Nice to see
Nebraska Furniture Mart recognized for all their hard work on a national level. - Jerry
Retailers
can learn from the success and mistakes made by new emerging companies in the
sharing economy.
Companies
like Uber and Airbnb have reinvented the use of technology
in business and created a new labor model that is threatening traditional
industries like hotels and taxi companies.
The
direct-line of a consumer to a seller is quickly fading. Retailers must adapt
in order to stay abreast with new technological trends.
According
to an article from Business.com, as of September 2015, more than 50,000
businesses had enrolled in Uber and the numbers continue to grow. In order for
retailers to compete with a growing sharing economy, technology must be used to
provide efficient and easy delivery of personalized and competitively priced
goods.
1.
Competitive Pricing and Efficient Delivery - Stores like Nebraska
Furniture Mart have learned the need for competitive pricing.
They utilize internet connected chips on each of their products that constantly
monitor competitors’ prices and change that item’s price to stay competitive,
sometimes changing several times per day. This process is called dynamic pricing
and will only continue to become popular for retailers. Even in the restaurant
industry, technology will be used to keep prices competitive. Nebraska
Furniture Mart also arranges for the furniture purchased to be delivered to the
consumer’s residence and assembled by a team of professionals. It is essential
to have the right product readily available at the best price.
2.
Online Visual Shopping - If the customer cannot see the product, they are
far less likely to purchase it. Amazon now has a feature that often provides a
video of a product. Amazon currently accounts for 26% of all internet
sales. Other companies are using videos to advertise and compete with other
convenient modes of purchase. Most vehicle companies provide a 360-degree,
rotating view of the vehicle online. This kind of visibility will be a
necessary feature for competitive online sales. It must be convenient for the
consumer to preview what they want to purchase, empowering them with a
personalized experience.
3. Push-of-a-Button Shopping - Push-of-a-button shopping is becoming the
new norm. If it takes time and effort to get something, chances are consumers
will not bother with it. Netflix has changed the way we pay for and watch
television and movies. Rather than driving to a store to pick from a selection
of movies, the movies are delivered to the consumer’s doorstep or can be viewed
streaming at the click of a button on their laptop and more devices. Amazon
prime now has a feature where an item can be shipped to a consumer within the
same day of purchasing. Retailers must eliminate friction shopping in order to
be successful. The most competitive product is the most easily accessible
product.
4.
Mobile and Efficient Payment Methods - Consumers want overall convenience.
There is less need for cash or the physical exchange of a credit card. The use
of apps can save the consumer’s purchase information and allow transactions to
take place at the touch of a button. It is also efficient for a site to have
the option of saving the consumer’s payment and shipping information so that
there is not a need to re-enter the information at each purchase. Mobile wallet
apps and other devices with payment capabilities are quickly transitioning the
consumers to a new payment mode.
5.
Mobile-friendly Shopping - According to Gartner, revenue from mobile
commerce will equal 50 percent of all digital commerce in the United States by
2017. People are purchasing less on desktops and are increasingly turning to
mobile devices for means of shopping. In order to stay in the competition,
retailers need to go mobile. Some retailers are quickly adapting to this era of
decreased brick and mortar store point of sales. Bed Bath and
Beyond developed an app that accounted for 20% of their sales in
2015. The downfall of stores like Sports Authority and Barnes
and Noble can be a lesson to retailers. Online shopping and mobile shopping
are the main methods of sales.
The
sharing economy seems to be growing in 2016, especially in industries where the
costs and inefficiencies are high. Retail industry technology
trends provides different methods for staying ahead and keeping in-touch
with the latest retail ecosystems. Retailers must look to how they can compete
with a growing sharing economy through competitive pricing and efficient
delivery of products. Furthermore, retailers need to provide convenient,
technological methods of shopping.
