NSBK 2013 Retail Trendswatch


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NSB/Keane presents the top trends in retail consumer and branding experiences across the globe.

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NSBK 2013 Retail Trendswatch

  1. 1. NSB/Keane RETAIL TRENDSWATCH 2013 The Retail world. Reinventing the way we buy and sell. nsbkeane.com
  2. 2. CUSTOMERS BUY FOR THEIR OWN REASONS, NOT FOR YOURS Sometimes they do it on impulse, other times for necessity, other times because they are used to it, other times to belong, other times because of boredom, other times while seeking self-esteem, and other times for no specific reason whatsoever. nsbkeane.com
  3. 3. Overexposure The consumer today is exposed to thousands of ad messages, on hundreds of TV channels, radio stations, magazines and digital devices. Each day it becomes more difficult to reach them and convince them. Brand influence has eroded. The simple fact of knowing a brand does not translate into sales. Many decisions are made at the point of sale. nsbkeane.com
  5. 5. NOW IT’S COMPLICATED Watch video on Phone Search Like us on Facebook Watch Youtube commercial View Print Ad Read Blog Download iPhone App Compare Shop Online Buy Item Shop on Website Demo product in store Watch Tutorial Read Reviews View Banner Ad Consumers are more informed and they are more selective. The new outlook demands retailers to go back and rethink their strategies. nsbkeane.com
  7. 7. Understanding the consumer needs Convenience of service Reliable self-service technology Readiness to respond to a customer request Promptness of service Clarity of service benefits Service environment Services performed right the first time General perceptions from consumers on retail sales services Reliability on problem resolution Quality and reliability of service Quality of the employees Services rendered as promised Respectful contact with customers Information about the service nsbkeane.com
  8. 8. MULTICHANNEL EXPERIENCE ONLINE sources researched during the shopping process Online stores Search engines Brand and retail websites Comparison shopping sites for products/services E-newsletters and digital brochures Social Networks Blogs and forums nsbkeane.com
  9. 9. COMPULSIVE EXPLORERS Consumers wish to explore and analyze how products can increase their quality of life on a regular basis. They explore to obtain the information they think they need and are motivated to interact with other people and strengthen their relationships while obtaining information. They are driven by the desire to assume responsibility for their own identity and the wellbeing of their families and lifestyles. nsbkeane.com
  10. 10. The Future Of Retail Link: http://www.youtube.com/watch?v=SZutnRg9oeg nsbkeane.com
  11. 11. THE PURCHASING CYCLE EVOLUTION The Internet has changed the way we decide what to buy. Today we are all digital explorers, searching for online scores, critics from perceived experts, videos and product details as we go through the purchasing cycle. nsbkeane.com
  12. 12. ZO MT Google calls it ZERO MOMENT OF TRUTH Researching information before buying has gained predominance in customer consumer habits. In the past, the search was limited to high ticket items such as vehicles, electronics or homes. Now, people will inquire about the smallest purchases. This trend has exceeded all categories for consumer habits. It is simply the way people shop today. nsbkeane.com
  13. 13. THE SHOPPING DECISIONMAKING STEPS HAVE CHANGED. The ZMOT is the new crucial step, which incorporates the classic three steps: STIMULATION, PURCHASE AND EXPERIENCE. What used to be a message before is now an interaction. Word of mouth is more important than ever. The truth cannot be rejected. Moments of truth are finding a convergence point. Today, consumers share the information they have obtained about products in their own way and at their own pace. For the first time in human history, word of mouth is an outlet that is stored digitally. Consumers are not only looking for information on the Internet about homes and medical care services, but about band aids and pens. Mobile devices are moment of truth machines. As the use of these devices increases the three moments of truth begin to converge. nsbla.com nsbkeane.com
