We Are Focused on Today, but What About Tomorrow? - By John Hendrie

Our business world and marketplace spins and changes with alacrity, most events out of our hands but often affecting our business. It is like a five year plan; we do the numeric and mental gymnastics, full well knowing that in six months, certainly a year, the dynamics have created change. So, we are continually amending the premises and projected plans and results. The exercise has value, because we are forced to think, be innovative, add perspective, be strategic.

The National Retail Federation recently presented a Blog, featuring Ira Kalish, the Director of Global Economics for Deloitte Research and his look at long term planning for 2020, what retail looks like then and a preview of the Consumer profile. The results were laid out in a report, “Changing Shape of the Global Economy”.

As we project into the future, he noted the value of learning from the past, particularly 2008 and 2009, which he highlighted. “…massive consumer leveraging in the U.S., U.K. and Spain; the collapse of the asset price bubble; emerging currencies rising; U.S. consumers paying down debts and saving more; housing no longer being seen as a source of economic growth; China’s move towards consumerism and consumer spending rising as a source of GDP; and the challenges faced in Europe due to imbalances between countries like Germany and Portugal, Ireland and Spain.” I am sure we all knew this!

Absorbing this recent history, he looked at the Consumer Economy of 2020, noting the challenges we retailers have on our plates, such as “…the massive increase in emerging middle classes and the disproportionate share of growth in emerging areas of the world like Indonesia, Columbia and Africa. The effects of an aging population in an increasingly affluent world will also be a key consideration for retailers of all shapes and sizes, while hot markets with younger demographics (India, Middle East and Africa) will also keep global retailers on their toes”. Kalish also considered the impact of obesity, changing global food market dynamics, an ever-increasing focus on sustainability and the possibility of a social media revolution could play a heavy role within the consumer economy of 2020.

This are all pretty heady considerations when right now I am rebuilding my Brand, reengaging my employees and looking to get my product and facility up to snuff. Those are my priorities. No doubt, but do not place your head in the sand, either. He talks to some bedrock philosophies, too, which we have practiced. Kalish believes that aligning company values with those of consumers will be critically important, as will leading and listening to customers. Taking care of your brands, your people and your investments will also pay dividends when it comes to engaging with consumers, something that will be fundamental for 2020’s consumer (and not a bad idea for 2011). There are lessons here for the Customer Experience, both now and forever. Harken!

Reader Comments:

Be the first to leave a comment for this article