Retailers ramp up tech spending Down Under
Technology investment by Australian retailers is set to record a CAGR of 28.8% from 2016-2021, according to a new Research and Markets report. This will be largely driven by evolving consumer requirements and intensifying competition from international entrants like Amazon and new business models. Spending is expected to reach A$4.58 billion by 2021, with a particular focus on the areas of digital signage, Point of Sale systems, Big Data analytics, cloud computing and artificial intelligence (AI).
The online retail space, meanwhile, continues to gain popularity, accounting for A$21.65 billion in revenue in 2016 with 10.4% YOY growth. The proliferation of mobile and tablet devices in Australia as well as software development to complement online transactions are key drivers. While most consumers continue to make purchases at physical stores, the online channel allows them to instantly cross-check products and prices among multiple retailers. Existing investments in legacy systems are likely to be the biggest hurdle to retail technology adoption.
According to Research and Markets: “It is imperative for retailers to become less conservative and continually adapt to remain relevant in Australia’s future retail landscape. Long-established retail players are under increasing pressure from more technologically-integrated competitors to improve their customer offerings and not lose out on market share. New entrants to the market, supported by cloud-based CRM and mPOS systems, are gaining increasing acceptance from domestic consumers. Large retailers are reviewing their legacy systems to integrate retail technology and provide more value to customers.”