Retail Analytics Services Market Analysis
Spend growth in this market has the potential to touch a value of over USD 4 billion with spend momentum accelerate at a CAGR of more than 13% between 2019-2024. Mobile apps and websites are becoming integral parts of consumers' purchasing behavior. Most of the consumers have been observed to conduct preliminary online search on retail store prior to visiting the physical store and competing their purchase. This is creating ample growth opportunities for retail analytics service providers. They utilize the user data collected from the mobile and other online apps to conduct various functions such as demand forecasting of products, consumer basket analysis, competition analysis, among others. Such functionalities are driving spend growth in the global retail analytics services market.
Top Spending Regions in the Retail Analytics Services Market
North America will dominate the global retail analytics services market owing to the increasing demand from the major retail chains. Europe will take the second lead in this market because of the concentration of several large retail chains.
North America
The need to optimize supply chains and increase operational efficiency is driving the demand of retail analytics service providers in North America. This region has a high variation in the population demographics which is increasing buyers' requirement for the analysis of consumer behavior to increase their overall retail sales. This is driving spend growth in the retail analytics services market in North America during the forecast period.
Europe
The presence of several large retail chains is creating an exponential demand for retail analytics that has propelled Europe to the second-largest position in the global market. Most of the retail stores are adopting IoT and machine learning which is resulting in the integration of data from multiple channels, such as brick and mortar, mobile, and web apps, through retail analytics. A detailed analysis of retail-related data is helping businesses across Europe to reduce their procurement costs and improve the sourcing of their products with a target to maximize their profitability.
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What are the Key Price Trends in this Market?
- Retail analytics service providers are increasing their spend on R&D activities to enhance their products by incorporating additional features, improving functionalities, and compatibility features. This is exerting an inflationary impact on the cost structure of suppliers over the forecast period.
- The technical nature of this product makes it imperative for service providers to hire and retain software engineers with higher salaries and financial benefits. The increase in the living standards and the worldwide inflation will increase employee costs incurred by the service providers. According to the retail analytics services price trends, this will have an inflationary impact on the overall cost structure in the market.
- Marketing cost is expected to increase owing to the high market competition estimated during the forecast period. Retail analytics service providers are expected to increase their marketing and promotional activities to improve their sales and profitability.
Download the free sample of this report to know what the key retail analytics procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Retail Analytics Services Market Report
- Global and regional spend potential for the retail analytics services market for the period of 2019-2024
- Supplier relationship management practices in the retail analytics services market
- Supplier margins and selection criteria in the retail analytics services market
- Top retail analytics service providers and their cost structures
- Top retail analytics service providers in the US and their cost structures
- Retail analytics services market spend analysis in the US
- Retail analytics services price trends, and forecasts
- Cost drivers influencing the retail analytics services price
Insights into Retail Analytics Services Supply Market
- The global retail analytics market is fragmented with the presence of multiple regional and global service providers offering similar retail analytics solutions to end-users. However, global service providers operate on high profit margins owing to their diversified portfolio and the ability to offer customized solutions to buyers.
- Buyers advised to adopt the FTE-based pricing model with service providers that will enable the former to reduce managerial complexities as prices are fixed at the beginning of the contract. Buyers will generally incur one-time fees and minimal recurring cost for a certain retail analytics request and maintenance.
- Retail analytics service providers are engaging in horizontal integration strategies by acquiring and collaborating with other regional and global service providers to get access to the latest technologies, improve their capabilities, and expand their service portfolio.
Insights into Some of the Leading Retail Analytics Service Providers
This retail analytics services market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top retail analytics suppliers. The top retail analytics service providers highlighted in this report include:
- International Business Machines Corp.
- Deloitte Touche Tohmatsu Ltd.
- Accenture Plc
- Oracle Corp.
- Salesforce.com Inc.
- Cognizant Technology Solutions Corp.
Criteria to select suppliers in this dynamic retail analytics services market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
