Store TrackerWeekly US and UK Store Openings and Closures Tracker 2023, Week 3: US Closures Down 24% Aaron Mark Dsouza, Data Analyst January 20, 2023 Reasons to ReadOur Weekly US and UK Store Openings and Closures Tracker reports on store closures, openings and bankruptcies. Data in this report include: 2023 week-by-week comparisons of announced store closures and openings in the US and the UK 2022 week-by-week comparisons of announced store closures and openings in the US and the UK 2023 major US store closures and openings 2023 major UK store closures and openings Companies mentioned in this report include: Barnes & Noble, Marks and Spencer, Next, Target and Whole Foods Market Other relevant research: Weekly US and UK Store Openings and Closures Tracker 2023, Week 2: UK Openings Up 67% Store Tracker Extra: US and UK Store Openings and Closures 2022 Review and 2023 Outlook The full collection of Weekly US and UK Store Openings and Closures Tracker reports Complementing our weekly report, the Coresight Research US Store Tracker Databank offers our premium subscribers access to openings and closures data from 2012 to 2023 year to date, filterable by sector and year. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Store TrackerStore Tracker Extra: US and UK Store Openings and Closures 2022 Review and 2023 Outlook Aaron Mark Dsouza, Data Analyst January 20, 2023 Reasons to ReadWe review store closures and openings in the US and the UK for calendar 2022. We break down the counts by sector, analyzing which retailers significantly contributed to the total opening and closure counts over the year. We also present our projections for US and UK store closures and openings in 2023. Data in this report include: US store opening and closure counts for 2019 through 2023 (estimated) US store closures and openings by sector in 2022 UK store closures and openings by sector in 2022 Major announced US store closures and openings in 2023 Major announced UK store closures and openings in 2023 Companies mentioned in this report include: Amazon, American Eagle Outfitters, Dollar General, Dollar Tree and Five Below Other relevant research: US Store Tracker Extra, November 2022: Retailers Open 80 Million Square Feet of New Retail Space Click here to view our full collection of Weekly US and UK Store Openings and Closures Tracker and monthly US Store Tracker Extra reports The Coresight Research US Store Tracker Databank offers our premium subscribers access to openings and closures data from 2012 to 2023 year to date, filterable by sector and year—click here to view. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Free Data GraphicCoresight Bites: China Consumer Tracker—Some Positive Trends Despite Overall High Avoidance of Public Places Coresight Research January 19, 2023 Coresight Bites provide free snapshots of Coresight Research data and findings. This graphic presents selected insights from our biweekly survey of China-based consumers. Subscribers can access the full research here. To find out how to subscribe, click here. Seven in 10 consumers in China are avoiding some type of public place. However, the proportions of consumers avoiding certain categories of public place have dropped compared to two weeks earlier, suggesting that the retail impact of this avoidance is uneven. As China continues its recovery from Covid-19, we expect to see an increasing number of consumers return to normal ways of living—a trend that is already starting to play out as respondents reduce their avoidance of entertainment venues and domestic travel. We expect to see a greater return to shopping malls and shops in general in the next couple of months. Click the image below to read our latest China Consumer Tracker report, which provides insights on overall consumer sentiment, changes in consumer behavior and shopping trends amid drastic government policy changes. This document was generated for
Deep DiveInnovator Intelligence: Achieving Social and Live Commerce Success with Authentic, Interactive and Engaging Content Coresight Research Sector Lead: Steven Winnick, Vice President—Innovator Services January 19, 2023 Reasons to ReadSocial commerce is emerging in the West as a powerful channel for brands and retailers to offer customers a highly inspirational, interactive and frictionless shopping experience. We explore four key trends in the social commerce industry—namely, the rise of user-generated content (UGC), the extensive use of augmented and virtual reality (AR/VR) to grow higher engagement, the increase in the popularity of shoppable videos and the spread of livestream shopping in the US. This free report is sponsored by LiSA, which offers software-as-a-service solutions to enable live shopping experiences on e-commerce sites. We outline the company’s offerings and competitive advantages in this report. This report forms part of our Innovator Intelligence series, which focuses on emerging companies that are disrupting traditional retail and fueling innovation across the retail value chain. Data in this report include: Proprietary survey findings—US consumers’ use of social media as part of the shopping process and frequency of watching shoppable livestreams Coresight Research estimates on the growth of the US livestreaming e-commerce market Companies mentioned in this report include: AIMIRR, Amazon Fashion, Avon, Balodana, eBay, Marks & Spencer (M&S), Nordstrom, Olaplex, Snap, Walmart, Wayfair Other relevant research: Click here to read more Innovator Research from Coresight Research. Executive SummaryMarket Scale and Opportunity Social commerce can include any online experience in which social interaction is paired with a seamless path-to-purchase. One such example is shopping through social media platforms. According to a Coresight Research survey conducted in 2022, 90% of US consumers use social media, and 65% use social media as part of the shopping process. Livestreaming is a key component of the social commerce market, and it is growing rapidly in the West: we estimate that the US livestreaming e-commerce market will grow to $68 billion by 2026. We also expect the growth of the US social commerce market to be driven by rising consumer demand for UGC (user-generated content) and extensive use of advanced immersive technologies. Coresight Research Analysis One notable form of UGC—images, videos, reviews, etc., created and shared by consumers on online platforms—that is relevant to retail is product recommendations and reviews, which shoppers often rely on to influence their purchase decisions. UGC has three main benefits in retail marketing: it establishes trust and credibility among consumers; it helps in the creation of a community; and it saves time and money. AR and VR technologies enable brands and retailers to offer entertaining and immersive experiences that attract and engage customers—tapping the benefits of shopping both online (such as convenience) and in-store (trying on products). Shoppable video ads and livestream shopping allow shoppers to purchase products directly via embedded links within the video or livestream. This helps businesses bridge the gap between discovery and purchase by enabling instant conversion There is rising interest among brands and investors in shoppable video advertising, with some already using the format to simplify the checkout process and drive conversion. What We Think Social commerce is experiencing promising growth in the US and is likely to become one of the most popular marketing and sales channels among brands and retailers. Furthermore, as shoppable and live-video content integrations speak to increasing consumer demand for seamless online shopping experiences, we expect more retail companies to enter the livestreaming e-commerce space. Retail companies can work with tech providers to maximize the sales-generating potential of livestreams on both owned or third-party sites, providing a seamless shopping journey that boosts engagement, loyalty and conversion. Introduction Social commerce is emerging in the West as a powerful channel for brands and retailers to offer customers a highly inspirational, interactive and frictionless shopping experience. Social commerce can include any online experience in which social interaction is paired with a seamless path-to-purchase. Examples include shopping through social media platforms, in-game shopping and livestream shopping. The social commerce ecosystem comprises three layers: Social channels—including social media platforms, news apps, messaging apps and video/audio platforms Social commerce marketplaces—spanning livestreaming shopping, peer-to-peer marketplaces, social shopping websites/apps and group shopping Technology integration—for storefront creation, data analytics, creator affiliate programs and user-generated content (UGC) enablement In this Innovator Intelligence report, we discuss key opportunities in the US social commerce market, covering UGC, advanced technologies and livestreaming. This report is sponsored by LiSA, which offers software-as-a-service (SaaS) solutions (ranging from no-code to enterprise to headless) to enable live and social shopping experiences on e-commerce retailers’ and media platforms’ websites. We outline the company’s offerings and competitive advantages in this report. Market Scale and Opportunity According to the Coresight Research US Social Commerce Survey 2022, conducted online in March 2022, 90% of US consumers use social media and 65% use social media as part of the shopping process—for discovering, researching or purchasing products. Comparing this to our survey findings two years prior, we can see that consumers are increasingly using social media for shopping: in March 2020 (effectively pre-pandemic), the adoption rate was 8.0 percentage points lower, at 48%. Livestreaming is a key component of the social commerce market, and it is growing rapidly in the West (following the success and continued growth of the established market in China). We estimate that the US livestreaming e-commerce market will grow at a CAGR of around 36% from $20 billion in 2022 to $68 billion in 2026, when livestreaming sales will account for over 5% of total online sales in the US. In addition to livestreaming, we expect the growth of the US social commerce market to be driven by rising consumer demand for UGC and extensive use of advanced immersive technologies. We will see more brands and retailers turn to the channel to tap opportunities to expand their digital footprint and offer interactive shopping experiences, gaining a competitive edge in the increasingly crowded online space. Sophie Frères, Co-Founder and CEO of LiSA, told Coresight Research that the Western e-commerce market is beginning to enter the maturity phase when it comes to embracing live and social commerce, but it is highly fragmented. LiSA anticipates e-commerce retailers shifting to a “community-led, UGC and thus ‘always on’ approach” to livestream shopping in the short term. This would translate to better organic growth along with lower customer acquisition costs versus traditional marketing. In the long run, the company envisages a social commerce ecosystem in which all players work together to offer consumers a seamless discovery and purchase experience. Achieving Social Commerce Success with Authentic, Interactive and Engaging Content: Coresight Research x LiSA Analysis In Figure 1, we present four opportunities that brands and retailers can tap to achieve success in the US social commerce space. We explore each in detail below. Figure 1. Four Key Opportunities in US Social Commerce Source: Coresight Research UGC Can Boost Customer Engagement UGC is any form of content—images, videos, reviews, testimonials or even podcasts—that is created and shared by consumers on online platforms. One notable form of UGC that is relevant to retail is product recommendations and reviews, which shoppers often rely on to influence their purchase decisions. UGC is effective because it is built on trust between peers. In our US Social Commerce Survey 2022, positive reviews ranked the second most cited reason for shopping on social media platforms, cited by 54% of consumers who use social media as part of the shopping process (behind “great deals,” which was cited by 56%), reflecting consumer demand for community engagement. Additionally, 61% of marketers have plans to incorporate more UGC into their marketing strategy, according to a survey of 500 global consumers and marketers conducted by US-based UGC platform Tintup in January 2022. Online furniture store Wayfair has been running an engaging UGC campaign #WayfairAtHome. The social media campaign allows Wayfair customers to share their experiences with Wayfair products. It had gained nearly 57,000 post shares as of November 25, 2022. #WayfairAtHome campaign on Instagram Source: Wayfair’s Instagram account Chipotle ran a UGC campaign #guacdance challenge on TikTok on National Avocado Day in 2019. The hashtag gained 250,000 video submissions. Below, we highlight three key benefits of using UGC for marketing purposes. Establishes trust and credibility among consumers Authenticity and relatable content are powerful drivers of engagement on social networks. Our US Social Commerce Survey found that 30% of social media shoppers who follow influencers/celebrities on social media follow real customers, reflecting an appetite for UGC that brands can capitalize on to build trust and credibility among shoppers. Helps in the creation of a community UGC allows consumers to become a part of a brand’s growth by integrating them into an engaged brand community. Consumers that create and interact with UGC become brand advocates and can influence the shopping decisions of other people with similar likes and dislikes with their content. Through engaged users, brands are able to build relatable narratives across social media, improve authenticity and better target potential customers. Saves resources—time and money UGC is an inexpensive and time-efficient form of advertising, which can be particularly beneficial for small businesses. Unlike influencer marketing, brands do not have to pay anything to the creator or hire an agency to run and manage these campaigns. Reality Technologies Improve Immersiveness Consumers are open to using reality technologies in the shopping journey: 84% of AR users or future users in the US are interested (somewhat or very) in using augmented reality (AR) to interact with a product before buying, according to the 2022 Ipsos Augmentality Shift Study, (a global consumer survey conducted by market research firm Ipsos and Snap, parent company of social media platform Snapchat, in April 2022). AR and virtual reality (VR) enable brands and retailers to offer entertaining experiences that attract and engage customers—tapping the benefits of shopping both online (such as convenience) and in-store (trying on products). Virtual try-on helps customers gain confidence in their purchase decisions, increasing conversion and reducing product returns for brands: four in five (81%) US shoppers feel more confident in their purchase a result of using AR, according to the 2022 Alter Agents study commissioned by Snap and Publicis Media. In November 