Market Trends of Big Data Analytics in Retail Industry
This section covers the major market trends shaping the Retail Big Data Analytics Market according to our research experts:
Merchandising and Supply Chain Analytics Segment Expected to Hold Significant Share
- E-commerce has impacted traditional brick-and-mortar retailers, reducing their significance and marking the data-driven revolution in the retail sector. An efficient supply chain, the optimized movement of goods from supplier to warehouse to store to the customer, is critical to every business. Therefore, big data analytics is at the core of revolutionizing the retail supply chain, i.e., tracking and tracing product flow and stock levels in real-time, leveraging customer data to predict buying patterns, and even using robots to fulfill orders in vast automated warehouses tirelessly.
- Retailers must stay proactive and quickly fulfill customer needs as the retail industry continues to evolve with the integration of merchandising analytics and digital solutions. In the United Kingdom, the supply chain Big Data analytics for retail is expected to grow significantly over the forecast period, following the manufacturing and energy sector. It is further expected that predictive analytics and machine learning AI will revolutionize the retail supply chain.
- Leveraging advanced merchandising analytics is proven to help retailers overcome the challenges to thrive in an omnichannel retail world. According to the survey conducted by MIT Technology Review Insights for Big Data Analytics using cases in the consumer goods and retail industry worldwide predicts that 48 percent of respondents from the consumer goods and retail industry state that deployment of artificial intelligence can help improve customer care, followed by Quality control (47%), Inventory Management(47%), personalization of products, pricing, and fraud detection.
- As the global economy becomes interconnected and complex, companies find it challenging to meet customer expectations. They must make supply chain decisions faster, more decisive, and more accurate and can implement those decisions rapidly and transparently. Integrated demand planning is necessary to remain competitive in today's marketplace. Further, to achieve OTIF (On-Time-In-Full), a company must have end-to-end supply chain visibility and be able to balance demand and supply in real-time to make the right decisions quickly and effectively. Improving customer satisfaction, optimizing inventory levels and distribution networks, and achieving a faster time to market for sales maximization prove the need for big data Analytics in this sector.
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North America Region Expected to Hold the Largest Share
- Big data analytics in retail helps companies to generate customer recommendations based on their purchase history. It results in an improved ability to offer customized shopping experiences and enhanced customer service. These data sets are available in massive volumes and aid in forecasting trends and making strategic decisions guided by data. The growth of North America's big data analytics in the retail market is driven by the rising demand for retail analytics tools and the usage of the IoT in retail processes, enhancing the productivity and efficiency of the retail industry.
- The region's massive retail industry is experiencing growth in sales. In the United States, according to the National Retail Federation (NRF), retail sales are expected in between 6% to 8% to more than USD 4.44 trillion in the last year, citing high consumer confidence, low unemployment, and rising wages and clear signs of a strong and resilient economy.
- Besides, North America is among the leading innovators and pioneers, in terms of the adoption, of Big Data analytics. The region boasts a strong foothold of Big Data analytics vendors, which further contributes to the market's growth. Some include IBM Corporation, SAS Institute Inc., Alteryx Inc., and Microstrategy Incorporated. Big data analytics hardware, software, and services need more significant expenditures due to the rise in data production and retail consumption with corresponding sales increases.
- The increasing adoption of industry 4.0 across the retail sector is one of the primary aspects encouraging market growth. In retail 4.0, several operations and processes in the retail industry, like inventory management, customer service, customer accounts, supply chain management, and merchandising management activities, became digitized and automated. It is further expected to bolster the growth of North America's big data analytics in the retail market during the forecast period.
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