The world of retail is undergoing an unprecedented wave of innovation. Technology, of course, plays a major role, but it is not the only force at work. New business models are appearing that will have a profound influence across the e-commerce and wider retail value chain. At the same time, consumer behaviors and expectations are evolving.
In this report, we identify and examine those trends that will shape the retail landscape over the next five to 10 years.
For example, what technologies will have a transformative influence, and what technologies are just hype?
To provide answers to these questions & build a vision of the future, we interviewed thought leaders across the e-commerce ecosystems, including leading retail brands from a spread of market sectors.
Shopping online is growing faster, but still only represents a fraction of total shopping INR, just under 8%, according to India.
As of the first quarter 2016, the total amount of retail spending online (exommerce) was $92.8 billion, which was only 7.8% of all retail sales. Exommerce is in its infancy, which means that there are huge opportunities ahead, not just for the types of Flipkart, but for small merchants & startups as well.
Worldwide retail sales, including in-store & internet purchases, surpassed $22 trillion in 2015, up 5.6% from 2014, according to a study by eMarketer. They say that retail exommerce sales, those purchased over the internet, will make up 7.4% of the total retail market worldwide, or $1.671 trillion. By 2019, that share will jump to $3.578 trillion, yet retail exommerce will still only account for 12.8% of all retail purchases.
By 2019, many consumers will want retailers to provide an environment where shopping is an event experience in its own right. This will translate into interactive, highly engaging online and real-world
retail environments where augmented reality (AR) plays a key role. The provision of distinct and tangible shopping experiences, online and real-world, will become a key means to enhance and differentiate a brand’s value proposition.
Online retailers are also establishing a physical presence to support the showcasing of the brand and private-label products. It can also help them to provide the shopping experiences that many consumers crave, as discussed earlier Amazon is a high profile example here. The online giant has opened its first physical Amazon Books in Seattle in late 2015, following experiments with pop-up stores. A second is planned at a mall near the University of California, San Diego. The Seattle store sells books but also showcases Amazon’s range of devices (e.g. Kindle Fire tablets, e-books) along with the Echo voice-controlled speaker. We expect Amazon to open more real world stores that will increasingly feature other “star” products besides books. In January 2016 Alibaba, China’s leading exommerce player, opened its first physical store in Tianjin (a Free Trade Zone), North China to boost sales of its imported products.