by Digital transformation in retail involves the integration of digital technologies and Business models to meet customer demands in retail stores. Retailers are focusing on automation technologies like predictive analytics, AI assistance, digital payments and supply chain optimization to enhance customer experience and increase operational efficiencies. Technologies like cloud computing, IoT and big data analytics have given momentum to implement innovative digital initiatives across multi-channel retail operations.
The Retail Digital Transformation Market Demand 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 from 2024 to 2030.
Key Takeaways
Key players operating in the retail digital transformation 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. The growing demand for seamless omnichannel experience from customers is driving retailers to invest in technologies like online order management, price optimization and location-based services. North America currently dominates the retail digital transformation market owing to widespread adoption of cloud, mobile technologies and self-checkout systems among top retailers in the region. However, Asia Pacific is expected to witness highest growth during the forecast period due to expanding retail sector and increasing internet penetration in developing economies like China and India.
Market key trends
One of the key trends in the retail digital transformation market is convergence of online and offline retail channels. Advanced technologies are enabling unified multi-channel experiences where customers can seamlessly research products online and complete purchases either in-store or through digital platforms. Omnichannel retailing has increased consumer engagement and brand loyalty for retailers. Implementation of AI assistants, predictive analytics and automation in supply chain is also a major trend driving operational efficiencies and revenue growth for retail businesses.
Porter’s Analysis
Threat of new entrants: High capital requirement for establishing new retail infrastructure hinders new entrants.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and negotiating on price.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute products.
Threat of new substitutes: Threat of new substitutes is high as evolving technologies can disrupt existing retail models.
Competitive rivalry: Intense competition exists among existing players to adopt digital solutions and provide seamless shopping experience.
Geographical regions: North America dominates the global retail digital transformation market, accounting for around 40% share in 2024. High mobile and internet penetration coupled with strong economic growth support retail digitalization in the region.
Asia Pacific is poised to be the fastest growing region during the forecast period. Countries such as China and India are witnessing rapid expansion of e-commerce sector and organized retail. Growing smartphone and internet user base provide impetus to digital retail channels.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
