Bringing Creative Minds Together for Retail Innovation

In a world where the only constant is change, we cannot risk innovating alone, and this is where Think Tanks emerge as initiatives for open innovation, bringing together various players from the business ecosystem to address the most pressing challenges and opportunities in a sector.

This concentration of ideas and experiences materializes through a platform for joint exploration of creative and viable solutions, in this case in the realm of retail, facing major future challenges where technology and consumer expectations change at a dizzying pace.

Therefore, the learnings generated in the Retail Think Tank recently held at SNGULAR are not only useful to understand what is happening in the sector but are essential for any company aspiring to lead the market rather than merely trailing behind its competition.

Challenging the Retail Labyrinth: A Journey from Sustainability to the Cloud

Sustainability is a complex term that goes beyond merely meeting environmental quotas or measuring people's well-being. Thus, the first working group of the Think Tank delves into the ethical and commercial dilemmas retailers face today. Traceability of processes and the ethical origin of materials are not just attractive features; they are demands of the modern consumer.

The circular economy presents itself as a significant business opportunity. From product repair to facilitating its donation, there's a world of possibilities for those willing to invest in sustainability. But the question remains: are consumers ready to assume the extra cost? The key here might be to offer choices: allowing users to choose eco-friendly deliveries or refillable products, for example.

Challenges and Proposed Solutions

• Greenwashing: The key to avoiding it is transparency and independent verification.
• Sustainability Niches: While there is a specific market for "green" consumers, the challenge is to make sustainability an accessible option for everyone.
• Collaboration: Joining specific working groups to share best practices may be a way to accelerate sustainability in the sector.

From Store to Cloud: Artificial Intelligence as a Catalyst for Change

The second group of the Think Tank addresses the increasingly prominent role of Artificial Intelligence in retail. AI is not just an attractive feature but is becoming an essential component in the customer journey. From Sephora with its makeup testing app to smart fridges helping with the shopping list, the potential of this technology seems limitless.

Challenges and Proposed Solutions

• Technological Uncertainty: AI is still evolving. The key is to find a balance between automation and human intervention.
• Personalization and Brand: An AI assistant must reflect the brand's style and personality to create a consistent customer experience.
• Routine Task Automation: freeing employees from monotonous tasks to focus on customer service might be a winning strategy.

Today and Tomorrow's Technologies: Cloud, Privacy, and More

The third group of the Think Tank introduces us to a vast collection of emerging technologies, without forgetting considerations related to privacy and security. From using Big Data to reduce shopping cart abandonment to developing virtual fitting rooms and metaverse experiences, the future of retail is technologically bright.

Challenges and Proposed Solutions

• Privacy and GDPR: With data collection comes the responsibility to protect it. Complying with GDPR is not an option, it's a necessity.
• Payments and Security: Protection against fraud and the use of alternative payment systems, such as Open Banking, are crucial.
• Omnichannel and Personalization: The shopping experience should be uniform, whether online or in-store, and personalized for every type of consumer, from Silvers to Generation Z.

As we have observed, retail is at a turning point, and for this reason, we believe that retailers who do not adopt a proactive approach towards sustainability, integration with technologies such as Artificial Intelligence, and digital privacy, will hardly thrive in this new digital age. The key lies in adaptability, authenticity, and above all, in not underestimating the modern consumer, who is more informed and connected than ever.