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"The world’s most successful companies all have one thing in common: powerful brands ... Branding strategy is one of the foundational pillars of business. Simply presenting a unified brand message can increase profits by nearly 25%." - EU Business School
From multiple sources, this article summarizes key insights from the just published Brand Finance top 500 world's most valuable brands report.
As we continue to make progress emerging out of the COVID-19 health crisis, key trends that I have been following closely are both consumer priorities and retailers' technology focus areas. At the height of the lockdowns in 2020, consumers chased convenience and safety as primary purchasing drivers.
Forty-percent of the time in four countries (USA, UK, France, and Germany), this included switching retailers that were more responsive to their new shopping patterns. This was especially prevalent in the United States where 46% of the consumers made the switch. Subsequent research indicated that 88% plan to stick with their new shopping brand choices.
On the technology front, digital acceleration was the operative challenge that all retailers faced. "By some estimates, we (retail) have vaulted ten years ahead in consumer and business digital penetration in less than three months."
This article highlights technology focus areas that consumers are prioritizing as we enter a disrupted new normal. It also summarizes new research on the top retailer technology priorities to meet the demands of a digitally empowered consumer.
Couple weeks ago, I had the opportunity to join other loss prevention professionals in a webinar titled "The power of Teamwork: How Retail LP can work with law enforcement to combat the double problem of ORC and Violent Gangs." In this Loss Prevention Foundation hosted event, my contribution was an ORC trends update, coupled with analysis on future loss prevention technology trends.
Retail crime trends have been changing for some time. Loss prevention / asset protection have not been immune from COVID19 innovation acceleration. As recent McKinsey retail research explained, in a matter of 90 days in 2020, we vaulted forward 10 years in consumer and business digital adoption.
Post my corporate career, I spent a significant amount of time researching growth opportunities and engaging with private equity portfolio technology companies and starts-ups in Silicon Valley, Europe, and India. Based on these market intelligence activities, I can confirm that the innovation funnel in all functions including loss prevention is being filled at a higher speed.
This article summarizes and expands on some of my high-level concepts shared in the LPF webinar. The future of loss prevention is bright, especially when you consider the general technology shifts taking place across harmonious retail channels.
By Tony D’Onofrio – CEO, TD Insights / Marcin Pilarz – CEO, Talkin’ Things
The latest retail industry research quantifies the challenge of global inventory distortion at $1.8 trillion with 81% from products being out-of-stock and 19% from overstocks. Lockdowns, misdirected inventory, and closed stores severely compounded challenges with inventory management. An estimated $570 billion in lost revenue has already been attributed to COVID-19 inventory distortion.
All industries now recognize that accurate inventory visibility is critical short term as we continue to recover from the crisis and long term to dynamically adjust product levels based on continuously changing customer purchasing patterns.
In early 2020, the retail industry was off to a very strong start. Through February USA retail sales grew 7.5%. Then March came in as a pandemic lion with a substantial part of the world hitting the pause button. We all very quickly learned the difference between essential and non-essential retailers. The financial pain for the global retail industry for all of 2020 will total over $1.6 trillion.
An April 2020 consumer survey found that consumers felt safest in grocery stores, followed by drug stores and big box retailers. Malls ranked lowest with only 33% of respondents saying they would feel safe shopping in these locations. Sixty-five percent of women did not feel safe trying clothes in dressing rooms, 78% felt unsafe testing beauty products, and 66% had similar concerns working with sales associates.
The impact of COVID-19 has delayed the arrival of the new roaring '20s projected at the start of the year and it is now setting up a very interesting 2021.
As the Economist asked in sharing their thoughts on the New Year, "do you feel lucky? The number 21 is connected with luck, risk, taking chances and rolling the dice. It’s the number of spots on a standard die, and the number of shillings in a guinea, the currency of wagers and horse-racing."
From a leadership point of view, I do feel lucky entering 2021, primarily because I have discovered the ONE word that will make the New Year successful. This one word is not complicated and you do not need a dictionary to understand its meaning. See if you can spot it as you read this year-end article.
Let's face it, the last nine months have not been easy for any of us. Leveraging the title from one of my favorite spaghetti westerns, 2020 to date has been the year of "the Good (pre-pandemic), the Bad, and the Ugly."
Routines that were years in the making were disrupted in the blink of an eye. For me personally, it was a fast-paced globetrotting career boarding a flight every week, even after very early retirement two years ago to focus on private equity emerging technology companies.
The global retail industry will decline over $1.6 trillion this year. We all very quickly learned the difference between essential and non-essential retailers.
But much like the hero in many of our movies, in the end multiple of us are emerging refreshed, stronger, and better prepared for a world that has forever changed.
What will I NOT miss in the post COVID-19 "new normal"? What is the most important personal asset highlighted by this crisis? What world does the virus leave behind? How do these changes link to the retail industry?
In retrospect, the timeline of the pandemic to date makes for very interesting reading.