All the presentations from RetailOasis' Big Breakfast combined: Anna from Besen, DJ from Thorn, Mark from RCG, and Pippa from RetailOasis. All explaining their key takeouts from the National Retail Federation Big Show in NYC and CES,

1. BIG BREAKFAST
BRIEFING
#retailoasis

2. TITLE
NRF: BIG SHOW
#retailoasis

3. CHALLENGE YOUR
THINKING ON THE
FUTURE OF RETAIL
#retailoasis

4. Pippa
Anna
Mark
DJ
4 ‘TOURISTS’ VIEWS:
Customer
Investor
Retailer
Technology

5. BIG BREAKFAST:
customer
#retailoasis

6. long live
millennials
mobile #1
AI #2
experience
is
everything
tell don’t
sell

7. long live millennials

8. this year, millennials (gen Y) will surpass Baby
Boomers as the largest living generation
source: Pew Centre
by 2020 Gen Y + Gen Z will be the
dominant retail segments in dollars spent

9. Management Team*
average age
the gap between management and consumer
is growing
Source: Fortune * based on age of CEO taking office; ABS 2014
50 yo 34 yo
customers
average age
16 years

10. added to this are two very important shifts their
generation will bring:
blended society female leadership
2050: US will be
a majority non-
Caucasian
(Australia will
be similar)
2030: there
will be
more female
millionaires
than male

11. ’75% of millennials consider the store the
centrepiece of their experience….they may
not come in as much as they use to, but
they will be more knowledgeable when
they come in’
Myron Ullman, ex-Chairman +CEO J.C Penney
the physical store needs a new definition:

12. what this means:
business must
shift it’s mindset
to meet the
millennial
embrace
diversity -
cultural and
gender
businesses need
to act like their
digitally native

13. mobile #1. AI #2

14. ‘channels are a language retailers speak to
justify what they’re spending on IT.
it’s not understood by the customer’
Sir Charlie Mayfield, Chairman, John Lewis Partnership

15. millennials check their phones three
times more than any other generation
shift in customer behaviour:
Source: Sam’s Club

16. under armour: largest mobile fitness community
160m users
150K
downloads
a day
my fitness pal
endomondo
map my fitness
health box

17. it starts with mobile and now it’s AI
nearly $2B in sales will happen this year through a mobile digital
assistant (like Siri, or Watson).

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19. what this means:
mobile first,
play with AI
don’t be afraid
to ‘buy’ talent
the real cost is
in delaying
(not doing)

20. experience is everything

21. ‘if people are going to go to the store,
you need to make it worth it’
Sir Charlie Mayfield, Chairman,John Lewis Partnership

22. the store is not just about procuring product –
you can do that online.
it’s about experience, and people will pay for
experience.

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3x 1 jeans
3x1 - soho

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the laundress
the laundress - soho

25. abc home - flatiron

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lululemon flagship
lululemon - flatiron

27. kit & ace - nolita

28. what this means:
experience is
your obligation
at store
it’s brand
building if done
well
a product isn’t
enough to get
traffic

29. tell don’t sell

30. we are marketing machines. we now when we’re
being sold to and we don’t like it.
plus, millennials are more informed, more connected
and way more skeptical - all thanks to tech.

31. they don’t care about
your shareholders - they
see themselves as the
most important part of
the equation
the facts
your authenticity
commands their
respect. tell them your
story, make it human -
not corporate.
they want to buy
into what you’re
doing for the world -
make it better (not
generate a sale)
story spiritualstakeholders

32. ‘we dreamt of making high quality Italian food available around
the world – eat, shop and learn about the Dolce Vita’
Oscar Farinetti, Founder, Eataly

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soul cycle

34. "it is the place people come, regardless of
their age, athletic ability, size, shape,
profession or personality, to connect with
their best selves."

