The Future of Retail - Marketing and Merchandising Trend Report

The Future of RetailSeptember 2012 | Marketing and Merchandising

Marketing and Merchandising | September 2012 2

Manage the ambiguous future with strategic foresight

Daily blog posts Monthly magazines Quarterly trend reports Must-read books Anyone who works at the intersection of technology and people is swimming in information This data smog can make deciphering the implications of the latest tech and social developments difficult One solution is strategic foresight which can help you make sense of emerging trends and clearly evaluate your options for the future Itrsquos a tool to manage risk when facing ambiguity in the marketplace

Strategic foresight doesnrsquot predict the future but it does help prepare you for it by envisioning a number of different yet possible future states in the market landscape 10+ years from now These future states are often described as a set of scenarios and they emerge from an analysis of current trends So as a simple example the increasing popularity of pop-up retail spaces combined with the high adoption of mobile devices could develop into a future filled with transient storefronts This scenario would be made possible due to the minimal wired infrastructure required for information and payment

The rapid uptake of technology means that our social lives cultural experiences policies regulations ecological landscape and business models are increasingly intertwined Through its very design strategic foresight is built to accommodate complexity by considering trends from a multi-dimensional perspective

Steps of strategic foresight

Trend scan

Identify trend drivers

Evaluate critical uncertainties

Future scenarios

Strategic implications

Action plan

Monitor trends

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7


Why Retail Foresight

The Nurun Strategic Foresight team has launched a strategic foresight initiative to articulate the future of business-to-consumer (ldquoB2Crdquo) retail and commerce and explore implications for Canadian and US retailers The scenarios we generate will give our retail clients the toolkit necessary to start imagining (and preparing for) the possible futures in the marketplace

The first of seven steps in the strategic foresight process involves trend scanning The trends we capture will be published as a series of trend reports that focus on five domains of importance to both online and omni-channel retailers

This is the first of five trend reports and it looks at retail through the lens of marketing and merchandising Next will be a report on business models followed by transactions and payments analytics and emerging technology platforms The culmination of trend scanning and subsequent phases will inform future scenarios in our final stratgic foresight report For more information you can follow the project on Nurunrsquos blog Digital for Real Life or subscribe to our email list futureofretailnuruncom


Trend scan



Future scenarios


Action plan

Monitor trends

Marketing and Merchandising

Business Models

Transactions amp Payments

Analytics

Emerging Technology Platforms

Preparing for the Future of Retail A Strategic Foresight Report

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2

3

4

5

6

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Introduction

Over the last five years new forms of technology have radically altered augmented and disrupted how Canadian and US retailers approach many fundamental aspects of their business New devices such as tablets and smartphones along with an explosion of social media channels have meant that retailers are able to market and merchandise their products in a number of novel ways Technology is both a blessing and curse however as it has introduced new competitive pressures It has also significantly altered buying behavior forcing retailers to react and adapt to a smarter and more informed consumer

Retailers continue to struggle with the fact that consumers are taking advantage of new technologies to locate research and compare products thanks to a trend toward Social Product Discovery Consideration and Evaluation In order to better attract and entertain their customers retailers have started to take inspiration from film and print magazines in a trend of Product Placement Morphs Into Content + Commerce

Retailers also need to make sure they reach customers wherever they are seamlessly integrating and supporting the shopping experience across multiple channels This might mean creating digital catalogues for the iPad so customers can browse and purchase products directly from their tablet or allowing customers to order laundry detergent through a smartphone app that can scan items on a wall poster thanks to The Integrated Expansion of the Omni-Channel Storefront trend

US and Canadian retailers are also trying to reconcile the promises of The New Geography of Merchandising trend with the reality that e-commerce is not yet borderless Duties shipping fees and supplier markup have meant significantly higher prices for Canadians who wish to buy products from US retailers be it in-store or online

New e-commerce developments while providing many benefits for both consumers and retailers can come at a personal cost as the Irsquoll Trade my Privacy for a $5 Coupon trend demonstrates Retailers are reacting in very different ways to the shifts in how consumer data is being collected and utilized

Some aspects of retail remain constant however Emerging technologies are being used by retailers to deliver century-old marketing and merchandising strategies like coupons while bulk discounts and private labeling have new-

Defining Our Terms

ldquoYou have to be really agile and flexible in how you deliver information to people and give them choices There was a time years ago when retailers and packaged goods companies dictated what consumers could have Now itrsquos the other way aroundrdquo

Joanna TrackFounder and CEO of eLUXE

Given our expertise in the realm of digital retail we defined retail marketing to include

bull Product findability and discoverabilitybull Recommendation and comparison toolsbull Social commercebull Issues relating to consumer privacy

Our examination of merchandising trends focused on

bull Pricingbull Localization of assortmentbull Product presentation


found relevance as demonstrated by the Sophisticated Frugality trendCanadian and US retailers will need to contend with these trends if they wish to remain successful in the coming decade This report offers a thought- provoking look at each of the six key trends mentioned above along with a series of provocative questions that relate to each trend

A complete strategic foresight report that incorporates these six marketing and mer-chandising trends along with key retail trends relating to business models value ex-change analytics and emerging technology platforms will be released in early 2013

Social Product Discovery Consideration and Evaluation

Product Placement Morphs Into Content + Commerce

The Integrated Expansion of the Omni-Channel Storefront

The New Geography of Merchandising

Irsquoll Trade my Privacy for a $5 Coupon

Sophisticated Frugality

The Nurun Strategic Foresight team found six key trends relating to marketing and merchandising

