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Our US Consumer Tracker Extra series offers a deeper dive into longer-term trends revealed by our weekly survey data. We examine who engaged with Amazon’s Prime Early Access based on exclusive Coresight Research data.

We assess participation in the following key areas:

How engagement with Early Access compared to engagement with Prime Day
How consumers’ engagement varied by age, geography and income
Whether consumers were shopping for the holidays or not

Click here to view our full collection of US Consumer Tracker  weekly survey reports. Premium subscribers can also access data from our weekly surveys in our US Consumer Tracker Databank.

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We review monthly data for UK retail in total and by sector, covering the following:

The trend in total value and volume retail sales growth over the last 13 months
Value sales growth for 20 sectors across food and nonfood retail, for each of the latest three months
Growth in online retail sales, by major sector
A Covid-19 lockdown timeline

Coresight Research’s monthly reports keep you up to date on retail sales (in total and by sector) and key consumer indicators, focusing on the US, the UK and China. Click here to view our full collection of monthly reports.

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Israel’s retail-tech ecosystem comprises innovative companies offering solutions for wide-ranging applications, from supply chain logistics to the in-store consumer experience. We present selected startups in Israel that provide technologies through the retail value chain, curated by Coresight Research and the Retail Innovation Club.

The landscape covers the following categories across the retail value chain:

Logistics
In-store technology
Online shopping
Business intelligence—Analytics

This report is available for free and can be accessed by registering for a free account.

To view more of our Retail-Tech Landscapes spotlighting innovators that are disrupting the retail industry, click here.

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Retail real estate investment trusts (REITs) have started to recover from the pandemic, but many have yet to return to their healthier, pre-pandemic conditions. In this Market Outlook, we analyze the US retail REIT market, covering key market factors, the competitive landscape and themes we are watching in the space in 2023 and beyond.

For more on how REITs, specifically mall REITs, are doing in the post-pandemic environment, read our recent reports Renaissance of the US Shopping Center: An Analysis of American Dream, Columbus Circle, Hudson Yards and Tysons Corner Center and How US Malls Can Embrace Digital Trends in Retail.

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In each report in the Weinswig’s Weekly series, Coresight Research CEO and Founder Deborah Weinswig reflects on a topical theme in retail. This week’s note “From the Desk of Deborah Weinswig” discusses the planned Kroger-Albertsons merger and why the consolidation will benefit US grocery shoppers and retailers.

Each report also includes recent retail and technology headlines from Asia, Europe and the US.

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Our Weekly US and UK Store Openings and Closures Tracker reports on store closures, openings and bankruptcies. We cover:

A week-by-week comparison of store openings and closures in the US and UK in year-to-date 2022
What is happening in retail in the US and UK this week
2021 and year-to-date 2022 major US and UK store openings, store closures and bankruptcies

This week, there are highlights from Harbor Freight Tools, H-E-B and Trader Joe’s, among others, in the US, and Abercrombie & Fitch, Asda and Charlotte Tilbury, among others, in the UK. We also discuss quarterly store opening and closure settlements following the release of quarterly company filings from Walgreens Boots Alliance, as well the recently announced merger of Kroger and Albertsons.

Click here to view our full collection of Weekly US and UK Store Openings and Closures Tracker reports.

Complementing our weekly report, the Coresight Research US Store Tracker Databank offers our premium subscribers access to openings and closures data from 2012 to 2022 year to date, filterable by sector and year.

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Coresight Research attended Alvanon’s 3D Tech Festival, an online conference dedicated to developments in 3D (three-dimensional) technical design in the apparel industry, which ran from September 13 to 15, 2022. Erin Schmidt, Senior Analyst at Coresight Research, kicked off day two of the conference with a discussion of proprietary insights from our Adaptive Apparel in the US consumer survey from July 2022.

