THE PERSISTENT SHOPPER

SHOPPING vs. SHOPPER > HOW PEOPLE WILL BE PERSISTENTLY SHOPPING:

The environment and its dynamics that allow people to exist in this fluid state. WHERE PEOPLE WILL BE SHOPPING: The infrastructure, the key players, and the innovation required to break barriers and redefine “convenience”

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Consumer/Shopper is consuming

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Consumer/Shopper is influenced

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Consumer/Shopper creates a Shopping

Mission

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Consumer/Shopper evaluates the purchase

decision

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Shopper makes a purchase

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Shopper makes a channel and banner

choice

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SHOPPER SHOPPING

PREDICTING THE FUTURE OF

SHOPPING Changes in shopping are shaped by innovations macro technical infrastructure Looking to the past helps us locate patterns for the future

HANG ON…

NOTHING HAS REALLY CHANGED.

Retail Destinations Frictionless Payment Product Delivery Human Consciousness

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TODAY’S BARRIERS

Convenience is in the eye of the beholder. Today’s barriers are still:

WHAT IS TOMORROW’S TECH TOOL INNOVATION?

What are the difference shopping in the enabled world – the world in which people will exist in in the next 10 years. As in the past, we can see the movements in technology that signal the next changes tomorrow.

WHAT IS TOMORROW’S TECH TOOL INNOVATION?

Our two big bets are: 1 Unconscious Consumption

The smart automation of utility goods.

2 Atoms > Bits The physical world digitally synthesized a.k.a 3D printing.

AGENDA Utility > Automagic Material > Synthetic (3D Printing)

> > THE WHAT – TECH TOOLS

Business > Consumer > THE WHERE – WHERE WILL SHOPPING HAPPEN

Google > New Retailers > THE WHO – THE NEW PLAYERS INNOVATING THE SPACE

Blended Concepts > Blended Reality > THE HOW – WHAT WILL SHOPPING LOOK LIKE?

What this means for you guys > THE WTF NOW?

UTILITY > AUTOMAGIC The first big influence & change:

Today, we have to rely on our own memories and finite time to fulfill our weekly ‘shop’, which is inefficient.

Tomorrow, this will no longer be the case.

This fridge is in the market today, and signals the change +

Efficiency transcends the purchase cycle: Automating purchasing your basics means more time for other stuff, giving you time back from “utility shopping”

THE BIG LEARN

THE TRANSFORMATION OF PERSPECTIVE

ROUTINE NECESSITY PASSION PURSUIT from to

But always shopping

WHAT THIS MEANS FOR BRANDS

POTENTIAL RISKS FOR EVERYDAY BRANDS: Without existing brand loyalty the opportunity for trial in store is low/none Investigate other nodes of influence for consideration/reappraisal.

WHAT THIS MEANS FOR RETAILERS

HIGH EFFICIENCY FOR RETAIL: Automagic anticipates needs in advance; reducing waste and loss as well as saving on overheads. However…with smarter understanding of consumers, must have items will lead to smarter x-sell opportunities

MATERIAL > SYNTHETIC The second bigger chance

DIGITAL FABRICATION a.k.a.

3D PRINTING

THE BIGGEST GAME CHANGER

One of the big benefits of 3D printing is that it allows you to manufacture as close as possible to the point of need. But, just like the telephone, 3D printers aren’t going to be in everyone’s house by 2017. Retailers are going to need to offer this service in store to support the utility.

IT SEEMS LIKE THE FUTURE, BUT….

WHAT IF I TOLD YOU WALMART HAS ALREADY STARTED 3D PRINTING?

Walmart has the largest information technology infrastructure of any private company in the world.

State-of-the-art technology allows Walmart to accurately forecast demand, track and predict inventory levels, create highly efficient transportation routes, and manage customer relationships.

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HOW DOES WALMART DO IT?

CONCLUSION: Walmart understands two important factors regarding successful adoption of 3D printing:

1)Mass Consumer Requirements

2) ACCEPTIBLE PHYSICAL PROXIMITY

One recent survey citied 64% of consumers polled said they had showroomed Walmart and purchased at Amazon.

Another recent survey of smartphone users suggested that nearly 50 million people access Amazon each month and “only” 16.3 million access Walmart.

HOWEVER… WALMART STILL SUFFERS FROM ‘SHOWROOMING’

3D PRINTING COULD REVERSE SHOWROOMING

REVERSING SHOWROOMING

People buy books, music, and movies online for three key reasons: FIRST: There is little benefit to seeing the physical product.

