Technology trends in 2020

Technology is altering the way industry operates, and the way shoppers purchase and interact with products and services. Advances in technology will continue to change the ‘path-to-purchase’.

Technology is advancing rapidly and enables industry to provide better services within the supply chain and for the end consumer. Businesses that utilise technology to meet shoppers’ changing needs will be better placed to win in the future.

The digital revolution has no boundaries or borders. It is changing behaviour and expectations. 

Being prepared for future eventualities is of critical importance for any business. However, with so much disruption and uncertainty taking place around the world it is understandable that businesses are often only focused on the next quarter or at most the next few years.

Nevertheless, we believe that success will be achieved through thought leadership which comes from being visionary, and to be truly visionary you need to think longer-term and look to the future.

To help you look to the future I have highlighted five technologies that I believe will impact the path-to-purchase in 2020.

Augmented reality 

One of the latest technologies to potentially make an impact on the food and CPG industry is Augmented Reality (AR). From social media filters to AR smartphone games, like Pokémon Go, AR has grown in popularity over recent years as it brings elements of the virtual world into our real world, therefore enhancing the things we see, hear, and feel. 

As smartphone ownership increases around the world, and usage of these devices increases, there is a growing opportunity for the food and CPG industry to utilise AR to engage with shoppers and consumers. On top of increased ownership and usage of smartphones, 5G mobile network technology represents an opportunity to accelerate the adoption of AR in-stores and on the go for consumers and shoppers.

That’s why it’s a good time to think about how you can use AR in physical stores, online and to build your brand awareness, along with wider applications of this technology. 

Smart carts

Since the debut of the Amazon Go store, several retailers have renewed their focus on improving the in-store checkout experience. For most, scan and go technology has been central to their initiatives.

However, some retailers have started to test smart carts (trolleys). For years, supermarket carts have been basic. Advances in technology and reduction in price has enabled retailers to offer shopping carts that have display screens allowing shoppers to check-out easily. They help shoppers as they shop a store, through in-store navigation to product information.

They offer industry the opportunity to sell products to the shopper that may not be in the store, as shoppers can complete online orders through smart trolleys. Smart carts enable retailers and brands to identify shoppers in-store during the shop, which means they can communicate at a personal level with shoppers.

Smart stores 

Over recent years, we have seen more retailers trialling digital technologies to enhance the in-store shopping experience. We expect this to continue as stores aim to improve the shopping experience and compete and/or complement the online shopping experience.

I expect to see more stores offering a cashless and checkout-less experience in 2020, and I expect we will see large stores starting to offer a checkout-free experience.

Stores will start to identifying shoppers as they enter the store, which will enable retailers and brands to be able to communicate with shoppers during the shopping trip. Shoppers will be offered promotions and personalised recommendations, along with helpful information like recipe ideas.

Stores will utilise technologies, like vision technology, to identify shoppers, improve stock levels, demand planning and reduce shrinkage to become smarter stores. 

Delivering the goods

The ‘last mile’ has become an increasingly competitive place, as the food industry and disruptors continue to create solutions that make online shopping even more convenient. Shoppers’ expectations are continuously increasing when it comes to getting the goods they want in a quick and easy way.

So far, retailers have been able to meet and often reset shoppers’ expectations with innovative delivery solutions. We expect to see more competition amongst retailers to get goods to shoppers in more innovative and creative ways in the future, such a small and medium sized autonomous vehicles to unmanned aerial vehicles.

Unattended in-home delivery 

Unattended in-home delivery highlights retailers’ desire to meet shoppers’ expectations around convenience and delivery. I expect to see more retailers trialling and rolling out in-home unattended delivery. I believe retailers will pursue this delivery model. It offers financial benefits, as they can be more efficient within the last mile delivery.

Retailers that offer unattended in-home delivery will need to have a significant amount of inherent trust with shoppers. If retailers are able to deliver the goods, shoppers are likely to build more loyalty with a retailer as trust and the convenience of the service builds.

It is unlikely that this delivery solution will become mainstream in the short-term. This is not just down to potential trust concerns. Instead it is primarily down to the fact that home owners will need to buy and install a smart lock to allow the courier into their home, which is likely to be a barrier to participation.

Throughout 2020 we will track and report on how retailers and brands are responding to the changing retail landscape.

Please contact me if you would like to discuss these trends in greater detail 

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Source: IGD Research.

This article is an abbreviated version of IGD's 2020 Technology Trends Report. Retail Analysis subscribers can access the full report here: https://retailanalysis.igd.com/trends/presentation-viewer/t/technology-trends-in-2020/i/9332