The Tomorrow Store
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  • 1. The Tomorrow Store The Dawn of the Mega-systems Friday, June 7, 2013
  • 2. Friday, June 7, 2013
  • 3. The Tomorrow Store : The Dawn of the Mega-systems ‘Technology and platform shifts mean we will transform how we sell, market and innovate in the next five years. There will be lots of room for everyone’ Daniel Burrus, futurist Friday, June 7, 2013
  • 4. The Tomorrow Store : The Dawn of the Mega-systems The Dawn of the Mega-systems Apple, Amazon, Alibaba, Weibo, Google and Facebook are no longer simply trading platforms. They are the megasystems or mega-malls of tomorrow. As life becomes more digital, we are fuelling the rise of these all-encompassing companies – and heralding the dawn of a new era Data.anatomy by Ryoji Ikeda for Honda Civic, Kraftwerk, Berlin Friday, June 7, 2013
  • 5. The Tomorrow Store : The Dawn of the Mega-systems Amazon’s 2012 revenue was $61bn (€46.2bn, £40bn) thanks to sales across 40 product categories including media, technology, wine, cars, fashion, beauty and luxury Google’s 2012 revenue exceeded $50bn (€37.9bn, £32.8bn) across its search, advertising, YouTube, Blogger, Android and email platforms Google data centre interior, US Friday, June 7, 2013
  • 6. The Tomorrow Store : The Dawn of the Mega-systems Apple is now the most valuable company in history thanks to its synched-up hardware and software Facebook ranked as the top web destination in the US in December 2012. The network made $4.3bn (€3.3bn, £2.8bn) from advertising in 2012 across fashion, luxury, technology, travel, food and film Big data tunnel art from Big Data conference, UK Friday, June 7, 2013
  • 7. The Tomorrow Store : The Dawn of the Mega-systems Strange days indeed, when companies selling weightless products alongside solid ones now dominate retail as brands such as HMV, Comet, Borders, Jessops and Billabong have learned to their cost. ‘When the mega-systems shift strategy, it can really affect any company that relies on them’ Greg Sterling, Sterling Marketing Intelligence Data.scan [No 1–9] by Ryoji Ikeda for MU, the Netherlands Friday, June 7, 2013
  • 8. The Tomorrow Store : The Dawn of the Mega-systems Strange days indeed, when companies selling weightless products alongside solid ones now dominate retail as brands such as HMV, Comet, Borders, Jessops and Billabong have learned to their cost. ‘When the mega-systems shift strategy, it can really affect any company that relies on them’ Greg Sterling, Sterling Marketing Intelligence Data.scan [No 1–9] by Ryoji Ikeda for MU, the Netherlands Friday, June 7, 2013
  • 9. The Tomorrow Store : The Dawn of the Mega-systems Convenience culture Computing speeds are up 200,000-fold since 1980. We now buy media in seconds. Amazon and eBay offer same-day delivery Google Now lets shoppers check local store inventories in real time eBay mobile uses software that enables users to close a sale within two minutes Twheel by Fluid Interaction, Finland Friday, June 7, 2013
  • 10. The Tomorrow Store : The Dawn of the Mega-systems The gilded cage? ‘Google and Apple did not focus on the technology but on the business model.’ Dr David Cleevely, founding director, the Centre for Science and Policy at Cambridge University Their business model takes the form of ‘gilded cages’ that lock users in by limiting the transferability of products, while wrapping them in a social web that eases their access to friends, families and statusdriven fanbases AKT Motorcycle Facebook House ad by Rep/Grey Friday, June 7, 2013
  • 11. The Tomorrow Store : The Dawn of the Mega-systems The new Netorati Mega-systems also benefit from the network effect. This is why Twitter can build 500m monthly users and generate revenues of $350m (€267.8m, £234.1m) in 2012 in only six years. Arcadia credits much of its £33.8m ($51.5m, €39.1m) profit rise in 2012 to Topshop’s social media presence, specifically its 750,000 Facebook fans A Million Times by Humans Since 1982 Friday, June 7, 2013
  • 12. The Tomorrow Store : The Dawn of the Mega-systems The Age of Everyware Connected devices are gathering and transmitting data all the time. By 2020 there will be 50bn connected devices Source: Cisco As information on consumer behaviour streams in from connected devices the megasystems – and the brands they collaborate with – are doing all they can to mine it The Lifelogging clip-on camera by Memento takes two photos per minute, recording the wearer’s life Friday, June 7, 2013
