1、 2024 EUROMONITOR INTERNATIONAL1Not to be distributed without permission.This report includes the latest data from Euromonitor International at the time of publication in June 2024.Retail Reinvention:A Framework for Future GrowthMichelle EvansGlobal Lead,Retail and Digital Consumer InsightsEuromonit

2、or International 2024 EUROMONITOR INTERNATIONAL2The reinvention of retailNew business modelsDiversified revenue streamsChannel expansionShopper expectationsA framework for future growthAbout Euromonitor InternationalAbout NRFContents35111722263637 2024 EUROMONITOR INTERNATIONAL3Since the mass produc

3、tion of goods became possible during the first industrial revolution,the wholesale business model has been the main way that shoppers bought goods.Retailers became the centre of the shopping experience with the physical store serving as the backdrop.But the retail sector isnt as straightforward anym

4、ore.Digitalisation caused structural industry shifts and disrupted the buying journey.New ways of selling emerged.And shoppers set higher expectations for personalised interactions and engaging experiences.The reality:retail gets reinvented.A clear outcome of this transformation has been the rise of

5、 e-commerce,which Euromonitor International expects to drive 56%of global retail sales growth in the next five years.56%of global retail sales growth is expected to come from the e-commerce channel over the next five yearsThe reinvention of retailSource:Euromonitor International,Passport RetailPush:

6、What drives the industry to explore new tools for selling products?Pull:What motivates shoppers to change their browsing and buying habits?Cutting-edge technologiesNew business modelsEmerging retail channelsNew competitors and partnersExplosion of consumer dataIncreased digitalisationGreater empower

7、mentPersonalised touchpointsEngaging experiencesIncreased values-based buying 2024 EUROMONITOR INTERNATIONAL4New business models,channel expansion and shopper expectations continue to change the landscape.These three areas redefine industry rules and relationshipstransforming the path to purchase in

8、 the process.How products are discovered and ultimately sold continues to evolve.You need to be able to navigate these dynamics at speed to protect your bottom line.That requires agility,especially as new tech gets introduced in smaller intervals and accelerates the rate of change.Euromonitor partne

9、red with the National Retail Federation(NRF)on this report to guide the retail industry through this next phase of reinvention.Youll read about how new business models,channels and shoppers challenge the traditional playbook and customer journey.Youll also get a framework that defines the biggest te

10、nsions behind these shifts to help you spot potential threats and find pockets of growth.2024 EUROMONITOR INTERNATIONAL5Rapid digitalisation paved the way for new business models like marketplaces,direct-to-consumer(DTC)and social commerce(s-commerce).These behind-the-scenes shifts in how products r

11、each consumers disrupt industry norms,creating new partners and competitors as a result.That leads to operational changes and forces players to find additional revenue streams to support growth targets in a fragmented landscape.New business models 2024 EUROMONITOR INTERNATIONAL6Marketplaces The mark

12、etplace model has been the most impactful based on dollar sales.Globally,third-party marketplace sales expanded$1.2 trilliongrowing 10 times faster than the overall retail sectorfrom 2018 to 2023,according to Euromonitor data.global growth of third-party marketplaces from 2018 to 2023Source:Euromoni

13、tor International,Passport Digital Consumer0$200$400$600$800030%60%90%120%Third-partymarketplaceS-commerceFirst-partymarketplaceThird-partydeliveryDTCTotal sales growth(USD billion)CAGR(%)Total sales growth(USD billion)CAGR(%)Source:Euromonitor International,Passport Digital Consumer;note:CAGR refer

14、s to compound annual growth rate.0$100$200025%50%Third-partymarketplaceS-commerceFirst-partymarketplaceThird-partydeliveryDTCTotal sales growth(USD billion)CAGR(%)Total sales growth(USD billion)CAGR(%)$1.2 tnMarketplaces became a global phenomenon.Tmall,Amazon and Mercado Libre launched with this mo

15、del and are now household names.Legacy retailers like Walmart and Kroger in the US,Tesco and Range in the UK and Liverpool in Mexico are a few that added marketplaces to expand their online presence.This model has been revolutionary in places like China.In fact,four of the top-five global e-commerce

16、 players are marketplaces headquartered in China.Third-party marketplaces accounted for 91%of e-commerce sales growth in China from 2018 to 2023 compared to 32%in both the US and UK.E-Commerce Sales Growth by Business Model,20182023 ChinaUS 2024 EUROMONITOR INTERNATIONAL7Direct-to-consumer(DTC)Both

17、established and emerging brands explore DTC models to cultivate direct relationships with consumers.Euromonitor data shows that more than$205.9 billion came from the DTC channel in the US last yearthats 17%of e-commerce sales,and the highest of any market.China recorded$36.8 billion,and the UK saw$1

