5G Retail

What is 5G and its Impact on Retail?

As retailers try to imagine the next, they are giving importance to hyper connectivity. 5G in retail is one such area that answers most questions asked by retailers around the globe. For such retailers, both are important – in-store and online shopping experience. As well as the thin line, which is full of potential, between in-store and online. In this blog post, we discuss impact, advantages, and future of 5G in the e-commerce ecosystem.

Table of Contents

What is 5G?

With more available bandwidth as well as the advanced antenna technology, 5G guarantees a substantial increase in the number of data transmitted over wireless technologies. Estimates here vary and usually start at about ten times as strong as 4G in 5G.

In some instances, estimates go right up to 100 times as high. 5G provides network management in addition to enhancements in speed, efficiency, and latency. There is something unique within network slicing, which enables mobile operators to build several virtual networks beneath the umbrella of any single physical 5G network.

Network slicing indicates that the network connections can theoretically be sold as necessary. Consider an example – a Google mobile self-driving car might require an incredibly fast connection with extremely-low latency for navigating in real-time.

The touchscreen in Samsung refrigerator in a relationship with Amazon pantry will not need similar efficiency. As such, network slicing would provide a much more tailored approach. Beyond the kitchens and the vehicles, you should also start thinking of actions like “download”, “install”, and more.

Impact of 5G

Market analysis shows a positive response to 5G. The Research and the Markets announced in September 2019 that in 2020, the worldwide market for the 5G technology would be estimated at $5.54 billion and has been projected to hit $667.9 billion by the year 2026. The forecast represents a possible 122.3 percent raise from 2020 to 2026. 

As of January 2019, as part of a trial phase, several cities launched 5G through various telecom operators.

The launch did cover a few significant markets across the U.S. for gaining insights into how 5G would work in regions with populations rich in enterprises and saturated with the consumers. Gartner estimates that even more than half of the organizations will adopt 5G by the end of next year, but with a provision that could slow progress.

According to Gartner’s research, the new service is still not widespread enough yet to support most desired business use cases, an obvious problem that is likely to force on through the year 2022. Various solutions include the core slicing, redevelopment of a radio network, and edge computing, which is a tough technical challenge that is definitely beyond the expertise of the eCommerce leaders.

The best response to this problem is to collaborate with specialists, explicitly dealing with mobile and the 5G technologies, to discuss specific business concerns before extending 5G-centered plans. Yet remain awake and conscious: delays are no excuse to ignore how 5G becomes an essential part of mobile retail.

Advantages of Adopting 5G for Retailers

Catalyst for Digital Transformation in Retail

– Enables innovation by leveraging Internet of Things (IoT) and Augmented Reality (AR)

– Enhance personalised shopping experience along with better engagement with products offered by retailers.

– With new technology, changes will be introduced different retail operations such as inventory management, productivity, and more.

New Possibilities with New Use Cases in Retail

– Contactless shopping experience using 5G-enabled smartphones

– Use of Artificial Intelligence (AI) for dynamic pricing and personalised item suggestions

– Operational efficiency real time out of stock visibility

Impact of 5G on Retail Ecommerce

Adobe Digital stated that 5G would raise international mobile e-commerce sales by $12 billion. 5G is not only used in making the online shopping experience more accessible, businesses also use it to provide an engaging customer experience.


5G is transforming the ecommerce journey from beginning to end: product marketing, product purchase, and finally, product support as well as feedback. It is quite impossible to determine exactly how the 5g impacts on retail industry. However, it’s safe to assume that the retailers need to prepare themselves with either the appropriate tools to adjust to the unpredictable trends in digital commerce that 5G is going to throw up. Whether its emerging markets, unpredictable shopper actions, or disruptive technology, retailers need to be able to talk to their customers and take orders in a variety of ways to understand their potential.

Artificial Intelligence

Enterprises are increasingly utilizing customer service platforms driven by artificial intelligence throughout the context of chatbots and the virtual personal assistants on ecommerce platforms. They mimic the experience of having a specific shop assistant for assisting you with any of your purchases.

Multiple Device Shopping

The speed and convenience 5G brings to the ecommerce experience, combined with the increasing abundance of mobile and web-connected devices, would enable online transactions to be performed utilizing tools apart from mobile devices and computers.

The examples of 5G impact on retail and other industries are the cars that can browse the web utilizing 5G, watches that will enable the transactions to be still made whenever, wherever, and the refrigerators that immediately put in orders to restock them when they feel they run short on certain products.

How 5G Enhances Digital Commerce?

5G impact on the retail industry is expected to all be tremendous. The commitment of higher speeds, lowest latency, excellent reliability, and enhanced bandwidth seems to have retailers vying to cash in for the opportunities to enhance the mobile eCommerce experiences.

The faster speeds and lower latency variables allow smooth retail shopping experiences. The 5G networks are also expected to raise the data speed for up to three times the current 4G / LTE rate. Each fraction of a second count in a world where consumers abandon their cart after a two-second page load waits.

A glance at the Cyber Week 2019 shows how strong the mobile experiences have become: as demonstrated by Adobe and SharePoint, 65 percent of all the eCommerce orders come from a mobile device on Black Friday. With smartphone sales of $2.9 billion alone. 5G arrives on stage just in time to help online merchants meet and exceed the expectations and demands of their customers.

Speed is crucial to winning the eCommerce sales, but that’s essential to get as much information as possible while heading all out to retail on 5G. Be aware of the problems surrounding the introduction and the development of technology to prevent expensive mistakes.

Does 5G Expansion and Adoption need Work?

The expected rapid rates and decreased latency promise several launches and adoptions of technology. Moreover, speed alone may not support the smooth use of Virtual Reality (VR) / Augmented Reality(AR), IoT, and AI innovations. Most companies lack the resources to sustain such exciting new scenarios, so that’s a tough sell to seek to invest in an even more complicated version without guidance.

With the 5G speed available, developers would have a healthier environment in which to test the developing technologies while improving the existing infrastructure. The future is coming quickly upon us. It just needs a little more time.

Several key issues and concerns are surrounding 5G implementation and expansion:

The Large Scale Cyber Security Issues

With proposed extended 5G deployment, many companies are eagerly awaiting the addition of new providers to the systems. But any piece of this unique puzzle may be unpredictable. Cybercrime has to be a top priority for the retail leaders desiring to contribute 5G to the tech stack at the company.

The vulnerability of Network Coverage

A Wired report showed the particular weakness tied to the 5G network extension itself. Some 5G flaws allow “downgrade” attacks when manipulating a user’s phone connection to downgrade to 3G or 4G service. That is an easy way for hackers to conduct cyber attacks using unresolved vulnerabilities in older networks.

Consumer Security Concerns

The 5G security issues are growing after the researchers at the University of Purdue and Iowa found 11 flaws in next-generation cellular networks. Among the risks found in a research study are “stingrays,” which pose themselves as a cell phone tower for the users that spy on a system that occurred on the previous 3G and the 4G networks.

These are to be seen as a sign of caution, not a sign of stopping. The effort is worth 5G, but not without the due diligence and the research. The retailers, who comprehend where the 5G is now, would remain in the lead of the mobile retail race, as much as they understand wherein the technology is going.

Future of 5G Impact on Retail Industry

– Retail workforce may have to trained in virtual reality and augmented reality to impart a better shopping experience.

– Reimagine the planogram design and compliance .

– Think diligently about augmented safety and form policies.

Published by

Digital Commerce Insights Team

The Digital Commerce Insights Team provide information on markets, technology, models, supply chain, operations, and more.

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