RETAILOMANIA ”Prediction is very diﬃcult, especially about the future” GLOBALIZATION HAS MADE Niels Bohr THE WORLD INTERCONNECTED
RETAILOMANIA The competetive environment of retail, is similar to a ﬂock of birds. Every single bird is aﬀected by the ﬂock, but at the same time the ﬂock is aﬀected by the movement of every single bird. GLOBALIZATION HAS MADE THE WORLD INTERCONNECTED
RETAILOMANIA SOME BIRDS ARE GAME CHANGERS. IN A WORLD WERE EVERYBODY THOUGHT THAT A SWANS WERE WHITE, IT WAS REVOLUTIONARY TO FIND OUT THAT SOME WERE NOT. The term black swan has since Nassim Nicholas Taleb used this analogy in his book ”The Black GLOBALIZATION HAS MADE Swan” been a term to desbribe events that seem impossible to predict, but when it enters the scene chages all the rules. Retrospectively we have a tendency to ﬁnd simplistic explanations for THE WORLD theese. INTERCONNECTED
RETAILOMANIAWE TEND TO LOOK OUT FOR THINGS AND SIGNS THAT FITS WHAT WE ALREADY KNOW AND THEREBY OVERLOOK WHAT ACTUALLY SHAPES THE FUTURE. WHAT IS A SURPRISE FOR THE TURKEY IS NOT A SURPRISE FOR THE BUTCHER. THE BIG OOOPS!!! HAS BEEN A PART OF THE AGENDA FROM THE START. THE TURKEY JUST DID NOT SEE IT COMING.
RETAILOMANIA THE LESSON FROM THE TURKEY IS THAT PREDICTION IS ABOUT PERSPECTIVE. GLOBALIZATION HAS MADE THE WORLD SO LETS GET SOME … INTERCONNECTED
THE CAUSES OF THE FINANCIAL CRISIS, EURO CRISIS AND THE TENSIONS IN THE MIDDLE EAST HAS NOT BEEN SOLVED AND ARE NOT LIKELY TO BE SOLVED IN THE NEAR FUTURE. ON THE CONTRARY -‐ WHAT WE USES TO CALL CRISIS JUST MIGHT THE NEW NORMAL
RETAILOMANIAFINANCIAL STIMULUS WILL NOT WORK IF THE CAUSES ARE NOT DEALT WITH… GLOBALIZATION HAS MADE THE WORLD INTERCONNECTED
RETAILOMANIA …AND ON A GLOBAL SCALE, WHAT WE SEE AS SINGLE EVENTS: THE CHINA/TAIWAN/JAPANESE CLASH OVER A FEW TINY ISLANDS, RUSSIAN MILITARY BUILDUP IN THE ARCTIC AND THE IRANIAN/MIDDLE EAST TENSION ARE ALL ABOUT CONTROL OVER OIL AND ENDING RESOURCES. THESE EVENTS WILL CONTUNUE TO ARISE AND THREATEN WORLD PEACE IN THE FORESEABLE FUTURE. GLOBALIZATION HAS MADE THE WORLD INTERCONNECTED
RETAILOMANIA SURVIVAL IS NOT ABOUT SURVIVING THE NEXT SEASON. YOU MOST LIKELY NEED A PLAN FOR SURVIVAL FOR THE NEXT DECADE. THE ABILITY TO ADAPT PRODUCTS, COSTS, BUSINESS MODELS AND JUST ABOUT EVERYTHING ELSE IS CRUISAL TO SURVIVAL IN A GLOBAL MARKETPLACE
RETAILOMANIA IN A WORLD OF UNSAFETY PEOPLE WILL BE IN THE MARKET FOR SAFETY THIS MEANS THAT LOCAL JUST MIGHT BE THE NEW GLOBAL
