A Glimpse into the 2015 Retailing Environment
Posted by Universal Ad at Thursday, December 06, 2007 1:48 AM and is filed under future,Retail,Consumers 
Retail Merchandiser and Yahoo cover “Retailing 2015: New Frontiers” - a report
released by PricewaterhouseCoopers’ Retail & Consumer
Industry Practice and TNS Retail Forward.
According to the report, the retail industry will become more segmented and customer-driven by 2015. Among shifting demographics, household downsizing and new marketing channels, the retail industry will face a variety of new challenges as the industry progresses during the next decade. “The ‘one-size-fits-all’ approach of the 1980s is not going to work as the population becomes more diverse and tech savvy during the next decade.”
The most rapidly growing age segment in the United States will be that consisting of those older than 55. Members of generation Y and millennials (those under the age of 35) will be more culturally diverse and technologically inclined, while less enamored of large conglomerates and chain stores than their baby boomer parents. In addition, the population will become increasingly diverse, with nearly half of the population under the age of 25 identifying themselves as non-white in 2015.
“Due to the demographic dichotomies, a new consumer mindset will emerge in 2015 that will have far-reaching implications for the retail industry,” explains John Maxwell, retail & consumer industry leader for PricewaterhouseCoopers. “Consumers will want to be more interconnected with the businesses they patronize, exercise more control over their purchases, customize their products to serve their individual needs and indulge in shopping as a life experience.”
As a result of these anticipated economic drivers, the report also predicts 15 trends that will redefine the business environment in 2015. Examples include:
-- Downsizing: The current trend of sustainability will drive the downsizing of products, packaging, resource consumption and waste as more people look to smaller, more personalized products.
-- Share of Life Retailing: Retailers will no longer define themselves by the products they sell, but by the customers they serve. Retailers will position themselves as one-stop purveyors of lifestyles.
-- Multi-Channeling: Traditional storefronts will increasingly co-exist with a growing array of multi-channel platforms, which include catalogs, pop-up stores, virtual stores and retailers partnering with service offers, such as spa packages and hotel deals.
-- Supplier Competition: Supplier-retailer relationships will not only be increasingly collaborative but also increasingly competitive. More suppliers will work vertically with retailers to create unique brand and product offerings.
-- Triple Bottom Line Scorecard: Definitions of corporate success will change by 2015, with increased focus on the environmental and social performance of a company.
“To be successful in 2015, retailers will need to understand and identify with their customers and be innovative by keeping on top of trends while managing complexities that the future will bring,” explains Maxwell. “Retailers, along with their customers, will be more demanding, more global, more diverse, and will operate across more channels than ever before. That being said, retailers should be proactive in addressing these challenges now.”
Posted by Universal Ad
According to the report, the retail industry will become more segmented and customer-driven by 2015. Among shifting demographics, household downsizing and new marketing channels, the retail industry will face a variety of new challenges as the industry progresses during the next decade. “The ‘one-size-fits-all’ approach of the 1980s is not going to work as the population becomes more diverse and tech savvy during the next decade.”
The most rapidly growing age segment in the United States will be that consisting of those older than 55. Members of generation Y and millennials (those under the age of 35) will be more culturally diverse and technologically inclined, while less enamored of large conglomerates and chain stores than their baby boomer parents. In addition, the population will become increasingly diverse, with nearly half of the population under the age of 25 identifying themselves as non-white in 2015.
“Due to the demographic dichotomies, a new consumer mindset will emerge in 2015 that will have far-reaching implications for the retail industry,” explains John Maxwell, retail & consumer industry leader for PricewaterhouseCoopers. “Consumers will want to be more interconnected with the businesses they patronize, exercise more control over their purchases, customize their products to serve their individual needs and indulge in shopping as a life experience.”
As a result of these anticipated economic drivers, the report also predicts 15 trends that will redefine the business environment in 2015. Examples include:
-- Downsizing: The current trend of sustainability will drive the downsizing of products, packaging, resource consumption and waste as more people look to smaller, more personalized products.
-- Share of Life Retailing: Retailers will no longer define themselves by the products they sell, but by the customers they serve. Retailers will position themselves as one-stop purveyors of lifestyles.
-- Multi-Channeling: Traditional storefronts will increasingly co-exist with a growing array of multi-channel platforms, which include catalogs, pop-up stores, virtual stores and retailers partnering with service offers, such as spa packages and hotel deals.
-- Supplier Competition: Supplier-retailer relationships will not only be increasingly collaborative but also increasingly competitive. More suppliers will work vertically with retailers to create unique brand and product offerings.
-- Triple Bottom Line Scorecard: Definitions of corporate success will change by 2015, with increased focus on the environmental and social performance of a company.
“To be successful in 2015, retailers will need to understand and identify with their customers and be innovative by keeping on top of trends while managing complexities that the future will bring,” explains Maxwell. “Retailers, along with their customers, will be more demanding, more global, more diverse, and will operate across more channels than ever before. That being said, retailers should be proactive in addressing these challenges now.”
Posted by Universal Ad
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