Experience, Scale, and AI

The Triple Disruption Reshaping Global Retail

Global retail isn’t just evolving but undergoing a fundamental transformation—driven by rapidly rising consumer expectations of shopping channels, processes, and standards of experience and availability.Consumers have long expected more than just a good product; they want seamless, hassle-free processes across an ever-growing network of touchpoints. Every interaction in the shopping process directly influences the perception of a company – and every inconsistency increases the risk of losing customers to the competition. Social commerce^[i], ultra-fast delivery, and predictive personalization are no longer optional extras; but central requirements for remaining relevant in markets where convenience and positive shopping experience shape loyalty of the customers.

The Experience Economy

For retailers and manufacturers, it is now more about orchestrating an ecosystem of positive shopping experiences than simply selling products. Those who want to retain their customers in the long term should understand these changing customer expectations and offer holistic shopping experiences that include high-quality products, personalised services and positive emotional moments and connection. 

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In Tech & Durables, reliability and care matter as much as the device itself. On-time delivery (24%), white-glove installation, and proactive maintenance have become key-differentiators. Consumers expect seamless post-purchase support (10%), flexible payment options (8%), and loyalty programs (2%) that reward engagement. Discovery of new products has expanded to platforms like TikTok and Instagram, where AR try-ons, influencer-led recommendations, and one-click checkout compress the path to purchase in minutes. 

The Scale Imperative

The old model of incremental growth through store expansion is collapsing under the weight of global, predominantly virtual market participants and new, cross-border distribution opportunities. “Chinese marketplaces like Temu and AliExpress are rewriting the rules of engagement, where affordability meets speed and scale. As trust barriers erode, expect these platforms to move beyond accessories and small tech into mainstream categories, redefining global shopping behaviours” explains Namrata Gotarne, Director Global Strategic Insights at NIQ

Scaling is now driven by digital acceleration. Online channels have become the global growth engine for Tech & Durables, delivering 8% growth from January to September 2025 versus the same period in 2024, compared to just 3% growth in offline channels. This shift underscores the urgency for retailers to master digital ecosystems, optimise search visibility, and invest in event-driven campaigns that capture demand in real time.

The Tech Supremacy

Artificial Intelligence is rapidly becoming the essential operating system for retail. Its potential spans across the entire value chain, from hyper personalization that anticipates needs to automation that adjusts warehousing and delivery to the necessary circumstances in real time. 

Retailers can automate inventory checks, accurately predict demand, and create new and personalized shopping experiences through AR, VR, and conversational AI. These capabilities not only improve efficiency, but also redefine engagement and convenience, and drive new revenue streams such as retail media networks and dynamic pricing engines. 

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“Success will come to those who design ecosystems where omnichannel journeys feel effortless and AI amplifies personalization rather than replacing human judgment. In a market defined by choice and complexity, leadership is about mastering technology while safeguarding authenticity; turning data into intelligence, intelligence into loyalty, and loyalty into longterm growth & profitability”, mentions Namrata Gotarne, Director Global Strategic Insights at NIQ.

Lead the change to win

Companies are well advised to move beyond enabling transactions and instead orchestrate holistic experiences. This requires targeted investment in constantly evolving technologies such as AR and conversational AI, in loyalty ecosystems, and in service layers that elevate simple convenience into true differentiation. Experience design^[ii] should become a board-level priority. At the same time, organizations need to achieve economies of scale through tech-enabled agility by accelerating AI-driven forecasting, dynamic pricing, and automated fulfillment. Robotics and predictive analytics help reduce costs and increase reliability at scale.

Preparing for an era of AI-integrated commerce is equally critical: product catalogs, pricing modules, and loyalty programs need to be customer service-oriented in order to integrate seamlessly with AI platforms and voice assistants. Competition for digital, algorithmic visibility will become as important as traditional shelf presence. Finally, trust should be treated as a strategic advantage. This means developing AI systems that explain decisions transparently, comply with legal requirements, and balance automation with human empathy. Trust is the currency that drives adoption and long-term growth.

Sources:

gfknewron Consumer; What are the main reasons you decided to buy from that retailer? Period: Q2 2024 – Q1 2025

NIQ Market Intelligence, Retailer Channel, International Coverage excluding North America

NIQ Consumer Outlook 2025

[i] Social commerce describes the shopping process that is initiated by recommendations from influencers on social media platforms such as TikTok, Instagram, and others.

[ii] Experience design describes the development of a holistically orchestrated shopping experience process.

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Based on a partnership between NIQ/GfK, gfu and IFA Management, we regularly inform you about market developments and trends from the home & consumer tech sectors. You will receive interesting insights, current market figures, consumer trends and much more professionally prepared from the sources of the three competent partners.