Diving into the Diverse, Underserved Segments of the US Beauty Market

Introduction

The US beauty market has taken a one-size-fits-all strategy for most of its history. Only over the past decade has the market attempted to represent a broader base of consumers, one outside of its traditional target consumer: young white women. Today, market participants are adopting a more inclusive stance and creating products that address the diverse US population.

We discuss five underserved segments in the US beauty market and how beauty companies can better serve them. The five segments are:

• Non-white and multiracial beauty shoppers
• Gen-Z beauty shoppers
• 50+ female beauty shoppers
• Male beauty shoppers
• Adaptive beauty shoppers

Coresight Research has identified the inclusivity as a key trend to watch in retail and a component trend of the Coresight Research RESET framework for change. That framework provides retailers with a model to respond to short-term consumer needs while securing longer-term success (see the appendix of this report for more details).

This report is sponsored by Drug Store News, a leader in news, analysis and trends in the retail pharmacy space with print, digital and event reach exceeding 120,000 unique retailer, supplier, finance, business and consumer media readers each month.

Market Scale and Opportunity

Beauty is generally a low-cost and feel-good category that can withstand economic slowdowns as consumers often continue to purchase lipstick, nail polish and fragrance as token indulgences while holding back from other, larger discretionary purchases. In 2023, as US consumers establish new lifestyle, work and relaxation behaviors and return to the experiential economy amid heightened inflation and interest rates, Coresight Research expects beauty spending in the US to see 4.6% year-over-year growth, resulting in a $74.8 billion market (Figure 1).

Figure 1. US Beauty Products Retail Market Size (USD Bil.) and YoY Growth (%)

Source: Euromonitor International Limited 2022 © All rights reserved/Coresight Research

 

While a homogeneous approach to the beauty market may have worked in the US in the 1950s, it is no longer relevant as the US population has grown increasingly diverse over the past 20 years, a trend that is projected to continue—a diverse consumer base with varied beauty needs defines the current beauty environment. Moreover, growing consumer demand for inclusivity means retailers and brands must address these smaller market segments to remain competitive and relevant. Consumers’ awareness of and advocacy for inclusivity are impacting corporate structures and policies, brand representation, marketing content and even which suppliers companies elect to work with.

There is a significant opportunity for beauty companies and brands to broaden the scope of their products, reaching underserved consumers. We expect that US inclusive beauty spending for consumers of all races, genders and ages will outpace overall beauty spending growth as it meets the unmet needs of a large consumer base, likely doubling the annual year-over-year growth rates we project through 2027 in Figure 1.

Underserved Beauty Markets: Coresight Research Analysis

1. Trends in the US Population

According to the US Census Bureau, in 2020 (latest available data), 61.6% of the total US population identified as white alone, down from 72.4% in 2010. Meanwhile, Americans identifying as “two or more races” (multiracial) grew 276%, from 9.0 million Americans in 2010 to 33.8 million in 2020. Looking forward, the Census Bureau projects that Americans identifying as Black will grow to 13.8% of the total US population by 2023 and 15.0% by 2060. At the same time, it expects that those who identify as Hispanic or Latino will grow to 21.1% of the population by 2030 and 27.5% by 2060, while those who identify as white are expected to drop to 44.3% of the US population by 2060.

Those in the US under the age of 18 are becoming even more ethnically diverse, which brands and retailers should note as these consumers are the future of retail. Just over half (53.0%) of Americans under 18 identify as white (Figure 2), down from 65.0% in 2010, while the proportion of Americans under 18 who identify as multiracial increased from 9.0% in 2010 to 15.0% in 2020.

Figure 2. US Population by Race (% of Population; 2010 vs. 2020)

All options but “two or more races” describe one race alone
Source: US Census Bureau

 

2. Non-White Beauty Shoppers

In May 2023, we surveyed US consumers regarding their beauty purchases, of which 75% purchased beauty products in the three months prior to the survey. Overall, across the cosmetics, fragrance, haircare and skincare categories, the average spend over the three months ended May 15, 2023, was $124 (Figure 3). Unsurprisingly, those with the highest incomes spent the most, at $210 (69.4% more than average). The average non-white beauty shopper spent 25.0% less than the average beauty shopper and 30.6% less than the average white beauty shopper.

