Over the pond in the US, a joint study from The National Center for the Middle Market and Magento Commerce discloses how digitisation is still the main focal point for companies.
The research, entitled “How Digital Are You?”, discovered that the middle market businesses who are recognised as the fastest-growing, reserve an increased emphasis on digitisation when compared to their similar-sized counterparts.
The retail and wholesale sector has experienced considerable alteration, which has been led by technology and a shift in what today’s consumer expectations are.
Following the study, here are a few unique insights for the retail industry that you could find useful from the Magento website:
- Mounting Pressure To Digitise Retail And Wholesale Trade
As brick-and-mortar stores struggle to keep up with strong online competition, the pressure to digitise has never been greater. While more than three quarters (78 percent) of retail and wholesale trade businesses say digitisation is important relative to other business priorities, retail lags behind other sectors in the priority it places on digitisation – who rate digitisation importance at 90 to 93 percent.
- Wake Up And Smell The Innovation
The study revealed that most retail digitisation investment goes towards back office operations (e.g. accounting) and facilitating current business (sales, customer service, marketing and logistics), with only 8 percent currently being invested in innovation projects which are important drivers of future growth and profitability for these companies. As the barriers to embracing next-era technologies dissipate, retailers will need to step up their game or get left behind.
- Bogged Down By Complexity And Slow Progress
Unsurprisingly, retailers and wholesalers were more likely to report a slower pace of digitisation than other industries (37 percent). Integrating with legacy systems combined with a failure to prioritise the implementation of digitisation efforts contribute to the problem. While the average payoff timeframe for digitisation projects is three years, many firms cited waiting up to five years or more to realise a return on their investment.
- New Year, New Me For Retail
The data revealed that the business services and technology sector had the greatest percentage (50 percent) of companies that consider themselves digitally advanced, while more than one third of retailers (35 percent) feel somewhat or very far behind on digital readiness, leading 29 percent to increase their investment in digitisation projects in the next 12 months.
Peter Sheldon, Chief Strategy Officer at Magento Commerce said: “Clearly, the study validates that improving digitisation is important to every industry in the digital age and that technology is rewriting the rules of the game. Businesses that are complacent or just average in this area will get left behind,”
Sheldon added: “To keep pace, companies must take necessary steps to address key digitisation barriers and move quickly to successfully adopt next-era digital tools. In doing so, these businesses secure not only continued relevance but also superior returns and growth.”
Media Lounge can help you deal with all the points raised if you are running a platform from our Magento specialists. Contact us for more details.