We present highlights from day two. Our coverage of how user-centered design and technology are advancing inclusivity in retail includes:

Tommy Hilfiger’s process of launching an adaptive apparel line
Made-to-order apparel company Differently Enabled’s co-production approach
The blend of machine learning and lived experience behind the creation of Kami, the world’s first virtual avatar and influencer with Down Syndrome
How to achieve inclusive fit across size ranges, featuring Alvanon’s technology applications

To learn more on inclusivity in retail, read adaptive apparel in the US report and our coverage of 2022’s inclusivity trends.

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Grocery retailing in the US has changed dramatically in recent years to adapt to new consumer behaviors. In the aftermath of the pandemic, how are US consumers shopping for groceries? We assess which trends are fading and which behaviors will stick in the world of grocery retailing.

We present our key insights, covering the following areas:

Basket size and trip frequency—including the return of mission-driven shopping
Consumers’ preferred channel for food and nonfood
Price per unit shifts
Competitive pressures from superstores and quick-service restaurants

For more on grocery retail in the US, read our reports on the resurgence of private label and the future of the US grocery market, as well as our weekly US Consumer Tracker series.

Contents (Click to navigate)

Introduction

How US Consumers Are Shopping for Groceries: Coresight Research Analysis

Basket Size and Trip Frequency
Sales Channel
Price per Unit
Grocery Retailers vs. Superstores
Groceries vs. QSRs

What We Think

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Coresight Research is a global company with offices in seven cities across four continents, bringing unique points of view to our retail research. This is the first report in our new Retail Around the World series, in which we present photographs of retail in action across the globe, taken by the Coresight Research team.

This debut report highlights 10 themes in global retail, including sustainability, inclusivity and retail technology, and includes images from major brands and retailers from around the world, such as Bata, Coach, Nordstrom and Victoria’s Secret.

Read more of Coresight Research’s coverage of sustainability and retail technology, themes we believe companies should be watching in 2022 and beyond.

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Compared with photorealistic CGI (computer-generated imagery), traditional photography is more expensive, time consuming and logistically complex. CGI, which is also known as 3D rendering, is the process of creating hyper-realistic 2D images using 3D models through computer software.

We analyze the latest trends in e-merchandising and underline the importance and benefits of photorealistic CGI for brands and retailers.

This free report is sponsored by Nfinite, an e-merchandising software-as-a-service (SaaS) platform.

This report forms part of our Innovator Intelligence series, which focuses on emerging companies that are disrupting traditional retail and fueling innovation across the retail value chain.

Click here to read more Innovator Research from Coresight Research.

Contents (Click to navigate)

Introduction

Market Scale and Opportunity

CGI Provides Benefits for Retail That Traditional Photography Cannot Match: Coresight Research x Nfinite Analysis

Company Overview: Nfinite

What We Think

Executive Summary

We analyze key trends impacting online visual merchandising and how brands and retailers can leverage photorealistic computer-generated imagery (CGI) to improve online visual merchandising. We also explore Nfinite, a software-as-a-service (SaaS) company that helps brands and retailers to create, display and manage 3D product visuals.

This report forms part of our Innovator Intelligence series, which focuses on emerging companies that are disrupting traditional retail and fueling innovation across the retail value chain.

Market Scale and Opportunity

The global visualization and 3D rendering software market is set to total $6.3 billion in 2026, up from $2.9 billion in 2022, according to Global Industry Analysts. Businesses will rely heavily on visuals to meet customer expectations.

Coresight Research Analysis

Compared with photorealistic CGI, traditional photography is more expensive, time consuming and logistically complex.
Photorealistic CGI makes quicker speed to market possible by using 3D models, which enables easier editing and adjustment of assets, even at later stages. It is even possible to create images of product content without physical product content. Photorealistic CGI also helps brands and retailers reduce product returns by providing customers a better sense of what they are purchasing.
The rapid rise of e-commerce, social channels and the metaverse has led to a constantly growing need in retail for product visuals across digital shopping channels and formats.
Consumers want to understand a product in the context of their lifestyle and aesthetic. Photorealistic CGI enables the easy production of photorealistic lifestyle images by rapidly placing objects onto different life scenes.
Companies are now using more sustainable methods in producing product images to reduce their impact on the environment.

