#100-Retail-Tech: How can Retailers create value through the Cloud?

The retail industry is going through Retail Apocalyspe

Retailers around the world are leveraging cloud to built future proof business models

1. E-commerce/D2C platforms: Retailers can use cloud-based e-commerce platforms to host their online stores and manage orders, payments, and shipping. According to a recent study, the global e-commerce market is expected to grow at a CAGR of 14% from 2020 to 2027, reaching USD 6.54 trillion by 2027.
2. Customer relationship management (CRM): Retailers can use cloud-based CRM solutions to track customer interactions, preferences, and purchase history. A report from Gartner estimates that the CRM software market will grow from USD 36.5 billion in 2020 to USD 44.2 billion in 2021, a 21% increase.
3. Inventory management: Retailers can use cloud-based inventory management systems to track stock levels, sales, and demand in real-time, enabling them to make informed purchasing decisions. According to a study by Forrester, cloud-based inventory management solutions can result in a 5–15% reduction in operational costs.
4. Marketing and advertising: Retailers can use cloud-based marketing and advertising tools to run targeted campaigns, analyze customer behavior, and measure marketing performance. According to a study by Advertiser Perceptions, cloud-based advertising is expected to reach USD 102 billion in spending by 2023, a 25% increase from 2019.
5. Supply chain management: Retailers can use cloud-based supply chain management solutions to manage their relationships with suppliers, track shipments, and ensure that products are delivered on time. A report by Global Market Insights projects that the cloud-based supply chain management market will grow at a CAGR of 22.5% from 2020 to 2026, reaching USD 17 billion by 2026.
6. Data analytics: Retailers can use cloud-based data analytics tools to gain insights into customer behavior, sales trends, and product performance, helping them to make informed business decisions. A report by IDC projects that the global market for cloud-based data analytics will grow at a CAGR of 15% from 2020 to 2023, reaching USD 80 billion by 2023.
7. Mobile applications: Retailers can use cloud-based mobile applications to enhance the customer experience and enable customers to shop on the go. According to a report by App Annie, the number of global mobile app downloads is expected to reach 258 billion in 2022, a 50% increase from 2017.
8. Point of Sale (POS) systems: Retailers can use cloud-based POS systems to process transactions, manage inventory, and track sales data. A report by Grand View Research projects that the global market for cloud-based POS systems will grow at a CAGR of 17.2% from 2020 to 2027, reaching USD 36.1 billion by 2027.
9. Human Resources Management: Retailers can use cloud-based HR management solutions to manage employee information, track time off requests, and run payroll. According to a report by Technavio, the global market for cloud-based HR management software is expected to grow at a CAGR of 11% from 2020 to 2023, reaching USD 9.45 billion by 2023.
10. Financial Management: Retailers can use cloud-based financial management systems to automate accounting processes, track expenses, and generate financial reports. A report by ResearchAndMarkets projects that the global market for cloud-based financial management software will grow at a CAGR of 11.5% from 2020 to 2025, reaching USD 20.1 billion by 2025.
11. Smart stores: Shoppers will always be looking for digital and o2o experiences during the shopping journey. Social experience and smart mirrors at retail stores can transform the way shopping is done.

According to a market research report by Technavio, the global smart retail market size is expected to reach USD 86.54 billion by 2023, growing at a CAGR of over 24% during the forecast period 2018–2023. This growth is driven by factors such as the increasing adoption of internet of things (IoT) technology in retail, the growing use of big data and analytics, and the increasing demand for enhanced customer experiences.

What does it mean for retailers in Southeast Asia?

• Growing e-commerce market: Southeast Asia’s e-commerce market is expected to grow significantly in the coming years, with a projected value of USD 238 billion by 2025. Retailers in the region are leveraging cloud technology to tap into this growing market.
• Rising mobile usage: Mobile usage is growing rapidly in Southeast Asia, with a large number of consumers using their smartphones to shop online. Retailers are using cloud-based mobile applications to reach this growing customer base and offer a seamless shopping experience.
• Increasing demand for fast and convenient delivery: Customers in Southeast Asia are increasingly demanding fast and convenient delivery options, such as same-day or next-day delivery. Retailers use cloud-based supply chain management solutions to manage their relationships with logistics providers and ensure they can meet customer expectations.
• Growing importance of data analytics: Data analytics is becoming increasingly important for retailers in Southeast Asia, as they seek to understand customer behavior and make informed business decisions. Retailers are using cloud-based data analytics tools to analyze large amounts of customer data and gain insights into customer behavior and sales trends.
• Favorable government policies: Governments in Southeast Asia are introducing favorable policies to encourage the adoption of cloud technology in the retail sector, such as tax incentives and subsidies for cloud-based solutions.