The use of technology has always benefited the retail industry. It has made the industry more organized, responsible and efficient. There is a lot of scope for technology implementation. However, we note that many retailers are unaware of the power of technology, which if implemented would have an immense impact on sales growth. There is great growth in technology, but retailers are still lagging behind in implementation.
Technology has grown by leaps and bounds over the last decade and will continue to grow in a geometric progression. Moore’s law states that “the number of transistors in an integrated circuit will double every 18 months.” Moore is the co-founder of the tech giant Intel. This law changes one’s perspective on the impact that technology and its applications can have on each industry.
In the retail industry, profits are not made through a single transaction, but by establishing a long-term relationship and understanding with customers. Getting customers loyal to a store is not an easy task to do. It’s about building a reputation and studying a customer’s patterns over a period of time. Customer profiling goes a long way in building a relationship, and technology can be used to achieve this.
Radio Frequency Identification or RFID is a technology that was invented about 60 years ago, but has found its application in the retail industry only recently. Radio frequencies are unique, so their applications largely lie in identifying objects in a unique way. The number of providers using RFID has increased by leaps and bounds, simply because they will cease to be providers if they don’t. RFID can be incorporated into existing supply chain management, which can reduce the manpower required to control merchandise movement and inventory flow. Used in conjunction with a barcode system, RFIDs can allow manufacturers and retailers to supplement existing systems while collecting more information throughout the supply chain. RFIDs can also act as a security guard at gateways. You can also take automatic inventories and reduce out-of-stock and overstock. Accounting discrepancies can also be eliminated.
Database management systems provide retailers with efficient tools to profile customers and manage each transaction at the point of sale. Well-managed and carefully organized files make it easy to access the data in a database. Even a non-programmer can access a database using certain built-in tools.
Large markets and shopping malls in India demonstrate good use of technology in parking lots; check-in and security counters. The captured data can be used in many ways to provide information on sales and increase profitability. The use of technology does not end here. It can be used as a powerful marketing tool. Having a website or online store can increase sales and also advertise products. It is another way to generate income and attract more people to the stores.
The technology has vast and important implications in virtual shopping, where a customer can buy whatever they want with just a few clicks of a button. The best part of having an online store is that it is accessible all the time. Most stores have a built-in online shopping option that allows customers to sit in from their offices.
Before introducing a new technology into a retail store, a retailer should always ask whether it will benefit the customer in any way or increase their profitability.
Retail is an industry that is always catching up with technology. There is a lot of scope for retailers to implement technology in their businesses. The challenge they are facing right now is how they can integrate technology into their business and make it work as a team for the best possible results.