Future Retail Trends 2015
PriceWaterHousecoopers & TNS Retail Forward
Retailing 2015 confirms that the retail industry is becoming more complex and changing at an ever-increasing speed. Shifting demographics, household downsizing, more educated consumers, new channel formats—among other trends—require that the industry quickly adjust and modify existent models, approaches and processes to satisfy the needs of future customers in order to be successful and profitable. Retailing will become an industry that realizes, more and more, that it must tailor its offerings to select customers, as opposed to the mass appeal approach of the 1980s, in order to win over customers and foster greater customer loyalty.
· Changing Demographics:
The Baby Boomers have always been a defining generation and will continue to be so. We believe that the Baby Boomer generation will age with increased financial resources and with a greater emphasis on youth and vitality than previous generations. As a result, they not only will tax manufacturers to adapt products to their
specific post-retirement needs, but also will require retailers to respond to their evolving needs as they approach the age of 70 in 2015. Challenging this older generation will be Generation Y (Gen Y) households, reaching their prime household formation years and attempting to emulate the lifestyle that their Baby Boomer parents have and to which they are accustomed.
Gen Y is a more diverse group in how they shop, where they shop and how they spend their money. As a result, Gen Y will represent a challenge to traditional retailing.
Overlaying these changing demographic patterns will be an even greater shift to multi-culturalism throughout the country. Retailers will need to respond to the tastes, customs, interests, and spending habits of an increasingly diverse population with money to spend. Look for many diverse cultural offerings to become mainstream in the future
· The New Consumer:
The evolving consumer in the near future will not be easy for retailers to understand or master. The value proposition guiding their product purchases is changing; consumers will put heightened emphasis on personalization, look for opportunities where their input matters, and value product and service solutions. Consumers are increasingly proactive in their purchase decisions and selective about with whom they want to do business. Additionally, consumers will increase
their focus on purchasing products from socially.
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