The Future of Retails

Goals

To identify trends that will affect the future of retails and provide examples of those trends.

Early Findings

Overview of Trends

  • Not long before the current crisis of COVID-19, retails were on the rise with e-commerce sales surpassing 10% of total sales for first time in 2019, according to Business Insider Intelligence.
  • Online trend is expected to further boost growth of solution providers and marketplaces such as Amazon.
  • With the rise of technologies, customer experience is expected to be better and more personalized. Retailers now have the opportunity to collect data on customers' preferences; and the more they know about their customers, "the higher their customer satisfaction and revenue."
  • Being bigger than your immediate competitors used to be a winning strategy for retailers, according Bain & Company. However, the rise of consumer demands and technologies has changed this. To succeed, retailers must embrace rapid innovation.
  • eMarketer suggests that the era of inventory-led retail is ending while the focus on brands and customer experience is emerging.

The Future of Retails

  • According to Bain & Company, there are five retailer models that will thrive. These are “ecosystem players,” “scale fighters,” “value champions,” “hitchhikers” and “regional gems.”
  • McKinsey projects that, while e-commerce is on the rise, physical stores will still a place in the future of retails. It suggests that successful retailers will be ones that "offer a true omnichannel experience."
  • It is also projected that technology will likely double store profitability, according to McKinsey.

Proposed next steps:

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