creating a retail ecosystem fit for future shopper
TRANSCRIPT
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CREATING A RETAIL ECOSYSTEM FIT FOR FUTURE SHOPPERS:
HOW BRANDS AND RETAILERS ARE TAPPING INTO SHIFTING CONSUMER EXPECTATIONS BY EMBRACING THE NEXT WAVE OF DISRUPTION, INNOVATION AND GAME-CHANGING TECHNOLOGYTerna Jibo, Head of Strategic Insights, Portland Design
November 29th, 2016
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AT PORTLAND, WE DESIGN ‘FUTURE PROOFED’ SHOPPING. WE SEEK
INSPIRATION IN TRENDS; WE IMAGINE THE IMPACTS OF INNOVATIONS AND OUR SOLUTIONS ARE GUIDED BY INFORMED
INTUITION. WE BRING INNOVATION FROM THE BREADTH AND DEPTH OF
OUR EXPERIENCE OF WORKING ACROSS CATEGORIES AND CONTINENTS.
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Platforms
PlacesPlaces – We investigate the factors that influence people’s shopping destinations and retail environment preferences
Platforms – We probe the multiple digital and physical touchpoints consumers use to connect with brands and retailers
People
Products
People – We dig deeper to understand consumer and
shopper attitudes, motivations, behaviours and future
expectations
Products – We research the factors affecting consumers’
product choices, decision-making and purchase
behaviour
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“WE ARE LIVING IN A SUPER VUCA WORLD - VOLATILE, UNCERTAIN,
COMPLEX & AMBIGUOUS.”
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TODAY’S CONSUMERS ARE DEMANDING CONVENIENCE, VALUE AND AN
AMAZING EXPERIENCE, AND IT IS THESE THREE KEY TRENDS THAT ARE
DRIVING DISRUPTION TO EXISTING MARKETS AND BUSINESS MODELS ON
AN UNPRECEDENTED SCALE.
KPMG
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BY 2020, GENERATION Z, TODAY’S 14-19-YEAR-OLDS WILL BE THE LARGEST
GROUP OF CONSUMERS WORLDWIDE, MAKING UP 40% OF THE US, EUROPE
AND BRIC COUNTRIES, AND 10% IN THE REST OF THE WORLD — AND BY THEN, THEY WILL CONSTITUTE THE LARGEST GROUP OF CONSUMERS WORLDWIDE.
PWC
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GEN Z IS POST-MILLENNIAL TEENAGERS WHO HAVE GROWN UP WITH FUNDAMENTALLY DIFFERENT
VALUES, ATTITUDES AND CONSUMER BEHAVIOURS.
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POLITICALLY, SOCIALLY, TECHNOLOGICALLY, AND ECONOMICALLY, WE ARE MOVING AT WARP SPEED. THESE CHANGES HAVE CREATED A GENERATION
VERY DIFFERENT THAN ANY KNOWN BEFORE. RETAILERS, AND IN FACT ALL
BUSINESSES, HOPING TO CONNECT WITH THESE SAVVY CONSUMERS NEED TO UNDERSTAND WHO THEY ARE, WHAT THEY WANT, AND HOW THEY WANT IT.
ERNST & YOUNG
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THEY LIVE IN THE MOMENT, BUT WITH AN EYE TOWARD THE FUTURE: 63% OF
GEN Z TEENS ARE WORRIED ABOUT THE FUTURE.
Sparks & Honey
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GEN Z IS TWICE AS LIKELY TO SHOP ON A MOBILE DEVICE THAN
MILLENNIALS.
POPSUGAR
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72% OF GEN Z AND 78% OF MILLENNIALS WOULD RATHER PAY MONEY FOR AN EXPERIENCE OVER
A PRODUCT.
EVENTBRITE & YPULSE
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IN THE PAST, TEENAGERS USED FASHION BRANDS AS A KIND OF SOCIAL SIGNAL.
GENERATION Z, HOWEVER, IS MORE SELF-ASSURED. THE PERCENTAGE OF ADOLESCENTS WHO AGREED
WITH THE STATEMENT, “I CARE A LOT ABOUT WHETHER MY CLOTHES ARE
IN STYLE,” DROPPED FROM 65% IN 1997 TO 47% IN 2014.
TRU YOUTH MONITOR.
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FROM 2005 TO SPRING 2016, OF THE TOTAL AMOUNT SPENT BY TEENAGERS
ON KEY FASHION CATEGORIES OF CLOTHING, ACCESSORIES,
AND FOOTWEAR HAS FALLEN FROM 45% TO 38%.
