Retail digital transformation involves the integration of digital technologies to enhance customer experiences in the retail business. Technologies such as mobile applications, cloud computing, big data analytics, artificial intelligence, and augmented/virtual reality help retailers gain customer insight, optimize inventory, facilitate online shopping and payments, and deliver personalized shopping experiences.
The global Retail Digital Transformation Market is estimated to be valued at US$ 8329.62 Mn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing adoption of e-commerce platforms among retailers and customers has been a major driver of digital transformation in the retail sector. E-commerce offers wider access to markets, cheaper operational costs, and improved customer services. Retailers are employing digital technologies to strengthen their e-commerce capabilities, engage online customers, and meet the demands of the omnichannel shopping experience. This has led many retailers to invest heavily in modernizing their infrastructure and redesigning business models to capture the opportunities of the digital commerce landscape. The rising e-commerce industry is thus propelling the need for retail digital transformation across the world.
SWOT Analysis
Strength: Retail Digital Transformation provides opportunities to engage customers through personalized experiences and improve operations through data-driven insights. It allows retailers to accelerate innovation and unlock new revenue streams.
Weakness: Implementing a comprehensive digital transformation strategy requires significant upfront investment and long-term commitment. Legacy systems need to be replaced or integrated which can increase complexities and costs.
Opportunity: Digital technologies like AI, analytics, IoT, cloud etc. are transforming customer expectations. Retailers can use these to enhance every step of the customer journey and compete more effectively. Growing e-commerce and m-commerce also offer new avenues for growth.
Threats: Failure to innovate and keep pace with evolving customer preferences can lead to loss of market share. Data privacy and security concerns pose reputational risks. Intense competition from online and offline retailers pressures margins.
Key Takeaways
The global Retail Digital Transformation market is expected to witness high growth over the forecast period of 2024 to 2031. Global Retail Digital Transformation Market Size is estimated to be valued at US$ 8329.62 Mn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period 2024 to 2031.
Regional analysis: North America currently dominates the market due to large retail chains actively adopting new technologies. However, Asia Pacific is expected to see the fastest growth on account of growing internet penetration, rising disposable incomes and expansion of e-commerce giants in the region. Countries like China, India and Japan will be major revenue contributors.
Key players: 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. They are focusing on innovation through R&D and partnerships to offer differentiated solutions and strengthen their market position. Strategic acquisitions are also being pursued for capabilities enhancement.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it