1

2

3

4

5

6


Trend


1 3 54 62

1

Trend

Want to find the perfect gift for a friendrsquos birthday Rather than taking yourbest guess as you wander around a local mall you can now utilize your friendrsquos Facebook data to generate a more relevant list of suggestions Thatrsquos the premise of a mobile app called Karma which helps people discover consider and evaluate products and services for purchase Through Facebook integration Karma is able to send out birthday reminders for close friends and provide personalized gift ideas Karma along with other social discovery and recommendation sites such as LYST Glimpse and Curisma speak to a consumer desire for social approval and belonging

At the same time a number of visual discovery tools have emerged to make the process of online browsing more efficient and visually pleasing Many of these tools borrow inspiration from Pinterest an image sharing website that allows users to pin their favourite images onto unique digital boards

Fancy for example is an online store that combines elements of blogs and magazines with a wish list function while Polyvore encourages users to act like magazine editors and curate collections of their favourite fashion finds Sites like Lockerz meanwhile allow customers to act as brand ambassadors a function traditionally performed by celebrity endorsements

A March 2012 Bizrate Insights Online Consumer Pulse report found that 32 percent of online consumers have purchased a product after seeing it on a social image sharing site such as Pinterest Juxtapost Discoveredd Fancy orPolyvore (Silver Tan amp Mitchell 2012) These sites tap into the long-standing popularity of in-store window-shopping but eliminate the need for consumers to visit multiple websites in order to recreate the same experience online

For Canadian and US retailers this trend presents an opportunity to move beyond the use of on-site dynamic product recommendation and merchan-dising tools such as Certona RichRelevance and PredictiveIntent Some retailers are starting to offer personalized assortments and storefronts including Amazonrsquos ldquoMy Storerdquo (Amazoncom Inc 2012) While these tools are frequently used to boost online conversion they can alienate privacy-conscious customers when used improperly as discovered by omni-channel retailer Urban Outfitters (Singer 2012) In the same way retailers are work-ing to find the right approach to retargeting and remarketing two techniques that involve displaying online ads for products from websites consumers have recently visited (Hof 2012)

ldquoCollective consumers have great power Communities now form around dissatisfac-tion and they instantly scale and become really influential and powerful And they often appear out of the vaporrdquo

Joe JackmanCEO of Joe Jackman Brand Inc

ldquoThe big challenge is to strip away the marketing hype and spin and find the commercial utility in word-of-mouth re-ferrals A friend recommend-ing to a friend is still one of the most powerful sales driv-ers But getting beyond the technobabble can be toughrdquo

Dr Paul MarsdenEditor of Social Commerce Today


1 3 54 62Trend

Meanwhile social discovery and recommendation sites such as Krush (Walker 2012) and retailers such as Modcloth (Amed amp Company 2012) are collecting customer product preferences and post-purchase feedback This data is then used to create new products and better respond to shifts in supply and demand for exist-ing items Clothing company Betabrand has gone so far as to encourage customers to submit new clothing ideas for community consideration (Kavilanz 2011) These user-submitted ideas are then turned into new Betabrand products if sufficient consumer interest exists (Kavilanz 2011)

Looking ahead retailers should stop viewing their online catalogues as walled- gardens and look for ways to attract new customers by showcasing a curated selection of products across a variety of niche social discovery sites Otherwise visual discovery tools might augment their e-commerce capabilities leading to increased retail competition Retailers also need to treat customer feedback as a source of future product innovation and incorporate this feedback into their merchandising analytics so they can be more nimble in adjusting their catalogue assortments

Are you ready to distribute your products not only through your own e-commerce site but also Pinterest and Fancy Are you prepared to let your customers make suggestions for new products Would you be willing to put ldquotalkingrdquo price tags on your in-store merchandise so that customers could instantly connect to an external social recommendation tool through their smartphones

FORWARD THINKING


Trend


1 3 54 62

2

Trend

The print magazine industry has struggled to stay relevant over the last decade as consumers turn to blogs such as Fashionista Gizmodo and ApartmentTherapy as their preferred source of information about new products At the same retailers are starting to realize that engaging lifestyle content integrated within an e-commerce environment can be a very compelling method of speaking to consumers The mixture of content and commerce also provides new opportunities for creative merchandising approaches visual narratives and brand curation

This helps to explain why the humble email newsletter remains a viable wayto market new products used by companies as varied as the Gilt Groupe and Sephora Some retailers including Zappos publish a monthly magazine of original content to promote their products and reinforce their overall brand image

Meanwhile online luxury retailers including eLUXE MR PORTER and IWC provide specific fashion and lifestyle advice alongside their products This advice resembles the how-to style guides found in legacy print publications such as Vogue or Esquire but their e-commerce platforms allow for a more seamless and rapid process of discovery and purchase This type of approach represents the latest evolution of the advertorial

More sophisticated versions of this trend involve shoppable online videos By embedding their clothing line within a music video SSENSE was able to put a fresh spin on the traditional fashion catalogue (FKi Azalea Diplo 2012) This video served to demonstrate products in a relevant lifestyle context and entertained younger consumers who may be tired of traditional marketing approaches

