February 21, 2024
Omnichannel Retailing Market
Ict

Rapid Urbanization Boosts Growth of Omnichannel Retailing

The global Omnichannel Retailing Market is estimated to be valued at US$ 7.80 Bn or Billion in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Omnichannel retailing refers to an approach or strategy used by retailers to present a unified shopping experience for customers across various online and offline channels. Key channels may include company websites, mobile apps, social media, physical stores, call centers, and more. This omnichannel strategy aims to create seamless connectivity between all customer touchpoints. It allows customers to research, purchase, collect, and return products through any convenient channel. Omnichannel retailing provides customers with enhanced convenience, more options for multichannel buying and improved customer service experience.

Market key trends:

One of the major trends in the Omnichannel Retailing Market Size is proliferation of mobile applications. Retailers are increasingly developing robust mobile apps to provide customers easily accessible shopping platforms. Mobile Apps allow consumers to browse products, read reviews, place orders, track deliveries, manage accounts, and make payments on-the-go. Another key trend is growing integration of artificial intelligence (AI) and augmented reality (AR) technologies. AI is helping retailers in tasks like personalized product recommendations, predictive analytics, inventory management etc. while AR is enhancing online shopping experience through virtual try-ons of apparels, jewelry, accessories etc. Furthermore, rising popularity of social commerce where sales are driven through social media platforms is emerging as an important trend in the omnichannel retailing market.

Porter’s Analysis

Threat of new entrants: The global omnichannel retailing market requires high capital investments to enter due to backend infrastructure and fulfillment costs. Established brands have an advantage due to existing customers and supply chains.
Bargaining power of buyers: Buyers have high bargaining power in this market due to availability of multiple options. They can easily switch between brands based on pricing and services.
Bargaining power of suppliers: A few dominant suppliers exist for certain products and technologies which gives them leverage in negotiating prices. However, retailers can switch to alternate suppliers to reduce dependence.
Threat of new substitutes: Threat of substitution is medium as offline stores still attract certain customers who prefer experiencing products before purchase. However, emergence of marketplaces is gradually becoming a substitute.
Competitive rivalry: The market is highly competitive with major players continuously investing in technology and customer experience to gain market share. Price wars and new promotional strategies intensify competition.

Key Takeaways

The global omnichannel retailing market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing consumer demand for seamless shopping experiences.

Regional analysis

The North America region dominates the omnichannel retailing market currently owing to high technology adoption. However, Asia Pacific is anticipated to grow at the fastest pace during the forecast period driven by large young population and rising internet penetration in countries like India and China.

Key players

Key players operating in the omnichannel retailing market include Amazon, Walmart, Alibaba Group, Target Corporation, com, eBay Inc., Best Buy Co. Inc, Zara (Inditex Group), The Home Depot Inc, Nordstrom Inc, Macy’s Inc, Costco Wholesale Corporation, Apple Inc., Tesco PLC, ASOS PLC. Amazon leads the market with its strong fulfillment network and loyal customer base.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it