5G Redefining Retail and Consumer Technology
The term “5G” is currently one of the most used terms in the technology industry. Globally, technological firms have been advancing 5G mobile technology quickly and predicting it will be the next great revolution.
However, how will 5G change the retail sector?
The fifth generation of mobile internet connectivity is known as 5G. It combines various technologies and methods for future networks to meet demands for maximum performance and reliability. As a result, retail businesses may accelerate the development of cutting-edge technology with 5G, collect more data, and eventually aid in the development of enduring relationships with customers.
Requirement of 5G:
With almost 9,000 stores closed in the last two years. The retail sector has seen an astonishing rate of store closures. The majority of retail spending is now done online. Stores were forced to close due to falling foot traffic, the decline in popularity of malls, and consumers’ preference for internet purchasing over traditional “store” shopping. The rise of e-commerce and the ongoing trend of online shopping are just a couple of the elements that contributed to the collapse of traditional retail. Customers now enjoy the freedom of buying online as consumer behavior and purchase patterns have changed.
- Retail establishments with physical locations suffer from the explosive rise in e-commerce. To entice customers away from internet purchasing, retailers must offer a convenient and engaging experience. Consumer technology is essential to accomplish that.
- Consumer behavior and purchasing patterns have also evolved, and customers now appreciate the convenience of shopping online.
- The lead-up to 5G technology gives retailers a new strategy in digital transformation the essential momentum as challenges and trends push them to reinvent and redefine their position and strategy to stay relevant. By providing many channels and resolving connectivity issues in Stores, On the field, and in warehouses, 5G adds value. Poor and unreliable connectivity at the store is causing problems and business loss. Furthermore, implementing modern AR/VR use cases is still only a proof of concept due to a bandwidth shortage.
- High-definition photos and video are required for assisted resolution and debugging on the field.
- Applications, modern video analytics, and robotics require sufficient network capacity and bandwidth at the Warehouse.
Therefore, 5G will aid in overcoming numerous network and bandwidth-related difficulties. Still, for the corporation, it is crucial to comprehend what else 5G may provide that will be a game-changer and support the ROI regarding the investment.
5G as a driver of retail’s digital transformation:
According to the research “2020-The Future of Retail Technology,” 96% of retailers invest in technology to increase operational efficacy, and 89% rely on it to improve customer experience. Therefore, in their journey toward digital transformation, retailers continue to place a high priority on operational efficiency and customer experience.
The following use cases for retailers will be stimulated by 5G.
- Augmented reality, mixed reality, and virtual reality immersive experiences using 5G to improve brand-customer connection – Processing power and mobile data are both in high demand for immersive technologies like augmented, virtual, and mixed reality. Leading stores are introducing immersive experiences that allow potential customers to try on various designs, sizes, and colors, get real-time SME advice, and other things.
- Augmented in-store experiences – New customer experiences (like Magic Mirror) that assist in the search for the newest clothing, offer recommendations and customizations, alert salespeople or robots to retrieve other products, and even make it simple to share it on social media will be part of the future of in-store encounters. Face-to-face virtual assistance over 5G is possible.
- IoT Solutions – Some features of IoT solutions made possible by 5G include:
- Retailers can get demographic information on who is in the store using IoT-based facial and object recognition technologies and sentiment analysis of the merchandise.
- IoT solutions may monitor assets, notify delays in order handling, and proactively address the route, location, environment, and shipment handling, among other things, to provide supply chain management that is smart and optimal.
- With facial recognition technology and CCTV video feeds, IoT can follow suspicious activity and help catch shoplifters.
- IoT can assist with smart energy and facilities management in areas like smart lighting, water conservation, etc., allowing retailers to run at their most energy-efficient costs.
- Real-time insights and suggestions using advanced analytics integrated with AI, IoT, and 5G. Retailers can enhance consumer labeling and target consumers with specific products and an extremely personalized shopping experience.
Retailers will need a clear plan in the lead-up to 5G because the retail business is dynamic and will be here soon. To get started and investigate areas of business disruption with cutting-edge goods and services, it will be necessary to have a roadmap. The benefits of 5G for retailers include uninterrupted business operations, a dependable network that can handle peak traffic, extreme personalization, AR/VR shopping experiences, quick access and real-time, streamlined operations, access to central systems, and ease of tracking goods, prices, inventory, and customer information.