How will 5G improve the new retail experience?

The rollout of 5G ushers in a new era of connectivity and experiences that has the potential to change the face of retail. It supports a range of advances that should ease many of the challenges retailers have faced during the pandemic. By dramatically increasing the speed of mobile networks, it paves the way for a dizzying array of innovations.

The rollout of 5G networks will play an important role in supporting retailers’ progress towards providing a seamless omnichannel experience. By creating a more deeply personalized experience, retailers will be able to increase sales. And the efficiency gains enabled by 5G will help improve operating margins.

Technology Quick Facts

5G marks the arrival of a new era in mobile communications that will change the speed and responsiveness of wireless networks. Thanks to the significant reduction in latency and the significant increase in speed, it can support more devices to access the Internet simultaneously. By connecting people and everything, retailers can usher in a new era of experience-driven innovation.

The enhanced connectivity enabled by 5G allows for near-seamless transfer of data and information. The powerful network is able to support a range of use cases that can improve operational efficiency and create a seamless experience for shoppers.

The retail industry is expected to achieve innovation in the following four areas.

1. Immersive shopping experiences: 5G supports a range of augmented reality (AR) and virtual reality (VR) solutions. These solutions can provide immersive experiences that change the way consumers interact with products. The increased speed achieved by 5G makes virtual commerce possible. In this way, consumers can see products in the real world, thereby expanding the scale of digital touchpoints. Digital commerce has created a host of new shopping experiences, further blurring the lines between physical and digital retail experiences. When consumers open a store, they will be able to see the products in the real world.

When planning to renovate their home, they no longer need to go to a home furnishings store, but can sit down and experience a new sofa to see how it will look in their home. This immersive 3D experience will completely change the concept of "try before you buy" and make personalized digital experience a reality.

Beyond that, AR and VR will create a host of new and exciting in-store experiences. Interactive fitting rooms within stores can help shoppers select alternate sizes and suggest accessories or alternatives, all without leaving the room. By interacting with VR solutions, consumers can adjust lighting and backgrounds to see how clothing will look in different environments, further enhancing the experience and driving sales. Additionally, if shoppers aren’t ready to purchase everything just yet, they can send the data to their phone for easy purchase later. 5G extends existing AR/VR capabilities beyond smartphones, supporting a truly integrated retail experience with personalized services for a richer experience.

2. Contactless shopping: This trend will continue after the pandemic, and 5G will support its next step. Seamless mobile payment and shopping will become a reality, and customers will no longer need to physically interact with salespeople. Voice-activated digital video displays can automatically perform many functions that were previously performed by store employees.

3. Cashierless stores: 5G RFID tags enable retailers to scale up cashierless store deployments in a variety of retail environments. Retailers have the ability to increase the number of devices and people connected to the network, ultimately gaining the technology and price points needed to turn the concept into a mainstream solution, including large wholesale stores and supermarkets.

4. Store inventory and logistics : Thanks to 5G capabilities, retailers’ cloud backend systems can now be accessed in real time, improving performance. Sensors will be deployed on shelves, transmitting information in real time, ensuring continuous and accurate monitoring of inventory levels and equipment locations. Consumers will therefore be able to click and receive their orders without any unplanned delays or out-of-stock situations that could cause customer loss.

5G’s increased bandwidth provides 360-degree visibility across the supply chain, removing much of the friction from existing processes and reducing losses such as inventory shrinkage. By providing retailers with enhanced data on usage patterns, operations can be further streamlined and inventory waste reduced.

In addition to the innovations enabled by 5G, the complexity of retail systems has also increased dramatically. Instead of evaluating individual components, retailers now need to test the entire ecosystem to ensure it meets customer expectations. In order to gain real returns from the innovations enabled by 5G, retailers must rethink how they test and monitor the performance of digital experiences.

As retail brands struggle in the face of the retail apocalypse, the advent of 5G networks offers a glimmer of hope for them to create deeper digital experiences that will positively impact the bottom line.

Gareth Smith, General Manager, Eggplant, a Keysight Technologies company

Gareth Smith is a senior leader of the Product Marketing, Product Management Solutions and Pre-Sales teams. He previously worked at Progress Software for many years in various roles including Director of Product Management and Chief Software Architect. Gareth was also part of the founding team of Apama, where he served as Director of Pre-Sales and Chief Architect before Progress Software acquired the company. Smith holds a PhD in Computer Science, with a focus on the design of collaborative user interfaces. Prior to this, he also worked in academia for over a decade.

About Keysight Technologies

Keysight Technologies is a leading technology company that helps enterprises, service providers and governments accelerate innovation to create a secure and connected world. From design simulation, prototype verification, production test to optimization of network and cloud environments, Keysight Technologies provides a full range of test and analysis solutions to help customers deeply optimize the network and bring their electronic products to market faster and at a lower cost. Our customers are spread across the global communications ecosystem, aerospace and defense, automotive, energy, semiconductor and general electronics terminal markets. In fiscal year 2020, Keysight Technologies' revenue reached US$4.2 billion.