Future of Retail: Technological Adaptations for Future Effectiveness - JB Hi-Fi Case Study

Running head: FUTURE OF RETAIL
E-business
Name of Student:
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FUTURE OF RETAIL
Executive Summary
The retail industry in Australia is exposed to several challenges presently due to various changes
in demographic factors like preferences of customers, expectations of more value and
experiential elements during shopping. Other factors that are affecting retailing in Australia are
rise of pressure from international retail chains and evolving shift to e-commerce retailers.
Altogether these attributes have emerged the need for retail scenario in Australia to evolve to
adapt to new changes so as to survive in future. In this report case of JB- Hi-Fi is illustrated to
interpret the future changes where their in-stores layout and process both needs to be integrated
with technological platforms such as Advanced analytics for better customer learning and
certainty to predict trends to deliver needs. Also JB Hi-Fi needs to integrate with modern
technologies like IoT to deliver more user friendly services and value experiences in their stores
so as to attract the new age customers. In this report a detailed discussion is made to understand
destructive innovation in retail and some recommendations are given for better future
effectiveness of JB Hi-Fi.
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FUTURE OF RETAIL
Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Discussion....................................................................................................................................................4
Conclusion and Recommendation...............................................................................................................8
References.................................................................................................................................................10
Appendices................................................................................................................................................12
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FUTURE OF RETAIL
Introduction
In this report the future of retail business is discussed specifically focusing on markets of
Australia by taking the case study of JB Hi-Fi which is one of the leading retailers in the region.
The report describes the present scenario and change in customer expectations and demographics
showcasing some technological adaptations that will improve future effectiveness of retail.
Finally some recommendations are provided for integration with internet technology that will
leverage benefits.
Discussion
Retailers who have come out successfully from the evolving hard blow waves that is impacting
retail industry in Australia have realised that to survive the tide they need to re-invent and re-
structure their physical outlets and supply chains networks to meet evolving needs of digital
savvy consumers. With more advances in future, competitive pressure from international
retailers and rapid growth of e-commerce, the future of physical retail stores is less clear as it is
evident that they would be dead if not prepared to adapt to changes. This is due to the fact that
digitalisation and technology advances that has mopped up from books, music and travel has
now taken a blow to equally stride a chill through all retail groups. As known around one third of
traditional retail stores have closed and Amazon has crossed over 50% mark of their share in e-
commerce markets (Research and markets 2012). Another reality is that for retail industry the
propensity of millennial and Gen Z has taken priority and both these demographic categories
have largely moved from experiencing products within in-stores to ordering at online stores.
According to Research and markets (2012) this is because of the fact that their behaviour has
changed due to smartphone and wearable devices which offer personalised assistance from
virtual agents and this has shown its impact even on retail as this high priority consumer group is
more technology and convenience inclined over being price sensitive. The millennial group in
particular is currently ruling retail industry and have overtaken baby boomers and their
population is expected to rise to 80 million by 2025 due to demographic change and increased
immigrations. The millennial initiated mass disruption in retail industry and this digital savvy
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