What We Think

It is time for brands and retailers to rethink their approach to producing product visuals, in light of various challenges such as heightening competition, speed-to-market, proliferating sales channels and customer reach. Photorealistic CGI is a viable alternative to traditional photography that we believe will become commonplace in the future.

Introduction

Producing images through traditional photography can be expensive, time consuming and logistically complex when multiple versions are required due to changes in consumer and business demands. With commerce now happening across social media, livestreaming/video and the metaverse, brands and retailers face increasing pressure to create higher volumes and a more diverse range of visual content to shoppers wherever they are, for marketing purposes. Photoshoots for a season’s product catalog are no longer sufficient—brands and retailers now need to produce daily, or more frequent, visual content across a variety of digital channels, such as websites, email, social media and more.

The shortcomings of traditional photography, coupled with the rapidly growing demand for visual content to sell and market online, make photorealistic computer-generated imagery (CGI) a viable alternative. CGI, which is also known as 3D rendering, is the process of creating hyper-realistic 2D images using 3D models through computer software. Furniture retailers such as IKEA and John Lewis have already begun using CGI content on their websites and product catalogs.

Figure 1 shows how photorealistic CGI works.

Figure 1. Process of How Photorealistic CGI Works

Source: Coresight Research

In this Innovator Intelligence report, we analyze the latest trends in
e-merchandising, and underline the importance and benefits of photorealistic CGI.

This report is sponsored by Nfinite, an e-merchandising software-as-a-service (SaaS) platform.

Market Scale and Opportunity

Retail marketers can gain a competitive edge by investing in visual content, which is set to become more integrated into marketing strategies: 63% of marketers globally believe that over 60% of businesses will rely heavily on visual content marketing moving forward, according to a 2021 study conducted by Venngage.

According to a BigCommerce study in 2020, 78% of US online shoppers expect to see product images on online sites. Product images matter because consumers use them to make product purchase decisions.

The global visualization and 3D rendering software market is set to total $6.3 billion in 2026, up from $2.9 billion in 2022, according to Global Industry Analysts estimates.

CGI Provides Benefits for Retail That Traditional Photography Cannot Match: Coresight Research x Nfinite Analysis

We summarize the key benefits of photorealistic CGI over traditional photography in Figure 2, and discuss key themes in e-merchandising below.

Figure 2. Benefits of Photorealistic CGI Over Traditional Photography

wdt_ID	-	Photorealistic CGI	Traditional Photography
1	Method of generation	Computer software	Cameras
2	Cost	Relatively low (Around $150 on average per 3D model)	Relatively high (Around $1,000 on average for a professional photography session)
3	Reusability	Unlimited reuse	Static (single use only)
4	Speed to market	63% quicker than traditional photography	Can take up to six months to produce photos for one single scene
5	Impact on environment	50% more carbon efficient	Less carbon efficient
6	Adaptibility to different formats	Images, animations, videos, augmented reality (AR)/virtual reality (VR), Web 3.0 compatible	Images only

Source: SuperDNA 3D Lab/Nfinite/Saddington Baynes/Coresight Research

The Need to Reduce Returns and Improve Speed to Market Fuels Photorealistic CGI Adoption

Returns are a prominent issue in retail, representing an average of 16.6% of total retail sales in the US in 2021, up from 10.6% in 2020, according to a survey by the National Retail Federation and Appriss Retail conducted in October/November 2021. Following pandemic-fueled e-commerce growth, savvy retailers are paying more attention to returns and increasingly turning to AI (artificial intelligence)-powered tools and 3D images to reduce returns.

Shopify merchants that used 3D visualization experienced a 40% decrease in product returns, according to Shopify in a 2020 VNTANA presentation.

