by Retail digital transformation involves integrating digital technologies into retail business operations to enhance customer experience and optimize business processes. Advancements in cloud, artificial intelligence, internet of things, and big data analytics have enabled retailers to seamlessly deliver personalized omnichannel services to customers. Retailers are increasingly adopting e-commerce platforms and mobile apps to expand their online presence and provide customers with convenient options to purchase products anytime and anywhere. Digital transformation strategies help retailers gain real-time insights into customer behavior, streamline supply chain management, optimize inventory levels, and carry out predictive demand forecasting. The global Retail Digital Transformation Market is estimated to be valued at US$ 7230.57 Mn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends shaping the retail digital transformation market is the increasing integration of augmented reality and virtual reality technologies. AR/VR helps customers visualize how products would look in real life before purchasing. This improves customer satisfaction and reduces return rates for retailers. Using AR apps, customers can try out furniture, apparel, or other large products virtually to get a real sense of size, color, and style. Retailers are implementing such innovative AR/VR solutions to offer more engaging and personalized shopping experiences sought by modern customers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the retail digital transformation market requires high initial investment and expertise. However, new start-ups with disruptive technologies can pose a threat.
Bargaining power of buyers:
The bargaining power of buyers is high since most retail digital transformation solutions are available from multiple vendors. Buyers can negotiate on price and functionality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many technology solution providers and platform developers in the market. However, specialized expertise commands pricing power.
Threat of new substitutes:
The threat of new substitutes is high with the emergence of new technologies like AI, IoT, analytics etc. that can transform customer experiences and internal operations.
Competitive rivalry: Competition is intense among established tech vendors and new start-ups to gain market share through product innovation and partnerships.
Key Takeaways
The global Retail Digital Transformation Market Share is expected to witness high growth driven by the need to enhance customer experience and increase operational efficiency. The growing mobile commerce is prompting retailers to integrate digital solutions across supply chain, marketing, commerce and customer service touchpoints.
Regional Analysis:
North America dominates the market owing to high technology adoption by major retail chains to drive sales through personalized engaging experiences. Countries like the US and Canada are innovating in areas of predictive analytics, virtual reality and augmented reality to transform physical stores. Europe is another major market for retail digital transformation solutions. Countries like the UK, Germany, France and Italy are focusing on omni-channel integration, automation of backend processes and data-driven merchandising to gain competitive advantage.
Key players operating in the Retail Digital Transformation market are Bio Bidet, Kohler Co., Inc., HomeTECH, Toshiba, LIXIL Corporation, Coway Co., Ltd, Roca Sanitario SA, Panasonic Corporation of America, RinseWorks, Inc, Brondell Inc., and TOTO USA, Inc. Major players are strengthening capabilities in areas of computer vision, IoT sensors and cloud technology to provide holistic transformation programs to retailers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
