Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

Retailers Demand Tailored Solutions From Their IT Vendors as Commoditised Products Fail to Provide Competitive Advantage

  • 01 October, 2008 10:40

<p>Auckland, New Zealand, 1 October 2008, A new report by Global Retail Insights, an IDC company, has shown that IT expenditure in New Zealand's retail industry is not expected to slow down over the next five years, with spending forecast to grow from NZ$360.2 million in 2008 to NZ$431.7 million in 2012 - a 4.7% CAGR. In response to an increasingly competitive market, hard to please consumers and tightening margins, retailers will seek IT solutions that are tailored to specific needs, rather than a one size fits all product that comes out of a box on the shelf.</p>
<p>Global Retail Insights latest study, titled The New Zealand Retail Industry: 2008-2012 IT Spending Forecast and Analysis, reveals that in the New Zealand retail market, the largest IT investment category in 2008 will be IT services which will account for 70.8% of IT budgets by 2012, with outsourcing contributing the greatest growth. In response to an increasingly competitive market, choosy consumers and tightening margins, retailers will seek IT solutions that are tailored to specific needs, rather than a mass produced product.</p>
<p>"Retailers will be tightening their purse strings over the coming months but IT spending is expected to remain robust as merchants invest in IT solutions to increase their competitive advantage through differentiation strategies." says Louise Francis, Senior Market Analyst, Global Retail Insights. "However, these retailers will also demand smarter efficient solutions so vendors must be in tune with retailers pain points and provide tailored, customer centric and cost effective solutions."</p>
<p>The report provides a detailed breakdown of IT spending in the retail sector in the hardware, software and IT services categories. Included in the analysis is an overview of retail investment trends, including green IT, key technology projects, Radio frequency identification (RFID) and the focus on value added solutions.</p>
<p>On IDC’s website, www.idc.com, this media release relates to document # NZ387103Q, New Zealand Retail Industry 2008–2012 Forecast and Analysis.</p>

Most Popular