PIPER JAFFRAY
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RETAILERS AND BRANDS HAVE MUCH TO GAIN FROM UNDERSTANDING THESE
FUTURE SHOPPERS. BY LEARNING ABOUT WHAT DRIVES THEM NOW, WE
CAN BEGIN TO PREDICT NOT ONLY HOW THEY WILL BEHAVE IN THE FUTURE BUT
ALSO HOW TO BE READY TO ENGAGE THEM WHEN WE GET THERE, TOO.
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“IF TIME IS THE ULTIMATE LUXURY AND PEOPLE WANT A HIGHER ROI
OF THEIR TIME, YOU NEED TO GIVE THEM A REASON TO BE
IN A PHYSICAL SPACE.”
Rachel Shechtman, Story
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RE-IMAGINING THE RETAIL EXPERIENCE FOR A DIGITAL WORLD
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IN THE FUTURE, THE WINNERS WILL BE THE RETAILERS AND BRANDS
WHO CAN IDENTIFY AND UNDERSTAND GEN Z’S NEEDS, AND ALIGN BOTH THEIR
DIGITAL AND IN-STORE EXPERIENCE WITH THEIR BEHAVIOURS.
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BenchmarksPERSONALISED LOYALTY SCHEMESPersonalised loyalty schemes acknowledging personal tastes, preferences and evolving behaviours are creating far stronger brand-consumer dialogues than generic incentives.
GAP+ APPGlobal
FRISKA APPUK
ANTOVA SOFTWAREUK
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BenchmarksCHATBOT COMMERCE
AI-powered messaging tools, including chatbots, are amplifying brands’ capacity to accommodate high volumes of bespoke search queries online.
THE NORTH FACE PERSONAL SHOPPERGlobal
SEPHORA X KIKGlobal
MACY’S ON CALL APPUSA
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BenchmarksSMART-TECH SERVICEOmni-smart, concierge-style devices are helping to identify those consumers in-store and provide more relevant and satisfying service.
ALDO CONNECTED STORENY, USA
TRUE RELIGION SMART WATCHLondon, UK
REVOLVE CLOTHINGLA, USA
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BenchmarksCONNECTED FITTING ROOMSChanging-room tech aren’t only bringing the choice, speed and convenience of e-tail into the store environment; they’re also amplifying the enjoyment of the brand experience.
SHOPWITHME RFID MIRRORVarious, USA
POLO RALPH LAURENNY, USA
RIBY & PELLERLondon, UK
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BenchmarksPHYSI-VIRTUAL STORESSmart stores that bridge physical and digital will allow consumers to seamlessly shop across all the channels where they spend their time.
SEPHORA FLASHParis, France
THE LINE – SHOPPABLE VRNY, USA
BLOOMINGDALES X SNAPCHATNY, USA
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BenchmarksCUSTOMISATION BARSShrewd fashion brands are investing in new modes of customisation, both on and offline, tapping into co-creation and immersive experiences.
CONVERSE BLANK CANVASNY, USA
LEVI’S CUSTOM LASER BARNY, USA
RALPH LAUREN CUSTOM BARLondon, UK
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BenchmarksDELIVERY INNOVATIONSClick & Collect points combined with slick apps will provide smoother and more convenient delivery experiences for shoppers.
DROPIT APPLondon, UK
DODDLE CLICK & COLLECTVarious, UK
SELFRIDGES DRIVE-THROUGHLondon, UK
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BenchmarksIMMERSIVE POP-UPSSmart brands are using pop-ups as tech-engaged hubs able to trade dynamically on the excitement of flash trends and fleeting moments.
BenchmarksIMMERSIVE POP-UPSSmart brands are using pop-ups as tech-engaged hubs able to trade dynamically on the excitement of flash trends and fleeting moments.
NIKE SNKRS ZOOM CITYNY, USANIKE SNKRS ZOOM CITYNY, USA
SEPHORA COLLECTION POP-UPNY, USASEPHORA COLLECTION POP-UPNY, USA
SHOPWITHMEVarious, USASHOPWITHMEVarious, USA
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BenchmarksSHARING THE PROCESSCourting consumers’ desire for greater visibility around the processes behind brands, store designs that fully disclose the brand’s in workings, are increasingly useful.
EVERLANE TRANSPARENCY TOURSSan Francisco, USA
JIGSAW FLAGSHIPLondon, UK
INES DE LA FRESSANGEParis, France
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BenchmarksSOCIAL MEDIA SELLSocial media has long been an inspiration platform, but the wider integration of ways to buy instantly in-app will mark a key turning point in e-commerce.
