Jones Lang LaSalle has just issued part two of the Retail 2020 study "Power to the People / Consumer Cut-through". Retail 2020, which was launched on 28th May via a bespoke interactive website, examines the rapidly changing global retail landscape over the next ten years.
Guy Grainger, Head of Retail Agency in England at Jones Lang LaSalle said: "Part two of Retail 2020 considers the inexorable rise of consumer choice and the changing relationship between not just retailers and consumers, but manufacturers as well. It pays particular attention to how the internet and associated technologies continue to liberate consumer power.
This section of the report also explores consumers' emotional attachment to shopping, and how the consumer profile itself is changing: the baby boomers are retiring; the number of young adults is falling dramatically and more men than ever before are engaged in the whole retail experience. Consumers are more demanding than they've ever been and are gradually seizing power away from retailers and manufacturers. This chapter tells us how retailers can thrive in such a competitive and challenging environment."
Part two of Retail 2020 outlines the following insights retailers and Shopping Centre Owners will be working with over the next decade:
Needs based marketing Retailers will have to revisit the needs of consumers that were somewhat ignored over the recent 'boom decade', crucially the accessibility and ease of retail. Time and convenience will become crucial measures that consumers use when deciding to engage with retailers.
Developing wants for a new decade The best retailers will have to respond to important social trends to provide consumers with a more genuine connection to shopping including the art of living, multiculturalism, design and longevity, feminisation and the environment. Shopping Centres and retailers will have to unite to satisfy these needs, and there will be a reinvestment in local community retailing locations.
The size and structure of the market With population growth expected to remain static over the next ten years retailers will need to account for fewer younger adults, the widening base of consumerist segments and the mass retirement of the high spending 'early baby boomer' consumer group.
Splintering Markets Unlike today's three broad consumer segments, by 2020 retailers will have five groups to target; Generation X (teenagers of the time) who will be joined by Generation Y (those coming of age), the Baby Boomer generation which will split into two groups due to retired or working lifestyles, and the older generation of "Seniors."
Retail 2020 explores the shape of retail to come, covering dimensions such as sectors, locations, formats, offers and geographies, as well as profitability (growth, costs and business models), and will be released in a series of chapters starting on 28th May. The aim of Retail 2020 is to provide a pertinent assumption base around the future of European retail. Retail 2020 website is www.retail2020.com
Source: Jones Lang LaSalle