Asia Pacific's retail industry is expected to double its investments on digital transformation (DX) technologies by 2019.
This is according to the IDC Asia Pacific Annual Business and IT Services End-User Survey Results II: Driving DX Transformation in the Retail Ecosystem report.
IDC Asia/Pacific said retailers across the region are focusing on improving their networks, cybersecurity, and data centres to build foundational capabilities. This move aims to enhance their enterprise infrastructure and cybersecurity posture.
The report also showed that retailers in the region plan to spend 47 percent of their digital budget on adopting technologies, particularly Internet of Things (IoT) solutions, from external IT vendors.
The research firm explained the increasing demand for cross-border e-commerce, high internet penetration, and smartphone adoption are driving retailers to adopt digital technologies and upgrade infrastructures.
"Asia has a fast growing middle-class and millennial population, the buying and consumption patterns of whom have evolved to become more tech-enabled. To capture the spend from this growing segment, retailers in Asia are transforming themselves through the use of innovation accelerators such as AI, augmented and virtual reality, robotics, and blockchain to name a few," said Cathy Huang, senior research manager for services, IDC Asia/Pacific.
In line, IDC advised service providers to understand the retail sector of the region and include knowledge transfer component in their services like providing digital training for retailer's employees.
"With this trend, service providers and vendors need to adapt their offerings and integrate 3rd Platform technologies with core retail functions to help retailers in the journey to converge their digital and physical channels," said Rijo George Thomas, senior market analytics of IDC's Asia/Pacific Business and IT Services Research.
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