We are entering a new digital economy and to compete successfully in it, business processes, models and systems need to evolve. Those who do not adapt to these changes will not be successful.
Customers don't just want to 'buy stuff' anymore, they want a personalised service and experience that is relevant to their own wants and needs.
It's time to look to a future where online and offline shopping aren’t two separate business models. There will just be ‘shopping’ and it will be an integrated online and offline experience.
4. DIGITAL DARWINISM
4
We are entering a new digital
economy and to compete
successfully in it, business
processes, models and
systems need to evolve.
Those who do not adapt to these
changes will not be successful.
THE RETAIL REVOLUTION
5. DIGITAL DARWINISM
5
• Brian Solis is a digital analyst, anthropologist and futurist who studies
the effects of disruptive technology on business and society.
• He’s studying the way that people embrace technology, from social
networks to smartphones to intelligent appliances, and how that
contributes to the digital lifestyle that is now synonymous with
Generation Y - the Millennials.
• Some companies invest in new technologies without understanding
the culture, nuances and relationships that the user has within those
communities or how they use the devices.
THE RETAIL REVOLUTION
6. DIGITAL DARWINISM
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• They aren’t thinking about changing their work ecosystem to adapt
to new technologies - they are trying include new technologies within
the existing framework.
• Technology is and isn’t the answer to change, it’s the enabler.
http://www.briansolis.com/tag/digital-darwinism/
THE RETAIL REVOLUTION
9. THE LINES ARE BLURRING
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Due to these technological and
societal changes, the lines
between the physical and digital
retail channels are blurring.
Millennials just want to go
‘shopping’ - wherever and
whenever they feel like doing so.
THE RETAIL REVOLUTION
10. THE LINES ARE BLURRING
The majority of Chinese
consumers now choose a
digital channel as the first step
in researching retail products.
10
- PWC TOTAL RETAIL SURVEY 2015
THE RETAIL REVOLUTION
12. SHOWROOMING
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‘Showrooming’ occurs when a
shopper visits a store to check out a
product but purchases online, from
home or another location later.
Shoppers still prefer to see and touch the
merchandise they buy, but many items
are available at lower prices online.
THE RETAIL REVOLUTION
14. SHOWROOMING
Have you ever intentionally browsed products at a
store but decided to purchase online?
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- PWC TOTAL RETAIL SURVEY 2015
THE RETAIL REVOLUTION
16. SHOWROOMING
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‘Webrooming’ occurs when
consumers research products online
before going into the store for a final
evaluation and purchase.
This form of shopping is globally on the
rise and becoming more relevant to
consumers and retailers alike.
THE RETAIL REVOLUTION
17. WEBROOMING
Have you ever intentionally browsed products
online but decided to purchase them in-store?
17
- PWC TOTAL RETAIL SURVEY 2015
THE RETAIL REVOLUTION
19. MOBILE SHOPPING COMES TO TOWN
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Singapore-based online retailer ZALORA
opened a pop-up store in Causeway Bay
recently - an interesting move for an online
retailer who are looking to grow their
brand and sales with an O2O strategy.
Mobile is the bridge because of the ubiquity of
the devices among their wider customer base.
THE RETAIL REVOLUTION
20.
21. MOBILE SHOPPING COMES TO TOWN
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This ‘click-and-mortar’ approach is aimed
at easing local (Hong Kong) customers into
the notion of online shopping and the
e/m-com experience with an educational,
interactive and personable space.
THE RETAIL REVOLUTION
22. MOBILE SHOPPING COMES TO TOWN
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In the store, visitors are encouraged to
scan a QR code to download the ZALORA
app to their mobiles using the free wi-fi, for
an instant 20% discount.
THE RETAIL REVOLUTION
23. MOBILE SHOPPING COMES TO TOWN
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Shoppers can see, handle and try the
clothing on in the store but they don’t take
it home! They purchase it in the store via
the app and it is delivered to their home in a
couple of days.
