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5 Key Retail Industry Trends for 2022

retail

5 Key Retail Industry Trends for 2022

2021 was a year of adjustments in which the economy slowly recovered from the outbreak of the Covid-19 epidemic, a year that many believed would mean a return to normalcy, but the new Omicron variant rocked the world once again as a fresh reminder that, no, Covid has not gone away yet.

What do the next twelve months have in store for us? In 2022, we will continue to reshape the world with one thing in mind: to build our new reality… A direction that major retailers and brands were already beginning to move towards by reorganizing their channels and resources.

Looking to the future, Alfredo Pérez, International Business Development Manager at Tiendeo, explains the trends and tools that will be used by retail sector leaders and professionals, derived from his Hot Retail Trends 2022 study*.

1. Increased focus on e-commerce and digital channels

Changes in shopping habits have led to the digital channel becoming the preferred means of connecting with consumers. According to statistics, digital marketing (83%), social networks (73%) and e-commerce (63%) are positioned as the most relevant media for marketers in Latin America. The leading role that e-commerce is playing in the region is evident, 7 points higher than the international average.

In fact, in pursuit of ensuring greater traceability of campaigns, content personalization and automation strategies, retailers and brands have opted to implement the digital transformation of the consumer industry, encouraging constant interaction with the customer in both online and offline channels, resulting in 57% of marketers favoring digital channels while 41% lean towards offline channels.

2. Long live social shopping!

With 64% of the world’s population shopping via social media1, marketers are clear on where they are going to spend their advertising dollars. According to the Tiendeo study, 58% of retail executives will increase their advertising spend on social media in the next 12 months.

Although social shopping is a well-established trend in other parts of the world, this year the retail sector in Latin America will exploit the benefits of social shopping to the fullest. Accenture estimates that by 2025 the largest volume of sales in this channel will be in clothing (18%), electronics (13%) and home (7%).

3. Customer experience above all else

The main challenge facing retailers today is to identify the right time and channels to engage with both potential and repeat customers in order to offer them a seamless and frictionless shopping experience.

According to the Hot Retail Trends 2022 study, for 44% of marketing professionals, user experience is the most important aspect to consider in their strategy. Under this premise, retail is developing multi-touch strategies such as ROPO (Research Online and Purchase Offline) so that the consumer can have different alternatives and conversion points when shopping, whether on the web, e-commerce, or in the physical store.

4. More innovative stores

Digital mannequins that learn about your favorite items and guide you through the aisles, cashierless self-checkout stores, smart shelves that verify product availability or virtual try-on sessions, yes, these are the stores of the future.

Perez adds “With the incorporation of breakthrough technology (augmented reality, artificial intelligence, etc.) throughout the sales process, we will see increasingly autonomous stores that allow consumers to find what they are looking for almost instantly, receive the immediate attention they need, try it before buying it and also (why not) pay for it quickly, making a simple purchase a multi-sensory brand experience”. Retailers such as Walmart and Carrefour have already taken the plunge into this new way of interacting with customers in order to compete with the e-commerce giants.

5. Focus on the circular economy 

Customer concern for the environment has led retailers to reassess their strategies to be more environmentally conscious in order to find a balance between economic growth and sustainability.

In sustainable practices such as the Circular Economy where production cycles are closed to make the most of natural resources, the role played by digital tools is key. In 2021 many retailers began to implement more sustainable marketing actions with the digitization of the promotional catalog, long considered the key to generating brand awareness. This type of model favors the reduction of industrial waste by up to 80%.

Thus, industry professionals will step up their investment in digital advertising to communicate with customers, and this year digital channels will account for 86% of budget allocations, while offline media (outdoor advertising, catalogs, etc.) will account for 14%. 

*Study conducted in EMEA and LATAM based on the opinion of 358 directors and brand managers in the consumer sector in multiple categories (supermarkets, home, fashion, electronics, beauty, toys, DIY, pets, sports, health and travel) between November 8, 2021 and December 13, 2021.

logistics

How an Algorithm is Blended in Logistics Industry

Long before the current pandemic ever existed, the nature of global business environments had already drastically changed. Many traditional business methods had been replaced with online platforms, which were more cost-effective, flexible, and efficient.

