With the emergence of the digital age, the lines between the physical and digital world are blurring. While brick-and-mortar stores are not going away, they need to extend their digital capabilities to remain competitive. Today’s consumer’s research products and services online, try them out and discuss them in communities. These consumer behaviors present a huge opportunity for retailers to leverage their existing assets. With retail digital transformation, companies can personalize offers and deliver a customized experience no matter where the consumer shops.
The digital transformation of retail can benefit a variety of industries. Insight-driven models are consumer-centric. They help retailers learn about the tastes, preferences, and value perceptions of consumers. By developing relationships with consumers, businesses can provide products that satisfy these preferences in a convenient manner. And, with more consumers turning to digital, brands can capitalize on this emotional connection with their customers. It’s important to consider all of these different opportunities when pursuing digital transformation.
Latest report available at Coherent Market Insights indicates that, global retail digital transformation market is estimated to be valued at US$ 5,662.6 million in 2021 and is expected to exhibit a CAGR of 13.0% over the forecast period (2021-2028).
The speed of retail digital transformation is forcing the need for composable and adaptable business models. Legacy retailers must adapt and innovate quickly to stay ahead of the competition. But, in order to adapt, retail visionaries must create a roadmap that outlines the overall direction of the company. The roadmap should be accompanied by a clear plan that outlines the goals and actions of the company and its people. It should be based on a clear strategy that leverages the strengths of each person within the company. In the context of retail digital transformation, the customer journeys must co-exist within the same space. For example, a shop customer may come into the store, browse the aisles, select items, pay with a mobile app, order online, and request home delivery. All of these processes will intersect in the same space. Ultimately, the retailer must transform its operations to be responsive and omnichannel. There’s no room for old-school business models that do not adapt to the digital age.