THE RETAIL REVOLUTION
24. MOBILE SHOPPING COMES TO TOWN
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ZALORA are looking to a future where
online and offline shopping aren’t two
separate business models.
There will just be ‘shopping’ and it will be an
integrated online and offline experience.
THE RETAIL REVOLUTION
25. MOBILE SHOPPING COMES TO TOWN
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More than 80% of people visiting this
pop-up store have never shopped with
ZALORA before their visit.
75% had never even heard of the name before.
THE RETAIL REVOLUTION
27. MAGIC MIRRORS
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What if retailers focused on using
technology to ease customer pain
points and smooth out bumps in the
shopping experience, like trying to
flag down a salesperson while
undressed in a fitting room?
THE RETAIL REVOLUTION
28. MAGIC MIRRORS
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What if you took the best from a
mobile experience and brought it
into the store?
That’s what Rebecca Minkoff and the
eBay Innovations Lab have done.
THE RETAIL REVOLUTION
29.
30. MAGIC MIRRORS
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On a large wall mounted interactive
screen, customers can swipes
through collections and ‘looks’,
select the ones they like, request a
fitting room, and when it’s ready for
them they are notified by text.
THE RETAIL REVOLUTION
31.
32. MAGIC MIRRORS
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In the fitting room another mirror
allows the customer to choose
different lighting settings, ask for more
sizes and styles to be brought over,
select which pieces to buy, and confirm
their checkout with a sales associate.
THE RETAIL REVOLUTION
33. MAGIC MIRRORS
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Customers can also save collections
they didn’t buy to a personal profile
that will show what they have tried on
and what they bought - allowing the
store and Minkoff brand to tailor
recommendations and marketing
communications accordingly.
THE RETAIL REVOLUTION
34.
35. MAGIC MIRRORS
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Digitally capturing shopping
sessions can show what is
trending with customers in
different stores, allowing the
brand to immediately alter both
in-store and online marketing to
reflect those preferences.
THE RETAIL REVOLUTION
36. MAGIC MIRRORS
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So if they know that in New York
people are taking a lot of denim into
the dressing room, they can get
hyperlocal with their marketing and
change the imagery on the
interactive wall and email marketing.
THE RETAIL REVOLUTION
37. PHYSICAL RETAIL IS HERE TO STAY
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“People still want to use their five
senses, not just the one sense you
use when you’re doing e-commerce.
So physical retail, a showroom,
I think will never go away.”
- STEVE YANKOVICH
(eBay Head of Innovation)
THE RETAIL REVOLUTION
39. PERSONALISATION
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My likes and dislikes, wants and
needs are unique to my
personality and way I live my life.
Brands need to cater to this and start
personalising the experience, service
and offers accordingly.
THE RETAIL REVOLUTION
40. PERSONALISATION
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This is part of an actual email I get often
from my telco provider - Smartone. I am
a 40 year old, single caucasian male.
Why in the hell would I want to buy
anything to do with Hello Kitty?
I have been using them for 7 years and they
know NOTHING about me.
THE RETAIL REVOLUTION
42. PERSONALISATION
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What’s an even worse experience for me
as a customer is how hard they make it
to unsubscribe from their eDMs and
annoying weekly text messages.
THE RETAIL REVOLUTION
47. PERSONALISATION
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There are so many options for them to
choose from. Give them a bad experience
and they won’t just not come back, they
will tell everyone about it.
THE RETAIL REVOLUTION
48. PERSONALISATION
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So make sure it’s a good
experience, because they will
tell everyone about that too!
This is the ‘sharing generation’,
where positives and negatives
are amplified.
THE RETAIL REVOLUTION
50. GENERATION C - THE CONNECTED CONSUMER
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This year, people born between ’81 and ’96
are poised to become the new workforce
majority, and by 2025 it will be 75%.
THE RETAIL REVOLUTION
51. GENERATION C - THE CONNECTED CONSUMER
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It is the first fully social generation,
and social currency is more
important than ever as a result.
