IDC Insights: Retail Industry Predictions for 2010

IDC Retail 2010 Predictions IDC held its "IDC Insights Predictions 2010: Retail" web briefing last Wednesday, January 13, 2010.  Leading the call were IDC Retail Insights analysts Leslie Hand, Ivano Ortis, and Group Vice President Bob Parker.

The conference call provided insights into current driving forces impacting retailers (including Sustainability, POS systems and RFID, and customer experience) and important IT investment trends for 2010 in the area of supply chain, demand planning, merchandising, and point-of-sale (POS) business initiatives.

Certainly, the economy had a big impact on retail in 2009 and that trend is expected to continue in 2010.  However, retail will begin emerging in 2010 with new business models and perhaps new industry leaders.

Here’s a summary of the 10 predictions IDC provided on the conference call.

  1. Growth Strategies:  IDC says that in 2010, retailers will seek growth strategies based on “Same Shopper” sales and first time buyers.
  2. New IT Investment Strategies:  IDC predicts retailers will launch aggressive technology investment programs to support new business models while reducing traditional IT costs.
  3. Getting More Value From Supply Chains:  Retailers will extract more value from their supply chains, responding adeptly to customer, supplier, and regulatory influences.
  4. Devil is in the Details:  IDC says that retailers reach nirvana where PLM information informs intelligent automation
  5. Customer Experience:  Retailers will focus on customer experience solutions convergence. CRM, SCM, and BI applications on a single source of demand information.
  6. Mobile Shopping:  IDC expects retailers will drive mobile consumer interaction and this will usher in the open shopping era.
  7. Demand Information To Drive Customer Loyalty:  Retailers will work on building customer intimacy and loyalty while improving brand performance.
  8. Harvesting Intelligence:  IDC says that in 2010, retail investment in demand intelligence and BI will be driven by a need to lower inventory costs and be more customer centric.
  9. Sustainability Initiatives:  IDC predicts retailers will build sustainable lean enterprises
  10. Social Commerce:  IDC cleverly states that traditional retailers are on the Titanic and the approaching iceberg is online social commerce.

The formal part of the call ended with the IDC team reviewing their four pillars of investment for retailers.  Here’s a summary of the four pillars.

  • Drive IT Infrastructure savings
  • Harvest Demand Intelligence
  • Drive Improved Customer Experience
  • Improve The Supply Network

The four pillars seem pretty obvious when I look at them…and you could make the case that those pillars have been important for decades and will still be important for many more decades to come.

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