Which Consumers Will Buy | Retail Reborn Season 2

The Business of Fashion Podcast

The Business of Fashion

Fashion & Beauty, Business, Arts

4.6 • 770 Ratings

🗓️ 4 April 2022

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

McKinsey’s head of retail practises in Central and South America Tracy Francis, luxury analyst Erwan Rambourg and Warby Parker’s SVP of retail Sandy Gilsenan join Doug Stephens, founder of Retail Prophet, to examine the global forces redefining consumer behaviour and circumstances, and the implications on retail habits.

BoF assesses how the climate crisis and economic downturns are impacting consumer behaviour and retail practices, before addressing the new centres of wealth and income polarisation on a global scale. In the US, for example, more than 50 percent of American wealth in 2020 was held by Baby Boomers, or those born between 1946 and 1964, while Millennials held less than 10 percent, according to Harvard Business Review. In contrast, young consumers in China are powering an unprecedented level of spending as the first generation to come of age during China’s economic revolution — almost 80 percent of luxury spending in China today is by those under the age of 40.

The conversation goes on to analyse younger consumers’ relationship with luxury, and the industry’s evolution in democratising access for such consumers, before considering the strategy behind one direct-to-consumer brand’s post-pandemic brick-and-mortar expansion plan, attuned to the next-gen consumer whose expectations far exceed those of previous generations.

Follow the series to ensure you never miss an episode and discover actionable insights into the opportunities and challenges the consumer of tomorrow will bring, and how retail’s transformation will impact your business.

Brookfield Properties is building marketplaces of the future that meet the needs of the modern shopper. Discover more.

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Transcript

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0:00.0	Understanding consumer behavior is tricky business. While demographers,
0:08.8	economists, and marketers attempt to offer more categorical means of understanding us and
0:13.8	our behavioral tendencies, shorthand and generalizations often don't tell the whole story,
0:19.8	especially when exploring behaviors across
0:21.9	global markets and cultures. I'm Doug Stevens, founder of retail profit. And in this second
0:28.1	season of Retail Reborn, the Business of Fashion's podcast series on the fast-changing
0:32.6	retail industry presented by Brookfield Properties, we're exploring the consumer of the future. Who are they?
0:40.0	And how are their economic, technological, and social reality shaping new behaviors and
0:45.4	relationships within retail? And so, in this, our second episode, we thought an important question to tackle was who are
0:56.8	the consumers that will power the future of retail, which given interconnected global markets,
1:02.5	unique economic and social circumstances, pervasive technological disruption and fast-moving
1:08.3	social and environmental trends, is an infinitely more complex question
1:13.3	today than it ever has been. And sitting at the core of it all, the driver of much of our
1:19.5	consumer behavior rests in the answer to an increasingly complex question. To what extent
1:25.2	are we as consumers secure in our economic and social futures?
1:35.6	This is a really interesting question, and I agree with where you started, which is the
1:39.6	experience is so different across different countries, right? So if you take, you know, the Chinese
1:45.0	millennial consumer, you know, their outlook in terms of growth of their prospects is significantly
1:51.2	different to the American consumer, which in turn is significantly different to the Brazilian
1:55.9	consumer. That's Tracy Francis, a senior partner with McKinsey and Company based in Sao Paulo, Brazil,
2:02.6	where for many years she led the firm's consumer and retail practice in the region.
2:07.3	To her point, the economic situations of consumers across markets couldn't be more different.
	...

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