The many advancements and changes from conducting real time-digital business transactions and more regional and global e-commerce businesses led to a higher demand for logistics services. The traditional logistics offline business model will need a transformation into real time-online business transactions in order to catch up with a global digital business model. Most logistics companies (Transporters) work independently to employ their own sales, operations, finance, and marketing staff. As a result, companies are unproductive, disconcerted, have difficulties adapting to the current trends, and fail to find better business opportunities.

During my time serving the industry, I found my work schedule inefficient, with so much time being wasted waiting for price quotations from other agents or waiting for reports to issue invoice billing. The bottleneck in the logistics industry has always been the “long wait time,” which is one of the most expensive operation costs being added to shippers. For example, when our sales department receives a new work order, they need to prepare detailed instructions, reviewed and initialed by supervisor. The operation needs to wait for order instruction before operation work can be started.

Accounting is also facing the same waiting time before being able to issue the final invoice. Although the operation is finished, paperwork is still with the operation’s personnel who is only able to return documents by day’s end or tomorrow morning.

The logistics industry needs to implement a technology platform with centralized functions of operation infrastructures, financial, sales-marketing, administration. Technology with its algorithm is able to analyze business information and auto deliver information directly to other nearby companies, allowing greater flexibility and better decision making. With a self-configured algorithm, each company is able to receive collaboration and cooperation notifications of “sales opportunity or sharing space availability”, which each company can share with their consumers.

With a technology algorithm, digital logistics information is integrated, communicated, and distributed to the shipper without delay. The slow process of waiting for documents or waiting on instruction before work can be started will no longer exist. Shippers and logistics companies (Transporter) can easily review, evaluate and make a selection in real-time. Detailed digitized service requirements of schedules, location pickup and delivery, pricing structures, and other charges are automatically displayed in real-time before the shipper makes final confirmation. This will provide a new business solution that provides logistics service transparency and trust to all logistics users.

The question is, what will it take for the logistics industry to transform its offline business method into a real-time technology platform? There are complicated logistics variables that should be carefully managed properly by a developer, such as customs, financial and transportation where local regulation is varied from one country to the other. I am optimistic there will be a company that has deep knowledge in logistics and technology infrastructures able to design, develop and deliver a fresh solution to this giant industry, where each marketing-sales-operation-customer service, finance, and administration information are delivered to Shipper and Transporter without delay.

Our world is beginning to work more favorably toward a modern digital lifestyle which is simpler and more efficient than our grandfather’s times.

cloud computing manufacturing market

The Benefits of Cloud Computing for International Companies

Cloud computing has revolutionized the field of tech in recent years. Pretty much all companies, no matter their size or scope, use cloud-based resources to their advantage. Organizations increasingly rely on artificial intelligence (AI), data analytics and automation to remain relevant; and the cloud makes these services available more quickly than ever before.

In addition to speed, the cloud offers the ability to provide myriad services at scale using technologies ranging from traditional virtual machines to serverless computing. As businesses require more flexibility, they also use the cloud to process large volumes of complex traffic. The benefits that cloud computing offers businesses are simply too great to ignore.

Cloud computing certifications are more in-demand than ever for good reason — they ensure workers can both leverage and fulfill the promises that are found in the cloud.

The Cloud: Today’s Infrastructure Revolution

Before the cloud revolution, businesses worldwide had to deal with a wide array of issues stemming from designing and running their own IT infrastructure. What used to be a time-consuming and costly undertaking was made even more expensive by having to keep IT support and security staff on the premises.

However, cloud platforms like Amazon Web Services (AWS), Microsoft Azure and Google Cloud were able to take some of those issues out of the equation. Nowadays, international companies can focus on running, optimizing and scaling their operations by using third-party cloud platforms.

How Cloud Computing Impacts International Businesses

The cloud has changed the playing field for companies throughout the world. Let’s take a look at five essential ways the cloud has revolutionized the way global organizations operate. Pay special attention to how cloud computing has revolutionized how IT professionals support today’s businesses.