In the same way short films created and produced by companies such asBMW and Chanel showcases sophisticated narratives with brand and product integration A recent example is Karl Lagerfeldrsquos multi-part branded film The Tale of a Fairy (2012)

In many cases Canadian and US retailers can take advantage of existing content (blog posts online video) to generate newsletters or produce magazine-like experiences on their websites A successful blend of content and commerce might require retailers to think like a publisher and develop an editorial calendar so that fresh engaging content can be created and published on a regular schedule



Is your company ready to hire editorial staff in order to create a retail catalogue that leads with editorial and offers embedded e-commerce options indistinguishable from a content-rich online magazine Is your brand robust enough to create captivating stories

FORWARD THINKING


Trend


1 2 54 63

3

Trend

Mobile technology makes it possible to offer time-strapped consumers the convenience of purchasing products from almost anywhere In response a number of unique sales channels have emerged including QR code enabled virtual storefronts Canadian online retailer Wellca used the public walls of a transit corridor to display photos of dozens of products that consumers could purchase by pointing at specific items with a smartphone app eBay has also created a 247 shoppable storefront window display in New York that utilizes QR codes (Kats 2011)

The audio search technology provided by Shazam meanwhile allows market-ers to ldquomagicallyrdquo send TV audiences to special mobile microsites based on audio recognition tools (Hockenson 2012) And locative technologies such as geo- fencing allow retailers to define a specific geographic area surrounding their store within which customers receive push notifications for promotions via apps or text messages (Burby 2012)

Retailers are also trying to anticipate consumersrsquo purchasing needs from with-in social media and tablets CoffeeTable is an iPad app that compiles multiple retail catalogues and adds an e-commerce option This allows customers to not only browse but also purchase products at their convenience

As these and other options emerge retailers are being careful to integrate new channels with existing approaches in order to provide a seamless customer experience Since customers shop by brand not channel retailers can no longer segment brick-and-mortar and online operations if they wish to avoid redundancies and conflicts of interest Merging channels makes it possible to offer a more unified brand message a more seamless shopping experience and a more consistent approach to assortment pricing and promotions

Best Buy Canada for example is opening two new pilot stores in the Fall of 2012 with only 5000 square feet of retail (instead of the average 32000 square feet) (Wexler 2012) Every aisle will include a tablet that allows customers to view and order from Best Buyrsquos complete inventory for a given product category (Wexler 2012) UK retailer Marks and Spencer has also been aggressively pursuing an omni-channel shopping strategy with a unique store format that recently debuted in Cheshire England (Wood 2012) The new location connects the in-store and online shopping experience through free Wi-Fi iPad-equipped sales assistants that can access additional inventory and giant touchscreen kiosks that allow customers to browse and order online items (Wood 2012)

This shift in approach has been described as ldquoomni-channel retailrdquo and will require merging disparate channels that include websites mobile devices gaming consoles and physical stores (Rigby 2011) For example embedded RFID tags are being used in some New Balance stores to trigger additional product information through a video display when customers place the sneaker on a hotspot (Swedberg 2012) The move toward omni-channel re-tail also includes aligning in- store and online operations through ldquobuy online

ldquoHistorically Canadian retail investment in technology has involved a relatively long cycle The trouble today is that the technology in the consumerrsquos hands is better [than the retailerrsquos] and itrsquos refreshing fasterrdquo



1 2 54 63Trend

pickup in-storerdquo ldquobuy online return in-storerdquo and ldquobuy in-store ship to home optionsrdquo Canadian retailers have been slower to adapt to such innovations as compared with their US counterparts

Increased retail integration requires an ability to provide equivalent levels of customer experience in-store and online For example online retailers are trying to ensure that customers have access to 360-degree product views and online video reviews to compensate for the lack of tactility (Charlton 2010) At the same time retailers are trying to develop integrated CRM perspectives that generate a 360-degree view of their customers including cross-channel order histories However most retailers are still encountering difficulties inte-grating customer data across all channels as they lack a sophisticated master data management system (IBM nd) Without investing in appropriate infrastructure customer information tends to get ldquotrappedrdquo within complex information systems that include business performance metrics in-store and online transaction data promotional data and social media listening and trend data

The challenge for Canadian and US retailers is to provide a seamless retail experience through consistent brand experiences amidst increasing complex-ity and customer expectations regardless of the touch point Omni-channel retail requires a significant investment in infrastructure and training which can be a major barrier to entry This approach to retail also necessitates a will-ingness to bridge e-commerce operations with physical retailing through the use of cross- functional teams with both digital and in-store expertise This will allow retailers to eliminate the current silo-based approach that devel-oped before and after the dot-com crash of March 2000 (Rigby 2011)

ldquoAre bricks and mortar dead No But people want choicerdquo

Joanna TrackFounder amp CEO of eLUXE

Have you considered adding an extended aisle or virtual backroom functionality to your retail operation so that in-store and online customers enjoy a wider range of products Is your brand voice connected and consistent across all channels Can your customers purchase an item directly from your bus shelter ad by simply taking a photo of it

FORWARD THINKING


Trend


1 2 53 64

4

Trend

The erasure of borders that e-commerce makes possible means that retailers can theoretically sell their products to anyone anywhere in the world The reality is more complicated however and geography continues to assert its influence on merchan-dising strategies in both obvious and subtle ways

Despite their proximity to the United States many Canadians have been disap-pointed to discover that online retailers such as West Elm are unable to sell and ship specific products to Canada (Williams-Sonoma Inc 2012) This is especially confus-ing since both companies have physical stores located in Canada

