Future Retailing

The future of physical retailing will increasingly lie in creating rich “experience bazaars” that help to amplify return on attention for the consumer. Read on to discover how and where our robot Athena thinks we might be shopping in the not too distant future. Contact us for an in-depth report customized to your needs on the future of the Retail Market.
What is changing?

Targeting

  • As consumer needs and shopping habits become increasingly polarized, manufacturers will need to make decisions about which consumer segments to serve; whether to make branded goods, private-label products, or both; and which retail channels to prioritize.
  • Luxury, high-end, and specialty retailers will serve not only the affluent residents who can afford central-city life, but also wealthy visitors, both foreign and domestic, who frequent city centers for business or pleasure.

Growth

  • Wal-Mart Chief Executive Officer Doug McMillon has said that the company needs to succeed in China, where it estimates that 25 percent of global retail growth will come from in the next five years.
  • Tax-free travel retail is expected to increase by 26 percent and 19 percent in Europe and Italy.
  • The proliferation of Omni-channel retailing across Europe is set to have a positive impact on the retail and distribution sector.
  • Retail spending by Hispanic-Americans will rise by 1.6 percentage points by 2020.
  • By next year, Amazon will overtake Macy’s as the largest U.S. retailer of apparel and accessories.
  • Going “glocal” at home could help build the appeal of retail brands and cement the place of retailers in ethnoburb communities.
  • Specialty retailers and higher-end chains will likely find a growing consumer base in urban centers in the coming decade.
  • Big-box retailers will find fewer and fewer low and middle-income consumersin U.S. cities and an expanding number of their target consumers in the suburbs.
  • Retailers aiming to enter Ethiopia over the next decade or two should focus on supplying necessities since the vast majority of Ethiopian consumerswill have little discretionary spending money at their disposal.
  • Amazon will launch a chain of bricks-and-mortar convenience stores as it moves deeper into the grocery business and will sell perishable items such as produce, milk and meat.
  • Retailers and brand owners are seeking more environmentally-friendly solutions that will help reduce the carbon impact of their products and are choosing brands that reflect their concerns for the environment.
  • Worldwide online sales would grow by an average annual rate of 9.32% over the next five years.

Technology

  • A shift away from traditional retail apps and proximity-based advertising will unlock the true capabilities of indoor location technology in retail.
  • Robotics powered by advanced NLP capabilities could be the next step in retail that will bring online and offline shopping experience much closer.
  • Nowcast Inc. will begin providing automated earnings estimates of consumer goods makers as soon as October by analyzing millions of transactions at retail stores.
  • Stores and brands will increasingly collect customer data in 2020.
  • Advances in big data analytics in coming years will provide local retailerswith another edge.
  • Marketing automation and even mobile video advertising and personalized offers will take place via algorithms and Big Data insights will be actionable by AI, that are able to target offers above human performance levels.
  • Emerging advancements in technology such as autonomous trucks, 3D printing and warehouse automation will foster changes in how shippers, retailers and manufacturers configure their supply chains and distribution strategies.
  • Payments will be increasingly by digital means.

Consumers

  • Consumers are more knowledgeable about the products available to them and expect to encounter store employees who are product geniuses and ready to provide useful information and immediate assistance.
  • Consumers will increasingly expect and demand superior customer service as part of their immersive and personalized retail experience.
  • Securing a place on consumers’ digital shopping lists will become a top priority for CPG brands.
  • In 2020, physical shopping will be a true experience thanks to sensors, touch screens and beacons.
  • Saving time and saving space will become hallmarks of consumer savviness and common currencies for the marketing language of campaigns.
  • Consumers anticipate spending 20% to 35% of their total outlays online in the next few years.
  • GE is creating a family of indoor positioning technology and products that could enhance the shopping experience.

Jobs

  • Retail jobs will eventually become so flexible in response to fluctuating demand that they become part of the gig economy.
Implications
  • Smart clothing could offer retailers the chance to make sure their employees are moving the way they should and as often as possible.
  • Vertical integration will become a new paradigm, particularly in online retail.
  • A shift away from traditional retail apps and proximity-based advertising will unlock the true capabilities of indoor location technology in retail.
  • Athletic wear is so popular in China that it could displace the luxury industry.
  • Robotics powered by advanced NLP capabilities could be the next step in retail that will bring online and offline shopping experience much closer.
  • By 2020 some Starbucks stores might be considered coworking spaces.
  • By 2018, retail laggards who haven not transformed how they use data from the Internet of Things and other real world sources to engage with customers will be closing ten times more stores than their peers to stay in business.

Sentiment analysis

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