The rollout of 5G networks will play a crucial role in enabling retailers to move towards delivering seamless omnichannel experiences. By creating more deeply personalized experiences, retailers can increase sales. Furthermore, the efficiency improvements supported by 5G will help improve operating profit margins.
Technology Overview
5G marks the arrival of a new era in mobile communications, transforming the speed and responsiveness of wireless networks. Thanks to significantly reduced latency and dramatically increased speeds, it enables more devices to access the internet simultaneously. Retailers, by connecting people and things, can usher in a new era of experience-driven innovation.
The enhanced connectivity enabled by 5G allows for near-seamless data and information transmission. The powerful network supports a range of use cases that can improve operational efficiency and create a seamless shopping experience.
The retail industry is expected to innovate in the following four areas.
1. Immersive Shopping Experiences: 5G supports a range of augmented reality (AR) and virtual reality (VR) solutions. These solutions can provide immersive experiences that transform how consumers interact with products. The increased speeds enabled by 5G make virtual commerce possible. In this way, consumers can see products in the real world, thus expanding the scale of digital touchpoints. Digital commerce is creating numerous novel shopping experiences, further blurring the lines between physical and digital retail experiences. When consumers...
When planning home renovations, people will no longer need to visit home furnishing stores. Instead, they can sit down and experience a new sofa, seeing how it would look in their home. This immersive 3D experience will completely change the "try before you buy" concept, making personalized digital experiences a reality.
Beyond these, AR and VR will create a plethora of novel in-store experiences. Interactive fitting rooms in stores can help shoppers choose different sizes and offer accessory or alternative suggestions, all without requiring customers to leave the room. By interacting with VR solutions, consumers can adjust lighting and backgrounds to see how clothing looks in different environments, further enhancing the experience and driving sales. Furthermore, if shoppers aren't planning to buy everything immediately, they can send their data to their phones for easy future purchases. 5G extends existing AR/VR capabilities beyond smartphones, supporting a truly integrated retail experience through personalized services and creating richer, more layered experiences.
2. Contactless Shopping: This trend will continue post-pandemic, and 5G will support its next stage of improvement. Seamless mobile payments and shopping will become a reality, eliminating the need for customers to physically interact with sales staff. Voice-controlled digital video displays will automate many functions previously performed by store clerks.
3. Cashierless Stores: 5G RFID tags enable retailers to scale up cashierless store deployments across a variety of retail environments. Retailers have the ability to increase the number of devices and personnel connected to the network, ultimately gaining the technology and price point needed to turn the concept into a mainstream solution, including large wholesale stores and supermarkets.
4. Store Inventory and Logistics: Thanks to 5G capabilities, retailers' cloud-based backend systems are now accessible in real time, improving performance. Sensors are deployed on shelves, transmitting information in real time to ensure continuous and accurate monitoring of inventory levels and device locations. Consumers can thus click and receive orders without any unplanned delays or stockouts that could lead to customer loss.
The increased bandwidth provided by 5G enables comprehensive visibility across the entire supply chain, eliminating much of the friction in existing processes and reducing losses such as inventory buildup. Operations are further streamlined and inventory waste is reduced by providing retailers with enhanced data on usage patterns.
Beyond the innovations brought by 5G, the complexity of retail systems has also increased significantly. Retailers no longer need to evaluate individual components, but rather the entire ecosystem to ensure it meets customer expectations. To reap real rewards from 5G-enabled innovations, retailers must rethink how they test and monitor the performance of digital experiences.
Retail brands are struggling in the face of a retail demise. The advent of 5G networks offers a glimmer of hope for them to create deeper digital experiences that could positively impact profits.
Gareth Smith, General Manager of Eggplant, a Keysight Technologies company
Gareth Smith is a seasoned leader in product marketing, product management solutions, and pre-sales teams. He spent many years at Progress Software, holding positions such as Director of Product Management and Chief Software Architect. Gareth was also a founding member of Apama, serving as its Director of Pre-sales and Chief Architect prior to its acquisition by Progress Software. Smith holds a PhD in Computer Science, specializing in collaborative user interface design. He also has over a decade of experience in academia.
