Digital Retail Models of the Future

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Digital Retail Models of the Future

Foreword

Susan BarrattCEO, IGD

Retailing is always in a state of flux and new businesses are launched somewhere in the world every day. Companies have never been able to afford to stand still. Nonetheless, we are living in exceptional times, with an extraordinary burst of retail innovation, driven largely by digital developments.

From consumer-to-consumer commerce platforms, through AI-driven supplier management to voice-activated digital shopping assistants, the ingenuity of innovators knows no bounds.

This is not just a battle between new and incumbent companies or between two generations of format, it is also a contest of business models. How valuable is scale compared with agility or in-house capability versus a networked alliance? Should digital platforms be viewed as enablers for retailers or are retailers now competing to be providers for the most popular platforms?

The answers vary by country and culture. It is shoppers who will have the final vote and they won’t place them all in the same boxes. For suppliers, the stakes could not be any higher. Picking the ultimate retail winners amongst so much innovation is incredibly difficult. The logical response is to spread investment but this can only go so far and choosing the right areas for experimentation is a vital decision.

In this, the latest edition of our flagship research series, we explore the global proliferation of retail innovation from three directions: established players, online specialists and the new ecosystems. We believe that plenty of the new emerging models are set to grow and prosper which means established retailers will need to work hard and swiftly, either to limit their impact or to emulate them. We’ve drawn on the knowledge of IGD’s global team of experts. From our offices in the UK, Singapore and

North America, our teams travel the globe to meet with retailers and manufacturers, to see best practice in action and understand how the world of food and consumer packaged goods is developing.

For further information, IGD’s Retail Analysis online service gives you commercial insights on every major CPG retailer in every major market. Our team of expert analysts combine research and market knowledge to forecast market, channel and retailer growth, and to identify the trends set to impact retailing globally.

We can support you in future proofing your business. Our IGD Solutions enable you to get personalised insights and actions based on your individual business needs.

If you’d like to explore working with IGD in this way, please just email us on AskIGD@igd.com.

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Digital Retail Models of the Future

In this report, we present our vision for an increasingly digital retail industry.

We help you:

• Understand the three main retail models competing for ascendancy in an increasingly digital future

• Build your response by offering you a series of predictions for how the models will develop

• Stay one step ahead of the market by building your organisational digital capability

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Foreword

Executive summary

Chapter 1 - Rapid evolution

Chapter 2 - Ecommerce 2.0

Chapter 3 - Ecosystems

The battle between old and new business models

Building digital capability

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Contents

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Lookout for the magnifying glass to learn how Retail Analysis can help

you and your business!

Our vision

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Digital Retail Models of the Future

Executive summaryThe digitisation of the food and CPG industry has proven transformational, yet the story has only just begun.

To help you understand the opportunities and challenges that businesses now face, we have identified three retail models already competing across the globe for predominance in food and CPG and we project how these business models will evolve.

All businesses will need to sharpen their digital capabilities to prosper in this new environment and no one can afford to be complacent. IGD can help you to build a plan to win.

Rapid evolution: Businesses are transforming their established operations through digital technologies to enhance their stores, reduce costs and improve connectivity with customers

Ecommerce 2.0: The first, mainly standardised wave of ecommerce is fragmenting into a variety of creative new ways to sell and add value

Ecosystems: A network of retail and consumer services is emerging, linked by logistics, financial services and technology

Our three digital retail models of the futre are:

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Digital Retail Models of the Future

Digital Retail Models of the Future

Omnichannel

Data-driven

Digital Capabilities

End-to-end

Financial Services

Additional Services

Integration

Logistics

Pureplay

New services

Agility

Supply Chain

FutureRetail

Models

Te

chnology and Data

Shoppers

Rapid EvolutionEcosystems

Ecommerce 2.0

Value

Convenience

Choice

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