Mass Market Retail Insight


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Breaking the cycle of extended discount periods, retaining loyalty and differentiating through digital activations.

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  •     Mintel’s consumer research has found that 29% of all adult consumers have downloaded a mobile app in the past three months, compared to just 7% only a year ago. This growth is expected to continue over the coming year as more consumers adopt smartphones as well as tablet computers. When Like Turns to BUY Instead of like, there will be an option to buy , as well as convenience for customers it also means that brands have the opportunity . will eventually see consumer’s using the shops to try the clothes and scanning then with their phone in order to pay by account’s through facebook or
  • Website content is obviously of paramount importance, but for executives speaking at the conferences, the main focus should be around winning through differentiation from rivals, and by truly engaging customers. It ’ s no good just putting things on a screen; the content has to work hard for you. Online Retail, Making Content Work WGSN Feb 2012
  • Topshop ’ s Mirror Mirror Campaign, real time feed back from industry professionals commenting on customers outfits. Allowed for users to share a branded image through digital social channels. Peer sharing-location based events Uniqlo tapped into the trend for peer-sharing with the launch of Uniqlooks, a website linked to Facebook that allows members of the social networking site to post photographs of themselves modelling the brand's clothing. Facebook account holders can post images on the site free of charge if they are wearing at least one Uniqlo item. Uniqlo expects access to Facebook's 600 million members to help it reach a wide range of customers, raise its international profile and accelerate its overseas expansion. However, peer-sharing doesn't have to be an online initiative and is a crucial part of the physical shopping experience too, especially for women. But what about that solo shopper? How can retailers help her get a friendly opinion on that new dress she ’ s considering? One way is via interactive mirrors. These mirrors allow the user to photograph themselves in an outfit and send it to friends or Facebook for feedback. A lot of interactive mirrors have been appearing recently at stores such as Diesel, Sunglass Hut and Prada. An interactive mirror installed at Topshop was less about peer-sharing with friends and more about receiving live feedback from real fashion experts. The mirror was hooked up to international stylists and editors who provided instant feedback and tips regarding the outfits they were viewing.
  • Facebook and the power of social networking cannot be underestimated. This is the landing page for this age group (16-25) going on to the internet. They regard shopping as entertainment and using Facebook and Twitter can make it fun and make it seem like they are playing rather than spending, consumers (16 to 24) “ believe that shopping online doesn ’ t really feel like spending money, so they tend to spend a lot more than they would in an actual shop. This is almost double the average. ” WGSN, Fashion Online 2012.
  • Mass Market Retail Insight

