1、WINNING WITH INNOVATIONINVESTING IN THE FUTURE HOW RETAILERS USE INNOVATION TO GAIN AN EDGEA WORLD RETAIL CONGRESS PUBLICATIONKnowledge PartnerByChris Biggs,Khaled Tawfik,Jenny Aylwin,Tanmay Jain,Daniel Gospodinov and Allison ZellerPREFACEConsumer needs have changed over the past 35 years and have b

2、ecome increasingly more sophisticated.Yet for the most part,retailers have been slow to innovate to keep up.In fact,a previous BCG analysis of innovation across dozens of industries showed that retailers trailed all other sectors in making it a top priority.Instead,many have chosen to focusor over-f

3、ocuson day-to-day core operations.This lag has led to a significant shift in the ranks of top retailers globally over the past three decades,with innovative newcomers wresting a larger share of the market from former industry heavyweights.The major all-purpose department stores that dominated the in

4、dustry in the 1990s were surpassed by large conglomerate retailers of the 2000s and,in the 2010s,retailers that expanded globally.These have been supplanted by more creative newcomers that enhance their retail verticals with dozens of new businesses to deliver on the needs of the end consumer.Innova

5、tion will continue to be a key source of competitive advantage and resilience.Retail executives need to champion innovation in their organisations by cultivating an open culture that encourages grassroots ideation and developing a fit-for-purpose,agile operating model.They must support governance th

6、at allows experimentation and risk taking and provide sufficient investment in key enablers such as big data,AI,GenAI and modern modular technology stacks.For the past 11 years,BCG has partnered with World Retail Congress to equip retail leaders for the journey ahead,and our latest report focuses on

7、 innovation in the industry.Our global survey of more than 400 industry executives found that only a small portion of retailers are innovation leaders.These leaders invest more than their peers in innovation and reap higher returns,which they reinvest in the space.Leaders are more likely to invest i

8、n multiple innovation projects,collaborate closely with partners on innovation initiatives and steer shifting customer paradigms rather than react to customer trends.Innovation leaders invest in new business models to drive topline growth and improve margins.Many have achieved both by building high-

9、margin retail media advertising networks;marketplaces that empower them to be“one-stop shops”in one or multiple categories;and social commerce offerings that blur the line between social media,entertainment and shopping.By sharing the best practices of innovation leaders,this report offers insights

10、into how retailers can ignite their own innovation engines and create competitive advantage.NATE SHENCK MANAGING DIRECTOR AND SENIOR PARTNER,GLOBAL HEAD OF RETAIL BOSTON CONSULTING GROUP2|Retail InnovationKnowledge PartnerLETTER FROM THE CHAIRMANIAN.MCGARRIGLEWORLDRETAILCONGRESS.COMIAN MCGARRIGLE CH

11、AIRMAN WORLD RETAIL CONGRESS3|Retail InnovationKnowledge PartnerWhat is at the heart of being a“high performing”retailer?Our theme for this years World Retail Congress:“High Performance Retail”,seeks to describe the new retail climate that we operate in.It is one where the macro-economic and social

12、conditions arent going to help retailers to drive top line growth.And it is also a time of incredible technological change that is reshaping the world we live in.So,to operate within that backdrop,retailers are having to realise that the old rules no longer apply and that this is a time that demands

13、 radical new ideas and real agility.What we are therefore beginning to see is that what sets apart the“high performing”retailers from everyone else is,above all,the willingness to embrace and harness innovation.Which is why one of our key pillars is“Winning with Innovation”.Innovation is critical in

14、 building a sustainable future for retailers.We are delighted that BCG are once again one of our Knowledge Partners for this years World Retail Congress and have selected“Winning with Innovation”as their pillar and focus for this valuable report.BCGs report:“Investing in the future”underlines why in

15、novation is now a critical determinant of success.What comes across vividly from their research amongst retailers around the world is that those who invest in innovation are seeing dramatic results that translate to profitability.Often it is thought that taking a big leap to invest in new technologi

