By Danielle Willig, Market Development Manager at Manhattan Associates
After nearly four years of constant volatility and disruption in global markets, supply chains and the retail industry, will 2024 finally bring back some stability? Have we finally left the “permacrisis” of the early 2020s behind?
As we approach the retail industry’s premier annual innovation event in New York, we are optimistic that while 2024 will remain challenging for retailers around the world, the technology showcased at NRF will once again provide opportunities to change the status quo, improve operational efficiencies and elevate the customer experience to new heights.
In this context, I bring three areas of interest to keep an eye on at the Javits Convention Center, and beyond the event, throughout 2024, in the retail industry:
AI: From Intrigue to Implementation
The buzz and excitement generated by generative artificial intelligence dominated headlines in 2023, with ChatGPT alone reaching 100 million users in just a few months. But this moment will become even more exciting in 2024, as (for many) it will be the year of implementation, the moment when theory meets practice.
AI is no longer just hype, it is reality. We are on the cusp of another ‘smartphone moment’ in which AI will influence every aspect of the value chain, from product development to production and even consumption.
Technology-Enabled Human Touch
As retailers recognize the value of remodeled and technology-enhanced stores, the collective view of bricks and mortar has shifted from ‘liability in a digital age’ to its number one asset post-pandemic. As a result, the main goal of many retailers in recent years has been to digitize physical spaces.
However, as we look to the future, the focus for 2024 will be the reverse movement: making digital spaces more physical, that is, more immersive and realistic. We can already see this trend with the rise of virtual try-ons, live shopping, social commerce and virtual shopping consultations, among others.
Mixed reality is coming, and in the future, we really don’t know where the physical world ends and the digital world begins. This will further emphasize the demand for continued visibility and transparency across all retailers’ inventories, if you have it in stock, you need to be able to sell it.
As e-commerce transitions from its current static, transactional state to one of multiple dimensions, brick-and-mortar retailers will need to ensure they are making the most of their staff to deliver unique and enhanced experiences. For example, retailers will turn to technology to democratize concierge-level service, allowing staff to serve customers in an efficient and highly personalized manner.
This ranges from the practice of clienteling (personalized relationship between the seller and the customer) to direct customer service or the quick collection or return of an online order. Technology-enabled human touch will be the difference between winners and losers in 2024.
ESG: Firmly Back on the Agenda
Over the past 18 months, progress on the ESG agenda may have quietly stalled as both retailers and consumers prioritized spending cuts. However, the sustainability agenda is a trend that will never go away, and I believe that sustainability and the environment will once again be priorities for retailers in 2024.
Transparency will be a key theme this year, as consumers look to retailers for guidance in their decision-making, and with heightened awareness of both “greenwashing” and “bluewashing” (terms in English that portray companies with environmental and social issues that are not sustainable in practice), there is simply no way to hide behind false claims or labels.
Retailers will be judged not only on the authenticity of their claims, but also on their accuracy. They must have full visibility into their supply chain and be able to effectively communicate their practices and standards to consumers.
Following the historic announcement about the transition to reducing the use of fossil fuels at COP28 recently, I believe we will see greater demand for product durability and traceability around retailers’ broader circular efforts. In other words, expect supply chains to be back in the spotlight going forward.
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