Retailers furnish goods concealed by a roof which agresses time and diminish cost. Cloud is not hummed, it is being used everywhere especially in the retail industry. Using cloud solutions in the retail industry provides benefits not only regarding processing data but also makes retailer reliable and makes a formidable impact in exploring the economy and assist in resolving operational costs by making the systems simpler and user-friendly. Cloud computing is an emerging computing model that offers users to access information from remote locations with all types of connected devices.
Technological advancements, social networking are significantly boosting the consumers to prefer cloud-based solutions and also simultaneously pressurising the retailers to deploy cloud solutions in the retail industry to enhance the customer shopping experience. The cloud computing technology enables the retailers to understand the changing scenarios and also assist in streamlining their offerings and making them cost-efficient, accurate and modest solutions. This also provides additional benefits such as enhanced interaction with the costumers in speed and effective identification of target audience, high supply chain visibility and improvement of distribution channel operations.
The rapid rise in the usage of mobile phones by consumers is bolstering the integration of cloud technologies in the retail industry. Retailers are exploiting new sorts of websites, product reviews, on-demand discounts and mobile pay capabilities to gain the traction of the consumers and to sustain in the competitive environment owing to the continuous changes in the lifestyles of the consumers.
Additionally, integration of virtual reality and augmented reality is among the significant trend which the retailers to likely to focus in the coming years as the demand for the online shopping is on rising, and consumers are demanding for the enhanced shopping experience. E-commerce retail sales are on the rise in the recent years and are expected to reach $3.9 trillion by the end of 2020 with U.K., China, Norway, Finland, South Korea, Denmark, Germany, U.S., as the dominant countries in which e-commerce sales accounting for nearly 10% of the total retail sales.
WORLDWIDE E-COMMERCE SALES, 2015 – 2020 ($TRILLION)
Source: Envision Inteligence Analysis & Experts Insights
The rapid rise in the digital commerce, retailers is increasingly concerned about profitability since online sales are believed to contribute the margin erosion. Some retailers are over-relied on the digital technologies are likely to dilute margins. Adoption of cloud platforms can help in changing the retailer to remain agile and adaptable to changing consumer tastes and preference and business dynamics. A unified cloud platform with CRM capabilities will allow employees and departments from all sectors of a retail business to access consumer and channel information at any time.
The future of retail cloud market will work on privacy error which is among the significant issues in recent days. To maximise the user control and to minimise the collection of data for future growth potential, data security is among the primary areas where every retailer should focus on. The technology-oriented companies and retailers are increasingly collaborating for industry-specific security solutions for the cloud networks.
For retailers looking to get ahead of the security issues, an enterprise-class hybrid cloud environment can provide a secure infrastructure to run enterprise resource planning (ERP), customer relationship management (CRM) and other regular operations such as order management, payment and distribution and so on. Retailers are among the leading targets for the cyber threats due to the massive amounts of financial data. World’s largest retailer, Walmart partnered with Microsoft to use cloud and artificial intelligence technologies to lead in the competition with Amazon.