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Australian Retail Technology Report, 2016–2021

Australian Retail Technology Report, 2016–2021

Retail technology investment in Australia is projected to record a CAGR of 28.8% from 2016-2021 largely driven by evolving consumer requirements and intensifying retail competition from international entrants and new business models. These factors are set to raise standards across both the front and back ends of retail technology. Current investments mostly involve forward-thinking retailers looking to capitalise on technologies such as BDA, cloud computing, and AI. Spending is expected to reach 4.58 billion by 2021 Retail technology innovation and implementation in Australia lags behind that of other developed countries. While investments in retail technology in Australia are significantly lower than the United States, spending is likely to increase, particularly in the areas of digital signage, point-of-sale systems, big data analytics (BDA), cloud computing, and artificial intelligence (AI). The change is being driven by multiple factors, including the entrance of international participants such as Amazon, and evolving consumer spending behaviour. The online retail space continues to gain popularity, accounting for A$21.65 billion in revenue in 2016 with 10.4% year-over-year (y-o-y) 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. Apart from compatibility issues, the systems are less agile and responsive compared to cloud-based competitors. The retail industry could see extensive testing of retail technology in the next 12-18 months, demonstrating the value proposition and retail application of these technologies. Led by larger retailers, the industry is heading towards omnichannel adoption to better interact with digitally-empowered customers in a seamless and personalised manner. In the next 5-7 years, Frost & Sullivan predicts the emergence of start-ups in the areas of robotics, AI, and AR, providing valuable tailored solutions for the retail sector. Amazon’s entrance is set to have a massive impact on retailers in the market, prompting them to rethink their retail strategy. 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.

  • Executive Summary
    • Key Findings
    • Retail Technology Investment
      • Table Retail Technology Investment
  • Retail Technology Overview and Segment Definitions
    • Market Study Definition & Scope
    • Scope and Purpose of Report
    • Scope of Technology Coverage
    • Understanding Store-based Retail Components
    • Understanding Non-Store-based Retail Components
    • Understanding Retail Technologies
  • Market Drivers and Restraints for Retail Technology
    • Market Drivers
    • Drivers Explained
    • Market Restraints
    • Restraints Explained
  • Australian Retail Sector
    • Snapshot of the Australian Retail Sector
    • Australian Retail Environment
    • Australian Retail Environment—Arrival of Amazon
    • Australian Retail Environment—Characteristics
    • Introduction of Retail Technology in Australia
    • International Retail Entrants in Australia
    • Case Study—Apple Store Experience
      • Table Number of Apple Stores, Global, 2005–2015
    • International Retail Entrants in Australia
    • Retail Sector in Australia
    • Retail Landscape in Australia
  • Australian Retail Market Trends
    • 8 Key Retail Trends in Australia
  • Retail Technologies in Australia— Mobile Point-of-Sale
    • mPOS
    • Case Study—Alipay
    • Case Study—7-Eleven-Plexure
    • mPOS
  • Radio-Frequency Identification (RFID)
    • Radio-Frequency Identification
    • Case Study—Coles Supermarkets
  • Beacon Technology
    • Beacon Technology
    • Case Study—Scentre Group-Westfield
    • Beacon Technology
  • Digital Signage
    • Digital Signage in Retail
    • Case Study—Hive by Laminex
  • Big Data Analytics (BDA)
    • Big Data Analytics
    • Case Study—Woolworths
  • Artificial Intelligence
  • Robotics
    • Case Study—Commonwealth Bank-Stockland
    • Case Study—Lakeba Shelfie
    • The Future of Robotics
  • Augmented Reality and Virtual Reality
    • Case Study—AR Uses in Australian Retail
  • Key Retail Technology Participants in the Market
    • Retail Technology Ecosystem—Profile of Participants
    • Ecosystem of Retail Technology Participants
    • Retail Technology—Competitive Landscape
  • Growth Opportunities and Companies to Action
    • Growth Opportunity
    • Strategic Imperatives for Success and Growth
  • The Last Word
    • Future Retail Ecosystem—IoT in Australian Retail
    • What's Next for Australia's Retail Market?
    • Retail Technology Market Outlook

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