There are many benefits in being an online retailer and some of the main ones are that you save time and money and the fact that it allows you to reach a large number of consumers. This enables online retailers to offer a wide variety of products and services that would otherwise not be able to be sold in physical stores. It is also the exchange of commodities between consumers and sellers that are conducted through the Internet. This includes both purchasing from a direct wholesalers/retail merchant who is buying directly from another retail store (known as a direct wholesaler) and purchasing from an online retail merchant. It also includes online shopping where consumers can shop from the comfort of their home for various products and services.
Online retailing has revolutionized the way people buy and sell goods and services and has opened up a new doorway for earning a living. It provides you with a wide range of options for both products and services that are hard to find physically. In fact it is estimated that e-commerce business will outpace physical retail stores in the next decade. The advent of Internet has allowed customers to purchase items or goods in other countries from the comfort of their homes or offices.
The global retail digital transformation market is expected to surpass US$ 13,285.3 Mn in terms of value by the end of 2028.
Global Retail Digital Transformation Market: Drivers
Increasing use of smart gadgets and rising technological advancements are expected to propel the global retail digital transformation market growth during the forecast period
Technological advancements in the recent decade have increased the use of smart gadgets such as smartphones, smart speakers, security cameras, smart lighting, smart display, and more. These devices provide consumer-friendly service and enhanced productivity. Over the years, the proliferation of the internet has increased significantly. According to Coherent Market Insights’ analysis, the global population that has access to the Internet increased from 35.6% in 2012 to 38.1% in 2013. According to the same source, the percentage of the population that had access to the Internet in 2011 was 32.0%. Increasing number of people gaining access to the Internet, which in turn, is expected to drive growth of the global retail digital transformation market during the forecast period.
Global Retail Digital Transformation Market: Opportunities
Launch of novel products can provide significant business opportunities in the global retail digital transformation market in the near future
Major companies in the market are focused on research and development activities, in order to launch novel products and expand their market presence. For instance, in December 2014, Amazon.com, Inc. launched Amazon Elements, which provides critical information such as the ingredients, time, and location of the manufacturing of various products to its Prime members. Furthermore, in February 2015, Alibaba Group Holding Limited announced the establishment of nonprofit Alibaba Hong Kong Young Entrepreneurs Foundation with an investment of US$ 128.9 Mn.
Global Retail Digital Transformation Market: Recent Developments
In October 2020, Alibaba Group Holding Limited announced it will invest approximately USD3.6 billion in respect of Sun Art Retail Group Limited, a leading hypermarket and supermarket operator in China that will raise its aggregate direct and indirect stake to approximately 72%. This transaction demonstrates Alibaba’s continued commitment to Sun Art, and its New Retail strategy by further integrating online and offline resources in China’s retail sector.
In May 2021, Despite the enormous challenges posed by the COVID-19 pandemic, the Otto Group wrapped up the past financial year 2020-21 with outstanding success. The Group was able to increase its global revenue on a comparable basis by 17.2 % to 15.6 billion euros i.e. around US$ 17.6 billion.
Major companies are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in May 2018, Wal-Mart Stores, Inc. acquired Flipkart for US$ 16 billion.
Global Retail Digital Transformation Market: Restraints
Unavailability of personal touch is expected to hamper the global retail digital transformation market growth over the forecast period
Online retail has witnessed significant growth in the past few years particularly in the case of standardized product categories. However, other product categories including fashion, beauty products, and food require customers to touch and feel the products to have a satisfactory shopping experience. Factors such as the feel of material, fitting, and real-life view of these products help in decision making for customers. Lack of these features in online retail shopping is expected to hamper the global retail digital transformation market growth over the forecast period.
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Global Retail Digital Transformation Market - Impact of Coronavirus (Covid-19) Pandemic
Emergence of Covid-19 and increasing use of internet is expected to benefit the global retail digital transformation market. There were 77.79 million internet users in Germany in January 2020. The number of internet users in Germany increased by 307 thousand (+0.4%) between 2019 and 2020 (Kepios). In July 2020, Columbia Sportswear Company reported a 40% decline in overall net revenues in its July 2020 quarterly earnings report, due in part to pandemic-related store closures. However, the company’s e-commerce sales increased 72% compared with the year-ago period.
Advent of cloud-computing is major trends
Cloud computing is an on-demand service for computer systems that deal with data storage and computing power without direct management by the user. Many key players in the market have started retail digital transformation with cloud computing technology. It offers enhanced efficiency, cost reduction, improved data security, scalability, mobility, better control, and a competitive edge in the market.
Firewall protection for retail digital transformation
Firewall protection is a network security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules. Firewall offers various advantages such as monitoring traffic, curb on hackers, blocks on Trojans, and also key loggers. Firewall integrated retail digital transformation can gain a significant advantage in the global retail digital transformation market.
Global Retail Digital Transformation Market: Competitive Landscape
Major companies operating in the global retail digital transformation market are Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, Alibaba Group Holding Limited, Tesco PLC, Rakuten, Inc., and Flipkart Internet Private Limited.