It is often said that change is inevitable, and in retail, this is especially true. The retail industry is a sector in a constant state of disruption.
Influenced by technology and increasingly fast-paced changes in lifestyle trends, consumers are constantly evolving. And they expect the brands they purchase and the stores they frequent to keep pace with their changing preferences. In retail, it is the organizations that constantly reinvent themselves that stay one step ahead.
Looking back at the rise of e-commerce brings to life the rapid pace of change retailers must be ready to embrace. In 1990 the world’s first web browser was launched, making possible the e-commerce platforms we are familiar with today. Amazon launched in 1995, just two years later the brand had completed 1 million transactions and quickly went on to become one of the world’s largest retailers.
In 2021, Amazon accounted for almost 60 percent of all online purchases in the U.S. In the U.S., e-commerce accounts for 14 percent of all retail sales but, in some sectors, online sales are much higher, for example representing 46 percent of apparel sales.
Brands that were unable to foresee and respond to consumers’ rapid adoption of online shopping found themselves out of touch. In 2020 Neiman Marcus, established more than 100 years earlier, filed for Chapter 11 bankruptcy having struggled to adapt to the rise of e-commerce, demonstrating just how important online sales had become.
And Amazon is a leading example of reinvention for retail success. Launched as an online bookstore, Amazon excelled at listening to and delivering against consumers’ needs, leveraging data to build intuitive customer experiences and evolving to include music and video then consumer electronics, toys, games and more to become the one-click-everything-store consumers recognize today. The brand continues to evolve into new categories and formats, even opening brick-and-mortar stores as e-commerce giants explore the role of physical brand experiences.
E-commerce isn’t new, but the need for retailers to continue to evolve in the face of changing consumer behaviors driven by technological advances remains.
In 2021, 74 percent of Americans purchased goods online and that comes as no surprise viewed in the context of wider consumer habits. In 2011 only 35 percent of Americans reported owning a smartphone. By 2021 that number had risen to 85 percent. The rapid rise of smartphone ownership put the internet into consumers’ pockets and, naturally, they moved online.
Today, while e-commerce is commonplace, new technologies are reinventing e-commerce.
Since urban covered markets first made retail an organized industry the sector has been evolving. Today, technology continues to create new ways to engage with consumers and is reshaping the retail landscape. By listening closely to your customers, understanding their changing needs and identifying and eliminating pain points across your customer journey your brand will stay one step ahead.
From customer journey analytics to customer experience design and delivery, Startek® has the skills you need to deliver world-class retail experiences. To learn more about how we can support your brand, contact us.
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