The retail landscape has changed dramatically over the last 10 years. New technologies have forced retailers to rethink their business models and the way they will engage with consumers and shoppers in the future. “I think that a lot of retailers are facing up to the fact that the world is omni-channel or multichannel. The point is that retailers have to realize that they need to engage with shoppers whenever and wherever those shoppers are thinking about purchasing.” says Bryan Roberts from Kantar Retail in the latest Brand Z report about the most valuable Retailer Brands in 2012. During that period of time we’ve seen a pure-play e-commerce retailer, Amazon, become the most valuable retailer brand in the world. The role of the physical store has changed – moving away from merchandising products to offering unique brand experiences. To put it in the words of Vittorio Radice, CEO of leading Italian department store La Rinascente, “We want to be the place where we know that the people shopping there are not actually shopping for products, they‘re shopping for an experience.” This transformation is happening everywhere. Discounters have recognized the need to reinvent themselves and provide better quality and service instead of just cheap prices as evidenced by the move of Aldi Süd in Germany who is planning to grow the share of branded products in its assortment to as much as 25%. Shoppers should no longer be called shoppers if one thinks about the traditional definition: “One who visits stores in search of merchandise or bargains.” The times when people were searching for just merchandise or bargains are gone. The explosion of social media and the many possible brand interactions have created a new breed of shoppers. These people want to have a say in what is sold, they join forces to gain better prices and are more than happy to share their experiences if they feel listened to. So how do retail brands strive in such an environment? How will they engage with the new breed of shoppers? What does the future of retail communication look like? These are just some of the questions we will raise in this study and we hope that you’ll find the answers interesting.

2. New:
From Retail to WE-Tail: the
future of retail communication.

3. The retail experts that contributed to
this study.
Andreas Conze | Head of Marketing
Michael Schellenberger | Managing Director
Dr. Adrian Kiehn | Member of the Management board
Marcus Haus | Marketing Director
Dominic Burch | Head of PR & Social Media
Bryan Roberts | Retail Insights Director
Steve Mader | Senior Retail Analyst – Digital
Ruth Leach | PR responsible for Social Media

4. Foreword
The retail landscape has changed dramatically over the last 10 years. New technologies have forced
retailers to rethink their business models and the way they will engage with consumers and shoppers in the
future. “I think that a lot of retailers are facing up to the fact that the world is omni-channel or multichannel.
The point is that retailers have to realize that they need to engage with shoppers whenever and wherever
those shoppers are thinking about purchasing.” says Bryan Roberts from Kantar Retail in the latest Brand Z
report about the most valuable Retailer Brands in 2012.
During that period of time we’ve seen a pure-play e-commerce retailer, Amazon, become the most valuable
retailer brand in the world. The role of the physical store has changed – moving away from merchandising
products to offering unique brand experiences. To put it in the words of Vittorio Radice, CEO of leading
Italian department store La Rinascente, “We want to be the place where we know that the people shopping
there are not actually shopping for products, they‘re shopping for an experience.”
This transformation is happening everywhere. Discounters have recognized the need to reinvent themselves
and provide better quality and service instead of just cheap prices as evidenced by the move of Aldi Süd in
Germany who is planning to grow the share of branded products in its assortment to as much as 25%.
Shoppers should no longer be called shoppers if one thinks about the traditional definition: “One who visits
stores in search of merchandise or bargains.” The times when people were searching for just merchandise
or bargains are gone. The explosion of social media and the many possible brand interactions have created
a new breed of shoppers. These people want to have a say in what is sold, they join forces to gain better
prices and are more than happy to share their experiences if they feel listened to.
So how do retail brands strive in such an environment? How will they engage with the new breed of
shoppers? What does the future of retail communication look like? These are just some of the questions we
will raise in this study and we hope that you’ll find the answers interesting.
Alessandro Panella
Managing Director at Grey Worldwide