18、8.9 billion in comparison.And by 2028,the US is expected to remain the dominant market for DTC e-commerce sales at$348.7 billion.17%of US e-commerce sales were from the DTC channel in 2023Source:Euromonitor International,Passport Digital ConsumerUS:DTC and Third-Party Delivery Sales in 2023%of US e-

19、commerce sales from DTC and third-party deliverySource:Euromonitor International,Passport Digital Consumer and Passport E-CommerceThe rise of digitally native players over the last decade motivated established brands to explore direct routes to gather customer insights and boost profits.Nike slashed

20、 its number of retail partners in 2017 to focus on DTC but reversed course last year and re-entered wholesale relationships to balance its global distribution strategy.Nike more than doubled DTC sales in that time to reach$21.3 billion in 2023,according to company financials.Nestl is another brand t

21、o find success through a strong distribution mix with emerging models that complement its wholesale relationships.Nestl is a leader when it comes to its use of DTC through its Nespresso brand and third-party delivery partnerships like Instacart and Shipt.Brand equity plays a big role in sell-through

22、 across non-wholesale channels as seen with both Nike and Nestl.DTC brands like Warby Parker,Everlane,Glossier and Casper were able to scale due to an abundance of venture capital,low competition and cheap social media advertising.But those dynamics changed in recent years;entrants or startups face

23、bigger hurdles to achieve similar gains.20%15%10%5%0DTCThird-party deliveryTotal US e-commerce marketNestl 2024 EUROMONITOR INTERNATIONAL8Non-retail brandsCompanies that didnt start in retail are now competing for shoppers attention and their spend.Think:social networks like TikTok and YouTube;strea

24、ming services like Netflix and Roku;and gaming platforms like Roblox and Twitch.These platforms werent originally built for commerce but continue to expand such capabilities with shoppable content,marketplaces or their own merchandise sites.Euromonitor expects s-commerce sales in China and the US to

25、 more than double over the next five years,reaching$344.6 billion and$134.5 billion,respectively,in 2028.Indonesia,the UK and Thailand are projected to have the highest s-commerce penetration rates in 2028 at more than 15%each.Shoppable videos and blogs are another clear indication of the potential

26、for non-retail platforms to transform into purchase channels with the right integrations.Source:Euromonitor International,Passport Digital Consumer$344.6 projected s-commerce sales in China by 2028bn 2024 EUROMONITOR INTERNATIONAL9ByteDance:From content to commerceByteDancethe owner of TikTok and Do

27、u-yinis capitalising on the audience reach and influence of its apps in the buying journey.In 2020,its Chinese platform Douyin added commerce functionalities and is reaping massive gains.Online sales of beauty and personal care products on Douyins marketplace surged 50%in Q1 2024 vs Q1 2023,and the

28、company gained 10 percentage points in share,according to Euromonitor data.Douyin became the largest online retailer in China for this category as of Q1 2024.TikTok Shop is also finding success,particularly in Southeast Asia.The commerce feature launched in the US and the UK in late 2023.$5$4$3$2$10

29、Douyin(marketplace)Tmall(marketplace)JD.com(direct sales)Tmall(direct sales)JD.com(marketplace)2023 Q12024 Q1Source:Euromonitor International,Passport E-CommerceChina:Beauty and Personal Care E-Commerce Sales by RetailerUSD billionBYTEDANCE 2024 EUROMONITOR INTERNATIONAL10Digitalisation ushers in ne

30、w business models and infuses established ones with a digital twist.These shifts challenge long-standing industry norms.As business models evolve,retailers and brands need to decide how to operate in the new field of play.Brands should develop more complex distribution strategies that best position

31、products to compete across each category.Product innovation also needs to improve.More than 80,000 new brands and line extensions were launched online from January 2022 to April 2024,according to Euromonitors Innovation platform.And nearly 75%of those new products were still available as of April 20

32、24.Beauty and personal care had the highest number of new product launches while pet care and tissue and hygiene had the greatest staying power.Retailers must also find ways to stay relevant.A decade ago,the long-standing wholesale business model started to lose momentum.Retailers are now diversifyi

33、ng revenue streams in response.This effort has been so successful that these next few years could be the golden age for retailers.1 in 4 new products launched online between January 2022 to April 2024 were discontinued by the end of April 2024Source:Euromonitor International,Passport InnovationNearl

34、y 2024 EUROMONITOR INTERNATIONAL11Retailers should diversify revenue streams as emerging business models challenge the traditional playbook.In fact,43%of retail professionals said their company has been exploring alternative ways of doing business in recent years,according to Euromonitors Voice of t

