The Future of RetailTrends
THE MARKET TODAY
The LandscapeThe Consumers
Big box retailers feeling the heat from e-commerce giants like Amazon
‘Showrooming’ is the new reality
A new breed of digital-savvy shoppers has emerged
Traditional retail must adopt a multi-channel life to survive
I care about convenience and value – at every touchpoint
The Digital Savvy Shopper
• Takes advantage of technology • Offers personal data for a better experience • Expects contextually relevant offers• Wants to have a say & be rewarded for their
knowledge • Floats seamlessly across mobile, online and
real-world platforms in their path to purchase
THE STATSThe Facts
The Implications
3 in 4prefer retailers that
use personal information to improve
the shopping experience
61%would trade increased privacy for personally
relevant offers
73%want “relevant” ads on
their mobile device
65%like to receive offers
on their phones based on past purchases
while in-store
65%delay a purchase/buy elsewhere if they find a lower price by using their phone in-store
35%have bought online &
picked up in-store
75%Would wait 5 days if shipping were free
15%decline in shopper
satisfaction at retail stores, per year
75%more inclined to purchase from a
company that uses mobile apps
93%more inclined to purchase from a
company that uses social media
40%of Millennials want to
influence brand products
74%of Millennials think
they influence purchase decisions of
peers & other generations
63%of Millennials typically
shop with family or friends as a social
activity
75%of Millennials want
brands to provide life experiences
Implications for Retail Brands:
1. Create personalized shopping experiences by trading privacy for relevancy.
2. Release control of your brand. It belongs to your customers – be agile & collaborative.
3. Focus on how your brand enables life experiences, not stuff.
4. Provide value & ease at every touchpoint:– online, mobile, social & brick & mortar stores
TRENDS Retail Today
Retail Tomorrow
TODAY TOMORROW
Search results Personalized results
Bricks & clicks Commerce everywhere
Reactive Predictive
Learn from the data I share with you when I shop
Know me when I’m not in your store
Know me when I walk into your store
Give me personalized service & recommendations in-store
Give me personalized service & recommendations everywhere
Make it easy for me to buy – anytime
Make it easy for me to buy – anywhere
Make it easy for me to buy – any way
TODAY TOMORROW
Periodic Always On
Retail by channel Retail by experiences
Smartphones “Smart” everything
Serve me “relevant” offers all of the time
Use technology to augment my shopping experience
in-store
But also use technology to augment my experience
out-of-the-store
Let me do fun things in-store, not just buy
Offer me something worth-while in-store
TODAY TOMORROW
Brand as experts Consumer as experts
Retail names the price
Shoppers name the price
Browse Retailers Be Retailers
Let me have a say on the deal I want
Let me help design your products
Let me sell on your behalf
Let me create my own store for you
Then reward me for my support
And support my ideas
THE MARKET TOMORROW
QuestionsImplications
What happens to retail when our phone, wallet, refrigerator, and car are all connected?
What happens to consumer’s decision journey when brands can be predictive and personalized
with every message?
What happens to brick & mortar when consumers can sell, design, & own for you?
Implications for us?
• Who are our most loyal and enthusiastic consumers we can ask to participate & sell for our brands?
• What value-added experiences can we create in physical stores to mitigate the effects of ‘showrooming’?
• When can we leverage mobile to drive in-store & amplify relevant offers?
• Where can we harness social & shopping data to provide better, more personalized service to consumers?
• How do we construct seamless shopping experiences that promote discovery in-store and continue the sales process at home or on-the-go?