future of retail

TITLE insert text here THE FUTURE OF

RETAIL

#retailoasis

‘the future is here it’s just not evenly distributed’

long live millennials

mobile #1 AI #2

experience is everythingtell don’t sell

change, the only constant

long live millennials

this year, millennials (gen Y) will surpass Baby Boomers as the largest living generation

source: Pew Centre

by 2020 Gen Y + Gen Z will be the dominant retail segments in dollars spent

Management Team* average age

the gap between management and consumer is growing

Source: Fortune * based on age of CEO taking office; ABS 2014

50 yo 34 yo customers

average age

16 years

this matters because:

they are powered by technology

ask ‘why’ more than anything else

want the truth - can get it off twitter

added to this are two very important shifts their generation will bring:

blended society female leadership

2050: US will be a majority non-

Caucasian (Australia will be

similar)

2030: there will be

more female millionaires than male

’75% of millennials consider the store the centrepiece of their experience….they may not come in as much as they use to, but they will be

more knowledgeable when they come in’

Myron Ullman, ex-Chairman +CEO J.C Penney

the physical store needs a new definition:

what this means:

business must shift it’s mindset

to meet the millennial

embrace diversity - culture and

gender

businesses need to act like their digitally native

mobile #1. AI #2

‘channels are a language retailers speak to justify what they’re spending on IT.

it’s not understood by the customer’

Sir Charlie Mayfield, Chairman, John Lewis Partnership

millennials check their phones three times more than any other generation

shift in customer behaviour:

Source: Sam’s Club

under armour: largest mobile fitness community

160m users

150K downloads

a day

my fitness pal

endomondo

map my fitness

health box

brands must follow their customer - not their competitors.

if you don’t have the talent - buy it. there is more talent sitting outside a business than in it.

it starts with mobile and now it’s AI

 nearly $2B in sales will happen this year through a mobile digital assistant (like Siri, or Watson).

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what this means:

mobile first, play with AI

don’t be afraid to ‘buy’ talent

the real cost is in delaying

(not doing)

experience is everything

‘if people are going to go to the store, you need to make it worth it’

Sir Charlie Mayfield, Chairman,John Lewis Partnership

the store is not just about procuring product – you can do that online.

it’s about experience, and people will pay for

experience.

experience isn’t a cost, people will pay for experience.

look at Starbucks they took a 50c commodity and made it into a $5 experience.

TITLE 3x 1 jeans

3x1 - SOHO3x1 - soho

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TITLE the laundress

the laundress - soho

abc home - flatiron

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lululemon - flatiron

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Kit & Ace - NOLITAkit & ace - nolita

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KITH - LES

what this means:

experience is your obligation at

store

it’s brand building if done

well

a product isn’t enough to get

traffic

tell don’t sell

we are marketing machines.

it gets worse when you look at millennials.

they’re more informed, more connected and way more skeptical - all thanks to tech.

they don’t care about your shareholders - they see themselves as the most important part of

the equation

the facts

your authenticity commands their

respect. tell them your story, make it human -

not corporate.

they want to buy into what you’re doing for

the world - make it better (not generate a

sale)

story spiritual stakeholders

eataly - milan

‘we dreamt of making high quality Italian food available around the world – eat, shop and learn about the Dolce Vita’

Oscar Farinetti, Founder, Eataly

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soul cycle

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"it is the place people come, regardless of their age, athletic ability, size, shape, profession or personality, to connect with their best selves."

shinola - tribeca

TITLE insert text here ‘our purpose was to create jobs for people -

not product’

 “the purpose of business is to improve the community - it’s not a monolithic opportunity

where there’s a transaction and you made money -

understand the importance in the long-term of being an important part of the world. “

Myron Ullman, ex-Chairman +CEO J.C Penney

what this means:

work with stakeholders as important as shareholders

lead with purpose - why do

you exist?

treat your customer like a human - with

heart

the only constant is change

nothing is forever, except change

major companies have lost on average 2% market share over last 10 years.

they bet on stability in a world of change.

source: Deloitte

there is no destination only a continual journey. it’s not about your competition but superseding yourself.

'focus on your customer’s needs and be willing to cannibalise yourself...one of our most successful businesses was 'travellers

cheques' - generating 90% of our profits. if we had not cannibalised ourselves then we

would not be in existence now'

Kenneth I. Chenault, CEO, AMEX

 ‘don’t be worried about the next up and comer be worried about the competition

that doesn’t exist yet ‘

Kevin Plank, Founder, Under Armour

uberpool

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TOMS - NOLITA

“we’re dealing with business models that aren’t as efficient as they use to be.. 

it’s not what the change is; but how do you change continuously”

Sir Charlie Mayfield, Chairman, John Lewis Partnership

what this means:

success is continual change

it’s only about people

supersede yourself

long live millennials

mobile #1 AI #2

experience is everythingtell don’t sell

change, the only constant

“perpetual optimism is a force multiplier - convey an attitude of ‘it can be done’

(and it will be)”

finally…

ADDRESSLevel 4, 1a Rialto Lane Manly NSW 2095, Australia

WEB PHONE+61 2 9976 6222www.retailoasis.com