The in-Store Analytics market is projected to record more than a 25% growth rate during the forecast period and is expected to reach US$ 5 Bn by 2031. In-store analytics is a process of analyzing and pulling meaningful insights from customers' behavioural data.
Analytics plays a very crucial role in every stage of retail business, from sales and marketing to inventory management and operations. To compete with online stores, retailers need as much information about their customers as they can get. In-store analytics can give detailed insights into the effectiveness of store displays, employee actions, and other factors that can be used to sway purchasing decisions.
What is Driving Demand for In-Store Analytics?
Over the past decade, the retail industry has changed significantly and keeps evolving further by adopting new cutting-edge technologies. Retailers are working harder to deliver a seamless shopping experience to their customers. Retailers endeavour to integrate innovative digital experiences to ensure a connected and engaging in-store experience.
Digital transformation in stores is achieved when retailers deliver tailored experiences to their customers with the help of multiple technologies like analyzing customer preferences, detecting customer location in-store, personalized promotions, and purchasing patterns. Store monitoring platform analyzes these patterns and generates meaningful insights and helps retailers to achieve sales, and revenue and increase store footfalls.
For instance, Mediamarkt opened its Digital Store in Barcelona, based on the interaction with its customers. It combines the digital experience in a physical store where customers select the product digitally and the store staff provides the support.
Moreover, Nike’s new flagship store in New York utilizes an app that creates digitally connected journeys for consumers to utilize mobile checkout, request try-on items throughout the store, or instantly shop in-store displays.
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Proliferation of IoT Sensors & RFID Tags for In-store Intelligence
Over the past few years, there has been a steady evolution in the types of sensors. Sensors are used to monitor weight, vibrations, temperature, and other factors. When it comes to retail, Radio-Frequency Identification (RFID) sensors play a very crucial role.
RFID tags contain a microchip, reader, and antenna to transmit and receive data. These tags contain electronically-stored information that provides detailed product information, marketing, and cross-selling suggestions to retailers along with insights regards to customer preferences and shopping patterns.
According to a report by McKinsey, inventory management problems account for some of the biggest expenditures and losses in retail stores. The report states that inventory distortion including overstock, stockouts, and shrinkage, cost retailers a yearly $1.1 trillion, worldwide. RFID tags allow stores to track their inventory.
These tags enable retailers to track items that are moved within stores and also enable retailers to track items throughout the entire supply chain, from the warehouse to the shelf in the store. Moreover, technologies like store shelf sensors, digital price tags, smart displays and high-resolution cameras also help retailers to further enhance the control of goods located at store shelves and in the back storage.
US Demand Outlook for In-Store Analytics
The U.S. is the most significant revenue contributor to the global in-store analytics market. The country is witnessing significant developments in the in-store analytics market. In the U.S., the high growth rate can be attributed to the increasing adoption of big data, the large base of in-store analytics vendors in the region, and the rising adoption of IoT devices.
Companies across the region are rapidly adopting the IoT for creating and developing a new array of products and services, which are prompting the development of new business models and creating new business opportunities. Businesses utilize the full potential of the connected device enablement by combining with rapidly advancing Artificial Intelligence (AI) technologies, which enables store retailers to respond intelligently and aid in making informed decisions.
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India Demand Outlook for In-Store Analytics
Indian retail industry is one of the fastest growing in the world. Retailers in India have started harnessing the power of the data that is generated from every single transaction that is placed at stores, e-commerce sites or mobile applications. And tend to create extremely personalized offers based on buying patterns.
From the perspective of the retail industry, India has ranked 73 in the United Nations Conference on Trade and Development's Business-to-Consumer (B2C) E-commerce Index 2019. Moreover, in terms of retail store availability, the country is among the highest in the world. The retail sector in India is experiencing exponential growth with retail development taking place not just in major cities and metros, but also in tier II and III cities.
Healthy economic growth, changing demographic profile, increasing disposable income, urbanization, and changing consumer tastes and preferences are some of the key factors driving the growth retail industry in India.
Who are the Key In-Store Analytics Vendors?
Some of the leading vendors offering In-Store analytics products include
RetailNext
Mindtree
Think inside
Happiest Minds
SAP
Capillary Technologies
Inpixon
Scanalytics
Retail Solutions
Dor Technologies, among others.
These vendors have adopted various key strategies, to increase their customer base locally and globally. The vendors are focusing on product innovation and strategic partnerships with the regional vendors to collaborate for offering advanced data connotation tools to effectively design AI/ML-based models.
The report is a compilation of first-hand information, qualitative and quantitative assessments by industry analysts, and inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
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