Research
The world of retail has seen some major changes in recent years thanks to the introduction of new technology. Even more changes are expected in the near future, as the latest technology trends take hold in Asia and beyond, but which are the more important trends to be aware of?
Augmented Reality and Virtual Reality Can Enhance the Consumer Experience
These are two different types of technology that have made huge advances lately. Augmented reality (AR) adds virtual elements to a real-world view, meaning that it could be used to let someone try on clothing without it being physically present. On the other hand, virtual reality (VR) immerses the user in a computer-generated world while being completely isolated from the real world, which would let them re-create the experience of being in a physical store without leaving home.
Payments company Worldpay has recently looked into this subject, and summed up that VR and AR are growing in popularity across the Asia Pacific region. Their research showed that China is the current leader, with 95% of the Chinese consumers who took part in the survey confirming that they have used either VR or AR while shopping in the last three months. All of the Chinese respondents have tried VR at some point, which compares to the 19% of Japanese shoppers who have done so.
The room for growth in these areas is seen in the prediction from the Research and Markets site, which predicted at the end of 2019, that the AR and VR markets in Asia should grow at a rate of 38.4% in the period up to 2026. This led to them suggesting that the addressable market value in this area for the next seven years is in the region of $172 billion.
Artificial Intelligence Analyzes Data and Boosts Efficiency
While AR and VR applications are pretty easy to spot, the use of artificial intelligence (AI) is often something that the consumer isn’t aware of. For example, it can be used to help the retailer to better understand their customer data and offer a more efficient experience.
We can see how this might work by looking at how AI is used in other industries. In banking, AI is used to help lenders to make better decisions and to detect fraud or money laundering. They are also starting to incorporate AI into their customer service offerings. It can be used to automate processes in industries like manufacturing, or for data analysis in healthcare too.
Retail firms in Asia may also learn from the way that AI is used by traders in the financial markets. As an example, the Top Online Forex Brokers site mentions The Skilled Trader and Jet Trader Pro in their guide to forex robots. These robots are designed to keep an eye on the movements that take place in the currency market as well as the overall economic picture, allowing automated trading. This is a great leap forward, especially within an industry that has, for so long, relied on human judgement and expansive computer systems to make decisions.
A report from Microsoft at the beginning of 2020 pointed out that over two-thirds of Asia-Pacific retailers haven’t integrated AI into their businesses. Even more surprising is the fact that 23% of the retailers in the region haven’t even given this technology serious thought yet. In Singapore, the fact that online shopping has grown considerably in 2020 could help to encourage retailers to look into this area more fully.
A Look Ahead
It is clear that these cutting-edge technologies are already helping businesses in many different industries, including retail. Their introduction to the retail sector in Asia is still at its early stage in some countries, although more advanced in others. The next few years will be crucial, as those firms that adopt VR, AR, and AI may be seen to hold a critical advantage over their competitors who take longer to get up to speed in this area.