16、es or strategies demands risk-taking and bravery.Whilst that might be true,BCGs report reinforces that by not innovating in todays retail world,the risks are in fact greater.Within this report,BCG show where“innovation leaders”,as they call them,are investing and in particular in retail media,market

17、places and social commerce.All with AI solutions running through them.We hope this report helps elevate the importance of innovation in helping all retailers respond to the challenges of todays fast-moving retail landscape.Of course,innovation isnt easy or without risk,but BCGs invaluable report pro

18、vides a framework for embedding it in your organisation so that you can win with innovation.4|Retail InnovationKnowledge PartnerCONTENTWHY INNOVATION IS HARD 12WHERE INNOVATION LEADERS INVEST 06INTRODUCTION 05PRACTICES THAT MAKE RETAILERS INNOVATION LEADERS 13FIVE WAYS TO AMPLIFY INNOVATION 175|Reta

19、il InnovationKnowledge PartnerINTRODUCTIONSocial media where shoppers make purchases with a single click.Delivery in less than 30 minutes.Virtual stores in the metaverse.Trying on clothes using augmented reality smart mirrors.GenAI-assisted shopping.Hyper-personalised,gamified experiences embedded i

20、n shopping journeys.Disintermediated supply chains that drive low prices and traceability.Retailers are innovating more and faster to keep up with changing consumer behaviours and preferences.Innovation gives retailers an edgeinnovation leaders perform markedly better than their peers,according to n

21、ew research from BCG and World Retail Congress.Retailers that meet our criteria for innovation leaders invest an average of 13%of annual revenue in innovation and achieve a 21%ROI.By contrast,retail laggards invest an average of only 3%of revenue in innovation and earn only a 9%ROI.(See Exhibit 1.)B

22、ut innovating is hard.Even leaders report being stymied by technology thats evolving faster than they can keep pace with and a dearth of talent with the required skills.Despite the obstacles,both leaders and laggards expect to increase investment in innovation in the next three years,with leaders an

23、ticipating spending 38%more and laggards only 8%.To make the most of their investments,retailers must ensure that executives champion new grassroots ideas,launch multiple initiatives rather than only one or two big ones,invest in innovation-related technology and talent,cultivate a culture that bree

24、ds creativity and experimentation,and develop an innovation ecosystem by collaborating with external partners.13%10%3%LeadersFollowersLaggardsAVERAGE PERCENTAGE OF REVENUE INVESTEDAverage innovation ROICompanies increasinginnovation spending by 20%ormore by 2027Companies that increasedinnovation spe

25、nding by 20%ormore from 2021 to 20249 9%8 8%5 5%S So ou ur rc ce e:2024 BCG Retail Survey(n=436).2 21 1%3 38 8%2 25 5%1 14 4%3 30 0%1 10 0%EXHIBIT 1-LEADERS INVEST MORE IN INNOVATION AND ACHIEVE A HIGHER ROI 6|Retail InnovationKnowledge PartnerWHERE INNOVATION LEADERS INVEST OPERATIONAL IMPROVEMENTS

26、 A short-term priority for executives remains addressing the cost pressures across their value chains created by inflation and supply chain bottleneckswhich they do by investing in process innovation and automation to improve and streamline operations.Retailers aim to pass on the resulting savings t

27、o increasingly value-driven consumers.BIG DATA,AI AND ANALYTICS Leaders are investing in AI across their value chains.They have developed roadmaps for targeted big data and AI use cases to drive structured changes in top-and bottom-line growth.Many have started experimenting with GenAI in select are

28、as to prove its value for creative content,customer support and administrative and operational tasks,among other areas.H&M introduced a GenAI-powered tool that allows shoppers to use text inputs to create personalised clothing designs.Our survey of more than 400 executives from a cross-section of re

29、tail sectors worldwide identified three levels of retail innovation maturity based on the level of importance companies put on innovation and the returns they generate from it:leaders,followers and laggards.Leaders stand out because they make innovation a top priority and allocate a high share of th