Figure 3. US Beauty Shoppers: Average US Beauty Spending (USD)

Base 302 US respondents aged 18+ who purchased beauty products in the three months ended May 15, 2023
Source: Coresight Research

However, while they spent less, 84% of non-white consumers bought beauty products in the three months prior to the survey, a larger percentage than white consumers (74%). Additionally, non-white beauty shoppers bought fragrance products at nearly twice the rate of white consumers, at 36% versus 19% (Figure 4). As beauty brands and retailers offer merchandise that meets the needs of non-white market consumers, we believe, given the segment’s propensity to purchase beauty products, that increased sales will ensue.

Figure 4. US Beauty Shoppers: Beauty Categories Shopped (% of Respondents)

Base: 302 US respondents aged 18+ who purchased beauty products in the three months ended May 15, 2023
Source: Coresight Research

 

Where Non-White Shoppers Discover Beauty Brands and Products

Non-white beauty shoppers, similar to white beauty shoppers, primarily use stores to discover beauty products; however, they use traditional and social media as avenues of discovery more often than their white counterparts. More than a quarter of non-white beauty shoppers use YouTube and TikTok for beauty discovery, compared to 15% of white beauty shoppers for both channels (Figure 5). Additionally, 23% of non-white beauty shoppers use television to discover beauty products versus 17% of white beauty shoppers.

Figure 5. US Beauty Shoppers: Where They Discover Beauty Products (% of Respondents)

Base: 302 US respondents aged 18+ who purchased beauty products in the three months ended May 15, 2023
Source: Coresight Research

 

Beauty Shopping Destinations

Beauty brands and retailers need to know where non-white beauty shoppers shop for beauty to reach them successfully. Our survey found that non-white beauty shoppers use multiple beauty formats, namely specialty beauty retailers, mass retailers and department stores.

There are real differences between where white and non-white beauty shoppers buy beauty products, according to our survey (Figure 6). For instance, despite the same-day convenience of Walmart, it is neck in neck with Amazon as the top beauty destination for non-white beauty shoppers, which is not true for white beauty shoppers. Additionally, more non-white beauty shoppers shop at Macy’s than white shoppers, at 14% versus 6%, respectively. Target is the number three beauty destination for non-white beauty shoppers, at 27%, a significantly larger proportion than the 11% of white beauty shoppers that shopped at Target. Similarly, nearly twice as many non-white beauty shoppers shop at Ulta than white beauty shoppers (20% versus 11%, respectively). It should be noted that both Target and Ulta have made extensive efforts to attract diverse employee, shopper and vendor bases, including commitments to increase the number of Black, Indigenous and People of Color (BIPOC) vendors available in their stores.

Figure 6. US Beauty Shoppers: Top Destinations for Beauty Purchases (% of Respondents)

*Excluding Ulta at Target locations
**Excluding Sephora at Kohl’s locations
Base: 302 US respondents aged 18+ who purchased beauty products in the three months ended May 15, 2023
Source: Coresight Research

 

What Non-White Beauty Shoppers Want From Beauty Brands

Our survey reveals that nearly a quarter of non-white beauty shoppers desire a sense of belonging from beauty brands—almost twice the percentage of white beauty shoppers—thus, beauty brands that address this demand with products specifically designed for non-white beauty shoppers will succeed. For instance, Fenty Cosmetics offers more than 40 shades of foundation, as does Dior’s Forever Foundation range. Using diverse spokespeople, models, celebrities and other key opinion leaders (KOLs) will go far in developing rapport and authenticity with this consumer group, in ways that a mass-market approach with white-only models cannot.

There is some similarity between what non-white and white beauty shoppers seek from beauty brands—a sense of value is by far the most important feature of a beauty brand, regardless of race or income, according to our survey (Figure 7).

Figure 7. US Beauty Shoppers: What Shoppers Want From a Beauty Brand (% of Respondents)

Base: 302 US respondents aged 18+ who purchased beauty products in the three months ended May 15, 2023
Source: Coresight Research

 

When it comes to specific beauty products, our survey found that price and personal relevance are some of the most important factors that impact non-white consumers’ skincare, haircare, color cosmetics and fragrance purchases:

• Personal relevance is the number-one driver for skincare purchases and the number-two driver for haircare purchases for non-white consumers.
• Price ranks as the second most-important factor for skincare purchases, the fourth most-important factor for color cosmetics and fragrance purchases, and the fifth most-important factor for haircare purchases for non-white consumers.

As companies meet the brand and product demands of non-white consumers, we expect non-white beauty shoppers to increase their spending levels, approaching white beauty shoppers’ spending levels. To gain the trust and interest of these consumers, beauty brands can utilize promotional tools such as gift with purchase and purchase with purchase to communicate value and showcase new, relevant products to non-white groups.

