Retail, as we’ve known it, is changing dramatically. All this is a result of integrating technologies and generational matters. The best way to stay relevant in a business is by making sure you meet up with the changes that are taking the retail world by storm. Therefore, it is safe to say that the Nordic retail industry is constantly evolving, transforming shopper behavior and creating better ways to do business. In this article, we’ll take a look at the future of Nordic retail and provide insight into the current trends in the sector.
Story by Far: Transformation of Traditional Stores
In recent years, the Nordic region has seen an immense change in the retail business. These changes are only a smidgen of what is expected in the near future. The rise in the number of companies dedicated to creating various software also has a direct influence on the behavior of Nordic residents. More and more people are looking for ways to purchase in a convenient and yet secure manner. Digitalization aims to make the shopping process easier for customers, so:
➪ In what ways is digitalization affecting the Nordic retail industry?
There is an increase in non-traditional stores. Every day vendors are increasingly opening online shops. Another reason for this is because online retail stores are more capable of reaching a larger audience from across the world.
With the various new software that allows for easy payments, it is no surprise that customers would prefer the online methods of shopping. People simply want to shop in the comfort of their homes or when it is convenient. So you might want to set up an online presence for your retail business. That is exactly what large retailers are doing.
➪ Amazon example:
Basically, Amazon alone has amassed up to 63.4 billion dollars in the second quarter of 2019. The rise in sales is mostly due to online sales. This is because it has been able to change with the new trends in technology. You will have to equip your team with the very best platforms and software for performance to be top-notch.
Incorporation of Ecosystems
Unlike how most businesses rely on looking at their competition to make changes that will improve profits, future retail requires more. Penetrating new markets and reaching larger audiences will require to use a set of platforms and ecosystems. These will facilitate how to perform several activities such as navigating data.
Incorporating new ecosystems will also have an influence on how you compete in your industry. 82% of leading players state that building ecosystems are crucial to attaining a competing advantage.
Another area that will be improved is cooperation within your business. Here, new retail and manufacturing could be achieved by the cooperation between branding business and supply chains according to the market requirements. After all better cooperation in business will lead to increased productivity. For example, open API retail trading platforms and the cooperation among fintech and banks could expand the ecosystem around the cardholders with the disappearance of card plastic and physical POS (The Point of Sale).
Change in Culture and Leading Edge Consumers
One of the biggest challenges you will encounter is the shift in culture. The shift right now is towards data and digitalization. It will pay to keep yourself in the know of what is happening in the digital world. That way you can also apply the same changes to your business. Changes can range from how to identify trends in millennials and generation Z behavior to what ways to make purchases more secure.
Working with more data will only facilitate the tasks that your employees have to perform, meaning increased work efficiency. If you are already performing well then it means more profits. Therefore, you should implement a data-driven culture. Having a lot of data to deal with is not enough. You also have to make use of software that makes data more accessible to different departments within your retail company.
Setting New KPIs for Nordic Retail Companies
Using the current KPIs (key performance indicators) may not be a convenient way to monitor the performance of a retail business in the future. It would be advisable to come up with new KPIs that are more suited to handling new data and the various digital products. Thus, you need to apply software which enables you to track vital KPIs.
A good option would be to use a software that allows you to not only mix various data but also create a visualization of data that employees will find easy to understand. Before you get started:
- You have to define what the main KPIs your retail will use.
- Once you have the proper KPIs then it will be easy to identify areas of deficits and how to improve them.
- Instead of looking at the magnitude of data, just focus on those that will improve your performance and thus profits as well.
Adopting New Tools and Approaches
The future of retail lies in using tools and approaches that will keep businesses ahead of competitors. Large companies are more likely to be successful even with new trends because they can easily adopt new tools that facilitate the work employees have to do.
One way to stay ahead is by always searching for new technology that may be useful in your company. Once you get an insight into what to expect from the future marketplace, you are more likely to put your business ahead. Here are some areas that need tools to transform Nordic retail include:
- Relations – for example, applying messaging apps can improve relationships with customers. Businesses and startups can use chat apps for better support and communication.
- Infinite data – collecting commerce information and providing deep-learning algorithms are a crucial driver of innovations the Nordic retail.
- Micropayments – applying mobile payment infrastructure for the clients is the future of commerce.
- Augmented reality (AR) – with this new technology and usage of mobile devices, the Nordic retailers can benefit, for example, while enabling clients to test products/services before buying any.
- Blockchain data – it is a way of securing information by connecting it within the encrypted chain.
For example, by applying the blockchain platform with smart-contracts on Ethereum, the Nordic Store company ordered assets from IKEA-Iceland and made an electronic invoice by using Monerium digital cash.
Funding in Adaptive Digital Solution to Transform Business
At the end of the day, it all lies in understanding your customers, both present and future. Predicting future trends puts you on the right path. It is not about how fast you digitalize, it is all about being consistent. But the goal is to change so that your business can perform better in the future. If you want to transform the business model, so you can better serve consumers, you have to optimize digital data.
To remain competitive you have to incorporate digital technology. There are many software and platforms on the market that are meant to facilitate how you integrate technology into your Nordic business. The future of Nordic retail, therefore, lies in how different companies make use of technology to improve services and profits. At bvblogic, we believe that Nordic retail would not be dead. Clearly. Online experience and bricks-and-mortar shopping may coexist and Nordic residents can have access to any experience.