Technology in retail: consumers want human beings

Technology in retail

Technology is undoubtedly supporting change in retail, but it cannot - must not - replace the role of human beings. VMware's latest Digital Frontiers research confirms this.

If 51% of Italians would be in favor of having augmented or virtual reality dressing rooms available, and 41% would pay more for clothing whose origin has been analyzed and approved by retail technology, the study also revealed that there are a considerable number of people who have reservations about how, when and where the technology is used.

For example, only 12% of Italian consumers want a fully autonomous checkout and only 21% of them would give up control over spending by allowing smart technology to select and purchase food and drink based on what's healthier for them.


Conversely, technology must improve the consumer experience rather than making things cheaper or more efficient for all other members of the supply chain. The challenge for retailers is to identify exactly what they need, what will respond to their type of customer and what will add value, across all channels.


Their influence, in fact, it practices in every interaction, from sales to service, from discounts to deliveries to returns and refunds: the brands that will be able to manage, analyze, understand and act accordingly will be the ones that will continue to grow in the years to come.

Retail is probably one of the most data-rich sectors. If we consider the entire end-to-end supply chain, from the production of each component and material to assembly, packaging, distribution, storage, sale, delivery, beyond the time of purchase, to use and , why not, with subscription, you quickly realize the amount of information we are talking about.

In this scenario, we are already seeing an increase in the gap between data leaders and laggards. According to McKinsey, "the 25 best performing retailers - most of which embody the powerful shift to digital, data and analytics - account for more than 90% of the industry's global market capitalization increase during the pandemic." br>

And that's not all. If you think technology has already penetrated significantly into the retail sector, you haven't seen anything yet.



From supply chain to inventory and store optimization , right down to improved delivery and customer service, technology is being used extensively to increase sales, improve service, and reduce costs.

As more and more industries go digital, and industries, there will be more and more data acquisition opportunities and retailers will have the ability to constantly improve.

Yet research has not shown that everything works exactly like this. It is often said that only a part of people can be satisfied at the same time, not all people, and this is certainly true of technology in retail.

Digital Frontiers research found that one third of consumers (41% of Italian consumers) would pay more for clothing whose origin has been analyzed and approved by retail technology.

Similarly, 42% (percentage that in Italy touches the 51%) would be in favor of having augmented or virtual reality dressing rooms available, so you can see what the dress would look like in your size and fit without having to change.

Every day we see innovations entering the market. For example, Europe leads the world in adopting checkout-free technology, according to analyst firm RBR, with 18,000 stores in Europe, the Middle East and Africa (EMEA) allowing customers to scan items via mobile phone while shopping.

Innovations like these are revolutionizing the way people shop and would not have been possible until a few years ago. But not everything is one-sided.

Although technological progress is inevitable and desirable, it is based on sharing data, particularly who has access to it and how it is used, something consumers are not yet fully ready to go.



When it comes to personal data, our research has revealed that only one in 10 European consumers are sure how their data is being used. In fact, two thirds (67%) do not yet know who has access to their personal data or how it is used.

In Italy the figure is slightly lower, but stands at 55%. 61% of European consumers are increasingly concerned about the security of their online fingerprint and less than a quarter (23%) see the benefits this technology brings to their lives.

Our study also revealed that there are a considerable number of people who have reservations about how, when and where the technology is used.

For example, only 17% of consumers want a fully self-contained checkout experience ( 21% in Italy), a figure that coincides with RBR data and is indicative of a certain disconnect between brands and consumers on how, when and where technology is used to the detriment of human interaction.

Just think of the frustrations we all feel when we are offered the chat bot tool if we need assistance to solve a problem.

Almost 70% of Italian consumers want to be able to talk to a person (in chat or on the phone) because he thinks chatbots are unable to provide the level of service they need, while only 21% of them would give up spending control, allowing smart technology to select and purchase food and drink based on what's healthier for them .

Despite advances in technology, it is clear that retailers are walking a fine line, where success requires balance, foresight and great attention.

On the one hand, both consumers that merchants can feel the benefits of technology-enabled service improvement, speed and personalization.

But this can't happen at all costs. It is a delicate game of balances in which the more technology is integrated into the process, the more we consumers desire, on the other hand, the human and physical contact, understanding, empathy and attention that only people can give.

Retailers need to make sure that developments are not "technology for the sake of technology". Or even be it the clash between digital and physical.

Conversely, technology must improve the consumer experience rather than making things cheaper or more efficient for all other members of the supply chain. The challenge for retailers is to identify exactly what they need, what will suit their type of customer and what will add value, across all channels.

Many companies are doing this in the right way. An example is Carrefour, a leading company in global distribution, which is focusing heavily on technology. The company focuses on deploying new digital platforms by 2026, massive cloud adoption, and placing digital and data at the heart of its operations to deliver a true omnichannel experience.