CES 2021, an event held by the Consumer Technology Association (CTA), took place on January 11–14 and was a virtual event for the first time. The Coresight Research team presented our takeaways from day one, day two and day three of the event in separate reports.

In this report, we provide insights from a digital session hosted by Deborah Weinswig, CEO and Founder of Coresight Research, which was recorded in mid-December 2020 and released as the “Retail Trends: The New Shopper” conference session at CES on January 12, 2021.

Weinswig delivered a presentation on six key retail trends for 2021 and hosted two fireside chats: one with Lauren Hobart, President and soon-to-be CEO of Dick’s Sporting Goods; and the other with Tony Shan, Head of Tmall Global, the Americas, Alibaba Group.

CES 2021: Weinswig Outlines Six Key Trends for Retail in 2021

Weinswig began by contrasting US and China consumer behavior in the context of a path to recovery from the Covid-19 pandemic:

• While US retail sales have been stronger, Chinese consumers have moved closer to normalcy. According to management consulting firm McKinsey & Company, 81% of Chinese consumers had resumed “normal” activities outside the home by mid-December. By contrast, a Coresight Research survey found that just 16.2% of US consumers were no longer avoiding any public areas at that time.
• Chinese retail sales will likely continue to trend up. The Singles’ Day shopping festival in November 2020 suggested cause for optimism, as it saw record sales—generating $74.1 billion in gross merchandise volume (GMV) across Alibaba’s platforms, according to the company, with new products accounting for 6.4% of the 31 million SKUs (stock-keeping units) sold.
• The sports and outdoors market has thrived on digital channels through the pandemic. According to Statista, the global online sports and outdoors segment was set to grow by 28% year over year in 2020, and the equivalent Chinese market was expected to grow 32%.

For more information on US consumers’ behaviors and expectations, see Coresight Research’s US Consumer Tracker [Add link to landing page if possible], which presents our weekly survey findings, with a focus on the implications for US retail.

Weinswig then highlighted six key trends for retail in 2021:

The economic and social impacts of the pandemic have changed the way people live and made lower-income consumers more cost conscious. At the same time, the spotlight on healthcare and consumer wellbeing is likely to spark a renewed enthusiasm for health and wellness products.

Malls will invest in new technologies and diversify their tenant mix to create diverse, digitally integrated retail experiences.

Livestreaming, social commerce and the platformization of e-commerce will continue to gain traction with retailers looking to better engage customers.

All retail stakeholders—consumers, investors and employees—appear increasingly committed to sustainability and inclusivity, sparking growth in emerging markets such as recommerce and adaptive apparel.

Seamless payment systems, gamification, loyalty programs and personalization will be key to attracting and retaining consumers in an increasingly competitive retail space.

The pandemic shed light on the vulnerabilities of many supply chains. Retailers and suppliers will likely invest heavily in technology and infrastructure that can be leveraged to adapt quickly in times of crisis.

Dick’s Sporting Goods Rapidly Adapts and Innovates

Dick’s Sporting Goods reported a record third quarter 2020, with comps up 23.2% and e-commerce sales up 95% year over year. This came after the company was contemplating its survival amid temporary store closures due to Covid-19. It instead adopted a “scrappy attitude,” according to Hobart, and implemented curbside pickup within a couple of days, which enabled Dick’s to service its customers and unleash about $100 million in inventory that would have otherwise been trapped in its stores. Offering curbside pickup proved fortuitous, as locked-down consumers had to go outdoors for exercise and entertainment, leading to a surge in demand for sporting goods.

Dick’s also benefited from recent investments in IT, bringing its platform in-house, which enabled the company to quickly embrace curbside pickup and shipping from stores. In the third quarter, Dick’s reported that 90% of its growth was driven by its stores, including in-store sales as well as curbside-pickup and ship-from-store orders.

According to Hobart, the company also benefited from enthusiastic store associates and its loyalty program (which typically accounts for 70% of transactions).

Alibaba Group Dispels Common Myths About the Company

Weinswig and Shan discussed Alibaba Group’s business model and success, focusing on dispelling myths about the Chinese e-commerce giant.

Shan emphasized that Alibaba works with brands on its platforms to help them enter the China market, engage with consumers and boost sales—acting more as a digital mall operator than simply offering an online marketplace. Alibaba offers infrastructure, marketing tools and analytics to its customers.

Alibaba.com features more than 250,000 brands, comprising big brands but also small businesses and emerging brands. The company helps them pursue opportunities in the China market and supports their digital transformation. Shan said that Alibaba sees digital transformation as a big opportunity now, with ingrained shopping habits having been broken by the Covid-19 pandemic and consumers seeking elevated and digitally enabled experiences.

Alibaba views the 11.11 Global Shopping Festival (Singles’ Day) as offering a comprehensive entertainment experience for consumers, like the Super Bowl for brands. Brands can use the festival to launch innovative campaigns and new products and tap into the newest technologies to help tell their story and engage with consumers.

Highlighting that Alibaba has international relevance, Shan explained that thousands of US brands, small businesses, and even farmers, work with Alibaba to sell in China and around the world. Last year, US merchants sold more than $40 billion of products to Chinese consumers, and Alibaba.com empowers US businesses to sell goods to 10 million other businesses around the world.

Read our separate report, Alibaba in the Global Retail Market: Busting Five Myths, which analyzes some of the conceptions associated with online shopping in China through the lens of Alibaba Group.