SHOPSTYLE X SNAPCHATUSA
SHOPBOP X INSTAGRAMGlobal
BURBERRY X PINTERESTGlobal
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HOW CAN RETAILERS AND BRANDS EMBRACE THE NEXT WAVE OF DISRUPTION, INNOVATION AND
GAME-CHANGING TECHNOLOGY TO CREATE A RETAIL ECOSYSTEM FIT
FOR FUTURE SHOPPERS?
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Mobile devices
IoT platforms
Location detection technologies
Advanced human-machine interfaces
Authentication & fraud detection
3D printingSmart sensors
Big data analytics and advanced algorithms
Multilevel customer interaction and customer profiling
Augmented reality/wearables
Cloud computing
Industry4.0
Data & Analytics as core capability
Data & Analytics as core capability
1 . D
igitisation and integration
of
vertical and horizontalvalue chains
3. Digi
tal b
usin
ess
models and cu
stom
er a
cces
s2. D
igitisation of
product and service offerings
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RETAILING IN THE DIGITAL AGE DOESN’T MEAN INTRODUCING “DIGITAL”
TO THE PHYSICAL SPACE. INSTEAD, IT MEANS REDEFINING YOUR
ENTIRE BUSINESS AROUND OPERATING IN A DIGITAL WORLD.
SapientNitro, 2016
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IN-STORE INNOVATION & ‘RETAILTAINMENT’
BRANDS AND RETAILERS WILL NEED TO DELIVER RETAIL THEATRE AND ULTRA-
IMMERSIVE EXPERIENCE-BASED EVENTS THAT SHOWCASE PRODUCTS AND
HIGHLIGHTS THE CREATIVE PROCESS.
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AUGMENTING THE BRAND STORY
EXPERIENTIAL BRAND TEMPLES, INNOVATION LABS AND INTERACTIVE PRODUCT
SHOWROOMS AUGMENT THE BRAND EXPERIENCE TO BECOME MORE INNOVATIVE,
EXCITING AND RELEVANT.
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TOTAL CHANNEL CONVERGENCE
THE CONVERGENCE OF PHYSICAL AND DIGITAL CHANNELS PROVIDES AN
INTEGRATED, MEANINGFUL AND ENHANCED CUSTOMER SHOPPING EXPERIENCE ACROSS
ALL TOUCHPOINTS.
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PERSONAL, INTIMATE & DYNAMIC CONNECTIONS
INNOVATIVE DIGITAL PLATFORMS DELIVER HYPER-PERSONALISED PRODUCT RECOMMENDATIONS, OFFERS, SERVICES,
PRICING, COLLECTION & DELIVERY.
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IN-THE-MOMENT PERSONALISATION
SEAMLESS, INTEGRATED, MULTI-CHANNEL RETAIL SHOPPING EXPERIENCES ARE
DELIVERED THROUGH CONTEXT-AWARE TECHNOLOGY AND REAL-TIME CUSTOMER
DATA ANALYTICS.
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A HUB OF INTERACTIVE EXPERIENCES
STORES ARE RE-IMAGINED TO BECOME A HUB OF INTERACTIVE, IMMERSIVE EXPERIENCES THAT CAPTURES THE
EMOTIONS OF THE BRAND AND ENHANCES CONSUMER INTERACTION.
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PORTLAND OMNI-EXPERIENCE WHEEL
PHYSICA L
PEO PLE
PA RALLEL
W EB
VIRTUA L
STORIES
OFFER
S&
SER
VIC
ES
PRO
GRA
MIN
G
FORMATS
CHANNELS
& PLACESDATA FULFILLMENT
LO
YALT
Y T
RA
NSA
CTI
ON
DIA
LOGUE
& IN
TERACTIO
N
& PLATFORMS
EXPERIEN
CE
BRAND
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RETAILING IN AN ALWAYS – CONNECTED WORLD
• Next-generation retailers must enable customers to interact and engage with their business seamlessly across whatever channel and device they want to.
• It’s not about physical stores versus online; it’s about creating and integrated retail ecosystem and Omni-channel strategy.
• Empower retail staff to deliver a smarter service, improve the customer experience and, ultimately, increase sales.
• Seize the opportunities to disrupt, innovate and integrate technology to meet the needs of future customers and to future-proof your brand.
• Deliver a personalised experience for the customer that gives them added value and generates loyalty.
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THANK YOU
Terna JiboHead of Strategic InsightsPortland DesignStrategic Insights [email protected]@Jibosan@PortlandDesign