The Future of Shopping - Presentation

11

2008–2009

The New Consumer and the Era of Smart Consumption

22

What We’ll Cover

Evolution of the New Consumer

A Move Toward Conscientious Consumption

Update on Conscious Nourishment

Three Imperatives for Reaching the New Consumer

Image: Creative Commons/[email protected]

33

Primary Sources: 3 Global Studies

The Future of Shopping

Objective: Identify trends shaping retail category

Survey of 2,800 consumers in 4 markets: U.S., France, U.K., China

Momentum testing of 75–125 retail brands in each market

The Future of the Corporate Brand

Objective: Understand evolving role of corporation and consumer expectations of business

Survey of 1,850 consumers in 3 markets: U.S., U.K., France

The Future of FoodObjective: Uncover emerging

cues within food & beverage category

Semiotic analysis using proprietary Decipher tool

Sources: ERWW Prosumer Pulse, BETC Euro RSCG Consumer Intelligence, Euro RSCG NY Influencer Dinner, plus Yankelovich, SIAL, Mintel, etc.

44

Focus: The Evolving Consumer

Making smarter choices based on

online research and peer communication/support Making more

conscientious choices so

consumption doesn’t hurt

people or planet

Making more careful food choices in effort to satisfy twin pulls of

health and pleasure

Smarter

More Mindful

More Conscientious


55

I. Evolution of the New Consumer: Smarter, More Proactive, Better Informed

Images: Creative Commons/Charlie [email protected]; [email protected]

Smarter

66

The Internet Is Changing How People Shop…

I do lots of [consumer] research online

99% 88% 92% 92%

81% 76% 78% 81%

P:

O:

For major purchase decisions, my first step is usually the Internet

92% 94% 92% 88%

75% 71% 75% 71%

P:

O:

Even if I don’t make purchases online, the Internet is a very important part of my “shopping”

6% 17% 5% 25%

10% 22% 11% 21%

P:

O:

The Internet has had little to no impact on my shopping

88% 70% 84% 88%

67% 42% 65% 66%

P:

O:

How much do you agree with each of the following statements?Strongly/Somewhat Agree

Euro RSCG Future of Shopping Study

…and shifting power away from manufacturers/retailers and toward the consumer

Presenter

Presentation Notes

The impact of the Internet on retail isn’t just about online purchases. Virtually all prosumers and the vast majority of mainstream consumers go online to research purchases, compare prices, etc.—and that’s fundamentally affecting how they shop offline, as well. It’s shifting power away from manufacturers and retailers and toward the consumer.

77

Up Dramatically Since 2004–05

How much do you agree with each of the following statements?

Strongly/Somewhat Agree

For major purchase decisions, my first step is usually the Internet

92% 94% 92% 88%

75% 71% 75% 71%

P:

O: +4+17+36+27

+10+42+24 +7

Even if I don’t make purchases online, the Internet is a very important part of my “shopping”

99% 88% 92% 92%

81% 76% 78% 81%

P:

O:

+11

-6 +19

+16+1

+5 +9

+11



Comparison with data from ERWW’s 2004–2005 Prosumer Pulse study

Presenter

Presentation Notes

Compared with data from ERWW’s 2004–2005 Prosumer Pulse study, reliance on the Internet for consumer research has escalated dramatically—especially in the U.S. and France

88

Peer Reviews Permit More-Informed Choices—and Further Increase Prosumer Power

Write an online product or retailer review

Search for customer reviews while making purchase decisions

96% 96% 98% 97%

86% 79% 85% 87%

P:

O:

71% 72% 55% 80%

46% 53% 32% 61%

P:

O:

Please indicate your involvement with each of the following online activities

Do It Now

Use Consumer Reports or another consumer guide to help make decisions

Read consumer feedback/reviews before making purchase

91% 90% 87% 95%

79% 67% 72% 90%

P:

O:

78% 67% 80% 93%

64% 56% 63% 78%

P:

O:

How often do you do each of the following?

