"Go West Chapter I" ~ Now, to NRF EUROPE!　

This fourth installment of our series follows NRF APAC 2024, which made its Asian debut in Singapore in 2024, and now covers NRF EUROPE 2025 (September 16-18, 2025), the first-ever European edition held in Paris.Compared to the U.S., which we've been observing chronologically, this convention saw fewer participants from Japan. Precisely because of this, we aim to deliver insights unique to Europe—including on-site store visits—that differ from those of Asia and America.

Furthermore, particularly in the retail and commerce domain, the underlying philosophy and thinking are remarkably close to Japan's. It's also noteworthy that many companies there firmly embrace the three key elements shaping trends in this domain post-2026: Real (Time), Physical (Store), and Mutual (People).

Furthermore, in the second part, we will venture beyond France to London, UK, to introduce the London Design Festival 2025 (LDF, September 12-20, 2025). Born in 2003 and now celebrating over 20 years, it is the world's largest social design event. We plan to share its initiatives, so please experience "the current state of European retail and commerce" a little more through this as well.

This series has provided an overview of the retail and commerce environment across different global markets within a span of less than a year: January in the US, June in Singapore, and September in France.Major retailers' DX initiatives / Changes in data and marketing environments driven by evolving marketing landscapes / Technological advancements in exhibition technologies... Now, a quarter-century into the 21st century, while the "three sacred treasures" of digital, data, and technology have seen remarkable development compared to the 20th century, progressing at an even more astonishing pace is "AI."We can glimpse aspects of this in the keynote and featured sessions from the three conventions mentioned earlier. We will now introduce the key points of NRF EUROPE 2025, incorporating the overall themes from this year's NRF.

The Reality of AI Implementation and Its Speed

① January: At NRF 2025 in New York, the keyword "Generative AI" was frequently mentioned. The image above illustrates how it is embedded across a wide range of areas from upstream to downstream in the value chain, addressing specific challenge domains like supply chain, marketing, and store operations. However, at this stage, it felt like it hadn't yet moved beyond the realm of "partially optimized AI."

② June: At NRF APAC, held in Singapore for the second consecutive year, the term "Agentic AI"※1 was frequently seen. Its utility, emphasized in the opening keynote, was impressively summarized as "the power to constructively and swiftly resolve various contradictions within a society advanced by the three-point set of data, digital, and technology."

※1 Agentic AI (Agentic AI / Agent-based AI)……While "AI agents" are automated systems performing specific tasks, "Agentic AI" refers to the framework or domain that integrates these AI agents. Through "autonomous decision-making," "persistent memory," "multi-agent collaboration," and "dynamic task decomposition," it enables the achievement of more complex goals. As an advanced evolution of the former, it allows for more flexible, context-aware decision-making and action judgments.

③ September: At this year's NRF EUROPE, survey results on AI initiatives among executives at global companies were presented. It became clear that nearly 90% have no doubt about the importance of implementation speed, the business impact these initiatives deliver, and their exponential growth potential.

NVIDIA Case Study

At this point, it is beyond doubt that NVIDIA※2 most succinctly embodies the reality of AI implementation. Collaborating with L'Oréal, IKEA, Walmart, PepsiCo..., and several leading venture companies with specialized solutions, NVIDIA is advancing the implementation of Agentic AI across a broad value chain under the slogan "I am AI."

※2 NVIDIA... A company headquartered in the United States, primarily developing, researching, and selling GPGPU and AI-related semiconductors

Moreover, these developments are progressing not so much in the demand chain (≈CX) that we as consumers perceive and experience, but rather in the upstream supply chain and the entire value chain encompassing them (≈BX).

For example, in our collaboration with PepsiCo: ① "Vision AI" camera systems detect anomalies in warehouse logistics,② improving warehouse route simulations using "Digital Twin" technology, and ③ creating an assistant agent by incorporating highly specialized employee interactions into their proprietary LLM "PepgenX" ( ). It's astonishing that they launched this "warehouse intelligence" initiative over a decade ago, built on these three major pillars.

NRF EUROPE 2025 Summary

Applying the Smile Curve※3 framework to the key points discussed and case studies from various companies allows for the above structure. The vertical axis represents added value, while the horizontal axis shows the value chain (BX to CX).Consider the L'Oréal × WPP case study: creating digital creative patterns, followed by optimal media planning for distribution, and post-strategy analysis reviews and reporting. Client work traditionally delivered manually and for a fee—in terms of volume, quality, speed, and cost—is precisely the domain where AI can demonstrate capabilities surpassing humans.
This undeniably confronts us with the reality that the marketing and promotion domains where "Agency" has provided value are facing inevitable value reduction due to "Agentic" AI. So, will "Agency" simply become commoditized?

The answer is NO. Paradoxically, as AI impacts broader segments of the value chain—particularly pushing down the "center" of the Smile Curve—the relative value of the "end" segments, which are harder to replace with AI, is expected to increase. During this European inspection tour, we encountered unique retailers embodying precisely this concept. I will share some of these insights alongside key takeaways from the keynote and our store/shop inspections.

※3 Smile Curve: A curve representing profitability by business segment. On a graph with profitability on the vertical axis and business processes on the horizontal axis, it shows a U-shaped profitability structure: high profitability in product planning/development (upstream) and sales/maintenance (downstream) processes, while profitability in the intermediate manufacturing/assembly process is low.

Unique European Retailers: Their Philosophy and Store Reality

【SEPHORA】

First is Sephora, the beauty cosmetics giant originating in France that commands a strong presence in the global market. The keynote emphasized unwavering trust in the possibilities of the store and the potential of its staff (the power of the store).

Visiting their flagship store on the Champs-Élysées reveals that the vibrant atmosphere—beyond just floor space and extensive product range—is created by the diverse interactions between customers (including tourists) and staff dressed in chic black uniforms.

【ACTION】

The second example is a Dutch-origin, hard-discounter (ultra-low-price retailer) experiencing rapid growth in the French market. From its local & small HQ, it leverages AI-powered price monitoring to appeal to manufacturers: reducing procurement costs, thoroughly streamlining and optimizing stores, and instantly meeting customers' low-price preferences.

However, when I visited one of their much-talked-about stores expecting to grab a bottle of mineral water like at a convenience store, I saw a line of nearly 20 people waiting at the register in the store located beneath an apartment complex. I had no choice but to leave quickly, experiencing firsthand the difference in culture and commerce (sensibilities and customs).

【SNIPES】

Finally, a case study of a German street fashion select shop for young people entering the French market. In European society, where different cultures and customs coexist side by side, it is essential to thoroughly understand that "when in Rome, do as the Romans do," including respect for the market you are entering, and to pursue straightforward branding without trying to be overly novel. "Reach without relevance is worthless."

To embody this concept, they collaborated with Paris Saint-Germain FC to set up a fan zone inside the stadium. This became a hot topic when they won against Manchester City FC. Their stores seem to be brimming with skillful connection management with the community, in addition to culture and commerce.

NRF 2025: Summary after three conventions

What did you think? What the three companies driving French retail commerce have in common is that they all utilize the power of data, digital technology, and AI to a greater or lesser extent. This is no different from the US or Asia. This is summarized in the table below.

In January, after the US NRF concluded, I contributed a summary titled "Game Changer = AI." However, what struck me this time in Europe was the foreshadowing of the next quarter-century beginning in 2026, following the post-COVID era. I felt this most strongly not just in France, but further west—in the UK, where I extended my trip.
In the second part, I will introduce these insights.