Several macroeconomic factors are defining the road ahead for global business in the retail and consumer industries. This was a key focus of the “Business Outlook: Navigating A New Global Order” panel discussion at the 2025 RLC Global Forum, where Simon Evenett (Professor of Geopolitics & Strategy, IMD Business School), Mindy Grossman (Partner & Vice Chair, Consello), and Fares Akkad (Regional Director for MENA, Meta)—moderated by Eithne Treanor (Founder & CEO, E. Treanor Media)—examined the shifting economic landscape. One of the biggest challenges is the rising cost of capital, which is reshaping investment strategies. Many companies had hoped that inflation declines would lead to lower interest rates, but this has not materialized. Instead, businesses must now operate under the assumption that higher borrowing costs are here to stay, impacting expansion plans, digital investments, and infrastructure spending.
Another critical factor is the evolving consumer mindset. Customers today are navigating what some experts call “vibe-flation” or a perception of economic instability that is shaping their spending habits. While price sensitivity remains a major concern, consumer demand for personalization, convenience, and meaningful brand experiences is growing. Businesses must navigate this paradox of affordability and premiumization, ensuring that they offer products and services that cater to diverse consumer expectations.
Competition is also becoming more complex. Retailers are no longer just competing with direct industry rivals, they are competing with the last great experience a consumer had, whether in store, online, or through a completely different industry. Consumers today expect seamless, hyper-personalized interactions across all touchpoints, meaning businesses must continuously evolve to meet rising expectations and differentiate themselves in a crowded market.
Artificial intelligence is rapidly becoming the defining technology of the decade, but its impact on global business is still evolving. AI is now being leveraged across supply chain management, pricing optimization, customer engagement, and predictive analytics. However, many businesses still struggle to determine how to integrate AI in a way that enhances human decision-making rather than replacing it. One of the biggest concerns is ensuring that AI doesn’t just cut costs and improve efficiency but also enhances human connection. Companies that use AI purely for automation without considering customer experience risk alienating their audience. On the other hand, businesses that use AI to personalize interactions, anticipate consumer needs, and create value-added experiences will emerge as industry leaders.
Another challenge facing global business is the growing influence of geopolitics on trade, technology, and corporate strategy. The world is shifting from a period of globalization to regionalization, where trade policies, tariffs, and national security concerns are shaping global business decisions more than ever before. Companies must now closely monitor geopolitical risks and integrate them into board-level decision-making. From sourcing materials to choosing where to expand, businesses must develop more resilient supply chains and ensure that they can adapt to shifting trade policies. Retailers and multinational corporations that previously focused solely on efficiency and cost-cutting now need to prioritize resilience and flexibility in their operations.
“The real question isn’t whether AI will change the business landscape, but more about how fast companies can integrate it to stay ahead. Businesses that hesitate will lose their competitive edge.”
– Fares Akkad