Frequently/Sometimes


Presenter

Presentation Notes

Large majorities in each market seek feedback from other consumers, and a majority of prosumers contribute their own reviews.

99

Prosumers Make Smart Use of Corporate Websites…

Request or download coupon or coupon code

77% 71% 82% 81%

64% 56% 66% 67%

P:

O:

Go to company’s website to arrange for service on product I own

52% 66% 43% 87%

36% 45% 33% 67%

P:

O:

Sign up to receive info/news from a retailer or manufacturer

90% 89% 93% 91%

77% 80% 75% 76%

P:

O:

Subscribe to a retailer’s e-newsletter

96% 78% 88% 80%

86% 61% 74% 72%

P:

O:

How often do you do each of the following?

Frequently/Sometimes

88% 77% 82% 87%

78% 66% 68% 71%

P:

O:

Sign up to receive coupons or other store promos via e-mail

Please indicate your involvement with each of the following online activities

Do It Now


Presenter

Presentation Notes

Most consumers are taking advantage of company websites to get discounts, find out about new products, and learn more about how the company does business. E-newsletters offer lots of scope for relationship building and loyalty efforts.

1010

…and of Interplay Between Online and Offline Stores

Use online coupon in brick-and-mortar store

95% 88% 97% 97%

89% 82% 82% 88%

P:

O:

Research purchase online before visiting store to buy it

79% 92% 69% 72%

70% 76% 56% 61%

P:

O:

Visit retailer with info printed online

62% 73% 72% 87%

50% 58% 58% 71%

P:

O:

See product in store and then wait to order online

82% 71% 77% 77%

76% 61% 57% 64%

P:

O:

How often do you do each of the following?Frequently/Sometimes

96% 84% 87% 85%

89% 75% 82% 77%

P:

O:

Visit company website to locate store near me

42% 26% 31% 45%

35% 19% 25% 34%

P:

O:

Return online purchase to physical store


Presenter

Presentation Notes

The lines between online and brick-and-mortar retail have blurred. Consumers are going online to make smarter choices at local stores, and they’re going to brick-and-mortar stores to check out products they might purchase online. Retailers need to take this into account and find ways to make the two environments complementary, with each adding to the other.

1111

It’s All About Scoring the Right Buy

Part of the fun of shopping is the “hunt”— looking for the things you want and need

Shopping is a game where the object is to get the most for the least amount of

money and effort

71% 56% 81% 88%

63% 52% 63% 87%

P:

O:

85% 90% 92% 92%

85% 88% 81% 87%

P:

O:

Smart shopping is finding just the right thing for the right price

56% 68% 66% 89%

42% 55% 50% 81%

P:

O:





Presenter

Presentation Notes

For most consumers, shopping is a game. And the Internet has made it easier than ever for them to win.

1212

II. A Move Toward Conscientious Consumption

Image: Creative Commons/josemanuelerre@flickr com

More More ConscientiousConscientious

Presenter

Presentation Notes

Even as consumers grow savvier about using online resources to identify and score the best deals, they’re also paying more attention to aspects of purchases that go beyond price and personal gain

1313

Lowest in Gallup history

Today’s Consumers Trust Corporations Less…

…but also expect more of them

Presenter

Presentation Notes

Confidence in leaders and institutions has seen a sharp decline in recent years, thanks to a string of scandals in virtually every industry and profession. As a consequence, consumer trust in Big Business is at its lowest point in Gallup history. Nevertheless, Big Business is also emerging as a force for social change. People like Bill Gates and Richard Branson and such companies as Timberland, Starbucks, and GE have taken a leading role in key issues of the day. Thanks to the Internet and the democratization of media, corporations also feel more approachable and accountable. Our studies have found that consumers are much more likely today to pay attention to corporate social and eco policies today—and reward those companies whose values they share.

1414

We Now Expect Corporations to Drive Change

Euro RSCG Future of the Corporate Brand Study

Businesses bear as much responsibility as governments

for driving positive social change

83% 87% 83%

70% 79% 70%

P:

O:

How much do you agree with the following statement?