    1. 1. Retail InsightBreaking the cycle of extended discount periods,retaining loyalty and differentiating throughdigital activations
    2. 2. Challenges • Base of 4,013 adults aged 16+ who have bought clothes in the last 12 months. • 51% of consumers are spending less on clothing. • 35% are more inclined to wait for sales. • Consumers are starting to expect higher more personalized levels of service • A majority, 3 in 10 stay loyal to 3 brands. • Trend Analysis, differentiating, a focus on consumer behaviors and some innovative approaches.With the increase of commodities and global economic uncertainty there has been a tremendous amount ofpressure on retailers. The balance between buying, merchandising and allocation ads to this when shoppinghabits change, resulting in excess stock, and further, squeezed margins. What we aim to deliver is valuegenerating triggers that activate buying and brand participation. With 3 in 10 consumers remaining loyal to 1-3brands, the opportunity to retain interest from consumers is obvious. Figuring out the best applications toaccomplish this however, is a little trickier. That’s why we have this insight and why we use it to betterunderstand how a combination of both positions us best as your digital navigators and activators.
    3. 3. Solutions• Developing value added promotions to ignite interest and following• Republic recent campaign appealing to its 44,000 facebook fans by offering £5 off when they check into their local shop using a smart phone.• Additionally Topshop launched a campaign offering 20% off for customers winning enough points on a fashion themed game played on its location based ap.• Further to this Uniqlo launched a social site called Uniq Looks, inviting its consumers to add profiles and advertise their product while interacting socially.• There are many unique activities already happening and what is paramount is that retail now needs to stay at the cutting edge in terms of its consumers and their activities. Ie: the digital world.
    4. 4. Mcom = Fcom When the ‘like’ button changes to ‘buy’ this will trulyillustrate the power of F-commerce and its capabilities through mobile devices. Shopping and retail as we knowit will never be the same again. The like/brand following on facebook will allow for in store check-inapplications to power wish list creations, payment and same day deliveries-without having to que at all. Whatdoes this mean in English? It means all facebook check-ins will link and display the customers location,connect them to the site, catalogue the items they wish to purchase and allow them to pay through theirfacebook account. An evolution in shopping –what will we do with all our time not queuing! “Our focus grouphighlighted that queues are a problem and often lead to lost sales. So Aurora’s first step towards “selfcheckout” looks like a good forward thinking move, and mobile phones are also poised to become analternative payment device for clothing retailers for the not too distant future. Fashion Retailing UK, MintelDec 2011
    5. 5. Retaining LoyaltyLoyalty is fairly low among clothing consumers, with nearly 3 in 10 shopping at five or more outlets. Howeverthe percentage of consumers just shopping 1-3 stores is fairly even and therefore the opportunity toimprove loyalty is evident. Many strategies can be employed here – from interactive mirrors and windows instore to mobile applicatons for easier purchasing as highlighted in the previous slide, to brand activitiesdesigned to add value to the consumers life, such as play lists and content that relays brand tailor messages,ethos and lifestyle straight into the consumer’s head in a mutually beneficial way. Fashion Retailing UK, Mintel Dec 2011
    6. 6. Best PracticeAccording to our consumer survey one in four adults would like to see more personal service andadvice from in-store staff. A focus on superior service could be concentrated and championed in flagshipstores as part of a wider integrated package drawing on latest technology and mobile devices toaddress other issues such as choice, availability and payment options too. For instance QR codes onswing ticket could be used to link smart phone users directly to a store’s website so they can instantlyorder what they want. (Fashion Retailing UK, Mintel Dec 2011) All saints was the first UK retailor to trialthis and found that by driving traffic back to the site and promoting mobile aps on key pages they were betterable to gauge what content their instore or “key” consumers were interested in. And further gave the best ROIas it ignited the digital journey and united all of the activities.
    7. 7. Evolutions in Digital Consumption86% of web users now use a mobile device while watching TV. Engaging and interacting across multipleplatforms at the same time. Further to this, the evolving consumer responds quickly to direct calls to action.While sitting watching an advert on TV for a £20 dress, they will respond directly by picking up their iPad andordering the item there and then. Digital Trends Dec 2011, Mintel. The methods of communication forinitiating these interactions are also changing from lifestyle, aspirational, glossy, profit focussed adformats to instead insightful, factual mini stories that relay brand ethos and personality. Take Levi’sCurve ID campaign, where each consumer is able to personalise their jeans by their measurements and furtherparticipate in a photoshoot and pod cast where their reactions and feedback are the materials used for multimedia activity. Real people, real emotion, real connection… primary drivers of loyalty.
    8. 8. Creative,EmotionalContent iskey forCognitiveRecognitionEstablishing long term memoryThere is so much noise in our lives, we are constantly bombarded with information. The result is thecognitive elements of our brains which trigger the memory and recognition processes, switch off and block.Consumer’s are no longer interested in being sold to, the shift into creative, branding led communicationmeans we can now utilize more lateral and creative approaches to reach our consumer’s emotional receptors.Ie: The long term or working memory, enabling an emotional bond which triggers loyalty. Truly engagingcustomers. It’s no good just putting things on a screen; the content has to work hard for you.
    9. 9. Trends and TribesEcohedonsim, WGSN AW2012.The future of e-commerce, search and social marketing are now tied to consumers attempting to curateexperiences that represent their personalities and tie into cultural influences. Customers like to talk, shareand converse, and this idea of user-generated content can also be a very valuable tool, if done right it canprovide significant competitive advantages. WGSN, Drapers Retail Conference 2012.
    10. 10. PeerSharing Success online is about more than just having a presenceand transactional site. The internet is as competitive as the high street and being able to defeat rivals oftendepends as much on a compelling presentation as it does on the reach, activity and interest it can generate.However, peer-sharing and digital activities are not only web based. In store is a crucial part of the experiencetoo, especially for women. Online Retail, Making Content Work WGSN Feb 2012 Illustrating that with acombination of online information and interaction, the shop floor becomes an extension of social aspectsof this. With nearly half, or 42% of the UK population owning smart phones, which they always carry,experiential events in store can quite easily provide online interest, unite consumers, increase footfall and drive
    11. 11. Brand Community To accelerate the brand’s globalexpansion and international profile Uniqlo tapped into the trend for peer-sharing with the launch ofUniqlooks, a website linked to Facebook that allows members of the social networking site to post photographsof themselves modelling the brands clothing. Facebook account holders can post images on the site free ofcharge if they are wearing at least one Uniqlo item. Uniqlo expects to drive traffic and interest throughactivies furthering its appeal to Facebooks 600 million members. Imagine if they linked that to in-storeexperiential events, 600 million people visiting their shops globally on one day-they could close for a month and
    12. 12. Borderless Branding The future of digital media in retail will be based onborderless technology that will unite the physical store with the virtual platforms and brand experiences (DigitalTrends, Dec 2011 Mintel)The world of retailing is changing and fast. Now more then ever is the time tounderstand your consumer’s lifestyle and how you fit within it, utilizing white spaces that providepersonalized experiences, create emotional relevance and unlock commercial opportunity. Powerful insightcomes from taking a multi-perspective, lateral view of the consumer, the competitors and understanding howto cater to one and differentiate from the other. We like what a lot of brands are doing but the aim is to buildon that and create something unique.
    13. 13. Q Thank you for your time, I hope some of the Insight provided demonstrates my focus and knowledge in within your sector. For more please don’t hesitate to get in touch. Ellissa White Freelance Stylist, Digital PR and Branding m. 07807077576 e.