eCommerce obsoleting traditional retail – Infrastructure needs to change
eCommerce obsoleting traditional retail with brick and mortar businesses impacted the most.
eCommerce is changing the way both business and consumers shop. Retailing is changing at lightning speed coupled with an ever-tightening decision horizon, changing consumer expectations and an unrelenting flood of data. eCommearace is disrupting classic retail models.
Traditional infrastructure models for merchandising, supply chain, and store operations are now triggered autonomously by novel and unexpected sources that are facilitated by artificial intelligence, machine learning, and voice and IoT sensors connected to a digital core.
Consumer wearables, smart appliances and homes, driverless vehicles, drones, virtual reality headsets, and online games are becoming points of brand interactions – from demand to execution. What has served retailing well in the past now is a serious liability with it being unable to drive business success.
- By 2020, 83% of mobile users globally will use their device to access the Internet
- By 2020, there will be 75 billion connected devices
- By 2025, the Internet of Things (IoT) will have potential economic impact of $4 trillion – $11 trillion a year, with impact in retail up to $1.2 trillion
- By 2025, augmented reality (AR) and virtual reality (VR) will represent up to $182 billion market opportunity