1. Rapid Scaling Capabilities

International businesses are increasingly dynamic and need to adapt to changing circumstances more often than ever before. Without the cloud, organizations worldwide never would have been able to adjust to the global personnel and supply chain challenges we’ve experienced over the past couple of years.

A company that meets market demands and “blows up” seemingly overnight will need to substantially expand its IT infrastructure and efforts in a short amount of time. On the other hand, a company that is going through a tough period might need to scale down a bit in order to cut costs — and this can result in laying off staff and smaller budgets for IT infrastructure maintenance. With cloud solutions, however, both of these scenarios are actually quite easy to handle.

Cloud computing providers allow you to quickly scale your operations up or down. No matter your circumstances, cloud platforms will help you optimize your company’s resources and expenses in every situation. The catch? You will need to train technologists to understand how to optimize your resources and map them to current business needs.

2. Cost-Efficiency and Savings

Before cloud technology was widely available, companies had to spend a lot of money on creating their own physical IT infrastructure. This infrastructure often couldn’t adapt quickly. It also became obsolete quite quickly. What’s more, organizations had to employ entire teams of experts to run, monitor and optimize this infrastructure.

This situation wasn’t sustainable. Businesses often found themselves focused on thorny technology issues, rather than the activity of mapping ready-made technology to their mission-critical business concerns. The result was that businesses incurred a serious opportunity cost, because they could not focus resources in the right direction.

Using cloud platforms allows businesses to remain on-task, and use technology more wisely. Organizations will still need to employ specialized technologists to use the cloud. But workers of all capabilities will be able to work far more efficiently with cloud resources. In other words, more employees – even those who consider themselves “not technical” – will be able to use cloud technologies to create sophisticated solutions. As a result, technology will be truly integrated within an organization to create more useful business solutions. Some call this trend the “democratization of technology.”

3. The Opportunity for Improved Teamwork and Communication

Effective communication and teamwork are fundamental to the success of any international business. The cloud has become the primary platform for increased collaboration and the ability to leverage talent more efficiently. Over the last decade, collaboration between overseas teams, remote work and local third-party contractors using software as a service (SaaS) tools like Office 365, Salesforce and Google Apps has become the norm.

Effective communication will be even more important as organizations face new challenges moving forward. These challenges will include interpersonal and intercultural communication issues, as well as coordinating the use of cloud applications accessed from various parts of the globe.

4. Enhanced Security – If Managed Correctly

Like any powerful set of technologies, the cloud can provide enhanced security, if it is managed correctly. In years past, organizations in all industry sectors worried about perceived cloud security issues. One worry was that the platform provider could somehow access the data of its clients. Most governments and businesses worldwide are now convinced that this is not an issue, and trust the cloud with even the most sensitive data.

Another perceived weakness was the perception that the cloud provider was fully responsible for all security. It is true that cloud platforms give businesses the freedom to choose their own security settings, restrictions and policies. Cloud platforms make it possible to use multi-factor authentication (including 2FA), state-of-the-art encryption and advanced procedures. They can also provide the ability to automatically update certain elements of the necessary infrastructure to support a business.

But it’s important to understand that using the cloud implies a shared responsibility model: The cloud provider is responsible for making sure that the platforms that support an organization’s applications are secure. And organizations that use cloud-provided platforms shoulder the responsibility of making sure that the code they create and use is secure. Organizations are also responsible for making sure they configure cloud applications and services correctly.

Consider the following analogy: If you lease an apartment, it is the responsibility of the apartment complex to provide a dwelling that conforms to fire safety codes. For example, the dwelling should have working fire detection equipment and should have safe appliances like a stove, microwave, etc. But the apartment complex is not responsible if the person living in the apartment misuses those appliances and starts a fire. This is why the world needs more qualified workers that understand where responsibilities start and stop when it comes to uptime considerations, business continuity and disaster recovery.