Along with a more limited product selection Canadians face higher prices for the same merchandise as compared with the US which can range anywhere from 10 to 50 percent (Beltrame 2012) This price gap has become more noticeable over the last decade thanks to an influx of US retail chains arriving in Canada Within a week of opening their first store in Canada in August 2011 J Crew had to adjust their shipping fees and lower their online prices through the elimination of duty fees after The Globe and Mail reported significant price disparities between the US and Canadian versions of the website (Strauss 2011)

Technology has made the price gap between the US and Canada nearly transparent and helps to explain the rise of cross-border shopping through both online orders and physical trips to US destinations (Strauss amp Grant 2012) Black Friday for example has now become a more popular Google search term than Boxing Day in Canada (Oliveira 2011)

Within their own borders national retailers in Canada and the US are carefully considering geography in order to localize their in-store product assortment and reflect the needs of regional customers By offering products based on seasonal weather patterns and region-specific cultural preferences retailers are better able to serve their local markets and manage their overall inventory (Schouten 2010 Deale 2012) The same cannot be said for e-commerce retailers although this is slowly changing Columbia Sportswear has recently begun initiatives to localize site messag-ing product assortment pricing and promotions (Florletta 2012)

As a Canadian retailer how are you preparing to compete with the wide online product assortment and streamlined cross-border shipping policies of large American retailers such as Nordstrom and Bloomingdales Have you consid-ered fortifying your online presence with robust e-com-merce operations How might you compete on uniquely branded customer experiences instead of price

FORWARD THINKING


Trend


1 32 4 65

5

Trend

Many consumers have developed complicated math in order to maximize their return on loyalty programs such as Best Buyrsquos Reward Zone Shoppers Optimum Safewayrsquos Club Card and AIR MILES (LoyaltyOne Inc) The sav-ings and rewards these programs offer arenrsquot technically free however as they cost consumers some of their privacy

Canadian and US retailers meanwhile are also finding it necessary to develop complicated math to cope with the era of ldquobig datardquo An increasing number of retailers are focusing on data collection and analysis in order to more effectively personalize their marketing appeals and strengthen customer loyalty in the process Target for example is now able to offer relevant cou-pons to women in the early stages of their pregnancy based on their purchas-ing habits (Duhigg 2012)

While many customers appreciate this type of personalization they may also feel that the information security practices of these companies are murky In most cases privacy is no longer a default option but something that must be configured by consumers

Despite some negative associations regarding corporate approaches to priva-cy consumers remain quite willing to gamble with their personal information if they believe there is a clear benefit in doing so For example a November 2011 survey found that nearly two-thirds of consumers do not trust online companies such as Facebook or Google with their personal information (eMarketer 2012)

Despite this skepticism the value that consumers receive from these same companies is high enough to overlook or ignore issues of trust The popularity and growth in Facebook usage may be due in part to a human desire for com-munity belonging Social media also allows people to satisfy their personal curiosity about the lives of friends and family As the importance of lifestyle marketing continues to grow Canadian and US retailers will need to rethink critical aspects of data collection and pri-vacy policies in order to generate relevant and targeted marketing campaigns One approach to privacy is to better reward customers for the data they provide or offer a higher degree of transparency about how their consumer data will be used

ldquoPeople are smarter than we give them credit for They will give up their personal infor-mation but only if they get something in returnrdquo


Want to gain access to the private habits of influential customers Be prepared to openly barter for this information

FORWARD THINKING


Trend


1 32 4 5 6

6

Trend

The coupon made its debut in the late 1880s and the basic idea behind it has changed very little in the intervening 120 years While saving money will probably never go out of style it is surprising that many successful new technologies and services are being used to deliver coupons bulk discounts auctions and other timeless pricing tactics

At the same time the dynamic pricing made possible by current CRM systems means that retailers can offer promotions that reward and enhance loyalty as these offers are based on a customerrsquos purchasing history Getting customers to look beyond simple price reductions requires a long-term edu-cation strategy as demonstrated by the difficulties encountered with JCPen-neyrsquos recent Everyday Low Price Strategy (Mohammed 2012)

Retailers must continue to experiment with new discount options and thebest way to deliver these deals SavingStar for example is a mobile app that generates coupons based on a customerrsquos cluster of loyalty card information Discounts are applied automatically at the point of sale via the loyalty card (Van Grove 2011) Decide helps consumers predict the best time to purchase major appliances based on historical discount data and recently added a Consumer Reports style recommendation component Groupon meanwhile has made bulk purchasing a popular option for retailers who want to reach new customers Its success has inspired a host of competitors including Team-Buy (Buyers Unite Inc) LivingSocial and AllDailyDeals

Consumers have also become more vocal about product pricing due to the popularity of social media The result of this trend are co-buying sites such as Buyapowa where the price of a specific product drops based on the number of confirmed purchasers and Netotiate a site that allows consumers to name their price for a wide range of consumer goods

Sophisticated frugality refers not only to the use of technology-enabled discounts but merchandising strategies that developed in response to the economic downturn of 2008 This has included a focus on developing more robust lines of private label products (Nielsen Wire 2010) The ability of retailers to develop private label products that can compete on both quality and value has helped encourage the recent emergence of luxury private labels Examples include Loblawrsquos PC Black Label launched in October 2011 (Scott-Thomas 2012) Duane Readersquos DR Delish launched in April 2010 (The Dieline 2010) and Walmartrsquos Our Finest launched in November 2011 (Kwon 2011)

ldquoThe ability to compare value instantly via mobile has created an amplification of comparison It has real impact on sales and the brand relationshiprdquo