30、eir annual budgets to itan average of 13%.(See“Methodology.”)Leaders prioritise innovation investments in three areas:operational improvements(71%);big data,AI and analytics(58%);and e-commerce(60%).7|Retail InnovationKnowledge PartnerWHERE INNOVATION LEADERS INVEST E-COMMERCE Retailers across all l

31、evels of innovation maturity are experimenting with e-commerce,with the aim of meeting consumers increasingly sophisticated needs,growing gross merchandising value(GMV)and improving profitability.Within e-commerce,innovation leaders are investing in three primary areas:retail media,marketplaces,and

32、social commerce.(See Exhibit 2.)Retail mediaMarketplaceSocial commerceCustomer service chatbotsFulfilment excellenceAugmented reality shoppingPersonalisationLoyaltyVoice commerce capabilities4 44 4%4 42 2%3 39 9%3 38 8%3 37 7%3 35 5%2 26 6%2 24 4%1 14 4%INNOVATION LEADERS TOP THREE PRIORITIES FOR E-

33、COMMERCE SPENDING(%)S So ou ur rc ce e:2024 BCG Retail Survey(n=237;excludes respondents with less than$1 billion in revenue and countries with fewer than 20 respondent:Germany,South Africa,Argentina,India,and South Korea).EXHIBIT 2 RETAIL MEDIA,MARKETPLACES,AND SOCIAL COMMERCE TOP LEADERS E-COMMERC

34、E ACTIVITIES8|Retail InnovationKnowledge PartnerRetail Media.Innovative retailers set up retail media networks so brands and other third parties can buy advertising space on the retailers owned properties or paid(offsite)media.By offering targeted,high-conversion advertising opportunities to supplie

35、rs,consumer packaged goods(CPG)businesses and other companies,retailers can leverage the rich data they gain from their proximity to the customer.Retailers also stand to gain from network margins that can be upwards of 60%to 70%of collected advertising revenue,which is substantially higher than typi

36、cal margins across many retail sectors.Opportunities for retail media networks are expected to grow rapidly in the next three to five years.Three-quarters of suppliers already invest at least part of their marketing budgets in retail media offerings and two-thirds expect to expand those investments

37、in the near term.The trend is benefiting companies such as Walmart.The retailers CFO has publicly stated that the business expects more of its future profits to come from retail media and other digital services outside of its core brick-and-mortar merchandise sales.Innovation leaders with mature ret

38、ail media operations are taking additional steps to extend what they offer:Expanded Formats.Retailers are moving beyond selling ad space on their own apps and websites to targeting specific consumer segments on behalf of suppliers and other companiesincluding programmatically across the web and on s

39、ites such as Google,Meta,TikTok or Pinterest.Some retailers offer advertisers omnichannel retail media packages that include advertising in their brick-and-mortar stores as well as in their digital channels.Sophisticated Targeting and Insights.Retailers with a mature retail media proposition have su

40、perior capabilities for targeting and personalisation that they use to help advertisers reach customers with more specific,relevant content.These retailers invest in sophisticated management tools so advertisers can see the impact of retail media-related campaigns,including incremental return on ad

41、spend(ROAS),which advertisers can use for budget allocation.Non-endemic Advertisers.Although suppliers still account for more than 90%of retailers advertising revenue,many are offering advertising services to companies beyond their existing sellers and suppliers to such entities as insurers and furn

42、iture assembly providers.(See Exhibit 3.)WHERE INNOVATION LEADERS INVEST-RETAIL MEDIA 9|Retail InnovationKnowledge PartnerEXHIBIT 3 RETAIL MEDIA INTEREST IS FUELLING INVESTMENT AND GROWTH454 40 020225 50 0-5 55 55 50 0-5 55 520236 60 0-6 65 55 55 5-6 60 020242 20 0-2 25 57 75 5-8 80 06 60 0-6 65 520