2022, Amazon Fashion partnered with Snap to create an AR fashion experience that allows customers to try on eyewear in Snapchat before making a purchase via the Amazon Fashion store. Muge Erdirik Dogan, President of Amazon Fashion, said that through this initiative, Amazon Fashion is further expanding its AR shopping capabilities for the new generation of digital shoppers. New shopping lens for trying on eyewear, available on Amazon’s public profile on Snapchat Source: Snapchat On October 20, 2022, Seattle-based live-video shopping app AIMIRR partnered with Chicago-based custom clothing marketplace Balodana to offer virtual try-on during livestreaming using AIMIRR’s real-time AI (artificial intelligence)-driven garment rendering technology. Online customers can scan a QR code on their mobile phones to activate the technology, which overlays images of clothing on a live video of the individual, using their cameras. Shoppable Video Ads Bridge the Gap Between Discovery and Purchase Shoppable video ads allow shoppers to purchase products directly via embedded links within the video. This helps businesses bridge the gap between discovery and purchase by enabling instant conversion rather than requiring shoppers to search for featured products on different e-commerce sites (which would be an inconvenience that may prompt them to abandon the purchase). Shoppable video ads on The Fresh Market’s website as of November 25, 2022 Source: The Fresh Market Social media platforms, including Pinterest and YouTube, have already integrated tools for shoppable video advertising. There is rising interest among brands and investors in shoppable video advertising, with some already using the format to simplify the checkout process and boost conversion (including US supermarket chain The Fresh Market, pictured above). In March 2022, US-based haircare brand Olaplex launched shoppable video ads on its website. As part of its marketing strategy, the company has videos featuring UGC from real customers and employees on its homepage. Each video has a product link that allows customers to add the featured product directly to their carts—simplifying the checkout process. According to Olaplex CEO JuE Wong, since the launch of the shoppable videos, the haircare brand has witnessed great engagement, leading to an 80% increase in website conversion and a 15% increase in average order value. LiSA’s shoppable video solution allows retailers and brands to easily embed shoppable videos anywhere on their e-commerce sites. Creating engaging shoppable videos allows businesses to attract more customers, according to the company. Global beauty brand Avon leverages LiSA’s shoppable video platform to post shoppable video feeds on its site. Shoppable videos and livestreams on Avon’s website Source: Avon/LiSA Livestreaming E-Commerce Is Gaining Traction As we discussed earlier, we see livestreaming e-commerce as having promising growth potential in the West over the next few years. Livestreaming allows for a new level of interaction between a brand and shoppers during the path to purchase. Hosts (content creators, store associates or influencers) demonstrate products live, and viewers can make comments or ask questions using chat functionality, providing a touchpoint for brands to connect with customers, influence purchase decisions and improve conversion. LiSA’S livestream shopping platform allows live interactions using chat functionality Source: LiSA The Coresight Research US Livestreaming Tracker found that adoption of livestreaming in the shopping process among US consumers has increased since the start of the year: the September 2022 survey showed that 54% of respondents have watched a shoppable livestream—up from 32% in February 2022. Furthermore, two in five (39%) respondents reported in September that they had bought products through shoppable livestreams in the past three months. We also tracked a high frequency of engagement in livestreaming, with 89% of livestream viewers reporting that they watched shoppable livestreams at least once a month in the past three months (whether live or on demand)—and half reported watching at least a few times a week (see Figure 2). Figure 2. Frequency of Watching Shoppable Livestreams (% of Respondents) Base: 506 US respondents aged 18+ who have watched a shoppable livestream in the past three months, surveyed in September 2022 Source: Coresight Research There are two ways in which retailers and brands are offering livestream shopping experiences to their customers, which we discuss below. Using third-party platforms Brands and retailers can host livestreaming events on third-party platforms such as social media apps (Instagram, Pinterest, Snapchat) and online marketplaces (Amazon, eBay, Etsy). Twitter launched an e-commerce initiative in November 2021 that included a livestream shopping option for retailers and brands. Since the Live Shopping platform launch, Twitter has partnered with various brands and retailers, including Samsung and Walmart, for livestreaming. Walmart was the first retailer to test Twitter’s livestream shopping platform with a session that saw musician and creator Jason Derulo review various products; users were able to shop the featured products through Walmart’s Twitter page. eBay announced the launch of its livestreaming shopping platform, eBay Live, in June 2022. The platform focuses on selling trading cards and collectibles and driving engagement among the collector community. The first livestream session (held in June 2022) offered rare trading cards from eBay seller Bleecker Trading and was hosted by trading-card enthusiast DJ Skee. Setting up their own livestream shopping channels Technology providers help brands and retailers to integrate livestream shopping features into their own e-commerce sites. US-based department store chain Nordstrom launched a shoppable, interactive livestream shopping platform in partnership with LiSA in March 2021. The livestream channel streams various shopping and styling events, including live beauty tutorials, and programs featuring designers such as Charlotte Tilbury and Anastasia Soare. Company and Solution Overview: LiSA Headquartered in Germany with teams spread internationally, LiSA offers software-as-a-service (SaaS) solutions for e-commerce retailers and media platforms to bring social commerce experiences to their online audiences. These solutions range from no-code to enterprise to headless depending on the use case that a brand desires to enable. The company’s clients include global brands such as Avon USA, L’Oréal and Marks & Spencer (M&S). LiSA’s solutions enable brands and retailers to create proprietary live shopping experiences through a customized and, if desired, headless content management system (CMS), allowing them to push hosted content simultaneously to social media platforms such as Instagram and TikTok. LiSA offers three live shopping solutions—LiSA POP, LiSA DAZZLE and LiSA SHINE (see Figure 3)—as well as Shoppable Videos, a white-label SaaS solution that allows retailers to use LiSA’s video-editing tools and embed shoppable videos on their websites (including past livestream events). It has also recently launched a white-label solution called Shoppable Short Stories (think social media comes to e-commerce), embeddable anywhere on a brand’s website, through which a brand can invite its community to become direct on-site content creators. Figure 3. LiSA’s Live Shopping Solutions for Brands and Retailers Source: LiSA/Coresight Research The company also offers back-end SDKs (software development kits) for large e-commerce retailers and marketplaces that want to develop their own front-end experience through a browser or app, while leveraging LiSA’s suite of headless back-end services. This capability makes LiSA a leading enterprise-ready live-commerce solution provider globally. Most recently, in August 2022, LiSA secured funding of €2.7 million ($2.8 million) during a seed round led by TechVision Fonds and joined by Venrex and angel investor Georgie Smallwood (part of Accel’s Scout program and Chief Product Officer at micro-mobility startup Tier). Competitive Advantage LiSA’s competitive advantage lies in the flexibility of its products to cover a broad range of application use cases, from no-code live shopping solution (LiSA POP) to a full-fledged community-led enterprise livestreaming tool (LiSA SHINE). Its enterprise live shopping solution can easily be scaled out among its clients’ communities and livestreaming partners, enabling rapid and organic channel growth. The company focuses on designing social commerce products that allow brands, retailers and media platforms to manage content from multiple creators in a decentralized manner simultaneously. According to LiSA, its clients have achieved increased conversion rates (of up to 37%), social sharing rates of up to 43% and engagement of up to 91% using its solutions. Livestream session hosted on Coach’s website, powered by LiSA Source: Coach Outlet Case Studies Avon Global beauty brand Avon USA partnered with LiSA in 2020, using LiSA POP to set up its first livestream shopping event, with real-time audience interaction and a frictionless path to purchase. In total, 17,000 brand representatives attended the event online. Avon witnessed 90% engagement on its website, with total sales reaching $1.3 million. Avon now hosts regular shopping events on its website using LiSA DAZZLE. The company utilizes a community-led strategy to offer customers fresh, exciting and authentic services. The new strategy has helped Avon generate 90% audience chat engagement and social sharing rates of up to 43% (meaning that up to 43% of people in a live show will invite a friend to join). M&S M&S, a British retailer of food, clothing and homeware, first partnered with LiSA in 2021 to power a few live shopping events for members of its loyalty program. M&S Home Decoration interactive livestream shopping session on its website Source: Marks & Spencer The retailer has continued to work with LiSA in 2021 and 2022 to launch multiple weekly interactive and shoppable livestreams that enable customers to discover new products and pose live questions to an M&S expert. On the partnership, LiSA stated: What made M&S stand out very early was its willingness to embrace its own community of experts for content. The vast majority of its live shopping shows are hosted by in-house buyers, stylists or in-store colleagues. This community-generated content is a big hit with customers, as evidenced by above-industry-average viewing times of 40% (i.e., on average, audiences stay to watch 40% of a total live show). This community-led approach also offers M&S the advantage that the content is quick and easy to produce; it is therefore faster to scale its activities. What We Think Social commerce is experiencing promising growth in the US and is likely to become one of the most popular marketing and sales channels among brands and retailers. Furthermore, as shoppable and live video content integrations speak to increasing consumer demand for seamless online shopping experiences, we expect more retail companies to enter the livestreaming e-commerce space. Implications for Brands/Retailers Brands and retailers should experiment and use innovative and authentic UGC to connect with their customers, as well as leveraging community-led engagement to enhance discovery and allow shoppers to make more educated purchase decisions, which positively impacts returns rates. Leveraging live shopping to grow their community directly in an organic way helps brands, retailers and media platforms to attract new customers through existing customers and thus significantly reduces customer acquisition costs compared to classic “top-of-the-funnel” digital marketing activities. Brands and retailers that want to offer livestreaming shopping experiences to customers can do so via their own websites or through third-party platforms; they need to use the most appropriate channels to connect with their target consumers. Retail companies can work with tech providers to maximize the sales-generating potential of livestreams on both owned or third-party sites, providing a seamless shopping journey that boosts conversion. Implications for Technology Vendors As the needs and goals of different-sized retailers vary, technology providers should offer a range of solutions that cater to specific requirements and enable retail companies to enhance their social commerce capabilities. Technology providers can offer scalable solutions that facilitate brands’ and retailers’ entry into the social commerce space as well as their growth and development in the channel as they build on their experiences. About Coresight Research Innovator Intelligence Coresight Research Innovator Intelligence reports are produced in partnership with leading firms in the retail, technology and startup ecosystems. These reports present expert analysis and proprietary data on key topics in the retail, technology and related industries, and enable partner companies to communicate their brand and messaging to a wider audience within the context of brand-relevant research. This document was generated for
