Winning the future shopper

Retail

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GfK slide gallery Winning the future shopper Four keys to your future of retail Omnishopper conference Paris 2015 ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Today 1 2 3 Making sense of chaos Battlegrounds and predictions Four ways to win ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› 1. Nothing has changed. Execution has changed dramatically, but retail fundamentals are unchanged. 2. But you need to get faster. When retailing you need to be fitter, more agile. 3. Loyalty is dead. Loyalty, if it ever existed in a pure form, has been left behind. Your loyalty expectations should now be different. Our inspiration Image sources: "5 ball juggling" by Original uploader was James Heilman, MD at en.wikipedia - Transferred from en.wikipedia; transferred to Commons by User:Stevenfruitsmaak using CommonsHelper.. Licensed under CC BY-SA 3.0 via Commons - https://commons.wikimedia.org/wiki/File:5_ball_juggling.jpg#/media/File:5_ball_juggling.jpg; "Video shop" by Tracy the astonishing - The video store on Flickr. Licensed under CC BY-SA 2.0 via Commons - https://commons.wikimedia.org/wiki/File:Video_shop.jpg#/media/File:Video_shop.jpg; http://www.blinkbox.com ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Self service: 1915/1916 self service (US – Groceteria) Source: Smart Retail, Richard Hammond The history of retail Chains: c.200 BC the creation of the first chain of stores (China – Lo Kass) Distance selling: 17th century catalogue based mail order (Europe) Ye Olde Catalogue Retail theatre: 1852 the first department store (Paris, France – Le Bon Marché) In the last 2,200 years there have been four retail innovations ‹#› © GfK November 23, 2015 | New shopper reality “Retailing is not about inventing new stuff Retail ideas are about change, improvement and development They are rarely about coming up with things that no human has ever thought about before You don’t have to magically pluck new ‘things’ out of nowhere to be innovative and successful” Smart Retail, Richard Hammond ‹#› © GfK November 23, 2015 | New shopper reality Take comfort, the fundamentals remain unchanged Choice Price Convenience Experience ‹#› © GfK November 23, 2015 | New shopper reality How should we understand the future shopper? Live in the jungle Observe shoppers Ask shoppers ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› The musings of Anya Llewellyn Use your imagination. Talk to future shoppers ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Retail in turmoil ‹#› © GfK November 23, 2015 | New shopper reality Retail is not as it once was Amazon selling via Waterstones Tetley and Nestle collaborating to sell to need states Stores seeking to communicate through entertainment ‹#› © GfK November 23, 2015 | New shopper reality The door is open to experimentation Barriers to trying new things in store have dissolved Store design, once dictated by cost and efficiency, has opened up Slowing growth = more innovation in retail ‹#› © GfK November 23, 2015 | New shopper reality Four pillars of retail ‹#› © GfK November 23, 2015 | New shopper reality Technology and austerity create raised expectations Choice Price Convenience Experience Four new retail battlegrounds Sell to need states not categories Be transparent on price position Make the shopper feel good about their choice Be where your shoppers are ‹#› © GfK November 23, 2015 | New shopper reality Four vectors which drive retail advantage Choice Price Convenience Experience Four new retail battlegrounds Sell to need states not categories Be transparent on price position Make the shopper feel good about their choice Be where your shoppers are Predictions for the future of shopping Mobile will enable omnishopping Competitors will collaborate Same price for same item Shoppers will be satisfied, not coerced The future is bright… ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER ONE Convenience Be where your shoppers are Prediction Mobile will enable omnishopping ‹#› © GfK November 23, 2015 | New shopper reality Skip the queue, happy you The end of the queue? ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› FutureBuy 2015, 2014, n=1,000 per market “My mobile device is quickly becoming my most important shopping tool” Global average = 34% 60% 53% 75% 74% 58% 35% 16% 48% 50% 72% 20% 2015 2014 ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Being convenient has been essential since retail began To create attraction from the moment of trigger you must be continuously available Purchase ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER TWO Choice Sell to need states not categories Prediction Competitors will collaborate ‹#› © GfK November 23, 2015 | New shopper reality Shoppers want services not categories Merchandising to an occasion Competitor collaboration ‹#› © GfK November 23, 2015 | New shopper reality FutureBuy 2015, UK data People want to buy multiple things at once! Can we do more to help them? Let’s me see and feel the products before I buy 1st Getting the best advice on what to buy 20th 41% 5% Save money (better pricing, deals) 1st Getting the best advice on what to buy 17th 53% 5% Can buy other things at the same time Can buy other things at the same time Why do you buy in stores? Why do you buy online? 5th 11th 24% 16% ‹#› © GfK November 23, 2015 | New shopper reality Tesco.com How can we help the shopper fulfil their mission? ‹#› © GfK November 23, 2015 | New shopper reality Ocado.com How can manufacturers and retailers collaborate to help shoppers visualise a meal? ‹#› © GfK November 23, 2015 | New shopper reality The key to choice Offering the right choice has always been critical, but typically product has been merchandised category by category, without a wider view To win with the future shopper you must create services around need states not categories. Often this will require collaboration with competition. ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER THREE Sell to need states not categories Retailers and manufacturers will collaborate with competitors to raise the bar in retail Price Be transparent on price position Same price for same item Prediction ‹#› © GfK November 23, 2015 | New shopper reality Sources: UK retail safari Talking incessantly about price creates a commodity mind-set among shoppers ‹#› © GfK November 23, 2015 | New shopper reality Sports Direct website; Up and Running, Aylesbury, Google see inside This creates a major challenge to retailers who need to command a premium Price spectrum ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› SportsDirect.com, Upandrunning.com How do you monetise expertise? Price spectrum ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Where should the £18.50 go? ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› FutureBuy, global data, n=23,003 Shoppers are increasingly baffled by the idea that they should pay more at a different place “It is important to me that the price of an item be the same whether I buy it online or in-store” +12%p 58% 70% Total LEC ‹#› © GfK November 23, 2015 | New shopper reality Digital and austerity create a new level of transparency and shopper scrutiny The key to price Charging more for the same item is no longer viable. Premium retailers must trade shoppers up outside of brands, as discounters have traded down. Matched prices for the same/equivalent products Upsell (Service, private label, subscription) Downsell (Private label) ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER FOUR Sell to need states not categories Retailers and manufacturers will collaborate with competitors to raise the bar in retail Prediction Be transparent on price position Shoppers will pay the same price for the same items. Retailers will differentiate through their value proposition Experience Make the shopper feel good about their choice Shoppers will be satisfied, not coerced Prediction ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | New shopper reality ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› BOQ - Bank of Queensland Branch of the Future http://sydneydesignawards.com.au/syd14/entry_details.asp?ID=13421&Category_ID=6059 “If this looks or feels anything like a bank, I’ll walk out!” How do we make selling spaces more human? ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› “At Virgin Holidays we like to do things differently While most stores are designed to sell, sell, sell – that isn’t the top of our agenda We want to provide a retail space that is designed to inspire consumers through immersive experiences” Lee Haslett, director of sales at Virgin Holidays ‹#› © GfK November 23, 2015 | New shopper reality Wagamama, High Wycombe, UK ‹#› © GfK November 23, 2015 | New shopper reality Page 36 © GfK November 23, 2015 | Title of presentation ‹#› Wagamama, High Wycombe, UK ‹#› © GfK November 23, 2015 | New shopper reality Page 37 © GfK November 23, 2015 | Title of presentation ‹#› http://www.techtimes.com/articles/40857/20150319/ailibabas-jack-ma-demos-pay-selfie-technology.htm; http://www.bbc.co.uk/news/technology-33379461 Talking of forgetting passwords… Selfie pay Alibaba’s CEO Jack Ma ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› “I’m making more payments using my mobile device in store compared to last year” Global average = 12% 23% 24% 32% 32% 12% 11% 10% ‹#› © GfK November 23, 2015 | New shopper reality FutureBuy 2015, n=1,000 per market Mobile is an experience enabler, where demand exceeds supply Making more mobile payments “I’m making more payments using my mobile device in store compared to last year” Want to make more mobile payment “I look forward to being able to pay for more and more transactions from my mobile device” Latent demand +/- diff 19% 24% 23% 12% 32% 62% 65% 63% 51% 70% +43 +41 +40 +39 +38 © GfK November 23, 2015 | New shopper reality ‹#› © GfK November 23, 2015 | New shopper reality Deliver to home Deliver to collection point Deliver to my car Deliver to store Retail no longer finishes with the ‘store’ Think spare capacity, think sharing economy ‹#› © GfK November 23, 2015 | New shopper reality FutureBuy, global data, n=23,003 Stand and deliver! Cost of delivery 1st Prefer to see product in person 3rd 42% 37% Card/personal details security 2nd 38% Free delivery 1st Holiday/seasonal discounts 3rd 74% 48% Better loyalty programmes What would make you buy more online? 2nd 48% Why do you not buy online? ‹#› © GfK November 23, 2015 | New shopper reality The key to experience The collision of digital and austerity provides the fertile ground we need to enliven retail Create experiences not transactions ‹#› © GfK November 23, 2015 | New shopper reality Conclusions ‹#› © GfK November 23, 2015 | New shopper reality The four keys to winning your future shopper Create experiences not transactions Be continuously available from the moment of trigger Matched prices for the same/equivalent products Upsell (Service, private label, subscription) Downsell (Private label) Create services not categories Price match the core, trade up or down ‹#› © GfK November 23, 2015 | New shopper reality Our imagination creates a window to the future of shopping WINES FRUIT ‹#› © GfK November 23, 2015 | New shopper reality
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GfK slide gallery Winning the future shopper Four keys to your future of retail Omnishopper conference Paris 2015 ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Today 1 2 3 Making sense of chaos Battlegrounds and predictions Four ways to win ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› 1. Nothing has changed. Execution has changed dramatically, but retail fundamentals are unchanged. 2. But you need to get faster. When retailing you need to be fitter, more agile. 3. Loyalty is dead. Loyalty, if it ever existed in a pure form, has been left behind. Your loyalty expectations should now be different. Our inspiration Image sources: "5 ball juggling" by Original uploader was James Heilman, MD at en.wikipedia - Transferred from en.wikipedia; transferred to Commons by User:Stevenfruitsmaak using CommonsHelper.. Licensed under CC BY-SA 3.0 via Commons - https://commons.wikimedia.org/wiki/File:5_ball_juggling.jpg#/media/File:5_ball_juggling.jpg; "Video shop" by Tracy the astonishing - The video store on Flickr. Licensed under CC BY-SA 2.0 via Commons - https://commons.wikimedia.org/wiki/File:Video_shop.jpg#/media/File:Video_shop.jpg; http://www.blinkbox.com ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Self service: 1915/1916 self service (US – Groceteria) Source: Smart Retail, Richard Hammond The history of retail Chains: c.200 BC the creation of the first chain of stores (China – Lo Kass) Distance selling: 17th century catalogue based mail order (Europe) Ye Olde Catalogue Retail theatre: 1852 the first department store (Paris, France – Le Bon Marché) In the last 2,200 years there have been four retail innovations ‹#› © GfK November 23, 2015 | New shopper reality “Retailing is not about inventing new stuff Retail ideas are about change, improvement and development They are rarely about coming up with things that no human has ever thought about before You don’t have to magically pluck new ‘things’ out of nowhere to be innovative and successful” Smart Retail, Richard Hammond ‹#› © GfK November 23, 2015 | New shopper reality Take comfort, the fundamentals remain unchanged Choice Price Convenience Experience ‹#› © GfK November 23, 2015 | New shopper reality How should we understand the future