Retail & Consumer Products

Retail & Consumer Products Insights

  • More Trust Wins More Value

    More Trust Wins More Value

    Retail business models are under pressure as they adapt to cost inflation, online and hard discount competitors, and rapidly changing customer needs. Instead of trying to squeeze more margin out of suppliers, we see the most successful retailers seeking joint solutions with their top suppliers. 

    The value at stake is tremendous. For example, looking at just the fresh categories i...

  • The Bigger Digital Picture

    The Bigger Digital Picture

    While e-commerce programmes have been successful at creating a technical and operational e-commerce capability, so far they have failed to generate the customer benefits and financial returns they are capable of achieving.

    Done right, we believe there is a massive upside to be captured with e-commerce and more broadly in the digital reinvention of customer engagement. Our experience...

  • Digital Equality

    Digital Equality

    In mature markets, some retailers are starting to realize the potential of helping low-income consumers. By supporting this budget-conscious group shop online in ways that work for them, these retailers are creating improved customer propositions that build their market share.

    The scope for growth is significant: for example, the bottom 30 percent of earners still represent 20 percent...


    The Changing Face of the Chinese Traveller

    Chinese travellers continue to head abroad in greater numbers than ever before. The total number of trips exceeded 120 million in 2015. Despite slowing GDP growth, that number should top 130 million this year. Spending has risen accordingly. In 2014 alone, Chinese travellers spent approximately US$165 billion overseas, an increase of 27% over the previous year according to UN’s World Tourism...


    Breaking The Addiction

    The real business cost of promotions is being chronically underreported in grocery retail. We’ve seen sales uplifts from promotions fall 18 percent in the past five years and today estimate that a third of promotions are actually destroying value for the retailer. Yet food promotions are still being rolled out week after week.

    This is why we’re keen to share with you the findings fr...


    Fighting Fat

    Your customers' waistlines are a matter of national importance. The UK government is continuing to face pressure to do more to reduce the prevalence of obesity and reduce the £5.1 billion bill to the NHS due to managing obesity-related diseases like Type 2 diabetes.

    We have calculated that the UK needs to lose around 343 million kilograms of fat. Tackling this problem is going to re...


    Wake up to Bank-to-Bank Payments

    In January 2018, Europe will be hit by the next wave of payment regulations – Payment Services Directive 2 (PSD2) – which has broad implications and could lead to bank-to-bank payments becoming an everyday reality for consumers. It could potentially capture 20% of customer spend away from existing card schemes and unlock over €3 billion from reduced transaction fees. In addition, it will all...


    Graduating Into Consumption

    The speeds of change in China’s political, social, technological and economic environments have made generational shifts much more pronounced than other countries. Understanding China’s youth is therefore critical to the understanding of the future of China’s consumer economy.

    China’s “post-80s” (“80 后”) generation, defined as those born in the 1980s, was the first to come of age in a...


    Cutting the cord

    eCommerce has been THE hot topic in Chinese retail for the past few years culminating in the listing of Alibaba on the NYSE. Alibaba reached, at least on day 1, a greater market value than either Facebook or Amazon. Much of this hype has been focused on the ongoing potential of the eCommerce market, only half of the Chinese population is currently online (vs. c.70%-90% in most developed mark...


    Refreshing China’s hypermarkets

    China’s big-box grocery retailers (supermarkets and hypermarkets) were among the darlings of Chinese retail for much of the past decade. They expanded rapidly throughout the late 2000s and offered consumers a one-stop venue for all their grocery and non-grocery needs, even including a sit-down meal from the attached mini-malls. The rental from the attached malls also provides grocers with an...


    Mall Or Nothing

    Retail sales in China are still showing strong growth (12% in 2014), not only driven by growing consumer incomes but also by a booming construction landscape. China is under construction as are its shopping malls: there are currently ~1,700 malls and another ~700 are under construction. 200–300 malls are being opened each year and more than half of all existing malls have only been opened in...


    Fashion re-designed

    In the last decade, expanding in China was an easy ride with high sales growth driven by store expansion and same store sales increase, but that is about to change. This period was attractive for both local and international apparel retailers in China as Chinese apparel retail enjoyed double digit sales growth. The next decade will bring lower growth, a higher importance of lower tier cities...