Event CoverageCES 2023: Metaverse Highlights—Exploring Key Innovations in Augmented Reality, Artificial Intelligence and Immersive Technologies Tej Kamaraju, Analyst January 18, 2023 Reasons to ReadThe Coresight Research team attended CES 2023 in Las Vegas on January 5–8, 2023. This year, the show had a strong metaverse focus. In this report, we present key metaverse-related insights and developments from the event, covering augmented reality (AR), immersive and artificial intelligence (AI) technologies. Companies mentioned in this report include: Graffity, iRomaScents, LG, Miros, Pantheon Lab, Port 6, Recon Labs, SparX, StoryFile, TCL Other relevant research: CES 2023 Wrap-Up: Lots of Gadgets but Less Sizzle Insights from CES Day Two Insights from CES Day One Highlights from the CES product showcases—ShowStoppers,Pepcom Digital Experience!, CES Unveiled Media Days at CES 2023 Executive SummaryThe Coresight Research team attended CES 2023 in Las Vegas. In this report, we present key metaverse-related insights and developments from the event. Coresight Research Insights While many software developers anticipate that virtual reality (VR) will be a portal to the metaverse and Web 3.0, many solutions are concentrating on augmented reality (AR) technologies, which offer comparable degrees of immersion but also powerfully link the real and virtual worlds. In the near future, with advancing immersive technologies, it may be possible for metaverse users to realistically experience natural senses in virtual settings. Developers leveraging artificial intelligence (AI) technologies can enhance graphics and improve virtual interactions between humans and technology Introduction The Coresight Research team attended CES (formerly the Consumer Electronics Show), hosted by the Consumer Technology Association (CTA) in Las Vegas from January 3, 2023 to January 8, 2023. The event brought together technology vendors, innovators, retailers and people from around the world to get an early look at key consumer electronics trends in the new year. The scope of CES has expanded in recent years beyond electronic gadgets to encompass new areas such as healthcare, wearable devices and mobility. This year, CES had a strong metaverse focus. In this report, we present metaverse-related insights and technologies from the full event. Metaverse Highlights from CES 2023: Coresight Research Insights 1. AR Will Link the Real and Virtual Worlds While many software developers anticipate that virtual reality (VR) will be the most immersive portal to the metaverse and Web 3.0, many solutions seem to be concentrating on augmented reality (AR) technologies, which offer comparable degrees of immersion but also powerfully link the real and virtual worlds. There were numerous examples of cutting-edge AR solutions and technology at CES, and we believe that individuals will reach the metaverse more easily and practically by using AR. At CES, we saw many examples of advanced AR solutions and technologies, and we believe that AR will be a practical and simple way for users to gain access to the metaverse. We detail notable exhibits and startups working on AR and immersive display technologies below. TCL and Canon: Following the trend of developing lightweight, easy-to-use AR spectacles, electronics manufacturers TCL and Canon both revealed new glasses. TCL’s RayNeo X2 device is one of the first binocular full micro-LED optical waveguide AR glasses; it will have impressive abilities to display immersive and non-intrusive projections. Canon’s MREAL mixed-reality visor is still in the research phase. This lightweight solution may have both industrial and consumer use cases as the metaverse and the real world converge. Graffity: Japan-based game developer Graffity utilizes ultra-lightweight AR spectacles developed by AR company Nreal to provide users with immersive games based on hand-tracking and AI (artificial intelligence) algorithms, which significantly improve immersion. Typically, hand tracking is associated with VR and fully immersive experiences; however, Graffity demonstrates that there are AR applications for it which may be easier for users to feel immersed in given limitations in VR technologies. Graffity’s Hand-Tracking Sushi Game Source: Graffity Port 6: Port 6 is a technology developer that is working to bridge the interaction gap between humans and machines. It has developed an AR-based wristband that tracks hand movements and gestures, allowing users to navigate devices simply by moving their hand through the air. The wristband also simulates virtual touch, utilizing AI to provide realistic simulations and building on datasets to continually improve immersiveness and interactions. In the metaverse, it will be crucial for users to control avatars and actions with hand gestures, as they would in the real world. Port 6 AR hand tracking Source: Coresight Research Recon Labs: Based in South Korea, Recon Labs is an AR product creation tool that helps shoppers visualize online purchases. Recon Labs has developed a platform, PlicAR, which is capable of capturing 2D objects and images and instantly creating a 3D asset. This type of technology is important for brands and retailers as they look to virtualize shopping experiences. In the future, we believe that many products, virtual and real-world, will be represented by NFTs (non-fungible tokens); providing realistic products online will be crucial to selling to users in various countries and locations. Recon Labs’ 3D creation Source: Coresight Research SparX: Israel-based startup SparX has created an AR tool that allows real estate agencies and businesses to easily overlay physical spaces with a catalogue of 3D-generated furniture. This type of technology will allow businesses, and perhaps eventually users, to virtualize their physical spaces, test new decoration ideas and achieve high levels of home personalization and customization. SparX AR Overlay for Physical Spaces Source: Coresight Research Arti AR: Arti AR overlays AR assets on live video. As the enterprise metaverse begins to take shape and companies continue to offer hybrid work, Arti AR’s tool could be important for improving workplace interactions and productivity. Cellid: Cellid is developing waveguide-architecture display modules for AR glasses and high-performance spatial recognition software, with a focus on nanotechnologies and AI. The company’s goal is to enhance the user experience across various devices, including smartphones, tablets and smart glasses. Realistic and unobtrusive projections are superimposed over the users’ field of vision using Cellid’s AR glasses. Cellid AR spectacles Source: Coresight Research Oorym: Israel-based startup Oorym has created an AR projection lens based on waveguide technology. A seamless image is projected onto the lens of AR glasses, enabling users to have seamless immersive experiences. OORYM AR Projection Lens Source: Coresight Research 2. Tech Innovation Continues To Improve Immersiveness At CES, we observed many developers creating technology that will eventually make it possible for users to realistically experience nearly every sensation, from smell to touch to sound, in the metaverse, which will likely increase the number of hours per day a user spends within an experience, helping the metaverse to take shape. Below, we explore notable examples of solutions being developed to improve the Web 3.0 user experience. Diver-X: Diver-X has developed the “ContactGlove,” a haptic glove that the company aims to fully replace VR controllers, allowing users to perform virtual actions much as they would in the real world. The glove tracks finger movements, and Diver-X claims it is cheaper than traditional haptic gloves, though they will still cost just under $500. Haptic gloves are important for immersion, and as they continue to improve, they will likely be crucial for Web 3.0 adoption, providing non-gamers, who are unfamiliar with traditional gaming controllers and their layouts, with a sense of familiarity. LG: LG revealed its 45-inch OLED 240Hz (refresh rate) UltraGear 45GR95QE curved gaming monitor, which significantly improves immersion for gamers, perhaps even reducing the need for VR headsets, which are still extremely expensive and have given many users a slew of issues. Skyted: Mask-technology company Skyted has developed a voice-silencing mask. Although it is not specific to the metaverse, the product will likely be a crucial piece of technology for improving immersion. With a silencing mask, users will be able to access the metaverse from anywhere, at any time, in a private setting. The mask features a built-in microphone to allow users to communicate with friends and in virtual world settings without being heard in the physical world. Vivoka: Studios such as Vivoka’s could eventually be an important technology for easily automating interactions in the metaverse and ensuring a chatbot or virtual idol is sufficiently customized for the specific brand or retailer and is able to seamlessly manage customer interactions at all hours of the day. iRomaScents: Israel-based startup iRomaScents has created a device for retail and home experience that replicates scents, called iRomaScents Digital Scent Generator. Although it is mainly being marketed as a solution for retailers for shopping experiences and sampling scent-based products, IromaScents believes that its device can be linked (through cellular or Wi-Fi) to virtual experiences, autonomously producing scents when users enter certain experiences or activate scents based on their location. iRomaScents Digital Scent Generator Source: Coresight Research OVR Technology: OVR has developed scent reproduction for the metaverse and immersive experiences. A single cartridge containing various scents can be combined to reproduce thousands of digital versions of well-known scents, and can be autonomously triggered by location in the metaverse. OVR Technology’s scent-creation technology Source: Coresight Research 3D Game Market: Gaming startup 3D Game Market has developed a monitor that will allow gamers and users to turn almost any video game into a 3D experience through a traditional 2D monitor, without glasses or AR/VR headsets. Technologies such as these monitors are important bridges to Web 3.0 and the metaverse; it is difficult to obtain a fully immersive experience without headsets or goggles, but this monitor can help to bridge the gap. 3D Game Market at CES Source: Coresight Research OmniPad: Immersive technologies were a large focus at CES, but one of the most unique products we saw was OmniPad, a multidirectional “treadmill” for users to explore the metaverse and virtual worlds as they would in the physical world without having to worry about their position or being distracted by running into objects in the real world. Hardware such as OmniPad will be critical for providing a realistic experience in the metaverse. OmniPad’s VR treadmill Source: Coresight Research Miros: Swiss-based VR company Miros has developed a robotics surface for VR experiences. When a user is immersed in a virtual environment, the surface changes as the user moves throughout the environment and performs different actions. The Miros surface can be used, for instance, to stimulate real-world senses based on what is happening in the virtual environment—an important product for improving immersion and making the metaverse a more realistic experience. Miros Interactive VR Surface Source: Coresight Research MEDA.OOO: Personalization will be one of the key factors influencing metaverse and Web 3.0 immersion. MEDA.OOO is creating highly customizable virtual avatars for users to explore multiple virtual platforms, also opening the door for interoperability across virtual worlds and blockchains. MEDA.OOO avatars feature over 30 parameters just for facial expression, allowing users to express and customize their virtual selves in millions of different ways. MEDA.OOO is able to generate 3D avatars directly from 2D images; the 3D avatars are also capable of performing lip syncing, mimicking how humans speak. MEDA.OOO Virtual Avatars Source: Coresight Research Pantheon Lab: Pantheon Labs is an “idols-as-a-service” startup that provides brands and retailers with a digital studio to create their own digital human influencers in what they claim to be minutes. Pantheon Labs also utilizes deep learning and generative AI algorithms to quickly create hyper-realistic eye-catching marketing videos utilizing idols that are indistinguishable from humans, enabling brands and retailers to maintain greater control over marketing efforts by launching new campaigns at any time that perfectly align with their values and narratives. Fresh and innovative marketing campaigns that can be controlled for high levels of personalization may significantly improve interaction and immersion. Digital humans created by Pantheon Lab Source: Coresight Research G’Audio Lab: Leveraging AI to analyze vast datasets, G’Audio Lab is a software developer that has created audio technology for the metaverse. Using its software, headphones are able to provide directional sound, autonomously increasing and decreasing volume, or playing various sounds, depending on virtual location. G’Audio Lab’s software and similar technologies will likely play a key role in metaverse immersion as they set the stage for users to hear in the metaverse as they would in the real world. G’Audio Lab’s AI-based Metaverse Audio Source: Coresight Research Meloscene: California-based VR platform Meloscene has created a virtual collaborative studio in which musicians can interact with one another in real time, listening to each other’s music and performing together in a virtual studio. Leveraging audio, VR and AI technologies, Meloscene’s platform allows artists and creators from all over the world to collaborate in a single location as if they were physical with one another—a concept that is at the heart of the metaverse. Meloscene, an interactive VR music platform Source: Coresight Research AI Will Be Key to the Evolution of the Metaverse AI is just scratching the surface of what it will be able to accomplish. Many developers at CES are beginning to utilize advancements in algorithms such as deep learning, natural language processing (NLP) and machine learning. We believe that AI will transform the metaverse in the near future as it will allow developers to create enhanced virtual simulations and graphics and completely automate interactions with customers through virtual assistants. Below, we explore innovative exhibits and examples of how developers are incorporating AI to enhance graphics and improve interactions. MeetKai: MeetKai is an advanced conversational AI solution that can understand customer queries and produce realistic speech while recalling context for a true, multiturn conversation and meaningful dialogue/interaction with customers, according to the company. Talkr.AI: Voice agent developer Talkr.AI provides a no-code platform for brands, retailers and businesses to create voice agents across multiple channels. Utilizing AI technology, voice agent “Ivy” works with massive datasets and NLP algorithms to provide a seamless customer interaction experience with a consistent idol across multiple channels, whether on a regular website or within an immersive metaverse experience. Talkr.AI claims that Ivy increases personal assistant performance by 30%. Talkr.AI offers AI-based, omnichannel virtual assistants Source: Coresight Research PONS.AI: AI’s ability to create content continues to improve significantly. Applying AI’s ability to seamlessly generate content, NFT-creator PONS.AI applies AI-based generative algorithms to create NFT-based artwork that can be imported into The Sandbox metaverse. Land parcels in The Sandbox, represented by NFTs, can be customized and designed with AI, making it easy for a user to purchase and decorate their virtual space. PONS.AI provides AI-generated NFTs Source: Coresight Research StoryFile: Conversational AI company StoryFile created Conversa, an application that provides businesses with the means to create interactive videos that “converse” with a customer or user. The technology underpinnings of what StoryFile describes as ”Video 3.0” are provided by its ”Natural Conversation Storytelling System” and “Artificially Intelligent Interactive Memory System,” which the company has obtained patents for. As more storefronts and retailers virtualize in-store experiences and add more digital elements, this type of technology could be crucial from a customer service standpoint, enabling retailers to provide automated interactions between digital agents and customers that are virtually indistinguishable from human conversations. Conversa AI videos Source: Coresight Research This document was generated for
