Presentation from Retail’s BIG Show, January 15-17, 2017. KATE ANCKETILL, CEO and Founder, GDR Creative Intelligence

1. Trends 2017: Retail Opportunity for
the Fast Changing World and
the Human Mind
KATE ANCKETILL, CEO and Founder, GDR CreaIve Intelligence

2. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
GDR is a retail trends consultancy,
delivering the information that
unlocks and empowers innovation.

3. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
You’re probably not going to
like what I’m going to say.
(Please don’t shoot the messenger).

4. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
1. The Big Picture
The fourth industrial revolution:
get used to exponential change
2. Consumer Expectations
Experiences in one sector set
expectations in all others
3. How you must adapt
Being forewarned is the first step…

5. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
The Fourth Industrial Revolution
The information revolution.
The fusion of physical, digital and
biological technologies, each advancing
at an exponential rate.

6. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
What were the other revolutions?
Steam and
mechanisation
1760-1840 1875-1925 1960-2000 2010-
Electricity and
mass production
Digital and
the internet
The fusion of
physical and digital

7. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
The Fourth Industrial Revolution
“How do we understand and shape
the new technological revolution,
which entails nothing less than a
transformation of humankind?”
Klaus Schwab,
Founder, World Economic Forum

8. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
The Fourth Industrial Revolution
of US jobs are at risk
due to automation within
the next 20 years
Osborne & Frey,
Oxford University
47%

9. GDR
CREATIVE
INTELLIGENCE
• 50 years of Moore’s law
• AI in the cloud
• Exponential machine
learning
• AI core to business models
Why now?

10. GDR
CREATIVE
INTELLIGENCE
What does this mean for retail?

11. GDR
CREATIVE
INTELLIGENCE Robots replacing workers
Location: Amsterdam Schipol
Airport
Spencer scans boarding passes and guides passengers between
departure gates for KLM. Tested March 2016.

12. GDR
CREATIVE
INTELLIGENCE Associate-free stores
Location: Seattle, USA Checkout-free shopping uses the same types of tech used in self-
driving cars: computer vision, sensor fusion, and deep learning.

13. GDR
CREATIVE
INTELLIGENCE Associate-free stores
Location: Seattle, USA Checkout-free shopping uses the same types of tech used in self-
driving cars: computer vision, sensor fusion, and deep learning.
•
• 3.5m people employed in the US
as cashiers in 2015
• The British Retail Consortium forecasts
1/3 of retail jobs will disappear by 2025
due to automation and the increasing
minimum wage

14. GDR
CREATIVE
INTELLIGENCE Self-driving vehicles
Location: USA Since October 2016, Tesla cars have had full self-driving capability at a
safety level “substantially greater” than that of a human driver.

15. GDR
CREATIVE
INTELLIGENCE Self-driving vehicles
Location: USA Since October 2016, Tesla cars have had full self-driving capability at a
safety level “substantially greater” than that of a human driver.
•
“If I had to guess at what our
biggest existential threat is,
it’s artificial intelligence.”
Elon Musk

16. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
Technological unemployment.
or
Radical abundance supplied by
super-intelligent machines.

17. GDR
CREATIVE
INTELLIGENCE Political and societal upheaval
Location: Switzerland,
June 2016
Swiss referendum for a universal basic monthly income of $2,555
rejected by 77% - but got the issue discussed.

18. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
There is a big upside…
if you’re the disruptor.

19. GDR
CREATIVE
INTELLIGENCE
DISTRIBUTED
SYSTEMS
MACHINE
LEARNING
CONVERSATIONAL
INTERFACES
ADAPTABLE
MECHANISMS
THE DIGITISED
POPULATION
DEVICE - DEVICE
NETWORKS
PERVASIVE
CONNECTIVITY
SMART
SENSORS
ADDITIVE
MANUFACTURE

20. GDR
CREATIVE
INTELLIGENCE
MACHINE
LEARNING
CONVERSATIONAL
INTERFACES
DISTRIBUTED
SYSTEMS
New forms of interaction
and service

21. GDR
CREATIVE
INTELLIGENCE Google Home
“By 2020, 30% of web
browsing sessions will
be done without a
screen.
By the end of 2017,
room-based screenless
devices should be in
more than 10 million
homes.”

22. GDR
CREATIVE
INTELLIGENCE Ubtech’s Alpha2 (Lynx) Robot
Location: China Domestic robot now integrated with Amazon Alexa.

23. GDR
CREATIVE
INTELLIGENCE KFC x Baidu
Location: Shanghai, China KFC hosts Baidu’s voice-activated robot Duer, which takes customer
orders and payment through speech.

24. GDR
CREATIVE
INTELLIGENCE IntelligentX
Location: UK
Design: 10x
Craft beer uses customer feedback via a Facebook Messenger chatbot
to create next batch.

