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:
The omnichannel retailing market involves the integration of online and offline shopping experiences for a seamless customer shopping journey. It allows buyers to research online and buy in-stores or choose between delivery and in-store pickup. This resonates well with today’s digitally empowered consumers who want personalized and flexible experiences.
Market key trends:
One of the major trends driving the Omnichannel Retailing Market Size is the emergence of new technologies like AI, mobile apps, analytics and cloud computing. Retailers are leveraging these technologies to gain deeper customer insights, improve operational efficiency, enhance engagement and provide a connected shopping experience. For instance, AI helps retailers provide personalized recommendations and chatbots to assist customers. Mobile apps allow customers to check inventory, track orders and manage accounts on-the-go. Analytics help identify spending patterns to send targeted offers. Cloud computing provides scalability and flexibility to retailers’ IT infrastructure. These technologies are enabling retailers to effectively integrate online and offline capabilities.
Porter’s Analysis
Threat of new entrants: The omnichannel retailing market requires significant financial investments to set up online shopping infrastructure and physical retail stores. Established players enjoy advantages of economies of scale which pose entry barriers for new players.
Bargaining power of buyers: Buyers have significant bargaining power due to availability of multiple retailers across online and offline channels. Buyers can compare prices and switch easily between channels.
Bargaining power of suppliers: Suppliers have moderate bargaining power depending on suppliers’ product differentiation and switching costs for retailers. Major retailers have considerable purchasing power over suppliers.
Threat of new substitutes: Digital-only retailers pose threats as substitutes, however, the integrated online-offline shopping experience provided by omnichannel retailing offers unique advantages over pure online or offline models.
Competitive rivalry: The market is competitive with the presence of major global retailers expanding omnichannel capabilities. Companies compete on pricing, product assortment, fulfilment speed and delivery options.
SWOT Analysis
Strengths: Wide geographic reach through online and physical stores; ability to fulfil online orders through stores; access to real-time customer data across channels.
Weaknesses: High infrastructure and operational costs; technological and organizational challenges in integrating channels; over-reliance on few major players.
Opportunities: Growth in mobile and online shopping; omnichannel strategies to enhance customer experience and retention; expanding into new countries/markets.
Threats: Disruptions from niche direct-to-consumer brands; data privacy and security concerns; intense price competition from digital pure players.
Key Takeaways
The global omnichannel retailing market is expected to witness high growth at a CAGR of 14% over the forecast period, due to increasing e-commerce penetration worldwide. North America accounted for the largest share of over 40% of the total market in 2023, due to high technology adoption and strong digital infrastructure in the US and Canada.
Within countries, urban population is driving omnichannel strategy adoption. With digital percolating in smaller cities and towns, rural markets will also contribute to future growth. Regional players are entering strategic collaborations with global leaders to leverage their supply chain and technology capabilities.
Key players operating in the omnichannel retailing market are Amazon, Walmart, Alibaba Group, Target Corporation, 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. Major players are investing significantly in fulfilment centers, online platforms and mobile technologies to eliminate friction across channels.
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