RETAILOMANIA THE LAST 25 YEARS IN BRIEF : THE BERLIN WALL FELL, CHINA OPENED UP, THE INTERNET MADE PEOPLE COME TOGETHER AND INTERACT OVER CONTINENTS IN A WAY THAT WE HAVE NEVER SEEN
RETAILOMANIADURING THE 90s RETAIL WENT SERIOUSLY GLOBAL WAL-‐MART, , TESCO, CARREFOUR, H&M, ZARA, IKEA, HOME DEPOT ET AL FOUND NEW MARKET ABROAD. ANYTHING THAT WAS NOT GLOBAL WAS THREATENED TO BE SWALLOWED BY THE GREAT RETAIL PREDATORS EX-‐COMMUNIST COUNTRIES WANTED ANYTHING WITH A WESTERN BRAND ON IT AS A SIGN OF FREEDOM
RETAILOMANIA THIS ERA CAME TO AN END WITH THE WAR ON TERROR WERE THE BUSH ADMINISTRATION, IN ITS SEARCH FOR THE TERRORIST RESPONSIBLE FOR THIS, ALSO UPSET A WORLD OF MUSLIM COUNTRIES, AND BY THE METHOD USED BLURRED THE IMAGE OF THE USA AS THE LIBERATORS AS IT HAS BEEN ASSOCIATED WITH SINCE THE D-‐DAY
RETAILOMANIA Real vs esGmated world producGon of crude oil Källa: Transport energy futures: long-term oil supply trends and projections, Australian Department of Infrastructure, Transport, Regional Development and Local Government, Department of Infrastructure, Transport, Regional Development and Local Government OIL HAS BEEN THE CAUSE OF SEVERAL WARS, SIMPLY BECAUSE IT IS THE BLOOD SYSTEM OF MODERN TRANSPORTATION. WHEN THE OIL PRODUCTION REACHES ITS PEAK, ANY LOGISTIC OPERATION WILL BE MORE EXPENSIVE, THEREBY CHANGING THE FOUNDATION OF MODERN RETAILING WITH GLOBAL SOURCING AND GLOBAL STORE NETWORKS.
RETAILOMANIA-‐ LOCAL BRANDS WILL BE ABLE TO CHALLENGE GLOBAL BRANDS AS PRICES FOR TRANSPORTATION WILL RISE. -‐ OLD TIME BRAND CHAMPIONS OF THE WEST (LIKE COKE FOR EXAMPLE) ARE NOT THE OBVIOUS WINNERS IN DEVELOPING COUNTRIES AND TIGER ECONOMIES OF AFRICA AND ASIA, AS THE IMAGE OF THE USA HAS CHANGED FROM LIBERATORS TO CRUSADERS IN CERTAIN COUNTRIES. -‐ SMALLER STORES WILL CONTINUE TO GROW AS IT MEANS LOWER INVESTMENTS, CLOSENESS TO MARKET AND HIGHER SALES PER SQM AS WELL AS ENERGY EFFICIENCY
RETAILOMANIA The last decade has senn DURING THE LAST DECADE , THERE HAS BEEN A FANTASTIC GROWTH OF WHAT WE CALL SOCIAL MEDIA: DIFFERENT DIGITAL SERVICES FOR SHARING VIEWS AND INFORMATION, CONNECTING AND SELF BRANDING. THESE SOCIAL MEDIA PLATFORMS HAVE MADE IT POSSIBLE TO CONNECT WITH FRIENDS AND WITH BRANDS. CONSUMERS ARE ABLE TO TALK ABOUT, AND SHARE VIEWS AND EXPERIENCES WITH OTHER GLOBALIZATION HAS MADE CONSUMERS WITHOUT THE CONTROL OR INVOLVEMENT OF THE THE WORLD BRAND OWNER BEING DISCUSSED. CERTAINLY A CHALLENGING SITUATION IN A WORLD WERE THE LARGEST BRAND COULD PROJECT INTERCONNECTED ANY MESSAGE JUST BY BEING THE HIGHEST BIDDER ON THE MEDIA MARKET.