43、252 25 5-3 30 09 90 0-1 10 00 06 65 5-7 70 020262 25 5-3 30 01 10 00 0-1 12 20 07 70 0-7 75 52027EuropeUnited StatesRest of world9 95 51 12 20 01 13 30 0-1 14 45 51 16 65 5-1 17 70 01 18 80 0-2 20 00 01 19 90 0-2 22 20 03 3%t to o 5 5%Consumer-packaged-goods companies already invest in retail media7

44、 75 5%Average retail media profit margin6 65 5%Retail media revenue typically observed at maturityS Sources:IAB Europe;eMarketer;MAGNA;consumer packaged goods company interviews;2024 BCG Retail Survey(n=237;excludes companies with revenue of less than$1 billion,and countries with fewer than 20 respo

45、ndents:Germany,South Africa,Argentina,India,and South Korea);BCG analyses.Note:Retail media revenue for 2023 to 2027 are forecasts.ANNUAL RETAIL MEDIA REVENUE(in$billions)+1 17 7%1 15 5-2 20 01 10 0-1 15 510|Retail InnovationKnowledge PartnerMarketplaces.More than four in 10(42%)innovation leaders i

46、n our survey have invested in marketplaces,the online platforms that let them collect commissions on goods listed and sold by third parties.Marketplaces allow retailers to offer customers a wider range of products while simplifying internal operations,generating rich insightful data and driving supe

47、rior profitability and ROI.Marketplaces have rapidly become the prevalent business model in retail e-commerce,according to separate BCG analyses,generating 67%of global e-commerce sales.We also found that in 93%of countries,marketplaces hold a larger market share than any other retail business model

48、.Despite their rapid growth,marketplaces are still a relatively new e-commerce phenomenon.Marketplaces in most retail categories are not yet dominated by a single player.First movers have the advantage of scaling quickly,since typically in mature markets,only two players capture significant market s

49、hare.Amazon helped pioneer the“everything store”marketplace concept,which has led it to vastly increase its seller base,customer base and transaction volume.The company advanced the marketplace model even further by establishing same-day and next-day delivery as the norm,and through its“Fulfillment

50、by Amazon”service,which third parties use to store,package and ship orders to customers.Amazon isnt the only retailer continuing to innovate the marketplace model.Some retailers are innovating by building marketplaces that meet a customers needs in a specific category.Macys,the US department store,l

51、aunched an online apparel marketplace in 2022 that in a year had grown to 1,350 brands.Kingfisher,a UK company that runs B&Q and other home improvement chains throughout Europe,launched an online marketplace in 2022 where DIY brands,sellers and resellers can sell directly to customers;it has now exp

52、anded into France and expects to extend the service to Poland this year.Other new marketplaces focus on offering consumers the lowest possible prices by shipping products directly from the manufacturer.Temu,a Chinese-owned low-price marketplace leader,hit a$1 billion monthly gross merchandise value

53、only nine months after launching.Retailers are also blending games and entertainment to increase customer engagement.Shein and Temu,for example,offer games and prize draws in their shopping apps.WHERE INNOVATION LEADERS INVEST-MARKETPLACES11|Retail InnovationKnowledge PartnerSocial Commerce.Social m

54、edia and e-commerce are converging,enabling brands,influencers and other sellers to pitch products directly on social platforms in an engaging way,creating stronger consideration and higher conversions.Of the innovation leaders surveyed,39%have made investing in social commerce one of their top thre

55、e e-commerce investment priorities in recent years.Social commerce is more prevalent among retailers in East Asia.In China,it accounts for one in five e-commerce purchases,making the country the worlds most advanced social commerce market.Sales are escalating so quickly that the pace of growth from

56、2021 to 2025 is expected to be double what it was from 2016 to 2021.For example,Taobao launched livestream shopping featuring real-time chat with other shoppers,live animation,coupons and the ability to seamlessly place an order while watching a livestream.“Lipstick King”Li Jiaqi sold$1.9 billion in

57、 products through a Taobao livestream shopping event on Chinas Singles Day holiday in 2021.In 2022,rural livestreamers sold more than 35 million agricultural products on Taobao Live during a global shopping festival.Social commerce is beginning to catch on with consumers in the West.Social media con

