INTERNET FOR RETAIL-A GAME CHANGER FOR RETAIL INDUSTRY

Abstract

In the past, the main focus for retailers was that of mass production and sales. These were times when retailers were in the advantage seat as consumer demands were exceeding the actual supply. However, today’s market is different story. The focus of businesses today has shifted to create a great customer experience and give value to the customers, not just selling them products and services. Technology played a crucial role as it has made it easier for customers to be well informed. Hyken(2016) argues that customers today are smarter, hence their expectations are higher than even before. He also added that since large companies have “educated customers of what a great customer service looks like, now customers are have come to expect it” (Hyken, 2016). Lashbrooke(2016) also has his views on this subject as he states that since consumer demands are ever increasing, without a doubt it is creating a shift on the was businesses are conducted. He added that today’s customer needs are “forcing change upon businesses’ out-dated customer services and procedures” (Lashbrooke, 2016). Chang, Dong and Sun (2014)defined customer experience as “the customers’ perceptual and emotional responses brought about in the process of interaction with companies’ products, services and other elements”. Every experience is becoming a digital experience as things that are perceived as being ‘ordinary’ are becoming more intelligent and smart (Gregory, 2015). Hsu and Lin (2016) defined smart objects as a “physical embodiment with communication functionality, possessing a unique identifier, some basic computing capabilities and a way to detect physical phenomena and to activate actions having an effect on physical reality”. The increasing number of smart objects that are connected to the internet have gave rise to the concept of Internet of Things (Hsu and Lin, 2016).Gregory (2015) argues that while the concept of Inter of Things may be seen like a dream and “it is becoming a reality faster than most of us can comprehend”. Retailers that fail to realise such fact will open the doors for their competitors, ending up in losing the competitive advantage in such diverse and complex market. Gierej (2017) argues that Internet of Things is causing companies to redesign their products and services in order to survive in today’s market.