News Trends

Technology trends in retail for 2020. Part II: Cybersecurity & Digital Strategy

Recently, our daily reality has been dominated by fears caused by the COVID-19 pandemic. The situation, however, will not last forever and still this year we will move from the crisis management phase of the sudden turn of events as well as careful monitoring of the epidemiological, economic and political forecasts, to a new but stable status quo. Bartłomiej Łatka, Sales Director at Euvic IT, writes about what technology has to offer in the retail segment in 2020 in the second part of the article.

C for Cybersecurity

Bartłomiej Łatka, Sales Director at Euvic IT

It is beyond doubt, that we will see a lot happening in the security field in 2020. Particular attention, however, should be paid to two aspects:

  • Cybersecurity, which concerns online expansion of retail sector as well as GDPR (pl. RODO) regulations and fraud prevention;
  • sanitary safety, which has increased enormously as a result of the COVID-19 pandemic.

Many online sellers have already discovered that insufficient online data security can pose a serious threat to entire enterprise. What’s more, with the implementation of the GDPR directive in the European Union, the loss of control over data is no longer a mere image problem but also imposes a risk of financial penalties. It was a painful lesson for, among others, Morele.net, fined PLN 2.8 million, for disclosing the data of 2 million customers. What was the problem?  As usual – security expenses, also admitted by the defendant.

Solutions in the area of ​​fraud prevention automate the process of detection of crimes, which account for the loss of 1 to 3 percentage points of gross margin. According to Sensomatric report, most losses are thefts (34%), dishonest suppliers (24%), store employees (23%) and administrative errors (nearly 19%). Traditional physical security based on RFID or direct CCTV surveillance prove to be insufficient today, and  shops` or hotels` owners are more willing to use advanced BI solutions (based on transaction data) or automated camera image analysis to detect the sources of losses. These types of solutions are based on a simple return on investment – e.g. for a small convenience store with PLN 100,000 monthly revenues this statistical fraud in PLN 1,000-3,000 per month.

Sanitary safety in shops, service outlets and hotels is an absolute novelty, but we can expect a further boom for this type of solution. Especially now, when a single COVID-19 case among employees can lead to shut down of whole premises, warehouses or exclusion of selected hotel rooms from use for many days. The emphasis on employee safety is also intensifying. This is where come in the contactless systems, scanning body temperature at entrances, and can help to detect people with high body temperature and take appropriate steps (e.g. not allowing the employee to work or disinfecting a hotel room with extreme caution).

D for Digital Strategy

As we all know, sales are gradually but surely migrating to online. This process happens the faster the more people regularly dive in their smartphones. At the same time, physical stores still retain a strong market position, due to the time and cost of delivery or the possibility of physical contact with the product, e.g. to assess its quality. In some areas (music, books, computer games), online sales have almost completely supplanted physical sales. What’s more, every year, whether through social media, the popularization of mobile applications or the monopolization of market fragments by specific platforms (such as Amazon, Allegro or Google Maps), the burden of consumer decisions is increasingly shifting online. In this respect, it is safe to say that big trade, without the right digital strategy simply won’t survive. Where can technology find its place?  At least in several areas: omnichannel, mobile applications, BigData, proximity marketing or SEO. I will mention omnichannel, BigData and SEO in a little bit below, describing the e-commerce trend, but at this point I would like to focus on mobile applications.

A big surprise for the market turned out to be Żappka, whose success in mid-2019 was reported in the media. Rossmann Club and Mój Carrefour also proved to be popular loyalty applications. A study by Spicy mobile clearly shows that there is no turning back from mobile today. Although we do not know yet which direction this area will develop (loyalty programs, mobile stores, integration within broader shopping platforms), it seems that the money invested in it already has a high rate of return.

There are also some non-obvious elements of the digital strategy in the mobile area, which in particular include third-party applications that are worth integrating with your own solutions. What applications are these? First of all, payment systems (PayPal, Revolut, Blik), independent loyalty programs (Payback), credit and payment services (Bluemedia, PayU), specialized solutions (Booksy) or proximity marketing tools based on beacons and Google location services.

Developing a digital strategy for many entrepreneurs can be a hard nut to crack. However, it is worth remembering that today there’s no need to try coming up with a strategy relying only upon own efforts. It is worth choosing a partner who will help to successfully undergo digital transformation, relying on their know-how and knowledge of the best practices appropriate for a given sector.

Cybersecurity and Digital Strategy will be an obligation rather than a privilege in the coming months. You will learn from the next article about what other trends will constitute the “must have” for the retail industry.

The author of the article is Bartłomiej Łatka, Sales Director at Euvic IT.

Leave a Comment

Your email address will not be published.

