The retail industry has been at the frontline of innovation ever since the origin of self-service stores (1916), the invention and adoption of bar codes (1970s), and most recently the digital revolution of e-commerce in the 1990s. But as we advance further into the 21st century, a new question arises: which is the next big wave of innovation in this industry?
Retail has been one of the leading and most prominent industries in the world for many years. In 2023, the two highest-grossing companies in the world were both retailers (Walmart and Amazon), with an esteemed combined revenue of $1.22 trillion, driven by the continuous expansion of e-commerce and technological advancements.
In fact, among these giants’ latest innovations, AR stands out as a transformative force. This technology that combines the physical and digital worlds promises to revolutionize the way we shop.
For example, Walmart’s most recent AR feature aims to combine the opportunities brought by these technologies with the social side of shopping. It allows shoppers to virtually try on clothes with friends and family, incorporating real-time video and chat functionalities. This not only improves the shopping experience but also fosters social connectivity to make purchasing decisions more interactive and fun.
These innovations are also being boosted by Mastercard’s AR-powered payment solution – the “cherry on top of the cake” of modern-era shopping experiences. With this technology, consumers can scan products and complete purchases through AR interfaces, avoiding traditional checkout processes. The system even integrates biometric authentication, such as iris scanning, to confirm payments without removing AR glasses or using physical payment methods.
These advancements indicate a significant shift in retail. AR is making shopping more immersive and personalized, offering a quick look into a future where physical and digital experiences are deeply connected. As these technologies continue to evolve, they will likely redefine consumer expectations and retail strategies.
Do you also believe AR and other emerging technologies will become the next big thing in retail, or do you predict other innovations leading the way?
References:
Deloitte. (n.d.). Global powers of retailing. Deloitte. Retrieved September 18, 2024, from https://www.deloitte.com/global/en/Industries/consumer/analysis/global-powers-of-retailing.html
Walmart Global Tech. (2023, May 3). From concept to reality: The journey of Shop with Friends. Walmart. Retrieved September 18, 2024, from https://tech.walmart.com/content/walmart-global-tech/en_us/blog/post/from-concept-to-reality-the-journey-of-shop-with-friends.html
Finance Magnates. (2023, July 18). Augmented reality payments: Transforming retail experiences. Finance Magnates. Retrieved September 18, 2024, from https://www.financemagnates.com/fintech/payments/augmented-reality-payments-transforming-retail-experiences/
Hi Joao, Your blog is fascinating, and I greatly enjoy reading it! Your blog introduces how AR technology can be a transformative force in the retail industry by giving examples in Walmart (Virtual try-ons) and how AR can speed up the checkout process. Before reading this post, I did not know that AR has been doing so much in the retail industry, so I learned a lot from your post. I do believe AR technology will be the next big wave in retail, as it has brought so much convenience to customers, by the time AR technology gets more mature, I think it will revolutionize the retail industry. For example, maybe AR can enhance product displays and personalized customer journeys, both online and in-store experiences in the future. However, the potential of what AR can continue to do in the future still depends on the adoption of other related technologies and whether these technologies are sophisticated enough to be fully adopted by retailers.
Overall, I think this is an interesting blog, and looking forward to reading your next blog!:)
Hi Joao, what an interesting topic you wrote about! AR, in my opinion, can change the game by providing a more engaging and dynamic shopping experience. Breakthroughs that connect online and in-store shopping, such as Mastercard’s augmented reality payments and Walmart’s virtual try-ons, are exciting developments. AR adoption is still in its early stages, and will depend on how widely accepted these technologies are by consumers and how easily they can be incorporated into regular shopping routines.While the use of AR might improve the shopping experience, supply chain management, sustainability, and logistics are areas where technology like blockchain and machine learning may be of more importance. Improving these areas may present the biggest challenge for retailers. Improving these processes may not be as apparent to customers as augmented reality, but it may have a greater influence on how effectively retailers run their businesses. While AR has a lot of potential, in my opinion there are more opportunities in innovations like blockchain and artificial intelligence that may affect retail in the future.