The world is going digital and the business world is struggling to keep pace with the breakneck pace of innovations. According to the results of a joint study from The National Center for the Middle Market and Magento Commerce, digitization has become a significant concern for businesses across the world. The research, “How Digital Are You?” figured out that the fastest growing mid market companies place a greater emphasis on digitization than their similar-sized counterparts. Data from the studies also points out that the middle market firms have switched their focus towards digital investments.
Retails and wholesale sector, unique among the participating industries has experienced a broad transformation. Advancements in technology and dynamic consumer behavior have affected the industry in a greater manner. Let us check out some unique insights drawn by the NRF for the retail industry.
Mounting pressure to digitize business operations
eCommerce revolution has hit the retail and wholesale sector in the most brutal way. Brick-and-mortar stores are struggling to keep up with the highly aggressive online markets. Even though, only 78 percent of retail and wholesale trade businesses mark digitization as an important factor to other business priorities. However, other business sectors rate digitization importance at 90 to 93 percent.
Bogged down by complexity and slow progress
Retail and wholesale traders report only 37 percent of digitization, which is far less compared to other industry. Failure in prioritizing the digitization, slacked by the complexity and slower payoff time frame can be considered as the main reasons.
A major share of the retail digitization investment goes towards back office operations and other business operations. The study revealed that the retailers spend only eight percent of their investment in innovation projects. However, embracing new generation ecommerce technologies is crucial for attaining business growth and reaping profits. So, retailers and wholesalers need to step abreast of the new trends and technologies.
New Year, New Goals for Retailers
According to the study data, business services and technology sector had the greatest percentage (50 percent) of companies that consider themselves digitally advanced. At the same time, 35 percent of retailers feel they remain far behind in the digital revolution. And that is why 29 percent of them have decided to increase their digitization investment and efforts in the coming year.
In the light of new research findings, Chief Strategy Officer of Magento Commerce, Peter Sheldon said, “the study validates that improving digitization 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. To keep pace, companies must take necessary steps to address key digitization barriers and move quickly to successfully adopt the next-era digital tools. In doing so, these businesses secure not only continued relevance, but also superior returns and growth.”