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IDC FutureScape: Worldwide Retail 2020 Predictions

IDC FutureScape: Worldwide Retail 2020 Predictions

This IDC study explores how different drivers are collectively impacting technology in the retail industry and offers guidance on actions to consider. Retail organizations are hard pressed in the new digital era to respond to a wide range of political, economic, social, cultural, technological, legal, and experiential forces. These forces alongside ever-expanding data assets, increasing market pressures, sweeping regulations, and changes in the global populace and in consumer expectations for experiential retail call for the industry to act in innovative ways that meet rising expectations, improve outcomes, and deliver value."The 2020 worldwide retail industry predictions offer a glimpse into the future of the retail industry as it is being transformed in the new digital era," says Leslie Hand, vice president, IDC Retail Insights. "The future belongs to visionary leaders and forward-thinking organizations that are able to break the shackles of legacy systems and accelerate mastering digital-first strategies. The thrivers will be those that champion data-driven, experiential, and personalized approaches to experiential retail business and IT. The strongest businesses will be truly customer driven, with big shifts in internal culture and in collaborative/innovative partner relationships."

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2022, 20% of Retailers Will Embrace a Complete Cultural Shift Where Leadership Champions Disruptive Innovation, Driving Investment That Launches the Next Stage of Growth, While 80% See Deceleration
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2025, 25% of the Retail Companies with an IDC Digital Index of Less than 100 in 2020 Will Close All Stores
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2024, 60% of Retailers Will Implement AI-Enabled Software Solutions; However, Only 20% of Those Will Unlock True Differentiation-Focused Use Cases, Broadening the Gap in the New Intelligence Divide
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2022, 35% of Retailers Will Have Announced Partnerships or Mash-Ups That Cross Shifting Retail Ecosystems to Offer New Services That Converge the In-Store and Online Customer Experiences
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2023, 65% of Top Global 250 Retailers Will Have a Digital Workforce Lifelong Learning Strategy in Place, Enabling up to 20% Increase in Employee Retention
Associated Drivers
IT Impact
Guidance
Prediction 6: By 2024, Empathy Among Brands and for Customers Will Drive Organizations to Adopt Shared Process Intelligence Across the Ecosystem That Drives 20% Collective Growth in Customer Lifetime Value
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2021, More than 50% of Retailers, Globally, Will Have Launched at Least One Co-Innovation Program, Enabling 15% of Retailers to Sell Their Own Tech IP as an Asset
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2021, 60% of Major Retailers Will Use Consent-Based Approach to Maximize the Value of Contextualized Customer Journey Personalization and Automated Conversations, Increasing Loyalty up to Four Times
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2021, 80% of Retailers Will Have Implemented a Retail Commerce Platform, with 35% of Them Achieving More than 10% Improvement in Customer Experience Metrics, Such as CSAT and NPS
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2023, the 50% of Retailers That Have Linked Self-Service Technology Strategy to DX Will See a 35% Increase in Net Margin, 10% Increase in Customer Loyalty, and 5% Decrease in Staff Turnover
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Accelerated Disruption: Navigating Business Challenges as Volatility Intensifies
The Platform Economy: Competing at Hyperscale
Sense, Compute, Act: Maximizing Data Value
Crisis of Digital Trust: Escalating Threats Mandate Strategic Responses
Rising Customer Expectations: More Convenience, Customization, and Control
The Future of Work: Agile, Augmented, Borderless, and Reconfigurable
Economies of Intelligence: AI, Human, and Organizational "Learning" Fuels Asymmetrical Advantage
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