State of the Industry
Retailers don't compete with just their next-door neighbor anymore. They compete against the expectations set by customer experience leaders across industries and categories. Retail enterprises must strengthen their value proposition by innovating new experiences and services. Incisiv surveyed executives from the US, Canada, and LATAM to understand the innovation perspective, the impact of AI on retail innovation, and the role of leadership in fostering a culture of innovation. Despite strong leadership commitment to innovation, US & Canada and LATAM retailers grapple with challenges stemming from undefined processes, risk-averse cultures, and unclear execution strategies. Retailers in these regions must prioritize clear and structured innovation processes, embrace risk-taking, and develop strategies for streamlined execution.
AI is emerging as a key focus for innovation in the retail sector, with applications spanning from enhancing customer experiences to optimizing operational efficiencies. Retailers must tailor AI adoption strategies to the regional context, balancing immediate improvements with long-term strategic advantages to thrive in the evolving AI landscape. The report offers actionable insights on how retailers can foster a culture of innovation, strategically adopt new technologies, and align them with their unique brand values.
As consumers continue to reshape their expectations,
enterprises must contend with a uniquely challenging landscape.
The consumer technology landscape is forever changing.
From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.
From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.
Commoditized convenience is eroding loyalty and margin.
Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.
Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.
Consumers value experiences that are curated to fit their lives better.
They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.