Presenter

Presentation Notes

Large majorities in each country agree that businesses bear as much responsibility as government for driving social change. What once was the view of the leftist fringe is now mainstream thinking.

1515

We Seek to Partner with Ethical Leaders…


As a consumer, I have a responsibility to censure unethical

companies by avoiding their products

87% 85% 79%

78% 80% 66%

P:

O:



I have made a purchase decision based on a company’s conduct

80% 81% 73%

61% 65% 55%

P:

O:


Presenter

Presentation Notes

It’s now about “survival of the fairest,” as consumers seek to support companies with values aligned to their own. They want to limit the damage their consumption causes: 1) by making the “right” purchases and 2) by influencing corporate behavior.

1616

…and Limit the Eco Damage Our Purchases Cause

Buy energy-efficient bulbs

Buy environmentally friendly products

85% 92% 82% 89%

79% 76% 78% 77%

P:

O:

50% 98% 76% 75%

44% 93% 78% 62%

P:

O:

Bring reusable bags to grocery store

82% 90% 85% 96%

76% 82% 83% 85%

P:

O:

Please indicate your involvement with each of the following activities

Do It Now


Presenter

Presentation Notes

Our latest study found clear indication that even mainstream consumers are “going green”—seeking to limit the negative impact of their purchase decisions on people and the planet.

1717

We’re Also Taking Socio-Political Factors into Account

Make purchase decisions based on country of origin

Buy/refuse to buy a product based on company’s expressed values or

political/social activities

71% 68% 47% 79%

52% 44% 39% 57%

P:

O:

54% 73% 54% 59%

45% 47% 38% 45%

P:

O:

Avoid buying products from particular country/region

59% 85% 49% 84%

50% 52% 41% 78%

P:

O:

Please indicate your involvement with each of the following activities

Do It Now

I avoid shopping at stores that don’t treat their employees fairly

60% 74% 28% 87%

52% 46% 28% 68%

P:

O:

I am willing to pay a bit more for a product if a portion of the proceeds goes to a good cause

70% 73% 32% 85%

56% 56% 38% 77%

P:

O:




Presenter

Presentation Notes

Being more conscious of consumption choices also means examining product provenance—and voting with one’s pocketbook.

1818

The Tables Have Turned…


I have become more interested in corporations’ conduct and brand image over the past few years

80% 64% 75%

60% 47% 48%

P:

O:



Within the last few months, I have actively looked for

information on the reputation or ethics of a company

56% 72% 55%

33% 47% 35%

P:

O:

Over the last year, nonbranded blogs or forums made me

change my mind about a product or service I had intended to buy

36% 48% 36%

24% 39% 24%

P:

O:

Presenter

Presentation Notes

Today’s proactive consumers don’t just vote with their pocketbooks, they make an effort to monitor and influence corporate policies. Anyone with Internet access can track corporate movements and contribute to conversations about what a company is doing right…or wrong. Whether protesting Apple’s rapid discounting of the iPhone or jetBlue’s mistreatment of passengers, ordinary people now have the wherewithal to force companies to respond to their complaints and demands. This puts significant power in the hands of consumers who take time to blog about a company, post a video on YouTube, or slam a company or product on a consumer-review site.

1919

…and Companies Are Being Forced to Adapt

Reputation for social and/or environmental responsibility

88% 91% 87%

78% 84% 73%

P:

O:

Ethical conduct

96% 97% 87%

90% 90% 73%

P:

O:

The most successful and profitable businesses in the

future will be those that practice sustainability

78% 88% 87%

66% 76% 70%

P:

O:

Please indicate the level of importance of this factor in leading

you to trust a company

Extremely/Somewhat Important


Please indicate how important this factor is for a good business

Extremely/Somewhat Important



Natural selection is beginning to favor those companies that are

integrating high ethical standards into their policies and practices

Presenter

Presentation Notes

“Doing good” is now seen as a competitive advantage, leading companies to make CSR and sustainability efforts a point of difference.