  • 13. The Tomorrow Store : The Dawn of the Mega-systems The Age of Everyware Connected devices are gathering and transmitting data all the time. By 2020 there will be 50bn connected devices Source: Cisco As information on consumer behaviour streams in from connected devices the megasystems – and the brands they collaborate with – are doing all they can to mine it The Lifelogging clip-on camera by Memento takes two photos per minute, recording the wearer’s life Friday, June 7, 2013
  • 14. The Tomorrow Store : The Dawn of the Mega-systems The dawn of big data Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives. Facebook Graph Search and Google Local combine social networking with search Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments Friday, June 7, 2013
  • 15. The Tomorrow Store : The Dawn of the Mega-systems The dawn of big data Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives. Facebook Graph Search and Google Local combine social networking with search Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments Friday, June 7, 2013
  • 16. The Tomorrow Store : The Dawn of the Mega-systems The dawn of big data Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives. Facebook Graph Search and Google Local combine social networking with search Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments Friday, June 7, 2013
  • 17. The Tomorrow Store : The Dawn of the Mega-systems The dawn of big data Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives. Facebook Graph Search and Google Local combine social networking with search Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments Friday, June 7, 2013
  • 18. The Tomorrow Store : The Dawn of the Mega-systems The dawn of big data Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives. Facebook Graph Search and Google Local combine social networking with search Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments Friday, June 7, 2013
  • 19. The Tomorrow Store : The Dawn of the Mega-systems Mega-mall tactics Against these drivers, and the push of the mega-systems into our daily lives, we are noting a new paradigm in retail, social commerce and ‘blurredsector’ selling: Showrooming Gated retail Walled rewards In system-privileges All are reactions to, or protests against, the ubiquity of the mega-systems Equinix SY3 data centre, Sydney Friday, June 7, 2013
  • 20. The Tomorrow Store : The Dawn of the Mega-systems Mega-mall tactics Against these drivers, and the push of the mega-systems into our daily lives, we are noting a new paradigm in retail, social commerce and ‘blurredsector’ selling: Showrooming Gated retail Walled rewards In system-privileges All are reactions to, or protests against, the ubiquity of the mega-systems Equinix SY3 data centre, Sydney Friday, June 7, 2013
  • 21. The Tomorrow Store : The Dawn of the Mega-systems Showrooming People still like to visit bricksand-mortar (BAM) stores but now want to search online for the best deal first. This has led to the rise of showrooming. ‘People now carry a global showroom in their pocket.’ Carrie Bienkowski, head of buyer experience, eBay The Amazon app lets consumers compare prices online while in-store Homes Up is a Chinese store solely for showrooming Friday, June 7, 2013
  • 22. The Tomorrow Store : The Dawn of the Mega-systems Showrooming People still like to visit bricksand-mortar (BAM) stores but now want to search online for the best deal first. This has led to the rise of showrooming. ‘People now carry a global showroom in their pocket.’ Carrie Bienkowski, head of buyer experience, eBay The Amazon app lets consumers compare prices online while in-store Homes Up is a Chinese store solely for showrooming Friday, June 7, 2013
  • 23. The Tomorrow Store : The Dawn of the Mega-systems Showrooming People still like to visit bricksand-mortar (BAM) stores but now want to search online for the best deal first. This has led to the rise of showrooming. ‘People now carry a global showroom in their pocket.’ Carrie Bienkowski, head of buyer experience, eBay The Amazon app lets consumers compare prices online while in-store Homes Up is a Chinese store solely for showrooming Friday, June 7, 2013
  • 24. The Tomorrow Store : The Dawn of the Mega-systems Anti-Amazonians In protest against Amazon’s app, BAM stores are fighting back with targeted antiAmazon tactics. Best Buy has developed bar codes that are incompatible with Amazon’s app Target and Walmart have banned sales of Amazon’s Kindle in their stores 56 Broken Kindle Screens by Sebastian Schmieg and Silvio Lorusso Friday, June 7, 2013
