Retail & Merchandising

In my years of leading retail strategy, I’ve seen countless 'tech revolutions' fail the customer. This week, ZARA might have actually cracked a milestone. Zara quietly launched an AI-powered Virtual Try-On this week. It works. It’s fast. And the quality feels… right. As someone who never really enjoyed trying clothes in a fitting room, I found myself intrigued, and, honestly, impressed. The tech is finally catching up to the promise. But this is about more than convenience. Imagine a world where we try on styles we wouldn’t dare pick up in-store. Where play, identity, and expression aren’t limited by body type, time, or confidence. Empowering, isn’t it? On top of this, scaling this tech means fewer returns. That's a massive victory for retail margins and an even bigger one for the planet. What would you try on, if all it took was a tap? #AI #Innovation Video source: Reda

A very easy way to improve your Amazon ads efficiency by at least 10% Let’s say you’re spending ₹4–5 lakhs/month on Amazon ads. Your ACoS looks okay. Conversion rate seems fine. But your gut tells you—you’re still wasting some money on irrelevant traffic You’re not wrong At Atomberg, we had found that some of our Amazon spend was going toward search terms that had no business seeing our ads: - “cheap fan” -“rechargeable fan” - “usb fan under 1000” None of these users were in-market for a ₹3,000+ BLDC ceiling fan. But we were still showing up. And paying for those clicks. And it’s not just us. I’ve seen 6–7 brands' Amazon ad accounts across categories over the last few years—same problem, every single time The fix? N-gram analysis Takes less than an hour. You don’t need to be a performance marketing expert. But the results compound What’s N-gram analysis? It’s breaking down every search term into its word components—1-grams, 2-grams, 3-grams—and then identifying patterns that consistently drive waste… or conversion. Example: “cheap rechargeable fan for hostel room” turns into: 1-grams: cheap, rechargeable, fan, hostel, room 2-grams: rechargeable fan, hostel room 3-grams: fan for hostel, etc. When you do this across all your search terms, you start seeing the real picture. Why this matters more than just checking your search term report: Search terms ≠ keywords a) One keyword can trigger 100s of different queries. Some convert. Most don’t. You need to find the patterns. b) Waste is diluted across low-volume terms. Maybe “rechargeable fan for hostel” spent ₹300. You ignore it. But what if 12 other queries with “rechargeable” spent ₹6,000 in total with zero conversions? c) Long-tail is infinite. N-grams are finite. You can’t negate every bad search. But you can block the core terms—“cheap”, “usb”, “mini”—once and be done with it. d) It helps you scale campaigns too. You can find goldmine phrases like “white ceiling fan”, “silent BLDC fan”, “fan for living room”—with 5x+ ROAS. Those became exact match campaigns What you should do: a) Pull last 3 months of search term data b) Break them into unigrams, bigrams, trigrams c) Create a pivot with spend, orders, ROAS by N-gram d) Negate high-spend, low-conversion N-grams (e.g., “cheap”, “rechargeable”) e) Boost high-ROAS ones (e.g., “bldc”, “ceiling fan white”) f) Add exact match campaigns g) Rinse and repeat monthly Try it. Guaranteed to improve efficiency at whatever scale you are operating If you want to read an expanded version of the post, link is in the first comment

For the past two years, CPG brands have been coasting on price hikes to keep revenue numbers up. And now? That strategy is running out of steam. I spend a lot of time talking to CPG leaders, and here’s what I’m hearing as we head into 2025: consumer confidence is weak, volume growth still hasn’t bounced back, and brands can’t rely on price increases anymore. The question I keep getting is—what now? - Global CPG sales grew 7.5% in 2024, but that’s down from 9.3% in 2023 and 9.8% in 2022. - 75% of growth came from price increases—not volume. Better than the 90% in 2023, but still not healthy. - Developed markets are slowing fast. U.S. & EU growth dropped to 4.5% in 2024, and volumes stayed flat. - Emerging markets are driving almost all global volume growth. They saw an 11% sales increase in 2024—twice the growth rate of developed markets. (Bain & Company) For the first time in years, raw material costs aren’t the #1 worry. Instead, every executive I talk to is worried about: 1. More competition for shoppers – Too many brands, not enough differentiation. 2. Consumers spending less – 80% of U.S. & EU shoppers are actively cutting back. 3. Retailers pushing back harder – The pricing power shift is real, and brands are feeling it. And if you look at where consumers are actually spending, the trend is obvious: ✅ Premium brands and private labels are thriving. ❌ Mass-market and mid-tier brands are getting squeezed. ✅ Shoppers want ‘value’—but that doesn’t just mean ‘cheaper.’ It means better quality, stronger differentiation, and clear benefits. So, Where Do CPG Brands Go From Here? - Volume needs to make a comeback. Price hikes won’t cut it anymore—brands have to focus on innovation, relevance, and real consumer connection. - Emerging markets can’t be an afterthought. If you’re only focused on U.S. and Europe, you’re missing the biggest growth engine. - Retailer relationships will define 2025 winners and losers. Brands that offer real category value (beyond price negotiations) will have the advantage. - If you’re stuck in the middle, you’re in trouble. Premium and private label are thriving—where does your brand fit? I’ve had so many conversations lately with CPG leaders trying to figure out their next move. If 2024 was the year of price hikes, 2025 is the year to rethink strategy. What are you seeing in the market? What’s the biggest challenge (or opportunity) for CPG this year? Let’s talk. 👇 #CPG #IndustryTrends #ConsumerGoods #RetailStrategy #FMCG #Executives