2020

2121

III. How Conscientious Consumption Is Playing Out in the Food Category: Conscious Nourishment

Images: Creative Commons/[email protected]; [email protected]

More More MindfulMindful

2222

Health and Safety Concerns Increasingly Drive Food Choices…

• 64% of Americans are trying to eat healthier foods• 53% always check nutrition labels before buying food• 45% usually look for packaging that advertises a health claim[Greenfield Online/Mintel, 2007]

Images: Creative Commons/[email protected]; Kurt [email protected]; [email protected]

2323

…But That’s Tempered by the Persuasive Power of Pleasure

Images: Creative Commons/[email protected]

Presenter

Presentation Notes

We live in an era in which people are showing virtually limitless capacity for pleasure and entertainment—and food has become a key supplier of both. We eat not just to live well, but also to feel good.

2424

Naturalness

Molecular technologies

ExperienceConsideration and discretion

Creativity

New pragmatism

Honesty, transparency, trust

Intrinsic value of nutrients

HumanismResponsibility

By engaging in conscious nourishment—a way of eating that maximizes health and pleasure by incorporating such key values as

community, authenticity, adventure, nutritional potency, and sustainability

How are consumers satisfying these twin pulls of health and pleasure?

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Belonging (beyond family)

Wellness and balance

2525

Conscious Nourishment: 3 Successful Discourses

Nutritional PotencyCelebrating the Real Sensory Pleasure

2626

_ Artificially flavored milkshakes, chicken nuggets

_ Processed

_ Quality issues

_ Health scares (e.g., mad cow, GMO, salmonella)

_ Naked Juice, chicken on the bone

_ Organic, local, raw, authentic

_ igourmet.com, Jamba Juice

_ Extrapolation: Anti- commercialization of food and drink

Identity

KEYWORDS

HonestCraftPositive simplicity

SourceNaturalTraceability

Discourse #1: Celebrating the RealDiscourse #1: Celebrating the Real

• Movement from processed convenience toward natural integrity, identity, and straightforwardness

• A way for today’s savvy food shopper to feel good about his/her decisions

Dominant Emergent

2727

Dominant Emergent

Celebrating the Real

Processed Mystery/Disguise

Commercialized/ Sanitized

Nontraceable

The reality of a pig’s trotter

as food

Seasonality and nutritional

quality

Rawness, wholeness, integrity

Local/Just picked

Unprocessed Honest/NarrativeFresh, young vegetables, whole,

newly picked

2828

Signs of Support for Celebrating the Real

Sales of natural food and drink +138% btwn 2002 and 2007; sales of organics +119% [Datamonitor]

Natural products (food and other) now a $56.8BN industry in U.S. [Mintel, 2007]

Craft and Artisan GoodsReturn to notion of individually produced foods and recipes of old

Links consumer to supplier and simpler, more “authentic” times and processes

Originally brewed in monastery in feudal city of Dinant in early 18th century

“Terroir” and TraceabilityMore attention paid to geographic origin, production processes, and ancestry/pedigree

Desire for transparency throughout production and sales cycle

“Reflet de France,” Carrefour’s terroir brand, now best- selling food brand in France

Catch date and name of fishing boat included in packaging

Rise in seasonal goods


2929

“The heart of the [real food] movement is that our food is existing in a place...you are

eating food that you can trace to a person, place or tradition, and

make a connection.”

—Deborah Madison, chef and author of Local Flavors: Cooking and Eating from America’s Farmers’ Markets

Images: Creative Commons/[email protected]

3030

How to Leverage Celebrating the Real

• Think like a…_ Farmer, maker of craft beer

• Implications:_ Imbue communications with human warmth

and expertise—e.g., ingredient descriptions such as “mashed,” “blended,” “steamed” (terms that evoke simplicity, even innocence)—while also emphasizing nonuniformity of product, artisanal processes, and the like

_ Dig into brand’s or product’s heritage and narrative (mythology or provenance), creating deeper brand story

_ Communicate total ingredient traceability (e.g., profile of suppliers and distribution)

_ Convey product’s perishability and “produced” or “picked” date, emphasizing local = fresh

_ Communicate distance from global corporation through separate brand name, local partnerships, cooperatives, etc.