35、he Industry Survey 2023.The biggest shift here:moving beyond just selling merchandise.Diversified revenue streams 2024 EUROMONITOR INTERNATIONAL12Value-added services for shoppers,media networks and ecosystems are a few opportunities for retailers to expand their enterprise.As technology blurs indus

36、try lines,these pivots present retailers with a chance to go on the offensive and enter new service categories that drive revenue while reinforcing their retail business line at the same time.Value-added services Retailers can offer a range of services for shoppersfrom financial to health care to en

37、tertainmentleveraging audience reach and data to find relevant avenues for expansion.These service-driven sectors often grow at a faster rate and generate higher profit than the traditional retail business.Financial Store cards,co-branded cards or flexible payment options are common offers that reta

38、ilers extend to customers.These services have been viewed as a lifeline for underserved populations in emerging markets like Mexico where shoppers often trust local merchants more than banks.Now,retailers are embedding these financial add-ons into the shopping experience,which can help boost convers

39、ion rates and average order values.Ticketed entertainment e-commerceMobility e-commerceConsumer foodservice onlineTravel booking onlineRetail e-commerceStreaming servicesPersonal payment transactionsTravel booking offlineConsumer foodservice offlineRetail offline05%10%15%Projected CAGR of Global Sal

40、es by Category,20232028%CAGRSource:Euromonitor International,Passport Consumer Foodservice;Passport Digital Consumer;Passport Retail and Passport Travel;note:CAGR refers to the compound annual growth rate.2024 EUROMONITOR INTERNATIONAL13Health careA newer area of exploration:health care.US retailers

41、 are making inroads into primary care and disrupting the patient journey along the way.Value-based reimbursement programmes in the US health care market are driving this trend,leading to an increase of non-traditional players and models.Retailers first emphasised convenient care with in-store clinic

42、s focused on routine,one-off services.Now,retailers are shifting to comprehensive care to help patients with chronic diseases,primary care or home care.In 2023,Amazon,Costco,Walgreens,CVS and GNC rolled out virtual clinics to give customers access to health care from the comfort of their home.Kroger

43、 Health partnered with Performance Kitchen to offer medically tailored meals to consumers with chronic conditions like diabetes,heart disease and cancer.US regional grocer Hy-Vee runs Amber Specialty Pharmacy for complex conditions and infusion therapyeven in cities where the retail business doesnt

44、have operations.2024 EUROMONITOR INTERNATIONAL14Retail media networks Retail media networks help merchants monetise their large audiences.Retailers sell ad space to brands for product promotion across their digital assets like websites,mobile apps or signage in brick-and-mortar stores.Brands can get

45、 in front of individual shoppers at crucial points in their purchase journey like when theyre browsing or comparing products.Almost two-thirds of professionals at brand manufacturers said their company allocated investment towards this newer medium,according to Euromonitors Voice of the Industry:Ret

46、ail Survey 2023.Nearly 70%cited the ability to better target consumers as the most significant opportunity.While there has been a noticeable surge in retail media networks,one-third said their company invests in just one or two;less than 10%invested in six or more.Brands should consider investing in

47、 the right retail media networks to capitalise on the ability to reach consumers at moments that matter.of professionals at brand manufacturers said their company invested in retail media networksSource:Euromonitor Voice of the Industry:Retail Survey,fielded July 2023(n=259)Better target consumersDr

48、ive incremental salesBetter manage ad campaignsAccess to first-party dataStronger attribution dataMaintain or improve merchantrelationship010%20%30%40%50%60%70%Biggest Opportunities of Retail Media Networks%of professionals who work at brand manufacturersSource:Euromonitor Voice of the Industry:Reta

49、il Survey,fielded July 2023(n=157)61%2024 EUROMONITOR INTERNATIONAL15Ecosystems Retailers also use subscriptions services,paid memberships and one-stop ecosystems to build loyalty.These approaches hinge on creating stronger relationships with customers to increase lifetime value and retention.The go

50、al:build a flywheel effect.Shoppers sit at the centre,and their engagement or usage of such services drive the traditional retail business.The most sophisticated ecosystems come from online behemoths like Amazon and Alibaba.These companies continued to expand beyond traditional retail operations int

51、o areas like logistics,health care,entertainment,gaming,cloud computing and advertising.Amazon is one of the most diversified retailers with less than 50%of its sales coming from the act of selling products online or in store.Several retailers,including Walmart,are expanding beyond their core wholes

52、ale business to generate additional value for stakeholders.Walmart launched its Walmart+membership programme for shoppers,which includes free shipping,fuel savings and a Paramount+subscription,among other benefits.The retailer also increased access to its logistics networks for third-party sellers a