1 32 4 5 6Trend

The growing importance of private labels is reflected in the fact that both IBM (ldquoConsumer-Centric AnalyticsThe Foundation for Competitive Advantagerdquo Waldron 2011) and Accenture (ldquoThe Waiting is Over Why Retailers Have to get Better at Private Label nowrdquo 2011) have conducted extensive research into this increasingly critical aspect of retail merchandising

Canadian and US retailers considering a discount strategy need to decide whether they want to pursue a price-based strategy over a brand-driven approach (or vice-versa) However dynamic pricing and an inventive mix of private label products can help retailers split the difference between value and brand approaches Brands also have an opportunity to reframe what frugality means by recognizing that consumers may prefer to be smart with their money rather than simply being cheap

Are you ready to think beyond the coupon Are you will-ing to barter with customers who expect to be able to name their own price for your products How might a line of luxury private label products reinforce or augment the key strengths of your retail brand

FORWARD THINKING


Whatrsquos Next

Methodology

Our next report will look at retail trends through the lens of business models fol-lowed by transactions and payments analytics and emerging technology platforms Once these trend reports are complete we will move to the next phase of strategic foresight identifying the driving forces underlying the trends Those driving forces will inform future scenarios leading to the last phases in this strategic foresight ini-tiative to articulate the future of B2C retail and commerce

For more information you can follow the project on Nurunrsquos blog Digital for Real Life If you have any questions or want to receive an email reminder when our next trend report is published please contact futureofretailnuruncom

The Nurun Strategic Foresight team performed a horizon scan using the ldquoSTEEPVrdquo framework to locate current and emerging trends and signals in the following areas Social Technological Economic Environmental Political and Cultural Values This scan generated over 100 relevant trends

These signals and trends were then clustered and sorted into six overarching trends Each of these overarching trends required the support of three to five strong signals or examples Some trends had an excess of signalsmdashin those cases excess signals were catalogued for future inclusion or consideration

Sincere thanks to the merchandising and marketing experts who graciously shared their insights with us for this report

Joe JackmanCEO of Joe Jackman Brand IncJoe leads a 60-person multi-discipline team of lsquoretail reinventionistsrsquomdashresearchers analysts management consultants marketers creative directors writers designers and activation managersmdashfocused on accelerating value creation and disrupting the status quo Joe Jackman Brand is the first company to combine in-depth analytics and strategy with creative vision design marketing and the hands-on shaping of all touch points of customer experience

Dr Paul Marsden Editor of Social CommerceTodayPaul is a social psychologist and market researcher specializing in digital and social media influencer marketing and reputation management He works with brands and organizations to develop effective digital marketing and PR strategies

Joanna TrackFounder amp CEO of eLUXEJoanna has over 15 years experience in marketing business strategy branding and advertising In 2004 she started Sweetspot the ultimate destination for Canadian women to stay in the know about whatrsquos new and fabulous in their city In 2011 she founded eLUXE Canadarsquos online shopping destination offering the best edit of global contemporary brands through engaging consumable content

The Nurun Strategic Foresight team will continue to monitor and collect new developments in marketing and merchandising to inform subsequent strategic foresight work especially scenario development


About NurunNurun is a global design and technology consultancy that works with some of the worldrsquos most innovative companies We create products and services for the connected world through a combination of human insight new technology and smart thinking Clients include Adidas BBVA Bouygues Telecom Coca-Cola Electronic Arts General Electric Google The Home Depot Tesla Motors Sony and Walmart Headquartered in Montreacuteal and with 12 offices across North America Europe and Asia Nurun has multidisciplinary teams of more than 1200 anthropologists designers strategists and software engineers Nurun is a wholly owned subsidiary of Queacutebecor Meacutedia Inc one of Canadarsquos largest tele- communications and media providers

Meet the Nurun Strategic Foresight Team

Ryan BiggeAs a Content Strategist at Nurun Ryan Bigge combines over 12 years of experience as a freelance journalist with a passion for design thinking and interactive art His writing has been published in the New York Times Magazine Report on Business and the Toronto Star Ryan recently spoke at SXSW Interactive about analog souvenirs and physidigital trends

Jen ChowAs Nurunrsquos Design Strategist Jen utilizes a diverse set of consumer research techniques to uncover insights and shape new opportunities for various retail clients Jen recently co-authored a report on the future of consumer-to-business payments that focused on the Canadian banking industry as part of her work in OCAD Universityrsquos Master of Design Foresight amp Innovation program Jenrsquos work fuses her eclectic background in accounting and finance with her keen interest in sociocultural trends and technology

Kira LevineAs Senior Retail Strategist at Nurun Kirarsquos focus is on translating consumer needs into viable retail solutions bridging both in-store and online capabilities She brings a unique blend of passion for retail with over nine years of experience in category and product management She holds a Bachelorrsquos degree in Retail Management and an International MBA

Audrey CarrAs Vice President Strategy Audrey guides Nurunrsquos cross-functional teams in identifying framing and solving customer-centric opportunities across our omni-channel retail clients including Sears Canada The Home Depot Canada Acklands-Grainger and the LCBO She also leads the development and evolution of Nurun Torontorsquos strategic capabilities in design research design amp retail strategy analytics and interaction design


