A Quick Survey of the Latest Trends in the Retail Analytics Industry and its Crucial Growth Drivers

Today, technology scientists, engineers, and geopolitical experts all agree on the idea that “data is the new oil”.  Just like oil ushered in a new era of industrialization, data has become the backbone of the ongoing digital revolution. Data analytics has helped businesses to proliferate into regions which were hitherto untapped. Retail businesses have been one of the biggest benefactors of data analytics, so much so that a dedicated segment of data analytics called retail analytics has emerged in the last few years.

Latest trends in the retail analytics industry

Retail analytics basically refers to collection, analyzing, storing, and managing customer data by retail businesses with the main aim of business expansion and profit maximization. The data which is targeted by retail businesses includes information on customer spending priorities, behavioral patterns, and inventory levels in the store. Hence, widening the scope of data collection and increasing the pace of analyzing the collected data is the main aim of retail businesses. Naturally, the most lucrative trend in retail analytics is the adoption of Artificial Intelligence (AI). Retail analytics, powered by AI, can provide a hyper-personalized shopping experience to the customer, thus increasing his/her engagement with the business.

Advanced data analytics can help the business in predicting the demand and spending pattern of the customer and thus, guide the business to make better decisions regarding product offerings, marketing strategy, and customer retention policies. One important advantage of integrating AI with retail analytics is that it helps the business to design a dynamic pricing model. This, it achieves by reducing operational costs, cutting labor costs, simplifying procurement methodologies, and optimizing inventory planning. Businesses with the help of retail analytics and AI can thus ensure customer satisfaction and develop an influential brand.

Growth drivers of the market

According to a report published by Allied Market Research, the retail analytics market is set to reach $58.4 billion by 2032 and rise at a CAGR of 22.8%. One major factor pushing the growth rate of this market is the increasing expanse of the e-commerce industry. With growing penetration of internet across the globe, many retail businesses have shifted their operations to online platforms which increases the necessity for retail analytics. Additionally, rising deployment of cloud technology for improving the scalability and flexibility of retail businesses has further contributed to the growth of this market.

The presence of companies like Teradata Corporation, Microsoft Corporation, Oracle Corporation, and HCL Technologies Limited has a big role to play in the expansion of this industry. Moreover, new entrants in the industry are entering into strategic alliances to compete with the big corporations. For example, in April 2021, EDITED, a retail market intelligence company, announced the acquisition of DynamicAction, a retail analytics company. These strategic alliances are projected to open up new investment opportunities in the industry.

Thus, the data analytics industry in general and the retail analytics market in particular is set to witness huge growth in the coming period due to rising adoption of Artificial intelligence. Increasing internet penetration, growing e-commerce industry, and strategic alliances among leading companies will further propel the growth rate higher.

Related Post