European retailers have observed greater basket sizes and, on average, a 10% increase in overall revenues since deploying handheld self-scanning solutions.
Natick, MA (PRWEB) April 14, 2016
The global market for handheld self-scanning/shopping solutions (hardware, software, and services) is expected to grow at a CAGR of 10% to $92M by 2020, according to a new report from VDC Research (click here for more info). Handheld self-scanning/shopping solutions are dedicated handheld barcode scanners with integrated screens and mobile self-scanning applications for consumer smartphones that are used for consumer applications such as self-checkout, special offers, and price checks in-store while shopping.
Europe will continue to be the core market for these solutions and drive global revenue growth with an anticipated 9.8% CAGR through 2020 followed by a potentially promising market in the Americas. Meanwhile, Asia-Pacific deployments will remain very limited due to low labor costs and relatively insignificant retailer interest in or consumer familiarity with self-scanning solution investments (handheld or otherwise). Reducing labor-related expenses is a major driver for self-scanning interest and adoption for European retailers that face significantly higher costs as compared to other regions. This makes these handheld solutions an attractive investment proposition as it helps, among other things, streamline the number of employees required for checkout processes within a store.
According to insights from VDC’s recently conducted conversations with end-users, demand for these solutions is growing in the region as retailers observe greater market basket sizes and, on average, a 10% increase in overall revenues when deploying handheld self-scanning solutions. Their uniqueness and ease of use make them especially attractive to consumers, as it also gives them the freedom to shop as they please. In addition, the growing installed base of consumer smartphones also has the potential to lead to an explosive growth in adoption of and investments in self-scanning applications on consumer devices.
“Competitive differentiation, reducing labor costs, and enhancing customer service are just some of the major drivers pushing European retailers to invest in handheld self-scanning solutions today,” said Shahroze Husain, Research Associate at VDC. “Vendors will need to develop strong partner networks with specialized ISVs and distributors and collaborate closely with them to address retailers’ specific pain points and solution requirements.”
Zebra Technologies and Datalogic are the two players in this space with their own handheld self-scanning hardware, and each has a well-established footprint in the market. Vendors’ product development strategies will need to shift from being functionality-centric to solution-specific, with greater focus on software application development. Aside from offering features like couponing and highly personalized promotions, those like mobile payment, in-store navigation, and chat functionality will help software developers to differentiate their solutions and enable retailers to drive more revenues by enhancing customers’ in-store shopping experience. In-store analytics services and integrated business intelligence tools will also become more important as retailers look to enhance operational efficiencies and gauge customer trends and shopping habits.
About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.