Fashion Forward: A Look Into How the Fashion and Retail Industry Adapts to the Age of Technology by Charise Alinsoot
Just like fashion styles and trends, consumer behavior changes with time. The rise of online stores and e-commerce websites attracts people to shop digitally, driving customer traffic from physical stores to the online market. But what does it take to keep the retail business afloat in an age where clicking Add to Cart and Checkout on your phone gives the same satisfaction as swiping your card at the clothing store?
Last March 5, 2020, John Clements Consultants Inc. invited Ms. Edilyn “Eds” Yu, deputy country manager of Inditex Philippines — the Spanish retail giant behind some of the trendiest clothing brands like Zara, Massimo Dutti, Stradivarius, Bershka, and Pull&Bear — to share her insights on the direction the retail industry is taking in the age of digitalization.
Retail is Ever-changing
The advancement of e-commerce has greatly affected the retail world. But contrary to what many would think, the online market did not take over physical stores — stores have now become more relevant than ever. The online market is no longer perceived as a separate entity from physical store operations, but as a tool to learn more about consumer insights, and is now being utilized to create ultra-personalized shopping experiences.
Despite the convenience it brings to buyers, online shopping cannot replicate the feeling of being physically present in a store, where products are within reach. Consumers still seek and crave the personalized and intimate experience of shopping in stores. A major shift in consumer behavior is brought about by the rising number of millennials and Gen-Z customers who have adapted to digital transformation and now exhibit new shopping behavior and values.
Stores will not go anywhere as it will play a large role, with e-commerce and retail operations working side by side, in providing the ultimate customer experience. With the help of technology, more tedious processes like logistics and merchandising will be more and more automated to cut costs for time and resources. Robots and machines are in place in warehouses and distribution centers for hassle-free item segregation and delivery. Many stores use RFID technology for sales monitoring and merchandise replenishment. However, manpower is still very crucial in providing superb customer experience as the five senses can only be stimulated at a store. Ms. Eds Yu has shared a quote from Pieter Lammens, “So far, no bot or personalization tool has been able to even come close to a good sales assistant.”
Worlds Collide
Omni-integration will become a trend. This means that physical and online stores will no longer be separate entities, but rather complementary platforms that boost customer service and satisfaction. This is a trend being adapted by brands, integrating mobile application utilization to the overall in-store experience. This can be observed in one of Inditex’s brand stores in Italy, where customers can virtually browse through a complete assortment of merchandise through the brand’s mobile app then drop by the physical store to try out or fit the selected items. The customers then have the option to buy the products in-store or via app, as well as buy items straight from the store or have them delivered to their doorstep.
Modern Technology in Retail
Having a good understanding of the customer base allows brands to know more about what works for the lifestyle of their consumers, and thus can provide insights on how to adapt to it. The modern consumer is busy. With the high demand for services to be instant and efficient, there is a great need for retail businesses to be seamless and frictionless. Modern technology and Artificial Intelligence create better means for retail operations through the use of QR codes, RFID chips, Automatic Payments, and Data Analytics.
Truly, the retail industry is here to stay. It will, however, like the ever-changing fashion styles and trends, take on different forms and shapes to keep up with changing times, just as Maria Grazia Chiuri said, “Fashion is very popular, so it can help broadcast a message and reach a new generation.”
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About the author:
Charise is a Behavioral Sciences graduate from De La Salle University. As a comic book enthusiast and adventure seeker, she has a fascination for all things uncommon and exciting. When she is not at her office desk, you can find her in a coffee shop, watching TED Talks or reading lifestyle articles online.
