In the past hundred years, the retail world has changed dramatically, evolving from street-side pushcarts to 1-click e-commerce. By now, that change is only further accelerating, and companies face difficult decisions on all fronts.

Technology is fundamentally altering how goods are made and sold. Globalization is causing companies to consider where their products should be produced or their materials sourced, and has even forced them to study up on shifting currency valuations and international trade treaties. New media has made consumers savvier than ever, but it's also made them more impatient. With fewer dollars to spend, many are more likely to admire than to actually purchase. Consumers report that they crave newness, and want companies to embrace change.  Yet they simultaneously expect authenticity, and products with a sense of history. At the end of the supply chain, the retail world has consolidated tremendously: general stores, local department stores, and specialty stores have increasingly disappeared, while a smaller number of large web stores, big box stores, discount retailers, and other national chains have taken up the slack.

In this shifting environment, big businesses face one set of specific challenges: how to maintain and communicate their heritage, how to prevent product quality from becoming distilled by mass production, and how to serve their customers on a personal level.  Though consumers seek out low prices, they still yearn for companies whose products are made to last, that genuinely add value to their lives, and that are enjoyable to buy from.

Small and medium businesses face another set of concerns: with lower barriers to entry, and more redundant copycat startups than ever before, it’s a challenge simply to stand out.  Smaller production - whether locally or abroad - means higher prices for consumers, and brands need to justify the value for that price.  And though small companies are great at attracting press, they're usually woefully under-funded, and don't know how to scale operationally, often leaving them victims of their own unfulfilled hype.

We don't know what companies, industries, or countries will come out ahead. But we can expect that retailers that do succeed will integrate elements of the industry’s rich history with new ideas and innovations that enhance the way we live.