Event CoverageDay Three at NRF 2023: Retail’s Big Show—Quick Wins Are Key for 2023 Across Forecasting, Personalization and NFTs Charlotte Rothschild, Analyst January 18, 2023 Reasons to ReadThe Coresight Research team attended NRF 2023: Retail’s Big Show in New York City. In this report, we present insights from the third and final day of the event, with highlights covering personalization in beauty retail, demand forecasting, virtual try-on technologies, data analytics and more. Companies mentioned in this report include: Ahold Delhaize, Albertsons, Charles Schwab, HEB, LVMH, Planalytics, Relex Solutions, Target, Tractor Supply Other relevant research: Insights from NRF 2023: Day One, Day Two Global Retail in 2023: Five Forces and Five Trends The Coresight Research RESET framework Insights from last year’s NRF event Look out for our wrap-up of NRF 2023. Executive SummaryThe Coresight Research team attended NRF 2023: Retail’s Big Show in New York City. In this report, we present insights from the third and final day of the event. Coresight Research Insights Retailers are seeking to improve supply chain management, analysis of consumer demand and preparation for a likely challenging economic environment in 2023. Retailers are using emerging technology to engage consumers by highlighting their brand heritage through non-fungible tokens (NFTs), empowering their own employees and building immersive, personalized experiences to retain loyal consumers. Retailers are harnessing new technology tools, including artificial intelligence (AI), to eliminate business bottlenecks by transforming data into actionable insights. Introduction The Coresight Research team attended NRF 2023: Retail’s Big Show in New York City during January 15–17, 2023. NRF is an annual event hosted by the National Retail Federation, bringing together retail technology innovators, industry experts, brands and retailers to participate in panel discussions, present on key topics in retail and showcase their solutions. In this report, we present highlights from the third and final day of the event, framing our insights around the Coresight Research RESET framework. The Coresight Research RESET Framework As part of Coresight Research’s Retail 2023 series, we released our Global Retail in 2023: Five Forces and Five Trends report, which reiterates our RESET framework for retailers to respond to short-term consumers needs while securing long-term success. In order to brace for headwinds in the coming year, including high inflation and interest rates, the RESET Framework calls for retailers globally to be: Responsive… to accelerated structural frugality Engaging… to drive long-term loyalty Socially Responsible… as a buttress against trading down Expansive… to pursue alternative revenue opportunities Tech-Enabled… to empower a productivity push NRF 2023 Day Three: Coresight Research Insights During the final day of the conference, we emphasize our insights across responsive, engaging, and tech-enabled themes. We observed that retailers were laser-focused on how to respond to a year of challenges ahead, aiming to keep loyal consumers engaged and leverage technology to optimize business every step of the way. Responsive As part of our RESET framework, Coresight Research defines “responsive” as being tuned in to consumers’ shifting needs and expectations. “Responsive” encompasses the strategic agility that retailers need in the current uncertain and volatile macroeconomic environment, as we expect to see more consumers trading down and exercising greater basket fragmentation in the coming year. During the third day of the conference, retail executives discussed 2023 economic trends, increasing supply chain visibility and improving demand planning. 2023 Economic Trends That Retailers Should Consider Retailers need to understand the current uncertain macroeconomic environment and how to prepare for a looming recession. Liz Ann Sonders, Managing Director, Chief Investment Strategist at Charles Schwab, argued “whether its officially called a recession at this point is academic.” Sonders offered insights for retailers into trends in the current climate: Long-term trends with positive effects for business include the economy slowly shifting to be more investment-driven across every industry, the shift toward hybrid working and increasing digitalization. Supply chain management must continue to adapt, and near-term inventories need to be worked through. We are seeing the end of a two-to-three-decade era where cheap goods, cheap energy, and cheap labor reflected China’s ascendency. We are in an era of great moderation, and inflation will probably settle at a higher level than previously. The labor shortage is shifting the balance of power from capital and profits to labor. US personal consumption expenditure: services relative to goods, 2010–2022 Source: Bloomberg/Charles Schwab/Coresight Research CPI annualized % change for goods excl. food and energy and services excl. energy services, 2010–2022 Source: Bloomberg/Charles Schwab/Coresight Research Enabling End-To-End Supply Chain Visibility Achieving agile and flexible supply chains in grocery poses a number of challenges for grocers, who may manage many brands and need to efficiently handle a mix of dry and fresh produce. During a session titled “Delivering for the omnichannel customer with agility and precision, produced by Relex Solutions,” executives at Ahold Delhaize USA (ADUSA) companies discussed their partnership with supply chain solution provider Mikko Kakkaien, Co-Founder and CEO of Relex Solutions. The session focused on how Relex Solutions has served as an enabler for end-to-end supply chain visibility and transparency. End-to-end supply chain visibility is important for large grocers like ADUSA as it improves demand planning, reduces waste through greater precision, and enables company resources to be redirected toward other parts of the business. We provide three main takeaways from the session below: Efficient and agile supply chains require end-to-end visibility The right tech drives precision, efficiency and agility Success requires the right supply chain configuration, the right people and the right tools Slide from the session detailing how ADUSA’s partnership with Relex Solutions has improved end-to-end supply chain visibility Source: Relex Solutions/Coresight Research Left to right: Mikko Kakkaien, Co-Founder and CEO of Relex Solutions; Candace Davis, Manager of Demand Systems at ADUSA; Brian Aubertine, VP Procurement Projects at ADUSA; and Jason Thomas, Director Demand Services at ADUSA Source: Coresight Research Improving Demand Planning Through Weather Intelligence In response to major global issues affecting retailers, such as increasingly unpredictable weather patterns due to climate change, retailers are turning to data and technology to help improve demand planning and reduce risk. During a session titled, “Nailing demand forecasts: From machine learning to replenishment and everything in between, produced by Planalytics,” Scott Bernhardt, President of Planalytics, spoke with retail executives about how Planalytics helps analyze and apply weather intelligence to assist with demand planning in the face of the current challenging macroeconomic environment and unpredictable weather patterns. Weather can affect incremental sales of even products as seemingly unrelated as peanut butter, so analyzing weather intelligence and applying it to demand planning can be useful. The speakers emphasized that solutions like Planalytics were particularly helpful in driving down costs and increasing market and digital market share. Left to right: Scott Benrhardt, President of Planalytics; Ross Giambalvo, Vice President of Inventory Management at HEB; Jeremy Elster, Data Science Manager at Chipotle Mexican Grill; and Tyler Scott, Senior Director of Demand Planning/Retail Support at Albertsons Source: Coresight Research Target Identifies Business Opportunities And Challenges Christina Hennington, EVP and Chief Growth Officer at Target, discussed the company’s future challenges and opportunities. Hennington identified three challenges that Target is currently tackling: Consumers making trade-offs Balancing its portfolio Thinking about long-term investments, and re-imagining and understanding consumer needs Hennington also discussed promising opportunities in Target’s future. Currently Target boasts a $30 billion private label business, which it believes will continue to be important in the future. In the longer term, Target has its eyes on its loyalty program, Target Circle, and hopes to be able to deepen connections with its members, including incremental promotions, tailored communications and a more personalized digital experience. Hennington also shared that she believes health, wellness and apparel will continue to be important business areas for Target. Engaging Coresight Research recommends that retailers be “engaging” in 2023 by providing shoppers with new experiences that are interactive, social and full of discovery. This was a key concept during day three at NRF, as retailers highlighted how they expected emerging technologies, such as non-fungible tokens (NFTs), live video shopping and virtual try-on to grow in importance—particularly in the beauty and luxury sectors. Can Luxury Continue To Ride Its Wave of Success in 2023? During the height of the Covid-19 pandemic, luxury was remarkably unaffected—and even thrived. However, as we face a looming recession, Anish Melwani, Chairman and CEO of LVMH, took to the stage at NRF to discuss the outlook for luxury in 2023 and how LVMH will continue to stay not only relevant but true to its core principles, through investing in experiences and technology. Melwani shared that post-lockdown revenge travel helped boost luxury. Americans returned to Europe, attracted by favorable VAT rebate policies and LVMH observed a demand spike in its Belmond and Cheval Blanc portfolios. Although Melwani doesn’t believe luxury is completely immune to a recession, as its customer base is not exclusive to the ultra-rich, LVMH is implementing conservative financing to withstand a weak economy and expects a softer landing. One of the most interesting points that Melwani discussed is luxury’s engagement with technology and Web 3.0, and how this engagement “reinforces the heritage and DNA of the brands and the Maisons.” For example, NFTs accompanied by digital certificates can serve as proof of authenticity, of ethical production and of the source of the materials used—all of which are important to luxury consumers. Tiffany’s 250-piece Cryptopunk NFTiff collection, for example, is one of the most successful NFT projects, generating $12.5 million in less than a year. Left to right: Anish Melwani, Chairman and CEO of LVMH; and Robert Frank, Wealth Editor at CNBC Source: Coresight Research Bringing Technology into the Store To Improve Consumer Experience Shifting customer expectations as consumers return to stores are pushing retailers to invest in more technology to provide a more connected, convenient in-store shopping experience. During a session moderated by Deborah Weinswig, CEO and Founder of Coresight Research, executives from T-Mobile for Business and Tractor Supply shared how they were integrating technology into their stores to meet evolving consumer expectations. Roopender Crowley, Managing Director of Retail Strategic Accounts at T-Mobile for Business, discussed how the onset of the pandemic forced retailers to reconsider their tech stack in the face of labor shortages. Tractor Supply has invested in increasing its computing power in stores, including by rolling out direct broadband in over 1,000 stores by the end of 2023. In-store technology is also helping Tractor Supply provide its customers with more personalized in-store shopping experiences, such as by helping consumers understand “what [they] are looking at and providing higher-level insights on the product to help make a decision,” explained Al Lettera, SVP of IT at Tractor Supply. Looking ahead to the future, Tractor Supply hopes to invest in technology that will help it innovate faster in a world of ever-changing consumer demands. In addition, it hopes to invest more in employee experience and provide better tools to employees who are on the front lines handling consumers’ demands. The session left us with three takeaways for retailers: Get out of the silo Bring teams together Introduce 5G applications to address needs across the organization Left to right: Deborah Weinswig, CEO and Founder of Coresight Research; Al Lettera, SVP of IT at Tractor Supply; Roopender Crowley, Managing Director of Retail Strategic Accounts at T-Mobile for Business; and Steven Crowley, Director of Solutions Engineering at T-Mobile for Business Source: Coresight Research Beauty Harnesses Emerging Tech To Facilitate Consumer-Centric Experiences Beauty brands and retailers are leveraging emerging technology innovations including virtual reality (VR), augmented reality (AR) and livestream shopping to create more engaging experiences for consumers. During a session titled “Beauty’s blush with technology,” featuring Nicolette Bosco, VP, Divisional Business Manager Beauty at Macy’s, Ophelia Ceradini, VP, Digital Technology and Innovation at The Estée Lauder Companies, and Kelly Kovack, CEO and Founder of BeautyMatter, the executives shared how technology is being used to create consumer-centric hyper-personalized beauty experiences. For example, Ceradini explained that Estée Lauder’s customer facial analysis tool is highly personal, detecting multiple different eye and brow shapes, and making consumers feel more unique. When Kovack asked which technologies the executives were most excited about, they cited live video shopping, virtual try-on and AI as having the most potential. Tech also plays an important role in beauty on social media, and can be used as an avenue for driving sales and extending interaction with consumers. Bosco, for example, described Macy’s Beauty Playground, an internal-facing technology platform that Macy’s launched to help its beauty advisors understand the history of brands, the latest trends, beauty themes, influencer insights and more. Ceradini also spoke about the role of TikTok in spreading new trends and how Estée Lauder can use AI to aggregate data on trending products. Once Estée Lauder matches trends with existing products, it can provide consumers with its own products as well as other tips, extending the consumer journey. Lastly, the executives emphasized the role of store associates as a company’s blood vessels. Beauty brands and retailers rely on associates, who are also beauty and tech experts, to help consumers find the products they want and receive personalized recommendations and advice. Left to right: Kelly Kovack, CEO and Founder of BeautyMatter; Nicolette Bosco, VP, Divisional Business Manager Beauty at Macy’s; and Ophelia Ceradini, VP, Digital Technology and Innovation at The Estée Lauder Companies Source: Coresight Research Tech-Enabled Coresight Research defines “tech-enabled” as the deployment of technology across business units to increase business productivity and customer conversion and retention. In particular, we expect retailers in 2023 to leverage technology to improve inventory management and empower store associates to deliver higher-quality retail experiences. Transforming Data into Retail-Relevant Insights Drives Innovation Retailers understand that data is a powerful tool, yet many still struggle to analyze and apply data to improve their understanding of business bottlenecks and consumer demand. Weinswig asked two executives at Woolworths, Brad Banducci, CEO and Managing Director, and Amitabh Mall, Chief Analytics Officer, how Woolworths is leveraging data to optimize its business. The executives explained that the entire Woolworths ecosystem is connected, enabling the company to merge data sets from business segments and produce valuable insights. The executives believe that their uniform platform for analyzing data is most useful for things like demand planning, during the holiday season, for example, as well as understanding various consumer segments across channels. Weinswig provided two major conclusions from the session: In five to seven years, cloud data can strengthen brands’ and retailers’ ability to understand demand across the entire business. Omnichannel is driving the application of data analytics, which can drive amazing results and shareholder equity. Woolworth’s group ecosystem Source: Woolworth’s/Coresight Research Left to right: Deborah Weinswig, CEO and Founder of Coresight Research; Brad Banducci, CEO and Managing Director at Woolworths; and Amitabh Mall, Chief Analytics Officer at Woolworths Source: Coresight Research This document was generated for