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3131

Dominant Emergent

Discourse #2: Nutritional PotencyDiscourse #2: Nutritional Potency

• Understanding physiological and psychological impact of food in new ways— focusing on potency of components and what one needs for self-optimization

• A way for today’s savvy shopper to maximize value

_ Reduction in salt, sugar, trans fats

_ Mild enhancements—ginseng, fiber, etc.

_ Consumers looking for generalized health benefits in food and drink

_ Understanding specific functionalities

_ “Magic bullet” ingredients

_ Right for me—customized, targeted diets

_ Extrapolation: Food and beverages as personal care (beauty benefits beyond classical nutrition); food and beverages as medicine

Anti-aging

KEYWORDS

Nutritional intensityDetoxifyingPersonalizationCleansingAnti-stress

3232

Nutritional Potency

Generalized association of tea

with wellness (nonspecific)

Right carbs, right fats, rather than low-carb,

low-fat

Generalized healthful, whole grains; lacks

specificity

Awareness of antioxidant

efficacy in tea

Phytoestrogens in soya and linseed to relieve

menopausal symptoms

Patented egg providing quantifiably

superior nutrition

Prescription and clinical response

Nutritional potency of

water

Beverage as deliverer of skin benefits

Reason for U.S. adult obesity is “eating too little” (food with no nut. value)

Examples of magic-bullet

foods

Dominant Emergent

3333

Signs of Support for Nutritional Potency: Nutraceuticals

93% of U.S. consumers believe certain foods have health benefits that may reduce risk of disease or other health concerns; nearly 2/3 regularly consume at least 1 food for functional health benefit [IFT]

Mintel forecasts sales of functional foods will reach $12.8BN in 2009, up from $10.4BN in 2004

In 2007, functional beverage market reached $9.8BN in FDM channel; during 2002–07, market increased 30% at current prices, and 14% after accounting for inflation [Mintel]

3 grams of EGCG-rich green tea leaves in each bar, cold-

processed to promote optimum enzyme activity

Primary areas of focus: heart health •

immune system •

digestion •

weight mgmt •

muscle tone •

brain development •

alertness •

anti-aging •

beauty

Presenter

Presentation Notes

We’re also seeing overlap between the food/beverage and beauty categories, with more food and drink products exploiting the anti-aging properties of antioxidants to claim the promotion of youth and beauty.

http://www.amazon.com/gp/product/images/B000FNALAG/ref=dp_image_0/104-6583382-6658310?ie=UTF8&n=16310101&s=grocery

3434

How to Leverage Nutritional Potency

• Think like a…_ Personal care or beauty company

• Implications:_ Target consumer groups by “wellness profile”—

e.g., nutrition for boomers, nutrition for stressed-out bodies, nutrition for extreme athletes

_ Provide DIY personalization in form of modular diet components, drink flavors, and the like

_ Create a personal-care offer that delivers wellness through indulgence (opportunity to resolve the opposition)

3535

Dominant Emergent

_ Appetite-led

_ Indulgence

_ Guilt

_ Nouvelle cuisine

_ Discerning pleasure beyond indulgence—pleasure via occasional indulgence (vs. continuous, addicted)

_ Discriminating, conscious, healthy pleasure; celebrating life, texture, innovation, rediscovery, sensory experience

_ Extrapolation: Pleasure led by discretion; taking cues from contemporary luxury codes vs. old-style conspicuous consumption

Quality not quantity

KEYWORDS

AestheticsFlavorSelectivityUniquenessDiscovery Simplicity

Discourse #3: Sensory Pleasure

• Moving on from addictive and transgressive notions of indulgence (naughty, decadent, implicitly dumb with a hidden Puritanism) to more intelligent and engagingly mindful pleasures (why shouldn’t pleasure be good for you?