Sources Accenture (2011) The Waiting is Over Why Retailers Have to get Better at Private Label Now Retrieved from http wwwaccenturecomus-enPagesinsight-retailers-better- private-labelaspx

AllDailyDealsca Inc (2012) All Daily Dealsca ndash View all Daily Deals and Group Buys in one Place Retrieved June 14 2012 from httpwwwalldailydealsca

Amazoncom Inc (2012) Amazoncom Help Recommendations Retrieved September 11 2012 from httpwwwamazoncomgphelpcustomerdisplay htmlie=UTF8ampnodeId=13316081

Apartment Therapy Inc (2012) Apartment Therapy Retrieved July 30 2012 from httpwwwapartmenttherapycom

Beltrame J (2012 April 24) Retailers Blame Multinational Suppliers for Canada-US Price gap The Canadian Press Ottawa Retrieved from httpwwwtheglobean-dmail comreport-on-businessinternational-businessretailers- blame-multinational-suppliers-for-canada-us-price-gap article4102212

Best Buy Inc (2012) Best Buy Reward Zone Retrieved July 30 2012 from httpswwwbestbuyrewardzoneca

Betabrandcom (2012) Betabrand ndash Pants Jackets Hoodies Bags amp Fabrications Retrieved August 20 2012 from httpwwwbetabrandcom

Burby J (2012 June 11) Building Relevance With Geo-Fencing ClickZ Retrieved from httpwwwclickzcom clickzcolumn2182814building-relevance-geo-fencing

BuyaPowa Ltd (2012) BuyaPowa ndash Social Commerce Tools to Turn Buyers Into Brand Ambassadors Retrieved August 20 2012 from httpwwwbuyapowacomBuyers Unite Inc (2012) TeamBuy Retrieved June 14 2012 from httpwwwteambuyca

CBC News (2012 August 10) 6 US Retailers set to Invade Canadarsquos Malls CBC News Retrieved from httpwww cbccanewsstory20120809us-retail-canadahtml

Certona Inc (2012) Certona Retrieved July 30 2012 from httpwwwcertonacom

Charlton G (2010 November 10) Why Online Retailers Need Product Videos ndash Econsultancy Econsultancy Blog Retrieved from httpeconsultancycomcablog6834- why-etailers-need-product-videos

CoffeeTable (2012) The Leading Retail Catalog app for iPad Retrieved July 3 2012 from httpcoffeetablecom

Curisma Inc (2012) Curisma Retrieved July 30 2012 from httpcurismacom

Deale S (2012 January 25) 5 Ways Chain Retailers are Localizing Their Stores ndash InStore Trends In-Store Trends Retrieved August 20 2012 from httpwww instoretrendscomindexphp20120125localization- chain-retail-store-trends-merchandising

Decide (2012) How it Works Decide Retrieved August 20 2012 from httpswwwdecidecomhow-it-works


Discoveredd (2012) Discoveredd ndash Discovereddcom Retrieved August 20 2012 from httpwwwdiscoveredd com

Duhigg C (2012 February 16) How Companies Learn Your Secrets The New York Times Retrieved from httpwww nytimescom20120219magazineshop-ping-habitshtml

eLUXEca (2012) eLUXE Retrieved from httpwwweluxe ca

eMarketer (2012 January 24) How Marketers can Manage the Privacy Problem eMarketer Retrieved from httpwwwemarketercomArticleaspxR=1008793ampecid=a65 06033675d47f881651943c21c5ed4

Facebook Inc (2012) Facebook Retrieved July 30 2012 from httpwwwface-bookcom

Fancy (2012) Fancy Retrieved June 13 2012 from http wwwthefancycom

Fashionista Inc (2012) Fashionista Fashionista Retrieved July 30 2012 from httpfashionistacom

FKi Iggy Azalea amp Diplo (2012) I Think she Ready VIDEO ndash The Worldrsquos First Interactive Shoppable Video ndash SSENSE Retrieved July 3 2012 from httpwwwssensecom videoiggy-azalea-diplo-fki-i-think-she-ready

Florletta A (2012 March 9) Columbia Sportswear Partners With PFSweb for Global E-Commerce Expansion Retail TouchPoints Retrieved August 20 2012 from http wwwretailtouchpointscomshopper-engagement1441- columbia-sportswear-partners-with-pfsweb-for-global-e- commerce-expansion-

Gilt Groupe (2012) Gilt Groupe Retrieved July 10 2012 from httpwwwgiltcom

Gizmodo Inc (2012) Gizmodo Retrieved July 30 2012 from httpgizmodocom

Glimpse Inc (2012) Glimpse Retrieved July 30 2012 from httpappsfacebookcomthefind

Goodreads Inc (2012) Goodreads Goodreads Retrieved June 13 2012 from httpwwwgoodreadscom

Google Inc (2012) Google Retrieved July 30 2012 from httpswwwgoogleca

Groupon Inc (2012) Groupon Deal of the day Find Great Deals on fun Things to do Retrieved June 14 2012 from httpwwwgrouponcom

Hockenson L (2012 May 3) Shazam The Secret to Better TV Engagement Re-trieved July 3 2012 from http mashablecom20120503shazam-tv-engagement

