Understanding Retail Consumer Trends

20 years ago, transparency was seen as a risk. Today, it's become the strongest currency in building customer trust. Take ANITA DONGRE's brand- Grassroots. By being completely transparent about their: > Organic fabric sourcing > Fair wage practices > Sustainable production methods  They've built unprecedented customer loyalty. 65% of shoppers now switch brands based on supply chain transparency (FMI- The Food Industry Association Report, 2024) Transparency has become a cornerstone for fostering customer loyalty, and brands like Anita Dongre’s Grassroots are setting a powerful example. By openly sharing their methods and practices, they build trust with consumers who prioritize honesty and ethical sourcing. Today's customers invest in values, caring about product origins, makers, environmental impact, and fair labor. But here's what most brands miss: transparency isn't just about sharing information—it's about building trust. With over 20+ years in retailing across India, Pakistan, and Bangladesh, I’ve learned that: > Being transparent about challenges, processes, and mistakes turns customers into trusted partners who understand our value and commitment. > The future belongs to brands brave enough to open their books and share their stories. Because in today's connected world, the most valuable thing we can offer isn't just quality products—it's authentic transparency. What transparency practices would you like to see more brands adopt? #RetailStrategy #CustomerTrust

The Brutal Truth About Consumer Trust in Home Care Why do some brands inspire trust effortlessly while others struggle to convince consumers? Home care isn’t like beauty or food, where customers instinctively check labels. For decades, legacy brands have relied on familiarity over transparency—building trust through big advertising spends rather than real ingredient disclosures. But that’s changing. Consumer trust is now shifting toward brands that disclose, educate, and take a stand. 1️⃣ The Parle-G Effect: Legacy Trust vs. New-Age Transparency For years, people have trusted brands like Surf Excel, Vim, and Harpic—not because they knew what was inside, but because they were always there on shelves and TV screens. This is the "Parle-G effect"—familiarity breeds trust. But today, trust is no longer inherited; it’s earned. The rise of brands like Kapiva (Ayurveda transparency), The Whole Truth (ingredient honesty) shows how modern brands build trust differently—by being upfront about what’s inside. 2️⃣ The Johnson & Johnson Shock: When Legacy Trust Breaks For decades, J&J was the gold standard for baby care. But lawsuits over talcum powder contamination with asbestos shattered consumer confidence worldwide. Even in India, brands like Mother Sparsh surged because young parents started reading labels—they no longer assumed safety just because a product was from a heritage brand. 3️⃣ The Patanjali vs. FSSAI Scandal: Why Trust Must Be Backed by Proof Consumers initially believed in Patanjali’s “natural” positioning. But repeated quality violations (like the recent FSSAI crackdown on misleading claims) eroded trust. The lesson? Trust cannot be built on slogans alone. If a brand claims toxin-free, natural, or safe—it must prove it consistently. 4️⃣ The Decathlon & Ikea Strategy: Trust Through Radical Transparency Decathlon shares detailed product breakdowns—how much polyester is used, where a product is made, and even the carbon footprint. Customers trust them because they don’t have to “guess” what they’re buying. Ikea lists every material, every environmental impact, and even assembly instructions upfront. No surprises. Just facts. In home care, Koparo is taking the same approach—putting ingredients front and center. Not just saying "toxin-free," but explaining why certain ingredients matter for better or worse (like the bioaccumulation of harmful chemicals in traditional cleaners). So What’s Next for Consumer Trust in Home Care? ✅ Brands that educate will win over brands that advertise. ✅ Ingredient transparency will become a non-negotiable (just like food labels). ✅ Consumers will demand not just safe products—but proof of safety. At Koparo, we’re all in on radical transparency. No vague claims. No marketing gimmicks. Just home care that’s safe, effective, and backed by science. The real question is—do you know what’s inside your cleaning products? #ToxinFree #Koparo #HomeCareRevolution 🚀