  14. 14. I am going to Google it Today, when consumers hear about a product their first reaction is to say “I am going to search for it on the Internet” and they begin a discovery adventure: about a product, a service, a problem or an opportunity. 70% 79% 83% 70% of Americans say they read the review & comments about products before they buy them. 79% of consumers admit they used a smartphone to make decisions when they shop. 83% of moms say they look online for the products after seeing commercials on television. nsbkeane.com
  15. 15. MARKETING MYOPIA Marketing has evolved and the modern marketing strategies need to evolve with the changes in the way people shop. Some companies make the great mistake of wanting to focus their efforts only on the product, forgetting about the consumer and the market. They forget that the shopping experience needs to satisfy the consumer as much as the product itself. nsbkeane.com
  16. 16. th e c onn d o un s ste ta how it looks? h o w it e l s ? fe h how it's uc ect sa vo r how it smells? to n e t odor lors co what s i s... VIE W E D he ar l t rings ow i h ? Visual iza t ion see –– Stimulating the shopping experience. SENSORY MARKETING The sensitive shopper As we all know, the act of shopping is much more than simply going into a public place where products are stored and are exchanged for money when they are needed. Shopping involves using the senses, as a basis for choosing certain things and rejecting others. nsbkeane.com
  17. 17. –– Sensory Marketing Emphasis on creative exploration and experimentation through gaming. The Concept Store O2 was born from brand sensitivity. The space is organized around the practical integration of activities, emphasizing accessibility and a creative lifestyle. It submerges the visitor in an unique environment that is both dynamic and tactile, combining a game of creative high tech with materials and basic natural textures. nsbkeane.com
  18. 18. –– Sensory Marketing AROMATIC LOGO It is very common to go into a business and perceive a certain fragrance. It is not only about covering the space with perfume, but about having a fragrance that hides part of the brand identity and attracts the public to become consumers of that business. Aromatic marketing has the goal of reinforcing the brand image, to compliment it beyond the product itself, to stimulate the senses, to attract clients, transforming an aroma into an invisible marketing strategy. Through the sense of smell you can trigger memories, emotions and mental images, creating an association between that stimulus and a world of experiences. nsbkeane.com
  19. 19. DISNEY’S AROMAS When you walk around any of Disney’s theme parks, something that you cannot ignore is the large quantity of aromas that exist. The live shows smell like powder to create the sense of realism, they change the aromas on Main Street depending on the season or festivity. There is caramel, ginger, and pine tree during Christmas and pumpkin smells during the Fall. Aromas can also be a part of the rides, for example, the Pirates of the Caribbean ride uses an old and abandoned aroma and in some areas the scent of sea salt. The hotels are no exception, they use specific aromas depending on the theme; for example the western and cowboy hotels smell like wood in the lobby. nsbkeane.com
  20. 20. –– Sensory Marketing SELECTING THE PROPER MUSIC FOR THE RIGHT TARGET: The auditory sense cannot be voluntarily controlled, hence it lends itself for strong commercial use both at a conscious and unconscious level. At a supermarket, there were two arrangements of wines, one was French and the other was German. On the days they used French music in the background, 80% of the shoppers chose the wine of the same nationality. Music is an important element of seduction that is interrelated to emotions. The choice of proper ambiance helps to create trust between the client and the establishment and it increases sales. Most of the clients did not associate the background sound of the Gallic accordion with their purchase. The days they had German music, the German wine was also favored in a similar proportion. During the research the chances of purchasing wine increased between 3 and 4 times when they combined it with the music from its place of origin. nsbkeane.com
  21. 21. –– Sensory Marketing TURNING CLIENTS INTO DJS Pepe Jeans launched an application for mobile devices called “DJ Store” which uses geo location technology to make it possible for the client to choose the music they want to listen to at their store, adding the songs to the playlist that is playing live. This way, the client brings their music taste to the brand and the brand brings a shopping experience to the client while their favorite song is playing. nsbkeane.com nsbla.com
