The Twilio contest challenges developers to create voice applications that improve retail processes during the holiday rush. The goal is to make these processes more efficient, especially with regards to managing seasonal staff, customer communication, and inventory management. By utilizing Twilio's development skills, participants can develop innovative solutions such as automated phone lines for scheduling and leave requests, personalized coupons and discounts, and express checkout options. The contest also encourages the use of vendor-managed inventory and VIP hotlines for high-spending customers. Developers can access various resources, including API reference documentation, SDKs, and tutorials, to help them build their applications.