Middle East Trends - Shopper Powers and Retail Landscape 2014

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Are shoppers changing the way retailers operate? Or are retailers driving the change in the shopper behaviour patterns? Why are malls getting bigger while the consumer attention span is shortening? …

Are shoppers changing the way retailers operate? Or are retailers driving the change in the shopper behaviour patterns? Why are malls getting bigger while the consumer attention span is shortening? What has more power – convenience or sensorial experience? Why is Middle-eastern retail landscape so unique? To find answers to these questions and more just read on Cheil's Trends Spring 2014: Shopper Powers.

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  • 1. Ⓒ  2014  Cheil SHOPPER POWERS! ! Trends! Spring 2014! ! Middle East 1  
  • 2. Ⓒ  2014  Cheil INTRO… Are shoppers changing the way retailers operate? Or are retailers driving the change in the shopper behaviour patterns? Why are malls getting bigger while the consumer attention span is shortening? What has more power – convenience or sensorial experience? To find answers to these questions and more read Trends Spring 2014: Shopper Powers.   At Cheil UAE, our observation skills, trendspotting & pattern recognition are “MADE IN THE REGION”. From different global and local research to supermarket visits, café ear-dropping, social behaviourism and practically anything that showcases or hints to any new pattern being built, we develop our MEA 2014 collection of trends. For previous Trend Reports please log on to http://www.slideshare.net/Cheil Worldwide_UAE
  • 3. Ⓒ  2014  Cheil Omni-what? #01 Ⓒ  2014  Cheil
  • 4. Ⓒ  2014  Cheil Just like Shopper Marketing was a mysteriously new term a few years ago, OMNI-CHANNELING is a new buzzword slowly penetrating the lives of shoppers and challenging their habits. Omni-channel approach lets consumers experience the brand and enjoy same benefits and offers across all channels, whether it’s a brick-and-mortar or mobile store. It will allow shoppers to seamlessly move across channels by giving them total power to decide where, how and when they want to shop. In no time will digitally-savvy and convenience-hungry shoppers get used to the new paradigm. #01 Example: The first signs of omni-channel approach in the Middle East are real-time chats and tweets with customer service staff, offered by some online retail channels. Other signs to watch out for are: online shopping in store, click and collect service, buy online return offline, in-store experience recreated online. Omni-what?  
  • 5. Ⓒ  2014  Cheil Windows of Dreams   #02 Macy’s window, early 20th century Ⓒ  2014  Cheil
  • 6. Ⓒ  2014  Cheil Store windows were traditionally used to attractively display merchandise. But not any more. Using high and low technologies pioneer retailers will be trying more and more to interact with shoppers’ senses through SIGHT, SOUND AND MOTION. Becoming windows to the world of dreams, store windows leverage on the shoppers’ shortening attention span and provide a momentarily escape snapping them out of the autopilot mode. The power of dreams is becoming a winning factor in switching shoppers from “I need” to “I want”. #02 Windows of Dreams     Example: Bloomingdale’s created a series of windows with magical theatrical vignettes activated by the passers-by placing their hands on the window that said: “Put your hands here”. Hollister replaced the windows with enormous screens streaming a view of an ocean, virtually teleporting shoppers to a beach and into the right mindset before they come in and shop for surfing gear.
  • 7. Ⓒ  2014  Cheil #03Malls Without Walls Ⓒ  2014  Cheil
  • 8. Ⓒ  2014  Cheil While Amazon will mark its 20th anniversary next year and numerous US malls are being torn down or converted to community premises, it’s only been a year since UAE’s first online shopping mall Tejuri.com went live. The new era of MALL CULTURE EVOLUTION has begun. Online stores existed before, however, the new-born online malls provide shopping experience that in many aspects surpasses their online or brick-and-mortar brothers. Shoppers are seriously weighing up the sensory pleasures of buying “stuff” against all the inconveniences of physical shopping. SMOOTH CONVENIENCE is king, with “cash on delivery” giving it a local twist.   Example: Research conducted by Tejuri revealed that the online shopping industry across the GCC was worth US$3.2 bn in 2010. But almost $2.2bn of that was going to websites outside the region. So Tejuri.com opened its virtual doors in March 2013 and in the first 9 months attracted over 1 million customers. #03 Malls without Walls   Source:TheNational
  • 9. Ⓒ  2014  Cheil `   #04Future Starts With ‘F’   Ⓒ  2014  Cheil
  • 10. Ⓒ  2014  Cheil Shopping seems no longer enough of a reason to go to shopping centers. Now it’s all about FUN, FOOD, FILMS, FAMILY & FRIENDS (and sometimes even FITNESS)! Jones Lang LaSalle experts believe that as a result of e-commerce, “stores will get bigger and become more like adventure parks that appeal to all of your emotions”. Middles Eastern malls are leading the change by re-aligning their value proposition. The mall of the future is no longer a shopping center but a leisure destination that turns a shopping trip into a day out with family or friends. Shoppers are seeking new experiences, entertainment, relaxation and customer service that pampers them. #04   Example : The super-regional mega Yas Mall will open in 2014 in Abu Dhabi. Its direct connection with Ferrari World will make it one of the world’s largest entertainment, leisure and retail destinations. Hosting 400 retail and F&B outlets, 20 state-of-the-art cinema screens and a family entertainment zone it will offer a new and unique experience. Future Starts with ‘F’   Source:AldarProperties,YasMalldeveloper
