Digital Transformation in Retail: The Facts
DIGITAL TRANSFORMATION IN RETAIL: THE FACTS
With higher demands in the consumer industry as well as greater technological advancements, going digital has never been more beneficial. In fact, leaders in business industries around the world are addressing this shift towards the digital with exceedingly desirable results. What is it, exactly, that makes digital transformation so sought-after in a business, and how are CEOs prioritising it?
Digital transformation is the key to success
Retailers that are creating a seamless transition between their physical and digital stores are experiencing higher levels of revenue and customer sales. An online digital presence in turn promotes higher exposure and target reach, which is boosted even further with effective digital marketing strategies. By incorporating the digital aspect into their business practice, retailers and other companies are making their products more accessible to their customers. Digital change also offers opportunities for easier and more efficient management systems for businesses as well.
In a survey by PwC commissioned by JDA, over 350 retail and consumer goods CEOs from around the world share their views on the key trends that are shaping their business. The survey, conducted in late 2016, engaged with retail executives in both mature and emerging markets. 32% of the respondents were from top 250 retailers (with over US $5 billion revenue), with the other 53% from top 1000 retailers, from a diverse range of sectors including hard goods, soft lines, grocery, ecommerce, CPG verticals, and related retail and consumer goods sectors. Here’s how they responded about their digital transformation views.
- Investment priorities
Where a business chooses to invest their capital is a good indication of their priorities and plans moving forward. The survey found that the executives’ highest investment priorities lay in digital transformation, with customer experience being the main driving factor. Although a surprising 52% of respondents have not yet started implementing a digital transformation strategy, 38% of the 52% respondents indicated that they have developed a plan to increase their investment in digital transformation in the upcoming year. The reasons for so many businesses not yet investing in digital transformation are speculated to be cost-related. The remaining 49% of respondents had successfully developed and implemented a digital transformation plan.
Profitability is an effective way to measure the performance and success of digital transformation. An impressive 62% of CEOs stated in the survey that their online business is making a profit, which is a 7% increase from last year. This is despite the increase in costs due to a digital transformation, indicating that an investment is highly likely to pay off.
Executives are expressing confidence in their business’s future growth, with digital transformation increasing both their revenue and profit growth.
To find out how digital transformation can benefit your business, contact the experts at Headbyte.