Under the shadow of unprecedented geopolitical chaos, a US-driven tariff war and the supply chain interruptions fueled by both, some 10,000 retail executives gathered in Singapore on Tuesday for the three-day NRF’25 Asia Pacific edition. 

Isabelle Allen, global head – consumer and retail with main sponsor KPMG, summed the environment up perfectly in an opening address: “The world has never been more connected, and yet nationalism and protectionism are rising.”

Allen described the retail sector as being in “a pivotal moment in history”, tested by geopolitical uncertainty, economic headwinds, a fragmented consumer landscape, disruptive technology and soul searching on the role of business in society – “all of which are putting intense pressure and limitations on visibility, on growth and speed, all elements that business needs to success”.

Yet far from a story of gloom, Asia offers the retail industry an enormous opportunity, both to understand how tomorrow’s consumers are likely to behave, and to expand business, a region “rich in possibilities” and optimism. 

Asia is the fastest-growing retail market in the world, accounting for over half of the global retail growth. Across Asia, online retailing has grown by 20 per cent annually, and South Korea has become the first market in the world where more than 50 per cent of sales occur online.  

The more than 1 billion Gen Z consumers across Asia, including India, are “totally redefining what expectations for commerce look like,” Allen said. And that’s without considering Generation Alpha, which is going to follow them into the consumption age. “This is the generation that has been the most seriously impacted by Covid and the social restrictions, and the first generation that has not known anything other than connected devices.”

Asia has also been at the centre of relentless innovation. “Asia gave the world the super apps, integrating commerce, payments, and entertainment. Asia invented livestream commerce. Asia pioneered new ways of engaging consumers, like the Singles Day sale. And at a time when the new US administration is taking a different path, and the European Union is relieving a bit of pressure of regulation around sustainability, it is Asian retailers that are taking the lead on sustainability and circularity.” 

Another example of Asia’s growing influence is the rise of Chinese discount marketplace platform Temu. In western markets, Filipino restaurant operator Jollibee, which has developed a network of 1600 stores outside Asia, and Malaysia’s Mr DYI.

The promise and power of AI

In any conversation at this week’s NRF’25 Asia Pacific edition, AI is on everyone’s mind. One presenter quipped he managed to make it nearly 10 minutes into his presentation without mentioning the words.  

The power of AI to interpret customer decisions, monitor spending histories, interpret data and personalise consumer engagement is widely acknowledged, and many of the exhibition booths are showcasing solutions with varying levels of AI complexity. 

For Indonesia’s Alfamart, with 22,000 stores across the archipelago (It had just five in 1999), AI is important in managing its loyalty program and supply chain. 

However, Ryan Alfons Kaloh, marketing director and CEO, emphasised the importance of ensuring that when retailers adopt AI into their decision-making processes, they do not let it compromise their entrepreneurial skills and spirit, which are vital to the business. And that they do not cede control and understanding of their data to a third party, risking the loss of what might amount to their intellectual property in the future. 

South Korea’s Lotte, which has grown into one of the largest retail groups in the world, is using AI to enhance the user experience in its app and online shopping. 

Vice chairman and group CEO Samuel Sanghyun Kim shared an example with delegates in a keynote address on Tuesday that AI helps customers shop for appliances at its Hi-Mart electronics chain, by creating engagement.

“When you are shopping for appliances, it’s very tricky, because you don’t know whether to choose one TV over another or one appliance over another. If they offer different features, are they really worth the value? If you type in features you want to know, like a price range, it can give you options. That helps our customers to make the best value choices.”

The company also has a database of 42 million loyalty program members, so AI helps provide more personalised data marketing suggestions and services, as well as creating an effective retail media network. “We are fully hands-on, looking at many different ways we can leverage AI.”

KPMG’s Allen shared how the company has been involved in dozens of leadership meetings with retail organisations globally where executives and board members, have been keen to find out what AI initiatives they should be embracing and looking for case studies within the industry – not because they had identified the business challenges that AI would solve, but because they are worried about being late to respond. 

AI is an enabler, helping retailers do what they do best, which is selling to and engaging with consumers more effectively. “It needs to be embedded through the organisation, not through individual solutions or functions, and it needs to be looked at at the enterprise level. There is not going to be a destination with these new technologies. This is not another transformation program. It’s a place where companies are going to have to be in a constant state of evolution and continuous rethinking of their abilities. 

“We believe the world’s tomorrow is going to be around intelligent economies and the intelligent retailer is going to have to fit in these intelligent economies.”

Redefining retail

Allen concluded her opening address by telling delegates the NRF’25 Asia Pacific will redefine what retail could look like. 

“There is no doubt in my mind that the future of retail is rising from the East. The conversations we are going to have in this group will define what consumers around the world are going to be experiencing in the future.

“Asia is truly alive. What’s being adapted here today, and what you’re going to be talking about for the next few days, will shape how brands and products meet consumers tomorrow.”

• Inside Retail’s coverage of NRF’25 Asia Pacific edition is brought to you by Centric Software.