Against a backdrop of seismic shifts in our retail landscape, Christian Davies, Executive Creative Director, Americas at FITCH took the audience on a global tour of the major trends that will be the norm by the time we’re ringing in the New Year of 2020. Emerging trends are mapped against new shopper behaviors and the rise of Gen Z – set to be the largest group of shoppers globally by 2020 – and by new realities of retail operations, language and purpose. This presentation was given at Globalshop in Las Vegas on March 26th, 2015.
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
1.
2. Generous Brands
Serious Business of Play
Joy of Shopping
GenZ
Retail’s New Reality
Experience Signatures
Must Sees
Quarterly trend reports
Kantar Retail/PWC Retail 2020
Where we got our thinking:
24. Both millenials and GenZ believe
strongly in the importance of
good citizenship.
78%
would
recommend
a
company
seen
as
such
74%
would
be
proud
to
be
associated
with
it
71%
say
they
would
be
loyal
to
such
a
business.
Source:
MSL
Future
of
Business
Citizenship
Report,
2014
25. On a Macro level this trend will
influence the products and services
retail brands choose to provide.
Example:
CVS
26. It will drive the way we present
those products in our stores.
Example:
Original
Unverpackt
27. And will even lead to decisions
around the types of stores
we decide to build.
Example:
Walgreens
28. It will push us to continue to
explore how the act of buying
can be a force for good.
Example:
Toms
29. And to explore the part that retail
can play to truly make a difference
30.
31. On a Micro level stores won’t just
be located in communities they
will be woven into their fabric.
Example:
CityTarget
32. ”On average, CityTargets generate
double the sales per square foot of
larger Target stores.” Source:
USA
Today,
2015
33. This is indeed the new Seattle, the
post-WaMu Seattle. Here, on Second
and Union, you have the feeling that
downtown is beginning to rise.
The Seattle Stranger, August 2012
Example:
CityTarget
34. “Our stores are integral parts of
the neighborhoods we
are joining”
N e i l
B l u m e nt h a l ,
C o -‐ C h i e f
E xe c u t i v e ,
Wa r b y
Pa r ke r
38. Generous Brands
Wearing your heart on your sleeve…
In a world where consumers are becoming increasingly aware of
‘mean’ brands it was time to begin researching the concept of
generosity.
Generous brands are those who show more of a heartbeat, take
the first step and display a genuine understanding of their
customer needs.
This is a long way from 2 for 1 deals and bonus points, but rather a
tone of voice and general personality that encourages consumers
to warm to their offer and become advocates.
39. By 2020…
We believe shoppers will
absolutely want to know what
retailers care about.
How will acting as a “generous
brand” define the future
for stores?
40. Stores in 2020 will take
many forms.
And ideas like “one size fits
all” will seem archaic.2
41. “Retailers will have to rethink their
scalable ―one size fits all approach.
Any retail strategy must include a plan
to fit the ever-diverging needs of the
US shopper.”
Source:
Kantar
Retail/PWC
Retailing
2020
Report,
2014
42. We predict far fewer retail brands
by 2020. But far more variety.
58. By 2020…
We believe the concept of
“engineered diversity” won’t just
be the norm, it will be mandatory.
The only question will be: what
formats, forms and expressions
make the most sense?
59. 3The ways in which we
speak to shoppers will
shift dramatically.
61. Only 5% of consumers in the
US & UK currently believe big
businesses are being
transparent enough.
Source:
Cohn
&
Wolfe
Oct,
2013
62. “By 2020, apps will proactively inform a shopper
regarding specific issues with products or retailers upon
entering brick-and-mortar stores or websites.
Managing and manipulating information (rumor control),
will be more of an issue than ever as flash truth reports
are distributed more frequently.
Brand management by 2020 will need to develop a host
of new skills, tools, and communication modes, both
nimble and innovative, than are typical today.”
Source:
Kantar
Retail/PWC
Retailing
2020
Report,
2014
65. everything’s coming up
spring
$50 everyday
liz claiborne handbag
$12 february
women’s gold toe sock 6-pack
$18-$20 everyday
misses’ bisou bisou swimwear
$75 everyday
men’s nike shoes
$17 everyday
juniors’ arizona shirt
$12 february
men’s st. john’s bay polo
$15 february
misses’ made for life jacket
$30 february
twin comforter set
$20 everyday
juniors’ olsenboye blouse
$130 everyday
rachael ray 10-pc. cookware set
$14-$20 everyday
floppy hat or thong sandal
$14 everyday
mixit bracelet
$20-$25 everyday
men’s j. ferrar shirt or tie
$4 everyday
home expressions bath towel
$
everything’s coming up
spring
$50 everyday
liz claiborne handbag
$12 february
women’s gold toe sock 6-pack
$18-$20 everyday
misses’ bisou bisou swimwear
$75 everyday
men’s nike shoes
$17 everyday
juniors’ arizona shirt
$12 february
men’s st. john’s bay polo
$15 february
misses’ made for life jacket
$30 february
twin comforter set
$20 everyday
juniors’ olsenboye blouse
$130 everyday
rachael ray 10-pc. cookware set
$14-$20 everyday
floppy hat or thong sandal
$14 everyday
mixit bracelet
$20-$25 everyday
men’s j. ferrar shirt or tie
$4 everyday
home expressions bath towel
everything’s coming up
spring
$50 everyday
liz claiborne handbag
$12 february
women’s gold toe sock 6-pack
$18-$20 everyday
misses’ bisou bisou swimwear
$75 everyday
men’s nike shoes
$17 everyday
juniors’ arizona shirt
$12 february
men’s st. john’s bay polo
$15 february
misses’ made for life jacket
$30 february
twin comforter set
$20 everyday
juniors’ olsenboye blouse
$130 everyday
rachael ray 10-pc. cookware set
$14-$20 everyday
floppy hat or thong sandal
$14 everyday
mixit bracelet
$20-$25 everyday
men’s j. ferrar shirt or tie
$4 everyday
home expressions bath towel
The good news?
