The global retail digital transformation market is dominated by companies such as Amazon, Wal-Mart Stores, Flipkart, Alibaba, eBay, Tesco PLC, Rakuten Inc., Otto Group, and MercadoLibre Inc. In the coming years, the global retail digital transformation market is expected to witness steady portfolio expansion efforts from several players, as product differentiation has become a key strategy thanks to the relative ease of establishing a presence in the industry. Making transactions more convenient is likely to be the prime focus of leading players in the retail digital transformation market in the coming years.
According to Transparency Market Research (TMR), the total annual revenue of the global retail digital transformation market is expected to reach US$2,411.9 bn by the end of 2016 and further rise to close to US$4,920 bn by the end of 2020.
Consumer Electronics and Appliances Industry to Remain Leading Adopter of Retail Digital Transformation
The consumer electronics industry was among the first to realize the potential of ecommerce. Due to the ease of packaging and transporting consumer electronics such as smartphones, laptops, and tablets, online sales have become a major revenue source for the consumer electronics industry. Some companies are now even employing online-only sales models for their products, since the much more expensive brick-and-mortar stores are becoming an option rather than a necessity in the consumer electronics industry.
The consumer electronics and appliances sector held a dominant 37.3% of the global retail digital transformation market in 2013. Despite a slight decrease in its market share over the 2014-2020 forecast period, it is likely to remain the dominant product segment of the retail digital transformation market. The apparel and footwear sector is, on the other hand, likely to exhibit rapid growth in the 2014-2020 forecast period and is expected to attain a market share of 26.5% by the end of 2020.
Regionally, North America is the leading contributor to the global retail digital transformation market, followed closely by Europe and Asia Pacific. The ease of accessing online shopping portals in North America due to the availability of advanced telecommunications technologies has been the prime driver for the North America retail digital transformation market in the recent past. On the other hand, the rising adoption of advanced telecommunications technologies and the rising Internet penetration in countries such as China and India is likely to help Asia Pacific record a stellar 30.2% CAGR between 2014 and 2020. The share of Asia Pacific in the global retail digital transformation market is expected to rise to 39.7% by the end of 2020.
Rising Use of Smartphones Crucial for Steady Retail Digital Transformation
The increasing consumer base of the consumer electronics industry is a prime driver for the global retail digital transformation market. Retail digital transformation has moved beyond websites in recent years and is now centered on mobile apps, which are more convenient considering the fact that most users carry their smartphones at all times. The steady rollout of 4G/5G infrastructure is thus likely to remain a crucial driver for the retail digital transformation market in the coming years, as it will make conducting financial transactions on mobile apps even easier.
While the retail digital transformation industry is strong in developed countries, the expected growth of the market in developing countries is spearheaded by the increasing efforts being made by leading players to gain a foothold in the expanding market. Due to the rising disposable income of consumers in developing countries, online shopping is likely to become increasingly popular, leading to promising growth prospects for the retail digital transformation market.
Lack of Actual Product Experience before Purchase Keeps Customers Hesitant
Despite the strong growth prospects in developing regions, the retail digital transformation market is restrained by the inherent quality of lacking a personal touch in the purchasing process. This means the user isn’t able to actually to touch or feel a product before it is purchased. Acknowledging this, many online shopping portals have developed strong return/replacement networks, which could help the industry ameliorate this concern in the coming years.
The information in this preview comes from a Transparency Market Research report titled ‘Retail Digital Transformation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020.’
The global retail digital transformation market is segmented as follows:
Retail Digital Transformation Market, by Mode of Access
- Mobile Apps
Retail Digital Transformation Market, by Product
- Consumer Electronics and Appliances
- Apparel and Footwear
- Media, Toys and Games;
- Food, Grocery and Beverages
- Furniture and Home Improvement
- Beauty and Personal Care
Retail Digital Transformation Market, by Geography
- North America
- Western Europe
- Eastern Europe
- Asia Pacific excluding Japan
- Latin America
- Middle East and Africa
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