Looking Ahead to 2024: Key Trends in Retail, According to Denis Baranov of DataArt
As we approach the new year, it’s time to start looking ahead and anticipating the trends that will shape the retail industry in 2024. Denis Baranov, head of retail & distribution practice at DataArt, shares his insights on the key topics that will define the industry’s trajectory.
Generative AI continues to be a hot topic in the tech world, but it’s important to address the questions and concerns associated with it. 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.
When discussing advanced trends like Generative AI, it’s crucial 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, driven by the shifts brought about by the pandemic and digitalization. Customers now expect rapid deliveries and an online-like experience. This increasing need for speed 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 more environmentally friendly products. Companies are striving to understand their environmental impact, including hidden costs like the CO2 emissions of cloud services. Initiatives have emerged to enhance predictability and address sustainability concerns, particularly in supply chain management.
Returns have become a challenge for retailers, as the rising costs associated with free returns have led some customers to revert to traditional offline shopping methods. This shift highlights the need for businesses to adapt to changing customer preferences and utilize technologies that can support them, such as virtual fitting rooms or AR technologies 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 more like conglomerates, investing in various industries. This evolution signifies 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, and large corporations are frequent targets for data breaches and cyberattacks. As a result, cybersecurity has become 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. Trends like the Metaverse have also seen a decline in attention recently, but they may resurface in the future. On the other hand, concepts like aggregators remain important and are evolving to provide more personalized experiences.
As we enter 2024, it’s clear that staying ahead in the ever-evolving retail landscape requires a keen understanding of emerging trends and a strategic approach to technological advancements.
– Denis Baranov, head of retail & distribution practice at DataArt