5. Communication has turned upside down.

6. From thinking in communication channels ...
AWARENESS CONSIDERATION SELECTION PURCHASE LOYALITY
PAGE 6

7. … to a world of opportunities to engage.
UPLOAD PICS
DISCUSS OF
VIDEO PRODUCTS
ONLINE
VIEW VIDEO
SEE TV AND
OOH ADS
RESEARCH
PRODUCT
VISIT A PURCHASE
STORE PRODUCT
READ
FACEBOOK
FEEDS
INTERACT READ
WITH RICH REVIEWS
MEDIA AD
CUSTOMIZE A
PRODUCT CREATE/
UPLOAD
VIDEO
SEND MOBILE
PIC
PAGE 7

8. From one way communication …
PAGE 8

9. ... to dialogue.
TALK SHARE LISTEN
PURCHAS
E
PAGE 9

10. Everybody talks with everyone about everything.
And all expect answers.
PAGE 10

11. GREY
The Shitstorm*
*Germany‘s „Anglicism“ of the year 2011
Shitstorm
PAGE 11

12. The truth will always win*
* but will not always appreciated. You can ask Mr. Assange.
PAGE 12

13. Everyone gets checked upon: politicians...
*Guttenberg and other false prophets.
PAGE 13

14. ... just like brands and companies.

15. The Consumer

16. The Consumer is the Boss*
*(A.G. Lafley, P&G 2000).

17. You can always sell cheap*
*but the consumer will always find someone cheaper.

18. The Price.
The end of an era.

19. Retailers are using new technologies
to make price less relevant.

20. The best way to predict the future is
to create it.*
*Peter F. Drucker

21. Three steps towards a bright future.
RETAIL ? ?
PAGE 21

22. Step 1:
Brand differentiation.

23. The most successful retailers
are brands.
Brand Value $M Brand Contribution Brand Momentum Brand Value
Change
1 Walmart 34,436 2 5 -8%
2 Amazon 34,077 3 10 -9%
3 Tesco 18,007 4 9 -18%
4 The Home Depot 12,968 2 5 31%
5 eBay 12,662 3 8 18%
6 Target 10,506 3 4 -16%
7 ALDI 9,310 2 6 1%
8 IKEA 9,206 3 9 26%
9 Carrefour 7,836 3 5 -43%
10 Auchan 6,799 3 9 -13%
Source: BrandZ Most Valuable Global Retail Brands 2012

24. Total brand promise*
*REWE - One brand promise across all touch points: Everyday a little better
.

25. A way of living.
Instead of just furniture*.
*Ikea sell more than just furniture – it turns a house into
the home of your life
.

27. Delivering happiness.
Not only shoes*.
*Zappos mission is to WOW consumers by delivering happiness!

29. Globetrotter:
kein Laden, sondern eine Erlebniswelt.
GREY
Discovery.
Not just a store*.
Soll hier noch was stehen?
*Globetrotter is not your regular store, it’s a world to discover.
PAGE 29

30. Reading in the past.

31. Reading today.

32. Many brands have taken the first step.
RETAIL ? ?
• Product & price
driven
• Brand differentiation
• Brand superiority
PAGE 32

33. Being one of many retailer brands won’t be enough to differentiate
in the future.
PAGE 33

34. Step 2:
Insight-driven and customized brand experience.
RETAIL YOU-TAIL ?
• Product & price
driven
• Brand differentiation
• Brand superiority
PAGE 34

35. Insights need to have a human truth at their core.
PRE-BUY SHOPPER CATEGORY
INSIGHTS INSIGHTS INSIGHTS
CONSUMER/
RETAIL
BRAND
INSIGHTS
INSIGHTS
PAGE 35

36. “You’re not you when you’re hungry”.*
*Snickers

38. Headline
Innovative technologies & big data help uncover new insights.
PAGE 38

39. Tesco transforms customer information into unique shopper insights…
Shopper Insight:
Customer card:
+ Reseacrh results about
When it comes to baby
products, mothers shop at
pharmacies, because they trust
Information about products that products that are hardly them more than Tesco.
are bought regularily. bought, for example young
mothers buy rarely products for
babies at Tesco.
Source: McKinsey Quarterly “capitalizing on customer insights”
PAGE 39