58、tent already affects buying decisions for 74%of consumers and retailers are beginning to jump in.In 2023,Amazon added the Inspire short-form video and image feed to its shopping app to drive consumer engagement,dwell time and conversion rates.Instagram and TikTok have launched social commerce ventur

59、es on their platforms,leveraging what they know about users preferences to show viewers the right product at the right time,with the goal of improving conversion for their third-party sellers.WHERE INNOVATION LEADERS INVEST-SOCIAL COMMERCE12|Retail InnovationKnowledge PartnerWHY INNOVATION IS HARD R

60、etailers at all innovation maturity levels,from leaders to laggards,face challenges across their innovation journeys.One of the biggest is keeping up with rapid technology changes and the emergence of new technologies such as AI and GenAI.In addition,one in three innovation leaders reported delays i

61、n rolling out innovation because of the need to integrate novel solutions with legacy technology.Leaders other major innovation challenge is finding and retaining people with the right skill set and expertise to lead new areas of innovation.Of the retail leaders we surveyed,26%said finding the right

62、 talent was the main challenge in advancing their innovation efforts.Talent troubles are largely rooted in three factors.The first is overall talent scarcity.Propositions,data and technology are evolving so fastespecially in areas such as AI,GenAI and augmented and virtual realitythat there arent en

63、ough people with the expertise to meet retailers demand for talent.Second,companies need a growing number of employees with niche skill sets to run and work in high-growth innovation areas;for example,Targets Roundel retail media arm has doubled to approximately 500 people within the last five years

64、.Finally,retailers compete for this talent pool with technology giants such as Google,Meta and Microsoft.The struggles that retail laggards contend with are more common to companies just beginning their innovation journey.For most,the biggest challenges are budget constraints(38%).Laggards typically

65、 dont invest sufficiently in innovation pilots,which in turn results in sub-optimal propositions and low ROI.This creates a vicious circle that leads to further reductions in funding and resources allocated to innovation.13|Retail InnovationKnowledge PartnerPRACTICES THAT MAKE RETAILERS INNOVATION L

66、EADERS Innovation leaders adopt a bold approach:They use innovation to shift customer expectations.Half of innovation leaders make bold moves,aiming to shift the industry and customer paradigm,rather than innovating based solely on customer insights,compared to 37%of laggards.They bring in partners.

67、Leaders successfully identify the areas where they can accelerate innovation by augmenting internal operations with external capabilities.More than half(57%)work on innovation projects with outside parties and 33%complement internal efforts by acquiring external capabilities.Only one in 10 leaders i

68、nnovate primarily in-house,compared with one in four laggards.They invest in multiple innovation projects at once.Close to two-thirds(63%)of leaders we surveyed maximize their anticipated ROI by spreading innovation funding across multiple initiatives,compared with 43%of laggards.Leaders use fit-for

69、-purpose governance to track initiatives results,provide needed support and decide which initiatives to continue funding.(See Exhibit 4.)The South Korean-based conglomerate Kakao Group used this approach to branch out from its roots in social engagement and entertainment into a variety of high-growt

70、h business verticals,including retail and consumer services,and became a top three company by market capitalisation in South Korea in 2021,only 11 years after its establishment.Source:2024 BCG Retail Survey(n=355;excludes countries with fewer than 20 respondents:Germany,South Africa,Argentina,India,

71、and South Korea).LeadersLaggardsLeadersLaggardsLeadersLaggards50%50%37%63%57%43%63%37%33%10%57%34%26%40%Listen to customers to identify trends and areas to innovateMake boldinnovation moves to shift customer expectationsInnovate with outside partnersInnovate through mergers and acquisitionsInnovate

72、primarily in-houseLimit investmentsto 1 to 3 innovation“big bets”Invest in multiple innovation initiatives at a timeEXHIBIT 4 LEADERS INNOVATION PRACTICES DISTINGUISH THEM FROM LAGGARDS14|Retail InnovationKnowledge PartnerThey integrate six success factors.Retail innovation leaders winning approach

