Retailers face complex challenges in optimizing merchandising strategies and elevating supply chain planning, often influenced by the evolving needs of customers, global politics, health crises like the pandemic, and environmental concerns such as climate change. To tackle these challenges, retailers need to have well-organized supply chain and merchandising planning strategies. This will help retailers adapt to market fluctuations swiftly, gain insights into consumer behavior, and provide tailored shopping experiences.
Artificial intelligence can play a transformative role by leveraging insights, refining promotion strategies, and preparing for advanced merchandising and supply chain planning. This playbook delves into the intricacies of merchandising and supply chain planning in the retail sector and presents a comprehensive framework for retailers to harness the potential of AI in making data-driven decisions, encompassing predictions, and executing autonomous operations.
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.