The retail sector navigates between inflation and the need for more technology

In the midst of a slowdown in its sales, the selling by pieces Colombia faces several challenges in 2023 that include high inflation rates, a slower rate of job creation and even the need to adopt more technology to respond to a changing consumer.

These will be some of the topics that will be covered today on the Retail Dayan event taking place for the first time in Colombia, organized by Deloitte and Fenalco.

Specifically, the advisor will report on consumption prospects for the year while analyzing retail challenges.

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Juan German Osoriothe main consumer partner of Spanish Deloitte Latin America, Andean marketHe says the analysis covers the consumer industry, which has been subject to a special audit by Deloitte not only in Colombia, But globally. Its clients include chains and companies that produce for sale.

A November survey showed that seven out of ten CEOs of food and beverage, household, personal care or apparel companies in the world say their work is more stressful today than it was five years ago.

“This is due to factors such as record inflation, supply chain issues, changing consumers, labor shortages, global conflicts, and climate change.it states.

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The analysis is based on the fact that the pandemic has completely shifted consumer and retail trade and “what we have now is a reality that we must evolve to adapt,” he adds.

In this context, the study warns that 93% of entrepreneurs consider keeping pace with changing consumer demands a priority, compared to 71% of executives from other companies who think so. For this reason, companies must ask themselves whether they are investing enough in technology that allows them to personalize, predict and adapt to consumer contexts and whether they have channels to reach them directly.

And they must consider what more can be done to protect the consumer data needed to implement those plans and maintain their trust.

In addition, companies are required to specify “How do you keep innovating new products and services as consumers’ needs change rapidlysays the expert.

One of the most important conclusions is that the companies and retailers that want to maintain and grow, for Osorio, will be those who can interact with consumers that comes from this development and who understand what happened.
Customers may want to physically visit stores and this would give them a positive feeling when purchasing a good or service. This should be different from the online experience, where there should be another focus.

However, “consumers will find in both the store and the online world” that experience that makes them feel good.

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Regarding the second point, experts’ comments, respect for the zero emission agenda will be recognized a lot by consumers.

“Channels that better manage respect for climate change will have an advantage over consumers. It may not be absolute on the high end in terms of pricing or competition, but it will be something noticeable in consumers’ perceptionsays Juan German Osorio.

In a recent Deloitte inquiry, “97% of the companies consulted agree that sustainability from an environmental point of view is key (vs. 58% of other companies)“.

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In this regard, the analysis provided by Deloitte draws attention in It is important to ask whether public commitments to sustainability goals are being met and whether they are being met.

You also need to check if you have the systems and processes in place for progress reporting and how these efforts provide benefits such as better talent retention rates.

In the online channel, retailers They must have a special ally and they must have a private investment in artificial intelligence (AI), which is one of the conclusions of Deloitte’s work.

“Certainly, it is not possible to manage this channel only with the people behind it, predictive analysis needs to be promoted more and more so that people who enter online first find those products whose behavior indicates those products they are looking forOsorio warns.

The impact of this technology can also lead to real-time inventory management and tracking benefits.

Likewise, it can be useful to automate repetitive tasks such as checking price and inventory. Also highlighted is the benefit that chatbots can provide to answer customer questions or perform transactions without the need for human assistance.

“Colombia’s current economic environment explains the notorious effect on purchases, according to Fenalco’s president, Jaime Alberto Caballe. The situation is determined by high inflation, slow job creation, clear increases in interest rates, deteriorating consumer confidence, as well as a decrease in purchase intent I have families. “It is the duty of the trade sector to be prepared to analyze the conditions and propose alternative paths that allow, as on other occasions, to overcome this difficult situation.Kabal said, referring to the importance of the retail day that falls this Thursday.

Constance Gomez Guasca
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