  • 25. The Tomorrow Store : The Dawn of the Mega-systems Gated retail But not all retailers are against mega-systems. Some are using the walled-garden model to offer membersonly style benefits. Soldsie enables Facebook sales using its Comment tool YSL Beauty and Lacoste released Facebook-only limited editions Mercedes-Benz sold a limited-edition model of the Smart car via Sina Weibo YSL Devoted to Fans #1 cosmetics Friday, June 7, 2013
  • 26. The Tomorrow Store : The Dawn of the Mega-systems Walled rewards The new targeting means consumers can be given tailored rewards. ASOS offered Facebook fans an exclusive sale that resulted in a 67% spend increase Sports network AEG’s AXS Invite service lets ticket buyers save seats for friends Malaysia Airlines’ MHbuddy app enables passengers to share itineraries with friends ASOS Facebook Summer Sale 2012 Friday, June 7, 2013
  • 27. The Tomorrow Store : The Dawn of the Mega-systems In-system privileges American Express’s pay-bytweet enables customers to pay for goods within Twitter Google Local runs events that bring social networking into the real world for Google Plus members and Google Hangout offers access to exclusive events Google Hangout Live at Topshop Unique autumn/winter 2013 Friday, June 7, 2013
  • 28. The Tomorrow Store : The Dawn of the Mega-systems Return of the retailers Stores are fighting back against online mega-malls with free returns, payment booths, drive-through customer service centres and local pick-up sites. Shoprunner works with retailers to offer price-match, free shipping and free returns Analogue brands such as Polaroid are bringing new media in-store to extend their lifespan The Polaroid Fotobar at CES 2013 lets people convert digital photos into high-quality prints in-store Friday, June 7, 2013
  • 29. The Tomorrow Store : The Dawn of the Mega-systems Return of the retailers Stores are fighting back against online mega-malls with free returns, payment booths, drive-through customer service centres and local pick-up sites. Shoprunner works with retailers to offer price-match, free shipping and free returns Analogue brands such as Polaroid are bringing new media in-store to extend their lifespan The Polaroid Fotobar at CES 2013 lets people convert digital photos into high-quality prints in-store Friday, June 7, 2013
  • 30. The Tomorrow Store : The Dawn of the Mega-systems Clicks and mortar Online retailers, including mega-systems, are realising how important offline retail is to the consumer experience. Net-A-Porter created a popup Lagerfeld boutique and is launching a print magazine eBay has started hosting physical pop-up shops Google, despite denials, is planning stand-alone stores Net-A-Porter pop-up to launch Karl Lagerfeld collection, New York Friday, June 7, 2013
  • 31. The Tomorrow Store : The Dawn of the Mega-systems Clicks and mortar Online retailers, including mega-systems, are realising how important offline retail is to the consumer experience. Net-A-Porter created a popup Lagerfeld boutique and is launching a print magazine eBay has started hosting physical pop-up shops Google, despite denials, is planning stand-alone stores Net-A-Porter pop-up to launch Karl Lagerfeld collection, New York Friday, June 7, 2013
  • 32. The Tomorrow Store : The Dawn of the Mega-systems ‘Pure play online retailers need to be flexible and think about opening physical stores.’ Robert Gregory, global research director, Planet Retail Etsy’s first retail space combined shopping with convivial experiences The Etsy retail space in Brooklyn, New York Friday, June 7, 2013
  • 33. The Tomorrow Store : The Dawn of the Mega-systems ‘Pure play online retailers need to be flexible and think about opening physical stores.’ Robert Gregory, global research director, Planet Retail Etsy’s first retail space combined shopping with convivial experiences The Etsy retail space in Brooklyn, New York Friday, June 7, 2013
  • 34. The Tomorrow Store : The Dawn of the Mega-systems Total retail Established brands are also piggy-backing on the megasystems’ multi-channel reach. Topshop live-streamed its catwalk show on Google and leveraged social buzz through its Be The Buyer app Topshop’s multi-platform catwalk show with Google Friday, June 7, 2013