Hof R (2012 July 11) Ad Tech Funding Rolls on With $15 Million for Retargeter AdRoll Forbes Retrieved from httpwwwforbescomsitesroberthof20120711ad- tech-funding-rolls-on-with-15-million-for-retargeter-adroll

IBM (nd) IBM Single View of Customer for Retail IBM Smarter Planet ndash Retail Performance Analytics Retrieved September 11 2012 from httpwwwibmcom smarterplanetusenconsumer_advocacynextsteps solutionB584923C34249D42html

IWC Inc (2012) IWC Schaffhausen ndash International Watch Company IWCCOM Retrieved July 30 2012 from httpwwwiwccomen


Juxtapost (2012) Juxtapost ndash All Your Favorite Things Side-by-Side Retrieved August 20 2012 from httpwww juxtapostcom

Karma Science (2012) Karma ndash How it Works Retrieved August 1 2012 from httpgetkarmacomhow-it-works

Kats R (2011 October 24) EBay Lets Mobile Consumers Shop Via Interactive Windows at 247 Storefront Mobile Commerce Daily ndash Software and technology Retrieved from httpwwwmobilecommercedailycom20111024 ebay-lets-mobile-consumers-shop-via-interactive- windows-at-247-storefront

Kavilanz P (2011 November 17) Two new Products a Week $2 Million in Sales Retrieved August 20 2012 from httpmoneycnncom20111117smallbusiness betabrand_products

Kwon N (2011 November 23) Walmart Launches High-end Private Label Line Canadian Grocer Retrieved from http wwwcanadiangrocercomtop-storieswalmart-launches- high-end-private-label-line-10351

Lagerfeld K (2012) Chanel ndash Cruise 2012 ndash The Tale of a Fairy the Short Film by Karl Lagerfeld Part 2 ndash Exclusive The Tale of a Fairy the Short Film Retrieved from httpwww youtubecomwatchv=Zz5x_4fbVuUampfeature=youtube

LivingSocial Inc (2012) The Best Daily Deals ndash LivingSocial Retrieved June 14 2012 from httpwwwlivingsocial comcanadacities53-toronto

Lockerz (2012) Top Finds From Friends amp Celebrities ndash Lockerz Retrieved Sep-tember 11 2012 from http lockerzcom

LoyaltyOne Inc (2012) AIR MILES Retrieved July 10 2012 from httpswwwairmilescaarrowHome

LYST Inc (2012) LYST Retrieved from httpwwwlystcom

Mohammed R (2012) JC Penney Ditch the Risky Pricing Strategy Harvard Business Review Retrieved July 17 2012 from httpblogshbrorgcs201205jc_penney_ ditch_the_risky_prichtml

MRPORTER (2012) MR PORTER ndash The Online Retail Destination for Menrsquos Style Retrieved July 10 2012 from httpwwwmrportercom

Netotiate Inc (2012) Netotiate ndash Online Shopping for Electronics Computers Cameras Watches amp More Retrieved August 20 2012 from httpwwwnetotiate com

Nielsen Wire (2012 August 25) The Global Staying Power of Private Label Retrieved August 20 2012 from http blognielsencomnielsenwireconsumerthe-global- staying-power-of-private-label

Oliveira M (2011 November 23) Black Friday Canadians Eye Cyber Monday Deals The Globe and Mail Retrieved from httpwwwtheglobeandmailcomtech-nologyblack- friday-canadians-eye-cyber-monday-dealsarticle4252268

Pinterest (2012) Pinterest ndash Home Retrieved July 10 2012 from httppinterestcom

Polyvore (2012) Polyvore Retrieved May 16 2012 from httpwwwpolyvorecom

PredictiveIntent Inc (2012) PredictiveIntent Retrieved July 30 2012 from httpwwwpredictiveintentcom


RichRelevance Inc (2012) RichRelevance Retrieved July 30 2012 from httpwwwrichrelevancecom

Rigby D (2011) The Future of Shopping Harvard Business Review Retrieved July 17 2012 from httphbr org201112the-future-of-shopping

Safeway Inc (2012) Safeway Club Card Retrieved July 30 2012 from httpwwwsafewaycasaveclubcard_savings asp

Schouten C (2012 November 27) Retail Giants Hope to Cash in on Local Flavor Indianapolis Business Journal Retrieved August 20 2012 from httpwwwibjcomretail-giants- hope-to-cash-in-on-local-flavorPARAMSarticle23662

Scott-Thomas C (2012 July 26) Canadian Private Label Makers Target Affordable Luxury Euromonitor Retrieved August 20 2012 from httpwwwfoodnavigator-usa comMarketCanadian-private-label-makers-target- affordable-luxury-Eu-romonitor

Sephora USA Inc (2012) Shop Makeup Fragrance Skincare amp More ndash Sephora Retrieved August 20 2012 from http wwwsephoracom

ShoppersDrugMartca (2012) Shoppers Drug Mart Optimum Program Retrieved from httpwww1shoppersdrugmart caenOptimumEarnaspx

Silver H Tan E amp Mitchell C (2012) Pinterest is not Only for Window Shopping Nearly 1 in 3 Buy Online Consumer Pulse Bizrate Insights Retrieved from httpbizrateinsightscomwp-contentuploads201204 VisualShoppingpdf

Singer N (2012 June 23) E-Tailer Customization Whatrsquos Convenient and Whatrsquos Just Plain Creepy The New York Times Retrieved July 30 2012 from httpwwwnytimes com20120624technologye-tailer-customization-whats- convenient-and-whats-just-plain-creepyhtml