53、nd offers white-label local delivery to other merchants.Walmart continues to ramp up its advertising business with Walmart Connect generating$3.4 billion in sales in 2023,up 28%from the year earlier,according to company financials.2024 EUROMONITOR INTERNATIONAL16China commerceretail(Taobao andTmall)

54、Cloud computingInternationalcommerceLogistics servicesLocal consumerservicesDigital media andentertainmentOthersAmazonAlibabaEcosystems:Amazon and Alibaba Sales by Business Line in 2023Online storesPhysical storesThird-party sellerservicesAdvertising servicesSubscription servicesAWSOtherSource:Compa

55、ny filings from Amazon(FY ending December 2023)and Alibaba(FY ending March 2024)2024 EUROMONITOR INTERNATIONAL17Retailers continue to move from single channel to multichannel to omnichannel business models.These additional touchpoints serve as opportunities to engage shoppers,which could lead to inc

56、remental growth.The challenge:harmonising these channelsyour brick-and-mortar stores,website,mobile app,social mediato create a unified experience that puts the customer in the centre of the transaction.Channel expansion 2024 EUROMONITOR INTERNATIONAL18Retail professionals point to budget constraint

57、s,lack of resources and difficulty integrating with existing systems as major roadblocks for omnichannel development.Source:Euromonitor Voice of the Industry:Retail Survey,fielded July 2023(n=228)Top Challenges for Omnichannel Development%of retail professionalsBudget constraintsDifficulty integrati

58、ng with existing systemsLack of internal resourcesResolving conflicts across various channelsLack of expertise010%20%30%40%50%But the reward is a big one:a higher-value customer.In fact,Walmart noted that if people buy in store and online at W,they spend twice as much and visit the store more often.

59、Retailers need to create a cohesive,frictionless journeyespecially when product discovery and selection arent just unfolding in the aisle.Shoppers expect to find products as soon as their need or want arises.That could happen via brick-and-mortar stores,e-commerce websites,mobile apps and social med

60、ia platforms,among a multitude of other mediums.And this ongoing channel proliferation means more companies are vying for a share of the shoppers wallet.2024 EUROMONITOR INTERNATIONAL19Food purchases:A battle for shopping occasionsFood is a necessity in our lives,which means this category is a prime

61、 battleground for observing wider retail industry developments.There were once clear lines of demarcation between food purchases in grocery stores vs restaurants.But that distinction isnt so clear cut anymore due to evolving consumer habits and tech advancements.Home remains centre stage for food co

62、nsumption,but people are spending less time in the kitchen and choosing quicker,convenient food options instead.Fluid eating habits emerged as consumers eschewed the traditional three daily meals.And these smaller,more frequent occasions also impacted the channels used for food purchases.Certain sho

63、ppers ditched their weekly grocery haul in favour of multiple trips for fewer items per visit.And subscribe-and-save or other delivery services may supplement physical trips to the store.Retailers widened their food offerings in response to include cook-at-home kits,ready-to-eat meals and in-store r

64、estaurant optionsputting them in direct competition with foodservice players,DTC brands and delivery platforms.Digital also became an influential channel with more consumers browsing for food items on a device than in store.Emerging engagement tools are adding to these shifts.In fact,45%of consumers

65、 bought groceries via a livestreaming platformthe second-highest category behind apparel and accessories,according to Euromonitors Voice of the Consumer:Digital Survey 2024,a survey of internet-connected consumers in 20 countries.This could stem from the fact that livestreaming overcomes deficiencie

66、s of the traditional online experience.Shoppers can engage with a host to ask specific questions or learn more about products much like they might do in a brick-and-mortar store.In this type of promotion,brands take a backseat in favour of content that draws in the shopper.58%of consumers use a devi

67、ce to browse for food purchasesSource:Euromonitor Voice of the Consumer:Digital Survey,fielded March to April 2024(n=20,056;n=20,056;n=7,304);note:survey respondents are internet-connected consumers in 20 countries.44%of consumers browse in store for food purchases 45%of consumers bought groceries v

68、ia a livestreaming platform FOOD PURCHASES 2024 EUROMONITOR INTERNATIONAL20100%90%80%70%60%50%40%30%20%10%0%2013201820232028Small local grocersEat-in foodserviceSupermarketsHypermarketsFood,drink or tobacco specialistsConvenience retailersDiscountersTakeaway foodserviceWarehouse clubsDrive-through f

69、oodserviceDelivery foodserviceFood products e-commerceSource:Euromonitor International,Passport Consumer Foodservice and Passport RetailPhysical channels still capture the majority of food spend.In 2023,72%of global grocery sales came from local grocers,supermarkets and hypermarkets,and eat-in order

70、s accounted for half of foodservice spend,according to Euromonitor data.But those four channels lost share over the last decade to discounters,warehouse clubs,food products e-commerce and on-the-go foodservice(delivery,takeaway and drive-through).Euromonitor expects food products e-commerce and on-t

