Retail & Logistics Outlook 2023

With inflation rapidly sweeping across various economies, consumers are starting to tighten their belts where spending is concerned. Consumers are now opting for goods that o er more value for money as they try to stretch every dollar. For businesses, this translates to o ering more products and services that are aligned with the evolution of consumer behaviour and can deliver more value as well as durability. Product lifecycle management (PLM) approaches are something to consider as an integrated strategy to plan ahead.

SUSTAINABILITY –A KEY PILLAR

In a recent study, it was discovered that 67% of respondents took into consideration sustainable materials when making a purchase. As a result, there is a high chance that brands may increasingly opt for sustainable materials and methods in the production of goods and services. For instance, fashion brands such as Mylo and Piñatex, are providing greater levels of transparency and traceability across their extended supply chain in 2023. Materials, processes, and production techniques of new collections will be better measured and designed to have lower environmental impact scores. With wastage becoming a major issue in the fashion industry currently, more brands will consider how they can extend the lifecycle of their products in 2023. One way to address this would be to explore avenues such as o ering repair, rental, resell, and recycling services rather than introducing new products to market. Meanwhile, integrating with resell platforms may be an option to consider to sell le over stock, while extending a ersales service for products can boost the lifetime of a product.

RE-IMAGINING THE SUPPLY CHAIN

Uncertainties surrounding the ongoing geopolitical conflict, port congestions and delays, surges in shipping and high freight costs remain to be key concerns in the supply and logistics industry. Due to this scenario, many brands may have to rethink their supply networks that include decentralising and distributing their operations across local, regional, and even international lines. This in turn may reduce exposure to vulnerabilities from global shocks. The strategic positioning of distribution structures across various locations also allows retailers to bring their products closer to end users and streamline e ciencies in their delivery to customers. On this note, technology has a key role in empowering organisations to achieve real-time visibility and information across their supply lines. Digitalisation of supply chain platform will help brands and retailers to achieve synergy and better collaboration on order demands, quantities, and dates.

Technology Driving Customer Experiences And Engagement

Over the last few years, there has been a paradigm shi among brands as they adopt omnichannel retail strategies and establish enriching, interactive brand experiences to engage customers. These experiences include the launch of hot pink Jimmy Choo cafés in Seoul and London, to Gucci’s Circolo interactive brand house, comprising a café, bookstore, and an immersive Listening Lounge. However, not all brands are able to a ord fancy customer experiences. In view of that, brands will need to invest in the integration of technologies, such as automation, to drive new e ciencies across their daily processes. This frees up employees’ time, thus enabling them to focus on higher value, strategic priorities for the brand, including creating memorable and unique experiences for customers. On that note, arti cial intelligence, predictive and machine learning driven services will be able to better engage customers across the purchasing journey. Ultimately, 2023 will see more brands leverage technology as a powerful tool.

Source: Retail & Logistics Outlook

2023 by Cas Brentjens, Vice President, Infor Supply Chain Management, Asia Paci c & Japan