  • 35. These changes have likewise ushered in new behaviours and payment methods among brands, businesses and consumers Google Wallet payment app Friday, June 7, 2013
  • 36. VR/QR culture What happens online is changing the way we shop for things in-store. Retailer C&A Brazil created a link between the digital and physical worlds with Facebookconnected coat hangers. The hangers show how many likes a garment has had and people in-store can see how popular items are before they buy them C&A Fashion Likes, Brazil Friday, June 7, 2013
  • 37. Social selling A microeconomy is springing from new social platforms. ‘As social media becomes the biggest area of online footfall it makes sense to fish where the fish are’ Paul Smith, managing director of Techlightenment Fantasyshopper.com Friday, June 7, 2013
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  • 40. Friday, June 7, 2013
  • 41. M-banking The ability to make instant payments and changes to accounts on smartphones are changing how we bank. : M-banking will attract 115m users in Europe and 86m users in North America by 2015 Source: Berg Insight Barclays’ Pingit app enables people to send money using their mobiles. It has now been extended to the African market Pingit app by Barclays Friday, June 7, 2013
  • 42. M-commerce The ability to make purchases through mobile phones is putting the store into the customer’s pocket. : Mobile payment transactions will increase to $600bn worldwide by 2016, up from $172bn this year Source: Gartner Nearly 300m smartphones, or one in five globally, will be NFC-enabled by 2014 Source: Juniper Research Card Case app by Square Friday, June 7, 2013
  • 43. The world of buying and selling will change dramatically as a result of these impacts Glamour Apothecary Wall, New York Friday, June 7, 2013
  • 44. Glamour Apothecary Wall, New York Friday, June 7, 2013
  • 45. New retail formats Cashless payments will become the lynchpin of the components that make up the stores of tomorrow. ‘We can use digital technology in many ways to enhance retail. It’s a great opportunity, not a threat’ David Judge, co-founder, creative agency StartJudgeGill PayTouch System by PayTouch Friday, June 7, 2013
  • 46. New retail formats Cashless payments will become the lynchpin of the components that make up the stores of tomorrow. ‘We can use digital technology in many ways to enhance retail. It’s a great opportunity, not a threat’ David Judge, co-founder, creative agency StartJudgeGill PayTouch System by PayTouch Friday, June 7, 2013
  • 47. Online fashion retailer Net-A-Porter used an augmented shopping window to merge online and offline. Visitors to Vogue Fashion’s Night Out in 2011 could use smartphones and iPads to view information on items in the window and buy them Net-A-Porter wall, London Friday, June 7, 2013
  • 48. Trader nation Distinctions between retail and wholesale vendors and buyers will merge, as smartphones enable people to buy and sell anywhere. Design agency Fuseproject has created PayPal Here, a system for electronic payments company PayPal that lets small businesses accept real-world card payments PayPal Here by Fuseproject Friday, June 7, 2013
  • 49. Pay with Square app by Square Friday, June 7, 2013
  • 50. Pay with Square app by Square Friday, June 7, 2013
  • 51. Pay with Square app by Square Friday, June 7, 2013
  • 52. Pay with Square app by Square Friday, June 7, 2013
  • 53. Generation M A generation of people will emerge who have never had, and will never have, access to a landline phone or fixed-place computer. Their expectations and attitudes will shape the market in the next 10 years. ‘Apps, payment systems and all content will be developed foremost for mobile devices that we hold in our hands’ Amber Case, cyborg anthropologist Tesco Homeplus, South Korea Friday, June 7, 2013
  • 54. Co-commerce Open sourcing means that customers are the new R&D team. Social media has turned customers into the new marketers. And now with Co-commerce customers can be the new retailers. Nuji is a social shopping network that lets people curate their own shops online. Users earn discounts from retail partners when they sell items Nuji.com Friday, June 7, 2013
  • 55. Co-commerce Open sourcing means that customers are the new R&D team. Social media has turned customers into the new marketers. And now with Co-commerce customers can be the new retailers. Nuji is a social shopping network that lets people curate their own shops online. Users earn discounts from retail partners when they sell items Nuji.com Friday, June 7, 2013
