Retail is embracing tech at a pace we've never seen before. No longer is it a question of if artificial intelligence, predictive analytics and robotics will usher in a new era in business (and in life), but how this technology will continue to redefine the retail space. I believe this year we'll see retail catapult into the future, with advanced applications and tools being used to capture the consumer's imagination and transform how products are made and merchandised. Whether an established retailer is looking to reinvent itself and stay ahead of consumers' demands or a new brand is looking to score buyers' attention away from their traditional favorites, winning companies will leverage technology at all levels of their organization to gain mindshare with customers. Here's what's in store for retail in 2019.
1. 3D simulation will become mainstream.
While 3D is by no means new technology, I think 2019 will be a breakthrough year for it in retail. With the ability of 3D tech to dramatically streamline design and supply chain processes (from initial ideation to creating tech packs) and thrill consumers with novelty applications like converting formerly 2D flatlays into 3D, this technology will gain widespread utilization across the retail ecosystem. Tools like CLO3D and Browzwear will drive process efficiency, resulting in much faster and more cost-effective digital design.
2. AI-powered product recommendations will enter the fast lane.
2019 will bring the continued explosion of artificial intelligence (AI) across retail, particularly as it relates to informing product recommendations for consumers. The majority of executives surveyed in one study said that they recognized the ability of AI to enhance the features, functions and performance of their products. For example, Amazon appears poised to invest heavily in moving Alexa beyond being just a cool gadget towards becoming a personal guide, predicting consumers’ grocery and pantry needs and offering up tips on what to wear and buy.
I think we'll also see AI play a more prominent role in product creation. My company uses AI to help with retail forecasting, so I've seen the power of this technology to translate troves of product and purchase data into trend and styling recommendations. Some companies are embracing machine-inspired concepts, which are then handed off to human designers to vet and choose the winning products. Those products, born out of this human-machine partnership — are then put into production.
3. Augmented reality won’t be in your changing room … yet.
Augmented reality (AR) technology continues to improve by leaps and bounds. In some retail categories, meaningful consumer applications are already taking shape. For example, there are virtual makeup artist apps that let consumers scan their face and experiment with different products to see which fits best with their color and complexion. And IKEA's AR app allows customers to see how more than 2,000 furniture items would fit in their own homes.
Using AR to provide increasingly personalized shopping experiences will allow retailers to give shoppers even higher levels of convenience and control. This emphasis on creative customer expression will solidify the relationship between the creative and the pragmatic as AR becomes more of a mainstay in retail.
Despite these successes, 2019 will not be the year of AR changing rooms at apparel stores. Instead, consumers will continue warming up to the concept as technology providers and brands work to craft a customer experience that feels more natural and less intrusive.
4. Personalized customer journeys will bring added value to both consumers and retailers.
Brands will broadly align their business objectives and tech deployment strategies with the needs and desires of the customer. 2019 will provide more retail customization and new personalized interactive opportunities for consumers. Instead of stealing away creativity, retail tech will enhance the creative process. Being mindful of customer desires and innovative technology will allow brands to provide a deeper connection for consumers as they try out and explore purchasing items.
Ultimately, I believe the retail industry will see the value of providing great purchasing experiences and will fully embrace the customer journey which will become as or more important than the initial sale.