In an era of heightened competition, speed to market is key. While traditional photography entails a complex workflow and slows the product launch process, CGI uses 3D models, which makes subsequent creation, editing and reuse of images cheaper and less time consuming. By placing 3D models onto different colors and scenes, CGI makes it easier to conduct A/B testing by quickly and easily creating different variations of an image, or even creating content before physical products are produced.

British fragrance and lifestyle brand Jo Malone switched from traditional photography to CGI in 2019 to display its products globally and to produce more images to meet consumer demand. This also enables Jo Malone to feed more product content onto social channels and to produce multiple product images based on different customer cohorts, store demand and times of year.

The Rise of E-Commerce, Social Commerce and the Metaverse Increases Demand for More Product Visuals

Coresight Research estimates the US e-commerce market will increase from $993.1 billion in 2022 to $1.9 trillion by 2030. The rapid rise of e-commerce is leading to an increase in social commerce and the evolution of shopping in the metaverse, which will drive the need for more product visuals across different channels and formats. With changes in consumers’ shopping behaviors, coupled with advances in 3D technology, photorealistic CGI will become table stakes for the future of e-commerce.

The proliferation of different digital channels is fueling demand for more creative product visuals that are specific to different e-commerce platforms while maintaining the company’s values and its universal message. For example, due to the increasing use of social platforms such as Instagram, Pinterest and TikTok, companies need to keep producing new visuals, as social media platform algorithms favor companies that publish new content over ones that reuse the same images.

The metaverse has gained immense traction in the past couple of years, and we believe that it will continue to expand and establish a key role in digital retail. Unlike traditional photography, 3D models can easily adapt to the metaverse’s technical image requirements. Brands and retailers can seize a first-mover advantage by establishing visual footprints in the metaverse through the mastering of CGI.

Lifestyle and 360-Degree Images Improve Visual Storytelling and Provide Better and More Personalized Experiences

Consumers want to have a better understanding of how a product might fit into their lives, visualizing products in various settings and use cases. There is therefore an increasing need for higher-quality lifestyle images in retail to showcase a product’s functions, uses and benefits as well as to create a deeper and more personalized connection to each consumer. Overall, improving visual storytelling is one of the keys to creating a better customer experience.

According to “The State of Personalization 2022” report from customer data platform Twilio Segment, 49% of global consumers say they will likely become repeated buyers of a brand after they have a personalized shopping experience with that brand. Moreover, from the same study, almost 80% of business leaders said that consumers spend 34% more on average when their experiences are personalized.

Photorealistic CGI can create hyper-realistic images that enhance consumers’ online browsing experiences by depicting products in their desired use-case context. We believe that brands that create a lifestyle around their products are more successful in driving engagement and ultimately conversion. In visual merchandising, lifestyle images can better connect with human emotions and influence purchasing decisions.

Example of a lifestyle image created with CGI
Source: CGI Furniture

Photorealistic CGI, through 3D models, can also produce images featuring products from different angles with just a few clicks, providing viewers an experience that is closer to engaging with the product in real life.

Grainger, a US industrial supplies and equipment company, reported in 2018 that it gained an average 47% increase in conversion rate when products were shown with a 360-degree image, compared with traditional product photography.

Consumer Attitudes Toward Sustainability Make CGI Worth Considering

Coresight Research has identified sustainability as a key trend to watch in retail; consumers are now demanding more from brands and retailers in this area. Three in 10 respondents said the Covid-19 pandemic has made sustainability more of a factor while shopping, according to Coresight Research’s annual consumer survey on sustainability, with findings analyzed in our July 2022 US Consumer Tracker Extra.

While industry discussion around sustainability has mostly been on transportation, shipping and manufacturing, companies can also be sustainable regarding image creation. In fact, forward-thinking companies are producing product images through CGI, which is more environmentally friendly than traditional photography.