73、is built on the following success factors that separate their performance from that of their peers:Alignment with Strategic Goals.Leaders innovation ambitions and initiatives are closely aligned with their broader corporate strategy.They quantify their ambitions and seek commitments for project tale

74、nt and budget resources from executives.Technology and Data.Leaders have figured out how to address the technology challenges that can stand in the way of innovation.More leaders than laggards invest in big data and data analytics and use data to determine the innovation initiatives they pursue.They

75、 also re-platform their technology to a modular micro-service-based tech infrastructure,which allows them to build and accelerate innovations in parallel across the business.(See Exhibit 5.)Organisation and Operating Model.Innovation leaders recognise that they need to change their operating model t

76、o foster innovation,especially in non-core business areas.More leaders than laggards have dedicated innovation teams and leaders,make innovation a key responsibility of multiple teams and incentivise grassroots innovation across the organisation.They give employees time to work on passion projects t

77、hat could lead to innovative new products and services.And they use agile ways of working so they can quickly reallocate resources as needed between innovation priority areas.(See Exhibit 6.)Culture.Leaders support a culture that encourages creativity and experimentation.Their commitment to innovati

78、on is visible because it starts at the top and extends to frontline workers.These companies support continuous learning,promote and reward experimentation,and accept failure.They offer employees incentives for producing innovative ideas and joining innovation hackathons,training and workshops.Govern

79、ance and Budget.Leaders establish decision-making forums where innovation initiatives are discussed,reviewed,assessed and prioritised.They complement these forums with regular budget reviews and allocation processes.They establish clear innovation-related KPIs,milestones and stage gates to decide wh

80、ich innovation project to continue.And they have an innovation roadmap that parallels business-as-usual roadmaps.Risk Management.Innovation leaders have a comprehensive risk assessment framework that allows them to take on experiments and projects with higher risk.Substantially more leaders than lag

81、gards maintain a portfolio of low-,medium-and high-risk projects.They seek out and dedicate sufficient focus and investment to high-risk,high-reward ventures to gain a competitive edge.Laggards typically take a more cautious approach,focusing on lower-risk projects and a phased approach to scaling.P

82、RACTICES THAT MAKE RETAILERS INNOVATION LEADERS15|Retail InnovationKnowledge PartnerEXHIBIT 5 INNOVATION LEADERS BENEFIT FROM MORE ADVANCED DATA AND TECHNOLOGY PRACTICES4 40 0%4 47 7%3 34 4%5 50 0%Have made significant investments in data;fuel innovation with big data analyticsHave clear processes f

83、or feeding rich data insights into innovation initiativesHave re-platformed to a modular,microservice-based technology infrastructure1 18 8%4 44 4%LeadersLaggardsS So ou ur rc ce e:2024 BCG Retail Survey(n=302;excludes companies with less than$1 billion in revenue).N No ot te e:Participants could se

84、lect statements that applied to their respective companies.16|Retail InnovationKnowledge PartnerEXHIBIT 6 LEADERS ORGANISATION AND OPERATING MODEL SUPPORT INNOVATION1 18 8%3 36 6%Have active talent acquisition strategies to hire the right people to drive innovationGive employeestime to spendon innov

85、ativepassion projects1 15 5%3 31 1%Exhibit 6 Leaders Organisation and Operating Model Support InnovationLeadersLaggardsHave a dedicatedinnovation team2 26 6%5 53 3%Have leadership teams that demonstrate a strong,visiblecommitment to innovation2 25 5%4 42 2%S So ou ur rc ce e:2024 BCG Retail Survey(n

86、=302;excludes companies with less than$1 billion in revenue).N No ot te e:Participants could select statements that applied to their respective companies.17|Retail InnovationKnowledge PartnerFIVE WAYS TO AMPLIFY INNOVATION In conclusion,retailers that want to successfully ignite their innovation eng

87、ine should seek to adopt more practices of the innovation leaders weve described.Five key actions can amplify innovation in your company:Align innovation with strategic goals.Set a clear vision for innovation and position executives as innovation champions.Build an innovative culture.Empower grassro