Event CoverageVIP Awards 2023: Retail’s Core Is Human and Rooted in Partnership Charlotte Rothschild, Analyst January 18, 2023 Reasons to ReadThe Coresight Research team attended the VIP Awards in New York City on January 13, 2023, hosted by Vendors in Partnership. In this report, we present insights from the retail industry celebration, including the mission and significance of the event as well as winners of selected awards. We are excited to reveal that Coresight Research won the Retail Voice award. Companies mentioned in this report include: Digital Wave Technology, Impact Analytics, January Digital, Riskified, Tractor Supply Co., Ulta Beauty Other relevant research: VIP Awards 2023 Preview: Celebrating Community and Partnership in Retail Executive Summary The VIP Awards highlighted cutting-edge solutions across areas such as sustainability, marketing, supply chain, innovation, analytics, payments, security and more. The event celebrated innovation, partnership and community. Vicki Cantrell and Phil Leahy co-founded the VIP Awards after identifying that the retail ecosystem lacked opportunities to celebrate and foster collaborative relationships. Following pandemic-led restrictions in the past couple of years, the VIP Awards in 2023 presented an in-person opportunity to connect with retail’s leading thinkers and problem solvers. We are excited to reveal that Coresight Research won the Retail Voice award. Among the 21 VIP Awards winners were Digital Wave Technology, Impact Analytics, January Digital, Riskified, Tractor Supply Co. and Ulta Beauty. Introduction On January 13, 2023, Vendors in Partnership (VIP) hosted the VIP Awards 2023 in New York City—its third annual industry celebration for retail solution providers. At the event, VIP presented 21 awards spanning nine categories to a standing-room-only crowd. The VIP Awards event provided an opportunity to celebrate the value of strong relationships between retailers and retail solution providers, while acting as a springboard to a vibrant new year in retail and an energetic and positive launch to five days and nights of everything retail, from the VIP Awards to RetailROI’s SuperSaturday to NRF 2023: Retail’s Big Show. Coresight Research was a sponsor of the VIP Awards 2023. In this report, we present highlights from the event. VIP Awards 2023: Coresight Research Insights As the retail industry continues to face an uncertain and challenging macroeconomic environment, retailers are increasingly turning to solution providers to leverage next-generation technology such as artificial intelligence (AI) and machine learning (ML) to solve for a range of challenges. The VIP Awards highlighted cutting-edge solutions across areas such as sustainability, marketing, supply chain, innovation, analytics, payments, security and more. The event celebrated innovation, partnership and community; it provided a platform for increased engagement across the industry. Keynote speaker Dave Finnegan reminded attendees of the importance of “setting aside cellphones… to be present with partners.” He urged the audience to take the time over the following few days of conferences and meetings to get to know a couple of people better and so build “beautiful partnerships.” The award winners spoke to the importance of listening to their clients, knowing their pain points and working together to solve issues. We are excited to reveal that Coresight Research won the Retail Voice award. The Coresight Research team on stage accepting the Retail Voice award Left to Right: Mike Zung, Deborah Weinswig, Andy Laudato (COO of The Vitamin Shoppe, judge at the VIP Awards), Marie Driscoll, Billy May (emcee at the VIP Awards) Source: VIP Awards The Mission of the VIP Awards Vicki Cantrell and Phil Leahy co-founded the VIP Awards after identifying that the retail ecosystem lacked opportunities to celebrate and foster collaborative relationships—not only between retailers and solutions providers but also solution provider to solution provider. Given Cantrell’s 25-year tenure in the retail industry, previously serving as CIO and COO of global luxury brands, as well as SVP of Communities and Executive Director at Shop.org under the National Retail Federation (NRF), she is intimately familiar with the retail community and the importance of these relationships. She argued that the differentiator for the VIP awards is “how we define what matters. There are two types of awards: the solution awards, recognizing specific solutions and services; and the community awards, which recognize how you do business as great partners, not what the solution does.” The core of the retail industry’s value ultimately lies in its human element, in opportunities for industry participants to form community and trust, and collaborate and create solutions for retail’s biggest challenges. After the restricted gatherings in 2021 and 2022 due to the pandemic, the VIP Awards in 2023 presented a special and welcome opportunity to connect with retail’s leading thinkers and problem solvers in the one room, and it was a great start to NRF 2023 Retail’s Big Show. Deborah Weinswig, CEO and Founder of Coresight Research, and Vicki Cantrell, Co-Founder of VIP Awards Source: Coresight Research The Significance of the VIP Awards Finnegan shared how his recent global travel experiences reinforced his belief in the importance of values celebrated at the VIP Awards event, including the significance of human connection, being present and strong partnerships. On the importance of the evening, he said, “Tonight, I spoke about the importance of getting to know your partners, and there are not a lot of times in your life that you actually get an opportunity to talk to someone one on one. That, to me, is why the VIP Awards are so special, because [the event] gives us a night that we can set aside everything else; we can celebrate the great work that partners are doing and get to know each other better.” Dave Finnegan on stage at the VIP Awards Source: Coresight Research 2023 Award Winners Below, we present details on the awards and winners of the VIP Awards 2023. Partner of the Year: Litmus7 Award Description: Partner of the Year recognizes achievement in excellent customer and employee culture. Winner: Litmus7 is a retail solutions provider whose services and products help retailers to accelerate digital revenue and profitability, while practicing a zero-escalation policy. Litmus7 team on-stage as they accept their award Source: Vendors in Partnership Retail Partner of the Year: Ulta Beauty Award Description: Retail Partner of the Year recognizes a retailer’s achievement in excellent customer and employee culture. Winner: Ulta Beauty is the largest US beauty retailer. Michelle Pacynski, Vice President of Digital Innovation at Ulta Beauty, shared her views on the importance of partnership in the retail industry, stating that the award “is all about the spirit of collaboration and partnership. And honestly, it really is pretty easy to create a strong partnership when you have two very like-minded organizations. We share the same values. We treat people with complete respect. And it’s just, it really makes for an incredibly strong partnership.” Ulta Beauty accepts the Retail Partner of the Year award Source: Vendors in Partnership Retail Transformation of the Year: Tractor Supply Co. Award Description: This award recognizes retailers that demonstrate measurable and sustainable transformation across business models, technology modernization, organizational/cultural transformation or business process transformation. Winner: Tractor Supply Co. is the largest US rural lifestyle retailer, selling products in the home-improvement, agricultural and pet categories. Tractor Supply’s Rob Mills (EVP, Chief Technology, Digital Commerce and Strategy Officer), John Ordus (SVP) and Glenn Allison (VP of Customer-Facing Applications) accepted the Retail Transformation of the Year award. They emphasized the importance of partnership and hjow it translates across the company’s business model, with one executive saying, “This [VIP Award] means that we support our 50,000-plus team members in our stores and all of our customers in North America. Tractor Supply cares about legendary customer service, and this award shows partnerships across many different partners to drive that legendary customer service and show that we are always focusing on the customer.” Tractor Supply Co. team accepts the Retail Transformation of the Year award Source: Vendors in Partnership Retail Voice: Coresight Research Award Description: The Retail Voice award recognizes a media resource that provides valuable insights on current and future trends in the industry. Winner: Coresight Research is a global research and advisory firm delivering data-driven insights focusing on retail and technology. “Coresight Research is delighted to receive the Retail Voice award. Our team is proud of this incredible recognition for our global retail and technology research,” said Weinswig. Members of the Coresight Research team at the VIP Awards (left to right): Marie Driscoll, Senior Analyst, Managing Director – Luxury; Mara Dosso, Head of Events; Deborah Weinswig, CEO and Founder; Mike Zung, Senior Consultant Source: Coresight Research The VIP Challenge Award: T-Mobile for Business Award Description: The VIP Challenge Award recognizes demonstration in partnership to solve a client hardship or identify a new opportunity. This year, the theme for The VIP Challenge Award was “Driving Retail Forward Through Innovation,” which aimed to recognize a retailer’s agility when faced with changing factors in the market. Winner: T-Mobile for Business provides network solutions for small businesses, enterprises and government. T-Mobile for Business helped “one of the biggest and fastest-growing retailers out there to empower them during a storm with connectivity immediately when it went down,” a company executive stated. The award was accepted by members of the T-Mobile for Business team: Kim Chow, Vice President for Business Marketing; Ryan Taylor, Head of Retail Product Marketing; and Ripi Krali, Managing Director of Retail Accounts. The T-Mobile for Business team accepts The VIP Challenge Award Source: Vendors in Partnership Best Sustainability Initiative: Relex Solutions Award Description: Best Sustainability Initiative is awarded to the solutions provider that demonstrates operational excellence combined with social and environmental responsibility that provides benefits for both the provider and its partners. Winner: Relex Solutions’ supply chain and retail planning platform helps retailers optimize operations such as demand planning, inventory management, supply management and more. Relex Solutions team accepts Best Sustainability Initiative Source: Vendors in Partnership Best Security Solution: Riskified Award Description: Best Security Solution recognizes solution providers that help their clients mitigate business threats and challenges. Winner: Riskified is an e-commerce fraud management platform. Riskified wins Best Security Solution Source: Coresight Research Best Business Intelligence & Analytics Platform: Impact Analytics Award Description: The Best Business Intelligence & Analytics Platform award is awarded to a solution provider with an intuitive and interactive business analysis product. Winner: Impact Analytics leverages AI to optimize merchandising and supply chain management. The Impact Analytics team receives the Best Business Intelligence & Analytics Platform award Source: Vendors in Partnership Best Retail Insights: Competera Award Description: Best Retail Insights recognizes solutions providers that leverage data to provide actionable insights for retailers. Winner: Competera is a pricing platform that provides price optimization and automation. Competera wins Best Retail Insights Source: Vendors in Partnership Best Digital Agency: January Digital Award Description: Best Digital Agency recognizes a solution provider with new and creative digital marketing, product and service innovations. Winner: January Digital provides media, strategic consulting and data analytics services to help brands solve retail challenges. The January Digital team receives the Best Digital Agency award Source: Vendors in Partnership The Retailer’s Favorite: Slalom Award Description: The Retailer’s Favorite is awarded to a solution provider that is recognized as a reliable, flexible and knowledge solution partner to retailers. Winner: Slalom is a global business and technology consulting firm. Slalom accepts The Retailer’s Favorite award Source: Vendors in Partnership Best Kept Secret: Smarter Sorting Award Description: Best Kept Secret is awarded to a solution provider or retailer with a service or solution that may be unfamiliar to many or not associated with its brand. Winner: Smarter Sorting provides product intelligence for consumer goods, leveraging AI and ML. The Smarter Sorting team accepts the Best Kept Secret award Source: Vendors in Partnership Best Longstanding Partnership: Perfaware Award Description: Best Longstanding Partnership is awarded to a solution provider that can demonstrate a minimum five-year relationship that has resulted in consistent mutual benefits and rewards. Winner: Perfaware is a digital commerce agency that assists retailers and brands in developing commerce strategies. Perfaware accepts the Best Longstanding Partnership award Source: Vendors in Partnership Best Customer Experience Marketing Automation: Digital Wave Technology Award Description: Best Customer Experience Marketing Automation recognizes B2B (business-to-business) or B2C (business-to-consumer) solution providers that aim to improve marketing touchpoints across website, social media, mobile, email and more. Winner: Digital Wave Technology is a PXM (product experience management) solution provider that enables brands and retailers to buy faster and sell quicker through digital transformation. Lori Schafer, CEO of Digital Wave Technology, who accepted the award, said that Digital Wave’s journey involved little sleep and steady focus to know its customers, empathize, and take pride