If You are running an omnichannel brand, one of the most actionable and impactful analysis that you can do with your data is look at the ratio of online to offline sales, benchmarked against your national average. You can cut it by city/state/product/SKU and each cut tells you something different. Start by establishing your national average online/offline ratio. Say it's 45:55. Now look at every city, state, and product model against that baseline. Few scenarios: Scenario 1: Higher-than-average online share (say 80:20 in a city where the national average is 45:55) = distribution problem, not a demand problem Consumers want your product and that is evident from your online sales. To buy your product, they are waiting for delivery and forgoing the in-store experience. Your brand has demand in that market. What needs improvement is availability, visibility and advocacy in retail counters. Every rupee you invest in distribution here has a higher probability of generating returns because demand is pre-validated Scenario 2: Lower-than-average online share (say 10:90 in a state) = one of two things, and you need to figure out which. Either your offline distribution is so strong there that consumers don’t have too many reasons to buy online, which is the healthy version, and you'll see it reflected in strong secondary sales numbers. Or your brand simply don’t have demand/PMF and consumers aren't searching for you online or finding you offline. The way you distinguish between the two: check absolute volume. If the 20:80 market is also a high-absolute-volume market, your offline game is strong and the low online share is a sign of distribution maturity. If it's a low-absolute-volume market with a low online share, you have a brand salience and demand problem. And trying to pressurize Distributors and sales team will not work. In fact it will only lead to more churn which will further reduce the sales volume in that geography. Here the Product and marketing team needs to get to work and solve for product market fit and brand salience in that geography. Now apply the same logic at the model level. If a specific SKU has a 50:50 online/offline split nationally while the rest of your portfolio sits at 30:70, that SKU is under-distributed relative to its demand. Retailers either aren't stocking it, don't know it exists, or aren't being incentivised to push it. This is an assortment and trade marketing problem, not a product problem The beauty of this ratio is its simplicity. You don't need a sophisticated data platform to compute it. You need your e-commerce order data by pincode and your secondary sales data by pincode, both of which any omnichannel brand will always have. One simple table gives you the diagnostic. The ratio doesn't tell you why a market is over- or under-indexed. But it tells you where to look, and whether the problem is distribution, brand, or product. And that's usually enough to make the next decision.

It’s fascinating to see two very different retail narratives playing out right now in the Australian market and the common thread tying them together is how promotional activity and channel strategy impact profitability. On the one hand, Adore Beauty Group is demonstrating that a disciplined, omnichannel strategy can drive not just sales but improving margins and profit performance. After accelerating its omni-channel model, blending online strength with physical store expansion, retail media and personalised loyalty, the business reported record EBITDA and improved gross margin, with plans to scale physical stores meaningfully over the next few years. On the other hand, Adairs Retail Group shows the risk of leaning too heavily on prolonged discounting and promotional activity. While the company is on track for solid top-line growth, margin pressure from extended promotions has dented gross profitability, even as leadership works to recalibrate pricing and promotional cadence. This pattern isn’t unique to these two names. What’s interesting about Adore’s results is that their physical retail rollout is outperforming the core online business, which highlights a broader trend we’re seeing across brands like Billini, LSKD, Proud Poppy Clothing and Arms Of Eve - where well-executed store networks are proving not just additive but strategically critical. These retail footprints can capture customers and margin in ways that pure online channels alone struggle to sustain. The contrast here speaks to a broader lesson in retail today: discounting may drive short-term revenue, but it comes at a real cost to margin and long-term profitability. Meanwhile, strategies that thoughtfully balance channel expansion, inventory discipline, loyalty and customer experience appear to unlock stronger financial performance. It’s still early days in this cycle, but these case studies are already offering valuable real-world evidence for any brand thinking about how to balance promotional activity with sustainable profit growth. 

Global is out. Local is in. But maybe not for the reason you think. Ipsos 2025 reports that 70% of consumers now prefer to buy products made in their own country. A huge shift, especially for global lifestyle brands. Report: https://lnkd.in/ddeHVDn4 But here’s what’s interesting: In The NXT Consumer Germany report, when people were asked what characterises a “sustainability dream brand”, only 3% mentioned that local production characterises a brand towards being a sustainability dream brand. Report: https://lnkd.in/dZHZtebG So if it’s not sustainability that’s driving this localism… what is? I believe we’re seeing something deeper and more complex: 1) Geopolitical distrust Global trade tensions and nationalism (e.g. U.S.–China decoupling, EU debates, etc.) are politicizing purchasing. Consumers are expressing national loyalty or scepticism toward foreign powers through what they buy. Ipsos highlights this as a fracture in globalisation, not necessarily a rise in environmental consciousness. 2) Cultural familiarity & identity In an unstable world, local brands feel safer, more “like me”. It’s a form of emotional risk-reduction and an identity statement, not an environmental one. Locality here signals cultural relevance, not carbon savings. 3) Economic pragmatism Post-COVID and inflation-era realities have made supply chain resilience and availability key concerns. “Local” is perceived as more reliable, even if it’s not more sustainable. 4) Mistrust in greenwashing Some consumers may trust local companies more to be ethical and transparent, not because they’re more sustainable, but because they’re more accountable and visible. 5) Retail nationalism Particularly in Germany and Nordic markets, there’s a historic undercurrent of retail nationalism, supporting local economies and SMEs as an act of social responsibility, not necessarily environmentalism. In short, the new “local” is not about being greener. It’s often about feeling safer, prouder, and more connected. This is an important aspect! As a strategist working with global brands from a Nordic base, this is a trend we can’t ignore. “Local” may be emotional, political or cultural, but either way, it’s a powerful consumer signal. . How can global brands feel more local, without pretending to be something they’re not? Local activations, need a local mindset and a local playbook. More: https://lnkd.in/d9CBcf8n #Mammut #outdooractive #patagonia #salomon #atomic #dynafit #salewa #local #Nnormal #hoka #sweden #fashion #outdoor

