Rob Pettit (Director of Client Services, North America @ FITCH) shares thoughts on the changing landscape of shopping around the world at Innovation CAMP 2013.

1. THE JOY OF
SHOPPING
IT’S ALL IN THE
MIND
MARCH 22, 2013

2. FITCH is a Global Design Consultancy
Influencing the World Around You by
Translating Brand
Into Consumer
Experience

3. 14 Studios
9 countries

4. Innovation CAMP The Joy of Shopping
the ways we shop
now are different

5. Innovation CAMP The Joy of Shopping
and they
always will be

6. Innovation CAMP The Joy of Shopping
$963 BILLION OF
PACKAGES ON
DOORSTEPS crazy change, business stock market, tsunamis
earthquakes, housing sales, not to mention that big
moon thing...
and for many it’s too
late to respond

7. Innovation CAMP The Joy of Shopping
consumers have
found their “joy in
shopping” – now it’s
time for retailers and
brands to catch up

8. Innovation CAMP The Joy of Shopping
Asian Paints

9. Innovation CAMP The Joy of Shopping

10. Innovation CAMP The Joy of Shopping
BOLD
THINKING
…a store that doesn’t sell anything

11. Innovation CAMP The Joy of Shopping
Sales increase of 35%
in adjacent stores

12. Innovation CAMP The Joy of Shopping
Sales conversion up
over 20%

13. Innovation CAMP The Joy of Shopping
A seamless shopper journey
Digital Magazine iPad app
Decorating App Facebook sharing ‘at home’ samples

14. Innovation CAMP The Joy of Shopping
SIMPLE
SPLINTERED
SEAMLESS

15. Innovation CAMP The Joy of Shopping
SIMPLE
SPLINTERED
SEAMLESS
Linear and Location based

16. Innovation CAMP The Joy of Shopping
We had shops…
we had stores

17. Innovation CAMP The Joy of Shopping
we had catalogues

18. Innovation CAMP The Joy of Shopping
and shopping with your
phone…

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SIMPLE
SPLINTERED
SEAMLESS
Fractured and Formidable

20. Innovation CAMP The Joy of Shopping
$960 billion in sales in 2013

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Bar Codes
but it’s not just online

22. Innovation CAMP The Joy of Shopping
in less than 18 months all phones sold
will be smart

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and it’s not just phones

24. Innovation CAMP The Joy of Shopping
And we trust complete strangers
more than brands or retailers

25. Innovation CAMP The Joy of Shopping
SIMPLE
SPLINTERED
SEAMLESS
Consistent and Co-ordinated

26. IN STORE
OUT OF STORE
ONLINE

27. DREAMING
EXPLORING
LOCATING

28. Innovation CAMP The Joy of Shopping
Shopper Mindstates
Dreaming Exploring Locating
Purchase intent in the Specific product or
No specific purchase intent
category service
Being inspired Browse easily Easy to find
Learning More Useful
Having fun information reminders
Narrow choices Reassurance

29. Innovation CAMP The Joy of Shopping
Shopper Mindstates
Locating
Specific product or service
Easy to find
Useful
Retailers reminders
Reassurance
focus here
and service these needs
well.

30. Innovation CAMP The Joy of Shopping
Shopper Mindstates
Exploring
Purchase intent in the category
Browse easily
More
information
We should Narrow choices
also begin
looking here
…more than we do

31. Innovation CAMP The Joy of Shopping
Shopper Mindstates
Dreaming
No specific purchase intent
Being inspired
Learning
Having fun
…and here
as this is where we can
build connections

32. Seamless Retail Planning Matrix
Innovation CAMP The Joy of Shopping
DREAMING EXPLORING LOCATING
In-Store
Out of
Store
On Line

33. Innovation CAMP The Joy of Shopping
SIMPLE
SPLINTERED
SEAMLESS: IKEA

34. Innovation CAMP The Joy of Shopping

35. Innovation CAMP The Joy of Shopping
INSTORE OUT OF STORE ON LINE

36. Innovation CAMP The Joy of Shopping
Play Areas Showrooms Marketplace Restaurant Warehouse
Demos
Small Touches
INSTORE

37. Innovation CAMP The Joy of Shopping
Catalogue Cookbook / Pop ups Launches Events
Kitchen Brochures
OUT OF STORES

38. Innovation CAMP The Joy of Shopping
Website Apps Kitchen Planner Advice Facebook AR App Desktop
ONLINE

39. Innovation CAMP The Joy of Shopping

40. Innovation CAMP The Joy of Shopping

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42. Innovation CAMP The Joy of Shopping

