The omnichannel retailing involves customers browsing products online and making the purchase offline or vice versa. It combines physical and digital shopping experiences by giving customers the flexibility to shop across various sales channels like online websites, mobile apps, social media, physical storefronts and call centers. These multi-channel shopping experiences enhance customer satisfaction by reducing purchase time and providing seamless transition between retail mediums.
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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growth of the omnichannel retailing market is driven by integration of advanced technologies like IoT, AI, machine learning and analytics to improve customer experience. Technology integration helps retailers gain insights into customer behavior and purchasing patterns across various touchpoints. This data helps optimize inventory, streamline operations, personalize offerings and enhance after-sales support. Additionally, growing demand for seamless shopping experiences among millennials and gen z customers is also propelling market expansion. Moreover, smart devices proliferation is enabling customers to browse and purchase products anytime on the go using mobile apps, boosting omnichannel adoption. Furthermore, expansion of warehousing and fulfillment infrastructure by retailers to facilitate BOPIS (buy online pickup in store) and BORIS (buy online return in store) services is accelerating market growth.
SWOT Analysis
Strength: Omnichannel retailing allows customers to engage anytime, anywhere across channels in a seamless and consistent experience. This improves customer satisfaction and loyalty. Combining both online and offline retail operations enables businesses to reach more customers and increase sales. Integrated inventories across channels ensure products are always available when and where customers want them.
Weakness: Maintaining consistency across all customer touchpoints is challenging and costly. It requires heavy investment in technology infrastructure and employee training to synchronise operations. Data privacy and security risks are higher with increased digital integration.
Opportunity: Younger generations and millennials, who are more technology-savvy, expect unified experiences across platforms. This drives the demand for omnichannel services. Rapid growth of e-commerce and m-commerce fuel the need for multi-channel integration. Expanding into new international markets presents opportunity.
Threats: Stiff competition from established retailers adapting omnichannel models quickly. Disruptions from emerging direct-to-consumer brands and small retailers using novel engagement strategies on social media.
Key players analysis:
Key players operating in the omnichannel retailing market are Amazon, Walmart, Alibaba Group, Target Corporation, com, 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. They are focusing on enhancing their omnichannel strategies to stay ahead of competition.
Regional analysis:
North America dominated the market in 2023, accounting for over 30% share due to high digital infrastructure and internet penetration. Asia Pacific exhibits fastest growth rate with China and India emerging as major markets on back of rising disposable incomes, expanding middle class, and growing young population accustomed to e-commerce.
Key Takeaways
The global omnichannel retailing market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing preference of consumers for convenient shopping experiences.
