Asia Pacific Retail Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia Pacific Retail Analytics market is expected to grow from 2021 to 2026 with a CAGR of 23%. The retail industry collects vast amounts of information about sales and user shopping history. The amount of information collected continues to proliferate, mainly due to online businesses' ease, availability, and traction.

Key Highlights

• As information is collected, stored, prepared, and enhanced, analytics can help retailers recognize user behavior, discover user shopping trends and patterns, improve customer service quality, and improve customer retention and satisfaction.
• In addition, rising income levels, rising government spending on big data and analytics, and rising demand for automated retail-based services are expected to stimulate the retail analytics market in the region during the forecast period. Other factors driving the market growth are the increasing adoption of IoT devices and the growing user base of smartphones and the Internet.
• The retail industry collects vast amounts of information about sales and user shopping history. The amount of information collected continues to proliferate, mainly due to online businesses' ease, availability, and traction. As information is collected, stored, prepared, and enhanced, analytics can help retailers recognize user behavior, discover user shopping trends and patterns, improve customer service quality, and improve customer retention and satisfaction.
• As most of the companies started remote operations to avoid exposing their employees to the COVID-19, the retail sales dropped, indicating a blockage of sales information to retailers' data repositories. Since the objectives of a specific automated system or predictive model remain the same, the input data and the users' issues have led the companies (vendors) to re-evaluate how outputs could now be interpreted and relied upon.

Key Market Trends

Data analytics generation during COVID-19 Pandemic

• Companies are setting up analytics within a few weeks to prepare for the future, informing them of their business response to COVID-19 challenges. Organizations need to leverage robust data and analytics capabilities to anticipate and act on fluctuating baselines during and after COVID-19.
• The retail sector is becoming more competitive, and it is essential to optimize business processes while meeting customer expectations. Data analysis is implemented at every stage.
• It can also be used to optimize offer and product placement through customer heat mapping. In addition, the increasing adoption of cloud services in the retail industry will create opportunities in the European retail analytics market shortly.
• For example, China's nationwide efforts against the ongoing novel coronavirus outbreak have boosted the already rapid development of the "home economy," driving China's world-leading online retail services to a higher level.

Reopening of Malls post COVID-19 drives the market

• E-commerce prevented the pandemic from annihilating many businesses, but the same was not true for shopping malls. Home to one of the world's largest shopping malls, Asia Pacific was severely affected by travel bans and blockages that prevented consumers from going to the mall. Malls in Indonesia and Thailand have followed a similar fate but are reopening after the government has begun to relax movement restrictions. Compared to other regions, most APAC consumers still prefer to spend time in the mall, trying out new products and physically buying products.
• Compared to e-commerce, where different data types are available, offline retailers such as malls do not have access to such data, which is the key to conversion. For example, Singapore retail technology company Amazing gives malls access to large amounts of mall management data. This includes consumer buying behavior, sales, and performance, allowing retailers to track how the customer's shop and why.
• With projects live in malls in Singapore, Malaysia, and the Philippines, retail tech companies like Aimazing processes three million data points a month from 1,000+ devices in the region, and there is a pipeline of 10,000 devices to be implemented in the next 12 months.
• Increased vaccination rates in the region and the government's relaxation of mobility restrictions will allow the mall to operate more smoothly. Retail analytics has been the best solution, especially in helping both customers and tenants continue to be satisfied.

Competitive Landscape

Retail analytics is the process of providing analytics tools in the retail industry to provide analytics on business trends, patterns, and performance. Retail business analytics enable retailers to leverage data-driven insights from their businesses and customers to improve the consumer experience, increase sales, and optimize business operations. Retail analysis is a tool for providing critical analytical data for making marketing and procurement decisions such as inventory levels, consumer demand, supply chain movements, and sales. The market is segmented as follows:

• October 2020 - HCL Technologies Limited worked with IBM Corporation to help customers accelerate digital transformation in financial services, telecommunications, life sciences and healthcare, energy and utilities, and retail. Under this collaboration, HCL will offer a wide range of services and solutions by leveraging IBM Cloud, data and analytics, artificial intelligence, and machine learning capabilities. This allowed the company to strengthen its products and grow in the market.
• Jan 2020 - IBM launched “Store in the Cloud,” a partner-driven effort from its Red Hat business. It is aligned to assist retailers in transforming businesses to serve the rapidly shifting way consumers shop.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support