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Is Retail Dead?
- 1. www.engageconsultants.com facebook.com/engagetheexperts twitter.com/shopperexperts Is retail dead? Toby Desforges Founder and Managing Partner - engage
- 2. Asians love shopping online
- 3. An online Asia is changing the retail landscape
- 4. Online is having a huge impact on retailers
- 5. But retail is the biggest business on the planet 600 650 700 750 800 850 900 950 1000 1050 1100 2000 2010 Billions Top 10 retailer's sales 0 50 100 150 200 250 300 350 400 450 2000 2010 Billions WalMart's sales
- 6. And we still love shopping in stores
- 9. Who we are is changing
- 10. Who we are is changing
- 11. This creates some major challenges for manufacturers Develop powerful consumer brands Drive retail distribution
- 12. And its creating a completely new marketing model Create desire to consume the brand Maximise every opportunity to purchase the brand Motivate retailers to support the brand
- 13. In this model „consumer marketing‟ is being replaced by „Total Marketing‟
- 14. Find out more in “The Shopper Marketing Revolution” “For those on the fast track of modern business (The Shopper Marketing Revolution) is a must read.” Paco Underhill Author of Why We Buy: The Science of Shopping “Invaluable to the careers of very many of the marketing professionals in the industry." Herb Sorensen Author of Inside the Mind of the Shopper Available now on Amazon!
Notas del editor
- Broadband and logisitcsUS sales on line cyber Monday, black Friday versus t-malAsia internet users 1 bn – 44% of the worlds internet usersSize of middle class 320billion – 10 time northamericaExpect Asia to be the largest e-commerce market on the planetNielsen surveyApparel 37%Travel 30%Phone 26%Softeware 29%Food 26%Beauty 25%66% percent say shop on only online stores
- Setting up a free storeT-mall versus real mall360 buy versus SuningYihoadian and Wal Mart
- TravelBooksMusic and VideoGeneral merchanisersNext grocery? – Amazon will be the worlds largest by 2020Pretty soon you have to conclude that online is gradually killing retail
- 60 plus million retailers globallyBiggest single employer on the planet and one of the biggest single sources of employment14tr in global retail salesTop 10 doubling in size in a decadeBiggest of them all grows nearly 3 times – is this all going to come to end? - better hope not!
- How many have you shopped online in the last week?How many have you shopped in a real store in the last week?Groceries – average Asian shops 3 times a weekLets look at the facts – how many shop online?China 6Taiwan 2Korea and Singapore 1Rest 0WalMart – 10bn online What about other stuff – Orchard road - shoppingWe’ve not stopped going to stores – are we likely to?
- Image of BiGDaft to assume that online sales won’t take a significant share – they will, but equally daft to expect retail is going to die outIt Is changing:We shop more local (freq down in hypers)We shop more for specialtiesWe shop everywhere
- King CanuteDebenhams UKEBay in the high streetCalled Multi-channel or Omni channel (creating a seemless and personalised connection between shopper and retailer wherever they shop)Greater specialisationGreater diversificationDeaperpersonalisationAn end to big boxes
- Consumers to shoppersUsed to be all about consumers – some still think you areUsed to be you could target messages – today its not so easy.Beer and old spice
- ZMOT versus FMOTFact is now we are all shoppers (in as far as marketers should be concerned)Shoppers have the economic power to change consumption behavior
- 70 years of retail symbiosisA marketing model built on consumers and retailersA marketing mix built on a-c-t-rAn entire relationship model built on buying influence in-store with a mamoth infrastructureAnd a really big opportunity – 200bn wasted every year
- Traditional model is cause it misses out the shopper3 customers – still need consumers (no use no sale)Still need retailers cos not everyone wants to buy direct so you have to create an way of working5 –steps model