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Omnichannel retailing refers to seamless shopping experience for customers across various channels like online websites, physical stores, mobile apps, social media, etc. This allows customers to research, order and receive products anytime and anywhere through different touchpoints. Key products in omnichannel retailing include apparel, consumer electronics, food and beverages, healthcare, and personal care products that are sold through multiple channels in an integrated manner.
The Omnichannel Retailing Market is estimated to be valued at US$ 7.80 Bn 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 seamless shopping experience for customers across various channels like online websites, physical stores, mobile apps, social media, etc. This allows customers to research, order and receive products anytime and anywhere through different touchpoints. Key products in omnichannel retailing include apparel, consumer electronics, food and beverages, healthcare, and personal care products that are sold through multiple channels in an integrated manner.
Market Dynamics:
Growing penetration of mobile devices and rise in online shopping is a key driver for the omnichannel retailing market. According to eMarketer, mobile commerce sales accounts for 45% of total e-commerce sales globally. Moreover, easy payment options and doorstep delivery offered by omni-channel retailers is encouraging customers to shop through multiple channels. For example, online retailers like Amazon and Walmart offer in-store pickup options, same-day delivery, virtual try-on features and personalized recommendations to enhance customer experience. Furthermore, integration of technologies such as AI, IoT, virtual/augmented reality is allowing retailers to gain real-time insights about customer behavior and inventory across various sales channels to deliver a seamless shopping journey.
Segment Analysis
The omnichannel retailing market is segmented into corporate chains and independent retailers. The corporate chains segment dominates the market due to larger product portfolios, numerous private label brands and strong online presence as compared to independent retailers. Large corporate chains like Walmart and Amazon offer a wide range of products at lower costs through their integrated online-offline presence.
PEST Analysis
Political: Governments across regions are encouraging retail digitization through various initiatives to promote e-commerce. This is boosting adoption of omnichannel services.
Economic: Rising internet penetration, growing disposable incomes and increasing smartphone usage are fueling the demand for seamless online-offline shopping experiences.
Social: Changing consumer preferences towards convenience-driven shopping and availability of multiple purchase options are propelling market growth.
Technological: Integration of advanced technologies like AI, IoT, Augmented Reality and analytics is enabling retailers to provide personalized recommendations and optimize supply chains. This is enhancing customer satisfaction.
Key players operating in the omnichannel retailing market are Amazon, Walmart, Alibaba Group, Target Corporation, 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. Large retailers are investing in AI-enabled solutions and order management systems to enhance inventory visibility and fulfillment across sales channels.
Key Takeaways
The global omnichannel retailing market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing digitalization across retail industries.
The market size for 2023 is estimated at US$ 7.80 Bn. North America captures over 30% share and is expected to remain the largest market owing to high technology adoption rates and strong consumer preference towards multichannel shopping experiences in the region.
Asia Pacific is poised to be the fastest growing market, expanding at a CAGR of 15% during 2023-2030. Favorable government policies promoting e-commerce and rising number of tech-savvy consumers are fueling demand in the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
