The year 2020 has been a year of learning for all industries. The unprecedented scale and reach of the pandemic encompassing the world impacted every region and industry. Retail in the United States is no different. Sales dropped from $5.47 trillion in 2019 to $4.89 trillion in 2020 due to the virus and restrictions to curb the pandemic. The prevailing condition demands that the retail industry, like every other industry, initiate or increase its speed of adopting technologies that enable businesses to face the new normal. Cloud plays an essential role in this transformational journey. A major driver set to act as the backbone, enabling the adoption of technologies and delivering desired business results. The global retail cloud market that stood at $11.89 billion will touch 39.63 billion by 2026, emphasizing cloud as a significant driving force that will propel the retail sector in the future.
Here are some of the factors that make the cloud a lucrative proposition for retailers.
Many brick and mortar stores or offline stores still depend on legacy systems. Dependence on legacy impacts the integration of various business operations such as inventory, shipping, development, and POS. Migrating to the cloud enables retailers to get the different business operations in sync and get a consolidated view of all departments and locations in real-time. A real-time view of the inventory, shipment, and other business processes enables an in-sync seamless functioning across the organization.
Superior Customer Experience (CX) and convenience
The experience-driven economy has furthered the emphasis on personalization. Not only is there a demand for superior, seamless experiences, but users also want these experiences to be personalized. 80% of consumers are more likely to buy from a brand that provides personalized experiences. Retailers are well placed to provide to their customers what they demand. With a gold mine of customer and sales data, retailers can utilize cloud-enabled computing capabilities to analyze data. Cloud allows retailers to get a unified view of data from multiple sources, enabling the retailers to make data-driven, timely decisions. Moving to the cloud also boosts the performance of web applications ensuring that users do not abandon the site due to slow performance and a poor experience.
Many reasons impact the sale of products. It could be the launch of a new product from a renowned brand or end of season sale that causes a spike in sales. The retail industry is also impacted by peak demand during particular seasons, such as the holiday season. As per Adobe Analytics, online retail sales grew 32.2% from 2019 to touch $188.2 billion during the holiday season. Similarly, the sales could also dip owing to low demand and other factors. Cloud helps retailers to prepare for such eventuality. Cloud-enabled systems can be programmed for scalability, meaning they can be automated to meet the requirements in case of a surge and limit the use of resources in case of a dip. Retailers can also save big on infrastructure investments and costs by using many cloud service providers’ pay per use model.
Retailers are looking for technologies that can immediately impact their business. They are either already experimenting or looking to build solutions that enhance customer experience and drive growth. Cloud works as the perfect catalyst in this transformational journey for retailers as it powers agility and provides the platform to build modern apps faster and at scale, anytime-anywhere.
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