RETAILOMANIA AS ALWAYS, WHEN NEW THINGS POPS UP, SOME PEOPLE TEND TO BELIEVE THAT IT WILL REPLACE EVERYTHING ELSE. IT WON`T BUT IT WILL ADD ANOTHER LAYER OF POSSIBILITIES FOR A DIALOGUE WITH CONSUMERS AND IF YOU DO WELL, CONSUMERS WILL HELP YOU SPREAD THE MESSAGE.
RETAILOMANIA TRADITIONAL ONLINE RETAIL RETAIL SERVICE RETAIL PRE-‐TAIL RETAIL POST-‐TAIL Researching and comparing alternaLves by using: GeYng more detailed informaLon while in-‐ Sharing experiences and conquests On-‐line search store: Word of mouth Word of mouth In-‐store communicaLon/Signage Social networks Social networks Staﬀ Ads In store search with help of mobile Apps devices Good and bad experiences are being used by other consumers to facilitate their own decision process
RETAILOMANIA SOCIAL MEDIA IS A BAD EXPRESSION AS IT SUGGESTS THAT BY USING IT YOU ARE PER DEFINITION A SOCIAL COMPANY. BUT MEDIA ARE NOT SOCIAL. PEOPLE ARE. THAT MEANS THAT USING SOCIAL MEDIA IS NOT AN EXCUSE FOR NOT DOING THE HOMEWORK ON BRANDING ETC AS COMPANIES HAVE BEEN DOING THE LAST CENTURY. IT IS NOT VERY DIFFERENT FROM YESTERDAY. EXCEPT FOR IF YOU MESS THINGS UP, EVERYBODY WILL KNOW AND LAUGH AT YOU.
RETAILOMANIASOCIAL MEDIA SOBRIETY, THE UNDERSTANDING THAT THIS IS NOT THE HOLY GRAIL AS SOCIAL MEDIA CONSULTANTS HAVE TALKED ABOUT AND THAT EVEN THOSE COMPANYS EVENTUALLY WILL HAVE TO EARN MONEY WILL SET FOCUS ON ROI FOR SOCIAL MEDIA CAMPAIGNS. LIKES ARE NOT THE SAME AS MONEY. AND SHARING IS NOT THE SAME AS GETTING A NEW CUSTOMER. YOU CAN PUT LIPSTICK ON A PIG, BUT IT`S STILL A PIG. ROI IS CRUICAL. IT´S NOT DIFFERENT THIS TIME EITHER. ASK MARK ZUCKERBERG – HE SHOULD KNOW BY NOW.
RETAILOMANIA THE EVOLUTION OF SMART PHONES AND IPADs HAVE LED TO NEW HABITS SUCH AS SECOND SCREENING, MEANING THAT YOU USE A SECOND SCREEN AT THE SAME TIME YOU WATCH TV IN ORDER TO GET MORE INFORMATION, INTERACT WITH OTHER VIEWERS OR MAKE COMMENTS TO YOUR ONLINE NETWORK. THIS IS NOW A MAINSTREAM PHENOMENON . WHAT IS INTERESTING IS WITH WHAT SPEED WE TOTALY CHANGE BEHAVIOUR BASED ON NEW PLATFORMS.
RETAILOMANIAMOBILE DEVICES HAVE ALSO MADE IT POSSIBLE TO DO RESEARCH ON COMPETITOR PRICES WHILE IN THE STORE BY SIMPLY SCANNING THE BAR CODE AND WAIT FOR THE RESULTS. AND MADE IT POSSIBLE TO INTERACT WITH ADS, PRODUCTS AND STORES BY SCANNING QR CODES FOR SEVERAL EFFECTS. BUT THIS IS OLD NEWS.