UK bedding brand Dreams partnered with a 3D content provider in April 2022 to produce CGI visuals, which minimized environmental impact by preventing the need to ship beds in different colors to multiple locations. Dreams was also able to reduce production costs by 20% year over year, and deliver over 60% more visuals at the same time, the company reported.

Example of a Dreams bedding image produced with CGI
Source: ArtStation

Fashion magazine Vogue Italia made a statement of not including photo shoots in its January 2020 issue due to the environmental costs associated. In a note to the magazine’s readers, Emanuele Farneti, Editor-in-Chief of Vogue Italia, said that filling a magazine issue with photo shoots could incur environmental pollution and waste, ranging from sending people globally through flights and trains to shipping clothing boxes to creating plastic wrap on garments.

CGI projects lead to fewer carbon emissions compared with physical photography by removing the need for packaging and fuel for the delivery of physical prototypes, especially when air travel is involved. CGI is over 50% more carbon efficient when factoring in airline travel alone, according to Saddington Baynes. The figure can be higher when production vehicle emissions and waste are also considered.

Company Overview: Nfinite

Founded in France, Nfinite has global offices serving the North American, European and Asian markets. It offers an e-merchandising SaaS platform, which uses CGI technology to help brands and retailers create, manage and display photorealistic 3D visuals of their product catalog quickly and affordably. Nfinite also helps companies deliver lifestyle images, interactive and immersive experiences, and real-time personalized content to their customers worldwide. Currently, major verticals that Nfinite serves include home and living, home improvement, consumer goods, luxury goods, and cosmetics.

User interface of Nfinite
Source: Nfinite

By partnering with Nfinite, brands and retailers can create a “digital twin” of each of their products in 3D. Brands and retailers can then easily change the colors, patterns or even textures of the 3D digital twins. A feature of Nfinite’s platform, Dynamic Display, has been shown to increase engagement and conversion rates while reducing returns rates. According to Nfinite, Dynamic Display has led to improvements in website and conversion performance, including a 2.5X increase in clickthrough rate, a 53% increase in conversion rate and a 2.8X improvement in repeat customer engagement.

Business Offerings

Nfinite offers three solutions:

Packshot Creator enables users to create 360-degree photorealistic images of products.
Scene Creator enables the creation of lifestyle scenes through multiple available lifestyle templates, with the option of exporting to different output formats.
Dynamic Display enables a vast degree of front-end image customization, which allows users to interact and customize their shopping experiences on websites.

Nfinite’s Scene Creator feature
Source: Nfinite

Competitive Advantages

Nfinite’s user-friendly features are fully customizable and do not require technical expertise to use.
Nfinite has thousands of pre-built scene templates, where products or pre-built product models can be placed to add detail to images.
The company hosts the largest community of professional 3D modelers and designers focused on retail and positions itself as a leader in 3D retail.
Nfinite provides visual assets that are compatible with both Web 2.0 and Web 3.0 applications such as AR, VR and the metaverse.
The company’s Dynamic Display empowers a digital shopper to mix and match products in a scene in real time to match their personal aesthetic.
The company serves the different needs of customers that turn up with either no 3D models, basic 3D models or advanced 3D models.

Case Study: Increased Sales, Page Visits and Add-to-Cart Rates at Lower Costs

Delamaison is an online French retailer of household furniture and decoration products. It once experienced the challenge of limited expenses for visual creation but it wanted to transform its website into a persuasive commercial visual tool to create consumer interest and generate traffic.

Delamaison partnered with Nfinite’s online merchandising solution in 2020. When compared with product pages not using Nfinite, this increased total sales by 6%, increased page visits by 30%, and increased add-to-cart by 12% on product pages that used Nfinite’s solution. Delamaison also saved 85% in per-image production costs compared with the previous solution it was using.

What We Think

It is time for brands and retailers to rethink their approach to producing product visuals in light of various challenges such as increasing competition, speed-to-market, proliferating sales channels and customer reach. Leveraging solutions that use CGI will not only help in reducing production costs and improve speed-to-market, but also enable product visual production across multiple channels with personalization capabilities.