  • 11. Ⓒ  2014  Cheil #05We Are Neighbours   Ⓒ  2014  Cheil
  • 12. Ⓒ  2014  Cheil While malls are turning into leisure destinations, convenience stores are stepping up to fill the gap created in the NEIGHBOURHOOD SHOPPING. Home delivery, private label glossy food magazines, enhanced freshness offering, expanded assortment of local farm produce (e.g. purple cauliflower from Abu Dhabi) are enhancing the sense of community within a convenient environment. Those who still have a longing for the old-time bakeries and local butcher’s will be happy to see the return of customer intimacy and have more occasions to meet and greet a neighbour over a shopping basket.   Example: Majid Al Futtaim has launched My City Centre, a new neighbourhood retail concept focused on offering a mix of practical and lifestyle-oriented stores for residents in local communities. The stores will cater to a variety of immediate, daily needs from grocery shopping to banking and dining. #05 We Are Neighbours   Source:Emirates24/7
  • 13. Ⓒ  2014  Cheil #06Evocative & Aspirational   Ⓒ  2014  Cheil
  • 14. Ⓒ  2014  Cheil Once prompted by recession, the idea of concept stores has found its niche in some parts of the Arab world where wealthy customers have been identified as an “under-served market segment”. In a blink, the trend has spread, from perfumes to cupcakes. With the help of retail designers, boutiques are turning into mini galleries that tell a bespoke story with colours, textures, shapes, art pieces, and memorabilia. Evocative and aspirational environment not only glorifies the products but provides an aesthetic treat to the shoppers’ senses. Shoppers enjoy the artistic expression and uncluttered space, love the pampering experience and find it easier to justify the purchase. #06 Evocative & Aspirational     Example: TimeArt is a concept store opened recently in Abu Dhabi. Distinctly individual TimeArt houses only the finest of designer brands such as Aigner, Cerruti, Diesel, Just Cavalli, Karl Lagerfeld, Police, Marc Jacobs, and Michael Kors, to name a few. The management are planning to open 20+ stores by 2015. Source:GulfConnoisseur
  • 15. Ⓒ  2014  Cheil Choose Your Reward #07 Ⓒ  2014  Cheil
  • 16. Ⓒ  2014  Cheil Over the past few years wallets have been painfully growing in size but sadly not because of the increase in disposable income. It’s the loyalty cards that have been taking up all the space. Luckily, a totally new rewards approach is in town. On the understanding that not everyone needs air miles, it gives shoppers the freedom to choose the type of rewards they want and the way they earn them. Customers are showing a great interest in this new type of loyalty programmes having the freedom to redeem rewards they know will enjoy the most - from hotel stays to hypermarket vouchers. #07   Example: ADCB bank offers its credit card holders to redeem points in 8 lifestyle categories with 272 retail partners from bowling to jewelry. Office Depot rewards its members for buying, connecting and recycling. Choose Your Reward  
  • 17. Ⓒ  2014  Cheil Mars & Venus Go Shopping   #08 Ⓒ  2014  Cheil
  • 18. Ⓒ  2014  Cheil  According to Lakeside Shopping Centre (UK) research, men spend 26 hours per year waiting for their partners outside changing rooms. No wonder they don’t like shopping together. Then, all those bright lights, stuffy air, shopping bags… In the Middle East a man feels a bit better - he is not even allowed to come close to a ladies’ fitting room to give thumbs up on his partner’s new outfit. And in some countries there are no fitting rooms altogether. But the growing power of retail-tainment and openness to new products and retail concepts foster the increase in bonding time spent while shopping. Let’s wait and see what will be next thing to prompt the opposite sexes enjoy retail therapy together. Example : This shop sells only to couples and it might be coming to UAE soon! A 32-year-old mother-of-three, the owner of the first sex shop in the GCC is planning to expand her controversial business this year. She has signed a 3-year lease for a 2nd location for her Khadija Fashion House in Bahrain and says she’s also been approached by investors from Lebanon, Dubai and Qatar. The demand is strong – she receives 20 to 30 shipments a month. The products are sold only to genuine couples. Source:AlArabiyaNews #08Mars & Venus Go Shopping  
  • 19. Ⓒ  2014  Cheil ABOUT CHEIL Cheil is Korea’s largest and one of the world’s leading advertising groups. Established in 1973 with headquarters in Seoul, Cheil operates 54 offices in 43 countries around the globe and about 4,900 employees. Operating in Dubai since 2006, Cheil UAE is an integrated communication agency producing creative and added value solutions for its clients through “ideas that move” - Ideas that move people, move products, move brands, and move the world.
  • 20. Ⓒ  2014  Cheil To find out more about our “ideas that move” or more info on our trendspotting & strategic tools and how it can help move your business, log on to www.cheil.ae or contact: olga.k@cheil.com.