Market Trends of Europe Retail Analytics Industry
This section covers the major market trends shaping the Europe Retail Analytics Market according to our research experts:
Cloud Segment is One of the Factors Driving the Market
- There are various reasons and financial benefits for retailers to have their analytics and BI on the cloud. Some of them are the 24x7 availability of the cloud environment without any infrastructure dependency, the reduction of the time taken to deploy BI components, the flexibility of scaling up or scaling down the infrastructure based on the requirement, and the cost-effectiveness in terms of infrastructure procurement. Additionally, the massive spending on licenses and the support of mobile and web-based remote access to control database access ensure user security and perform analytics.
- Knowing the Total Cost of Ownership (TOC) of the A&BI platform is a significant consideration. A cost comparison that examines the internal costs of infrastructure licensing and support compared to external cloud hosting must be assessed. With SaaS, the total cost of ownership is typically lower due to several factors. First, some SaaS solutions are multitenant platforms that allow several users to share the software's underlying infrastructure. Even though it could be a shared platform, users retain their private and separate information. Second, SaaS analytics and BI platforms don't need the business's servers, hardware, or IT resources to get the software up and running.
- Because SaaS A&BI platforms are automated and ready to use, they have significantly less implementation time- typically a matter of days. SaaS is accessible via standard web browsers, resulting in reduced learning curves and higher adoption rates. Because SaaS solutions are intuitive, self-service, and approachable, they are accessible to all users. On the other hand, implementation of on-premise A&BI infrastructure generally takes months and requires trained employees to extract insights.
- The advantages of cloud solutions over on-premise solutions are expected to drive cloud deployment significantly. Companies that favor data-driven decision-making are expected to manage the crisis better and recover faster than businesses that do not use analytics and business intelligence.
- According to Eurostat, In 2021, the usage of the cloud for e-mail and file storage was still prevalent, with 79% and 66% of organizations utilizing cloud computing, respectively, reporting purchasing these sorts of cloud services. Compared to 2020, the use of e-mail, office software, and accounting and financial apps in the cloud increased moderately (+3 % points for both e-mail and office software and +2% points for accounting applications). The adoption of other forms of cloud services remained relatively constant.
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France is Expected to Observe Significant Growth
- Retail businesses in France have to manage an enormous amount of information, from employee information to inventory details and supplier data to customer buying behavior. Every interaction and data point offers an opportunity to make the retail business more efficient and successful. Microsoft's Power BI, a BI tool, records these data points and helps generate actionable insights via its graphical representations of customer trends. Retailers can thus leverage BI data for effectively targeting customers through personalization.
- Moreover, with the rapid rise of e-commerce, business intelligence can track how users interact with e-commerce stores. This information can further enhance the customer shopping and service experience. E-commerce also allows retailers to make smart, efficient decisions based on customer behavior with business intelligence. This data can be viewed in real-time, enabling businesses to adjust prices or alter merchandise offerings quickly.
- Further, according to Eurostat, among people shopping online in France in 2021, 34 % did so once or twice in the three months before the survey. The remaining two-thirds engaged in this activity three or more times during this period.
- According to Retail-Index, The French retail market had 382 separate retailer enterprises across over 20 categories as of February 2021. There were over 130 different stores in the garment industry, with 52 specializing in selling footwear and leather goods. Twenty-eight retail enterprises focused on the food retail sector.
- Targeted offers and predictive analytics enable merchants in France to develop highly personalized offers to all their customers at a very granular level. For instance, retailers can personalize the in-store experience by providing offers to incentivize frequent buying to drive more purchases, thereby achieving higher sales across all their channels. Predictive analytics can be used to upsell or cross-sell a customer.
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