GLP-1 users are eating 40% less food. So why are they spending MORE on groceries? New data from Dan Frommer's The New Consumer Consumer Trends 2026 reveals something retailers need to understand: 428 current GLP-1 users report they're "trading up" to premium products across every category surveyed. Not some categories. Every single one. The net "trading up" scores are striking: Fitness/wellness products: +51% Energy drinks: +39% Beauty products: +35% Fresh fruits and vegetables: +35% Why? 56% say "I eat less overall, so I can afford higher-quality food." Another 56% say "I want to enjoy the meals I do eat more." This is the strategic inflection point most food retailers are missing. The conventional response: Cut costs to maintain volume as consumption shrinks. The Strategic Renewal response: Reframe your capabilities around value per transaction, not transactions per customer. Here's what the data shows: ~24% of US households now include a GLP-1 user. By 2030, these households will represent 35% of food and beverage sales (Circana). This isn't a niche. This is your customer base reframing what they value. And yet—most retailers are still optimizing for volume. More SKUs. Bigger pack sizes. Promotional pricing to drive cart size. That's competing on convenience in a market that's actively moving toward quality. The companies that will win aren't the ones cutting portions or launching "GLP-1 friendly" product lines. They're the ones who genuinely reframe their value proposition: from feeding people more to feeding people better. We will discuss this more in our Nearly Now 2026 coming out in the new year. What would that look like in your business? How would your merchandising strategy change if you assumed customers were making half as many food decisions—but were willing to pay twice as much for each one? #StrategicRenewal #RetailStrategy #CompetingOnQuality #ConsumerTrends

Consumer confidence is not a soft metric. It is a canary in the coal mine. The University of Michigan's preliminary April consumer sentiment reading fell to 47.6, down from 53.3 in March and below analyst expectations. If that number holds, it is the lowest reading in the survey's 70-plus-year history. The previous low was 50, recorded in June 2022, when inflation was crushing American households. What matters here is not just the number. It is the mechanism. Consumers do not wait for economists to certify a downturn. They feel risk firsr, and then they act on what they feel. Year-ahead #inflation expectations jumped from 3.8% to 4.8% in a single month, the largest surge since April 2025. That is not a prediction. It is a behavior change already in progress. #Consumers who expect higher prices start spending differently today. Notably, 98% of interviews were conducted before the April 7th cease-fire announcement. The final reading may improve. But even that possibility reinforces the broader point: consumer psychology is now exquisitely reactive to geopolitics. A conflict thousands of miles away can reshape Main Street demand almost overnight. For business leaders, this is the lesson: demand is no longer shaped only by prices, wages, and employment. It is shaped by perceived stability. And confidence, once lost, does not return on a schedule. In #retail, especially, that matters. Consumers may keep spending for a while, but they change how they spend long before they stop. They trade down. They delay. They tighten what feels necessary. The wallet closes in stages, not all at once. I help lead marketing and brand strategy across 25+ brands and tens of thousands of points-of-sale. What I'm watching right now is not whether consumers will stop buying, it's the early shift in what they value most and what they're willing to pay full price for. That shift is already underway, and it will hit discretionary categories first. The signal is in the sentiment data. The question is whether we're reading it early enough to adjust. The market loves hard #data. But #sentiment is often where the future first clears its throat. The Wall Street Journal #marketing #brands #shopping #ConsumerBehavior

Ahold Delhaize reaches 11% e-grocery penetration and turns it profitable Ahold Delhaize has reached a structural milestone in food retail: e-grocery profitability at scale. 2025 performance • Group sales: €92.4bn (+3.4% comparable) • Operating income: €3.54bn (+27.2%) • Operating margin: 4.0% • Net profit: €2.26bn (+28.4%) • E-commerce sales: €10.27bn (+11.2%) 🤩 Online now represents ~11% of total group revenue — and for the first time, it is profitable. Benchmark context • Walmart : ~18% of total revenue from e-commerce (FY2025). • Tesco: ~13.5% online share of UK sales (FY24/25). • Migros Ticaret : ~20% online penetration at company level. In contrast, Swiss incumbents such as Coop or Migros-Genossenschafts-Bund operate structurally below 2% online penetration. On automation: discipline over spectacle The critical debate is not automation vs. no automation. It is where and how much. The era of heavily capitalized, centralized big-box fulfillment models — as seen with players such as Ocado Group — has shown the capex intensity and long payback cycles of full front-to-fulfillment automation. In grocery, operating margins sit structurally between 2–5% EBIT in mature markets. Over-automation can destroy returns faster than it creates efficiency. What Ahold Delhaize demonstrates is different: • Leverage the existing store network • Shift to a store-first omnichannel model • Use micro-fulfillment centers selectively and complementary • Reduce capital intensity in same-day delivery • Improve productivity without over-investing Automation is a tool — not a strategy. Retailers that treated online early as a core strategic channel, banned the word cannibalization, and manage a holistic customer P&L across store, online, retail media and loyalty, structurally outperform those optimizing channels in isolation. Under CEO Frans Muller, the “Growing Together” program targets €5bn savings by 2028 via AI and automation — but with capital discipline. Scale matters! Capex discipline matters more. E-grocery scale is no longer the question! Margin discipline is. #aholddelhaize #fransmuller #walmart #tesco #migrosticaret #coop #migros #ocado #retail #grocery #ecommerce #egrocery #omnichannel #automation #microfulfillment #retailmedia #ai #digitaltransformation #customercentricity #ecosystem #profitability #margins #foodretail #fmcg #cpg #investors #netherlands #uk #usa #turkey #switzerland

