Looking Ahead to 2024: Key Trends in Retail, According to Denis Baranov
As we approach the new year, it’s time to start looking ahead and predicting the trends that will shape the retail industry in 2024. Denis Baranov, head of retail & distribution practice at DataArt, shares his insights on what to expect.
Generative AI continues to be a hot topic in the tech world, but it comes with its fair share of questions and concerns. Data privacy, GDPR compliance, and ethical risks are still being debated. While it’s an intriguing trend, its full potential and safety are yet to be determined.
While discussing advanced trends like Generative AI, it’s important not to overlook the basics. Sometimes, organizational-level solutions can solve problems without the need for advanced technology.
Speed has become a paramount concern in the retail sector, especially with the shifts brought about by the pandemic and digitalization. Customers now expect rapid deliveries and an online-like experience. This puts pressure on businesses to adapt and leverage new technologies like AI to maintain competitive service levels.
Sustainability has taken center stage for businesses, with a growing emphasis on reducing waste and promoting reuse. The retail sector is no exception, as seen during events like Black Friday, where the focus has shifted towards secondary markets and environmentally-friendly products. Companies are now striving to understand their environmental impact, including hidden costs like the CO2 emissions from cloud services.
Returns have become a challenge for retailers, as rising costs associated with free returns have led some customers to return to traditional offline shopping methods. This highlights the need for businesses to adapt to changing customer preferences and utilize technologies like virtual fitting rooms or AR for visualization.
Cloud providers have expanded their roles beyond traditional services and now offer a wide array of offerings. Companies like Google, AWS, and Microsoft are becoming conglomerates, investing in various industries. This indicates a shift towards larger corporations influencing multiple aspects of the business world.
With more data and operations moving to the cloud, cybersecurity has become a pressing concern. Hackers pose a significant threat to businesses, making cybersecurity a crucial aspect of operations.
While the initial hype around blockchain, Web3, and cryptocurrencies has subsided, these technologies are still in use. However, they no longer generate as much excitement as before. On the other hand, concepts like aggregators are still important and evolving to provide more personalized experiences.
As we enter 2024, it’s crucial for retailers to stay ahead by understanding emerging trends and strategically approaching technological advancements. With insights from experts like Denis Baranov, the industry can navigate the ever-evolving retail landscape with confidence.
– Denis Baranov, head of retail & distribution practice at DataArt