Below, we closely examine three specific groups of non-white beauty shoppers: Black, Hispanic and Latino, and multiracial beauty shoppers.

Black Beauty Shoppers

Americans who identify as Black represent 12% of the US adult population, according to the US Census Bureau, and, while their beauty needs are not currently being adequately met, they are still avid beauty shoppers. According to data from NielsenIQ, total beauty spending by Black consumers rose 10% in 2022, driven by a 32% jump in fragrance purchases (Figure 8).

Figure 8. Beauty Spending by Black Consumers

	Spending (USD Bil.)	YoY Growth (%)
Facial Skincare	$1.1	4%
Hand & Body Lotions	$1.2	10%
Fragrances	$1.5	32%
Cosmetics & Nail Grooming	$1.9	4%
Haircare	$2.3	6%
Total Beauty Spending by Black Consumers	$7.9	10%

Source: NielsenIQ

 

According to the Pew Research Center, a nonpartisan think tank, 76% of Black Americans feel that being Black is “extremely or very important” to them. For beauty brands, this means they must connect authentically and personally with Black shoppers. With one-third of Black beauty shoppers also feeling discrimination from the beauty industry, according to Ulta Beauty (see image below), beauty brands and retailers must engage with these shoppers via niche products and models that resonate with them.

Ulta Beauty is focusing its growth strategy on three consumer segments that over index, which it terms “Beauty Enthusiasts.” According to Ulta Beauty’s Analyst Day 2021 presentation, 91% of Black consumers are passionate about the beauty market and spend more at Ulta Beauty than they do at any other beauty retailer.

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­­­­­­­Ulta Beauty on groups it terms “Beauty Enthusiasts”
Source: Company reports

 

Many other retailers and brands have increased their focus on diversity, equity, and inclusion (DEI)—as well as increased communication of their DEI efforts to shoppers—in response to consumers’ awareness of and demand for inclusivity. Coresight Research believes these efforts must be genuine and sustained to achieve the desired impact.

Hispanic and Latino Beauty Shoppers

The Hispanic and Latino population—those who identify as Hispanic or Latino to the US Census Bureau—is the largest minority market in the US. This market segment is growing rapidly, as is its spending power. The Hispanic and Latino population totaled 62.1 million in 2020, growing 23% from 2010 and accounting for 18.7% of the total US population. Additionally, according to the University of Georgia, the group’s spending power grew to $1.9 trillion in 2020—an 87% increase from 2010—accounting for 11.1% of US buying power, which the University of Georgia defines as total income after taxes.

Figure 9. US Population: Hispanic and Latino Population (2010 and 2020; % of Population)

Source: US Census Bureau

 

In regard to the beauty market specifically, Hispanic consumers spent 19% more than the average consumer on beauty in 2022, according to NielsenIQ. These numbers align with comments from Ulta Beauty during its Investor Day in October 2021, where it stated that Hispanic beauty shoppers was another key group it is aiming to serve. The company revealed that, of its 70 million beauty enthusiasts, Hispanic consumers spend the most on beauty purchases, revealing the cohort’s beauty opportunity.

Multiracial Beauty Shoppers

According to US Census Bureau data, the population of multiracial Americans—those who identify as “two or more races” to the US Census Bureau—grew rapidly from 2010 to 2020 (see Figure 2), a trend we expect to continue in the decades to come. As the US population becomes more diverse, retailers and brands will not only need products that target these consumers, but will also need to adopt the right media and communication styles to engage with them, including multi-lingual communications and media offerings.

The challenges faced by multiracial consumers vary based on their ethnicities. A mix of skin and hair types could mean the shopper must purchase multiple niche products to achieve a desired result. Targeting this consumer is more difficult than targeting the other cohorts discussed and requires companies to create inclusive messaging and educational content regarding product ingredients and their efficacy for specific uses.

3. Gen-Z Beauty Shoppers

Gen Zers—which Coresight Research defines as those born after 2000—have started entering the beauty market. According to Piper Sandler, which surveyed 5,690 teenagers with an average age of 16 in 2023, teens’ core beauty wallet (cosmetics, skincare and fragrance) stands at $313 annually, a 19% year-over-year increase. This increase was driven by a 32% annual increase in spending on cosmetics—up to $123 annually, meaning spending in the category surpassing skincare spending for the first time since 2020—as well as the return to socialization and events following the pandemic.

