How to Save Celebration in 2022: All You Should Know About This Holiday Season
Do you remember the last holiday season? It showed all the weaknesses of the post-pandemic retail industry and made merchants try hard to give a present in each hand. In 2021, businesses and consumers faced challenges with supply chain, empty shelves, late deliveries... Even the Black Friday discounts were less generous. Following Bloomberg, the average discount was only 24%.
The mess with gifts affected the overall holiday mood. But, this year, everything promises to be better. According to the InsiderIntelligence review, in 2022, US holiday retail sales are expected to reach $1.3 trillion, or a 3.3% increase. Despite the war, the retail industry moves to a full recovery by leaps and bones. But it doesn't mean retailers won't need to overcome difficulties again. They will.
Here you will see the face of the holiday season 2022, challenges that will wait for retailers, and shining examples of software capable of helping them save a competitive advantage.
Wins and Failures: What Will Affect Holiday Season 2022
Supply сhain goes back to normal
Following Insider Intelligence, the supply chain returns to its normal pace after a protracted crisis. Consequently, the next holiday season will be much easier for merchants. It seems they reached impossible because the stable supply chain operation during the russian-Ukrainian war is incredible. The case is in the timely implementation of proper innovation.
Most companies prefer IoT and digital twin technology to cope with these issues. They transformed & optimized routes and implemented connected devices helping managers and drivers to deliver goods under any conditions. IoT & digital twins became mainstream in the supply chain field this year. Real-time data transfer and accurate predictions work wonders. However, not all merchants benefit from these technologies.
We're living in a too dynamic environment. Now, there are no issues with the delivery and shipment today. But nobody knows what might happen tomorrow. So, if you're still hesitating on adopting the IoT & digital twin or not - the answer is "yes." This approach will help you cope with season spikes from a long-term perspective.
The core software helping companies properly track an IoT-based supply chain's operation is a device management platform. It works like glue connecting various gadgets and making them work as a single unit. This is a central point allowing managers to shadow supply chains over the air, implement ideas without risks and avoid unexpected difficulties.
You may also like: Case Study: Managing Thousands of IoT Devices Worldwide
Difficulties with partner selection
Companies do their best to choose reliable contractors for long-term partnerships: they check financial reports, compliance with sustainability principles, they perform risk management procedures. Now, businesses, particularly merchants, face a new issue. Considering the full-scale russian invasion and global refusal of russian services, retailers have to enter into new partnerships on a tight schedule to save holidays.
It's not a piece of cake since the selection and negotiation procedures are usually time-consuming. But merchants can deal with the situation using a simple but innovative approach. For example, the XME.digital team is currently working on a project supported by the United Nations. It aims to design a platform helping Ukrainian companies, investors, volunteers, and state authorities to join forces to support the business sector and Ukrainians. The platform will be capable of allowing entities to find reliable partners times faster by just placing an order. Mapping this approach to the retail reality will help merchants rebuild their business partnership system and remain flexible.
You may also like: Digital Platform as a Solution of Supply Chain Issues: Case Study
Hybrid shopping: the new convenience for buyers
The COVID-19 crisis is almost a thing of the past. It brought us eCommerce as a primary way to get items. Most experts said that offline shopping fashion would never come back. Meanwhile, people have greatly missed the in-person experience. Therefore, the offline shopping trend is returning step-by-step as customers like to feel the holiday spirit, to see purchases on their own and try them on.
This way, clients now prefer offline and online shopping processes to receive a hybrid experience. So, what does it mean for merchants? First, they must transform their business models and expand horizons, mastering eCommerce. Secondly, they should ensure complete safety in brick-and-mortar stores. It's also a field where IoT can help since businesses may turn their trading halls into smart stores by equipping them with connected devices that might save life or protect buyers from diseases making their shopping safer.
You may also like: How IoT Device Management Platform Ensures Life Safety
So, what's the face of the holiday season in 2022? According to Drip research, global online holiday spending is expected to hit $910 billion this year. 29% of consumers plan to spend more than last year. Merchants managed to overcome supply chain issues by implementing innovations smartly. Dynamic conditions can change the shift so that unexpected difficulties might arise. Meanwhile, now retailers are armed with top 3 software solutions capable of improving the holiday season year-by-year.
If you're looking for proper implementation of the above solutions - let us know. Our experts will advise how to design them with the XME.fast code platform at lightning speed.
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