Trends in Disruptive technology:
Influence of Artificial Intelligence:
The robots and AI bots were once looked like an alien but now we are in an era where we work along with bots and they do all the works which human can do sometimes more than human. Almost all the retail giants have started experimenting on this and first one to do this is Amazon they now building Amazon go shops where people can take the products of their interest and they can pay through the amazon mobile application. This will save the customers waiting time they say. Also, this real time experiment has paved way for many new startups to start their business on this. This situation may now seem to be abnormal but in future it will be very that we will live in this kind of world, where we will see more of machines than human.
Internet of Things:
Knowingly or unknowingly we are using this technology in our day to day life and this thing have almost changed our lives. We all have seen man operating the mobile through voice commands while driving car this is an example of IoT. This technology has stuck with us in our routine life right from getting till we go to bed this mode is with us all. The tracking of products ordered through online their exact delivery time has made the customers to move more towards online retail markets there by ignoring the local retailers.
Virtual Company- A companion to human:
It is the organization that helps the human to find better solution through a computer or through other tele communication network. Online e-commerce sites although simplified the work of human they had issues with the size of the products which were later solved by virtual company. Lenskart is the best example of such even today this site uses the best virtual technology to provide for the customer. Once the customer uploads his/her photo in the website it shows the lens and frames of the customer face size which will be easy for the customer to choose best products without worrying about the sizes. This made way for the customers to be comfortable with the online stores rather than waiting before the offline or physical stores.
Personalized shopping experience:
People generally go to shops to purchase their needful items but the advertisements which they receive pamphlets, television advertisements most of the time doesn’t suit the customer. This problem was again solved by the online retailers by providing exactly their own preferences without wasting the time of customers. The customer can choose their product through wide range of categories available in the online markets rather going through all places in a physical market. This made the purchasers to buy exactly what they want and thus reducing the time of customers in purchasing products. Also, there are websites like printvenue.com which provide customized products where customers can themselves decide on designs.
Bridge between Online and Offline stores:
There were times where if a store functions online will not have an offline store and if a store functions as a physical store will not have online stores but now the conditions have changed. As the customers prefer both online and offline purchases and so they go for both medium in order to sustain in this market competition. Stores like amazon, lenskart have started their physical stores in order to reach out to maximum people around the world. These activities have build a bridge between online and offline stores. Thus, once online retailers are now expanding their business through physical stores too.
Future of online retail markets:
The future of this sector is bright because it satisfies the needs of the customers and provides exactly what the customers want. They also offer excellent services and also for selling unique products these online retailers will continue to fly high in the near future. Also, an article by Derek Thomson has said that “Five years from now, we won’t be debating whether ‘e-tailors’ are taking share from brick-and-mortar retailers, because they are all the same.” This is because almost all the online stores have started to open their offline place which will attract more customers as the online shops have already done required marketing. The founder of Warbey Parker an America based eyeglass sellers have said that almost 75% of their offline customers were once their online customers. Hence it is proved that future of online retail markets will break away all the local markets and build new markets in near future. A study by Thomas Camueller has explained that there will be huge rise of online retailing in developing nations.
Advantages of online retailers:
· Sellers can display their merchandise in any part of the world without any additional expense.
· The retailers can expand their business all over the world keeping online marketing as their main advertisement.
· The products can reach to potential customers and a company can gain many new customers.
· Even small retailers if they move online they can find a good market in the world.
· Can easily position a product in the market and new demands can be created.
· Can expand the product to any part of the world.
Disadvantages of online retailers:
· Infrastructure cost and setup cost for fulfilling online orders are too high.
· It is really hard to gain the trust of the customer.
· High security concerns.
· Personal interaction is very limited and there are many competitions in the market.
As the retail industry moves more towards online it will be the right time for the traditional industries to move towards something like that otherwise they will have to lose their markets like how nokia lost their market to Samsung and Apple in mobile industry. This will be the right time to get adapted to the technology if the companies don’t take this issue seriously they will have move out. Also, the retail market is largely disrupted by the online and they are influenced more by the same. Digital is not just an interface, it is disruptive factor that changes the business model, how we think about the intersection of physical and digital, and how retailers compete. In the war between online and offline the sure winner is online and they are taking up the offline market with and so the corporates which has this online retailing has started their offline functions too. Also, there are so many areas which are not yet touched by the retailers which can be taken by young entrepreneurs and they can continue to follow this online business get more into this disruptive technology.