40. … and use these insights for innovating in
products/services.
*Result: +40% business volume within 3 years.
Source: McKinsey Quarterly “capitalizing on customer insights“

41. Asda – Customer feedback
influences the choice of suppliers.

42. Retailers are putting social media at the heart of the business to drive
shopper-centricity.
Human-
resources
Investor-
Insight
relations
Social “We realized that everything (including payment) will
eventually be condensed into mobile phones, so
Marketing Direct embarking on a social media strategy made total
sense.”
Customer
Buying
service
Source: Kantar Retail
PAGE 42

43. NIKEiD: shoes have to fit the outfit.

44. Domino‘s Pizza: create your personal
Pizza with your own hands.

45. Turning the subway into a
touchscreen supermarket *
*Home plus (Tesco‘s name in Korea) let‘s people shop in a virtual market while waiting for the tube .

46. The supermarket navigator*
*SK Telecom navigates shoppers through supermarkets.
.

47. YOU-Tail brands create
relationships...

48. … that turn shoppers into fans.

49. You-Tail brands turn shoppers into fans.
RETAIL YOU-TAIL ?
• Product & price • Insight-driven
driven • Individual
• Brand differentiation • Engagement
• Entertainment
• Brand superiority
• Experience
SHOPPER FANS
PAGE 49

51. WE-Tail brands create a whole new
relationship to shoppers

52. The future of retail communication.
RETAIL YOU-TAIL WE-TAIL
• Product & price • Insight-driven
driven • Individual
• Brand differentiation • Engagement
• Entertainment
• Brand superiority
• Experience
SHOPPER FANS
PAGE 52

53. Converse turns fans into shoe
designers.

54. Conrad turns fans into product
developers.

55. Best Buy turns fans into in store designers.
PAGE 55

56. Loblaw: Fans design and improve
own label brands.

57. Asda: Fans help make the products
taste better.

58. Amazon turns fans into “traders”.

59. McDonalds: The first crowded
„burger“.

60. Tesco and Ferrero invite shoppers to
become the new face of Kinder chocolate
in the UK.

61. Carrefour lets shoppers decide about
the next promotion.

62. The People’s Supermarket turns
clients into part-time employees.

63. The future of retail communication.
RETAIL YOU-TAIL WE-TAIL
• Product & price • Insight-driven • We-Insight-driven
driven • Individual • Co-Creation
• Brand differentiation • Engagement
• Entertainment
• Brand superiority
• Experience
SHOPPER FANS PARTNER
PAGE 63

64. Where is your brand on the journey from RETAIL to WE-TAIL?
Let’s discuss.
RETAIL YOU-TAIL WE-TAIL
? ? ?
PAGE 64

65. Alessandro Panella
Managing Director & Head of Strategic Planning
Grey Worldwide
Platz der Ideen 1
40476 Düsseldorf
E-mail: alessandro.panella@grey.de
F: +492113807444
M: +491726634941

66. Copyright
GREY
All the ideas presented and/or parts thereof and their implementation shall be the intellectual property of GREY Worldwide GmbH, for which we claim the copyright. They are
initially only presented confidentially in the context of the relationship of trust created with the customer by the envisaged contract.
Any direct and/or indirect exploitation and/or emulation of any of the ideas and/or parts thereof, implementation thereof and/or the use of any documentation provided shall only
be permissible after our consent has been provided in writing. The same shall apply for any modifications that may be made. Layout pictures and/or other picture material shall
be used only by way of example to illustrate the visual design, but shall not be binding for the final implementation.
Their use in the context of the final implementation and/or production shall be permitted with the proviso that they are actually available and insofar as this does not contravene
the rights of third parties. A contractual penalty of 50,000 euro shall be regarded as agreed on for any violation of the aforementioned points.
PAGE 66

67. GREY PLATZ DER IDEEN 1, 40476 DÜSSELDORF, GERMANY
PHONE +49 211 3807-0, FAX +49 211 3807-367
DUESSELDORF@GREY.DE, WWW.GREY.DE
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