in not what they do, but how they can benefit their clients, which creates great partnerships. Left to Right: Lori Schafer, CEO of Digital Wave Technology; Deborah Weinswig, CEO and Founder of Coresight Research; Louise Hynd, SVP, Business Development at Digital Wave Technology Source: Coresight Research Best Commerce or Multi-Vendor Platform: commercetools Award Description: Best Commerce or Multi-Vendor Platform recognizes a solution provider whose platform successfully integrates the needs of stakeholders, customers and employees. Winner: commercetools is a major investor in composable commerce. The award was accepted by Christopher Holley, Global Director of ISV Partnerships at the company. commercetools provides discrete APIs (application programming interfaces) to create unique customer experiences. The commercetools team accepts the Best Commerce or Multi-Vendor Platform award Source: Vendors in Partnership Best Payment Innovation: Verifone Award Description: Best Payment Innovation is awarded to a solution provider with a seamless, integrated and innovative payment solution. Winner: Verifone’s unified global platform enables seamless payments with any payment method. This enables Verifone to process nearly 50% of global non-cash transactions. Verifone wins Best Payment Innovation Source: Vendors in Partnership Best Breakthrough Technology Solution: Salesfloor Award Description: Best Breakthrough Technology Solution is awarded to a solution provider that is leveraging next-generation technology to innovatively solve retail challenges and boost retailers’ performance. Winner: Salesfloor’s customer engagement platform leverages AI to provide immersive shopping experiences across retail channels. The Salesfloor team accepts the Best Breakthrough Technology Solution award Source: Vendors in Partnership Best Distribution Innovation: Wiliot Award Description: Best Distribution Innovation recognizes a solution provider using advanced technology to improve productivity, cost and speed of distribution for retailers. Winner: Wiliot is an IoT (Internet of Things) platform that uses IoT pixels, ML, and other technology and data to provide product insights along a company’s supply chain. The Wiliot team accepts the Best Distribution Innovation award Source: Vendors in Partnership Best Fulfillment Advancement: Manhattan Associates Award Description: Best Fulfillment Advancement is awarded to a solutions provider that is addressing arising complications in fulfillment across multiple channels. Winner: Manhattan Associates provides supply chain, omnichannel and inventory software to help optimize supply chain operations. The Manhattan Asssociates team receives Best Fulfillment Advancement Source: Vendors in Partnership Best Quick Impact Technology Solution: StoreForce Award Description: Best Quick Impact Technology Solution recognizes a simple-to-implement and effective technology solution that helps drive revenue growth. Winner: StoreForce provides associates empowerment and management tools such as task planning, visibility and engagement. The StoreForce team accepts the Best Quick Impact Technology Solution award Source: Vendors in Partnership Best Unified Customer Experience: Bloomreach Award Description: Best Unified Customer Experience recognizes a solution provider that is able to build a unified branded customer experience across channels. Winner: Bloomreach’s commerce experience cloud enables brands to provide personalized customer experiences across channels, which drive retailer revenue growth. Bloomreach accepts Best Unified Customer Experience Source: Vendors in Partnership This document was generated for
Deep DiveE-Commerce Outlook: US Department Stores—Digital Slows as Consumers Shop in Stores Erin Schmidt, Senior Analyst January 17, 2023 Reasons to ReadWe explore the US department store sector’s recent online performance and future e-commerce prospects, as well as the strategies that major players Kohl’s, Macy’s and Nordstrom are implementing in the online space. Data in this report include: US department store e-commerce sales and year-over-year change, 2016–2026E US department store e-commerce penetration, 2016–2026E US department store sector percent of e-commerce sales by major retailer, 2021 Total revenue, e-commerce revenue and e-commerce penetration for Kohl’s, Macy’s and Nordstrom, for FY 2020–2021 E-commerce penetration for Kohl’s, Macy’s and Nordstrom, 1Q20–3Q22 Companies mentioned in this report include: JCPenney, Kohl’s, Macy’s, Neiman Marcus, Nordstrom, Saks Fifth Avenue Other relevant research: Market Outlook: US and China E-Commerce—Growth to Slow Post Pandemic 3Q22 US Department Store Insights: Retailers Expect Very Promotional Holiday, Similar to 2019 Kohl’s Investor Day 2022: Sephora, Active, Digital and 100 Small-Format Stores To Drive Growth Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveChina Consumer Tracker: More Than 70% of Respondents Are Avoiding Public Places Echo Gong, Senior Analyst January 17, 2023 Reasons to ReadThe Coresight Research biweekly China Consumer Tracker takes a regular temperature check on Chinese consumers’ behaviors and sentiment, based on exclusive proprietary survey data. In this report, we present findings from our survey conducted on December 26, 2022. Data in this report are: Avoidance of public places, by type of public place—latest data and two-week PPT changes Activities that consumers have done in the past two weeks What products consumers have bought in-store and online in the last two weeks Expectations for economic conditions and personal finances in the next 12 months A timeline of selected Covid-19 policy changes in China since December 2022 Other relevant research: Read the full series of China Consumer Tracker reports China Consumer Tracker Preview: Early Data on Shopper Behavior and Sentiment Key Festivals and Holidays for Promotional Campaigns in China in 2023: Calendar Retail 2023: 10 Trends in China E-Commerce Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Event CoverageDay Two at NRF 2023: Retail’s Big Show—Retailers Tap Tech To Streamline the Consumer Journey Charlotte Rothschild, Analyst January 17, 2023 Reasons to ReadThe Coresight Research team is attending NRF 2023: Retail’s Big Show in New York City. In this report, we present insights from the second day of the event, with highlights covering drones in the last mile, voice tech, inclusivity, sustainability, data analytics and more. Companies mentioned in this report include: Blue Yonder, Flytrex, Foot Locker, JD.com, McFadyen Digital, OSF Digital, Target, Tractor Supply Co., URBN, Walmart Other relevant research: Day One at NRF 2023: Retail’s Big Show—Personalization Drives Retail Relevance at Every Consumer Touchpoint Global Retail in 2023: Five Forces and Five Trends The Coresight Research RESET framework Insights from last year’s NRF event Look out for our ongoing coverage of NRF 2023 through the remainder of the event. Executive SummaryThe Coresight Research team is attending NRF 2023: Retail’s Big Show in New York City. In this report, we present insights from the second day of the event. Coresight Research Insights Brands and retailers are tapping technology such as drones in the last mile, and are shifting their focus from product to consumer to retain consumers and respond to complex challenges in the environment. Retailers are engaging with new technologies, such as voice, to improve interaction and connection with their customers. Investing in inclusivity and sustainability is essential to being a retail leader in 2023. Despite economic headwinds, there are still avenues for retailers to expand or improve their business offerings, including omnichannel, cross-border and marketplace selling. Tech solutions provide numerous touchpoints for retailers to refine the consumer journey. Introduction The Coresight Research team is attending NRF 2023: Retail’s Big Show in New York City during January 15–17, 2023. NRF is an annual event hosted by the National Retail Federation, bringing together retail technology innovators, industry experts, brands and retailers to participate in panel discussions, present on key topics in retail and showcase their solutions. In this report, we present highlights from the second day of the event, framing our insights around the Coresight Research RESET framework. The Coresight Research RESET Framework As part of Coresight Research’s Retail 2023 series, we released our Global Retail in 2023: Five Forces and Five Trends report, which reiterates our RESET framework for retailers to respond to short-term consumers needs while securing long-term success. In order to brace for headwinds in the coming year, including high inflation and interest rates, the RESET Framework calls for retailers globally to be: Responsive… to accelerated structural frugality Engaging… to drive long-term loyalty Socially Responsible… as a buttress against trading down Expansive… to pursue alternative revenue opportunities Tech-Enabled… to empower a productivity push Turnout at NRF 2023 (left) versus NRF 2022 (right) Source: Coresight Research NRF 2023 Day Two: Coresight Research Insights Responsive As part of our RESET framework, Coresight Research defines “responsive” as being tuned in to consumers’ shifting needs and expectations. “Responsive” encompasses the strategic agility that retailers need in the current uncertain and volatile macroeconomic environment, as we expect to see more consumers trading down and exercising greater basket fragmentation in the coming year. During the second day of the conference, Deborah Weinswig, CEO and Founder at Coresight Research, discussed the future growth, utility and benefits of drones to respond to complex challenges in last-mile delivery. We also noted interesting discussion concerning retailers’ shift in primary focus from product to consumer. Can Drones Solve the Last-Mile Dilemma? Retailers are increasingly searching for ways to increase supply chain resiliency, particularly after several years of costly and ensnarled supply chains. During the session “But will it fly? The lowdown on drones,” Weinswig explored opportunities in drone delivery with Yariv Bash, CEO and Co-Founder of Flytrex; David Guggina, Executive Vice President of Supply Chain Operations at Walmart; and Harlan Bratcher, Global Business Development Head of JD Fashion. The session covered where and how drones can be used to solve the last-mile dilemma and what the future of drone delivery holds. Guggina emphasized that Walmart’s drone delivery services are fast, at about 30 minutes, and cater to consumers’ increasing desire for immediate consumption. Although drone delivery is currently still quite expensive, Guggina believes that community hubs for delivery have the potential to greatly drive down these costs. Bash spoke to the popularity of Flytrex’s drone delivery services, while Harlan highlighted that JD.com’s drone delivery service was particularly popular in China during lockdowns. JD.com was able to deliver through air drones/land drones to make sure people had essential items. The company delivered more than 2.5 million parcels (including medical and food packages) during the pandemic via drone. Weinswig concluded three main takeaways from the session: Drones will see exponential growth by mid-2024. From a sustainability perspective, drones can help save energy and protect the environment. The “retailization” of drones is happening, with autonomous delivery expanding into the grocery and fashion sectors, as well as to community services such as hospital services. Weinswig explored opportunities in drone delivery with Bratcher, Guggina and Bash (left to right) Source: Coresight Research Retailers Shift Focus from Product to Consumer Retailers are increasingly putting the consumer at the center of their strategies, in order to more successfully respond to consumer demand. Danny Knopp, VP of Core Retail Technology at sportswear and footwear retailer Foot Locker, and Corey Tollefson, President of Worldwide Field Operations at software company Blue Yonder, discussed how Foot Locker’s adoption of technology has transformed the customer experience. Knopp noted that the transition began with a shift from product-led to consumer-led investment. Foot Locker has invested in technologies that enable it respond to consumers’ needs, building e-commerce, mobile app and digital capabilities through its partnership with Blue Yonder. Blue Yonder enables real-time inventory visibility, which Foot Locker extended to its customers. The retailer also leveraged real-time store data to improve its delivery capabilities, offering BOPIS (buy online, pick up in-store) and ship-to-home. Foot Locker is now experimenting with larger-format concept stores, which offer a greater product assortment of sneakers and apparel and feature dedicated areas to performance wear, athletic apparel and accessories. These stores also have more digital content to increase shopper engagement. Knopp (left) and Tollefson (right) discuss the success of the Foot Locker x Blue Yonder partnership Source: Coresight Research Engaging Coresight Research recommends that retailers be “engaging” in 2023 by providing shoppers with new experiences that are interactive, social and full of discovery. This was a key concept during day two at NRF, as retailers highlighted how they expected emerging technologies, such as voice, to become an integral feature in immersive shopping experiences. Voice Tech Is Transforming Retail Engagement Increasing competition, among other challenges, is causing retailers to search for new features and solutions to increase engagement with consumers. The session titled “Voice in retail: it speaks, it listens, it’s impacting our real world businesses” how “voice” is ubiquitous and its incorporation as an engaging and interactive feature in retail is part of a natural evolution that retailers should embrace. Vicki Cantrell, CEO of Vendors in Partnership, shared that already, “90 million people daily are using voice in the US, and it is three times faster than typing.” The use case for voice expands far beyond digital assistants such as Alexa and Siri, generating significant marketing opportunities powered by its potential for personalized interactions. Glenn Allison, VP of Customer-Facing Applications at Tractor Supply Co, discussed how Tractor Supply is already leveraging voice in its mobile app by integrating natural language with AI (artificial intelligence) to enable its customers to find products quickly. Tractor Supply leverages voice for assisted curbside pickup, notifying a team member to meet the customer on arrival. This tool enhances convenience and efficiency, reducing the time of curbside pickup from seven minutes to a few seconds, according to Allison. Tractor Supply is also leveraging voice in stores, changing the role of the store associate, assisting with training, onboarding and sales plans, and even introducing gamification into these tasks. During the session, the panelists—which also included Donald Buckley, Co-Head of Lullaboo Studios and Founder of Treehouse Consulting, and Mirko Soul, Head of Innovation at Schwarz Digital—discussed their predictions for data collection with voice and to