More than half of all stores in France have yet to convert to digital. Those that have started to digitalize their firms are having a hard time seeing a return on their investment. While small and large retailers continue to close their doors permanently due to e-commerce behemoths, traditional traders must speed up their transition to unified commerce. But not at any expense or under any circumstances.
The French have a deep bond with their local businesses, whether they are little businesses or large organizations. According to a recent Harris Interactive research conducted on behalf of Rakuten, 93 percent of those interviewed believe that stores are a valuable asset in town centers. While certain models have been successful in resurrecting town-center or local stores, particularly in large cities, other merchants have failed to adapt to the entrance of e-commerce platforms.
The ready-to-wear clothing business has been hit especially hard. The most recent retailer to close its doors is Forever 21. The value of the garment market has declined by 14% in the last 10 years, according to information published by the French Fashion Institute's Economic Observatory.
Despite the fact that e-commerce is becoming more popular and marketplaces are becoming more popular for online transactions, only about half of retailers have completely digitalized their sales process. Success was attained to varying degrees. According to a 2017 study, only 3% of shops in the UK received a return on their digital efforts. Some businesses are turning digital by launching online stores, creating a dedicated part on an e-commerce platform, or incorporating digital technology into their physical locations (hotspots, smart touchscreens, and digital cash registers). There's a lot to select from, and stores who aren't in the digital technology sector may get lost in the mix. So, let's take a look at the primary obstacles that retail businesses face when it comes to system integration.