AWS for Industries

The New Retail Paradigm: Technology, Data, and the Human Touch

I’m still thinking back to this past January, when Amazon Web Services (AWS) hosted 95 of EMEA’s leading retailers and partners in New York for its Future of Retail event. Retail giants such as Max Mara Fashion Group, ASICS, S-Group, and Illum attended to share their digital transformation journeys and future vision for the industry.

The retail landscape is undergoing a profound transformation, driven by technological innovation and evolving consumer expectations. Today’s most successful retailers are addressing the convergence of artificial intelligence (AI), cloud computing, and data analytics. As the industry evolves, the following key questions about retail strategy emerge.

How can retailers harness AI and cloud technology to create differentiated customer experiences? What does the future of physical retail look like in an increasingly digital world? How can businesses use data effectively while maintaining the human touch that defines great retail experiences?

The Evolution of Unified Commerce

The retail industry has moved beyond traditional omnichannel approaches to “unified retail commerce.” As AWS Head of WW Retail and Consumer Goods Industry Strategy Ravi Bagal emphasized, this evolution reflects how customer expectations have fundamentally shifted with increased access to technology. Amazon Fresh’s Mary Palmieri demonstrated this, explaining how Amazon Fresh focused on creating “cool and convenient” retail environments that meet modern consumer demands.

The digitalization of physical stores has become crucial in this transformation. Illum’s journey in modernizing its in-store experience through a composable Point of Sale (POS) system exemplifies how retailers are using advanced technologies not only to track individuals, but also to understand behavioral patterns that unify with online insights.

The AI Revolution in Retail

Investing in AI can improve operational efficiency and the customer experience, increasing profitability. A striking 96 percent of retail profits are accrued by the top 20 percent of companies, making it even more significant that retailers investing in AI are seeing an average 6.2 percent increase in compound annual growth rate, according to McKinsey.

  • ASICS has successfully implemented conversational AI to help novice runners find the right products, leading to improved product discovery and conversion rates.
  • S-Group has applied AI to understand customer behavior across its diverse portfolio, from grocery to fashion.
  • An iconic Italian luxury retailer has partnered with an AWS Partner, offering cutting-edge generative AI hyper-personalization and search capabilities. With XGEN AI, retailers can enhance product descriptions and personalize customer journeys across their digital platforms. XGEN AI is a composable AI platform for ecommerce teams on AWS. Its proprietary AI platform helped the retailer drive autonomous, curated product recommendations and merchandising, enhanced by generative AI.

Data: The New Retail Currency

Data has become the most valuable currency for retailers and consumer goods companies looking to drive growth and innovation. It’s the differentiator that empowers successful generative AI application. By using generative AI and advanced analytics capabilities on AWS, businesses can transform raw data into actionable insights. These insights power personalized experiences, optimize operations, and unlock new opportunities across an entire value chain.

S-Group’s remarkable reach, serving 2.9 million households in Finland, demonstrates how rich customer data can drive better decision-making across retail operations. Its ability to profile stores, optimize assortments, and create personalized experiences shows the power of data-driven retail strategy. Max Mara Fashion Group, a leader in luxury fashion retail, recognized the opportunity to enhance its strong online offering by creating a more integrated customer experience across its multiple sales channels. The fashion group embarked on a comprehensive digital transformation journey, implementing headless and composable architecture from AWS. By using AWS ecommerce solutions, the company not only enhanced its customer data security, but also streamlined its omnichannel operations, resulting in improved service availability and automated deployments. This transformation positioned Max Mara Fashion Group to better understand and serve its customers while maintaining its legacy of fashion excellence in the digital age.

Looking Ahead: Key Trends Shaping Retail’s Future

Several crucial trends emerged from the retailer presentations.

  • Generative AI integration: Fashion brands can easily integrate generative AI ready-to-deploy solutions, built on top of AWS and offered by industry-leading AWS Partners, like XGEN AI, to drastically enhance customer experiences.
  • Composable architecture: Illum’s transition to a composable platform with Sitoo continues to demonstrate a strong push from monolithic systems toward flexible solutions, gaining speed and systems agility.
  • Immersive experiences: ASICS integrating its RunKeeper acquisition and race registration platforms shows how retailers are dedicated to creating comprehensive, engaging, and highly personalized customer journeys.
  • Supply chain intelligence: Amazon Fresh, focused on getting “the right product in the right place at the right time,” highlights the importance of intelligent supply chain management enabled by data and AI/ML.

Considerations for Practical Implementation

AWS for Retail and Consumer Goods offers the most comprehensive portfolio of cloud, analytics, and AI capabilities to help industry leaders define the future of retail. Leading examples, such as Max Mara Fashion Group’s evolution from traditional POS to cloud-native operations, and the ASICS data-driven approach to personalization, show that successful transformations require a balanced blend of strategy, technology, and human-centered approaches.

S-Group and Illum further demonstrate how cloud architecture enables differentiated solutions while empowering employees, leading to enhanced customer experiences and operational excellence. These success stories provide a compelling blueprint for retailers embarking on their own transformation journeys, highlighting the importance of strategic patience, continuous innovation, and technological solutions that align with brand values.

The Path Forward

The future of retail transcends pure technology implementation. It’s about using digital capabilities to create more meaningful, personalized, and efficient shopping experiences. AWS plays a pivotal role in this transformation by providing the scalable infrastructure, partner ecosystem, and innovative solutions that retailers need to stay competitive. Through its comprehensive suite of cloud services, ML capabilities, and industry-specific solutions, AWS supports retailers of all sizes. With AWS, retailers experiment, innovate, and scale their operations without the traditional barriers of physical infrastructure.

Rajashree Rane

Rajashree Rane

Rajashree Rane, Retail & CPG Go to Market Lead- EMEA, Amazon Web Services Rajashree leads the EMEA Retail and Consumer Goods Go-to-Market at Amazon Web Services (AWS), driving cloud adoption and digital transformation agendas for industry leaders. She empowers industry players to drive growth, enhance customer experiences, and optimize operations through cloud transformation. Previously, she designed cloud GTM strategies for EMEA’s retail, FMCG, Industrials, and travel verticals as a Senior Program Manager at AWS. Before AWS, she led go-to-market for Alexa Smart Homes at Amazon and managed the high-stakes Consumer Electronics category in Italy. At Unilever, she led product and category planning & transformation, import supply planning, forecasting, and distribution for iconic $50M+ brands. Rajashree’s proficiency spans product strategy, category management, go-to-market execution, and operational excellence through lean practices. Her diverse background allows her to craft pioneering cloud solutions that propel brand differentiation, productivity, and customer-centricity for retail/CPG enterprises. An ardent innovator, Rajashree champions professional growth for women in technology and STEM fields. She holds an MBA from IMD Business School and an engineering degree from the University of Mumbai.