IDC: Ten predictions for retail tech and business
Disruptive and innovative technologies will continue to drive digital transformation of the retail industry at a rapid pace for the next five years.
That’s according to a report from IDC, “IDC FutureScape: Worldwide Retail 2010 Predictions.” Technology-driven transformation is altering business and society and the speed of change, delivery, and operations is separating retail thrivers and survivors, the report said,
“The 2020 worldwide retail industry predictions offer a glimpse into the future of the retail industry as it is being transformed in the new digital era," said Leslie Hand, VO, IDC Retail Insights. "The future belongs to visionary leaders and forward-thinking organizations that are able to break the shackles of legacy systems and accelerate mastering digital-first strategies. The thrivers will be those that champion data-driven, experiential, and personalized approaches to experiential retail business and IT.”
IDC’s worldwide retail industry 2020 predictions are below.
1. By 2022, 20% of retailers will embrace a complete cultural shift where leadership champions disruptive innovation, driving investment that launches the next stage of growth, while 80% see deceleration.
2. By 2025, 25% of the retail companies with an IDC Digital Index of less than 100 in 2020 will close all stores.
3. By 2024, 60% of retailers will implement AI-enabled software solutions; however, only 20% of those will unlock true differentiation-focused use cases, broadening the gap in the new intelligence divide.
4. By 2022, 35% of retailers will have announced partnerships or mash-ups that cross shifting retail ecosystems to offer new services that converge the in-store and online customer experiences.
5. By 2023, 65% of top global 250 retailers will have a digital workforce lifelong learning strategy in place, enabling up to 20% increase in employee retention.
6. By 2024, empathy among brands and for customers will drive organizations to adopt shared process intelligence across the ecosystem that drives 20% collective growth in customer lifetime value.
7. By 2021, more than 50% of retailers, globally, will have launched at least one coinnovation program, enabling 15% of retailers to sell their own Tech IP as an asset.
8. By 2021, 60% of major retailers will use consent-based approach to maximize the value of contextualized customer journey personalization and automated conversations, increasing loyalty up to four times.
9. By 2021, 80% of retailers will have implemented a retail commerce platform, with 35% of them achieving more than 10% improvement in customer experience metrics, such as CSAT and NPS.
10. By 2023, the 50% of retailers that have linked self-service technology strategy to digital transformation will see a 35% increase in net margin, 10% increase in customer loyalty, and 5% decrease in staff turnover.