35. shinola - tribeca

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‘our purpose was to create jobs for people
- not product’

37. “the purpose of business is to improve the
community - it’s not a monolithic opportunity
where there’s a transaction and you made
money -
understand the importance in the long-term
of being an important part of the world. “
Myron Ullman, ex-Chairman +CEO J.C Penney

38. what this means:
work with
stakeholders as
important as
shareholders
lead with
purpose - why
do you exist?
treat your
customer like a
human - with
heart

39. long live
millennials
mobile #1
AI #2
experience
is
everything
tell don’t
sell

40. “we’re dealing with business models that aren’t
as efficient as they use to be..
it’s not what the change is; but how do you
change continuously”
Sir Charlie Mayfield, Chairman, John Lewis Partnership

41. BIG BREAKFAST:
investor
#retailoasis

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THE FUTURE OF RETAIL
Through the eyes of an investor

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BESEN – Who are we?
2
DANIEL BESEN ANDREW POST
ANNA ELLIS JOE TACK

44. THIS IS WHAT WE LOOK FOR IN A RETAIL BUSINESSES NOW
3
• Profitable
• A passionate entrepreneur or founder with a vision to grow
• A unique or differentiated product, service or business model that
consumers love and / or a sustainable competitive advantage
• Growth potential
PAST EXAMPLES:

45. WHERE DOES BESEN THINK THE PITCH WILL BE IN 3 YEARS?
4
Retail businesses in the future will need:
1. To answer the question WHY not just WHAT
2. To respond to “the age of the consumer”
3. To have one strategy which covers physical and digital

46. 1. BUSINESSES IN THE FUTURE WILL NEED TO ANSWER THE QUESTION
WHY NOT JUST WHAT
It is no longer enough to have a great product or service… Why should
the consumer buy it? We will be looking for businesses that:
5
1. Stand for something
2. Enhance value to the consumer
3. Have provenance or an authentic story

47. 6
BUSINESSES THAT STAND FOR SOMETHING
SHINOLA TOMS

48. 7
BUSINESSES THAT ENHANCE VALUE TO THE CONSUMER
With an innovative or disruptive business model…
WARBY PARKER

49. 8
BUSINESSES THAT HAVE PROVENANCE OR AN AUTHENTIC STORY
Mast Brothers Chocolate “bean to bar” concept
MAST BROTHERS CHOCOLATE

50. WHERE DOES BESEN THINK THE PITCH WILL BE IN 3 YEARS?
9
Retail businesses in the future will need:
1. To answer the question why not just what
2. To respond to “the age of the consumer”
3. To have one strategy which covers physical and digital

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2. BUSINESSES IN THE FUTURE WILL NEED TO RESPOND TO THE AGE OF THE
CONSUMER
Consumers today:
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• Are more connected than ever before
• Care more about experiences than things
• Want to be part of a community in-store and online
Let’s have a closer look at each of these and what they mean for
what BESEN will be looking for from businesses in the future…

52. 11
CONSUMERS ARE MORE CONNECTED THAN EVER BEFORE
• Online has long been a cost of entry but mobile enabled is next
• Businesses need to be social – no longer an add-on but a necessity, part of
the DNA of a business

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12
CONSUMERS CARE MORE ABOUT EXPERIENCES THAN THINGS
• We have known for some times that affluent Australians rate enjoying
experiences above acquiring material goods – this is translating to retail
• We like retailers that provide in-store experiences that give consumers a
reason to get off the couch and shop
MAST BROTHERS
Chocolate factory and taste testing

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13
CONSUMERS WANT TO BE PART OF A COMMUNITY IN-STORE AND ONLINE
• Being part of a community makes consumers happy – why do we think this is important for
retail businesses?
1. It costs 5x as much to acquire than keep a customer
2. The #1 influencer of purchases is recommendations
3. Community engagement can increase revenue by up to 25%
• In New York in-store communal spaces such as lounges, coffee shops and free wi-fi are the
norm rather than the exception
LULULEMON NYC CONCEPT STORE NIKE + RUN CLUB AUSTRALIA

