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?