  22. 22. –– Sensory Marketing MUSICAL FITTING ROOMS Adapt the music to the style of clothe. “Young people define themselves based on the music they listen to and the clothes they wear”. This concept awakened the genius idea that Starhub had for musicalizing fitting rooms with music that adapts to the clothing style they are trying on, providing a deeper shopping experience connected with emotions and taste of the consumer. When a client tries on a piece of clothing, an RFID reader that is installed in the fitting room reads the smart barcode which has data on style and type. nsbkeane.com
  23. 23. –– Sensory Marketing THE ABERCROMBIE & FITCH CASE There are few cases that are as highly representative for sensory marketing than with Abercrombie clothing stores, famous for their music, lighting and characteristic aroma. The ambiance of their stores recreates something more similar to a club than a traditional clothing store. The music is on full volume, the lighting is just bright enough to see the colors of the clothes, and the characteristic perfume covers most everything in the store – and can even be detected several feet before entering. In certain moments, the sales associates break into dance generating an experience completely untraditional for a retail environment. The strategy is clear. Sensory enjoyment weakens reasoning, appeals to our limbic system (the part of our brain that manages emotions) and allows those emotions to control shopping decisions. As a result, we are not subject to “shopping tension”, but rather we enjoy it and let our purchasing guard down. nsbkeane.com
  24. 24. STORE TODAY Beyond the standardized resources related to sensory Marketing, today we can classify stores in three different formats based on core characteristics. A B C CONVENIENCE CONCEPT ONLINE STORE STORE STORE – AVAILABILITY – PROXIMITY – SPEED – PRICE – EXPERIENCE – INNOVATION – TECHNOLOGY – PRACTICALITY – COMFORT – SUPPLY nsbkeane.com
  25. 25. STORE TODAY Proposal Commodities Goods Services Experiences Economy Agrarian Industrial Service oriented Experience oriented Economic Function Extraction Produce Deliver Please Nature of the offer Fungible Tangible Intangible Memorable Central attribute Nature Standardized Customized Personalized Offer Stored in bulk Inventoried after being produced Developed by order Revealed during its duration Sales person Trader Producer Supplier “Stager” Shopper Market User Client Guest Demand factors Characteristics Functionalities Benefits Sensations *The Experience Economy by B. Joseph Pine II and James H. Gilmore (1999). nsbkeane.com
  26. 26. A CONVENIENCE STORES Format for smaller establishments. Convenience stores are the answer to the demographic level changes, since studies have shown an increase in smaller family sizes more and more, having less time availability and value the importance of proximity. The most valued and scarcest asset for postmodern consumers today is time. Saving time at the point of sale and during the shopping and payment process is essential. nsbla.com nsbkeane.com
  27. 27. WOULD THE ONE NEXT TO ME MOVE FASTER? Client motivation decreases rapidly when they need to wait to pay, shop, stop by somewhere, and anything else. Tick, tock, tick, tock. Waiting time negatively affects the global perception of the quality and service of the product. In many cases anxiety is created from the moment we choose a checkout line and if it is the “correct” one or not. nsbkeane.com
  28. 28. CONVENIENCE STORES SUPERXPRES The “day to day shopping” is the main workhorse for these locations, with an average of 3,000 square feet. They bring shopping speed and agility, withthe advantage of being very close to the home or on the way to work. Carrefour is a clear example of this. Aware that the premise of “closeness” is the first shopping engine for consumers, betting on the “Express” format to expand their business. They have few mainstream brands and use their own brands to compete with the Chinese chain retailers. Chinese supermarkets have great success due to their backward beginnings small stores without service. They realized that larger stores were reserved for weekend trips, but people were not buying anything. nsbla.com nsbkeane.com
  29. 29. –– Convenience Stores THE REMAKE OF THE GENERAL STORE WAREHOUSE Farmacity appears like a postmodern business model. Therein lies the fusion of everything. There are no limits nor precise definitions. They managed to introduce pharmacies on a grand scale for impulse purchases. They implemented a new format where medicine, cereal bars, and MP3 players coexist. The 24 hour service broke the “regular hours” scheme for pharmacies. nsbkeane.com
