by Retail digital transformation involves the integration of digital technologies to alter conventional business practices and improve the retail customer experience. Digital technologies such as cloud computing, big data analytics, artificial intelligence, and IoT solutions help retailers understand customer behavior, streamline inventory, and optimize supply chains. Retailers use digital technologies to stay connected with customers throughout their shopping journey and provide personalized product recommendations. The increasing adoption of omnichannel retailing that allows shopping online as well as in-store is driving the demand for retail digital transformation.
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:
The growing adoption of technologies like AI, IoT, big data analytics, and cloud computing is one of the major trends in the retail digital transformation market. AI-powered systems help retailers engage customers through personalized recommendations. IoT-enabled devices such as smart mirrors and digital signages enhance the in-store customer experience. Big data analytics tools provide insights into customer behavior that help improve the overall retail experience. Cloud computing allows centralized storage and processing of the immense customer and transactional data amassed by retailers. The increasing preference of customers towards omnichannel shopping has also boosted the digital maturity of retailers.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Retail Digital Transformation market size is low as it requires high initial investments and established brands have strong customer loyalty.
Bargaining power of buyers: The bargaining power of buyers is high as there are many retailers offering similar digital solutions. Buyers can negotiate on price and delivery terms.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many technology providers supplying digital solutions for retail transformations.
Threat of new substitutes: The threat of substitutes is moderate as alternative channels like omnichannel and online retail provide options to customers.
Competitive rivalry: Competition in the market is high among established technology brands and retailers introducing their own digital platforms.
Key Takeaways
The global Retail Digital Transformation market is expected to witness high growth during the forecast period of 2023 to 2030.
Regional Analysis: The North America region currently dominates the market due to high technology adoption by major retail chains. Growing e-commerce sector and rise of mobile commerce are driving digital transformations across retail stores in the region.
The Asia Pacific region is expected to grow at the fastest pace during the forecast period. Countries like China, India, and Japan are witnessing rapid growth in internet and smartphone penetration, prompting retailers to enhance digital engagement with customers. Omnichannel integration and deployment of programs like buy online pickup in store are gaining traction.
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 focusing on developing innovative solutions and acquiring emerging technology firms to expand their product portfolio and market share. Strategic partnerships are becoming vital for integrated digital transformations across retail supply chains.