According to the Piper Sandler survey, teenage Gen Zers’ beauty spending is focused on specialty retailers, which capture 75% of this cohort’s beauty purchases (Figure 10). In the survey, 41% of teens stated Ulta Beauty was their “favorite” beauty destination, while 63% of female teenagers are in Ulta Beauty’s Ultamate Rewards Program.

Figure 10. Gen Zers: Favorite Beauty Destinations (% of Respondents)

Source: Piper Sandler

 

By brand, the popularity of e.l.f Cosmetics grew 900 basis points year over year in 2022, becoming teenage Gen Zers’ favorite cosmetics brand.

Figure 11. Gen Zers: Favorite Beauty Brands (% of Respondents)

Source: Piper Sandler

 

Value-driven brand and product attributes are increasingly important to the US at large, driven by the demands of young Gen Zers and Millennials. According to the Piper Sandler survey, the top causes for teens are the environment (19%) and racial equality (9%). As Gen Zers are also vocal about various social causes, including inclusivity and mental health, they are quick to call out brands that are not sensitive to their ethics and mores. Beauty brands and retailers should begin engaging with this cohort now to better anticipate and meet their demands. Younger demographics’ values have already started making a difference at many companies, such as GRYT, a skincare brand for teens and tweens that links self-esteem and mind and body wellness with healthy cleansing habits.

According to the 2020 Census, 47% of Americans under 18 are non-white, compared to 34.7% in 2010. Similarly, Ulta Beauty reported that Gen Zers are its most racially diverse group, with almost 50% of its Gen-Z customers identifying as non-white. This diverse generation represents the future of the US beauty market, meaning that the demand for the non-white and multiracial beauty products discussed above will continue to grow. Creating products and communications for these underserved beauty market segments now will put beauty brands in a better position to engage with Gen Zers in the future.

4. Male Beauty Shoppers

Male consumers are increasingly expressing their beauty needs and discovering new products, driving potential for the men’s personal care category to extend beyond traditional grooming to cosmetics and advanced hair and beard care. This is because social norms regarded male cosmetics are changing as Gen Zers have increased social acceptance of males using makeup as a form of personal expression. This trend indicates the emergence of the male cosmetics sector, presenting a white-space opportunity—according to our survey, male beauty shoppers spent just slightly less on beauty products than female beauty shoppers in the three months ended May 15, 2023, at $119 versus $127.

Stores are the primary location where men discover beauty products, similar to women, at 36% to 37%; however, men utilize all other sources and locations of discovery less than women (Figure 12). Specifically, we urge beauty brands to delve into the 32% of males that discover beauty products outside the traditional routes.

Figure 12. US Beauty Shoppers: Where They Discover Beauty Products by Gender (% of Respondents)

Base: 394 US respondents aged 18+ who purchased beauty products in the three months ended May 22, 2023
Source: Coresight Research

 

Male beauty shoppers are similar to female shoppers regarding what they want from a beauty brand, with two notable exceptions: a sense of understanding and a sense of luxury (Figure 13). As many men have just started exploring the beauty and cosmetics market, they have a greater need to be understood than their female counterparts; however, a sense of luxury is less important to men compared to women.

Figure 13. US Beauty Shoppers: What They Want from a Beauty Brand by Gender (% of Respondents)

Base: 394 US respondents aged 18+ who purchased beauty products in the three months ended May 22, 2023
Source: Coresight Research

 

5. 50+ Female Beauty Shoppers

According to the US Census Bureau, there are 55.6 million women aged 50–80 in the US (as of July 2021; latest available data), making it a sizable demographic. When including those over 80 years old, the consumer base grows to 63.0 million. However, the beauty and wellness industry has largely ignored women over the age of 50 (50+), instead focusing on younger consumers. In doing so, companies have created a highly competitive market for products intended for those under the age of 35, while the needs of older women have remained unaddressed, despite their greater discretionary spending power. According to the IPUMS-CPS (a database from the National Institute of Health and the University of Michigan), in 2022, the average income of adults aged 35 and under was $57,150, while the average income of adults aged 55 and older was $83,100. Today, 50+ women are also living longer, and the aging of Generation X has brought with it a de-stigmatization of age, creating an opportunity that is 55.6 million consumers strong.

50+ women shoppers are looking for value when selecting a beauty brand, with over two-thirds selecting it as what they want most from a beauty brand (Figure 14) in a Coresight Research survey conducted in February 2023. Brands that have already developed a sense of value while focusing on younger consumers should look to ensure their communication strategies resonate with the 50+ demographic. This cohort is likely more cynical regarding the promises of beauty products; we urge realism in communication, including using models that are the right age.

