RETAIL INNOVATION: A STRATEGIC PERSPECTIVE

FUTURELAB

1. GET ON A PLANE TO LEARN AND NETWORK

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2. IMPORT – SKILLS, IDEAS, FORMATS

FUTURELAB

3. SECURE AND TRAIN THE BEST PEOPLE

4. INNOVATE LIKE ONLY ROMANIANS CAN

COPY MODIFY CREATE

Introduce global formats that already exist

Modify existing concepts to better match local needs

Develop new concepts, targeting specific local segments and needs

DEGREE OF INNOVATION

FUTURELAB

Quiz: Which % of innovations fail?

97%FUTURELAB

Why Customer Centric?

REMARKABLE

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Apple Retail 2001Sorry Steve, Apple Stores Won’t Work

(Business Week)

Apple Retail 2004: Fastest retailer ever to reach the

$1 billion mark a year

Apple Retail 2006Fastest retailer ever to reach

$1 billion/quarter mark

Apple Retail 2007Sales per sq.meter = $ 30,176

(as comparison: BestBuy = $10,643)

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HOW DID THEY DO IT?

Watch video on http://www.youtube.com/watch?

v=m-Y7vZMEPrU

DRIVERS FOR RECOMMENDATION IN ICT

Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008 FUTURELAB

• Careful segmentation and focus on students, educators and creative professionals (even now consumer appeal broadens)

• A retail experience differentiated by service before, during and after sales (Genius bar)

• Scenario or lifestyle Marketing & Sales vs. Product « What do you want to do ? »

• Style & design

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THE RESPONSE

Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008

•No commissions

•Team bonuses

•Focus on experience

•Fashion & design people to run computer retail

•Hire for personality, attitude and customer fit … train the rest

•High identification: Tshirts, iPod, discounts, …

•3 week immersion at start of job ONLY on customer relationship skills and understanding customer needs/lifestyle

• All product training is online (except geniuses)

• Training on store computers or borrowed laptop

Ron JohnsonTarget

MickeyDrexlerThe Gap

BREAKING ALL THE RULES

FUTURELAB

13,8

6,5

24,3

8,46,2

0,8

5,5

HP Dell Apple Xerox Sun NCR Pitney Bowes

Revenue Growth % 2007 vs 2008Source: Fortune Magazine, May 5,2008

RESULTSFUTURELAB