When L'Oréal uses AI to create new hair colors based on social media trends, they're in salons within weeks. Kraft Heinz—dead last in our study—still takes months to tweak a formula. After analyzing 26 major CPG companies at IMD's Center for Future Readiness, I discovered what separates winners from losers: The most future-ready companies treat consumer data like insider trading information. BACKGROUND: CPG in 2025 is brutal. Inflation persists. Gen-Z demands sustainability without premiums. Tariffs reshape supply chains daily. McKinsey & Company identified 150+ AI use cases for CPG transformation. Only 5 of 26 companies actually execute them. THE REVELATION: Coca-Cola didn't randomly launch Topo Chico Hard Seltzer. Their AI spotted the trend through social listening while competitors debated in boardrooms. By launch, they'd secured distribution nationwide. That's not innovation. That's prediction. What separates the top 5: L'Oréal (#1): 3.5% of sales to R&D. AI analyzes preferences real-time. Virtual try-on apps. Creates products from social trends. A 110-year company with startup velocity. The Coca-Cola Company (#2): Democratized AI internally. Every manager accesses demand forecasting. They analyze weather + social sentiment + sales simultaneously. These aren't tech companies selling beauty and beverages. They're prediction machines that happen to make products. THE WINNER'S FRAMEWORK: 1. AI at scale, not in pilots Winners integrate into workflows. Losers run demos. 2. Supply chains that anticipate Real-time visibility + AI forecasting = competitive firepower 3. D2C as intelligence goldmine 73% use multiple channels. Mine every interaction. 4. Disrupt yourself first Coca-Cola launched Costa Coffee, hard seltzers. Grew. Kraft Heinz protected legacy brands. Shrank. 5. Sustainable without premium Gen-Z spending hits $12T by 2030. They demand action at everyday prices. —— The inconvenient truth: Most CPG companies treat data like reporting instead of radar. Winners don't predict trends—they're already shipping products while competitors debate. Technological patience (knowing when to scale) + organizational agility (pivoting fast) = market domination. Three years from now, every CPG company operates like L'Oréal. Or they don't operate at all. P.S. Full Future Readiness Indicator here: https://bit.ly/3YTBzbX

With most Q2 results in, we’re getting a picture of retail performance. 🔄 A bit like in Uno, the reverse card is being played. Some retailers that have been performing badly are starting to see declines bottom out or are moving into modest growth (think Best Buy, Target, Foot Locker, Peloton, Victoria’s Secret, Gap). 📉 In contrast, some of the traditional star performers are struggling to keep up the fast pace and are seeing a slowdown (think Lululemon, Ulta, Dollar General). 💰 Are economic dynamics playing a role here? Partly. But strategy and competitive forces remain critical. Ulta has more competition, so too does Lululemon which failed to inspire with its womenswear in Q2. Target has recently invested a lot in price and value. Foot Locker, Victoria’s Secret and Gap all have turnaround programs. 🤔 On this front, don’t always buy the narratives retailers spin. Dollar General blames its weaker numbers on pressures on its customers. There is truth in this, but it has been true for a long time. The issue now is that inflation is not flattering the growth as much and there is more price competition in grocery. Oh, and some stores are terrible and are preventing sales and repeat visits.  🖼️ The long-term picture remains vital because quarterly results fluctuate and create noise. An example is Nordstrom, which has 3.4% growth this quarter, versus Dillard’s which has a 4.9% decline. Look at the Q2 numbers compared to 2019, and Dillard’s has grown sales by 4.4% while Nordstrom’s sales have grown by just 0.2%. A long term view is sometimes a better signal of the health of the business model. 🏡 Home related categories remain very pressured. A lot of this is linked to the more sluggish housing market: moving is an important driver of demand. Some bigger ticket purchases are financed, so high interest rates play a role too. ↔️ The market remains polarized with a balance of winners and losers. Out of the selection in the graph below, 17 retailers are in growth and 18 are in decline. 🐌 Growth rates have, generally, deteriorated since Q1. From the retailers shown below, 21 have lower growth rates than in Q1, 14 have higher growth rates. The average, overall growth rate has dropped by a modest 0.5 percentage points since Q1. So no recession, but some modest slowdown. #retail #retailnews #earnings #consumer #economy #shopping

