Weekly Roundup - State of the Consumer, Renault’s Fully Automated Facility and Uniqlo’s High-Tech Checkouts

The landscape of consumer behavior is undergoing significant changes. According to McKinsey ConsumerWise research, there are now nine trends shaping the global consumer sector. Middle-income consumers, despite concerns about inflation, are indulging in splurges, and aging consumers are also spending more rather than adhering to strict budgets. Traditional brand loyalty among older shoppers is diminishing, while young consumers in Asia and the Middle East are more likely to switch to higher-priced brands than those in Western markets. These shifts indicate unpredictable consumer behaviors, challenging consumer goods manufacturers and retailers to stay adaptable. Companies must develop a thorough, up-to-date understanding of consumer demographics, preferences, and shopping behaviors to stay competitive.

A survey of over 15,000 consumers across 18 markets, representing 90% of global GDP, has revealed subtle differences in consumer behaviors across various demographic groups, contradictory behaviors that defy traditional expectations, and certain categories poised for growth. Understanding these insights is crucial for businesses aiming to navigate the evolving consumer landscape successfully.

Renault Group has launched a fully automated logistics facility in Villeroy in collaboration with Exotec, marking a pioneering move in the automotive sector. The facility employs Exotec’s Skypod robots to streamline operations, significantly reducing human error and expediting parts order preparation by six times. Equipped with 191 Skypod robots, the facility handles various tasks such as picking, inventory, put-away, and compaction, demonstrating a scalable and adaptable logistics solution. The site is also energy-efficient, consuming 30% less energy compared to traditional setups by eliminating conventional handling equipment. It can prepare nearly 4,000 order lines per hour at peak times, with an overall daily processing capacity of up to 40,000 order lines. This initiative aims to increase the number of orders served by 25%, reinforcing Renault's commitment to customer satisfaction and operational innovation. The collaboration underscores Renault's dedication to technological advancement and excellence in supply chain management.

Fast Retailing, Asia’s largest apparel business and the parent company of Uniqlo, aims to achieve ¥10 trillion (US$63.6 billion) in annual sales through the adoption of innovative technologies like barcode-less checkouts and extensive data collection. This strategy, driven by Chief Information Officer Takahiro Tambara, involves integrating radio-frequency chips in price tags to enable swift, single-scan checkouts. Tambara's plan extends beyond the checkout process to every facet of the supply chain, leveraging RFID and other digital tools to streamline operations and enhance efficiency. This technological shift is crucial as Fast Retailing, which also owns brands like GU and Theory, experiences rapid growth in the US and Europe, driven by consumer demand for casual styles and competitive pricing against rivals such as Shein. Tambara emphasizes that the goal is to manage operations with the agility of a single store, even as the company scales up globally, ensuring that customer needs are met promptly and efficiently.

Read more on recent highlights

• G7 to set up semiconductor group to coordinate supply chains
• Italian prosecutors probing supply chain of around a dozen fashion brands
• Manufacturing industry trends 2024: The economy, AI, and supply chain
• EU’s new China car tariffs risk retaliation
• German government considers pausing supply chain law for two years
• How the world ran out of everything: Supply chain Scramble
• EU pork industry faces 'nightmare' if China restricts imports

Dive deep into research

"Enhancing supply chain information sharing with third party logistics service providers" by Valashiya, M.C. and Luke, R. (2023)

"Construction and implementation of cross-border e-commerce supply chain system under the background of green and low-carbon" by He, Y., Wang, Z., Liu, S. and Du, X. (2024)

Events

ProcureCon Europe

When: 17. - 19. September 2024

Where: Barcelona, Spain

What: ProcureCon is a series of conferences and events focused on procurement and strategic sourcing. The events bring together procurement professionals from a variety of industries to share best practices, network, and to learn about the latest trends and innovations in procurement.

Procurement & Supply Chain Live

When: 24. - 25. September 2024

Where: London, UK

What: Leading industry figures gather at the world’s fastest growing supply chain event – Procurement & Supply Chain LIVE – to discuss the most important and innovative ideas around the world of procurement, supply chain and logistics.

Supply Chain Transformation Summit

When: 16. - 18. October 2024

Where: Hamburg, Germany

What: An event focused on revolutionary thinking and action in supply chain management, emphasizing its evolution from a cost center to a strategic asset. As we navigate a new digital decade, the summit addresses the need for resilience, adaptability, and value over low cost, in response to geopolitical, environmental, and technological shifts. Industry leaders will explore the integration of emerging technologies like blockchain and AI, highlighting the human aspect of innovation in engaging with the workforce, partners, and customers.