Tuesday, July 9, 2013

Digital Revolution Transforming the Retail Industry



Retailing is one notable area of commerce that has taken an entirely new dimension with the introduction and development of various IT apparatus. Buying and selling have never been this flexible at any point in the history of commerce.This flexibility has had a number of effects on the relationship between retailers and their customers. Retailers are able to gather information about their target customers easily and are thus able to target them with ads and other relevant sales messages relating to products and services which they are likely to be interested in.

The internet has expanded the market for retailing outlets, and the ease and flexibility afforded by retail IT solutions have enabled many big retailing outlets to veer from sales into production. Self service is the new retailing trend, and it is not uncommon to find customers shopping across continents. The new self service trend supports virtual retailers like Amazon, who may not have any physical outlet. Many brick and mortar retail outlets have also created virtual outlets where customers can buy products.

The retailing industry is in one of its healthiest state for many years.This can be seen in the rate of expansion of the world’s major retailing outlets. Generally, IT improvements have had three effects on the retailing industry.

1. Reduced Costs: Administrative and inventory costs are lower thanks to various IT tools that make the gathering, sorting and processing of information simple. 

2. Speed of service: IT has helped increase the speed of the delivery of information and products at various channels in a retailer’s network. 

3. Better Service: As a result of these improvements, retailers are able to offer better service to their customers.  Using various tools, retailers are able to gather information on the unique preferences of each buyer and supply him/her the right products to suit his/her needs.

Software-as-product for the retail industry is one of the most impressive business intelligence services. Among other things, these platforms generate and store copies of receipts and invoices, warehousing and pricing information etc.Many experts have predicted with much excitement and apprehension that ‘e-tailing’ (electronic retailing) will grow to become one of the principal ways of commerce in the near future. Whether this virtual migration will be more successful, is yet to be seen. However, at the rate which e-business intelligence services are being developed, there may be no issues left to fix in the future.

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