COVID-19 Enforcing Digital Transformation in the Retail Sector

By Apac CIO Outlook | Friday, July 31, 2020

FREMONT, CA: The COVID-19 pandemic has transformed business as we know it and forced manufacturers to think of new ways to conduct their business. The outbreak of the virus has led to several behavioral changes in both the consumers and the producers. Business leaders are never faced with a challenging task to develop new business models suitable for changing times. The retail industry has become one of the essential services over the last decade. The pandemic, however, has raised some serious questions about the traditional way of conducting business. The problem becomes more severe when China, the world’s factory, is itself spiraling in the confusing and complicated global reaction to the crisis. COVID-19 has forced the retail industry to adopt digital technologies and change business processes for a better future.

Digital transformation has been creeping into every industry over the last few years, and the retail sector is no different. Finance, banking, mass media, education, manufacturing, and healthcare have all seen the benefits of digital transformation. Companies are going digital to enhance their services and product offerings, to meet the changing demands of the customers. The whole concept of digital transformation is centered around the satisfaction of the customers. It also involves other aspects like process organization within the company, its employees, external communication, and technologies used.

Digital transformation in the retail sector is not natural, but companies can see the desired results from the implementation with a good plan of action. Here are some of the advantages of digital transformation.

Easier Connection

Digital transformation makes it easier for retailers and their customers to connect and communicate via social media accounts, websites, chatbots, mobile apps, and more.

Smoother Operations

The implementation of cloud-based technologies will improve operations, both internal and external. It reduces the amount of time spent on sharing information with customers and enhances client support.

More Convenience

With the help of Artificial Intelligence (AI) tools, customers can shop without cashiers. AI automation of some processes will enhance the customer experience. Also, it enables retailers to sell their products not only in physical stores but via websites or mobile apps.