Global Retail Omni-Channel Commerce Platform Market to Reach $11.1 Billion by 2024

Retail omni-channel commerce platform can be described as a cross-channel business model used by retailers to enhance overall shopping experience of customers. Involving a multi-channel strategy that takes into consideration the various platforms and devices customers will use for interacting with the company, omnichannel sales approach is designed to provide an integrated shopping experience to customers using the information drawn from various channels. Retail Omni-Channel Commerce Platform is a software tool designed to support omnichannel retail strategies of brands and retailers. Key benefits with the omnichannel commerce platform include end-to-end integration of online/offline stores, dynamic order allocation, integrated omni-channel order management, centralised inventory management, simplified logistics, and convenient return management. Further, the platform comes with seamless integration with ERPs and can generate data periodically, supporting analytical approach. Effective internal organization, adequate customer analytics capabilities, data quality, and ability to identify customers across shopping trips are some of the focus areas that potentially improve omni-channel retail platforms. Like other software tools, omnichannel platform is made available in on-premise as well as cloud-based SaaS versions. Omni-Channel Commerce Platform is of immense use in FMCG, Apparel & Footwear, Consumer Electronics, Hospitality, and several other retail sectors.

Amid the COVID-19 crisis, the global market for Retail Omni-Channel Commerce Platform is projected to reach US$11.1 Billion by 2024, registering a compounded annual growth rate (CAGR) of 17.4% over the analysis period. The United States represents the largest regional market for Retail Omni-Channel Commerce Platform, accounting for an estimated 31.0% share of the global total. The market is projected to reach US$3.6 Billion by the close of the analysis period.

The growing customer demand for consistent shopping experience through online and offline retail channels constitutes a major factor fueling growth in the ominchannel commerce market. The platform also increases operational efficiency of retailers besides enabling them to gain better information about customer`s purchasing patterns. The omnichannel retail platforms have the potential to enable retailers to boost customer traffic and sales and enable integration of digital strategies. Omnichannel retail strategy additionally helps enhance shopping experience and drive sales by offering more channels for customers to make purchases from, i.e. through website, mobile and physical stores. Omnichannel customers are known to spend around 20-30% more when compared to multi-channel or single-channel customers. Further, customers are known to be more willing to visit physical stores, after discovering retail information about the stores online. Omnichannel retail also assists consumers to commence purchases on one channel and complete the same on others. The platform provides customers the ability to gain from constant information availability through various channels and also enables in creating a stronger bond between customers and retailers. Customers are also becoming more amenable to interacting with digital touchpoints of retailers, for instance through mobile apps. In short, the ability to tap opportunities from multiple channels allows omnichannel retail to increase traffic to physical stores besides increasing revenues from online platforms enables retailers to increase overall revenues.

Given the significant advantages offered by omnichannel strategy, a growing number of retailers are looking to create presence in multiple channels as against restricting themselves to online or store formats. The promise of integrated shopping experience for customers through strong physical stores and through multiple online channels, such as desktop or mobile and social media or online websites or digital touchpoints such as kiosks or smart shelves continues to drive retailers towards omnichannel platforms. The recent years have witnessed the disruption in the retail industry through the advent of a number of digital touchpoints, such as smart shelf technologies, self-serve tablets and interactive kiosks. The rising significance of these technologies can be seen by the fact that about 45-50% of retail sales in the US are known to be influenced by digital touchpoints. Consequently, in a retail industry impacted by increasing competition, advent of new technologies and changing consumer behavior, omnichannel retail is emerging as an effective solution for the industry to adapt and respond to the challenges.

One of the major factors influencing growth in the global retail omni-channel commerce platform market is the rapid growth of e-commerce sales across the world. In both developed and developing economies, e-commerce retail is witnessing exponential growth and emerging as the preferred sales channel among customers. Growing penetration of low cost Internet services and rapid increase in sales and use of mobile devices specifically smartphones are major contributors to the growing retail sales through online channels. Since e-Commerce is regarded as one of the key channels in the omnichannel commerce ecosystem, the rapid growth of e-commerce industry has huge positive implications for the retail omni-channel commerce platform market. Several leading retailers are adopting retail ominchannel strategy to tap the e-commerce opportunity and also drive traffic and sales in physical stores. The need to offer seamless shopping experience to customers remains the major factor fueling adoption of omnichannel commerce platform among retailers. The potential of ominichannel strategy is also being realized by small and mid-sized retailers, who are investing in the platform to survive the intensely competitive conditions.