generic Future of Retailing 2015 110106

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Information about generic Future of Retailing 2015 110106

Published on January 31, 2008

Author: Rinald


Future of Retailing 2015:  Future of Retailing 2015 Slide2:  Retail Darwinism will continue to prevail. A handful of retailers will come to control the global market. Not only companies, but entire formats and industry segments will die out. Retailers will become suppliers and suppliers will become retailers. New and powerful competitors will do business in a whole new way. If you thought the 1990s were fast-paced and full of change, welcome to the new millennium where… Forces of Change:  Forces of Change Driving change will be a consumer zeitgeist unlike any other. Retailing 2015 will be a new ball game, with new rules, new roles, and new relationships - a whole new world. Forces of Change:  Forces of Change These events have conspired to produce the most uncertain business environment since the 1970s – an environment in which the world’s retailers and their suppliers will find it difficult to plan. Forces of Change:  Forces of Change Compounding the challenge in the years ahead will be an increasingly inscrutable consumer who will be more difficult to understand, much less predict, than ever before. Demographics will be less of a determinant. Lifestage will be less relevant. Lifestyles will be more idiosyncratic. Buying behavior will be more complex. Forces of Change:  Forces of Change The road to 2015 will see an evolution in how retailers create value for consumers and shareholders. The efficiency era, which drove unprecedented industry consolidation and changed the face of retailing forever, is nearing its end. The push is on into the promising era of the intelligent value chain, where smart technology and demand-based management optimization tools will enable the execution of tactical merchandising decisions based on real-world consumer demand. Twenty Trends for 2015:  Twenty Trends for 2015 How will these forces of change play out over the remainder of this decade? What will 2015 look like for retailers and suppliers? Who will win? Who will lose? Slide8:  Retail Forward projects the following twenty trends to transpire by the end of the decade Slide9:  No More One Size Fits All. Individual retailers will adopt a more robust portfolio approach to the market to appeal to the multi-dimensional consumer mindset. Slide10:  Wal-Mart Keeps Smiling. While the world waits for Wal-Mart to collapse under its own weight, Wal-Mart will wait for no one. Slide11:  Supercenters Keep Rolling. Wal-Mart’s push into the grocery business is changing the way we shop – and the supercenter juggernaut will steamroll on. Slide12:  Supervising the Supercenter. Conventional food, drug, and mass formats are under attack, but there is still room to maneuver. Slide13:  Department Store Death Spiral. Department stores are caught in a vicious circle propelled by escalating competition from mass retailers and lifestyle specialists – more consolidation and retrenchment are inevitable. Slide14:  Malls Get Mauled. Malls aren’t going away, but many will change almost beyond recognition. Slide15:  Re-concept Rather than Remodel. Compressed lifecycles for products, retail concepts, and brands mean the days of the large, mass-merchandised specialty chain are over. Slide16:  Experience Excels. Experiential retailing concepts will mix context and commerce as never before. Slide17:  E-commerce: more Action than Transaction. E-retailing’s impact will extend well beyond its contribution to retail sales, which will remain a relatively minor share of the total. Slide18:  Smart Shopping. Consumers will embrace new technologies that give them better information and more control over the shopping process. Slide19:  Smart Stores. Stores and store associates will get smarter as retailers adopt technologies to drive greater space and employee productivity. Over time, some smart store solutions will displace human resources with technology. Slide20:  M-commerce: More B2B than B2C. For the rest of this decade, the selling of products and services via mobile devices will remain largely elusive. In the next few years, wireless will focus primarily on business-to-business applications. Slide21:  Global Land Rush Continues. Despite growing world tension, the strong interest that business have in further liberalization of international borders will prevail – and with the global land rush will come a global retail oligopoly. Slide22:  Retailers Act like Suppliers. As retailers grow and become more global, they will seek alternative sources of supply. By 2015, many suppliers will find their biggest competitors are their retail customers – and they own the shelves. Slide23:  Retailers as Brand Managers. Retailers will become brand managers on an unprecedented scale as the search for competitive differentiation accelerates. This decade means build your own brand or be gone. Slide24:  Brand Sharing. Retailers will plug into each other’s shopper base and leverage location strength through innovative store-within-a-store, or brand-sharing, partnerships. Slide25:  Uber Retailers. Over the course of the decade, retailers will find out how far they can stretch their brands as they continue to transcend competitive boundaries. Slide26:  Suppliers Act like Retailers. Suppliers that survive the decade will become best-in-class category consultants as they take on an increasing number of activities that traditionally have been the responsibility of the retailer. Slide27:  Suppliers Become Retailers. As more suppliers get locked out of traditional retail channels, supplier direct-to-consumer will become a more viable scenario for the future. Slide28:  Consumers Call the Shots. In a buyer’s market, where technology is changing the dynamics of the buyer-seller interface, the relationship between retailers and consumers will become much more symmetrical and, if anything, tilt in favor of the consumer. Now and forever more, consumers call the shots.

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