88、ots ideation,promote and reward experimentation,and accept failure.Create fit-for-purpose governance and risk management.Allow for experimentation and projects with higher risk.Augment your operating model by bringing on external partners.Identify areas where third parties can complement internal ca

89、pabilities,set common objectives and jointly accelerate your innovation efforts.Review your data and technology stack.Dedicate sufficient funding and resources to modernising technology,big data and AI capabilities to unlock innovation potential.18|Retail InnovationKnowledge PartnerACKNOWLEDGMENTSWe

90、 would like to express our gratitude to all the retail leaders who took part in this research anonymously.We would also like to thank our colleagues Anna Bae,Alicia Braxton,Zoe Mebude-Steves,Chloe Shaw,Ammaarah Subjally,and Alexia Yeh Wilson for their contributions.ABOUT THE AUTHORSChris Biggs is a

91、managing director and senior partner,based in the London office of the Boston Consulting Group.You may contact him by email at .Khaled Tawfik is a managing director and partner and the head of the retail sector for BCG Europe,Middle East,and South America,based in the firms London office.You may con

92、tact him by email at .Jenny Aylwin is a managing director and partner focusing on retail transformations,and leads the sustainability practice in retail globally.She is based in the firms London office.You may contact her by email at Aylwin.J.Tanmay Jain is a partner in BCGs London office,where he c

93、o-leads BCGs marketplace accelerator team.You may contact him by email at Jain.T.Daniel Gospodinov is a principal in the firms London office.He focuses on digital strategy,retail media,marketplaces and new digital platforms build for retailers around the world.You can contact him by email at Gospodi

94、nov.D.Allison Zeller is a retail strategy topic expert based in BCGs Washington DC office.You may contact her by email at Zeller.A.METHODOLOGYFor its 2024 Global Survey on Retail Innovation,BCG surveyed 436 employees at global retailers,across 11 retail sectors,69%of whom worked at companies with ov

95、er$1 billion in annual revenue(see the exhibit).To assess retail innovation,the survey focused on three key areas:Innovation appetite,including innovation budget,historic ROI,and future plans Innovation priorities,including for digital commerce Innovation practices We used our assessment of responde

96、nt companies innovation appetite,priorities,and practices to divide them into three categories:Leaders(26%):Make innovation critical to long-term success and allocate more than 8%of annual budget to it Followers(44%):Do not qualify as an innovation leader,but allocate more than 6%of annual budget to

97、 innovation Laggards(30%):Do not qualify as a leader and allocate less than 6%of annual budget to innovation19|Retail InnovationKnowledge PartnerMETHODOLOGY RESPONDENTS BY REVENUE,SECTOR,HEADQUARTERS,SENIORITY AND JOB FUNCTION Executive committeelevelSenior or executivevice presidentVice presidentSe

98、nior directorDirector or managerDigitalDataand analyticsTechnology,design,andengineeringAccounting and financeManufacturingMarketing andadvertisingMerchandisingSales and businessdevelopmentStrategyStore operationsDemandplanning andinventory managementSupply chainESGOtherApparelAutoHealthand beautyCl

99、ubConvenienceDepartmentDollar or discountElectronicsGroceryHomeOtherUSUKFranceSpain and PortugalItalyChinaJapanAustraliaand NewZealandMexicoBrazilCanadaOther$500 million to$1 billion$1 billion to$5 billion$5 billion to$10 billion$10 billion or moreS So ou ur rc ce e:BCG analysis.N No ot te es s:Othe

100、r includes countries with fewer than 20 respondents:Germany,Argentina,South Africa,India,and South Korea;columns may not sum to 100%due to rounding.A Annual revenueRetail sectorHeadquartersSeniorityJob function12%23%34%31%3%6%17%13%4%22%7%6%17%3%1%8%9%8%7%11%8%8%6%10%12%14%20%17%11%12%41%6%7%9%5%23%6%8%22%5%4%1%2%1%