What is consolidating and fragmenting in consumer tastes
The retailers most likely to survive the current shift are those that can provide a tremendous variety of offerings while maintaining, or reviving, the personal touch of a mom-and-pop corner store.This report explores emerging trends affecting both businesses and consumers, and considers the ways these trends are manifesting in the retail space.Design, sales, and support are less strongly linked, with small, niche entrants drawing from a range of flexible options to execute these activities.To compete effectively, traditional retailers should reimagine how they create and capture value, thinking past omnichannel positioning to examine, and find the best uses for, their assets.The level of disruption has been significant: By 2000, seven of the eight largest US retailers in 1980 had filed for bankruptcy, been acquired, or lost their places as major industry players. But each of the transitions described above was driven by larger technological and social shifts, and each led to fundamental changes in how people shopped.And every one of them increased consumer choice while reducing consumers’ total cost in terms of money, time, and opportunity.We will discuss possible options for established retailers in light of these changes, then describe small, smart steps these retailers can take to help position themselves well for the future landscape.Figure 1 provides a high-level view of the journey on which this report will take you.
To survive, many retailers are finding ways to serve individual consumers in ways tailored to their needs and desires—transforming both their value propositions and their business models.Operator is just one manifestation of what is arguably retail’s most fundamental transformation in a century-long string of changes.In the early 1900s, retail was dominated by local mom-and-pop stores, each providing its community with a highly personalized shopping experience.Digital marketplaces with on-demand fulfillment can be incredibly well suited to providing low prices and extensive choice.Brick-and-mortar assets can serve as a stage for customized consumer experiences that go far beyond ambience to surprise and educate the consumer.
Technological advances and public policy liberalization are contributing to new flows of information, knowledge, and resources.