The future of the retail industry will be determined by a variety of disruptive issues, with e-commerce being one of the issues that will have a significant impact on retail businesses.
Electronic commerce, or electronic commerce, refers to the buying and selling of goods and services over the Internet. Ecommerce platforms have significantly altered the traditional buyer’s journey. Start-ups, small businesses, and multinationals can all benefit from e-commerce as it allows businesses to sell their products or services and reach a larger audience than traditional stores. In today’s competitive and convenience-focused society, online shopping has become a part of people’s lifestyle.
Over the past decade, retail has undergone fundamental change due to increased connectivity, increased competition, and increased customer expectations, including online demand. Many retailers have rushed to restrategize and restructure their business to find new ways to engage with customers, while others have struggled.
E-commerce companies face two big challenges. The first is to make the industry more sustainable. Companies must tackle waste, make deliveries more energy efficient and improve working conditions. The second challenge is adapting to the new regulations. As EU and US regulators turn to big tech, the winners will be those companies that avoid reputational damage by implementing new regulations quickly while remaining profitable.
However, not all companies are created equal when it comes to their capabilities and investments in the key issues that matter most to their industry. Understanding how companies are positioned and ranked on the most important issues can be a key indicator of their future earnings potential and relative competitive position.
Information of the best ranked companies
The JD Logistics business unit manages a network of more than 650 warehouses and claims to be able to deliver approximately 90% of purchases the day they are ordered or the next day. Like many major e-commerce providers, JD has invested in warehouse automation, opening a fully automated warehouse in 2018 that was built to handle 200,000 orders and employed just four people (who were responsible for servicing the orders). robots). It is also investing in delivery technology through its JD-X lab, which is experimenting with the use of drones and autonomous vehicles and has developed augmented reality (AR) technologies (notably AR Styling Station and Beauty Mirror), which have been adopted by people like walmart in their physical stores. JD’s fast delivery service and well-established online presence have boosted the company’s position, especially within the grocery segment, during the pandemic. JD also helped 2,096 shop assistants from brick-and-mortar stores move online through its social commerce solution and cloud stores in China, helping to offset lost sales from closed stores and maintaining communication between brands and the clients.
walmart has invested heavily in its product portfolio with acquisitions like vintage-inspired clothing company ModCloth in 2017 and high-end camping gear retailer Moosejaw in 2018. walmart It earns most of its revenue in the US, but has invested heavily in growing its international business. Notably, it paid $16 billion in 2018 to acquire flipkart the largest e-commerce company in India, a deal that represented the largest ever acquisition of an Indian company by a foreign buyer. walmart it also targets the Chinese market, announcing in 2019 that it would invest $1.2 billion in distribution in the country over the next two decades. walmart The digital transformation journey is primarily focused on strengthening your online presence and providing an omnichannel shopping experience. It is expanding its technical resource team and acquiring or collaborating with other technology companies such as Polymorph Labs, an ad-tech company, to further its digital strategy. In June 2020, it partnered with the all-in-one trading platform Shopify to expand your eCommerce marketplace.
Alibaba dominates China’s booming e-commerce market, with the number of annual active consumers in its Chinese retail markets topping 700 million in the fourth quarter of 2019. The company has invested heavily in artificial intelligence and machine learning technology, that you use in your e-commerce operation to improve customer experience. For example, the Tmall Smart Selection tool predicts which products will be popular and notifies retailers of inventory to cope with demand. Dian Xiaomi, Alibaba’s chatbot, interacts with millions of customers every day and understands around 90% of customer inquiries. To cut costs and improve efficiency, Alibaba uses robots in many of its warehousing facilities. In October 2018, Alibaba majority-owned logistics company Cainiao opened a warehouse in Wuxi containing about 700 robots. Tmall, Alibaba’s online business-to-consumer retail platform, reported a 23% increase in gross merchandise volume for the fiscal year ending March 31, 2020, despite the Covid-19 crisis. Like Tmall, the retailer operates several other e-commerce platforms, including juhuasuan Y Taobao , with a wide range of products. Alibaba witnessed a significant increase in online traffic due to Covid-19 when 300 million daily active users browsed and purchased products from its platforms in March 2020.
To better understand the key issues and technologies disrupting the retail industry, access GlobalData’s latest thematic research report on E-commerce in retail.