• Gives conscious consumers “permission” to indulge

Presenter

Presentation Notes

Discerning pleasure beyond indulgence—pleasure via occasional indulgence (vs. continuous, addicted), discriminating, conscious, healthy pleasure, celebrating life, texture, innovation, rediscovery, sensory experience, innovation

3636

Dominant Emergent

Classic indulgence (e.g., thick and rich)

New indulgence (pure ingredients that speak

for themselves)

Indulgence derived from source, narrative, myth;

artesian water

Sensory experience

Desert limes: specific/thoughtful

Aesthetic treatment of food—close to the source

New sensory experience/discovery

Traditional temptation—glossy chocolate (obvious take on indulgence

and pleasure)

Sensory Pleasure

3737

Signs of Support for Sensory Pleasure

Bartenders turning into “bar chefs,” offering signature concoctions made with fresh juices, housemade syrups, and unusual ingredients

U.S. retail sales of gourmet, specialty, and premium foods and beverages are

growing at much faster rates than those of overall

industry, surging 10.9% to $59BN in 2007 and posting a

CAGR of 11.1% for 2003– 2007

Images: Creative Commons/aoife [email protected]

Presenter

Presentation Notes

Consumers are looking for foods that satisfy the senses; they want tastes that are more complex and intriguing. Chefs are responding by offering dishes that balance all 5 tastes (salty, sweet, sour, bitter, umami) with sensory experiences of aroma, appearance, and texture. People are looking to exotic ingredients and innovative recipes to provide more intense consumption experiences. Playing with flavors, preparation methods, and textures turns food consumption into an activity of discovery and surprise.

http://brandnoise.typepad.com/.shared/image.html?/photos/uncategorized/chocolate_ice_cream_final.jpg

3838

How to Leverage Sensory Pleasure

• Think like a…_ Gourmet restaurant or upscale bar at a luxury

resort

• Implications:_ Demonstrate understanding of aspirational nature

of food and drink_ Re-educate the palate—from mindless

consumption to mindful pleasure_ Don’t focus on speed and convenience in delivery

of predictable pleasure-hits_ Don’t speed up treadmill of consumption_ Focus on ingredient and flavor innovation_ Communicate invented flavors, compelling

combinations of “real food” components

3939

Three Imperatives for Reaching the New Consumer

Images: Creative Commons/Bruce A [email protected]

More Conscientious

Smarter

More Mindful

4040

3 Retail Imperatives

MOTIVATE• Help people be more conscientious consumers• Respond to increasing eco-consciousness• Offer purpose beyond profit

HELP• Make it more convenient• Be a customer advocate

ENGAGE• Create experiences• Forge connections• Indulge• Innovate/keep it fresh

Images: Creative Commons/[email protected]; Steve [email protected]

Presenter

Presentation Notes

Building on the 6 segmentations uncovered by ERWW’s Future of Shopping study, our strategists have identified 3 imperatives for addressing the higher expectations/demands of today’s retail environment:

http://www.tesco.com/todayattesco/pricecheck.shtml

4141

Imperative #1: Engage Consumers

Three primary means of engagement:

1. Create experiences that engage consumers in the brand

2. Provide opportunities for communication and connection

3. Innovate, innovate, innovate


4242

The Retail Brand of the Future (RBoF) Creates More Engaging Experiences

• With so many choices available, consumers are gravitating toward retailers that offer more bang for the buck

• Looking for extras that elevate a mundane activity into an experience

It’s the difference between this…

…and this

Image: Creative Commons/Olivier [email protected]

4343

Providing Conversational Currency

Kopi luwak, one of world’s most expensive coffees, comes from berries that have passed through digestive tract of asian palm civet


4444

Engaging the Senses

• Consumers are looking for brand experiences that indulge the senses, turning ordinary activities into something special

Tiffinbites (London) creates an aromatic experience that feeds the imagination and turns lunchtime into a cultural adventure

At Chop’t (NYC),

simple tasks and sounds

become theatrics that

draw diners in to beauty of

making something

fresh

Sweet Bliss’s Moo Collection (available at high-end retailers) turns childhood favorites—e.g., PB&J—into gourmet indulgences enrobed in Belgian chocolate

http://www.sweetbliss.com/

4545

Creating Visual Hypnotism (Inside and Out)

Dylan’s Candy Bar, NYCA child’s fantasy brought to life

Pierre Hermé, Paris Edible art—visual perfection creates desire

Apple Store, NYC

Selfridges, Birmingham, U.K.