CGI also aids brands and retailers in producing photorealistic images with interactivity, improving the customer experience by giving customers the ability to see products in contexts that are relevant to them. Forward-looking furniture and beauty brands and retailers are already adopting CGI to create different photorealistic images more quickly.

Product photographers employed by brands and retailers should not stick to traditional photography, which is outdated and no longer suits consumers’ latest needs. They should upskill by equipping themselves with knowledge of CGI and 3D asset production, which can ultimately help brands and retailers drive conversion and growth.

Solution providers that work with brands and retailers can also couple their CGI and 3D production technologies with AI to further strengthen their automation capabilities, making user experiences even more seamless and personalized.

About Coresight Research Innovator Intelligence

Coresight Research Innovator Intelligence reports are produced in partnership with leading firms in the retail, technology and startup ecosystems. These reports present expert analysis and proprietary data on key topics in the retail, technology and related industries,and enable partner companies to communicate their brand and messaging to a wider audience within the context of brand-relevant research.

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Coresight Research attended the Google Cloud Next ’22 conference on October 11–14, 2022. Google kicked off its global conference with an overview of its technology, and made several new product announcements and upgrades.

In this report, we present key insights from the conference keynote on October 11, 2022, with cybersecurity, AI/ML (artificial intelligence/machine learning) and the Translation Hub taking center stage.

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Our Holiday Bites series provide free snapshots of Coresight Research data and findings, covering the shape and scale of consumer demand, retail sales and category performance in the 2022 holiday season.

FedEx, UPS and the US Postal Service (USPS) have all announced peak shipping surcharges and fees.

Click here to see more Holiday Bites as well as our in-depth research reports on US holiday retail.

Click here to read our report on trends in last-mile delivery for the holidays.

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Golden Week is a week-long national holiday in China characterized by travel and tourism spending, beginning on October 1. In this report, we present insights into tourism consumption patterns and consumer behavior during Golden Week 2022, including:

The declines in tourism spending and overall number of trips taken
The impact of the country’s Zero-Covid policy on the event
The growing importance of outdoor activities to Chinese consumers

For more on how the Chinese government’s current policies are impacting its retail environment, read Coresight Research’s report, Market Outlook: China Retail—The $6 Trillion Sector Recovers Slowly

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Quick-commerce players provide rapid home delivery of groceries and daily essential items to customers. We present selected startups globally that provide quick-commerce (instant needs) services across the retail sector through dark stores and partnerships.

We discuss three key trends in quick commerce and identify startups from Asia, Europe, North America, Africa and the rest of the world.

To view more of our Retail-Tech Landscapes spotlighting innovators that are disrupting the retail industry, click here.

Contents (Click to navigate)

Retail-Tech Landscape: Quick Commerce

Quick Commerce Trends in Retail

Partnerships and Acquisitions Present Strong Growth Opportunities for Existing Players
Third-Party Delivery Services Can Expand Quickly with No Inventory Costs
Venturing Beyond Groceries and Daily Essentials into New Segments Is the Next Big Step for Quick Commerce

Retail-Tech Landscape: Quick Commerce—Infographic

Retail-Tech Landscape: Quick Commerce, by Region

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Our Three Things You Need To Know series provides free snapshots of Coresight Research data and findings. Subscribers can access the full research behind this graphic here. To find out how to subscribe, click here.

The home-improvement retail sector was one of the winners from the pandemic, as housebound consumers spent freely on their homes. Faced with a softening property market, rising interest rates and constrained consumer spending, the picture has shifted in 2022.

Our Market Outlook explores the growth of the US home-improvement retail market, as well as market factors, the competitive landscape and themes we are watching in the space.

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Executive Summary

Introduction

Market Scale and Opportunity

CGI Provides Benefits for Retail That Traditional Photography Cannot Match: Coresight Research x Nfinite Analysis

Company Overview: Nfinite

What We Think

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