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Omnichannel retailing involves the synergistic use of physical stores and digital retailing platforms to provide a seamless shopping experience to customers. Customers across the globe are frequently using multiple channels like company owned websites, mobile apps, social media platforms and physical stores to browse products, make purchases as well as returns. Retailers are implementing new technologies like big data analytics, artificial intelligence, augmented reality and virtual reality to gain deep consumer insights and deliver personalized recommendations and promotions. Connecting digital touchpoints with physical stores enables customers to check product availability, buy online for in-store or curbside pickup, try products virtually and more.
The global Omnichannel Retailing Market is estimated to be valued at US$ 13.56 billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Ecommerce Sales and Flourishing Omnichannel Retailing are Driving the Market Growth
The market is majorly driven by growing e-commerce sector and increasing online shopping activities. E-commerce sales worldwide have grown exponentially during the pandemic as people preferred contactless shopping. Retailers are deploying new technologies and platforms to offer seamless integration of digital and physical stores. Customers can research products online, place orders digitally and opt for options like buy online pick up in store or curbside delivery. Omnichannel shopping provides a unified experience and allows customers to complete transactions through the channel of their choice. Retailers are implementing technologies like AI, AR/VR, big data and IoT solutions to gain insights into consumer behavior and streamline inventory, fulfillment as well as after-sales services across channels. Growing preference for omnichannel shopping among customers especially millennials and generation Z is expected to boost the market growth over the forecast period.
Segment Analysis
The global omnichannel retailing market is dominated by the fashion sub-segment. Fashion products such as apparel, footwear and fashion accessories are highly adopted through omnichannel retailing. Customers prefer exploring product collections and making purchases of fashion products across multiple retail channels such as online websites and brick-and-mortar stores. The ability to research, compare prices and complete purchases seamlessly across channels has made omnichannel strategy highly successful for fashion retailers.
Key players operating in the omnichannel retailing market are Walmart, Amazon, Best Buy, Target and Kroger. Key players are focusing on advanced technologies and partnerships to offer superior omnichannel experience to customers. Investments are being made to integrate services such as BOPIS (buy online pickup in store), curbside pickup, endless aisle etc. Advanced analytics are also being leveraged to gain customer insights and power personalized experiences. Customers today expect a unified shopping experience online and in-store from retailers.
PEST Analysis
Political: Omnichannel retailing faces no major political risks currently. Regulations support both online and offline retail in most countries.
Economic: Rising internet penetration and growth of digital payments have enabled strong economic growth of online retail. Customers’ increasing spending power also supports omnichannel strategies of retailers.
Social: Changing customer preferences towards convenience and experience-led shopping are driving the adoption of omnichannel models. Customers especially younger demographics are comfortable with multiple channel shopping.
Technological: Advancements in areas such as augmented reality, AI, analytics etc. allow personalized experiences and enable seamless integration between online and offline channels. Technology innovations continue to expand the potential of omnichannel retailing.
Key Takeaways
The global Omnichannel Retailing Market is expected to witness high growth during the forecast period of 2024 to 2031. The global omnichannel retailing market is estimated to be valued at US$ 13.56 billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
North America is currently the largest and fastest growing regional market for omnichannel retailing. Rising penetration of internet and smartphones along with high adoption of advanced technologies by retailers have made North American customers highly receptive to omnichannel shopping.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- 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, chemicals and materials, defense and aerospace, consumer goods, etc.
