Shopping Mall Digital Transformation Impacts Everyone
Shopping malls are a wonderful place for both online and offline shoppers. It is a place that offers you a free amusement park, cafes and restaurants, shopping destinations, and so much more. With the increasing availability of online shopping stores such as Amazon, Alibaba, Craigslist and eBay, many people prefer to purchase products from these sites instead of the traditional malls. However, with the advent of artificial intelligence (AI), virtual reality (VR), augmented reality (AR) and other advanced technologies in the retail industry, traditional shopping malls may face challenges to keep their doors open.
- Digitization changes the customer shopping experience
- Omni-channel impacts on specific sector retailers
- The interaction of retail and property owner/manager
- More data leads to better operations and strategies
- No escaping the need for digital transformation
Digitization changes the customer shopping experience
As we’ve watched the retail industry continue to evolve, many of us have seen the shift from brick and mortar to online shopping. The convenience of being able to order anything from anywhere at any time is undeniable, but there are also drawbacks.
The online shopping experience can be somewhat impersonal and cold, especially with retailers that do not offer customer service over the phone or in-person. When you’re looking for something specific, it’s hard to just walk into a store and get help finding it. You’re limited by what you can see on their website, which may not include all of their products or the full range of sizes available.
Digitization changes the customer shopping experience
With digitization comes innovation in customer service, which creates an environment where customers can interact more directly with sellers while still enjoying all of the benefits of online shopping. Online retailers are realising that they need to change how they operate if they want to keep up with consumer demands in today’s marketplace.
Omni-channel impacts on specific sector retailers.
The retail industry is undergoing a sea change from traditional to omni-channel. In a recent survey of global retailers, the results showed that 72% of respondents said they planned to expand their omnichannel capabilities over the next 12 months. The biggest challenges for retailers have been developing a consistent customer experience across channels and improving the conversion rate between online and offline sales.
In order to understand how these challenges can be overcome, it is important to understand the different types of businesses within retail:
Category killers – The category killer is an online retailer that sells only one category of products (for example, Amazon). They tend to be low cost with lower margins than other online retailers but they make up for this by having such high volumes of sales that they can afford to provide free delivery and free returns on most items.
Specialist retailers – These are stores which sell specialist goods or brands, such as Apple and Nike stores. Specialist retailers usually have higher margins because they don’t need to compete on price but can charge more for their products and services because of the perceived value of their brand name.
The interaction of retail and property owner/manager
The interaction of retail and property owner/manager is an essential component of the retail process. The retail industry is the second largest industry in the United States, with total annual sales approaching $4 trillion. In addition, retail sales have been growing at a rate of 3 percent per year since 1990, while non-retail sales have grown at less than 1 percent annually during that same time period.
The retail industry produces over $400 billion in payroll each year, which accounts for $3 trillion in economic output. This has created great opportunities for property owners to supplement their income by renting out space to retailers on their properties.
Retailers are attracted to commercial real estate because they want a location that is accessible by customers and provides visibility on the street and in nearby parking lots. Property owners want tenants who will pay rent on time and keep the building clean and safe.
If you are new to managing commercial properties or would like to learn more about how retail can benefit your portfolio, this article will help you understand how these two industries interact with each other as well as what types of relationships exist between them.
More data leads to better operations and strategies
The more data you have, the better your operations and strategies will be.
This is a guiding principle for the Digital Analytics Association (DAA), which recently published its first-ever Data Privacy Guidebook. The guidebook is designed to help organisations protect the privacy of their customers’ data while still using it to improve the customer experience.
“We’re seeing more and more companies collecting more data than they ever have before,” says Jeremy Leach, founder and CEO of Segment, a company that helps companies manage their customer data. “At Segment, we’ve always been big proponents of ‘collect only what you need.'”
The DAA’s guidebook includes recommendations on how to collect data responsibly and store it securely while also protecting customer privacy rights by following industry best practices like GDPR compliance.
No escaping the need for digital transformation
While many companies are still in the early stages of their digital transformation journeys, others have already achieved significant results. In fact, over the next two years, more than 40 percent of organisations will be driven by digital business models, according to Gartner.
The need for digital transformation is here and now. The question is not if organisations should invest in it but how they can accelerate their progress.
Digital transformation has become a top priority for businesses because it offers an opportunity to differentiate from competitors and improve customer engagement and satisfaction through technology innovation. It also enables them to reduce costs, gain efficiencies and generate new revenue streams.
It’s not surprising that many organisations are struggling with their digital transformation efforts. While some have been successful at driving change, others have not been able to achieve their goals due to lack of leadership support or resources.
Conclusion
Shopping malls around the world are undergoing digital transformation. Technology is changing how people shop, and in order to stay competitive, major retail chains are adopting new platforms that support technology. Mobile commerce is also growing rapidly, with shoppers using smartphones and tablets to access online shopping sites. Customers want to shop from their smartphone, adding a “must have” component for shopping in-store.
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