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/