Ours won’t be the loudest, or
most important voice at all.
.
67. And 2020 will be all about
dialogue not broadcast
25%
A d v e r t i s i n g
70%
S t r a n g e r s
w i t h
p ro d u c t
e x p e r i e n c e
90%
F r i e n d s w i t h
p ro d u c t
e x p e r i e n c e
Source:
Edelman
Trust
Barometer,
2014
80. “Leading retailers will be classified by
those that are the best
conversationalists, along with
communicating a secure and self-
confident image to their consumers.”
Source:
Kantar
Retail/PWC
Retailing
2020
Report,
2014
81. By 2020…
How will this manifest itself in
store?
We see a co-authored narrative
delivered with the impact of a tweet,
the interest of a pin, and the emotional
pull of a post.
91. Dominant platforms and
conventions around retail out of
store will have evolved and will
be widely embraced and adopted.
Retail brands en-masse will be
adept at managing and
supporting these channels.
But one problem will still exist
96. These concepts had the logistics,
infrastructure and tools in place
and the support of backers with
deep pockets.
We believe they lacked continuity
in their in store experience and
that will need to be our biggest
focus in the future.
97. By 2020…
What percentage of our in-store
media will be dedicated to
driving “continuity”?
How can we finally make the
physical store enhance our OOS
activities?
98. 5By 2020 the entire concept
of convenience and value
will shift.
99. Convenience for the new guest
will not be defined in traditional
terms of time and ease.
101. We believe the highest currency
for these new consumers will be
RELEVANCE.
102. 89% of millenials want
personalization when they
visit stores, but only 18% see
it from retailers today.
Source:
Vibes
Marketing
Personalization
Report,
2013
103. The customer is free interact
with the retailer on their own
terms.
Face to face
Direct/Email
Print
Television
Online
MobileCall Centre
Loyalty
E-commerce
Review
Advice and Support
Search
Social
Bricks and Mortar
Consumer
4
3
1
2
5
1 2
3
Shopper centric path to purchase.
How they want to buy, not how
we want to sell.
104. A shift from locating products to
locating the best products for me.
Example:
Forever21
-‐
ClosetSOS,
2014
105. And using technology to bring a
relevant experience in-store.
Example:
Klepierre
-‐
Inspiration
Corridor
106. A new service paradigm – where
the guest is the focus, not the sale
Example:
Bonobos
–
Guideshops
107. In 2013, the overwhelming reason
shoppers changed brands was
poor customer service (66%). In
almost every case (88%) the
situation could have been saved,
but wasn’t.
Source:
Accenture
Global
Consumer
Pulse
Survey,
Nov
2013
114. Foot traffic is down.
N o v / D e c F o o t Tr a ff i c
40 Billion Visits
30
20
10
2010 2011 2012 2013
1 7 . 6 B i l l i o n
Source:
The
Wall
Street
Journal,
2014
115. The sky is fricking falling.
N o v / D e c F o o t Tr a ff i c
40 Billion Visits
30
20
10
2010 2011 2012 2013
1 7 . 6 B i l l i o n
Source:
The
Wall
Street
Journal,
2015
2014
116. There are now less than 50% of
the warm bodies in US retail
stores during the biggest
shopping season of the year than
were there 5 years ago.
How many will there be in our
stores 5 years from now?
117. Only in stores delivering truly
unique experiences do we see
increased visits and footfalls.
119. The 19-year commercial Web
experiment has shown; you can't hold
attention for very long, can't offer a
point of view, can't control the
experience, and, in a sense, never
own your audience — at best, it's a
fleeting, utility-like relationship.
Source:
Michael
Wolff,
USA
Today,
2013
120. Stores re-imagined around unique,
defensible branded experiences may
well be the biggest change over the
next 5 years.
And tomorrow’s shopper craves these
experiences.
125. An Experience Signature is a distinct
collection of brand led moments,
totally unique in combination from
one brand to the next.
126. A retailer’s Experience Signature lies
at the heart of why we choose one
store over another.
They are the things retailers become
known for.
They are the reasons we come back
for more.
141. By 2020…
We believe the brands who are
thriving will be the ones who have
crafted the strongest Experience
Signatures.
And are well on the road to redefining
a bright future for physical stores.
142. If you’d like to know more…
www.fitch.com
www.slideshare.net/FITCH_design
153. FITCH thinks of Seamless as a
palette of touchpoints
Physical: The tangible – from objects that can be touched to
settings that can be experienced
Human: Dynamic interactions – with individuals,
employees and social groups
Digital: Electronic Tools – technologies that talk to
everyone, or just talk to me
P
H
D
154. 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
159. The Holy Grail of Seamless is true
omnichannel retail
multichannel
crosschannel
omnichannel
Shopping using different channels
Several channels, same purchase
Simultaneous use of channels and seamless
delivery between them
160. To achieve that a Holy Grail we
have to know what it is…
Crosschannel done well or with more finesseOmnichannel is not:
Omnichannel is:
Continuous Retail:
Interconnectedness between touchpoints everywhere
and anywhere
Perceiving all things and creating a true
CONTINUITY of experience