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WHERE DOES BESEN THINK THE PITCH WILL BE IN 3 YEARS?
14
Retail businesses in the future will need:
1. To answer the question why not just what
2. To respond to “the age of the consumer”
3. To have one strategy which covers physical and digital

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3. BUSINESSES IN THE FUTURE WILL NEED ONE STRATEGY WHICH COVERS
PHYSICAL AND DIGITAL
15
1. When it comes to bricks or clicks, the choice is both
2. Physical stores are no longer one size fits all
3. A seamless consumer experience across all channels

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16
WHEN IT COMES TO BRICKS OR CLICKS – THE CHOICE IS BOTH
The death of retail was overstated…
• We are not saying that online only retailers will not be successful, there are many businesses
where a purely online strategy is the best one
• What we are saying is that we don’t believe it is bricks OR clicks – the physical and digital are
complimentary
• Online retailers are opening physical stores because retail flagships are driving online sales
MICROSOFT

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17
PHYSICAL STORES ARE NO LONGER ONE SIZE FITS ALL
• Different store concepts and formats are required for different consumer markets – we like businesses that
are innovative in adapting their footprint, offer and location
• Lowe’s – a traditional big box home improvement retailer adapting their model to the city market “Lowe’s
urban stores”
• Murray’s Cheese Shop – a NYC institution that has rolled out 350 store-in-store concepts in supermarkets
across the US
LOWE’S MURRAY’S CHEESE SHOP

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18
A SEAMLESS CONSUMER EXPERIENCE ACROSS ALL CHANNELS
• The physical and digital need to connect and the consumer needs to be able to move seamlessly
between all channels
• We think UK retailer John Lewis is a great example of how a seamless customer experience should look
over the few years
– 80% of customers shop across both channels
– 75% of all John Lewis transactions comprise some component of online and in-store (i.e. browsing
on mobile then purchasing in-store)
– 40% of John Lewis sales are online
– Delivery options include next day, click and collect and commute and collect
JOHN LEWIS

60. AS AN INVESTOR I LOOK FORWARD TO SEEING HOW AUSTRALIAN RETAIL
BUSINESSES RESPOND…
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61. BIG BREAKFAST:
retailer
#retailoasis

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Digital Trends: Transforming Retail
Mark Teperson
Director Mul5channel
RCG Corp Ltd

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A"tude towards change
Two truths, one mantra
‘Without passion,
we are just unfulfilled
poten9al’
‘The relentless pursuit of
excellence’

65. 5 Key Themes Today
1. Technology @ Retail
2. Challenging the store network
3. Organisa:onal change
4. Intersec:on of content & commerce
5. Customer loyalty (community)

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THE FUTURE IS HERE.
It’s just not evenly distributed yet

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Three Key Ques+ons
That should drive technology @ retail
1. What is the unmet need of
the consumer?
2. How can technology
meaningfully solve this
unmet need or enhance the
experience for a consumer?
3. Is the experience
contextually relevant?

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Large mirrored panel at the front
of the store, where customers
can;
§ Browse the latest looks
§ Shows ‘what to wear it with’
§ Select items to be brought to
change room
Does this meaningfully enhance
the consumers experience?
Is it contextually relevant?

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Beacons automa,cally iden,fy
product placed in change room
§ Shows ‘what to wear it with’
§ Select alternate size to be
brought to change room
§ Change ligh,ng to reflect
different se@ngs (night, day,
club)
§ Order beverages
§ Complete checkout; or
§ Add items to your app
automa,cally so you can
purchase later

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Follow the customer
& you will never have to look for growth

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Department Store: Inves0ng
heavily in store experience and
digital commerce to fuel
growth.
Origina(ng with first store in mid
1800’s in Oxford Street, London.
Today it has 45 stores in the UK.
In 2015, 40% of John Lewis total
revenue (£1.5bn) was generated
through online channels.