Presenter

Presentation Notes

The rise of aesthetics in recent years means “design value” is now a cost of entry; consumers are looking for experiences that break through the clutter and connect with emotions on a deeper level

4646

Offering a Sense of Escape…or Adventure

High-end lingerie boutique Journelle (NYC) creates a spa-like experience with its dressing rooms

60-ft. Ferris Wheel, Toys R Us, Times Square

4747

Involving Customers

4848

The RBoF Brings People Together

• Providing opportunities for people to unite for a common cause

• Creating dialogues

• Encouraging collaboration and communal action

Avon’s Walk for the Cure

4949

Cultivating Brand Ambassadors

5050

Forging Bonds Between Producer and Consumer

• Involving consumers in life of the brand (“co-creation”)

• Sharing knowledge, back story, etc.

• Using language that reasserts “human” side of food and drink

• Advocating slow, conscious, sociable consumption

E-newsletter from Tyrrell’s potato crisps includes updates on fields:

“To keep up with the progress we have taken a picture of the field 'Crossroads' again to show you how the potato crop is coming along, as you can imagine we have not had to irrigate at all this Summer! In other fields we have began harvesting and have been getting a really good yield from the crop, we have been lucky in the fact that most of our fields have sandy soil which drains easier and allows us to get the tractors in the fields!”

5151

Creating Social Connections

Claseo bills itself as world’s 1st invitation-based fashion label

Starbucks’ holiday Cheer Pass promotion

encouraged acts of kindness between

strangers

Presenter

Presentation Notes

Claseo bills itself as world’s first invitation-based fashion label Members receive a limited number of invitations to share with friends, who must enter a code and make a purchase to become members themselves Every item is emblazoned with a unique ID code that allows members to recognize one another and learn more about people of interest by entering the wearer’s code on the website

5252

The RBoF Constantly Innovates

• Today’s consumers are obsessed with the new and NEXT

• Innovation allows companies to…_ Change the rules and develop entirely new

business models (e.g., eBay, Netflix)_ Regain or grow market share (e.g., Apple)_ Get noticed

• An important component of financial performance: The top 20% of innovative companies deliver up to 4X the shareholder return of the bottom 20% [Boston Consulting Group]

New product every 5 minutes

5,000 new products a year

5353

Keeping It Fresh with Flash Goods, Pop-Up Stores, and Limited Editions

By limiting time most items stay in stores, Zara averages 17 store visits

per customer/year, compared with industry average of 3-4

UNIQLO drove shipping containers around NYC, opening daylong pop-up stores in various locations to give shoppers a taste of their logo-free apparel

Carlsberg 900 launched in a very limited number of

select bars in Stockholm

5454

Standing Out Through Packaging & Design

5555

Creating Breakthrough Ideas

$4 prescriptions

Target Clear Rx redesigned pill bottle

5656

Imperative #2: Help Consumers

• There are 2 things most consumers today feel are in short supply: time and money

• Smart retailers are finding ways to save customers one or both

5757

The RBoF Offers Convenient Solutions

5858

Simplifying the Retail Experience…

Tesco’s Fresh & Easy stores in U.S. are 100% self-

checkout

VinoVenue automated wine bars let customers select and serve their own wine with prepaid cards

Bloomingdale’s interactive mirrors let shoppers try on virtual outfits and e-mail images to friends

Presenter

Presentation Notes

Consumers were estimated to have spent $525BN+ at self-checkout lanes, ticketing kiosks, and other self-service machines in U.S. and Canada in 2007, up from $438BN in 2006 [IHL Consulting Group] Self-service being embraced as a way to avoid lines and minimize wait time Vending machines also expanding; now offering everything from condoms to pizza and ice cream sundaes