Ever feel like your conversations hit a wall—fast? You’re asking questions. You’re showing up. But all you’re getting are surface-level answers... or polite head nods. Here’s the truth: It’s not just what you ask.  It’s how you ask it. Strong leaders don’t need to have all the answers. They need to ask the right questions—the kind that spark clarity, ownership, trust, and growth. Here’s a quick breakdown that’ll level up your communication game ⬇️ 🔓 Open-Ended Questions Use when you want reflection, dialogue, and real insight. They unlock honesty, creativity, and connection. 💼 Leadership & Team • “What’s your perspective on how this project is going?” • “What do you feel about the direction we're heading?” • “What do you need from me to be successful right now?” • “How do you think we can improve our team dynamic?” 🔄 Feedback & Growth • “What part of that feedback surprised you the most?” • “What’s been working well for you—and why?” • “What would make this feedback more useful?” 🔍 Problem Solving • “What options have you considered so far?” • “What's the root cause, as you see it?” • “What would success look like in this situation?” 🤝 Coaching & Mentoring • “What’s holding you back right now?” • “What do you want to be known for in this role?” • “How can I support you without overstepping?” 🔐 Closed-Ended Questions Use for structure, speed, and decision-making. They bring focus, clarity, and momentum. ✅ Quick Check-ins • “Did you send the proposal?” • “Is the deadline still realistic?” 📊 Data & Decisions • “Do you agree with this plan?” • “Is that within our budget?” ⏱ Operational • “Has the issue been resolved?” • “Did the system go live on time?” 🎯 Pro Tip: Open-ended questions build trust and unlock real conversations. Closed-ended ones move things forward fast. Smart leadership is knowing when to use which—and why. Here’s the bottom line: Your questions shape your culture. They either open doors—or close them. Ask better, and you lead better. 👇 What’s one question that’s helped you unlock deeper conversations at work? ♻️ Share this with your network if it resonates. ☝️ And follow Stuart Andrews for more insights like this.

Amazon and Flipkart own the traffic, but we own 10 lakh+ customers. That's a ₹750cr+ goldmine they'll never have. India has 800+ D2C brands in a ₹7 lakh crore market, but most of them don’t realise that while building on marketplaces, they own nothing - no data, no relationship, and no control. Whereas, even though your own channels cost more upfront, they build your loyalty and grow lifetime value. That's where real business happens. For me, D2C means owning the entire customer relationship - online and offline. For most brands, the relationship ends at delivery. For us, that's where it begins. We know who bought what - preferences, purchase frequency, touchpoints across 172+ stores. That's why 85% of our ₹750 crore revenue comes from owned channels - stores and websites combined. Here's the math: Our Channels Breakdown: 📍70% from 150+ physical stores (our largest owned asset) Our Omnichannel Advantage: 📌 Customers discover online, buy offline (and vice versa) 📌 Orders fulfilled from nearest store within few hours 📌 To build a meaningful relationship, we remember your purchase history and recommend what you'll actually needs The data backs it up. While other brands race to get listed on more marketplaces, we're focused on owning more of the customer journey. Because Amazon and Flipkart can give you reach, but they can't send one DM and activate your customers tomorrow morning. That's the difference between building a brand and renting shelf space.