71、he-go foodservice to keep stealing share through 2028.The bottom line:channels that deliver greater value(discounters and warehouse clubs)or convenience(e-commerceincluding buy online,pick up in storeand on-the-go foodservice)are thriving here.Global Food Spend:Retail and Foodservice Channels%share

72、of historic and projected global spend across selected channelsFOOD PURCHASES 2024 EUROMONITOR INTERNATIONAL21You can reach an endless number of consumers and sell products across different channels or platforms.But retailers tend to promote the exact same merchandise to the exact same shoppers.Digi

73、talisation levelled the playing field but also eliminated the point of distinction.Certain retailers are orientated around discovery,but several merchants,including marketplaces,are trying to be an“everything store.”As such,retailers and brands are challenged with how to differentiate in an era of s

74、ame.Youll need to implement initiatives to stand out.Product bundles or unique SKUs are common tactics;however,differentiation could hinge on the consumer experience or building a sense of community.2024 EUROMONITOR INTERNATIONAL22Consumers expect more from the shopping journeyunique offers,enhanced

75、 recommendations,better service,easier checkouts and faster delivery,for example.Their standards are high and will only continue to rise.Economic conditions,tech advancements,channel shifts and personal values all influence their preferences.Retailers and brands need to know their target audience in

76、side and out.New players and partners enter the retail sector every day,which equates to new points of contact that could threaten established customer-brand relationships.Shopper expectations 2024 EUROMONITOR INTERNATIONAL23Personalisation Half of consumers want tailored products or services,and 1

77、in 5 want personalised shopping experiences,according to Euromonitors Voice of the Consumer:Lifestyles Survey 2024,a survey of internet-connected consumers in 40 countries.These sentiments are even higher among connected shoppersa segmentation of the most digitally savvy population.But that shouldnt

78、 come as a surprise.Why?This cohort shops more frequently across online channels where tech integrations like generative AI or AR can create intuitive,customised shopping experiences based on individual needs or preferences.But theres a commercial trade-off here.A significant amount of shopper data

79、is required to cultivate these hyper-personalised touchpoints.Consumers have greater power in this exchange.National and regional governments are introducing privacy-centric regulations that protect user data.Chrome,Safari and Firefox also announced plans to limit third-party cookies,which further r

80、estricts the level of behavioural information that brands can capture across their digital entities.You should continuously improve and adapt your online shopping capabilities to create an intuitive experience.Advanced data collection methods and tech applications help elevate e-commerce stores with

81、 predictive features that can emulate in-person shopping.Source:Euromonitor Voice of the Consumer:Lifestyles Survey,fielded January to February 2024(n=40,236);note:survey respondents are internet-connected consumers in 40 countries;connected shoppers are a segmentation of these consumers that most a

82、ctively participate in a variety of digitally driven activities.Personalised Shopping%of consumers who look for personalised and tailored shopping experiencesConnected shoppersAll respondents010%20%30%40%Connected shoppersAll respondents010%20%30%40%50%60%70%Tailored Products and Services%of consume

83、rs who want products and services that are uniquely tailored to their preferences 2024 EUROMONITOR INTERNATIONAL24Digitalisation The internetand social media,in particulargave people a louder voice,leading to a dispersal of influence and a flux in power dynamics that changed shopper behaviour.Connec

84、ted shoppers,a segmentation of the most digitally savvy population,are empowered,meaning they use social media while shopping.And this cohort is more than three times as likely to interact with brands or retailers on such platforms,according to Euromonitor.People are also open to next-gen tech integ

85、rations.But that threshold varies depending upon the application and its perceived level of intrusiveness.More than 30%of consumers would be comfortable with robots preparing restaurant meals;that rises to 42%for robots providing in-store guidance,according to Euromonitors Voice of the Consumer:Digi

86、tal Survey 2024.Source:Euromonitor Voice of the Consumer:Digital Survey,fielded March to April 2024(n=20,056);note:survey respondents are internet-connected consumers in 20 countries.Next-Gen Tech Applications%of consumers who would be comfortable with the following scenariosRobots providing in-stor

87、e guidanceRobots helping with hotel serviceFacial recognition for personalisationRobots preparing restaurant mealsEmotion tracking for personalisationA microchipped finger for purchases010%20%30%40%50%2024 EUROMONITOR INTERNATIONAL25ValuesAnother driver of purchase decisions:value for money.Finding

88、bargains is the top shopping preference,according to Euromonitors Voice of the Consumer:Lifestyles Survey 2024.But this sentiment declined 15 percentage points over the last decade with the trajectory slowing slightly in recent years due to the cost-of-living crisis.Price is important but not the on

