From bricks to clicks: What will drive the future of retail?

Gen Zs will heavily influence the change.

IN this post-COVID world, developers and consumers have both found and adapted new ways to purchase anything and everything under the sun. From one’s needs to wants, buyers can purchase them with just a simple click.
 
KPMG Thailand Head of Consumer and Retail Chortip Varutbangkul said at the recent Retail Asia Forum that this is considered to be the third wave of disruption in the retail industry.
 
“We believe that we are moving towards the age of seamless commerce, which is driven by advanced technology like artificial intelligence (AI), generative AI, data analytics, and so on,” she said. “This advanced technology has modernised the way that our consumers shop and supports retailers in providing several purchasing, delivery, and payment options to consumers as well.”
 
Citing a KPMG study, Varutbangkul said seamless e-commerce will continue to rise and will be a major growth factor for retail. This will be coupled with physical stores remaining as the physical touchpoint for consumers.
 
The study also found that only few of the physical store-first respondents said they could live without online shopping.
 
But what factors will support the rise of seamless e-commerce? Varutbangkul said Gen Zs will help shape the future of retail as they will soon make up 40% of global consumers.
 
“With that increasing purchasing power and growing share of the total population, they will continue to drive the retail market trend, and also drive the omnichannel demand as well,” she said.
 
Varutbangkul said social commerce and live streaming were the most popular retail techniques amongst Gen Zs.
 
Another factor is the adoption of technologies. Varutbangkul said the KPMG study confirmed that the digital payment trend is growing in Asia Pacific, especially in China and Southeast Asia, where digital e-wallet and mobile banking are identified as a preferable payment method.
 
Some countries, especially those in Southeast Asia, have also rolled out cross-border QR payment so consumers can conveniently pay for their purchases abroad without using their credit or debit card.
 
When it comes to AI, retailers are using this now to analyse customer data and suggest personalised recommendations, she noted. This can also help improve customer service and help retailers generate marketing content, she said.
 
The same technology is also being utilised to promote efficiency in shipping, sourcing, and optimising inventory, she noted.
 
Ensuring seamless e-commerce journey

To ensure retailers properly integrate e-commerce in their business, Varutbangkul said they need to have a unified data model.
 
She said this will allow them to “get a holistic view for the business owner, so they can serve the customer better.”
 
It is important for businesses to invest in technology to improve customer experience and other aspects of their operations, she said. This is a question for retailers whether they want to build, buy, or partner with a technology company when it comes to technology investment, she added.
 
Retailers should also look into expanding their services, such as providing logistics.
 
Lastly, retailers should be able to show they are sustainable, Varutbangkul said. Showing their commitment will help them stay ahead of their game in the years to come, she said.