HFS Horizons: Intelligent Retail and CPG Ecosystems, 2025

HFS Horizons: Intelligent Retail and Consumer Good Ecosystems, 2025, assesses how well service providers are helping their clients embrace innovation and realize value. The study evaluates providers’ capabilities across the HFS definition of the retail and consumer goods value chain based on a range of dimensions to understand the why, what, how, and so what of their service offerings.

Horizon 1 – Functional transformation

Laying the foundation for digital efficiency by leveraging technology to drive cost reduction, speed, and operational efficiency in specific functions across the value chain. Primarily a vendor-client relationship with project-based engagements.

Examples of applications:

• Product innovation: Using AI for automating product design workflows and optimizing material usage
• Omnichannel CX: Integrating IoT to streamline in-store inventory tracking
• Supply chain: Implementing AI-powered demand forecasting to reduce excess inventory

Horizon 2 – End-to-end experience transformation

Horizon 1 + elevating the entire value chain by creating integrated, customer-centric experiences through data unification and seamless interaction across touchpoints. A strategic partner to clients with performance-driven client relationships.

Examples of applications:

• Marketing and engagement: Leveraging AI to provide hyper-personalized campaigns based on unified customer data
• Supply chain and logistics: Using digital twins to simulate and optimize delivery networks for faster response times
• Customer support: Deploying AI to predict and address customer issues proactively

Horizon 3 – Ecosystem synergy and new value creation

Horizon 2 + building ecosystems that unlock new business models, foster co-innovation, and create entirely new revenue streams, with an emphasis on sustainability and collaboration. Perceived as a thought leader with purpose-led relationships driving growth and innovation for clients.

Examples of applications:

• Collaborative ecosystems: Using AI-powered platforms to connect manufacturers, retailers, and logistics providers for shared data insights
• Sustainability: Leveraging blockchain to track and verify sustainable practices in sourcing, manufacturing, and recycling
• Immersive customer engagement: Integrating AR/VR for virtual shopping in the metaverse with real-time personalization powered by AI
• Driving co-creation and co-innovation with clients and the partner ecosystem

HFS Horizons: Intelligent Retail and CPG Ecosystems, 2025

Note: All service providers within a Horizon are listed alphabetically.
Source: HFS Research, 2025

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