Frictionless Commerce - Thematic Research

Frictionless Commerce - Thematic Research


Summary

Today’s consumers demand instant gratification, and frictionless commerce aims to provide it. Physical stores are evolving from tills staffed by workers and self-checkout systems (although both are still found in many stores) to the budding cashierless checkout system, where you walk into a store, pick up the items you want, and walk out. This model, called frictionless commerce, was pioneered by Amazon. It uses technology to identify the shopper, recognize their chosen objects, and bill them after they leave the store.

Key Highlights

While frictionless commerce looked like the future of shopping upon its inception less than a decade ago, a lukewarm response from consumers has dampened retailers’ enthusiasm. Many consumers are put off by requests to download an app to enter a store, stifling footfall. Imperfect technology implementation can also cause delays and errors, alienating shoppers rather than providing convenience. The high costs associated with fitting out a frictionless commerce store and uncertain returns on investment may also deter retailers from adopting this technology.
However, although the frictionless commerce market was worth only $375.4 million in 2023 (less than 0.01% of the global in-store retail market), the industry may still find a way to flourish. It remains to be seen whether society fully embraces this new way of shopping.

Scope

This report provides an overview of the frictionless commerce theme.

It identifies the key trends shaping the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.
It includes a comprehensive industry analysis, including market size and growth forecasts for the global frictionless commerce market, alongside analysis of trends in GlobalData's proprietary signals data, including M&As, venture financing, and patents.
The detailed value chain is split into five layers: physical, connectivity, data, apps, and services.
Also included are profiles of leading players in the frictionless commerce theme, including Alibaba, Amazon, Carrefour, JD.com, and Microsoft.

Reasons to Buy

Frictionless commerce is a new iteration of in-store retail that draws on the technological capabilities of ecommerce, fusing this with traditional retail. While only in its infancy, frictionless commerce is being deployed to test new markets, store formats, and shopping categories. This report will help you understand what frictionless commerce is and its potential impact on the retail industry.


Executive Summary
Players
Technology Briefing
A technology-centric approach to retail
A new form of retail
Trends
Technology trends
Macroeconomic trends
Regulatory trends
Industry Analysis
Market size and growth forecasts
Use cases
Timeline
Signals
M&A trends
Venture financing trends
Patent trends
Value Chain
Physical layer
Connected devices
Cameras and lenses
Sensors and microcontrollers
Microprocessors
Connectivity layer
Edge infrastructure
Cloud infrastructure
Networking equipment
Telecom networks
Data layer
Data integration
Data aggregation
Data processing
Data storage
Data validation
Data governance and security
App layer
Apps
Platforms
Services layer
Consulting
Systems integration
Managed services
Training
Companies
Public companies
Private companies
Sector Scorecard
Retail sector scorecard
Who’s who
Thematic screen
Valuation screen
Risk screen.
Glossary
Further Reading
GlobalData reports
Our Thematic Research Methodology
About GlobalData
Contact Us
List of Tables
Table 1: Technology trends
Table 2: Macroeconomic trends
Table 3: Regulatory trends
Table 4: M&A trends
Table 5: Key venture financing deals associated with the frictionless commerce theme since January 2018
Table 6: Public companies
Table 7: Private companies
Table 8: Glossary
Table 9: GlobalData reports

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