Retail Innovation Map: Emerging Technologies & Startups

As consumer preferences and behavior have changed with the introduction of eCommerce businesses and on-demand delivery, retailers turn to emerging technologies to find alternative ways to keep their customers happy and serve them from all angles. At StartUs Insights, our innovation & startup scouting analysts researched 8.000+ startups to identify the key technologies driving the digital transformation in the retail industry. Innovations such as artificial intelligence, augmented reality, and advanced data analytics are being leveraged to enhance the shopping experience, streamline operations, and provide personalized services.

Key Technologies Driving Retail Innovation

Augmented Reality (AR) & Virtual Reality (VR)

Augmented reality is one of the more common technologies already used by retailers globally. As brick-and-mortar stores increasingly face challenges due to the rise of eCommerce, traditional stores are on a journey to transform into showrooms. In these, AR supports vendors to increase interaction with customers through smart dressing rooms, beacons, or AR catalog apps – resulting in increased customer satisfaction and higher sales. Furthermore, utilizing VR in physical stores massively increases opportunities for retailers. Firstly, the virtual redesign of a physical store allows for the optimization and even the creation of a new experience for customers – every single time they enter that store. Secondly, the virtual demonstration of products holds great potential as shown by the clothing and cosmetics industry.

Artificial Intelligence (AI) & Big Data

Through understanding customer behavior and anticipating what customers will purchase next, forward-looking retailers make use of artificial intelligence to drive sales. Said to eventually replace shopping assistants, AI also powers chatbots and voice-assisted shopping devices. To make these systems effective, vendors utilize Big Data. This data is only valuable once vendors can make sense of it. When done right, the possibilities of big data range from forecasting product demand and optimizing the price range (markup and markdown optimization) to identifying target audiences.

Internet of Things (IoT) & Mobile

In the retail industry, the Internet of Things allows for the gathering of data which is further analyzed to enable more informed decision-making in regards to stock control, product placement, and increasing efficiency. RFID, NFC tags as well as different sensors are used for tracking items through the supply chain and keeping an eye on in-store inventory in real-time. Another significant factor is Mobile. With 82% of customers already consulting their smartphones before finalizing their purchase decision, the trend toward mobile will continue its significant influence on the retail sector. Vendors not only optimize their websites accordingly but also start to add emerging technologies such as AR- and VR-enhanced apps or upgraded mobile payment models to increase convenience for customers.

Disruptive Retail Startups and Solutions

Let’s take a look at what’s next for the retail industry by exploring several hand-picked retail startups and scaleups:

• actiMirror: A smart mirror technology showcasing the power of data analytics and targeted media content in the retail industry.
• AdvanPro: A high-tech company and leading supplier of soft smart sensing technologies, including fabric sensors for wearables that can detect data, including pressure and strain.
• Bindo: A retail technology company whose core product is an intuitive cloud-based iPad point-of-sale (POS) system that integrates brick-and-mortar stores with their online sales channels.
• Brand Pit: A market research tool that combines the power of image recognition and social media analytics to help brands discover all about their end consumers.
• RetailNext: The worldwide market leader in retail analytics for physical retail, delivering comprehensive, real-time analytics that empowers retailers.
• Shopl: A South Korean startup that develops a retail data management platform to collect point of sales data and perform store data collection.
• Botify: Helps brands improve discoverability across both traditional and generative search engines by going beyond SEO to optimize content visibility for bots and agents.

The Evolution of Brick-and-Mortar Stores

Technology has certainly seen a big evolution over the last few decades. In an effort to keep up with consumers’ demands, and with the internet pushing them into the eCommerce era, retailers have been searching and experimenting with ways to satisfy target audiences. Brick-and-mortar technology is a hot topic for debate; by welcoming consumers to interact with retailers’ branded technology, companies are hoping to keep them in the store longer to hopefully buy more and create a relationship. However, retailers should be carefully evaluating their options to ensure that each addition is adding value to the consumer experience. This shift not only helps in retaining customers but also in attracting new ones in a highly competitive market.