Retailers must “redefine business models” and integrate more technology into their operations if they are to survive the COVID-10 pandemic, according to GlobalData.
The data and analytics company has warned that the crisis has accelerated the shift away from the already “outdated” bricks and mortar model, and that retailers must embrace new retail technology.
With no end in sight for when retail might return to ‘normal’, GlobalData’s retail analyst Hrishabh Kashyap warned that we “will witness a large number of retail failures in the coming years if retailers fail to accommodate new technologies in their businesses.
“The brick and mortar retail format was already struggling before COVID-19 as digital transformation changes the way we live and do our business. Post COVID-19, the definition of normalcy will change forever and there will be an unprecedented rush towards adoption of technology by the retailers.
“Technology will emerge as the game changer for the retail landscape in the immediate as well as long-term future.”
Chinese retailers, who are weeks ahead of the rest of the world in terms of the development of the crisis, have learned to harness technology to their advantage.
LVMH launched a partnership with Chinese social media giant Weibo, enabling the luxury powerhouse to keep customers informed and launch initiatives like online pop-up stores.
Meanwhile footwear giant Converse launched a virtual reality (VR) showroom in China with Nuorder in a trend likely to expand well beyond China in the coming weeks.