Digital wave to bring $2.95 trillion by 2025: Report

A digital wave is underway that could bring a cumulative $2.95 trillion in value by 2025 for the retail industry, according to a recent report by Accenture Strategy. It also says that retailers and CPG companies need to become masters of the traditional levers—cost, choice and convenience—and also master providing a stellar customer experience.

The report titled ‘Painting the Digital Future of Retail and Consumer Goods Companies’, which is based on analysis for the World Economic Forum, sees four main drivers of success through 2025—actions leading companies can take that are critical to consumer companies’ success.

With trillions in potential profit at stake over the next decade, retail and consumer goods leaders are doing four things to be on the cutting edge. Leaders will use digital to understand and connect with consumers; rapidly adopt game-changing technologies; test new business models; and know the three must-have capabilities to thrive over the next decade, namely - the partnership mindset, last-mile delivery and advanced data sciences.

The report added that by 2026, routine purchases will become effortless. Product purchases with low mind share, which are routine purchases, will be delivered automatically via auto replenishment, saving consumers time and simplifying their lives.

Routine purchases will primarily occur on digital channels with a cadence dictated by the consumer.

By 2026, shopping in a store will be transformed. It will no longer be about merely a product purchase, but is a rich, engaging and specialised experience driven by innovative business models. Retail will be reimagined and shopping will be an experience full of discovery and excitement. Stores will be destinations to interact with the product, talk to product experts and provide an ambiance which encourages consumers to stay and keep coming back, as per the report.

Additionally, data will lead to highly personalised shopping. Consumers will be the epicentre of the retail and consumer packaged goods industries. Their lives will be simplified and their lifestyles will improve due to technological advancements. Activities that do not drive value to the consumer experience, for example stocking shelves, checking out, etc. will be automated. Robots will work alongside a highly skilled human frontline workforce to drive this highly personalised and interactive shopping experience, notes the report.

Digitalisation will play out over the next decade in conjunction with other trends—urbanisation, a growing global middle class and millennial spending. A myriad of other factors will need to be taken into account as retailers begin to step firmly into their digital future, adds the Accenture study.