The rapid influx of new generations among consumers in retail profoundly disrupts the strategies of brands and organizations in this sector.

There is a paradigm shift in terms of data usage, the deployment of new technologies for virtual shopping, cryptocurrency payments, ultra-personalization, and the growing importance of sustainable development issues in the purchasing process.

Retailers are also confronted with numerous structural and organizational challenges, ranging from the need to optimize and trace the entire supply chain to product traceability and predictive maintenance.

Supporting the transformation of retail!

The challenges for 2024 are significant, and most retailers are already engaged in sustainable transformation projects, leveraging emerging technologies such as AI, blockchain, digital assets, or immersive worlds to address their strategic objectives.

In a recent study published by Doors3, Cohort, and Journee during Paris Tech for Retail, we demonstrate how new technologies redefine the relationship between a brand and its customers by prioritizing personalization, instant gratification, digital channels, engagement, and transparency.

The key challenges are numerous and multifaceted, among the most impactful, we can mention:

• Establish omnichannel capabilities to deliver an end-to-end personalized customer experience, seamless and segmented across in-store, online, loyalty, and immersive programs to more effectively cater to each customer's unique preferences.
• Design and offer personalized experiences, making the right technological investments for each customer typology, whether it be immersive commerce, augmented chatbots, or virtual shopping.
• Customize sustainability-linked reward programs to guide consumers towards making intelligent, socially responsible choices they can take pride in.
• Integrate new technologies to enhance operational efficiency, following a logic of cost optimization, security, transparency, and the exploration of new business models
  
  To address these challenges, here are the 3 tech trends that retailers must embrace in 2024!

1. The phygital customer experience in service of omnichannel

Tomorrow customer experience will be omnichannel or not at all!
The idea of attracting consumers solely through one channel is over, and it is far from our thoughts to believe that everything will go through immersive platforms alone. In reality, it is through the combination of different channels that the customer experience will take place and become increasingly personalized :

• Through immersive platforms that will gradually become new media and engagement platforms
• Thanks to the logic of immersive commerce that will gradually take precedence over e-commerce
• Through augmented reality that allows for previewing a product from home, or through hyper-personalized content generated by AI.

According to the latest report from TCS, 60% of Millennials are willing to make purchases or spend more money with a retailer offering virtual fitting rooms or virtual staging capabilities.

Examples from Lacoste in retail, Clinique in beauty, or Coach in fashion are interesting case studies.

The phygital allows bringing a physical object into the digital realm and vice versa. It also enables creating an exact replica of an object and turning it into an NFT for its marketing, collection, or ownership certificate. Phygital will revolutionize the retail world through Web3, allowing consumers to connect their physical lives with their virtual lives. For this, brands must establish the same aesthetics and identity both digitally and physically to create a circular approach that people want to engage with.

Smartphones are an integral part of our daily lives, occupying an average of 40% of our waking time. Phygital is the natural response to this situation. Customers want to be able to access their favorite brands anytime and through any channel.

Hyper-personalization, finally, will play a key role in the ability to deliver an ideal customer experience, thanks in particular to the appropriate use of artificial intelligence. According to McKinsey, the transformative capabilities of AI can bring an annual value of 400 to 800 billion dollars to the retail sector.

2. Data and customer engagement to redefine CRM 3.0

The debates on data and the use of personal information continue to be heard, with 70% of Millennials being more willing to share their personal information in exchange for discounts or benefits than other age groups, according to a study by TCS.

The dynamics of customer engagement and loyalty are undergoing profound changes with the advent of Web3 and blockchain, introducing the concept of third-party data and thus rethinking the relationship with data and the notion of digital ownership. This upheaval is influencing the way CRM strategies are conceived.

Thus, in addition to traditional direct-to-consumer strategies, direct-to-wallet strategies are emerging, allowing for data anonymization while gaining a better understanding of customers' profiles. Most importantly, these strategies enable fair rewards for customer engagement, whether transactional or relational, in recognition of their commitment to the brand. Here, examples such as AMI Paris in fashion, Nike in retail, or Starbucks in the food industry serve as models in this regard.

3. Circularity in service of sustainable development issues

There is no longer any debate; sustainable development has been among the top priorities for retailers for many years. However, with regulations looming by 2026, the focus is now on integrating sustainability end-to-end concerning customer processes and operational efficiency.

Sustainability has become a crucial criterion for consumers when making purchasing decisions. Whether it's about knowing the origin and composition of products, understanding brands' commitments to impactful causes, assessing one's own carbon footprint, or considering second-hand options.

Digital Product Passport projects are proliferating, and this trend is expected to continue over the next two years, particularly in Europe. The challenge lies in transforming constraints into opportunities, and there are numerous possibilities.

Working on engagement programs linked to product passports through Web3, committing to a circular economy with green tokens, tracing and transparently showcasing the supply chain to enhance operational efficiency, and conducting education and outreach efforts for all audiences to help them consume more thoughtfully and positively.

The examples of Miu Miu in fashion, Clarins in beauty, and Carrefour in the agro-food industry are relevant use cases.

As the Gen Z and Gen Alpha now represent over $120 billion in purchasing power in the retail sector and more than 30% of the future workforce, it is more crucial than ever for retailers to embark on a sustainable and ambitious shift. This involves being well-supported and bringing a personalized vision of their future presence in these new environments.

It requires a clear strategic vision, the ability to launch initial proofs of concept to test innovative experiences, and then scale them up by integrating the most secure technologies seamlessly into existing systems. This is the mission of Doors3, the leading player that supports more than 40 brands and major corporations in their Web3 and immersive transformations.

Original article here.