RETAILOMANIATHE YEARS TO COME WILL LEAD TO AN EXPLOSION OF AUGUMENTED REALITY APPS BY WHICH YOU CAN GET INFORMATION FROM YOUR SURROUNDINGS BY SIMPLY POINTING YOUR CAMERA AT THEM. BY USING THE PHONES POSITIONING FUNCTIONS, APPS CAN DISPLAY INFORMATION AND POSSIBILITIES TO INTERACT IN WAYS WE HAVE NEVER BEEN ABLE TO DREAM ABOUT.
RETAILOMANIAGoogle glasses is a research project that puts computer-‐processing power, a camera, a microphone, wireless communications and a tiny screen into a pair of lightweight eyeglasses. hZp://goo.gl/af4kt
RETAILOMANIABut the use of augumented reality will hardly stop there. Several devices will be used as technology get available: http://retailomania.blogspot.se/2012/08/augumented-‐reality-‐possibilities.html
RETAILOMANIATechnology could also be used in order to create various in store eﬀects: http://retailomania.blogspot.se/2012/05/hologram-lingerie-model-haunts-store.html
RETAILOMANIAPayPal processed payments of 78 Billion USD 2011, which is up 36 % from 2010. We will most likely see an explosion in mobile payments in years to come as several retailers adapt in order use the diﬀerent platforms being developed for mobile payments.
RETAILOMANIAWE NOW SEE THE LAST DAYS OF CASH, A DECLINE THAT STARTED IN THE 50s WITH THE GROWTH OF CREDIT CARDS. "Cash has dug in its heels for small-‐value transactions, but with the arrival of each new tech oﬀering (providing) an alternative way to pay for little stuﬀ — text your parking payment, Starbucks mobile app, Square, etc. — cash is being further and further marginalized,” David Wolman, author of the book The End of Money.
RETAILOMANIA6. IN STORE EXPERIENCE IS MORE CRUISAL THAN EVER
RETAILOMANIACONSUMERS DECIDE WHERE TO BUY A CERTAIN PRODUCT, BASED ON THE FOLLOWING WHAT IS BEING OFFERED? WHO IS OFFERING? Assortment WHAT WHO Positioning Service oﬀer Brand personality WERE IS IT OFFERED? HOW IS IT OFFERED? Channels HOW Concept WHERE Locations Merchandising Visuals Technology WHO AND HOW SETS THE ATMOSPHERE IN THE STORE
RETAILOMANIA FROM MULTICHANNEL TO HYPERCHANNEL RETAIL DEVELOPMENT 2012-2022 Online retailers are retailers using only the online world as their field of operations. Online retailing are Traditional retailing will continue likely to rise the coming decade as to develop with focus on smaller Online retailing on more consumers are online, more concepts as turnover/square Mobile internet has exploded communities and online consumers feel safe online and the social media platforms are The C2C-market is likely to rise due meter will become a critical KPI over the last couple of years due evolution of payment systems will likely to be more to both economical and as competitions get harder. Small to smart phones and various make payments easier. specialized as the environmental concerns. format also means: need-to-have and nice-to-have - Quicker, easier shopping Online kiosks inside apps. platforms mature. - Smaller investments (risk) stores makes it More retail functionality will be - Coming closer to the customer implies less fuel spending possible to research online and compare built into apps and both ecommerce and in-store Online - More possibilities to optimize functions and interactivity will be standard retailers store location density. features of the assortment. features. C2C Multichannel retailers includes offline retailers going online, but also Mobile retail EBay those online retailers that chooses to open a services Online physical store. Traditional Some use the online ”Social” media services world to gather information before going retail platforms retail to the store, while others Spotify use the physical store as Popup- In-store Facebook et al Voddler a showroom before ordering online, perhaps online kiosks stores via smart phone while stillPopup stores started as guerillaactivities but have now matured Multi- Online virtual in the