shopper? Live in the jungle Observe shoppers Ask shoppers ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› The musings of Anya Llewellyn Use your imagination. Talk to future shoppers ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Retail in turmoil ‹#› © GfK November 23, 2015 | New shopper reality Retail is not as it once was Amazon selling via Waterstones Tetley and Nestle collaborating to sell to need states Stores seeking to communicate through entertainment ‹#› © GfK November 23, 2015 | New shopper reality The door is open to experimentation Barriers to trying new things in store have dissolved Store design, once dictated by cost and efficiency, has opened up Slowing growth = more innovation in retail ‹#› © GfK November 23, 2015 | New shopper reality Four pillars of retail ‹#› © GfK November 23, 2015 | New shopper reality Technology and austerity create raised expectations Choice Price Convenience Experience Four new retail battlegrounds Sell to need states not categories Be transparent on price position Make the shopper feel good about their choice Be where your shoppers are ‹#› © GfK November 23, 2015 | New shopper reality Four vectors which drive retail advantage Choice Price Convenience Experience Four new retail battlegrounds Sell to need states not categories Be transparent on price position Make the shopper feel good about their choice Be where your shoppers are Predictions for the future of shopping Mobile will enable omnishopping Competitors will collaborate Same price for same item Shoppers will be satisfied, not coerced The future is bright… ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER ONE Convenience Be where your shoppers are Prediction Mobile will enable omnishopping ‹#› © GfK November 23, 2015 | New shopper reality Skip the queue, happy you The end of the queue? ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› FutureBuy 2015, 2014, n=1,000 per market “My mobile device is quickly becoming my most important shopping tool” Global average = 34% 60% 53% 75% 74% 58% 35% 16% 48% 50% 72% 20% 2015 2014 ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Being convenient has been essential since retail began To create attraction from the moment of trigger you must be continuously available Purchase ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER TWO Choice Sell to need states not categories Prediction Competitors will collaborate ‹#› © GfK November 23, 2015 | New shopper reality Shoppers want services not categories Merchandising to an occasion Competitor collaboration ‹#› © GfK November 23, 2015 | New shopper reality FutureBuy 2015, UK data People want to buy multiple things at once! Can we do more to help them? Let’s me see and feel the products before I buy 1st Getting the best advice on what to buy 20th 41% 5% Save money (better pricing, deals) 1st Getting the best advice on what to buy 17th 53% 5% Can buy other things at the same time Can buy other things at the same time Why do you buy in stores? Why do you buy online? 5th 11th 24% 16% ‹#› © GfK November 23, 2015 | New shopper reality Tesco.com How can we help the shopper fulfil their mission? ‹#› © GfK November 23, 2015 | New shopper reality Ocado.com How can manufacturers and retailers collaborate to help shoppers visualise a meal? ‹#› © GfK November 23, 2015 | New shopper reality The key to choice Offering the right choice has always been critical, but typically product has been merchandised category by category, without a wider view To win with the future shopper you must create services around need states not categories. Often this will require collaboration with competition. ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER THREE Sell to need states not categories Retailers and manufacturers will collaborate with competitors to raise the bar in retail Price Be transparent on price position Same price for same item Prediction ‹#› © GfK November 23, 2015 | New shopper reality Sources: UK retail safari Talking incessantly about price creates a commodity mind-set among shoppers ‹#› © GfK November 23, 2015 | New shopper reality Sports Direct website; Up and Running, Aylesbury, Google see inside This creates a major challenge to retailers who need to command a premium Price spectrum ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› SportsDirect.com, Upandrunning.com How do you monetise expertise? Price spectrum ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› Where should the £18.50 go? ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› FutureBuy, global data, n=23,003 Shoppers are increasingly baffled by the idea that they should pay more at a different place “It is important to me that the price of an item be the same whether I buy it online or in-store” +12%p 58% 70% Total LEC ‹#› © GfK November 23, 2015 | New shopper reality Digital and austerity create a new level of transparency and shopper scrutiny The key to price Charging more for the same item is no longer viable. Premium retailers must trade shoppers up outside of brands, as discounters have traded down. Matched prices for the same/equivalent products Upsell (Service, private label, subscription) Downsell (Private label) ‹#› © GfK November 23, 2015 | New shopper reality CHAPTER FOUR Sell to need states not categories Retailers and manufacturers will collaborate with competitors to raise the bar in retail Prediction Be transparent on price position Shoppers will pay the same price for the same items. Retailers will differentiate through their value proposition Experience Make the shopper feel good about their choice Shoppers will be satisfied, not coerced Prediction ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | New shopper reality ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› BOQ - Bank of Queensland Branch of the Future http://sydneydesignawards.com.au/syd14/entry_details.asp?ID=13421&Category_ID=6059 “If this looks or feels anything like a bank, I’ll walk out!” How do we make selling spaces more human? ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› “At Virgin Holidays we like to do things differently While most stores are designed to sell, sell, sell – that isn’t the top of our agenda We want to provide a retail space that is designed to inspire consumers through immersive experiences” Lee Haslett, director of sales at Virgin Holidays ‹#› © GfK November 23, 2015 | New shopper reality Wagamama, High Wycombe, UK ‹#› © GfK November 23, 2015 | New shopper reality Page 36 © GfK November 23, 2015 | Title of presentation ‹#› Wagamama, High Wycombe, UK ‹#› © GfK November 23, 2015 | New shopper reality Page 37 © GfK November 23, 2015 | Title of presentation ‹#› http://www.techtimes.com/articles/40857/20150319/ailibabas-jack-ma-demos-pay-selfie-technology.htm; http://www.bbc.co.uk/news/technology-33379461 Talking of forgetting passwords… Selfie pay Alibaba’s CEO Jack Ma ‹#› © GfK November 23, 2015 | New shopper reality © GfK November 23, 2015 | Title of presentation ‹#› “I’m making more payments using my mobile device in store compared to last year” Global average = 12% 23% 24% 32% 32% 12% 11% 10% ‹#› © GfK November 23, 2015 | New shopper reality FutureBuy 2015, n=1,000 per market Mobile is an experience enabler, where demand exceeds supply Making more mobile payments “I’m making more payments using my mobile device in store compared to last year” Want to make more mobile payment “I look forward to being able to pay for more and more transactions from my mobile device” Latent demand +/- diff 19% 24% 23% 12% 32% 62% 65% 63% 51% 70% +43 +41 +40 +39 +38 © GfK November 23, 2015 | New shopper reality ‹#› © GfK November 23, 2015 | New shopper reality Deliver to home Deliver to collection point Deliver to my car Deliver to store Retail no longer finishes with the ‘store’ Think spare capacity, think sharing economy ‹#› © GfK November 23, 2015 | New shopper reality FutureBuy, global data, n=23,003 Stand and deliver! Cost of delivery 1st Prefer to see product in person 3rd 42% 37% Card/personal details security 2nd 38% Free delivery 1st Holiday/seasonal discounts 3rd 74% 48% Better loyalty programmes What would make you buy more online? 2nd 48% Why do you not buy online? ‹#› © GfK November 23, 2015 | New shopper reality The key to experience The collision of digital and austerity provides the fertile ground we need to enliven retail Create experiences not transactions ‹#› © GfK November 23, 2015 | New shopper reality Conclusions ‹#› © GfK November 23, 2015 | New shopper reality The four keys to winning your future shopper Create experiences not transactions Be continuously available from the moment of trigger Matched prices for the same/equivalent products Upsell (Service, private label, subscription) Downsell (Private label) Create services not categories Price match the core, trade up or down ‹#› © GfK November 23, 2015 | New shopper reality Our imagination creates a window to the future of shopping WINES FRUIT ‹#› © GfK November 23, 2015 | New shopper reality
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