25. SMART
SENSORS
ADDITIVE
MANUFACTURE
ADAPTABLE
MECHANISMS
GDR
CREATIVE
INTELLIGENCE
Adaptable service delivery
and manufacture

26. GDR
CREATIVE
INTELLIGENCE Starship autonomous delivery robots
Location: Global
Design: Starship Technologies
Self-driving delivery robots deliver two bags of shopping at 4mph
within a three mile radius

27. GDR
CREATIVE
INTELLIGENCE Starship autonomous delivery robots
Location: Global
Design: Starship Technologies
Self-driving delivery robots deliver two bags of shopping at 4mph
within a three mile radius

28. GDR
CREATIVE
INTELLIGENCE Zume Pizza
Location: US Delivery service uses robots to make and bake pizzas. The truck
houses 56 ovens that schedule the cooking to the delivery time.

29. GDR
CREATIVE
INTELLIGENCE AlpStories
Location: Zagreb, Croatia
Design: Brigada, Yaskawa
Corporation
Slovenian cosmetics brand has two product ranges: ‘Our Story’ and
‘Your Story.’ ‘Your Story’ products are created by the consumer and
made in-store while they wait – by a robot.

30. GDR
CREATIVE
INTELLIGENCE Unmade x Opening Ceremony
Location: London Knitwear brand lets customers personalise their purchase by choosing
the pattern and colour, and adding monograms.

31. GDR
CREATIVE
INTELLIGENCE Au Pont Rouge
Location: St Petersburg, Russia Exhibition retail space designed around a robotic system within a
restoration of an iconic 110-year-old department store.

32. GDR
CREATIVE
INTELLIGENCE
Personalisation and
autonomous activity
DEVICE - DEVICE
NETWORKS
PERVASIVE
CONNECTIVITY
THE DIGITISED
POPULATION

33. GDR
CREATIVE
INTELLIGENCE ICA grocery delivery
Location: Sweden Smart locks let supermarket staff deliver directly into homes, so they
can put food straight into the fridge.

34. GDR
CREATIVE
INTELLIGENCE ICA grocery delivery
Location: Sweden Smart locks let supermarket staff deliver directly into homes, so they
can put food straight into the fridge.

35. GDR
CREATIVE
INTELLIGENCE
DISTRIBUTED
SYSTEMS
MACHINE
LEARNING
CONVERSATIONAL
INTERFACES
ADAPTABLE
MECHANISMS
THE DIGITISED
POPULATION
DEVICE - DEVICE
NETWORKS
PERVASIVE
CONNECTIVITY
SMART
SENSORS
ADDITIVE
MANUFACTURE
New forms of
interaction and
service
Adaptable
service delivery
and manufacture
Personalisation
and autonomous
activity
Speak my
Language
Reflect my life
Serve me 24/7

36. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
2. Consumer Expectations
• Speak my language
• Simplify my life
• Serve me 24/7
These demands can only be met by
enhancing services with new technology.

37. GDR
CREATIVE
INTELLIGENCE Petrovich
Location: St Petersburg, Russia DIY store uses appropriate fulfilment methods for each purchases,
merging online and showroom experiences.

38. GDR
CREATIVE
INTELLIGENCE TokyWoky
Location: Global Live peer-to-peer chat, resulting in a conversion rate 4-6 times higher
than from non-users. 10,000 questions answered monthly.

39. INTERN
ATIONAL CU
STOMS
Transparent Pricing
We believe customers have the right
to know what their products cost to make.
MATERIALS
$27.83
TRUE COST
$45
$130 $225
TRADITIONAL RETAILEVERLANE
HARDWARE
$1.60
LABOR
$13.69
DUTIES
$1.72
TRANSPORT
$.60
GDR
CREATIVE
INTELLIGENCE Everlane transparent pricing
Location: USA Online clothing brand states garment pricing breakdown and margins,
comparing their goods with conventional retail brands.

40. GDR
CREATIVE
INTELLIGENCE Back Me Up app
Location: UK 17 to 49-year-olds insure up to three items by uploading a photo to the
app on a pay-as-you-go basis: for just $19.45 per month.

41. GDR
CREATIVE
INTELLIGENCE Battersea’s Looking For You
Location: London, UK
Design: Ogilvy & Mather UK
Billboard interacts with dog lovers - stray dog follows passers-by to
give emotional adoption message.

42. GDR
CREATIVE
INTELLIGENCE Scentbird
Location: US Monthly 8ml bottles of leading branded perfumes for a $14.95
subscription. 450 scents available, including Tom Ford and D&G.

43. GDR
CREATIVE
INTELLIGENCE Scentbird
Location: US Monthly 8ml bottles of leading branded perfumes for a $14.95
subscription. 450 scents available, including Tom Ford and D&G.

