Recent Trends in Retail Industry and Analysis of ASDA

This report discusses the recent trends in the retail industry, including social commerce, online stores, augmented reality, ethical and value-based brands, faster delivery, smart speakers and voice search technology, and chatbots. It also provides an analysis of ASDA, a British retailing company, and its adoption of e-commerce, advertisement-supported revenue model, customization, and the STP model. Recommendations are given to ASDA to focus on employee training, sustainability, social media presence, security, market competition, and digitalization.

INQUIRY BASED
LEARNING

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Current trends in retail industry...................................................................................................3
Analysis of ASDA.......................................................................................................................5
RECOMMENDATION...................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Current trends refer to the latest changes that are being taking place in almost every industry
including the retailing sector too. It is very essential for every sector and the company to move
and evolve as per changing trends. This report will discuss about the recent trends in retailing
sector along with a detailed analysis of ASDA which is counted as one of the famous retailing
company of UK. Lastly, recommendations are included which could further strengthen the
business operation and performance of ASDA.
MAIN BODY
Current trends in retail industry
Along with the evaluation of globalization and digitalization, the trends in the retailing
industry is also evolved and changed. Not only evaluation take place but the entire industry
moves forward towards the trends of digitalization. The trends include:
Social commerce:
Earlier the industry was performing its working operation through its physical store but
with the changing trends the use of social media also got infused and as a result of that many
retailing companies in UK has also started operating their business operation through the mode
of social media too (Han, Xu and Chen, 2018). As per this trends the companies and the entire
industry got active over the social media platform and started interacting with their customers.
This trends had gave a new direction to this industry.
Online stores:
This is also a new and most important trend. As per this trend the entire retail industry
move towards the concept of digitalization and online shopping exposure. This trend gives a new
identity to the retail industry (Rachinger and et.al., 2019). This means that along with operation
of the business through online mode their scope and widening of business operation also got
started. This trend give access to the retailing industry to approach those customers and the
places which are not in reach now.
Augmented reality (AR):
Along with changing trends the retailing industry also adopted and executed the AR
technology in its business operation. It has changed the entire mode of shopping and now the

people are interacting and making their purchase through the mode of AR and virtual reality. It
would not be wrong to said that the entire physical form of the industry got evolved and
converted into virtual form (Håkansson, 2018).
Ethical and value based brand:
This is also counted as a recent trend that along with operating the business by the
retailing industry, they have inculcated ethical and moral based value. As per this trends the
industry has now realized that only operation of business operation is not enough but the equal
focus is also required towards the ethics and moral values (Souiden, Ladhari and Chiadmi,
2019). This means that ethical consideration in terms of thinking about the customers and taking
care of moral values while operating business is now being considered and adopted. This means
that now the brands and the industry is more focussing on creating the value and the ethics in
their business operation.
Faster delivery:
Along with changing trends, now the retailing industry and the associated companies are
focussing more on faster delivery (JOHNSON, 2021). As during the previous time they are more
associated with the selling of their foods without taking care of their customers but now they are
focussing on faster delivery with better customer experience.
Smart speakers and voice search technology:
This is also counted under the recent trend that along with evaluation of trend most of the
companies that are concerned with the retailing industry has adopted this concept. With this new
concept they make the retailing experience of the customer even more better. As per this trend
the companies have implemented this technology over their applications and websites so that
customer can have the access of their favourite products just by voice search.
Chatbots:
Along with changing trends and time this technology and concept is also adopted by the
retailing company. As per this trends now the retailing sector is more focussing towards the
chatbots instead of having a face to face interaction with the customers (Rossi-Hansberg, Sarte
and Trachter, 2018). This trend is very common among this sector even before the Covid
pandemic where the more focus is being lied over the digital concept.

Analysis of ASDA
ASDA is one of the British retailing industry. It is founded in 1949. It operates its services
through online and physical stores including supermarket, supercentres, petrol filling station and
many more. Along with changing trends ASDA has also got evolved and make changes in its
business operation. with the changing trends it has lied its more focus towards the digitalization
concept whereby it is along with operating its business operation also raising the experience of
its customers.
E-commerce model:
ASDA has also adopted the e-commerce model whereby it is interacting with its
customers through the electronic media. In simple words, it is carrying out its commercial
operation through electronic mode (Ballestar, Grau-Carles and Sainz, 2018). As per e-commerce
model it selling its product through the mobile application or over its official website. This
model has given a digital touch to the company that helps it in matching it with the changing and
evolving trends.
Along with digital moves it has also adopted and moving with the recent trends and
continuously working in the direction of raising its customer experience. ASDA has also adopted
and favour the trend of ethical and moral values whereby it is along with making and raising its
sales also focussing over the ethical values and working in the direction of availing the best
quality products to its customers. This means that along with business operation it is not
sacrificing the value and quality of its products.
Likewise, it is also analysed that ASDA has focussed over the trend of speedy delivery
and thereby delivering its product within short span of time to meet the needs of its customers.
Advertisement supported revenue model:
This is one of the model that is also being used by the ASDA in operating its business
along with raising the experience of its customers. As per this model the company post free cost
advertisement, videos, pictures, quotes over the social media platform. This would be free of cost
but it is utilized for raising a huge sum of revenue. as the social media is counted under such
mode which has a wide reach among the customers. Thus, ASDA by adopting and implementing
this model not only making or advertising its products among its customers but at the same time
also following the recent trend of social commence. This model has given dual advantage to the
company in terms of raising awareness among the customers in terms of marketing. One the

