Updated: Mar 14
100x faster data transfer speeds, seamless operation of software supporting Industry 4.0 technology, and accurate data collection. What do you know about 5G technology? It is arduous to find a business media source that has not devoted at least a dozen materials to the advantages and complexities of this technology. Usually, their most attentive readers are retailers for whom the digital path is the most reliable way to go beyond the fierce competition.
Major players in the retail market, such as Walmart, Amazon, and 7-eleven, have already implemented the new generation and received an impressive ROI. At the same time, for small and medium businesses, 5G-based software remains a dream.
Here, you will discover the most spread ways retailers will use 5G in 2022. Scroll down to find out how the technology changes the approach to clients & business processes and what weaknesses it eliminates working with half-power.
4 Areas of Development: What Retailers Are Aimed to Boost with 5G
Companies that already have access to the 5G technology find various options to use it. They are doing well, as competitors inspired by the results create a shocking demand for the 5G-based software. They try to solve at least one of the following business issues.
Supply chain efficiency
Each node on a 5G network can support more devices than 4G, delivering significantly higher average download speeds and lower latency. As a result, it provides a huge potential for supply chain optimization.
5G-based systems allow companies to track shipping in real-time. For instance: traffic jams, weather conditions, and temperature inside the vehicle. All collected data helps management find drawbacks in the supply chain and eliminate them.
Telecom companies like Verizon continue to create 5G IoT solutions for similar purposes. This software enables enterprises to use both technologies simultaneously, getting the most out of them.
The above synergy opened the digital twin power. Retailers use the virtual copies of their supply chains to optimize routes and test new ideas avoiding risks.
As seen, accurate and timely data can solve the reason for the current retail crisis since the supply chain issue remains one of the most relevant here.
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Brick-and-mortar stores recovery
It would seem that after the pandemic, only nostalgia can force buyers to go back to brick-and-mortar stores. But as it turned out, the new generation mobile network is also an effective way. Retailers use 5G-based technologies to optimize processes, improve service quality and ensure safety inside offline stores.
5G boosts warehouse systems allowing employees to control goods availability. In addition, it empowers AMS, helping to create a relevant and client-oriented assortment.
And last, but not least, 5G directly affects the customer experience. Just remember about cashier-less stores, smart carts, advanced loyalty campaigns, etc. Who doesn't love Amazon, Starbucks, or Kroger for it?
Instant data transmission systems usage provides retailers with valuable data on client preferences and behavior. It helps them keep offline retail afloat.
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Lots of companies suffer from their legacy order management systems. They can't cope with a large flow of data and timely transfer it to other systems. That's why delivery is one of the main weaknesses for retailers. Meanwhile, 5G-based software can optimize the interaction between buyers and retailers through various channels, the order picking process, etc. This way, stores can increase their delivery service quality, which, in turn, positively affects customer experience and revenue.
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New customer experience
Uninterrupted 5G bandwidth brings opportunities for joining retailers to Metaverse. Owed to AR/VR, business sharks offer a new digital experience helping buyers to fit different styles, sizes, colors, get real-time feedback, and so on. Think of the recent collaboration between JD, Nike, and TikTok, when users of the platform could try on new sneakers by pointing the smartphone camera at their feet. Or remember Nike's “Play New” campaign, encouraging people to try new athletic activities with AR-lenses on Snapchat.
Of course, all these offers require significant computing power and fast data processing. And 5G can cover it.
The Bottom Line
5G will provide retailers with a steady, reliable network that can handle peak traffic, real-time data processing, etc. Such unlimited opportunities allow companies to create client-centric offers and increase customer lifetime value.
The retail industry is dynamic, and with the advent of the new generation, companies should create a flexible strategy for 5G implementation. Retailers need to keep up with the times, considering their business needs and market conditions.
If you’re looking for robust custom software supporting 5G technology, drop us a line. Our specialists will advise you on creating an agile strategy for its implementation, and apply their expertise to build high-scalable solutions for your business development.