Market Trends of Global Advanced Shopping Technology Industry
This section covers the major market trends shaping the Advanced Shopping Technology Market according to our research experts:
Increasing Adoption of Virtual Reality in the Retail Sector is Expected to Drive the Market
- Retail is one of the major sectors where customer engagement is imperative for businesses. According to the 2021 Retail Digital Transformation Survey by BDO USA, 35% of the respondents suggested that the top digital priorities include improving customer experience. Virtual Reality assists in improving customer engagement, increasing brand awareness and driving sales conversions.
- According to IBM's 2020 US Retail Index report, the pandemic has expedited the shift to digital purchasing by about five years. Virtual try-before-you-buy experiences range from previewing furniture and house products of brands such as IKEA and Home Depot to digitally trying on luxury fashion brands such as Louis Vuitton and Gucci.
- Also, according to a 2020 survey by GetApp, 60% of the respondents from the United Kingdom stated that using VR would minimize the risk of infection as there is less interaction with people or trying clothes that someone else has already tried on. About 54% of respondents state that the perception of VR and willingness to use it has changed because of COVID-19. The growth of virtual stores also presents new opportunities for the market.
- Out of these, almost half (45%) stated that they are more willing to use it than before the pandemic. In Spain, 62% of the respondents stated that Covid-19 has led to an increase in the adoption of VR for shopping, followed by France (42%) and Germany (36%). Respondents considered that 360-degree videos assist in understanding the product better (60%) and add entertainment to the shopping experience (51%). 44% said that it could improve the perception of a brand, while 45% stated that this content helps to make a better purchase decision. (n=5,080; Europe).
- Further, in 2020, Tommy Hilfiger and Charlotte Tilbury partnered with e-commerce software provider Obsess to create their own virtual stores. The virtual stores blend details with familiar elements, such as doors and cameras at human height, to make them more palatable. The increasing integration of VR in retail is propelling the growth of the studied market.
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North America is Expected to Hold a Major Market Share
- Robots coupled with artificial intelligence are expected to help stores cut costs and advance store processes by cleaning, transforming goods from shelves, following, unraveling shelf inventory, and offering last-mile delivery.
- Amazon.com is poised to bring its automated checkout technology to full-size supermarkets. The company is planning for a store under construction in Brookfield, Connecticut. The store contains all the essentials of an Amazon Fresh grocery store: a two-word logo on dark gray panels above the store’s entrance, an online order pickup counter, and such full-service departments as a butcher. The plans also identify a dozen entry and exit gates, along with ceiling-mounted racks to run wiring to camera arrays. This setup until now has only appeared in Amazon Go convenience stores.
- Shoppers enter the location by swiping a smartphone at the entry gate. Inside the store, the shoppers would be tracked by cameras, software algorithms, and shelf sensors-then charged for what they take when exiting through the designated gates.
- Further, Aldi plans to adopt the checkout-free retail technology. In August 2020, According to ChargedRetail, Aldi had “placed an international call out to tech startups specializing in computer vision and artificial intelligence,”
- Also, in June 2021, Instacart Inc. plans to replace its army of gig shoppers with robots as a part of its long-term strategy to cut costs and put its relationship with supermarket chains on a sustainable footing. The plan involves building automated fulfillment centers around the U.S., where hundreds of robots would fetch cereal boxes and soup cans while humans gather produce and deli products.
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