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Pure Play: Inves.ng in retail
‘Guideshops’
Holds no physical inventory in-
store. Only TRYON sizes.
Try it on before you buy at one of
their Guideshops.
No crowds. One-on-One service.
Exactly what you want, delivered
right to your door.

75. Specialty Retail: Reducing the
tradi3onal store footprint.
Leveraging distribu3on
networks and centralised
inventory.
Holds no physical inventory in-
store. Only TRYON pairs.
Shop in store: FREE overnight
shipping
Shop Online: Free ground
shipping

76. Why is this important for retailers?
Improve inventory efficiency
(Centralize inventory)
Reduce markdowns
Reduce retail footprint
(size & number of stores)
Increase investment in store
experience
Leverage digital channels to
extend reach of your market
Strategy Impact
Reduce markdowns
Improve margins
Reduce premium rentals &
eliminate unprofitable stores
Grow consumer engagement
& sales
Grow sales & profits

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Does your
organisa-on have
the capability to
change?

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Capability Pla+orm
Talent
§ Specialist exper/se
§ Transforma/onal exper/se
§ Vision & Ownership
Culture
§ Execu/ve leadership & commitment
§ Collabora/on & partnership
§ Shared KPIs, Incen/ves & Goals
§ Customer lead decisions (data driven)
Structure
§ Dedicated internal resources
§ Shared responsibili/es and orchestrated hand off’s
§ Cross discipline teams, doHed lines & hybrid roles

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The new, non-linear purchase journey !
The journey is now!
Dynamic
The journey is more!
Influenced
The journey is!
Continuous

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Content
Commerce
Contextually relevant content
is driving commerce
BREAK
IT
DOWN
Mobile
Apps
Tablet / Desktop
Retail
Social
Email
Blog
Channels
Browse
Research
Inspira0on
Considera0on
Purchase
Post Purchase
Returns
Rewards
Advocacy
Behaviours

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Customer Loyalty Trends
Content
Commerce
Community
•In a clu)ered market value exchange is more important than ever before
•Personalisa9on is a Hygiene Factor
•Shi/ from product cycles to consumer lifecycle engagement
•Not how loyal you are to us. It is how loyal we are to you
•Membership Spectrum (SAPS: Status Access Power Stuff)
•Kudos economy

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Follow the customer
with the relentless pursuit of excellence
& you will never have to look for growth

86. BIG BREAKFAST:
technology
#retailoasis

87. DATE CLIENTPRESENTATION HEADING
D-J Aquilina insert insert
THE BEST OF CES

88. BIGGEST SHOW EVER
250,000 sqft
170,000 vistors

89. AUTOMOTIVE ANNOUNCEMENTS : ‘RETURN OF THE
BUS’

90. 4k Content
Smart Tv IOT1
2
TVs

91. VR GETS REAL

95. NATIVE TECH

96. NATIVE TECH

97. NATIVE TECH

98. NATIVE TECH

99. AUGMENTED LIFE

102. VIRTUAL TRAINER

109. IMPLICATIONS
• The first new medium of the 21st Century is here - virtual reality. Develop
content with VR in mind
• New tech and scale need not be estranged. Use native thinking to bring IoT to
the masses
• Text→Image→Audio→Video→3D→AR→VR (content’s inevitable march from
static to fully immersive continues)
• Gamification of activities brings passion points to life - reward consumers for
engagement.

110. BIG BREAKFAST
BRIEFING
#retailoasis

111. TITLE
CONSUMER FIRST
IS THE KEY MESSAGE
#retailoasis

112. FOOD FOR THOUGHT,
AND THEN ACTION.
#retailoasis

113. JOIN US IN NYC 2017
JAN 11-18TH
#retailoasis

114. Q&A
#retailoasis www.retailoasis.com

115. THANK YOU
#retailoasis www.retailoasis.com