  • 56. Co-commerce Open sourcing means that customers are the new R&D team. Social media has turned customers into the new marketers. And now with Co-commerce customers can be the new retailers. Nuji is a social shopping network that lets people curate their own shops online. Users earn discounts from retail partners when they sell items Nuji.com Friday, June 7, 2013
  • 57. These practices will usher in a new ecosystem of buying and selling Creative Factory customisation platform by Spies & Assassins for Puma Friday, June 7, 2013
  • 58. Creative Factory customisation platform by Spies & Assassins for Puma Friday, June 7, 2013
  • 59. Creative Factory customisation platform by Spies & Assassins for Puma Friday, June 7, 2013
  • 60. Creative Factory customisation platform by Spies & Assassins for Puma Friday, June 7, 2013
  • 61. Face to place Frictionless payments will evolve from mobile wallets to technologies that recognise you as you walk into a store. The Facedeals system recognises people as they enter a store. It then offers them deals specific to them Facedeals facial recognition system by RedPepper, US Friday, June 7, 2013
  • 62. The Tomorrow Store : The Dawn of the Mega-systems Phy-gital mega-systems Despite retailers’ current backlash against the megasystems, the latter will own much of the infrastructure of connected commerce as it develops. Total retail, as we call this, will be synaesthetic and immersive, and phy-gital shopping will become seamless under the mega-systems Google office interiors, Moscow and Tel Aviv Friday, June 7, 2013
  • 63. The Tomorrow Store : The Dawn of the Mega-systems Phy-gital mega-systems Despite retailers’ current backlash against the megasystems, the latter will own much of the infrastructure of connected commerce as it develops. Total retail, as we call this, will be synaesthetic and immersive, and phy-gital shopping will become seamless under the mega-systems Google office interiors, Moscow and Tel Aviv Friday, June 7, 2013
  • 64. The Tomorrow Store : The Dawn of the Mega-systems Branded lives Through the Internet of Things, mega-systems will further penetrate our lives. As home appliances, cars and clothes become connected, our surroundings will belong to one or another walled garden. We will live entirely through tools synchronised with our chosen eco-system enabling us – and the mega-systems that touch us – to understand and exploit all deep data Google and BERG’s connected products are the forerunners to the Internet of Things Friday, June 7, 2013
  • 65. The Tomorrow Store : The Dawn of the Mega-systems Branded lives Through the Internet of Things, mega-systems will further penetrate our lives. As home appliances, cars and clothes become connected, our surroundings will belong to one or another walled garden. We will live entirely through tools synchronised with our chosen eco-system enabling us – and the mega-systems that touch us – to understand and exploit all deep data Google and BERG’s connected products are the forerunners to the Internet of Things Friday, June 7, 2013
  • 66. The Tomorrow Store : The Dawn of the Mega-systems Predictive retail Retailers will use data profiles to know customers’ tastes so closely that they will send them products directly. Payment will be taken automatically via presynchronised accounts. Deliveries will be timed to fit each customer’s calendar, accessible online via the omnisynchronised mega-systems Smithfield Case uses individual preferences to compile personalised fashion packages for men in their 30s and 40s according to their lifestyle Friday, June 7, 2013
  • 67. The Tomorrow Store : The Dawn of the Mega-systems Align your brand with the values and style of the mega-systems Introduce limited editions that take advantage of walled gardens Piggy-back onto the mega-systems to offer tailored rewards Use dynamic and streamlined visualisation styles to demystify data Bring the digital into physical retail outlets with live streaming and location-responsive apps Integrate the mega-system aesthetic into your graphics and retail design Consider creating apps that side-step the mega-systems Design your products to connect with the mega-systems through the Internet of Things Understand the smartphone as a mobile wallet, tracker and micro-retailer Friday, June 7, 2013
  • 68. The Tomorrow Store The Dawn of the Mega-systems Friday, June 7, 2013