Digital Transformation of the Retail Industry

Purchasing behavior has been changing rapidly and incorporating technology in increasingly sophisticated ways. Retailers need to offer a diversified value proposition and customize experiences to cater to individual needs, and the best way for the retail industry to rethink and change its models is digital.

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Understanding the Retail Digital Transformation Journey

With the accelerating changes in the global market, retail businesses are now looking to understand how they can use technology to find innovative ways to create new business models and drive revenue, looking towards business transformation in the long term.

Before you start making decisions, it is necessary to understand the various aspects of retail digital transformation.

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Applying Digital Transformation to the Retail Sector

Digital Transformation is already happening in almost every industry and field that you know, starting with education, healthcare, banking, finance, media, and more. Organizations are going digital hoping to engage customers, lower costs, increase sales and improve employee motivation

But what is it exactly? The way we see it, digital transformation in the retail field means adopting new technologies and improving your existing processes so you can understand and serve your customers better. Note there are two parts here: not just adopting technologies but also modernizing and optimizing processes, which in turn means buy-in at all levels of the enterprise to promote adoption.

This is the AVIO way of work: strategy, tools, and training, all in harmony. If one of these aspects is missing, the transformation will not be as effective.

Large retail companies and legacy retailers will find it hard to survive without digital evolution, which will enable them to adapt and serve customers as swiftly as their smaller, digitally-native competitors, while taking advantage of the large amounts of data that they process on a daily basis. 

Once more, digital evolution is not just about adopting new technologies. The changes must start at the strategy level and optimize both front end and back end operations, making the entire process faster, more efficient, less costly and with greater customer satisfaction.

Three Ways to Adapt to the Challenges in the Retail Industry

AVIO’s strategic approach to digital evolution targets the most common roadblocks that slow down a company’s transformation.

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Strategy Development and Creation

The first big challenge of digital evolution is that for it to be effective the change must come from the strategy level, and processes must be evaluated and optimized. Adding tools to an existing business model will not have the necessary impact unless it is accompanied by a change in the culture.

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Change Management and Adoption

Buy-in from all stakeholders is crucial for a digital transformation to succeed. Management must take the time to talk, educate everyone on the importance and benefits of the change, and encourage adoption through training and reward systems. Failure to do this may compromise the whole program.

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Choosing the Right Technology

Many new trends look exciting and attractive, and the offer of new technologies for digital retail grows every day. It requires an expert to select the right technologies that will work best for your specific company’s needs and culture, as well as for meeting your strategic goals and objectives.

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Trends in Retail Technologies

Technologies for retail have long evolved past an online shop and digital inventory systems into smart, hyper-connected systems that do much more than ever before. And more than adding efficiencies, the new shopping experience will deliver a personalized shopping experience like never before. Some of the most talked-about trends are augmented reality, social shopping, and hyper-personalization

As more companies roll out augmented reality complements to their online sales channels, results show that AR is already starting to help consumers feel more confident when it comes to buying a product - for example, Amazon’s use of AR has lowered return rates from online shoppers. Accessibility and low-barrier access is key: Toyota recently launched an AR program to allow potential buyers to test their cars without even downloading an app.

At the moment, over 2.7 billion people have smartphones, and experts predict this number to increase up to 7.3 billion by 2023. Additionally, statistics show the average mobile phone owner spends almost 3 hours a day using their device. Sales through mobile phones, known as m-commerce, are an important market, and social media platforms like Facebook and Instagram have jumped on the trend by offering direct sales channels on their platforms. This is what is called social shopping. Products and services are displayed by influencers and celebrities, and customers can buy from their mobiles without ever leaving the platform they were in.

Customer segmentation is evolving thanks to the increasing amount of data available and the analytic power to process it, and trends point at an eventual segment of one (i.e. full personalization), where each customer’s shopping experience, recommendations and advertising are targeted and tailored to them in particular - not just their demographic but also taking into account their shopping and browsing history, location, use of social media, and even the weather where they are.

AVIO Helps Evolve Your Retail Operation with MuleSoft Technology

One of the most powerful aspects of MuleSoft’s Anypoint Platform is how it integrates information, systems and processes into a cohesive, coordinated whole. This increases efficiency, lowers costs, and speeds up business. MuleSoft retail integration solutions can do all of this and more - tell us about your problems and goals and we will help you find the perfect solution.



Integrate information from multiple sources, such as marketing, ERP and POS, to create a single view of your customer that will increase the chance of conversion and help you deliver a personalized customer experience and buyer’s journey.


Customers purchase through a variety of channels: in store and online, through websites, mobile and even social media. The AnyPoint Platform can ensure a unified customer experience and smooth transactions across all sales channels.


Amazon has changed customer expectations: what the customer wants must be available immediately when they want it, or they will move on. MuleSoft technology will enable you to have a real-time flow of information for and from internal and external sources, ensuring your supply chain is smart, agile and uninterrupted.

"AVIO really helped us to leverage MuleSoft's full potential with this app, but the real ROI was with our ability to take the knowledge we gained from their solution and implement it in future projects."


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Digital Evolution for the Retail Sector

Given the changes in the market, the shopping habits and expectation of digitally-native customers, and the pressure from startups and digital-only retailers, traditional retail companies have the strategic imperative of adopting new technologies and evolving their models to get ahead of the competition.

Digital evolution across sales channels (on- and off-line), supply chain and management can enhance and simplify the customer's experience, increase sales and make operations more productive and profitable. Let AVIO assist you and step into the future of retail.