store Virtual goods are products oras a new format when and where channel goods retailing Farmville etc services consumed online and aretemporary installations are Why should people need to go never an actual asset of the use.necessary. Here Telenor, mobile outside to grab a prescription orphone kiosk. pick up a preordered bag of Drive-thru groceries. Drive-thru are a reality in stores many places and are likely to rise. Several banks have launched retail store Vending Retailers looking concepts in order to appear as a modern machines O providing utlet service provider. Photo s services from Danish Jyske Bank Vending machines are not what they used to be. Here is U´tiques luxury product vending machine, In order to improve the and its modern cousins from other Third party co-op share of wallet ratio from existing customers Service providers vending operators are selling everything from shoes to vodka several retailers are using retail tactics moving into the service from designed machines. Hotels, gyms, spas industry providing banking, insurance, Retail banking, Retail opportunities for situational gardening wedding and shopping. Shoes and training insurance companies, even funeral services. equipment at the gym, wellbeing at travel agencies the spa and so on. THE NUMBER OF CHANNELS ARE EXPLODING
RETAILOMANIA A CLEAR RETAIL BRAND PERSONALITY IS A MUST Hard discount Price fightersDiscount No frills chic Low price with class The teacher Educates the customerKnowledge The coach Buddy and helper The formal Authencity and strict normsAuthencity The good Nostalgia old days The real thing Best of the best
RETAILOMANIA The degree of interaction between customer and the store will rise in order to increase the percieved value Customer as Customer as a part Customer as a partner audience of the concept Low degree of High degree inteaction of inteaction Service concept Self service Interactive concepts The customer are not The most common of concepts during The store visit is an integral part of the interested or allowed to the later half of the 20th century. The product were the customer is co-‐ browse the merchanidise customer choses what they want to by creating or personalizing a product to ﬁt themselves, but are served by and goes to the cashier. The customer special requirements. staﬀ. does one part of the job and thereby get a better price.
RETAILOMANIABLURRING OF OFF LINE AND ON LINE EXPERIENCE WILL INCREASE OVER TIME hZp://retailomania.blogspot.se/2012/06/merging-‐of-‐online-‐and-‐oﬄine.html hZp://retailomania.blogspot.se/2011/01/connected-‐store-‐intels-‐vision-‐of-‐future.html hZp://retailomania.blogspot.se/2012/05/blurring-‐borders-‐between-‐online-‐and.html
RETAILOMANIA7. CUSTOMER DATA ANALYSIS NECESSARY TO KEEP TRACK OF VISITOR BEHAVIOR
RETAILOMANIAMOST RETAILERS COUNT THEIR VISITORS IN ORDER TO KEEP TRACK OF STORE PERFORMANCE Can you aZract Can you convert more you make Can new visitors? visitors into customers. customer every buy more? -‐ The number of visitors -‐ Conversion rate -‐ Number of add-‐on sales -‐ Average basket value -‐ Average number of articles per transaction Can you make them come more ocen?
RETAILOMANIABUT TECHNOLOGY ALLOWS THE RETAILER TO USE EYE TRACKING TECHNOLOGY AND AUTOMATIC IN STORE TRAFFIC TRACKING IN ORDER TO ANALYSE CUSTOMER FLOW, HOT SPOTS AND COLD ZONES OF THE STORE, THEREBY MAKING IT POSSIBLE TO MOVE HIGH MARGIN PRODUCTS TO ZONES WITH MORE TRAFFIC.
RETAILOMANIAAS COMPETITION GETS TOUGHER IN STORE TRAFFIC ANALYSIS WILL BE CRUICAL IN ORDER TO MAINTAIN A PROFITABLE STORE AT ALL TIMES.
RETAILOMANIA STRATEGY IS GREAT!!! BUT DON´T FORGET THE EVERYDAY TACTICS THAT MAKES STRATEGY HAPPEN hZp://retailomania.blogspot.se/2012/05/teotrwawki-‐retail-‐survival-‐tacLcs.html
RETAILOMANIAAND FINALLY; BEING A TURKEY OR A BLACK SWAN IS PART INNOVATION, PART CHOICE AND PART EVERYDAY HARD WORK BUT REMEMBER…