Ahhh Monday. Grab your coffee and read on for a valuable look at global economy predictions, consumer research and retail trends. OECD says India and emerging markets will be the bright spots while China falters. PSFK Labs’ The Future of Retail 2016 report shows how retailers need to adapt to the fast-changing consumer shopping landscape to survive. Amazon seems to have the upper hand in the fight for online dominance while Walmart may have a secret weapon in millennials according to Bernstein Research analyst Ali Dibadj. What trends are on the shopping list for consumers in 2020? Packaged Facts’ American Consumers in 2020 report sees more spending on groceries and essentials and less on eating out and out-of-home entertainment. There’s a shopping cart full of insight for food marketers.
With technology, consumers now have much more choice about how they consume and use products. Online Video Insider says Netflix users watch 10 TV shows and four movies per week, which is 100% more TV consumption per week over three years ago. US ecommerce revenue in Q3 was up 11.8% in transactions up 11.6% over Q3 2014. Learn how Urban Outfitters blends the art and science of big data to learn how to “fail fast.” The future of retail according to Andrew Levy of Crittercism? How about connected devices, comparison-shopping, 3-D printing, smart clothing and the on-demand economy for starters/ We live in interesting business times.
China will hold global economy back in 2016
Experts say growth will pick up next year, but not by much. For that, blame China. The world’s second-largest economy is slowing down, and it’s holding everyone else back.
A slew of new forecasts out from the OECD, the International Monetary Fund and The Conference Board broadly agree: China’s economy will fall further in 2016. The U.S. will stay about the same — in a “good but not great” state. Europe will improve modestly, but still be lackluster. India and other emerging markets will be the superstars. Via money.cnn.com
New Consumer Trends in on the Future of Retail 2016
From global brands whose dedicated audience have followed them through years in the service industry to startups coming to light in the era of the omni-channel shopping experience, companies are concerned with building new services that deliver a more relevant experience based on a better understanding of their customers. And when today’s vogue is the art of attention, the barrier to do so is high.
With nearly 75% of US teens having access to a smartphone, and many of them saying they are online “almost constantly,” according to a study by Pew Research Center, companies are required to amplify every part of the user experience to meet the changing demands of a hyper-connected shopper. The Future of Retail 2016 report covers best-in-class examples of companies who are helping to shape this new omni-present retail era and generating value for their customers in unique and delightful ways. Via psfk.com
Can Walmart Beat a Rival That Loses Money and Doesn’t Care?
So how can Walmart compete with Amazon in e-commerce when the latter doesn’t really make money at it? “It’s a huge question,” said Bernstein Research analyst Ali Dibadj, who said he posed it to Walmart CEO Doug McMillon following the retailer’s investor presentations last month. The answer he got was that Mr. McMillon feels the market will eventually force Amazon to be more profitable. Mr. Dibadj said he isn’t so sure.
Walmart’s e-commerce sales have slowed from north of 30% two years ago to a projection of a “mid-teens” percentage increase this year. Its $12 billion in e-commerce sales last year pales next to Amazon’s $85 billion-plus, though Amazon, which declined to comment, has seen a similar slowing in e-commerce driven by weakness in overseas markets. Via adage.com
The American consumer in 2020 what food and beverage companies need to know
When asked what types of items consumers thought they would spend more on in the next few years as compared to the last few, groceries was in the top two, along with household utilities. Consumers are leaning more toward spending money on necessities, like groceries and household expenditures, rather than discretionary spending, such as eating out and away-from-home entertainment.
More grocery purchases and less eating out are good signs for food manufacturers who are struggling with falling sales. By making products more attractive to consumers who want to eat and prepare meals at home, manufacturers can tap additional spending on food necessities. Via fooddive.com
Consumers are rapidly blurring lines and changing channels
Build it and they will come. That strategy may have worked well in the past era of big box retail stores. But, perusing the retail headlines today, it becomes readily apparent that even big box retailers, like Walmart, are experiencing dramatic shifts in consumer store traffic. Retailers can no longer assume that today’s empowered consumers will behave as they have in the past. A great case study in consumer behavior is the rapidly changing patterns of media consumption. Consumers are increasingly turning to Netflix and YouTube as primary sources. This behavioral shift not only impacts traditional media networks, it is a harbinger for retailers as well. Future success will depend upon the ability to boldly go where others have not gone before … to places where consumers now consume.
Why this is important: Technology has given consumers unprecedented power of when, where and how they choose to consume. The future belongs not to specific channels, but those who boldly go to reach consumers where they are consuming. Via retailcustomerexperience.com
3 Interesting Takeaways From Q3 2015 E-Commerce
It was yet another great quarter in the world of US retail e-commerce. Revenue was up by 11.8 percent year over year, and transactions increased nearly the same amount (11.6 percent) over Q3 2014.
As the leaves begin to change color and the sun begins to set on 2015, let’s take a look at some of the trends leading the way into Q4 and this year’s holiday shopping season. These finding below are based on the Custora E-Commerce Pulse, a free online dashboard tracking online transactions from more than 500 million shoppers, $100 billion in e-commerce revenue, and 200+ online retailers. Via marketingland.com
RetailWire Discussion: How can retailers find the right balance between tech and humans?
In her presentation, “Using Advanced Analytics Capabilities to Improve Merchandising Decisions,” Holly Devine, Urban Outfitters’ executive director of planning, touted the value company derives from integrating art and science, stating that data will “inform, not dictate” its strategies.
Urban Outfitters has a well-earned reputation for sniffing out and pouncing on the next big thing in experiential retail, and people-powered gut instinct still fuels many of its contrarian decisions, including going deep into vinyl, even as others jumped on the digital bandwagon. According to Ms. Devine, Urban Outfitters’ primary identity is that of a lifestyle retailer, not an apparel retailer, giving it plenty of room to experiment widely and fail fast if individual tests fall flat. Via retailwire.com
The Future of Retail
At Target, customers are served with aisle location information and interactive maps, deals on products, recommendations on nearby items, and the ability to request the help of a nearby team member (albeit a “real” team member, not yet a virtual one). This is the type of adaptation that is critical for retailers to maintain a relationship with millennials, who will represent one-third of the adult population and 1.4 trillion in spending power by 2020.
So, what drives this segment? Price comparison shopping, a sense of adventure fueled by the need to discover and share new trends on social media, a demand for instant gratification, and a focus on brand values are all key characteristics that define this slice of the market. So what comes next for the industry? Via chainstoreage.com
Cashback and ecommerce news you can use
That takes care of the big picture of research. Join us tomorrow for an in-depth look at e-commerce results during Festival shopping days in India, Singles Day in China and the lead up to the US holiday shopping season.