From Wholesale to Omnichannel: A 25-Year Evolution in Luxury Distribution The luxury industry's distribution model, particularly for jewelry, watches, perfumes, and cosmetics, has transformed dramatically over the past 25 years. Drawing from extensive experience in this sector, I’ve witnessed the strategic shifts that have reshaped how luxury brands connect with their customers. 1995–2008: The Wholesale Dominance Luxury brands leaned heavily on wholesale distribution, partnering with department stores, multi-brand boutiques, and specialty retailers. This approach minimized operational costs and market-entry risks but sacrificed control over pricing, customer experience, and visual merchandising. Hidden costs, including commissions and logistics complexities, further complicated the model. 2009–2019: The Rise of Digital and Travel Retail Global tourism, especially from Asia, turned airports into luxury retail hubs, elevating travel retail's importance. Brands refined wholesale strategies by aligning with premium partners to strengthen brand positioning. E-commerce emerged cautiously, contributing only 5–6% of luxury sales by 2019, serving more as a complementary channel than a primary driver. 2020–2021: The Pandemic-Driven Shift The COVID-19 pandemic upended traditional channels, halting travel retail and forcing physical store closures. This crisis accelerated digital adoption, with brands investing heavily in e-commerce and omnichannel strategies. Online sales surged, becoming a cornerstone of luxury retail and reshaping consumer behavior. 2022–2025: The Omnichannel Era E-commerce now accounts for 20–25% of luxury sales, with brands prioritizing direct-to-consumer (DTC) models through owned online platforms and physical stores. This shift enables higher margins, complete control over customer experience, and access to valuable consumer data. Omnichannel services like click-and-collect, virtual consultations, and personalized clienteling are now standard. Social commerce, live shopping, and influencer partnerships, particularly in Asia, are redefining distribution. This journey reflects the luxury sector’s ability to adapt, balancing timeless sophistication with modern accessibility. If you’re a luxury brand leader seeking to optimize your distribution strategy, let’s connect. I specialize in refining channels, boosting profitability, and enhancing brand experiences. #LuxuryIndustry #Ecommerce #Omnichannel #LuxuryRetail #Consulting

When was the last time you actually read a privacy policy before clicking “accept”? Most consumers don’t. But they’re starting to care more than ever. Google searches for “data privacy” have jumped by 239% over the past decade. 56% of people say they wish they had more control over their personal data. And 87% of North Americans told McKinsey & Company they would not do business with a company they didn’t trust with it. It’s fascinating because privacy used to be a “backend” issue. Something IT or legal handled. Now, it’s shaping how consumers buy, how they engage, and how they feel about a brand. Apple’s “Sign in with Apple” wasn’t just a product feature, it was a branding move. It positioned them as the company that protects, not exploits, your data. And that shift is spreading fast. From CPG loyalty programs to retail media networks, the brands that thrive will be the ones that treat consumer data as an earned privilege, not a right. In FMCG, I’m watching this play out in subtle but important ways: – Consumers opting out of cookie-based personalization entirely. – Loyalty app downloads slowing unless there’s a clear value exchange. – PE-backed consumer brands realizing that data collection without transparency is a short-term play with long-term cost. Privacy is now a brand value. It signals respect. And it’s fast becoming a deciding factor in purchase decisions, sometimes even above convenience. 90% of consumers think governments and businesses should protect their data, but 70% don’t trust them to actually do it. That gap between responsibility and trust, is where leadership has to step in. If you’re leading a consumer brand today, your next competitive advantage might not come from a new SKU or pricing model, but from how transparently you handle data. Consumers are watching. And they’re voting with their clicks. What are you seeing in your category? Are consumers asking tougher questions about how their data is used? #FMCG #Consumerinsights #Consumerbehaviour #Trending