Strauss M (2011 September 1) J Crew Backtracks on Higher Canadian Prices The Globe and Mail Retrieved from httpwwwtheglobeandmailcomglobe-investorj- crew-backtracks-on-higher-canadian-pricesarticle1360475

Strauss M amp Grant T (2012 June 4) Retailers Brace for More Cross-border Shopping Pain The Globe and Mail Retrieved from httpwwwtheglobeandmailcom report-on-businessretailers-brace-for-more-cross-border- shopping-painarti-cle2435077

Swedberg C (2012) RFID has Shoppers Running to New Balancersquos Store in Boston RFID Journal Retrieved from httpwwwrfidjournalcomarticleview9459

Target Inc (2012) Target Retrieved July 30 2012 from httpwwwtargetcom

The Dieline (2010 April 26) Duane Reade Private Label Retrieved August 20 2012 from httpwwwthedieline comblog2010426duane-reade-private-labelhtml

Van Grove J (2011 May 12) Hot Coupon app Automates Savings via Loyalty Cards Retrieved June 28 2012 from httpmashablecom20110512savingstar

Waldron P V (2011 November 1) Customer-Centric Analytics The Foundation for Competitive Advantage IBM Retail Industry Blog Retrieved from https www-304ibmcomconnectionsblogsretailentry novem-ber_1_2011_12_01_pm32lang=en_us


Wellca (2012) Virtual Store ndash Wellca - Canadarsquos Online Health Beauty and Skin Care Store Retrieved July 3 2012 from httpwellcavirtualstore

Wexler E (2012 August 28) Best Buy Canadarsquos Bold Plan to Stay 1 Strategy Retrieved from httpstrategyonline ca20120828best-buy-canadas-bold-plan-to-stay- 1ixzz25oNQDvjH

Williams-Sonoma Inc (2012) International Returns and Exceptions ndash West Elm Retrieved August 20 2012 from httpwwwwestelmcomcustomer-servicereturns-and- exceptionshtml

Wood Z (2012 September 2) Marks and Spencer Gambles on Bringing Internet age to the Shop Floor The Observer Retrieved from httpwwwguardiancoukbusiness2012 sep02marks-and-spencer-multichannel-shopping

Yin Sara (2012) Serious new Android Privacy Leak Demonstrated PCMAG Retrieved July 3 2012 from httpsecuritywatchpcmagcomgoogle291249-seri-ous- new-android-privacy-leak-demonstrated

Zappos ZN (2012) Zappos ZN Retrieved June 28 2012 from httpznappszap-poscom


Manage the ambiguous future with strategic foresight

Daily blog posts Monthly magazines Quarterly trend reports Must-read books Anyone who works at the intersection of technology and people is swimming in information This data smog can make deciphering the implications of the latest tech and social developments difficult One solution is strategic foresight which can help you make sense of emerging trends and clearly evaluate your options for the future Itrsquos a tool to manage risk when facing ambiguity in the marketplace

Strategic foresight doesnrsquot predict the future but it does help prepare you for it by envisioning a number of different yet possible future states in the market landscape 10+ years from now These future states are often described as a set of scenarios and they emerge from an analysis of current trends So as a simple example the increasing popularity of pop-up retail spaces combined with the high adoption of mobile devices could develop into a future filled with transient storefronts This scenario would be made possible due to the minimal wired infrastructure required for information and payment

The rapid uptake of technology means that our social lives cultural experiences policies regulations ecological landscape and business models are increasingly intertwined Through its very design strategic foresight is built to accommodate complexity by considering trends from a multi-dimensional perspective


Trend scan



Future scenarios


Action plan

Monitor trends

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Trend scan



Future scenarios


Action plan

Monitor trends


Business Models


Analytics



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Introduction







Defining Our Terms

















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FORWARD THINKING


Whatrsquos Next

Methodology







































































































Trend scan



Future scenarios


Action plan

Monitor trends


Business Models


Analytics



1

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Introduction







Defining Our Terms

















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Trend


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FORWARD THINKING


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Whatrsquos Next

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Introduction







Defining Our Terms

















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Whatrsquos Next

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Whatrsquos Next

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Whatrsquos Next

Methodology


































































































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Whatrsquos Next

Methodology


































































































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FORWARD THINKING


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6

Trend









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FORWARD THINKING


Whatrsquos Next

Methodology


































































































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3

Trend










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FORWARD THINKING


Trend


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4

Trend







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FORWARD THINKING


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Trend









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FORWARD THINKING


Whatrsquos Next

Methodology


































































































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FORWARD THINKING


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4

Trend







FORWARD THINKING


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1 32 4 65

5

Trend









FORWARD THINKING


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1 32 4 5 6

6

Trend









1 32 4 5 6Trend




FORWARD THINKING


Whatrsquos Next

Methodology


































































































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4

Trend







FORWARD THINKING


Trend


1 32 4 65

5

Trend









FORWARD THINKING


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6

Trend









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FORWARD THINKING


Whatrsquos Next

Methodology


































































































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5

Trend









FORWARD THINKING


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Whatrsquos Next

Methodology


































































































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Whatrsquos Next

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Whatrsquos Next

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Date post:	28-Jan-2015
Category:	Business
Upload:	nurun
View:	109 times
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