Perhaps never in the history of the industry has each one of retail’s primary stakeholder groups—customers, suppliers, employees, and investors—dramatically changed their behaviour and expectations, all at the same time. In the past, our businesses did well by allocating production tasks to others and using workers from other countries for assembly and timely deliveries. But now, we face many challenges in our global supply chain. We see the constraints of our old habits, from changing customer needs to issues with overseas production and transportation.
What is causing this change in the supply chain? Customers today behave differently. They want things fast, care about the environment, and don’t always stick to one brand. This has led to the ‘zero consumer,’ who shops in many places, wants quick deliveries, and chooses eco-friendly products. Paradoxy, suppliers are now becoming customers. In the past five years, more than 20 big retailers have started third-party marketplaces. This brings new opportunities and concerns in working with suppliers. There’s a growing demand for flexible work, especially in retail jobs. This change is also linked to the growing need for data skills in retail.
At the same time, investors are looking for more than just business growth. They want growth that brings in profit. Because of the challenges exposed by the pandemic, retailers need to find a new balance between growth, profit, and smart investment. Therefore, reinvention is key. Retailers should build strong relationships with customers, suppliers, workers, and investors is essential. Omnichannel go-to-market, environmental consciousness, and a clear plan for the retail world are key. Lastly, using AI and data analysis is influential. From writing good content to improving supply chains and automating tasks, AI is becoming a big part of retail.