  30. 30. –– Convenience Stores OPEN 25 THE GONDOLA FOR SNACKS The secret of success for the kiosk chain Open 25 was realizing that they had the opportunity to mount a chain that would know how to handle commercial strategies that large supermarkets use when it comes to selling snacks. The challenge was to stop looking at what the corner kiosk was doing and rather look at what Carrefour, Coto and Disco were doing. Specifically, what Open 25 has are agreements to place the signage for a brand or to commercialize the space for candy maufactures at each of the more than 180 kiosks distributed nationwide, not worrying about having exclusivity with anybody. For the brands, they offer more sophisticated services like shopper behavior analysis, through cameras installed at their locations. nsbkeane.com
  31. 31. B CONCEPT STORES They look to stand out, generating innovative concepts related to lifestyles. Emotional / Experience Visual identity and signposting system Product interaction Decoration Staff The Apple Stores are places to “be seen”, places where consumers feel inspired. They are more than stores, becoming social places and points of reference. Apple’s visual system is coherent, impactful and of great reach, and their logo, graphics and sources are recognizable worldwide. Products are shown in a simple manner and accessible for everyone, with ample opportunities for product interaction and with the assistance of the employees, in case it is required. The quality of the materials at the Apple Stores represent an interesting mix of design quality that at the same time is simple with great lighting. The personnel at the Apple Store are young, energetic and well trained. nsbkeane.com
  32. 32. –– Concept Stores INNOVATIVE SPECIALIZATION Electric vehicle brand Think has opened a new concept store in Zurich, specializing in electric mobility. M-way is the first “Concept Store” dedicated to electromobility in all aspects. Multimedia screens, special exhibits, and a library where clients will find answers to all their questions about technical topics in an engaging and fun way. nsbkeane.com
  33. 33. CONCEPT STORES EMPHASIS IN CREATIVE EXPLORATION AND EXPERIMENTATION THROUGH A GAME. TOUCHING ALLOWED Musical store allow the customer to touch, try and improvise with the instrument in store. Sometimes renowned musicians perform free clinic and shows in the musical room located within each location. nsbkeane.com
  34. 34. –– Concept Stores NEW CONCEPTS: POP-UP STORE They can be basements, ships, homes, terraces, buses, trucks, containers, plazas… The space stops being fixed and transforms itself to something itinerant and temporary, to offer an unrepeatable experience. Characteristics: • Term: Anywhere from 3 days and 3 months. • Location: High pedestrian traffic zones like urban centers, commercial centers and busy streets. • Price: Significantly lower than a traditional store. • Use: Launch new products, generate awareness, move stock, increase the brand perceptions. nsbkeane.com
  35. 35. –– Concept Stores RESIGNIFYING CONCEPTS: Umpqua Bank The brand identity of Umpqua Bank is as close as you can find to something like Apple in the financial industry. The facilities do not look like a bank but render the feeling of a social place, a modern deconstructed profile, even offering book presentations, thematic lectures and other activities outside normal business hours. When Umpqua opens a new branch, an ice-cream truck - branded by the bank - delivers colorful and fun food throughout the area! nsbkeane.com
  36. 36. –– Concept Stores Unifying Concepts: STORE +EXPO New concept of exposition store. A different way to exhibit the product on the gondolas. nsbkeane.com
  37. 37. –– Concept Stores SOCIAL FRIENDLY COMMERCE Retailers also intend to reach THE F-FACTOR. (Friends, Fans & Followers). Reconnecting social identities with the physical presence. Fliike is a physical “likes” counter, and it counts in real time the “Likes” that Facebook Fan Pages local businesses get. It is a simple way to keep the interconnection between the online networks and the real world. It has the function of making the clientele more loyal: it is more likely that a client becomes interested in a business if they can prove that they have an online community. At the same time, it is more realistic that the consumer from a business can integrate to a community formed by that business if they can prove that such community is growing, as indicated by the live counter. nsbkeane.com
