The retail digital transformation market is estimated to be valued at US$ 7230.57 Mn in 2023 and is expected to exhibit a CAGR of 13.0 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The retail digital transformation market consists of solutions that help retailers enhance their in-store and omni-channel shopping experience. Solutions like cloud solutions, IoT, analytics, social media platforms, etc. help retailers understand customer preferences, streamline supply chain & warehouse operations, enhance inventory management, and personalize interactions. These solutions are enabling retailers to offer enhanced personalized experience to customers.
Market key trends:
Rising focus on enhancing in-store shopping experience is driving the retail digital transformation market. Customers today want interactive and personalized in-store experiences on par with online. Technologies like AI, VR,AR are helping retailers transform brick-and-mortar stores into experience centers. For instance, retailers are using VR for interactive product demos, AI for personalized recommendations, smart mirrors to try virtual outfits. Foot traffic in stores is increasing as customers now want engaging in-store experiences along with convenience of online shopping. This growing focus on transforming offline stores is propelling the demand for digital solutions in retail.
Porter’s Analysis
Threat of new entrants: The Retail Digital Transformation market has medium threat of new entrants due to high capital requirement for R&D and technological infrastructure. However, opportunity for niche players is increasing.
Bargaining power of buyers: Bargaining power of buyers is high as customers can easily switch to other retailers based on price and availability. Retailers need to offer personalized experience to retain customers.
Bargaining power of suppliers: Suppliers have medium bargaining power due to availability of alternate suppliers and supply networks. However, suppliers of critical technologies can influence retailers.
Threat of new substitutes: Threat of substitutes is medium as retailers are adopting omnichannel strategy to provide seamless customer experience across online and offline channels.
Competitive rivalry: Intense among established players.
SWOT Analysis
Strength: Established distribution network, recognized brands, personalized customer experience and analytics driven operations.
Weakness: High investment needs, vulnerability to technology disruptions and dependence on third parties.
Opportunity: Growth in emerging markets, increasing adoption of IoT and AR/VR technologies.
Threats: Stringent regulations, cybersecurity risks and changing consumer preferences.
Key Takeaways
The Global Retail Digital Transformation Market Share is expected to witness high growth, exhibiting CAGR of 13.0 % over the forecast period, due to increasing internet and smartphone penetration. Technological advancements in areas of big data analytics, cloud, mobility and social media are driving demand for digital platforms across retail organizations.
Regionally, Asia Pacific dominates the global Retail Digital Transformation market and is expected to grow at fastest rate owing to rise of e-commerce industry in developing nations such as India and China. North America and Europe hold significant shares due to mature retail industries and early adoption of digital technologies.
Key players operating in the Retail Digital Transformation market include Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, Alibaba Group Holding Limited, Tesco PLC, Rakuten, Inc., and Flipkart Internet Private Limited. Major players are focusing on strategic partnerships and M&A activities to expand market share and offerings.
Read More:
https://www.marketwebjournal.com/retail-digital-transformation-growth-market-size-share-analysis/
Sonata Software: Crafting a personalized and seamless experience across digital and physical spaces by better orchestrating the entire customer journey with digital retail solutions enabled by best in class platforms.https://www.sonata-software.com/industries/retail
