Retail is arising from the first chapter of digital transformation — upheavals of shopping behaviors, business models, and industry structure. New retail formats are emerging as customer behaviors change, and newcomers shake things up. Retail’s next regeneration is taking shape.
This year’s online retail holiday weekend proved, yet again, the power of discounts. Thanksgiving, Black Friday, and Cyber Monday all posted +28 percent or higher digital commerce spending versus 2017, according to comScore.
With retailers gearing up for Black Friday and Cyber Monday, IBM’s 2018 Holiday Retail Forecast (NYSE: IBM) indicates this shopping season could be a win in many segments, with a 4.83 percent year-over-year growth seen across the industry this year.
via IBM News Room
Even in areas where online shopping has not been well adopted to date, such as in fresh food shopping, the tides are shifting. For example, our Global E-Commerce Study found that 26% of consumers have bought fresh groceries online — that’s up by 15% from 2016.
Food and beverage retail is the next big sector that will feel the influence of digital shopping. We’re seeing the shift already: 23% of U.S. shoppers bought groceries online in 2016, an increase of 20% versus just two years prior—and adoption has only accelerated since then.
Retail eCommerce sales in China are expected to reach $1.13 trillion this year, a figure equal to 23.1% of total retail sales. Growth is expected to continue, with eCommerce accounting for 40.8% of all retail sales in China by 2021.
Most brands and marketers are aware that traditional marketing and engagement strategies will no longer generate the success they did just a few years ago. But many have yet to carve a path toward growth amid an increasingly digitized market where choice is overly abundant and every smartphone is a sales register.