect things and provides customers with access to product information, reviews, recipes, and coupons at each stop. The quick transfer of detailed information made possible by 5G technology can make shopping more effective and convenient.

On the opposite side of the counter, store managers can use RFID tags and 5G equipped mobile devices to monitor inventory in almost real-time, enabling them to analyze trends to enhance merchandising and optimize store layout.

4) Social Commerce

Social commerce is helping businesses thrive and stay competitive. 75% of retailers are now selling on social media. Moreover, 43% of retailers who leverage social platforms also say that over 50% of their profit comes from social media sales .??

Social commerce is already on the rise due to its convenience and non-invasive advertising. It is forecasted to reach $30.73 billion in sales in 2023, accounting for 20% of global retail eCommerce sales. 75% of retailers already sell on social media, with social storefronts and shoppable posts.

Due to its quick return on investment, careful targeting of the appropriate online audiences, and effective advertising, influencer marketing is also growing in popularity among eCommerce firms and retailers. Customers are frequently persuaded to check out brands recommended by influencers such as Imma of Aww Inc. they follow because customers perceive influencer marketing as more reliable than brand message.

5) Blockchain Shopping Will Add More Trust

Blockchain is becoming more and more popular, and it offers enormous promise for the retail sector. Fortune Business Insights confirms that throughout the projection period, the global blockchain in the retail market is expected to increase at a CAGR of 42.8%, from $172.2 million in 2021 to $2,082.8 million in 2028.

It is a key component of Industry 4.0 and creates the groundwork for a transparent, interconnected, and intelligent retail environment. The technique utilizes near-field communication (NFC) or QR codes that are attached to merchandise, tags, or labels.

By following meat, milk, and fruit from fields to stores using blockchain ledger technology, the French retailer Carrefour SA has observed a rise in sales. With the help of blockchain's digital tracking technology, consumers may view specific details about the produce, such as the date of its harvest or packaging.

Blockchain technology boosts consumer confidence by confirming the products' legitimacy and safety.

6) AI in Retail

Artificial intelligence (AI) intends to enhance the shopping experience by providing clients with conversational AI or virtual assistants that can assist them wherever they are. For stores that are too small to hire a full-time personnel for customer care, it may be a financially advantageous solution. The adoption of chatbots will initially be driven more by cost savings than by revenue expansion.

By 2023, retail sales from chatbot-based interactions are expected to increase annually to $112 billion, according to Juniper Research . Initially, customers might be reluctant to adopt AI helpers, but as technology advances, acceptability will rise.

AI-based smart parking for retail is another innovative technology that leverages data from different devices like sensors and cameras to form an AI-driven parking management system . Check out Machine Can See to learn more about this kind of technology.

7) Holograms in retail

The use of holograms and holographic marketing is rapidly taking over the world. They are being used more frequently in places like exposition halls, retail malls, festivals, and stores to boost sales and leave a lasting impact on visitors and consumers.

We will be able to describe how hologram display and hologram technology can significantly increase sales at sales outlets employing such a form of communication during a certain promotional campaign in order to demonstrate the efficacy of this marketing strategy. Check out what Holoway Studio is working on and learn more about how to leverage hologram technology.

Ecommerce is here to stay

Ecommerce will continue to grow in both popularity and complexity in the coming years. In fact, eMarketer predicts that, by 2023, ecommerce websites will make up 22.3% of total retail sales.

What does that mean for retailers? Now is the time to double and triple down on your commitment to ecommerce. We’re rapidly approaching a state in retail where online shopping will be non-negotiable for consumers.

Conclusion

The retail sector is a growing one. The target market is increasingly made up of Millennials and Gen Zers with each passing year. Both generations become accustomed to using digital services out of convenience thanks to digital natives and early adopters of technology. While retailers are not required to follow every trend, doing so will help them draw in younger customers and increase sales by keeping an eye on how the business and technological landscapes are changing.

We at ARTY dig deeper to use the latest AR technology to improve your crucial KPIs and help you stand out in the most competitive environment.?