44. GDR
CREATIVE
INTELLIGENCE Martini Smart Cube
Location: UK
Design: AMV BBDO
Digital ice cube uses beacons to connect the glass to the bartender’s
app, automatically reordering another Martini.

45. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
3. How you must adapt:
Embrace AI and get in front. Plan
for a reduced workforce, anticipate
further erosion of the middle class
Automation: when, not if

46. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
3. How you must adapt:
Ethical transparency, individualised
products and services, full visibility
of the supply chain, 24/7 seamless
availability
Consumer expectations

47. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
3. How you must adapt:
Service will require enhanced
employees, using nuanced
emotional intelligence
Unleash service ‘centaurs’

48. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
Questions discussed at GDR’s NRF Salons
• Can we really have one-to-one connections with
everyone?
• What does this mean for the look and feel of retail
space?
• How does this impact service and the model by
which we recruit and train staff?
• Does the customer always know what they want?
• How do we make chatbots work?
• Isn’t low tech customer awareness just as important?

49. An Introduction to GDR
GDR
CREATIVE
INTELLIGENCE
GDR Creative Intelligence
Dilke House, 1 Malet Street,
London WC1E 7J
Tel: +44 207 580 5589
Kate Ancketill, CEO and
Founder
kate@gdruk.com

50. GDR
CREATIVE
INTELLIGENCE
We want to help you form more meaningful
relationships with your customers in a rapidly
changing and competitive world.

51. GDR
CREATIVE
INTELLIGENCE
How do we do this?
We are a strategic partner that helps turn your
insights into meaningful action for your
customers.
Innovation research: we watch big and small
companies, in your sector and outside of it, all
over the world; and we investigate how they
innovate. We hear it first from the creative
agencies behind the most innovative concepts,
who help us understand the insights behind the
ideas.
Strategic consultation: we learn from the best
(and worst) innovators and we apply those
lessons to your strategic priorities.

52. GDR
CREATIVE
INTELLIGENCE
GDR has a client base that covers many categories,
mass-market and luxury tiers and global geographies.
This informs and inspires our wide perspective.

53. GDR
CREATIVE
INTELLIGENCE
What makes us different?
We look at innovation first - those responding to
existing and emerging needs - rather than
consumer research.
We don’t try and make the world fit our view.
We help you develop the ideas that make a
difference to your customers.
We’re not a qual/quant research agency, and we
don’t execute; we impartially connect you to the
agencies who can deliver for you.

54. GDR
CREATIVE
INTELLIGENCE
We want to make you feel…
Confident that you know how to grow and
develop your business, and crucially, your
customer relationships.
Reassured that you’re focussed on the change
that is important, and you can dismiss the
change that isn’t.
Full of amazing ideas for the future of your
industry.
And most importantly, we’ll feel like partners:
you’ll trust us to push you forward.

55. GDR
CREATIVE
INTELLIGENCE
What does our partnership look like?
We build your strategic concerns into our
research programme.
We become your advocate throughout our
ongoing research.
We bring our newest findings to you four times
a year, while the change is fresh and the
opportunity untapped.
But we also know that every team is different,
and has different needs; we’re happy to build the
partnership that does what you need it to do.

56. GDR
CREATIVE
INTELLIGENCE
What does our partnership look like?
A GDR partnership combines our services in
one tailored package that builds a better
innovation culture through regular, shared
insight and inspiration.
Clients get all-year-round access to a
dedicated Senior Consultant who uses your
key concerns and initiatives as a filter to focus
content, insight, and the way we work with you.
Combining quarterly in-person sessions,
research and our digital workspace, the
engagement is a comprehensive service for
inspiring a business.

57. GDR
CREATIVE
INTELLIGENCE
We offer our clients a range of additional services
beyond our partnership packages.
We recommend an approach based on your
specific challenges, from individual project needs,
to training and development programmes and
long-term strategic initiatives.
We can be as hands on or hands off as you need.
Conference
Speaking
Field
Expeditions
Innovation
Workshops
Project
Consultancy

58. GDR
CREATIVE
INTELLIGENCE
GDR is an independently-owned global consultancy with 20
years experience
GDR’s Founder and CEO, Kate Ancketill, leads our team of 15
people based in London and New York. We have a diverse
range of backgrounds and experience including brand
design, product and brand development, consumer research,
editorial and futurism.
London:
Will Seymour, Senior Consultant will@gdruk.com
Sophie Corcut, Senior Consultant sophie@gdruk.com
Kate Ancketill, CEO kate@gdruk.com
Felix Scarlett, Insight Director felix@gdruk.com
New York:
James Mullan, SVP Global Innovation james@gdruk.com
GDR Creative Intelligence, 1 Malet Street, London WC1E 78JN
+44 207 580 5589 www.gdruk.com