43. Innovation CAMP The Joy of Shopping
THE JOY
OF SHOPPING
STUDY
Summer, 2012

44. Innovation CAMP The Joy of Shopping
We talked to…
7,130 shoppers
7 countries
China, India, Russia, USA, UAE, UK, Brazil

45. Innovation CAMP The Joy of Shopping
Shoppers of three retail categories…
Fashion
Electronics
Grocery

46. Innovation CAMP The Joy of Shopping
We studied shopping…
Involvement
Satisfaction
Channel preferences
Performance gaps

47. Globally, enthusiasm for shopping
is alive and well
42%
11%
Involvement:
Global Average
cross-category
47%

48. There is significant room for
satisfaction improvement in the U.S.,
especially
in grocery
D I ST RE SS ED DI SA PP OI N TE D IN D IF FE RE N T H A PP Y O VE R JO YED
GROCERY 2% 4% 46% 44% 4%
ELECTRONICS 2% 4% 30% 55% 9%
FASHION 3% 11% 26% 50% 10%
0% 20% 40% 60% 80% 100%
MEASURE: Typical emotions when shopping

49. Shoppers across the world still
prefer physical stores the most
In-store 54%
On Web 30%
Mobile App 13%
Social Media 7
7%

50. The U.S. is no exception
Digital is a becoming a dominant force.
STORE MOST IMPT WEBSITE MOST IMPT MOBILE APP MOST IMPT SOCIAL MEDIA MOST IMPT
GROCERY 63% 31% 6% 4%
ELECTRONICS 48% 49% 8% 6%
FASHION 73% 14% 5% 4%
US Data
Q: Thinking about how you prefer to shop, which of the following are important for a retailer to have?
FITCH | December 5, 2012

51. The happiest shoppers prefer
multi-channel shopping
STORE WEB MOBILE SOCIAL
100%
90%
86% 86% 86%
80%
73%
70% 70% 70% 71%
67 %
66%
60% 60% 59%
50% 49%
40%
30%
20%
10%
0%
GROCERY ELECTRONICS FASHION
US Data
Q: Thinking about how you prefer to shop, which of the following are important for a retailer to have?
Q: How do you typically feel when shopping for <CATEGORY>, where 1 means distressed and 5 means overjoyed?

52. Demand for DEL experiences is even
greater among multi-channel shoppers
Imagining the Ideal:
Level of Dreaming,
Exploring and Locating
Shoppers Expect in their
85% 82% ‘Ideal’ Experience
DREAMING EXPLORING
69% 70%
DREAMIN G EXPLORING
79%
LOCATING
69%
LOCATING
AVERAGE MULTI-CHANNE L
SHOPPER SHOPPER
Global Data
Multi-channel shopper defined as those who prefer Online, Mobile, Social channels

53. Innovation CAMP The Joy of Shopping
“Brick-and-mortar stores
are expected to shift from
a transactional model to an
experiential one in which
the virtual world enhances
the customer and brand
experiences.”
-Deloitte’s Store 3.0 Survey: The Next Evolution, September 2011

54. Innovation CAMP The Joy of Shopping
Stores vs. Digital?
Stock vs. Experience Digitized, Extended Shelf
Static & Un-Personal Hyper-Personal
Convenience in Location Buy-Anywhere Convenience
Trust in Brands Trust in Voices
Retailer Owns Brands People Own Brand

55. Innovation CAMP The Joy of Shopping
The Seamless Future
will Complete not Compete
Enhanced Experience
Adaptive & Augmented
Hybrid Shopper
Voices Amplify Brands
People Become the Brand

56. 3 SEAMLESS
INNOVATIONS

57. Innovation CAMP The Joy of Shopping
Intelligent In-Store Destination
KRAFT| iFOOD ASSISTANT Source: Intel

58. Innovation CAMP The Joy of Shopping
Intelligent Shelf Labeling
Source: Intel

59. Innovation CAMP The Joy of Shopping
Smart Carts
SK TELECOM| SMART CART– Source: engadget.com

60. Thank you
Rob Pettit
Director, North America Client Service
rob.pettit@fitch.com
White Paper
www.fitch.com/the-joy-of-shopping-its-all-in-the-mind