REVERSING SHOWROOMING

SECOND: Because there is such little supply chain cost, digital products can be sold less expensively. Thirdly: Because digital books, music, and movies can be delivered instantaneously, there is no time advantage to buying in-store.

REVERSING SHOWROOMING

FINALLY: BUT WHAT ABOUT physical products that need to be seen? The user will ALWAYS need a way to touch and feel them. Where better than a retail store, where samples can be displayed?

DIGITAL AND MATERIAL: A HAPPY MARRAIGE

DYNAMIC BETWEEN MATERIAL & DIGITAL

Digital manufacturing will likely not replace mass manufacturing in our lifetime. But they will complement each other. A savvy retailer like Walmart would probably offer products digitally at the beginning and end of their lifecycle.

THE BIG LEARN

DYNAMIC BETWEEN MATERIAL & DIGITAL

Product Lifecycle Demand Curve

DIGITAL DIGITAL MASS MANUFACTURING

WHAT THIS MEANS FOR RETAILERS

Retailing infrastructure is complemented and replaced by data banks Offers and deals can become actively purchased through communications, making impulse opportunities available any time. Retail locations could become far smaller, with wifi and printers for specific items.

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WHAT THIS MEANS FOR BRANDS

PROTOYPING NEW PRODUCTS FOR TEST IN REAL LIFE BECOME A REALITY Reliance on retailer for shelf space becomes less important Purchase of products could come directly through your marketing/branding efforts Vending becomes far more flexible with printing functionality

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BUSINESS > CONSUMER The power now resides with the consumer

With persistent shopping all that matters is context. As they can choose to purchase where they want. At any time.

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STORES BECOME THE WORLD AROUND US The layers to purchase are peeled away, allowing us to

discover and purchase in the flow of everyday life.

THE BIG LEARN

WHAT THIS MEANS FOR BRANDS

THE WORLD BECOMES YOUR RETAIL STORE Product purchase through social will become priority

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WHAT THIS MEANS FOR RETAILERS

Number of retail opportunities will make the shopping environment hyper competitive. They who own the hardware, own the shopping experience and the retail transaction. A pure-play physical store could be seen as “not enough” in respect to shopping in the “real world

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THE FUTURE IS GOOGLE The future: Today

PROXIMITY: THE DOUBLE EDGED SWORD The interface that is nearest to the consumer

owns the conversation

But it’s not just the hardware and services that are going to influence the change. Existing non-retailers already have significant skin in the game. Changing the retail offering, and shopping environment.

WAZE AND NEST

The big learn:

THEY WHO HAVE THE

MOST DATA WINS

WHAT THIS MEANS FOR RETAILERS

PARTNERSHIP You retain trusted status with your customer – partner with technology owner in order to leverage each others’ specialisms. Partner with a white goods company, and create your own network.

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WHAT THIS MEANS FOR BRANDS

PARTNER with google..!

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BLENDED REALITY

ACCELERATING THE SPEED BETWEEN THOUGHT & PHYSICAL

MANIFESTATION The exponential growth and adoption of technology has seen technology move closer in to us so that it’s becoming indistinguishable from our person in our biology.

THE MERGER BETWEEN DIGITAL & BIOLOGICAL

MERGING BITS AND ATOMS OUTSIDE OF OUR BODIES Google’s Project Tango: Due out in the next 18 months

as a standard component of android products

THE BIG LEARN The more you can shrink the time between thinking about a product and having it in your hand, the more likely people will purchase. With no friction, shopping simply becomes part of your identity.

WHAT THIS MEANS FOR BRANDS

Every space is marketable opportunity. Adwords could literally be all over and inside a building. Every space is an opportunity to buy your product with a tap of the finger, sent and printed off by your 3D printer at home. A genuinely connected brand story. You could even give people the opportunity to “brand” their houses with their favorite products.

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WHAT THIS MEANS FOR RETAILERS

QUESTION: What does your brand promise/purpose offer your consumers? It’s in this space that you can re-imagine your offering, whilst still being consistent and true to your brand. CONSIDER YOUR CONSUMERS: What is their comfort level in this space? You can take them on this journey PARTNERSHIP: Leverage tech partners to lend trust and credibility to your offering.

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WHAT THIS MEANS FOR YOU

IS THIS THE END?