5959

…and Life

Dutch Boy Twist & Pour

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The RBoF Is a Consumer Advocate

Hannaford’s Guiding Star system lets customers see the nutritional value of products throughout the

store

Pret a Manger is sharing its trade secrets by offering

sandwich and soup recipes online and printed on packaging/ postcards

Presenter

Presentation Notes

Today’s more proactive consumers are demanding more from the companies they keep—a reaction to both unprecedented levels of distrust and heightened expectations regarding corporations’ role in society.

http://www.hannaford.com/Contents/Healthy_Living/Guiding_Stars/index.shtml

http://www.cherryflava.com/photos/uncategorized/prettm.jpg

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Providing Full Disclosure

• Thanks to the Internet, consumers have come to expect full access to information on everything from pricing and warranties, to airline seating

Euro RSCG Future of the Corporate Brand Study (U.S.)

Businesses must be completely open and transparent

70% 88% 88%

63% 79% 78%

P:

O:



http://www.tesco.com/todayattesco/pricecheck.shtml

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Offering Learning Opportunities

Apple Genius Bar

L’Oreal Paris Living Lab

• Supporting connoisseurship and helping consumers do more with products they purchase

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Imperative #3: Motivate Consumers


Presenter

Presentation Notes

Consumers are paying more attention to the impact of their purchases on other people and the planet. Smart companies are giving products a boost by aligning them with important causes/concerns.

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The RBoF Is Moving Toward Sustainability


To reduce packaging cost and waste, Wal-Mart now scores its 60,000 worldwide suppliers on ability to develop eco-packaging and conserve natural resources; estimated corporate savings: $3.4BN

Presenter

Presentation Notes

Retailers big and small are taking steps to be more environmentally responsible—a response both to external pressures and to the cost savings inherent in reduced consumption of energy, packaging materials, etc.

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Communicating Sustainability to the New Consumer

• Retailers and manufacturers are communicating green values through use of natural materials, muted colors, signage, simplified packaging, etc.

• Taking cues from farmers’ markets

6666

• From Google and Apple to Starbucks and Whole Foods, many of today’s leading brands have 1 thing in common: a strong set of beliefs that is clearly articulated

The RBoF Has a Purpose Beyond Profit


It is important that companies stand for something other than

profitability

96% 95% 86%

83% 87% 80%

P:

O:



“Customers must recognize that you stand for something.”

—Starbucks CEO Howard Schultz

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Shouting It Out

• The most value accrues to those companies that take a bold stance and publicly declare their values and clearly defined objectives

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Expressing Values Across Every Touchpoint

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Communicating a Reason to Care…

• Consumer education is vital to a successful values-based branding effort; the best initiatives make customers feel personally invested in a cause

7070

…and Making It Easy for Consumers to Participate

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Conclusion: Getting to the Future First

• In future, shopping will be more proactive and considered_ More research prior to purchase_ More consumer-to-consumer communication via product/company reviews and ratings_ More conscientious shopping choices related to environmental, ethical, and socio-

political concerns

• Prosumers continue to offer glimpse of the future in terms of both how they’re shopping and what they’re buying

• Brands that will own the future will…_ Be transparent in communications and give consumers access to all the

information/tools they need (e.g., customer reviews and ratings)_ Communicate a single-minded vision_ Serve as industry leaders and standard bearers_ Drive meaningful change_ Address consumers’ twin pulls of selfishness and altruism by providing products and

services that contribute to both the individual and the greater good

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Media Inquiries

For inquiries regarding Euro RSCG Worldwide’s studies, please contact:

Lisa Gruber Global Communications Manager Euro RSCG Worldwide T +1 212.886.2018 E [email protected]

mailto:[email protected]

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For more insights from Euro RSCG research, visit www.prosumer-report.com

And follow us on Twitter (@prosumer_report)

http://www.prosumer-report.com/

http://twitter.com/#!/prosumer_report

Date post:	19-Oct-2014
Category:	Self Improvement
View:	1,848 times
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The Future of Shopping - Presentation

Self Improvement