89、ly consideration.Quality,sustainability,convenience or authenticity are examples of additional inputs for measuring the value of a purchase.Personal values can also factor into buying decisions.Globally,30%of consumers buy from brands that support social and political issues aligned with their value

90、s,and 25%will go so far as to boycott brands that dont share in their beliefs.There isnt a big disparity across generations as popular culture might suggest.However,the values-based sentiment is strongest among highly educated city dwellers.1 in 4 consumers will boycott brands that dont share in the

91、ir political or social beliefsSource:Euromonitor Voice of the Consumer:Lifestyles Survey,fielded January to February 2024(n=10,735);note:survey respondents are internet-connected consumers in 40 countries.Source:Euromonitor Voice of the Consumer:Lifestyles Survey 2015 to 2024;note:survey respondents

92、 are internet-connected consumers in nine countries(2015),20 countries(2016),21 countries(2017)and 40 countries(20192024).Bargain Hunters%of consumers who like to find bargains60%50%40%30%20%10%0201520162017201920202021202220232024New business models,channels and shopper expectations dictate the dir

93、ection of the retail landscapeslowly redefining industry standards,customer relationships and the shopping experience.Retailers and brands are forced to adapt as this evolution accelerates.But the drivers behind these shifts can be at odds.Lets revisit personalisation,for example.Consumers expect ta

94、ilored products and services based on their preferences but also need to share their data for companies to develop such moments,which may conflict with their desire for privacy.These contradictory trends create challenges for any retailer or brand to stay relevant in the eyes of their customers toda

95、ylet alone in the future.Euromonitor developed the Retail Reinvention Framework to conceptualise and quantify the biggest tensions that influence industry shifts.This framework can help you predict and prepare for the future of retail wherever you operate.A framework for future growth 2024 EUROMONIT

96、OR INTERNATIONAL27Euromonitors Retail Reinvention Framework explores 12 tensions that are organised into three pillarsshoppers,industry and digitalisation.The tensions depict several trends that can overlap or conflict with one another.Each tension should be viewed as a continuum.How these take shap

97、e and where specific countries,companies or consumers land on the continuum will impact the industry for years to come.2024 EUROMONITOR INTERNATIONAL28Price vs ValuesPrice alone could be the ultimate purchase driver.But more shoppers are weighing a variety of factors like quality,sustainability and

98、authenticity as well as the service and convenience when purchasing to measure the valueor worthof a product or service.Excessive vs Conscious Consumerism focuses on individuals who consume goods and services in large quantitieseven to excess.Not all shoppers have this mindset.Some shoppers are rede

99、fining their priorities in consideration of how their choices impact the environment or society as a whole.Rentals,secondhand items or sustainably manufactured alternatives,for example,are seen as equally viable options that also contribute to the circular economy.Premiumisation vs Commoditisation A

100、 desire for higher quality motivates some shoppers to buy premium.Brands may improve the design of their productor offer additional services or featuresto emphasise quality and justify a higher price point.This means the shopper is forgoing the most basic version in a brands product line,which is st

101、ripped of unique or identifying qualities to keep the price low.Transactional vs Loyalty Loyalty describes an ongoing emotional relationship between a brand and shopper,which manifests in the form of engagement and repeat purchases.The ultimate loyalty litmus test:if a shopper sticks with their favo

102、urite brands despite competitors offering incentives like lower costs or higher convenience.A purchase void of loyalty is merely transactional.ShoppersPulled forward by evolving consumer behaviour and motivation.2024 EUROMONITOR INTERNATIONAL29Efficiency vs EffectivenessA top priority for retailers

103、and brands is offering greater levels of service to their customer base,but this tends to result in higher operational or environmental costs.The decisionto enhance service or effectivenesscomes down to whether the potential value adds will drive enough increased spend or loyalty to offset costs.Ret

104、ailers vs BrandsRetailer-brand relationships are evolving beyond traditional wholesale partners due to emerging strategies like DTC,private labels and retail media networks.The result:retailers operate more like brands,and brands operate more like retailers.The customer relationship becomes an even

105、bigger priority.And these evolving dynamics lead to new models and collaborations.Profit vs Purpose Maximising shareholder profits has long been the primary goal of corporations.Purpose-driven initiatives that give greater emphasis to social or environmental missions also become a strategic priority

106、.Convenience vs Experiential Companies need to balance the demand for ultra-convenience that consumers desire across some types of purchases with personalised,high-touch experiences that showcase brand ethos.IndustryPushed forward by structural shifts and evolving industry trends.2024 EUROMONITOR IN

107、TERNATIONAL30Physical vs DigitalThe digital revolution has been rewiring retail for years,giving way to a complex matrix of where and how consumers might want to discover,engage and shop with retailers and brands,which includes touchpoints across in-person and online channels.Influencers vs Companie