Figure 14. 50+ Women: What They Want from a Beauty Brand (% of Respondents)

Base: 400 US women aged 50+, surveyed in February 2023
Source: Coresight Research

 

Our February 2023 survey also found that 50+ women use multiple beauty formats, primarily mass retailers, chain drugstores and brands’ websites. Walmart is top of mind among these beauty shoppers, likely due to multiple reasons:

• The sharp values the retailer offers
• Its efforts to retail to higher-income shoppers that “discovered” Walmart during the pandemic via elevated in-store merchandising efforts
• Its 2022 collaboration with beauty retailer Space NK, which created BeautySpaceNK, a curated beauty space in Walmart stores featuring independent and prestige beauty brands

Amazon is the number-two beauty destination for 50+ women, suggesting shopping ease and efficiency is important to this demographic, supported by the high rankings of convenience drug chains CVS and Walgreens. Beauty brands’ own websites are shopped by 14% of this cohort versus 7.5% of all shoppers; we suggest beauty brands personalize their websites to customers, allowing them to better engage with all types of consumers, including 50+ women.

Figure 15. 50+ Women: Where They Shopped for Beauty in the Past Three Months (% of Respondents)

*Excluding Ulta at Target locations
**Excluding Sephora at Kohl’s locations
Base: 293 US women aged 50+ who purchased beauty products in the three months ended February 20, 2023
Source: Coresight Research

 

According to our data, 50+ women spent $95 on beauty purchases in the three months ended February 20, 2023, significantly less than the $124 average (Figure 3), suggesting retailers and brands are leaving money on the table with this consumer group, given its discretionary income (per the IPUMS-CPS data provided above).

• For more on beauty for 50+ women, read our report, The 50+ Woman: What She Needs from the Beauty and Wellness Industry.

6. The Adaptive Beauty Shopper

People with disabilities represent 13% of the adult US population—43.1 million Americans—as of 2021 (the latest available data from the US Census Bureau). Many Americans reported having multiple disabilities across various disability types—hearing, vision, cognitive, ambulatory, self-care and independent living difficulties, as defined by the US Census Bureau (Figure 16)—with ambulatory disabilities (having serious difficulty walking or climbing stairs) being the most prevalent and affecting almost half of Americans with disabilities.

Figure 16. Americans Reporting Disabilities by Type

Disability Type	Number of Americans Reporting Disabilities (Mil.)	Proportion of Americans with Disabilities (% of Population)
Hearing difficulties	11.6	26.9%
Vision difficulties	8.1	18.8%
Cognitive difficulties	16.5	38.3%
Ambulatory difficulties	20.4	47.3%
Self-care difficulties	7.8	18.1%
Independent Living difficulties	14.7	34.1%

Americans could report having multiple disabilities, which may fall under different disability types
Source: US Census Bureau, 2021 American Community Survey (one-year experimental estimates)

 

With more than 40 million Americans having some type of disability, inclusivity should not be an issue; however, the beauty industry has been slow to meet the varied needs of this population, which has a worldwide spending power of $8.0 trillion, according to the Return On Disability Group. We believe that the use of beauty products will rise if they are adapted to the lifestyles of those with disabilities.

Recently, adaptive retail products have moved beyond the apparel and footwear sector, with Microsoft, Procter & Gamble and Unilever launching various adaptive products across the technology, beauty and personal care spaces. Within the beauty industry, product application and usability can create issues for those with disabilities; as such, easier packaging and technology that assists in makeup application are the main forces behind the industry’s current efforts.

• This year, L’Oréal launched HAPTA, a handheld computerized makeup applicator designed for users with limited hand and arm mobility, earning the company a CES 2023 Innovation Award. According to the website, HAPTA features a magnetic attachment with “360 degrees of rotation and 180 degrees of flexion.” There is also a “clicking feature,” which allows the user to set an intended position, lock the position in and even save the position for future use. HAPTA comes with a rechargeable, built-in battery, which results in one-hour continuous use.

The L’Oréal HAPTA handheld computerized makeup applicator
Source: Company website

 

• Kohl Kreatives offers multiple makeup brush kits that adjust for various motor disabilities, enabling the user to apply cosmetics without the assistance of another, which is foundational to a sense of independence.