AI is no longer just decorating rooms. It’s redesigning how we live. AI can now rethink rooms, floors, and entire layouts—turning bold ideas into build-ready designs. Would you do floor like that? The data behind the shift: • 30–50% faster design cycles using generative layout tools • 100+ layout permutations generated from a single brief • Up to 20–30% improvement in space utilization • 10–25% energy savings when airflow, lighting, and thermal paths are simulated early • 40% fewer late-stage design changes thanks to digital testing What’s fundamentally different? AI treats floor plans like software systems: Pedestrian movement is simulated before construction Natural light and ventilation are optimized virtually Furniture, walls, and utilities are stress-tested digitally Cost, carbon footprint, and materials are optimized in parallel This enables: Smaller homes that feel larger Offices designed around productivity and wellbeing Buildings that adapt over time instead of aging poorly The biggest myth? AI replaces architects and designers. Reality: AI handles complexity and permutations. Humans focus on vision, culture, emotion, and identity. The future of architecture isn’t just smart. It’s generative, data-driven, and human-centric. #AI #Architecture #Design via @Visual Spaces Lab #PropTech #GenerativeAI #FutureOfLiving #SmartBuildings #Innovation

The partnership model's leverage engine is stalling. Firms must make a critical decision soon: Choose between three operating models before the window for optionality closes. Model 1: Platform Pivot → Cut partner distributions to fund R&D → Transform IP from slides to systems clients use daily → Kill the hourly model for subscription/outcomes pricing → Clients: Real-time insights, predictable pricing → Upside: Software-like margins, data moat → Risk: Partner exodus, cultural resistance Model 2: Hybrid AI → Acquire AI firms but preserve partnership structure → Quietly freeze hiring, let attrition shrink pyramid base → Keep client-facing work human & automate back-office → Clients: Familiar experience but declining innovation → Upside: 3-5 more years of strong cashflow → Risk: Mid-level talent exodus, slower decline Model 3: Maintain Status-Quo → "AI-enhance" deliverables without structural change → Preserve partner model as market share erodes → Stick to hourly billing as industry shifts to outcomes → Clients: Paying premium rates for commoditized work → Upside: Maximizes short-term partner profits → Risk: Market share erosion as clients churn Forward-thinking clients are already asking: Why pay for an army of consultants when systems can deliver the same insights continuously? The winners won’t be those who add AI to old workflows. They'll be those who fundamentally reimagine what strategic advice means in an AI-driven world. Signals to watch for: → Is R&D outpacing partner distributions? → Do engineers exceed consultants in new hires? → Has pricing moved from hours to outcomes? Which path would you choose and why? Is there a fourth option we're missing?

"We’re planning to open 18 stores this year” - A founder friend told me over coffee last week. Is he right or wrong?  He runs a fast-growing D2C fashion brand. Great product + strong repeat + strong unit economics. Opening stores and going Omni Channel seems to be the natural progression for brands. But, I asked him this instead:  “Are you opening stores…or opening risk?” If you get it right, it can be a game changer. But, opening stores isn’t that easy. Data shows that india’s biggest retailers are blinking and that says something. Reliance opened 2,700 stores last year but quietly shut down 2,200. Pantaloons didn’t open a single one & closed 12 Even Westside and Shoppers Stop, the most disciplined players, barely nudged forward. Everyone expected a post-COVID consumption surge. What we’ve got instead is new behavior - Much more online shopping especially for categories that were previously bought offline. For example, I hate going to a mall now. I don’t like the crowds and I prefer the calm of the endless scroll on my laptop. In my household - sneakers, lenses and all essential grocery have now moved online. This had led to ghost malls in Tier 2/3 cities. Rentals aren’t adjusting down and with flat footfalls and discount-chasing behavior - offline has its fair share of struggle. Retail real estate supply has grown at 2x in this time period but, store-level EBITDA and same store sales growth hasnt necessarily followed that pace.  We see this globally as well: 🇨🇳 China: half of the malls are pivoting to services, cafés, clinics 🇺🇸 USA: only dollar stores, off-price retail, and experience-first flagships are expanding 🇬🇧 UK: brands like Gymshark open stores not to sell but to build tribe & trust So, here’s what it means for Indian retail: 1. Store count is no longer a success metric. Investors used to ask, “How many cities are you in?” Now they ask, “How many stores are EBITDA-positive?” 2. Retail is splitting in two. Mass brands like Zudio Franchise are winning with speed, SKU discipline, and operational tightness. Premium brands are winning with slow commerce, story-driven design, and deeper brand ecosystems. Everyone in the middle is being squeezed. 3. Offline is now an acquisition layer. We’re finally seeing a blended stack emerge: Offline builds trust + impulse. Online builds repeat + affinity. Now, back to the conversation. I didn’t give him advice, rather gave him some context. I said: “Don’t open stores because your investor said go omni. Open them if your consumer wants it, your P&L allows it, and your CAC model improves because of it. Do it only if the economics work. And if they don’t, have no shame to kill it” We’re not in the store-count era anymore. We’re in the square-foot ROI era. The real question is no longer how many you’ll open but how few you can afford to get wrong. Thoughts? Ps: The only thing that can get us to a mall now is Aisha :) #india #retail #customer #d2c