IMPACT OF TECHNOLOGY ON THE RETAIL SECTOR AND CONSUMER SERVICES: A CASE STUDY OF INDITEX
Table of Contents
Background of the research
This research project will focus on the use of technology in the retail sector for providing services to the customers and deriving better results in the business. Inditex is one of the largest fashion retailers across the globe with seven distinct brands operational in 215 markets through the online media platforms (inditex.com, 2022 (A)). In order to make things easier for the customers, the authority of Inditex has taken some serious steps during this pandemic situation. It has ensured virtual fitting rooms and the removal of paper tickets in case of online orders (inditex.com, 2022 (B)). This strategy has proved to be effective for both the customers as well as the community in reducing the spreading of Covid 19. On the other hand, it is also observed that the company has also invested €2.7 billion in technology for making it easier for the customers in tracking their required items (reuters.com, 2020). In this case, the use of technology has been the key factor for the company in determining convenience and feasibility for the customers in accessing their required items. Hence, satisfying the customers by meeting their needs and demands while maintaining hygiene has been quite easier for Inditex.
Research Aim
This research project has aimed to identify the use and benefits of technology use in the retail sector for providing proper services to the customers.
Research Objectives
To understand the concept of the use of technology in retail business
To identify the benefits that can be derived from the use of technology in the retail sector
To determine the ways of using technology in providing services to the customers in the retail sector
To identify the possible challenges and risks in using technology in providing customer services
To find out the possible ways that can be helpful in addressing the risks and threats of using technologies
Research Rationale
Figure 1: Digital Transformation across the globe prior to Covid 19 pandemic
(Source: statista.com, 2022)
Maintaining efficiency in providing services is one of the biggest challenges in business which has further increased prior to the outbreak of the global pandemic. Roy et al. (2018) have observed that the use of technology can enhance customer value by improving the experience of shopping. As per the findings of Hudson (2020), at the global level, 1.5 million and 63 million people have deceased and been affected respectively by the Covid 19 pandemic. Hence, the normal life of the common people was significantly affected and they were not allowed to go out to the retail stores for shopping. This situation has certainly degraded the situation for the common people as well as Inditex in maintaining their lifestyles and business activities respectively. It is found that digital transformation across the globe due to Covid 19 has increased by 10.4% which is equivalent to $1.3 trillion (statista.com, 2022). This research will shed light on the impact of technology on consumer services in the retail sector, the challenges, risks and threats as well as the ways that can help in overcoming the same.
Reference List
Hudson, A., 2020. How COVID upended life as we knew it in a matter of weeks. [Online]. Reuters. Available at: https://www.reuters.com/article/us-global-poy-covid-widerimage-idUSKBN28D1K8 [Accessed 04 April 2022]
inditex.com, 2022 (A). Who We Are. [Online]. Inditex. Available at: https://www.inditex.com/about-us/who-we-are [Accessed 04 April 2022]
inditex.com, 2022 (B). Customers. [Online]. Inditex. Available at: https://www.inditex.com/how-we-do-business/our-model/customers [Accessed 04 April 2022]
reuters.com, 2020. Inditex invests in technology to merge online with in-store shopping. [Online]. Reuters. Available at: https://www.reuters.com/article/us-inditex-results-technology-idUSKBN23H2WJ [Accessed 04 April 2022]
Roy, S.K., Balaji, M.S., Quazi, A. and Quaddus, M., 2018. Predictors of customer acceptance of and resistance to smart technologies in the retail sector. Journal of Retailing and Consumer Services, 42, pp.147-160.
statista.com, 2022. Pre and post COVID-19 digital transformation spending growth worldwide 2020. [Online]. Statista. Available at: https://www.statista.com/statistics/1127865/worldwide-digital-transformation-spending-covid/ [Accessed 04 April 2022]