What We Think

Beauty brands and retailers should speak to the aforementioned market segments, understand their unsolved beauty and wellness needs, and help solve them. When addressing these opportunities, companies should remember that value is the top priority for all demographic groups; however, each segment also has particular needs that must be addressed to reach that niche successfully. For instance, Black beauty shoppers find it important that brands recognize their culture and heritage, while, for Gen Zers, social issues are a priority. The age-old retail adage, “know your consumer,” remains the best strategy for enjoying the opportunities these underserved cohorts offer.

We see white-space opportunities in each of these underserved market segments and recommend that beauty companies and retailers conduct more research and develop new products that appeal to these market niches. By employing segmentation and personalization strategies that focus on the individual factors important to each market segment, beauty brands and retailers can develop and enhance customer relationships, create brand loyalty and strengthen customer lifetime value.

Implications for Brands/Retailers

• Segmentation and personalization become more important when addressing the needs of underserved and growing market segments. Companies should design products that are specific for each market segment, supported by targeted communications strategies.
• Communication strategies must be tailored to specific audiences. The same ad will not work for both a Gen Zer and 50+ woman, nor will the same channel work. Understanding where the intended audience engages with media, what is important to them and how to speak to them—which might include multiple languages—is key.
• Retailers and brands should take time to get to know these underserved markets, as the US has changed significantly in the last two decades. We suggest brands and retailers engage in quantitative surveys and focus groups, speaking to today’s beauty shoppers. By learning their values, demands and concerns, companies can better develop products and communication strategies that recognize and address the needs of these groups.

Notes and Methodology

Data for 2017–2021 in Figure 1 are Euromonitor data: Euromonitor International Limited 2022 © All rights reserved

Coresight Research surveys US consumers aged 18+ online each week. Informing the data in this report are our two surveys conducted on May 15 (400 respondents) and May 22 (400 respondents). The results have a margin of error of +/- 5%, with a 95% confidence level.

Two additional Coresight Research surveys, from earlier in the year, also inform the data in this report:

• An online survey of 91 women aged 18–45, conducted on February 27, 2023. The results have a margin of error +/-10%, at a 95% confidence level.
• An online survey of 400 US women aged 50 and above, conducted on February 20, 2023. The results have a margin of error of +/-5%, at a 95% confidence level.

The composition of 50+ female respondents in the second survey was as follows:

• Age—38% aged 50–59; 37% aged 60–69; 25% aged 70+
• Household Income—48% under $50,000; 30% between $50,000 and $100,000; 16% over $100,000 (the remaining respondents chose not to disclose their income bracket)

In addition to the findings discussed in this report, our survey revealed other differences within the 50+ women by income, as shown in Methodology Figure 1.

Methodology Figure 1. 50+ Women: High-Income Trends

	All 50+ Women	50+ Women with Household Income of $100,000+
In a long-term relationship	48%	78%
Working full-time	23%	46%
Living in the suburbs	49%	68%
Social security is primary income source	45%	15%

Base: 400 women aged 50+, surveyed in February 2023
Source: Coresight Research

 

Appendix: About the Coresight Research RESET Framework

The Coresight Research RESET framework for change in retail serves as a call to action for retail companies to respond to short-term consumer needs while securing longer-term success. The framework aggregates the retail trends that our analysts identify as meaningful for 2023 and beyond, as well as our recommendations to capitalize on those trends, around five areas of evolution. To remain relevant and stand equipped for change, we urge retailers to be Responsive, Engaging, Socially responsible, Expansive and Tech-enabled. Emphasizing the need for consumer-centricity, the consumer sits at the center of this framework, with their preferences, behaviors and choices demanding those changes.

RESET was ideated as a means to aggregate more than a dozen of our identified retail trends into a higher-level framework. The framework enhances accessibility, serving as an entry point into the longer list of more specific trends that we think should be front of mind for retail companies as they seek to maintain relevance. Retailers can dive into these trends as they cycle through the RESET framework.

The components of RESET serve as a template for approaching adaptation in retail. Companies can consolidate processes such as the identification of opportunities, internal capability reviews, competitor analysis and implementation of new processes and competencies around these RESET segments.

Through 2023, our research will assist retailers in understanding the drivers of evolution in retail and managing the resulting processes of adaptation. The RESET framework’s constituent trends will form a pillar of our research and analysis, with our analysts dedicated to exploring these trends in detail. Readers will see this explainer and the RESET framework identifier on further reports as we continue that coverage.

 

Appendix Figure 1. RESET Framework

Source: Coresight Research