5. Disaster Recovery and Data Loss Prevention (DLP) – More Possibilities?

Data loss can be devastating — and potentially fatal — to a business. One of the biggest issues with traditional installed IT solutions is that they are more likely to malfunction and fail catastrophically. If such a thing occurs, it might be hard to recover your data. Depending on the backup and recovery protocols implemented, you might not be able to save your data at all. Thankfully, cloud computing makes it possible to take care of that issue as well.

When using a cloud platform, your data is stored away from your premises on third-party servers. Cloud platforms can ensure that all your information is safe in the event of downtime or other issues. They can also implement advanced backup and security protocols so that no data is lost — even if the servers shut down unexpectedly.

Yet, businesses still need to enable these services, and also weigh the costs associated with using them. With the cloud, almost any service is available. But that availability often incurs costs that need to be carefully considered.

Fulfilling the Promise of the Cloud

Organizations worldwide will continue to invest in technologies that allow them to thrive. The cloud makes it possible to leverage technologies and architectures that were once out-of-reach to most businesses. We live in a cloud-first, hybrid computing world, where cloud-based solutions will work together with more traditional data center and server room solutions. As long as we have leaders and workers who know how to efficiently manage cloud-based technologies, international companies will be able to adapt to current conditions and thrive.

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As CompTIA’s Chief Technology Evangelist, Dr. James Stanger has worked with IT subject matter experts, hiring managers, CIOs and CISOs worldwide. He has a rich 25-year history in the IT space, working in roles such as security consultant, network engineer, Linux administrator, web and database developer and certification program designer. He has consulted with organizations including Northrop Grumman, the U.S. Department of Defense, the University of Cambridge and Amazon AWS. James is a regular contributor to technical journals, including Admin Magazine, RSA and Linux Magazine. He lives and plays near the Puget Sound in Washington in the United States.

digital logistics

The Arrival of Digital Logistics

Consumers turned digital before manufacturers and distributors, including those in the logistics industry. It may be hard for companies to keep up with the constant changes and technological advancements. Cloud technology is a solution for companies to stay up to date, helping the traditional logistics industry to become a “virtual logistics industry.”

New technology changes many aspects of how a logistics business operates, brings new market entrances, brings in new customers, and manages new partner expectations, which consequently triggers new business models. Traditional methods of running logistics need to be revamped to become digitized and more transparent among partners. Operations need to be adjusted where documents accompany one shipment and if one document is missing, a shipment can be delayed sitting idle for days.

The logistics market, with an estimate approaching US$ 6.6 trillion dollars, is at stake. Logistics companies cannot afford to sit back and watch, they have to be proactive to new technology innovation. New technology will target digitization and most of logistics functions and its administration, such as automated scheduling, consolidation of pick up and deliveries from multiple shippers, auto instruction to the right warehouse operator to pick up certain items, automate marketing functions to look for cargo on return trips, deliver auto work order to driver, auto-generated issue invoice to customers, and more. With the help of technology in logistics services, a new approach in collaboration among partners is essential as it will provide capacity fulfillment to reduce much-needed operation costs.

 An adaptation of real-time digitization and data automation under one platform will give access for independent companies to participate in a technological economic era. It is estimated 535,000 distribution centers scattered in the US operate as standalone independent companies. Now, imagine if 5-7 percent of them are willing to collaborate with sales and customer services references under one logistics platform. Each company and its customers will gain efficiency, productivity, and faster workflows.

The environment of traditional logistics businesses that once took days to finalize is now being reduced by the real-time technology digitization revolution with simple real-time clicks. Technology provides an opportunity for many people in isolated areas to participate in new economic and technological ways of living.

The environment of business is becoming fundamentally altered by globalization, and followed by recent pandemic that have devasted most traditional business prospects. Our strategic decision to stay competitive and to operate much more efficiently has to be based on these contexts. Logistics companies face a lack of coordination and collaboration between or among effective partners for some time, resulting in a decrease in overall efficiency and a higher operating cost on different systems. An improvement of sharing real-time information in cloud platform among active logistics partners is one of the key elements in improving collaboration and cooperation, including an increase in the bottom line.