THE RETAIL REVOLUTION
52. GENERATION C - THE CONNECTED CONSUMER
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“With every day that passes, Gen
Y becomes far more important to
the economy than we can realise.
yet the gap between how Gen Y
communicates and connects and
how business, educators,
governments et al. approach
them is only widening.
- BRIAN SOLIS
THE RETAIL REVOLUTION
53. GENERATION C - THE CONNECTED CONSUMER
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THE RETAIL REVOLUTION
This generation are more likely to find love or
be dumped via text or their Facebook wall..
54. GENERATION C - THE CONNECTED CONSUMER
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59% of this generation update their social status in class
and watch TV with two or more connected devices
THE RETAIL REVOLUTION
55. GENERATION C - THE CONNECTED CONSUMER
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They believe that other consumers care more about their opinions
than companies do - that’s why they share their opinions online,
THE RETAIL REVOLUTION
56. GENERATION C - THE CONNECTED CONSUMER
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Millennials have high expectation of
themselves and their jobs and aren’t
as motivated by money as much as
previous generations were.
THE RETAIL REVOLUTION
57. I DON’T JUST WANT ‘STUFF’ ANYMORE
A NEW RETAIL EXPERIENCE
58. THE NEW RETAIL EXPERIENCE
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In the future of retail,
the consumer is king.
THE RETAIL REVOLUTION
59. THE NEW RETAIL EXPERIENCE
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If they don’t receive
exceptional customer service
they will go elsewhere.
THE RETAIL REVOLUTION
61. THE NEW RETAIL EXPERIENCE
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This demands a new retail
experience that feels less like a
‘path to purchase’ and more like a
first date that went really well!
It’s a journey to a relationship.
THE RETAIL REVOLUTION
62. THE NEW RETAIL EXPERIENCE
62
- LIQUID AGENCY ‘The Future of Retail’
THE RETAIL REVOLUTION
The Old Way The New Way
63. THE NEW RETAIL EXPERIENCE
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Every tactic must be executed in
the pursuit of getting to know the
customer, so that every message is
intriguing, appreciative and
continues to draw them into a
personalised brand experience.
THE RETAIL REVOLUTION
64. THE NEW RETAIL EXPERIENCE
64
THE RETAIL REVOLUTION
Separate the customer from their purchase.
The new retail model demands we think of
the customer journey in an entirely new way.
65. THE NEW RETAIL EXPERIENCE
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- LIQUID AGENCY ‘The Future of Retail’
THE RETAIL REVOLUTION
66. THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
Leverage the right technology.
Technology allows brands to court the
customer like never before - to learn
what they do and do not like.
67. THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
Share stories that inspire them.
Be there for them when they need
something - not when you think they
need something.
68. THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
It’s not about single sales.
Ignite and foster a long-term, mutually
beneficial and respectful relationship.
69. THE NEW RETAIL EXPERIENCE
69
THE RETAIL REVOLUTION
Relationships = revenue.
- LIQUID AGENCY ‘The Future of Retail’
71. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Retail success us about creating
GREAT experiences - just like dating.
How attracted would you be to a date who
just talked about themselves all night?
72. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
We need to start asking our
customers the right questions.
We need to be interested in them, learn
about them and then talk knowledgeably
about what is of interest to them.
73. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Every touch point along the
customer journey is an
opportunity to build a
relationship.
74. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Where, when and how often
brands interact with each
customer should be
thoughtful and meaningful.
75. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
What is said should give
them exactly what they
need in the moment.
76. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Create experiences that
are Relevant, Intimate
and Fun.
77. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Get to know the customer and
execute from that insight!
Don’t just blindly insert fancy
technology and tactics that may end
up hindering the experience
78. LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Remember this...
Like dating, too many calls are
just as bad as too few!
79. LET’S START DATING OUR CUSTOMERS
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(LIQUID AGENCY ‘The Future of Retail’)
THE RETAIL REVOLUTION