You may also like

Market News Trends

Polish state to consolidate the agri-food sector

post-image

The Ministry of State Assets (MEP) is working on the merger of companies from the agri-food sector, which are under state supervision. The National Food Holding (NHS) is to be established in this way.

June: selection of companies for the holding company

The consolidation will be based on the Krajowa Spolka Cukrowa, which is present on several markets, including sugar, starch and grain. The objective is to create a strong agri-food holding and enter new business segments. The idea behind the consolidation undertaken by MEP is that “on the one hand, consumers should receive competitive prices, and on the other hand, farmers and manufacturers should be well paid for their products”.

Currently, 48 companies that could be part of the holding are being analysed. The plan provides that the companies to be consolidated are to be selected in June. By the end of the year, more detailed research…

Read More
Market News

Robotisation in retail & logistics – overview for 2020, part II

post-image

Bartłomiej Łatka, Sales Director at Euvic IT, writes in the second part of the article about what robotization has to offer to the retail segment in 2020.

Mobile robots

Bartłomiej Łatka, Sales Director at Euvic IT

Recently, mobile robots have been pushing people out of storage space in large warehouses. There is a shortage of warehousemen throughout Poland, and warehouses often located on the outskirts of cities or even in the fields, struggling to provide staff. Especially during the holiday or flu season. Relatively high salaries, regulated by the law for working at night or on public holidays, as well as the risk of loss of manning – all that makes automated internal transport systems seem to have the best years ahead.

Among mobile solutions in trade and logistics we can distinguish the following groups:

  • Transport P2P (Point-to-Point) – AMR trolleys carrying baskets…
Read More
Market News

Glovo grows in food delivery in Poland

post-image

The Glovo mobile application, which specialises in on-demand deliveries, has just exceeded 1 million downloads in Poland (App Store and Google Play). Although a wide range of products can be ordered with Glovo, it is widely used to deliver food.

Glovo in Poland: 1 million application downloads

Glovo has been operating in Poland since July 2019, following the acquisition of PizzaPortal.pl. The idea behind the application is to be able to order “anything” and delivery takes place in less than an hour. Glovo has over 2,700 partner points in Poland, including McDonald’s and KFC restaurants and Biedronka and Carrefour shops. The application operates in 30 cities in Poland, but Glovo announces a systematic expansion of its offer and development of all order categories. In total, around the world, the application is used by approximately 2.6 million users per month. It is available in 22 countries and about 550 cities.

The most numerous…

Read More
Market News

Tesco is developing a click & collect service in Poland

post-image

Tesco develops its activities in the e-commerce segment. In May, the company added five new cities for the “Zamow i odbierz” (click & collect) service in Poland.

14 click & collect points

New locations where the service is available are Czestochowa, Zielona Góra, Opole, Kielce and Jelenia Gora. Thanks to the extension of the network of collection points, it is now possible to serve 15% more customers under this solution. In total, currently the click & collect option is available in 14 Tesco stores across the country. Around 2,000 customers use such purchases every week. The chain announces that it will soon introduce further novelties extending the scope of services.

Purchases made in the “Zamow i odbierz” option can be picked up in the store or delivered home by a taxi company cooperating with Tesco. When completing an order via taxi, payment must be made online. In case…

Read More
Market News

Robotisation in retail & logistics – overview for 2020, part I

post-image

As far as saturation with robots is concerned, the Polish market is unfortunately in the tail of the rankings, which is quite surprising if we take into account, for example, Polish GDP (where we have 22nd place in the world) or Human Development Index (Poland with 32nd place in the world).

Bartlomiej Latka, Sales Director at Euvic IT

In 2014, roboforum.pl wrote that “Poland, with the value of the index at 18, is at the bottom of the ranking. Higher density of robotization than Poland is characteristic not only for countries that are among the leaders in this respect, but also for countries with a similar level of development, such as Hungary or Slovakia. The average robotisation density in Europe is 4.4 times higher than in Poland (compared to the previous year, Poland reduced the distance to Europe by 1.1 points),…

Read More
Market News

Camaieu is leaving Poland

post-image

Camaieu clothing chain, specialising in women’s clothing, is leaving the Polish market. The company’s website has already stopped accepting orders and the stationary stores are to be closed at the end of June.

Camaieu is looking for an investor

As far back as 2018. Camaieu operated about 40 stationary stores in Poland. However, the chain has recorded negative sales dynamics in recent years, and the number of stores has been gradually decreasing. Currently, it amounts to 25. In total, the chain operates about 1 ,000 stores in 18 countries, more than half of which are located in France.

The COVID-19 pandemic and the closure of shops in shopping malls have worsened the company’s situation, but it has already been struggling with financial problems. According to Business Insider, the company planned to implement a restructuring plan from the spring, which was to include the closure of 125 stores in…

Read More