AI-driven marketing isn’t just the future, it’s already proving its value – EY’s Olivier Gergele

Retailers who embrace digital innovation, stay agile, and keep the consumer at the centre are best positioned to lead.

As consumer expectations continue to evolve, businesses are under increasing pressure to adapt quickly. To remain competitive, retailers must balance innovation with operational agility, all whilst staying true to their value propositions and social commitments.

Offering valuable insights is Olivier Gergele, EY-Parthenon Asia-Pacific Consumer Products & Retail Leader. Based in Singapore, he brings extensive consulting and operational experience in the consumer products and retail sector, both globally and across Southeast Asia.

At EY, he leads major client engagements focussed on strategy development, large-scale transformation, and operating model and organisation reviews. His work spans areas such as growth strategies, innovation, value creation, go-to-market, sales and marketing effectiveness, profitability improvement, cost reduction, and change management.

As a judge at the Retail Asia Awards 2025, Gergele highlighted that the most successful retailers are those that embrace innovation, stay agile in the face of disruption, and place consumers at the heart of every strategic decision.

What specific initiatives or strategies do you think set apart retailers that truly prioritise and cater to the evolving needs and preferences of their consumers?

Retailers that prioritise the evolving needs and preferences of their consumers often embrace digital transformation as a strategy for success. They leverage technologies like artificial intelligence (AI) and data analytics to extract actionable insights to personalise marketing, optimise inventory management and engage in strategic decision-making. As well, they continuously evaluate and update their business strategies to better respond to industry shifts and technology disruptions.

Prioritising consumer retention, these retailers proactively refine their value propositions with competitive promotions and utilise digital marketing to drive loyalty and repeat business.

In addition, they focus on employee training and development to ensure that their workforce remains agile in adapting to new technologies, business models and consumer demands.

How should retailers balance their online and offline channels to create a cohesive and personalised shopping experience for consumers, and what innovative approaches have you seen that effectively integrate both?

Technology can be a powerful ally in human interaction. Consumer products and retail businesses that use it to support a human-centred experience, both online and offline, are more likely to succeed.

Through technology, retailers can uncover points of friction in the consumer experience that need to be addressed. For example, upgrading inventory management systems to give retail staff real-time product information allows them to help customers either find items in-store or place online orders for delivery. This makes shopping easier and more efficient for both employees and customers.

Another example is how AI has significantly disrupted the retail sector. Whilst AI is not new, the AI landscape has been changing, from traditional AI to generative AI (GenAI)  and more recently, agentic AI. When using AI to enhance both online and offline retail experiences, collecting vast amounts of consumer data helps to identify market gaps, uncover unspoken customer needs and enable more precise, persona-based segmentation.

AI-powered marketing technology (MarTech) tools are also transforming consumer engagement by making marketing efforts more precise, efficient and cost-effective.  MarTech tools enable brands to identify consumer personas from the ground up, assess interests with greater accuracy, and optimise content and ad placements for maximum impact. By streamlining the programmatic advertising process, retailers can reduce unnecessary middleman costs. This ensures that marketing spend delivers higher returns.

In our client interactions and assessments, consumer products and retail businesses that integrate AI-powered MarTech saw consumer engagement levels significantly increase. The results are not just promising, they are rapid. Retailers can start realising tangible benefits within three months. AI-driven marketing isn’t just the future; it’s already proving its value by driving smarter, more effective consumer interactions today.

In light of the current economic uncertainties, how should retailers adapt their strategies to navigate downturn scenarios effectively? What key considerations do you believe will differentiate resilient retailers during challenging economic times?

Navigating economic uncertainties requires a multifaceted approach.

In the situation where the cost of living is on the rise, consumers often prioritise essential products, such as food and hygiene, and reduce their spending on non-essentials.  According to the EY 2023 Future Consumer Index (FCI), 69% of Asean survey respondents said they would purchase only essentials, and 55% were looking to actively spend less on non-essentials. The rising cost of living also leads to consumers moving away from premium brands toward more affordable ones. Retailers can address this by expanding their range of value brands and offering promotions on essential items to attract cost-conscious consumers. Data analytics can also support retailers with insights on changing consumer purchase behaviors. This way, they can make informed decisions about inventory management, pricing strategies and marketing campaigns.

On the operational front, persistent inflation puts pressure on supply chains and profit margins. Retailers need to closely monitor these economic fluctuations and be agile to potentially diversify their supply base or source materials locally, where possible. One way they can do this efficiently is by investing in technology to improve supply chain visibility. Currency fluctuations significantly impact the cost of imported goods. This affects both pricing strategies and bottom lines. Retailers can hedge against currency risks through financial instruments.

Recognising the importance of employees, how do you believe retailers can effectively train and engage their workforce to align with the organisation’s values, especially in the context of ESG commitments?

To successfully embed environmental, social and governance (ESG) commitments into company culture, consumer products and retail businesses must prioritise employee education, empowerment and engagement.

Comprehensive training programmes, whether through workshops, e-learning modules or hands-on sessions, ensure that employees understand the organisation’s sustainability commitments and ethical sourcing practices. Beyond training, retailers can empower employees by providing the tools and opportunities to contribute, be it by proposing new ideas, leading sustainability projects or playing an active role in decision-making.

Clear and consistent communication is also crucial. Regular updates on ESG progress,  shared through newsletters, meetings or other internal platforms, keep employees informed and motivated. Nonetheless, true commitment starts at the top. When leaders and management embody ESG values, it sets a strong example in fostering an organisational culture where sustainability and social responsibility become integral to everyday business operations.

Given the evolving consumer mindset post-pandemic, what lasting changes in consumer behaviour do you anticipate, and how should retailers adapt their strategies to meet the evolving expectations of consumers in the 'new normal'?

Consumers continue to prioritise affordability and seek products and services that offer the best value for money. This trend is reflected in FCI, where 85% of consumers in ASEAN agree that they will be more aware and cautious about their spending. Many are also re-evaluating their purchase habits to recover from prolonged inflationary periods.

Retailers can highlight cost-effective options, promotions and loyalty rewards to attract price-conscious consumers. They can consider offering value packs or bundling products for better perceived savings. The recommendation is to expand their private label products that offer quality at lower prices, appealing to consumers looking for alternatives.

The next lasting change would be consumers being accustomed to the convenience of digital shopping but still valuing in-store experiences for product discovery. Retailers should invest in omnichannel strategies that integrate e-commerce with physical stores, offering features like click-and-collect, virtual try-ons, AI-driven recommendations and seamless mobile payment options. Enhancing in-store experiences with personalisation and experiential retail is key.

As you assess nominees for the Retail Asia Awards, could you share some specific criteria or key attributes that you consider paramount in distinguishing standout retailers?

I will be looking for qualities like:

Compelling value proposition: Nominees should provide outstanding value through superior product quality, exemplary consumer service and an exceptional consumer experience.

Innovative applications of technologies: Nominees should demonstrate the use of inventive strategies, such as leveraging data analytics and AI, to streamline operations, elevate consumer experience, revolutionise their sales and marketing approaches or develop value creation opportunities to drive growth.

Agility in navigating changes: Nominees should show they can swiftly adapt to market changes and disruptions, and display resilience and a proactive stance when it comes to seizing opportunities and mitigating risks.