same side, through knowing and considering the value and thoughts of the customers, ASDA can
easily raise the standard or quality of its service and produce more customize products. Thus, this
model helps it to move as per the recent trends.
Customization:
Apart from these models the ASDA also work on the concept or model or trend of
customization. Whereby main focused is being lied towards customer and try to be inculcated by
companies everything that they can meet the needs of their customers (Beckner and McFarland,
2017). As per this concept ASDA always become flexible and try to inculcate every possible
value and the efforts that can meet the needs of its customers. it would not be wrong to said that
along with changing trends the ASDA’s centre of focus along with generation of revenue also
includes raising the needs of its customers. ASDA usually implement this concept with the
proving of bet quality products or making its product as per the need of its customers.
As the recent trends are concerned with changes and trends in economic, social and
population trends so in order to have an incorporation with these changes and trends ASDA also
adopt and follows STP (Segmentation, Targeting and Positioning) model.
STP:
Segmentation:
Under this step the entire market is divided into segments (Nadube and Didia, 2018). As
pet this step ASDA make segments of the entire market on the basis of the trends and
demographics or needs of the customers. This segment would allow the ASDA to perform its
next step.
Targeting:
After making segments, ASDA follows the practice and step of targeting whereby it will
target the specific and most suitable segment as per its business and operation.
Positioning:
After targeting and meeting the needs of that specific segment, ASDA can enable it
market position and can also analyse that what its customer thought about the company.
Thus, this model helps it to cope with the recent changes along with framing futuristic
policy.
Hence, it would not be wrong to said that the ASDA in order to incorporating with the
recent trends also adopted many models and concepts.

RECOMMENDATION
 From the above analysis regarding with recent trends and ASDA it can be recommended
that:
 Although ASDA has fully customizing its products as per their needs but it can be
recommended that along with taking care of its customer reviews, it also have to raise its
consideration towards its employees. This means that it also difficult for the employees of
the company to make changes again and again. Since employees are the important
element of the company so by giving consideration towards the employees it can raise
their efficiency as well as their performance too. Thus, it can be recommended that the
ASDA also have to focus towards the employees training and development so that along
with nourishment of employee’s skills, the experience of the customer would also raise.
 Along with changing trends and moves of ASDA towards such trends it is also
recommended that the speed of movement towards the concept of sustainability would
help it to raise its brand image along with customer experience. As per this, ASDA have
to take more steps towards the sustainability concept by focussing over all the three
elements of the sustainability. This means that by having an equal consideration towards
economic, societal and environmental factors ASDA can along with moving towards its
objective can also satisfy and raise the customer’s experience with a dual raising of brand
image among the society too.
 Although ASDA is moving with the changing trends but still it is recommended that a
more active presence over the social media and its various application including
Facebook, Instagram, YouTube, and various other would more enable it to have
interaction with the customers. this means that through these modes it can able to
recognize the need of its customers along with moving with the phase of evolution.
 Along with rising intensity of cyber-crimes it is recommended to ASDA that it has to
adopt various security practices and steps. Although it is essential that movement along
with trends are important but at the same time security with respect to customer’s
services are also important. Thus, it is recommended that it has to take adequate move
with respect to security and digital payment. This, will enable it to furthermore raise the
customer’s experience.

 Along with raising competition, it is recommended to ASDA that it also have to adopt
adequate models and framework with respect to market competition. This would enable it
to fight the high intensity market competition along with meeting the current and
changing trends.
 A careful analysis of internal and external environment by ASDA is also recommended.
This means that in order to cope with the changing trends in the political, economic,
social, technological, legal and environmental factors, ASDA have to regularly adopt the
practice of external analysis so that it can meet these changes along with coping them up.
Likewise, an analysis of internal environment by ASDA is also recommended so that it
can grab the best future opportunities and mitigating the intensity of threats.
 Although most of the steps and trends are being adopted by ASDA, but still it is
focussing over its physical store and face to face interaction. So along with changing
trends with reference to environment including Covid pandemic it is recommended to
ASDA that an equal and more consideration towards the digital world would not only
enable it to cope the trends but at the same time it will also raise the customer’s
experience in terms of enabling better and customize services.
CONCLUSION
From the above report it is concluded that movement along with changing trends by
ASDA would leading the entire company towards the direction of its goal accomplishment. This
movement with trends enable the company to cope with changes along with enhancing the
customer’s experience. Likewise, a well consideration towards the recommendation would
further strengthen its way in terms of raising the performance and thereby customer’s experience.

REFERENCES
Books and journals
Ballestar, M.T., Grau-Carles, P. and Sainz, J., 2018. Customer segmentation in e-commerce:
Applications to the cashback business model. Journal of Business Research. 88. pp.407-
414.
Beckner, M. and McFarland, S., 2017. Customizations. In Administering, Configuring, and
Maintaining Microsoft Dynamics 365 in the Cloud (pp. 41-90). De| G Press.
Håkansson, L., 2018. Virtual and augmented reality in marketing.
Han, H., Xu, H. and Chen, H., 2018. Social commerce: A systematic review and data
synthesis. Electronic Commerce Research and Applications. 30. pp.38-50.
Nadube, P.M. and Didia, J.U.D., 2018. Market targeting and strategic positioning. International
Journal of Marketing Research and Management. 8(1). pp.32-45.
Rachinger, and et.al., 2019. Digitalization and its influence on business model
innovation. Journal of Manufacturing Technology Management.
Rossi-Hansberg, E., Sarte, P.D. and Trachter, N., 2018. Diverging trends in national and local
concentration (No. w25066). National Bureau of Economic Research.
Souiden, N., Ladhari, R. and Chiadmi, N.E., 2019. New trends in retailing and services.
Online references
JOHNSON, T., 2021. 12 Innovative Retail Trends to Watch in 2021. [Online]. Available through
< https://tinuiti.com/blog/ecommerce/retail-trends-emerging/>
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