108、s The internet and social media have given individuals a louder voice,leading to a significant dispersal of authority to groups that traditionally had less.Individuals can use social platforms to amass followers and gain influence in brand-consumer exchanges.This power shift is changing how shoppers

109、 discover and buy products and services.Both individuals and influencers are often viewed as trusted information sources over traditional advertising.Companies have less control over brand narrativesand that can positively or negatively impact brand perception.Personalisation vs Privacy Consumers ha

110、ve come to expect brands to tailor products and services to their preferences;however,there is a commercial trade-off in terms of the personal or behavioural data that must be shared to cultivate such moments with individualised limits among consumers.Humanity vs Technology Shoppers are open to tech

111、-driven commerce experiences and making fewer explicit decisions as a result.But comfort levels associated with next-gen tech applications vary considerably based on potential benefit and perceived level of invasiveness.Companies must balance these tech integrations with human interactions across th

112、e customer journey.DigitalisationEnabled by the acceleration of advanced digital capabilities.2024 EUROMONITOR INTERNATIONAL31Now,you have a structured approach to map the future of retail.Euromonitors framework helps you make sense of these trends to sharpen strategic decisions and quickly pivot op

113、erations towards future opportunities.In addition,this framework allows you to consider local or category nuances,enabling you to tailor initiatives in your priority markets.How to use the Retail Reinvention Framework Why should you use this framework?Identify the tensions impacting your business to

114、 support long-term strategic planningExamine the competitive landscape to spot opportunities or threats in the context of these tensions Leverage these insights and Euromonitor data to make informed investment decisionsFollow this process to uncover growth areas and potential challenges for your bus

115、iness.Euromonitors Retail Reinvention Framework should guide your investment decisions to position your company for successno matter where you operate in the world.2024 EUROMONITOR INTERNATIONAL32As a first step,you must understand the lens through which you want to explore your target audience.Cons

116、ider defining characteristics,such as geography or generation.You can use this framework for both a narrow and wider exploration,but insight will vary.A multinational company like Coca-Cola could draw on this framework to understand their customer base on a global scale with deeper dives into priori

117、ty markets.But a regional apparel specialist may skip the global evaluation in favour of a more granular exploration of the key countries where they operate.Once markets of exploration are defined,youll start to unlock the value of this framework.Review each tension and its potential long-term impac

118、t on your strategy.A clear one for Coca-Cola would be physical vs digital.The companys products perform better in a proximity environment due to their weight and impulse nature.But in the age of e-commerce,Coca-Cola will have to ramp up omnichannel capabilities.That tension could also be important f

119、or an apparel specialist,but were going to look at excessive vs conscious in this examplea key one to explore for such players.Given the rise of conscious consumption,apparel retailers are challenged to make clothes in a more sustainable way.Business models are also shifting as renting or buying sec

120、ondhand fashion gain steam.This step is about understanding if your company is keeping pace with pivotal trends like the rise of e-commerce or sustainability in these cases.Framework activation 1.Market context 2.Strategic impact 2024 EUROMONITOR INTERNATIONAL333.Competitive landscape4.Investment de

121、cisionsExamine the competitive landscape to evaluate how you stack up against your competitors in the context of these tensions.Are you a leader or a laggard?Coca-Cola should explore how their omnichannel strategy compares to competitors that face similar challenges with selling beverages online lik

122、e PepsiCo,Keurig Dr Pepper,Red Bull or Nestl.An apparel specialist may want to compare their strategies against global giants like Zara or H&M as well as regional competitors in their markets.This step is not only about your direct competitors but also mapping indirect competition to anticipate pote

123、ntial threats.You should understand their strategies,performance and actions in the context of these tensions to assess your strengths and weaknesses.Your company will be able to make decisions around features,marketing or services that could differentiate your offer to stay ahead of the competition

124、.Once youve identified your target audience,the key tensions impacting your company and the competitive landscape,youll have a clearer picture of where to invest.Keeping with Coca-Cola as an example,next steps may include strategies to help overcome the challenges of buying beverages online.Coca-Col

125、a has taken some steps in Latin America with Coca-Cola en tu Hogar,which gives consumers in Mexico and Colombia the ability to order products on either a subscription or one-off basis directly from the companys e-commerce portal.Coca-Colas Wabi app digitally connects shoppers to their neighbourhood

126、stores,helping to digitise kiosks,bodegas and snack shops across the region.For an apparel specialist grappling with the impact of rising sustainability concerns among shoppers,diversifying its business models could be a prime opportunity.H&M,J.Crew and Kate Spade are among the global brands that ha

