Top Themes in Retail and Apparel in 2024 - Thematic Intelligence

Top Themes in Retail and Apparel in 2024 - Thematic Intelligence

Summary

In this report, we identify the top themes that are expected to impact the global retail and apparel sectors in 2024. For each theme, we offer a definition of the theme, highlight trends and opportunities, and then give key considerations for brands and manufacturers.

In 2024, the major themes impacting the retail sector will be: inflation, globalized retail, mergers & acquisitions, ESG, artificial intelligence and channel shift.

Key Highlights

Macroeconomic conditions during the post-COVID era have so far been defined by persistently high levels of inflation. The fallout from Russia’s invasion of Ukraine has forced food and fuel prices up as supply has been restricted, while elevated savings levels have pushed up the level of core inflation, due to elevated consumer spending power stimulating total demand in the economy. Whilst high inflation has been persistent over the past two years, it has started to ease, and we expect it to continue to ease across most markets in 2024.
While artificial intelligence (AI) has been used by retailers for some time for tasks such as inventory management and forecasting, advances have been made in other areas such as personalized marketing, customer service, price optimization and supply chain management. As e-commerce continues to become more popular and data-driven decision making becomes more important, the implementation of AI in retail will accelerate in the coming years.
In an environment of low growth, rising costs, and lower margins owing to high inflation, non-essential consumer spend has fallen as consumers make less frequent purchases and are trading down. As this limits retailers’ ability to achieve organic sales growth, they must look to other means of increasing their revenue and consumer base. Mergers & acquisitions (M&A) can be a key way of achieving this, and it can also help retailers achieve economies of scale to help counteract rising operating costs.
The hyperconsumption of content on social media platforms like TikTok, Instagram and Youtube has opened a world of opportunity for brands to reach consumers and access new markets, with consumers increasingly willing to order items from abroad. E-commerce has become a relatively low risk and capital-light way for brands to gain global scale, operate in new geographies and take on established retailers.

Scope

• GlobalData breaks down the top themes expected to impact the retail sector in 2024.

Reasons to Buy

• Themes are disruptive, so it's easy to be blindsided by industry outsiders who invade your sector. Understanding the themes ecosystem will get you ahead of the curve.
• Understand the themes emerging in 2024, allowing you to grasp a wider view of changes in consumer behaviour and how it will impact your markets.
• Explore how emerging themes in retail and apparel are allowing industry leaders to evolve, so you can better position yourself for long-term success.
• An easy-to-use framework for tracking themes across all companies in all sectors
• Companies who invest in the right themes become success stories; those who miss the big themes end up as failures.