Aaron Shields, EMEA Strategy Director, shares new rules for a new reality. This presentation was first made at Spree 2016.

1. FITCH10 NEW RETAIL RULES

2. FITCH is the world’s leading brand & retail design consultancy
New York
Los Angeles
Columbus
Atlanta
Phoenix
London
Moscow
Paris
Beijing
Shanghai
Singapore
Dubai
Mumbai
Delhi
1972
FOUNDED
14
STUDIOS
8
COUNTRIES
+350
PEOPLE
WPP
GROUP

3. 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020
RETAIL
DESIGN
COMMUNICATIONS
TECH DEV
IA/UX
MASTER PLANNING
BRAND DEVELOPMENT
INDUSTRIAL DESIGN
TRENDS & INSIGHTS
SERVICE DESIGN
ANALYTICS
DIGITAL CONTENT

4. Not here to talk about…

5. Urbanisation Customisation
AutomationConnectivity
Rise of…

6. Or…

8. How do we adapt?

9. New rules for a new reality

10. #1

11. Start
thinking
people
Stop
thinking
consumers

12. Online is an unforgiving…

13. The moment choice
was offered, people
started choosing

14. Shift our perspective

15. CONSUMERS…. PEOPLE….
Are victims of marketing plans Call the shots
Respond in predicable ways Change behaviours frequently
Fit neatly into segments Have mosaic identities
Rationally buy Emotionally buy
Follow linear journeys Do not follow any prescriptive path
Can always buy more goods Seek experience more than goods

16. Remedy:
Spend 1 day/month
speaking to people

17. #2

18. More about
solving
behaviours
Less about
targeting
segments

19. Segments  brand
Behaviours  experience

20. No longer (just) about:
Small / Medium / Large

21. Exploring
Purchase intent
in the category
Locating
Specific product
or service
Dreaming
No specific
purchase intent
Being inspired
Learning
Having fun
Browse easily
More information
Narrow choices
Easy to find
Useful reminders
Reassurance
Dreaming Exploring Locating

23. #3

24. Start
earning
gratitude
Don’t count
on loyalty

25. Rewarding visits
v rewarding a visit

26. Forbes 25 most disruptive companies
1/ Uber 2/Airbnb 3/ Facebook 4/ Red Bull
5/ Snapchat 6/ Alibaba 7/ Netflix
8/ UnderArmour 9/ Instagram 10/Apple
11/ CVS 12/Taylor Swift 13/ Google
14/ Warby Parker 15/ Chipotle
16/ 72andSunny 17/ SoulCycle
18/ Rent the Runway 19/ Houzz 20/ Waze
21/ DraftKings 23/ Coke 23/ Eataly
24/ Birchbox 25/ VirginAmerica

27. What have you done for me lately?

28. #4

29. Start
creating
richness
Stop
pushing
products

30. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950 2015
Services
Products
Services
Products
Share of household spending USA

31. SKUs
-30%
Sales
+30%

32. Product as a memento of experience

33. #5

34. Start
encouraging
dwell
Stop
chasing
spend

35. >1hr 1-2hrs 2-4hrs 4+hrs
NPS
80
70
60
50
40
30
Happy
people stay
longer and
spend more
Circles represent relative spend £
Source: Business Insider, Intu Research, 2012

36. Every 1% increase in dwell
increases spend by 1.3%

37. Rise of shopping resorts

38. Traditional
10%leisure
Fast-foodcourt
Cinema
Conventional
25-35%leisure
Casualdining
3+attractions
Shoppingresorts
>35%leisure
8+attractions
Manyflagships
Retail Retail
RetailLeisure
Leisure

39. #6

40. Lead on
Experience
Signature
Don’t lead
on Omni-
channel

41. Blinded by Omnichannel?

42. COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES

43. GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES

44. GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
PARITY
Retailer A Retailer B

45. GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
Duplication
Retailer A Retailer B

46. BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES

47. BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
Difference

48. BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
Signatures

49. #7

50. Be more
stage
director
Be less
architect

51. CapEx has dictated
pace of change

53. People now demand
change in ‘internet time’

54. K11 Shanghai

55. & other stories

56. Core platform
remains fixed while
new experiments are
brought in and out

57. #8

58. Start
connecting
innovations
Stop
innovating
by division

59. Innovation comes from teams

60. Some more than others…

61. Start-up Google Everyone else
Single team Nodal teams Divisional teams

62. We can’t all be Google

63. Use what you have
(smartly)

66. #9

67. Do
experiment
quickly
Don’t
perfect
slowly

68. Constantly scan trends

70. More than 1 version
of the future

72. Speed & adaptability are the
only remedy to disruption

74. #10

75. Start
knowing
Stop
guessing

76. Online has GoogleAnalytics
Retail has….?

77. FITCH AIR
Analytics & Interaction at Retail

78. Startthinkingpeople
Moretargetingbehaviours
Startearninggratitude
Startcreatingrichness
Startencouragingdwell
Leadonexperiencesignature
Bemorestagedirector
Startconnectinginnovations
Doexperimentquickly
Startknowing
Stopthinkingconsumers
Lesstargetingsegments
Don’tcountonloyalty
Stoppushingproducts
Stopchasingspend
Don’tleadonOmnichannel
Belessarchitect
Stopinnovating bydivision
Don’tperfectslowly
Stopguessing

79. www.fitch.com
www.slideshare.net/FITCH_design
https://uk.linkedin.com/in/aaronshields