offer relevant store responses as a new marketing channel. With “the consumer in the store, returning to malls—not the malls of old but new malls containing lifestyle experiences”—Cantrell sees voice as a promising tool for retailers to provide a more immersive shopping experience. Left to right: Cantrell, Allison, Buckley and Soul Source: Coresight Research Socially Responsible Coresight Research has identified multiple ways in which brands can strengthen brand value by investing in socially responsible markets and initiatives, such as sustainability, wellness, inclusivity and more. During the second day of NRF, we heard executives share how their companies are prioritizing inclusion and sustainability as part of efforts to become leading retailers in 2023. Inclusion and Diversity Are Must-Haves To Be a Leading Retailer An inclusive, flexible and diverse company culture is crucial to attracting top talent and facilitating a positive and productive working environment. At NRF, Brian Cornell, CEO at Target, and multiple female Target discussed the company’s 15-year history of implementing DEI (diversity, equity and inclusion) strategies, putting people at the core to ensure that employees feel supported. Target has demonstrated that inclusion and diversity are now must-haves for retail companies. The retailer’s DEI initiatives include supporting children’s education and the Black community. Sustainability Initiatives Need Greater Automation Morgan Lawrence, Program Manager – PIM (product information management) at URBN, and Miriam Molino Sánchez from Stibo Systems discussed how sustainability has become integral to URBN’s brands, reflecting the evolving values of consumers and retailers. For example, URBN offers its Nuuly clothing rental subscription service and Urban Renewal line of vintage, recycled and reworked clothing. Lawrence and Sanchez discussed the need for enhanced automation when it comes to laws and regulations related to sustainability—for example, EU (European Union) proposals on recycled plastic in packaging. Although these are beneficial, retailers don’t want such regulations to affect how products reach the consumer. In addition, the EU has proposed and, in some cases, already passed legislation that requires apparel and textile manufacturers to provide more transparency, which could be challenging despite the positive intentions. Retailers see a need to introduce greater automation here so that sustainability initiatives—including enhanced transparency—do not slow down services. Read more Coresight Research coverage of sustainability in retail. Expansive Coresight Research recommends that retailers be “expansive” in 2023 by identifying and pursuing alternative revenue streams. This was a key theme during day two at NRF, which highlighted areas of growth in omnichannel, overseas markets and the marketplace business model. Retailers’ Omnichannel Capabilities Have Room for Improvement “Omnichannel” is not a new buzz word, but many retailers still lag far behind in omnichannel capabilities, hurting their revenue and growth. Kathy Kimple, Executive Director at OSF Digital, spoke to several retail executives about key trends in omnichannel retail and where retailers can improve their services—including Matt Blonder, President of Global E-Commerce at Wolverine Worldwide; Rob Garf, GM & VP at Salesforce; and Kacey Sharrett, VP of E-Commerce at GoPro. Kimple also shared several insightful findings from OSF Digital’s Omnichannel Retail Index: There is high adoption of best practices in search: 33% of retailers have an accessibility link on their homepage and 31% show customer service information to promote assistance. Product listing pages still lack useful features: only 28% allow shoppers to filter by curbside pickup. Only 24% of retailers offer back in stock notifications, which hurts customer conversion. “Back-in-stock” features are helpful for time-of-need, budget-based consumers who are willing to wait to purchase products. Removing friction during purchase should be top-of-mind: only 40% have save-for-later functionality, and only 33% have a section for wish list or saved list items. In addition, the average number of checkout fields that need to be filled out is 11–12, which is far too many. Better customer service can be a significant revenue booster, as it provides a channel to advocate for the brand and products, leading to higher sales and loyal customers. BOPIS is table stakes: although curbside pickup has slowed, it is still a best practice, yet only 13% of retailers offer curbside returns. Sustainability is becoming a practical program. Left to right: Kimple, Garf, Blonder and Sharrett Source: Coresight Research Considerations for Online Marketplace Expansion During a session titled, “Marketplace, dropship, or hybrid: strategies for multi-vendor e-commerce expansion produced by McFadyen Digital,” Tom McFadyen, CEO and Author at McFadyen Digital, walked through the company’s “5 Levels of Marketplace Maturity Model (MMM),” which assesses an e-commerce operator or marketplace’s maturity or readiness level (see the image below). Despite the growing popularity of global online marketplaces, the panelists also discussed considerations that businesses should undertake when expanding and implementing online marketplace capabilities, covering category expansion, vendors’ time-to-market and markdown costs. McFadyen Digital’s “5 Levels of Marketplace Maturity Model (MMM)” Source: Coresight Research McFadyen (left) discusses online market expansion with Janae Pasquinelli, Senior Director of Digital Merchandising at Walgreens Source: Coresight Research Global Luxury Continues To Look for Success in China One of the ways in which brands and retailers can be “expansive” is to seek opportunities in overseas markets. In a session titled, “Re-imagining online holiday shopping: how luxury brands are innovating holiday shopping experiences,” Renee Klein, Vice President of Global Digital Experience and Customer Marketing at Coach, discussed with Mei Chen, Director Fashion and Luxury North America, UK, and Northern Europe – Globalization at Alibaba, how Coach has partnered with Alibaba’s Tmall Luxury Pavilion to successfully reach young digital savvy consumers in China. Coach was a pioneering brand on Tmall Luxury Pavilion, which launched in 2017, as it sought to connect to hundreds of millions of Chinese consumers. Tmall Luxury Pavilion served as a useful partner in a foreign market, assisting Coach with using technology, understanding Tmall Luxury’s various consumers segments, and product and marketing testing to grow quickly on the platform. Chen explained that holidays are particularly important shopping occasions in China, making them an important time to connect with Gen Z consumers, either by launching limited-edition products or partnering with influencers for special brand campaigns, among other activities. The panelists concluded with an outlook for luxury in China in 2023, which they agreed usually serves as a looking glass into the future for the West. They predicted that luxury brands would upgrade and elevate digital value-added services, reinforcing the concept of luxury as a lifestyle. Tmall Luxury’s six strategic consumer segments Source: Coresight Research Left to right: Sheena Butler-Young, Senior Correspondent at The Business of Fashion, Klein and Chen Source: Coresight Research Tech-Enabled Coresight Research defines “tech-enabled” as the deployment of technology across business units to increase business productivity and customer conversion and retention. In particular, we expect retailers in 2023 to leverage technology to improve inventory management and empower store associates to deliver higher-quality retail experiences. How Retailers Can Transform Data into Actionable Insights By now, retailers are aware that data can be a powerful resource, but data are not useful without effective analysis. The session “The devil’s in the data: AI-driven allocation in a world of constant change, produced by Impact Analytics” explored how retailers can leverage technology solutions to turn data into actionable insights for successful allocation and supply chain management. The participating executives were Prashant Agrawal, CEO and Founder of Impact Analytics; Jeremy King, Senior Director of North America Allocation at Coach; and Brian Price, VP of BI & Strategic Data Insights at PVH Corp. King discussed Coach’s challenges with allocation, explaining that the company has many different distribution locations across the US. He emphasized that technologies such as AI and ML (machine learning) are not automatically useful on their own. Agrawal highlighted that humans need to be integrated into these technologies. Impact Analytics is able to turn data collected into insights through its cloud-based product and constantly trains its models in order to help retailers understand the location and movement of their products. Executives from Coach and Impact Analytics discuss the importance of data analytics in generating actionable insight Source: Coresight Research Leveraging Technology To Refine Consumer Touchpoints With increasing competition and brisk economic headwinds, retailers recognize the importance of understanding and optimizing the entire customer journey. During a session titled “Gain key insights into how retail leaders are driving growth and innovation, produced by SAP,” panelists considered how technology can enrich every touchpoint in the customer journey. Linh Calhoun, CMO at china, crystal and silverware retailer Replacements, explained that understanding customers’ behavior patterns and individual interests has enabled Replacements to create a more seamless customer journey. Samir Desai, Chief Digital and Technology Officer at Abercrombie & Fitch, shared an interesting example of how Abercrombie & Fitch is leveraging technology to ameliorate pain points in the customer journey: in October 2022, the retailer launched Share2Pay, enabling younger consumers to share their shopping carts with parents or caregivers to approve and complete their orders. This aims to reduce idle shopping carts and potential lost orders, as teenagers would often need to wait to be able to show their parents their carts as they are not financially independent. Left to right: Kristin Howell, Global Vice President of Retail Marketing & Merchandising at SAP, Desai and Calhoun Source: Coresight Research This document was generated for
Deep DiveUS Consumer Tracker: Fewer Consumers Trade Down To Combat Inflation Owen Riley, Analyst January 17, 2023 Reasons to ReadThe Coresight Research weekly US Consumer Tracker presents a detailed update on US consumers’ behavior and expectations, with a focus on the implications for US retail. This week, we chart how consumers are coping with inflation. Data in this report include: Public places consumers are currently avoiding Activities consumers have done in the last two weeks Which retailers consumers have bought food and nonfood products from in the last two weeks What products consumers have bought in-store and online in the last two weeks Companies mentioned in this report include: Amazon, Dollar Tree/Family Dollar, Kohl’s, Target, Walmart Other relevant research: Read the full series of US Consumer Tracker and US Consumer Tracker Extra Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportRetail Around the World: Coresight Research Observations, December 2022 Marie Driscoll, CFA, Managing Director of Beauty and Luxury January 16, 2023 Reasons to ReadCoresight Research is a global company with offices in seven cities across four continents, bringing unique points of view to our retail research. Our new Retail Around the World series presents photographs of retail in action from across the globe, taken by members of the Coresight Research team. Companies mentioned in this report include: Amazon, H&M, Macy’s, Nordstrom and Target Other relevant research: Retail Around the World: Coresight Research Observations—November 2022 Our coverage of sustainability in retail Our coverage of retail technology Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Event CoverageDay One at NRF 2023: Retail’s Big Show—Personalization Drives Retail Relevance at Every Consumer Touchpoint Charlotte Rothschild, Analyst January 16, 2023 Reasons to ReadThe Coresight Research team is attending NRF 2023: Retail’s Big Show in New York City. In this report, we present insights from the first day of the event, with highlights covering agile business strategies, inclusivity (adaptive apparel), personalization, omnichannel retail and more. Companies mentioned in this report include: Blue Yonder, fabric, The Honest Company, Kroger, Macy’s, Madison Reed, Microsoft, Riskified, Salesforce, Swiftly, Walgreens Other relevant research: Global Retail in 2023: Five Forces and Five Trends The Coresight Research RESET framework Insights from last year’s NRF event Look out for our ongoing coverage of NRF 2023 through the remainder of the event. Executive SummaryThe Coresight Research team is attending NRF 2023: Retail’s Big Show in New York City. In this report, we present insights from the first day of the event. Coresight Research Insights Brands and retailers are adapting business strategies and leveraging emerging solutions to achieve agility in the face of a challenging and uncertain macroeconomic environment. Retail companies are expanding into new channels, including physical stores and omnichannel in order to pursue untapped business opportunities. Adaptive apparel is white-space opportunity that brands and retailers can tap as they pivot to focus on inclusivity. Retailers are dedicated to improving personalization in the shopping journey, which is driving technology adoption across retailers’ business units. Introduction The Coresight Research team is attending NRF 2023: Retail’s Big Show in New York City during January 15–17, 2023. NRF is an annual event hosted by the National Retail Federation, bringing together retail technology innovators, industry experts, brands and retailers to participate in panel discussions, present on key topics in retail and showcase their solutions. In this report, we present highlights from the first day of the event, framing our insights around the Coresight Research RESET framework. The Coresight Research RESET Framework As part of Coresight Research’s Retail 2023 series, we released our Global Retail in 2023: Five Forces and Five Trends report, which reiterates our RESET framework for retailers to respond to short-term consumers needs while securing long-term success. In order to brace for headwinds in the coming year, including high inflation and interest rates, the RESET Framework calls for retailers globally to be: Responsive… to accelerated structural frugality Engaging… to drive long-term loyalty Socially Responsible… as a buttress against trading down Expansive… to pursue alternative revenue opportunities Tech-Enabled… to empower a productivity push Javits Center in New York CitySource: Coresight Research NRF 2023 Day One: Coresight Research Insights Responsive As part of our RESET framework, Coresight Research defines “responsive” as being tuned in to consumers’ shifting needs and