Celsior Conference

Top Trends Reshaping the Future of Retail Industry in 2021

The retail industry faced a multitude of disruptions due to the Coronavirus pandemic. As
some retailers shut down, most had to pivot business models and adjust to social distancing
norms and movement restrictions. Besides, shopping behaviors changed radically, with more
customers opting for online purchases.

As retailers struggle to maintain their in-store footfall, technology came to the aid. The
retail industry is in turmoil with the sudden emphasis on redesigning stores as per physical
distancing regulations and mushrooming contactless payment systems. Retailers aim to offer
personalized and swift shopping experiences when most customers are hesitant to visit the
stores. Shop owners are starting to invest in testing shop layout and product placement
through Emotion AI platforms to analyze real-time customer responses.

These transformations pave the way for a new post-pandemic market where physical and digital
experiences will blend seamlessly. The trends from 2020 will shape the retail industry‘s
future. Following are the three tech trends in retail that will dominate 2021 and beyond.

Brick and Mortar Shops Are Going Online

The retail industry is getting digital by the minute. While e-commerce was expected to
double by 2023, the pandemic accelerated the growth leaving physical shop owners no option
but to maintain their sales by embracing omnichannel strategies.

Approaches like ROPO (Research Online, Purchase Offline), Buy online, pickup in-store
(BOPIS), ROBO (Research Online, Buy Offline) have gained huge traction post-pandemic. With
social distancing norms in-place, the number of people visiting shops at one time has
reduced. Many customers are opting for these newfangled ways to shop to avoid crowds and
minimize wait time in stores. However, many retailers with no online presence quickly
established one in fear of missing the bus. Now, retailers are trying to engage customers on
an emotional level to become a frontrunner. For an enhanced shopping experience online and
increasing in-store conversions, retailers are employing Emotion AI companies to delve deep
into customer’s behavior as their newly formed websites go live. Emotion recognition
technologies like facial coding and eye tracking are offering actionable usability insights
for recently turned e-retailers.

Graphical representation of the challenges faced by the retail businesses in the
year 2020 & how emerging tech trends are helping retail industry to keep the ‘economy’
rolling.