Looking Ahead: 2020 Digital Transformation Grocery Trends
It’s no secret that 2019 has brought dramatic changes to the retail and consumer goods industries. In particular, the expanding impact of digital is probably causing the greatest and most far-reaching transformation in the global retail sector. As the industry gets ready for 2020, we’ve examined three key retail digital trends that are likely to keep reverberating in the year ahead.
1. Winning Partnerships
As they look for new ways to grow and prosper, both manufacturers and retailers are exploring new kinds of partnerships, both with each other and value-add vendors. These partnerships have been described by the leading technology analyst firm Gartner as “connections between partners, employees and even competitors … built into vibrant networks that can unlock value for all.” More transparent and creative partnerships create new growth opportunities in retail, and we expect to see many more of them in the coming year.
2. Shopping at the Speed of Digital Transformation
With the growing prevalence of 2-day shipping via Amazon Prime, consumers have come to expect their orders to arrive quickly. As more and more grocery retailers offer same-day delivery, speed is becoming a increasingly vital value-add to offer shoppers in order to stay competitive. As one industry commenter notes, “Studies show that 88% of consumers are willing to pay for same-day (or faster) shipping. We can see from the rise of apps like Instacart and Shipt that people are drawn not just to the convenience of grocery delivery, but the ability to get what we need in two hours or less.” This growing trend could lead to the expansion of third-part logistics companies to help feed the demand for quick, accurate delivery. In addition, we can expect this trend to accelerate the shift to omnichannel commerce. The fact is that shoppers today want what they want, fast, and via whatever channel they prefer. CPG manufacturers and retailers need to respond in kind.
3. Getting Real, Actionable Insights Out of Data
As many have said, the retail industry is data rich, but knowledge poor. In order to move the knowledge needle in 2020, it is imperative for retailers and manufacturers to effectively and efficiently analyze massive amounts of data so that they can glean meaningful, actionable insights. Timely data analytics combined with sophisticated data science allow retailers and manufacturers to “understand important information about consumer purchasing behavior, personalize the shopping experience and address a consumer’s needs based on where they are in the customer journey,” according to Bernard Marr.
By integrating digital transformation strategies, tactics and technologies into their 2020 operating plans, CPG companies and retailers are building a solid foundation for business success in the year ahead and beyond.