expectations. “Responsive” encompasses the strategic agility that retailers need in the current uncertain and volatile macroeconomic environment, as we expect to see more consumers trading down and exercising greater basket fragmentation in the coming year. During the first conference day, we observed many retail executives discussing how they are proactively remaining agile and adaptive while driving growth in this challenging environment. Agile Business Strategies Enable Business Preservation and Growth Jeff Gennette, Chairman and CEO at Macy’s, discussed how Macy’s is conducting store transformation and improving the agility of its supply chains in response to a more weary forecast for 2023 because consumers are under pressure. He explained that the retailer is taking the following key actions: Leveraging data science, including demand forecasting and trend forecasting, to understand what products consumers want and the location of inventory Leaning on its significant partnership with UPS to develop original warehouses with next-generation technology and reduce its store space Rolling out more off-mall, small-format stores to cater to consumers’ increasing desire for convenience, including omnichannel services such as BOPIS (buy online, pick up in-store) Emerging Solutions Enable Adaptability and Agility During the session “Resilient retail. Achieving more with Microsoft Cloud for Retail, produced by Microsoft,” Shelley Bransten, Corporate VP, Global Retail and Consumer Goods Industries at Microsoft, shared the technology company’s definition of “resilient retail,” which underlines how the company aims to lead with “responsiveness” in the current macroeconomic environment. Bransten explained that resilience is achieved through adaptability in uncertain times, anticipation of future market and consumer shifts, and the ability to absorb financial and operational shocks. Microsoft’s definition of “resilient retail”Source: Coresight Research Bransten also unveiled two new Microsoft Cloud for Retail products—Store Operations Assist and AiFi Smart Stores Analytics—which help retailers increase productivity and drive growth by empowering store associates and elevating the shopping experience. New Microsoft tools: Store Operations Assist (left) and AiFi (right)Source: Coresight Research Other insights from the same session on how retailers are being “responsive” came from Roxanne Flanagan, SVP, Chief Supply Chain Officer at Walgreens. Flanagan shared how Walgreens is improving the resilience of its supply chain by working with the right vendor and leveraging emerging solutions. The retailer is working with Blue Yonder, a leader in digital supply chain transformation and omnichannel commerce fulfillment, to achieve real-time inventory updates, which helps improve supply chain agility. Flanagan (left) and Bransten (right) discuss retail resilienceSource: Coresight Research Expansive Coresight Research recommends that retailers be “expansive” in 2023 by identifying and pursuing alternative revenue streams. This was a key theme during day one at NRF, which highlighted the expansion of digitally native brands into the brick-and-mortar channel as well as moves by established brands to increase their omnichannel offerings in order to achieve additional revenue growth in the current challenging environment. Digital Natives Lean on Their Roots To Successfully Expand to Physical Retail Paul Chapuis, CEO of OnQ, and Tyler Wozny, Chief Digital Officer at Madison Reed, discussed how digitally native haircare brand Madison Reed is leveraging digital tools to more successfully expand into brick-and-mortar stores. The brand reports that digital tools help enrich the customer experience and drive loyalty. For example, in-store virtual try-on tools help customers explore all 60 shades offered by the brand. Chapuis and Wozny explored the benefits of assisted/unassisted digital screens, which reportedly outperform the stores that don’t have these screens by 21%. Wozny shared that the screens have become the primary tool for color consultation, with 90% of staff reporting that this tool increases in-store engagement: the screens make it easy for shoppers to discover colors, access product details and ingredients, and more. Chapuis (left) and Wozny (right) discuss digital tools in physical retailSource: Coresight Research Omnichannel Presents a Resilient Business Opportunity As became ever-more evident during the pandemic, optimized omnichannel experiences are key for retail success. One session that explored consumers’ shifting expectations around the omnichannel shopping experience featured observations from the following speakers: Paige Fitzgerald, General Manager, Business Strategy and Partnerships at Afterpay and Cash App Roshan Jhunja, General Manager at Square for Retail Arianne Parisi, SVP, Chief Digital Officer at JD North America Fitzgerald highlighted the business opportunity with expanded omnichannel capabilities, sharing that omnichannel customers spend three times more than single-channel customers. The executives agreed that Gen-Z is a bright spot in this inflationary environment, as they are more resilient and open to trying new purchasing formats, such as buy now, pay later. Retailers should continue to experiment with new channels, while also trying to better understand customers’ preferences in order to successfully pursue omnichannel experiences. Jhunja, Fitzgerald and Parisi (left to right) discuss consumers’ shifting expectations around omnichannel experiencesSource: Coresight Research Socially Responsible Coresight Research has identified multiple ways in which brands can strengthen brand value by investing in socially responsible markets and initiatives, such as sustainability, wellness, inclusivity and more. During the first day of NRF, we heard from multiple retail executives on how pursuing the adaptive market not only increases inclusivity but is a major untapped business opportunity for retailers. Inclusive and Adaptive Apparel Is an Underserved Market Mindy Scheier is the Founder and CEO of GAMUT, a consultancy and talent management firm that helps companies enter the adaptive apparel market, and the Founder and CEO of Runway of Dreams, a foundation that helps people access the apparel they need. Scheier spoke with several retail executives on the huge business opportunity in the adaptive apparel market and how companies can create a go-to-market strategy. She shared that adaptive apparel is underserved market: inclusion is not a mission but a business opportunity and white space. In July 2022, GAMUT announced the creation of the GAMUT Seal of Approval, which identifies the inclusion of PWDs (people with disabilities) in the creation and marketing of products, which Scheier explained provides authenticity to three audiences: brands, retailers and, most importantly, consumers. Scheier highlights the white-space opportunity in adaptive apparelSource: Coresight Research During the session, Michelle Banks, Chief Diversity, Equity & Inclusion (DEI) Officer at Kohl’s, emphasized inclusion as a business opportunity and imperative. She highlighted that inclusive categories enable the retailer to match its values with its business goals. Lydia Smith, VP, Chief Diversity & Inclusion Officer at Victoria’s Secret, said that partnering with Scheier assisted Victoria’s Secret in thoughtfully considering each step of their go-to-market strategy to ensure that the consumer voice is really heard. This move enabled the brand to serve a new customer base across multiple diverse, underserved markets. Tech-Enabled Coresight Research defines “tech-enabled” as the deployment of technology across business units to increase business productivity and customer conversion and retention. In particular, we expect retailers in 2023 to leverage technology to improve inventory management and empower store associates to deliver higher-quality retail experiences. Tailored Returns Policies Drive Customer Conversion During “Winning over your customer at every touchpoint of the shopping journey, produced by Riskified,” we heard from Shani Gadot-Klinger, VP of Customer Growth at Riskified, about the important of frictionless, secure checkout as well as a generous and tailored refunds and returns policy. In order to reduce returns-related costs, brands and retailers need to understand their customers and what they want before the point of purchase. Gadot-Klinger recommended that retailers tailor their returns policies by being more generous to more loyal customers, as this can increase customer retention. She said that Riskified is launching a new a dashboard this year that helps retailers optimize their returns policies. Also during this session, Bill Bennett, VP, Head of Commerce at Kroger, emphasized that product search and discovery is a key area in which Kroger is leveraging technology solutions. The retailer’s digital coupon platforms are achieving double-digit growth, Bennet said, enabling consumers to easily find savings. In addition, Kroger is investing in home pages and search functionality to improve the discovery experience. Left to right: Alex Bolante, Managing Director & Consumer Identity Management Leader at Deloitte & Touche LLP; Shani Gadot-Klinger, VP of Customer Growth at Riskified; Kacey Sharrett, VP, E-Commerce at GoPro; and Bill Bennett, VP, Head of Commerce at KrogerSource: Coresight Research Digital Personalization Tools Power the Omnichannel Shopper Sean Turner, CEO and Co-Founder of Swiftly, discussed the benefits of leveraging digital tools to provide a personalized shopping experience across channels, driving customer engagement and enabling the “omni-shopper.” Turner shared some insightful statistics, including that personalized experiences capture 48% more of customers’ spend if personalization is done well and that 82% of in-store purchases are influenced by online channels, long before shopper comes into the store. Turner recommended three priorities for retailers looking to improve the omnichannel shopping experience: upgrading the app experience, increasing digital loyalty through targeted and personalized recommendations, and emphasizing what is unique and valuable to the retailer’s physical stores to drive in-store visits. Digitalized Consumer Experiences Drive Conversion and Loyalty A tough economic environment and labor challenges are prompting some retailers to turn to technology to provide real-time data and intelligence to increase agility and improve the customer experience. Rob Garf, General Manager and VP of Retail at Salesforce, explained how Salesforce’s products assist retailers to do this. L’Oréal leverages Salesforce Customer 360 to digitalize the consumer experience, driving shopper adoption of beauty technology and boosting average order value. Garf emphasizes the importance of real-time data and intelligence to increase agility and improve the customer experienceSource: Coresight Research Art Sebastian, VP Digital at Casey’s, spoke about the advantages of customer data platforms (CDPs), such as Salesforce’s Genie Customer Data Cloud, which organizes data into one unified stream that can be augmented and added to, enabling Casey’s to achieve better conversion and loyalty. Sebastian emphasized the importance of retailers’ agility, stating, “Personalization can’t be planned in advance. It happens in real time with contextual behavior.” Casey’s shares the impact of data on personalizationSource: Coresight Research Marketplace Technology Enables Business Expansion Brands and retailers are adopting a marketplace strategy and leveraging data to improve merchandising and product assortment, uncovering new business opportunities. Faisal Masud, CEO of fabric, and Jana Schuster, VP of Digital Innovation and E-Commerce at The Honest Company, discussed how fabric’s marketplace technology has enabled the baby and beauty brand to be more agile and efficient when curating product assortment. The partnership also reflects how technology can assist retailers in being “expansive” and pursuing new business channels. Left to right: Joe Cicman, Senior Analyst at Forrester; Jana Schuster, VP of Digital Innovation and E-Commerce at The Honest Company, and Faisal Masud, CEO of fabricSource: Coresight Research Retailers Should Develop a Roadmap for Web 3.0 Web 3.0 presents new, untapped opportunities for retailers. In “Web3: Retail’s 3-year roadmap, produced by McFadyen Digital,” Peter Evans, Chief Strategy Officer at McFadyen Digital, and Nick Katsivelos, Global Media Industry Digital Strategy Director at Microsoft, discussed how Web 3.0 will bring a new era of engagement for brands, retailers and solution providers alike. Evans recommended that when thinking about Web 3.0 and the future of retail, retailers should build a roadmap that includes assessing market trends, building new capabilities, and developing and communicating their vision and goals. This document was generated for
Deep DiveFive Retail Opportunities Amid Economic Uncertainty John Mercer, Head of Global Research and Managing Director of Retail Research January 16, 2023 Reasons to ReadWe present five revenue-expanding opportunities that retailers can use to hedge against receding demand as US consumers adopt renewed caution amid economic uncertainty. Our insights cover livestreaming e-commerce, retail media, personalization, global commerce and GNFR (goods not for resale). Selected sections of this free report are sponsored by buywith, LogicSource and XCCommerce. Data in this report include: Macroeconomic context—US savings rate, and real and nominal consumer spending growth US livestreaming e-commerce market size and penetration Annual revenue growth attributed to retail media (proprietary survey findings) Companies mentioned in this report include: For Love & Lemons, Kroger, Metro, The North Face, Starbucks, Target, Ulta Beauty, Walmart Other relevant research: Our full coverage of livestreaming e-commerce More Coresight Research reports on retail media How Retailers Can Unlock True Profit Potential (uncovering potential savings in GNFR) Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportChinese New Year 2023 Preview: Travel Boost Expected as Government Lifts Zero-Covid Policy Charlotte Rothschild, Analyst January 16, 2023 Reasons to ReadDuring the Chinese New Year, the largest annual holiday in China, citizens celebrate by returning to their hometowns and exchanging gifts. On the back of the reversal China’s strict Zero-Covid policy, we analyze the prospects for retailers during Chinese New Year 2023. Data in this report include: Chinese New Year domestic tourism revenue for 2018 through 2022 Retail and food service sales in China during the Chinese New Year from 2011 through 2022 The number of passengers undertaking trips during Chinese New Year from 2018 through 2022 Companies mentioned in this report include: Bang & Olufen, Burberry, Dolce & Gabbana, L’Oreal and Maybelline Other relevant research: Chinese New Year 2022 Review: Increased Travel and Winter Olympics Boost Retail Sales—But Underlying Weak Trajectory Likely Unchanged The new Coresight Research Chinese Consumer Tracker series All Coresight Research coverage of the China market Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
