This era is the first time there have been six generations of consumers co-existing, spending and influencing retail models: The Silent Generation (1928-45), Baby Boomers (1946-1964), Generation X (1965-1980), Millennials (1981-1995), Gen Z (1996-2010) and Generation Alpha, (2010-2024). These generations were raised in significantly different social, cultural, technological and political atmospheres which have ultimately begotten different values, wants, and needs in adulthood. No more keenly have these differences been felt, than in the fast-paced world of retail.
In the old world, brands were at the centre of the consumer journey - today, people are. Millennials, Gen Z and increasingly Generation Alpha are shopping online and directly through social media, while Baby Boomers and Gen X customers remain more focused on practicality and value, largely preferring physical shopping experiences. Nevertheless, the age-old mantra of retail holds true: brands need to be where their customers (whatever their age) are. The challenge today, however, is how can brands traverse the infinite loop of inspiration, exploration, community and loyalty when each generational cohort has different expectations.
Transformational shopping behaviour
While the changes in shopper behaviour have been largely incremental between the Baby Boomer and Millennial generations, the acceleration of change between Millennials and Gen Z has been transformational. Gen Z has grown up with radically different priorities, influences, and technology than previous cohorts, causing their path to purchase to blur somewhat. Brands are grappling with the fact that their primary marketplace (social media) is also their entertainment centre, social hub, learning platform, and news source, making shopping a medley of influences and mindsets.
Disruption is everywhere and a belief that the old ways of working, planning and fulfilling customer expectations will succeed in the future is flawed. To be relevant today, brands need to know and understand their consumers. They must be authentic and real, communicate in context and create experiences that emotionally engage. Forget the specifics of demographics for one moment and let’s take a step back and look at the big picture. For all the data, nuance and generational exceptions, the one thing we’re really talking about is the ability to meet large-scale, profound changes when they happen. Sounds simple when you think about it like that, but so often brands today are still held back by dated technological stacks, incapable of providing the practical innovation needed at the pace required to manage shifting consumer demands.
Unified supply chain commerce
In order to move at pace, innovate into the white spaces and take advantage of technological advances like Agentic AI, brands need to connect supply chain and commerce functions together in a single, unified platform approach. We call this supply chain commerce: the process of transacting and orchestrating the flow of goods and services to and from businesses to the end consumer. It includes every step involved in manufacturing final products, distributing them to retail markets, and delivering them to the ultimate customer through direct shipment or a network of retail stores. The end goal is to have all solutions interact and co-exist to master the art of supplying customers with the goods they want; how, where and when they desire them, regardless of their generational cohort. Supply chain management software separately focuses on unifying the journey from raw materials to manufacturing to distribution to retailer.
Omnichannel commerce software focuses on providing a consistent customer-facing retail experience across every sales channel, either digitally or in-store. This is made possible by connecting the back-end retail operations to the front-end via unified platform technology, enabling interaction with the customer whenever needed. The end goal of supply chain commerce is to have all solutions interact and co-exist to master the art of supplying customers with the goods they want; how, where and when they desire them, regardless of their generational cohort.
Disruption is the new normal
Disruption has become commonplace and (like it or not), it will continue as new generational cohorts like Generation Alpha (and eventually Beta) begin to exert their influence through wallet share - disruption is the new normal. The only true answer to disruption and evolving, fast-paced consumer trends and expectation is to have a unified approach that delivers greater agility, flexibility and innovation across your entire supply chain and commerce offering. Forget the naysayers, retail isn’t dying, it’s being reborn as a networked, AI-powered, omnipresent engine of connection. The only question that you really have to ask yourself is this: ‘do we have the vision and the tools to keep up?’
Pieter Van den Broecke, EMEA Leader Supply Chain Strategies at Manhattan
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