127、ve launched an online resale platform with ThredUp specifically.Proprietary secondhand sites are a way for retailers to tap into brand loyalty to create a new revenue stream and further sustainability initiatives.This knowledge helps you determine your best betsfrom diversifying your channel presenc

128、e to expanding into new categories to launching new products.These insights should also tell you where you need to adjust your product offering,marketing strategy or customer experience to stand out.34 2024 EUROMONITOR INTERNATIONALMeet the expert Michelle drives Euromonitors retail and digital rese

129、arch strategy,providing actionable insights into where and how consumers shop as well as the evolving path to purchase.Based in Chicago,she has nearly 14 years of experience in market research.Clients across a range of industries tap into her in-depth knowledge of digital transformation,e-commerce a

130、nd tech innovation to accelerate growth strategies.Recognised as a retail thought leader,she was named a top retail influencer by RETHINK Retail(20212024)and a Woman to Watch by retail social think tank Remodista(2018 and 2019).She also sits on NRFs Industry Partner Council.She shares her expertise

131、across industry events,including NRF:Retails Big Show,Shoptalk,Groceryshop,World Retail Congress,Money20/20,Finovate,eTail,Mobile World Congress and Forum E-Commerce Brasil,as a speaker,chairperson or juror.Leveraging her masters degree in journalism from Northwestern University,she has a reoccurrin

132、g column in Forbes and is regularly quoted in publications globally.Michelle EvansGlobal Lead,Retail and Digital Consumer InsightsEuromonitor International 2024 EUROMONITOR INTERNATIONAL35AppendixPassportPassport is Euromonitors global market research database that provides detailed data and analysi

133、s on industries,economies,countries and consumers.This report includes data from the following Passport subscriptions:Consumer Foodservice,Digital Consumer,E-Commerce,Innovation,Retail and Travel.Data ParametersData source is Euromonitor International unless otherwise specified.Data was analysed in

134、May 2024.Historic value($)data is often shown in nominal/current terms(not adjusted for inflation)and projected($)value data in real/constant terms(adjusted for inflation)using 2023 fixed exchange rates.Voice of the Consumer SurveysEuromonitors annual Voice of the Consumer Surveys help uncover attit

135、udes,values,preferences,lifestyles and buying behaviours.A diverse set of online panellists are invited to participate.At least 1,000 responses are captured per surveyed market.Panellists are pre-screened to ensure that the sample matches each countrys population according to nested quotas for age a

136、nd gender.The Voice of the Consumer:Lifestyles Survey was last fielded in 40 countries in January and February 2024.The Voice of the Consumer:Digital Survey was last fielded in 20 countries in March and April 2024.Connected shoppers:A segmentation of surveyed consumers who often use various forms of

137、 technology,mainly digital and electronic devices and social media,to navigate,interact with and make informed decisions.Includes those interested in the smart home.Voice of the Industry SurveysEuromonitors Voice of the Industry Surveys engage industry professionals to explore trends and innovations

138、.Topics include barriers and keys to successful strategies,new product development plans and the impact of technology,among other areas.Euromonitors Voice of the Industry:Retail Survey was fielded online in July 2023.More than 1,000 professionals working at retailers and brands answered questions re

139、lated to evolving strategies and areas for investment.The other Voice of the Industry Survey used in this report was fielded online in November 2023.Responses from more than 1,000 professionals across sectors were captured with 90 responses from retail professionals.2024 EUROMONITOR INTERNATIONAL36A

140、bout Euromonitor International Euromonitor International is one of the worlds leading providers of global business intelligence,market analysis and consumer insights.From local to global and tactical to strategic,our research solutions support decisions on how,where and when to grow your business.St

141、ay ahead of the generational retail shifts noted in this report with our market research platform Passport and ad-hoc custom research projects tailored to your specific business needs.Youll gain insights to help guide your decisions for market expansion,channel presence,product positioning,customer

142、reach and business investments.Tour the platformFind market entry and expansion opportunities Evaluate the competitive landscape and act quickly on emerging trendsImprove your product and service offeringUnderstand shopper preferences to grow your customer reachOptimise your channel presenceExamine

143、macroeconomic factors impacting demand and business dynamicsHow can Euromonitor support your retail business?2024 EUROMONITOR INTERNATIONAL37About NRFThe National Retail Federation passionately advocates for the people,brands,policies and ideas that help retail succeed.From its headquarters in Washi

144、ngton,D.C.,NRF empowers the industry that powers the economy.Retail is the nations largest private-sector employer,contributing$5.3 trillion to annual GDP and supporting more than one in four U.S.jobs 55 million working Americans.For over a century,NRF has been a voice for every retailer and every retail job,educating,inspiring and communicating the powerful impact retail has on local communities and global