24 Tech Trends Driving the Disruption in Retail
dunnhumby Ventures view on the Retail Tech Landscape
Co-authored by Raphi Savitz
Over the course of the past three years we have spoken to hundreds of retail technology startups from across the globe, companies who in one way or another are disrupting the traditional path to purchase. Some are disrupting this path via a new and innovative business model, such as Subscription Commerce or On-Demand delivery, others via advances in technology such as artificial intelligence and augmented reality.
As we make our way through 2016, themes and trends are beginning to emerge. Some are carry-over’s from years past, who are evolving in their own unique ways, while others are at the forefront of innovation and are reshaping the way we think about retail.
Below are some of the trends we are witnessing and watching.
If you are a retailer interested in learning more about these trends and innovations or a startup who is disrupting the consumer’s path to purchase, we would love to chat -> Ventures@dunnhumby.com.
1. 360 VIEW OF THE CONSUMER
A greater understanding of the consumer across channels and across retailers. By understanding the preferences and shopping habits at a holistic level, a more personalized experience for the consumer can be created.
Crowdsourced Insights
Incentivizing customers to share cross retailer shopping experience and purchase behavior
Disruptors: InfoScout*, Product Tube
Omni Channel Marketing
The ability to reach consumers through a wide range of channels, where they are most responsive (email, mobile, social, messaging, etc.)
Disruptors: Zaius, Zeta Interactive
2. BRAND EMPOWERMENT
In a time when data is driving decision making, brands are seeking new ways of better understanding their customers and are finding themselves in a power position as the traditional retailer / brand relationship gets disrupted and new direct channels emerge.
Supply Chain BI
Providing vendors real-time insight into sell through and inventory
Direct to Consumer
Brands desire to sell directly to the consumer rather than through the traditional retail channel
3. CONVENIENCE IN AN UBER WORLD
As the On Demand economy continues to grow, so do a consumer’s expectations of service. New business models and technologies that efficiently fulfill these expectations are emerging, altering the traditional path to purchase.
Delivery/Click & Collect
Providing consumers with access to products where they want when they want them
Subscription Commerce
Business model by which consumers subscribe to periodically receive a product or a box of new products or samples
Mobile Payments
Utilizing the mobile/smart phone to pay for products and services in the physical realm
Disruptor: SimplyTapp
Augmented Reality
The ability to inject digital media onto real world objects through the use of smart devices
Disruptor: iTagged
Artificial Intelligence
Development of computer systems able to perform tasks that normally require human intelligence.
Disruptor: Msg.ai*
On Demand Workforce
The ability for employers to flex their workforce based on current demand.
Disruptor: Gigwalk
4. INTELLIGENT HARDWARE
The rise of intelligent hardware has given retailers the ability to measure and fine tune operations not just in back of store but increasingly as part of the shopping experience.
Robotics for retail
Robotics will take the leap from living within the manufacturing setting to being asked to fulfill roles visible to consumers
Disruptors: Soft Robotics, Bossa Nova Robotics
Internet of Things/Wearables
A technological advancement in which disparate objects (with sensors) communicate with each other, creating a network of “Smart” objects
5. OPTIMIZING PATH TO PURCHASE
Retailers want to better understand the path to purchase so that they can optimize their marketing and merchandising.
In-Store Analytics
Understanding store traffic and path to purchase within the physical store environment
Employee Analytics
Understand and optimize employee time and communication with customers
Disruptor: Humanyze*
Product Analytics
Greater understanding of product ingredients and attributes
Disruptor: Label Insight*
Competitive Intelligence
Understanding of competitor’s price, promotion, and merchandising strategy
Disruptor: DataWeave, Upstream Commerce
Ecommerce Optimization
Helping brands and retailers optimize product discovery within the endless aisle of ecommerce
Disruptor: Content Analytics*
6. RESPONSIVE RETAIL
Retailers are increasingly interested in measuring and adjusting messaging, pricing, etc. based on where consumers are in the purchase funnel.
Personalization
Creating an experience or recommendation based on a person’s historical interactions
Disruptor: Coherent Path*
Proximity Marketing
Contextually relevant comms & media based on location
Disruptor: Pulsate*
Dynamic Pricing
Changing prices in real-time dependent upon external factors such as supply & demand
Disruptor: Boomerang Commerce, Intelligence Node
7. SOCIAL FOR COMMERCE
As digital advertising matures, brands are increasingly looking towards new avenues that resonate with consumers.
Influencer Marketing
Utilizing social media personalities with large followings to evangelize your product
Disruptor: TheShelf*
User Generated Content
Utilizing content that is being generated by consumer advocates
Messaging for Commerce
1:1 communication between merchants and consumers through messaging channels
Disruptor: Msg.ai*
Actionable Ad Units
Advertising that allows consumers to transact within the unit and is more seamless to the user experience
*dunnhumby Ventures Portfolio Company
