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FITCH 10 NEW RETAIL RULES
FITCH 10 NEW RETAIL RULES
FITCH is the world’s leading brand & retail design consultancy
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1972 FOUNDED
14 STUDIOS
8 COUNTRIES
+350 PEOPLE
WPP GROUP
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
Not here to talk about…
Urbanisation Customisation
Automation Connectivity
Rise of…
Or…
How do we adapt?
New rules for a new reality
#1
Start thinking people
Stop thinking consumers
Online is an unforgiving…
The moment choice
was offered, people
started choosing
Shift our perspective
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
Remedy:
Spend 1 day/month
speaking to people
#2
More about solving
behaviours
Less about targeting segments
Segments brand
Behaviours experience
No longer (just) about:
Small / Medium / Large
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
#3
Start earning
gratitude
Don’t count on loyalty
Rewarding visits
v rewarding a visit
Forbes 25 most disruptive companies
1/ Uber 2/ Airbnb 3/ Facebook 4/ Red Bull
5/ Snapchat 6/ Alibaba 7/ Netflix
8/ Under Armour 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/ Virgin America
What have you done for me lately?
#4
Start creating richness
Stop pushing products
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950 2015
Services
Products
Services
Products
Share of household spending USA
SKUs
-30%
Sales
+30%
Product as a memento of experience
#5
Start encouraging
dwell
Stop chasing spend
>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
Every 1% increase in dwell
increases spend by 1.3%
Rise of shopping resorts
Traditional
10% leisure
Fast-food court
Cinema
Conventional
25-35% leisure
Casual dining
3+ attractions
Shopping resorts
>35% leisure
8+ attractions
Many flagships
Retail Retail
Retail Leisure
Leisure
#6
Lead on Experience
Signature
Don’t lead on Omni-channel
Blinded by Omnichannel?
COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
PARITY
Retailer A Retailer B
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
GUEST COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
Duplication
Retailer A Retailer B
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
Difference
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
BRAND COMMS
WEB
STAFF
EVENTS
SOCIAL
TOOLS
SERVICES
STORES
Signatures
#7
Be more stage
director
Be less architect
CapEx has dictated
pace of change
People now demand
change in ‘internet time’
K11 Shanghai
& other stories
Core platform
remains fixed while
new experiments are
brought in and out
#8
Start connecting innovations
Stop innovating by division
Innovation comes from teams
Some more than others…
Start-up Google Everyone else
Single team Nodal teams Divisional teams
We can’t all be Google
Use what you have
(smartly)
#9
Do experiment
quickly
Don’t perfect slowly
Constantly scan trends
More than 1 version
of the future
Speed & adaptability are the
only remedy to disruption
#10
Start knowing
Stop guessing
Online has Google Analytics
Retail has….?
Start thinking people
More targeting behaviours
Start earning gratitude
Start creating richness
Start encouraging dwell
Lead on experience signature
Be more stage director
Start connecting innovations
Do experiment quickly
Start knowing
Stop thinking consumers
Less targeting segments
Don’t count on loyalty
Stop pushing products
Stop chasing spend
Don’t lead on Omnichannel
Be less architect
Stop innovating by division
Don’t perfect slowly
Stop guessing
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www.slideshare.net/FITCH_design
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