In France, more than half of all stores have yet to make the switch to digital. Those that have begun to digitalize their businesses are finding it difficult to see a return on their investment. While small and major retailers continue to close their doors for good due to e-commerce behemoths, it is critical that traditional traders accelerate their transformation to unified commerce. But not under any circumstances or at any cost.
The French have a strong attachment to their local enterprises, whether they be little firms or major corporations. According to a recent Harris Interactive survey done on behalf of Rakuten, 93 percent of respondents polled felt that shops are an important asset in town centers. Although certain models have been effective in reviving town-center or local stores, especially in large cities, other retailers have struggled with the introduction of e-commerce platforms.
The ready-to-wear garment industry has been impacted particularly hard. Forever 21 is the most recent retailer to close its doors. According to statistics compiled by the Economic Observatory of the French Fashion Institute, the value of the garment market has decreased by 14% in the last ten years.
Despite the fact that e-commerce is growing in popularity and marketplaces are becoming more popular for online transactions, only around half of retailers have fully digitized their sales process. Various degrees of success were achieved. Only 3% of shops in the UK saw a return on their digital efforts, according to a 2017 study. Some firms are going digital by opening online stores or creating a specific section on an e-commerce platform, or by installing digital technology in their stores (hotspots, smart touchscreens, and digital cash registers). There's a lot to choose from, and shops who aren't in the business of digital technology can get lost in the shuffle. So let's take a look at the major challenges that retail organizations encounter when it comes to integrating their systems.