  39. 39. –– Concept Stores BRINGING THE BEST OF THE ONLINE WORLD TO THE REAL WORLD MyBestFit is a free service that has a presence at different shopping malls throughout the United States. Clients step into a body scanner before being advised on which sizes will fit them best from each brand. JC Penney developed its findmore service at 120 stores throughout the United States. The 42 inch touch screens at the store would allow shoppers to see the complete catalog from the retailer online, review the inventory levels at the local stores, share products with friends and scan product barcodes to receive extra information and recommendations about complementary products. nsbkeane.com
  40. 40. –– Concept Stores BRINGING THE BEST OF THE ONLINE WORLD TO THE REAL WORLD Digital Signage Inamo, an Asian fusion restaurant in the Soho district of London, has found a way to differentiate itself from other such restaurants. Using touch screen tablets, Inamo allows consumers to order food, play and even watch a live video from the kitchen. nsbkeane.com
  41. 41. –– Concept Stores THE STORES ALSO CLOSED Through interactive windows installed in the traditional window, clients can go discover the collection and can obtain product information 24/7. nsbkeane.com
  42. 42. –– Concept Stores BRINGING THE BEST OF THE ONLINE WORLD TO THE REAL WORLD. ENHANCED REALITY The shopping experience is enriched through different technological tools. They offer an added value to the product, through the experience,toincentivize a purchase. nsbkeane.com
  43. 43. –– Tiendas concepto Brands Traditionally using distribution channels begun to diversify their sales strategy by opening their own retails outlets. nsbkeane.com
  44. 44. C Online Stores In both mature markets, where there is already an online shopping deployment, and growing markets, rapid urbanization and mobile internet penetration are unlocking new consumer habits, shoppers are “e-shopping”. 8 out of 10 consumers investigate their purchases online. Multi-channel consumers that receive information from more than one source before the purchase (the store, online, mobile or catalog), spend 82% more per transaction than a client that only shops at the store. About 74% of smartphone shoppers make a purchase as a result of using their smart phones. Out of these, 76% of them have shopped at the store, 59% have done it online, and only 35% have made a purchase via their smart phone. nsbkeane.com
  45. 45. ONLINE STORES GLOBAL STATISTICS USA EU BR AR CH 62% 78% 21.9% 10m 66% 2016 2016 2016 personas 2011 = 1 transaction = U$S124 billion dollars = U$S327 billion dollars = = U$S23 mil millones U$S18,7 billion dollars In the United States, e-commerce sales will increase 62% by 2016, up to 327 billion dollars. In Europe, e-commerce sales will increase 78% by 2016, up to 230 billion dollars. 70 In Brazil, e-commerce sales will increase 21.9% by 2014, up to 18.7 billion dollars. In Argentina, e-commerce sales increased by 44% during the past year. More than 10 million people made at least one transaction. In China, e-commerce sales were 124 billion dollars in 2011, with an increase of 66% since 2010. The estimate is that e-commerce will increase between 3% and 7% in 2015. INDIA USD billion dollars 2020 The estimate for India, is that e-commerce will grow up to 70 billion dollars by 2020. nsbkeane.com
  46. 46. WHY E-COMMERCE WILL AFFECT CONVENIENCE STORES MORE THAN CONCEPT STORES Unlimited selection you can shop for almost everything that you can think of. Price comparison using search engines and shopping bots, you can compare prices at a large scale. Convenience you can shop from wherever and whenever you want. Speed shop at your own rhythm and pay quickly. Information The information that it can provide is unlimited. In particular, the Web has been very effective in providing direct and impartial evaluations that came from other clients. nsbkeane.com
  47. 47. Paraphrasing Pine & Gilmore and the book subtitle “The Experience Economy”... “THE POINT OF SALE IS THE THEATER AND EVERY REP AN EMOTIONAL STAGER." nsbkeane.com
  48. 48. BOOKS MAGAZINES - Compradicción - Verdades y mentiras de por qué las personas compran. Martin Lindstrom. APERTURA ASARETAIL - Why We Buy - The Science of Shopping. Paco Underhill. - Ninja Innovation – The ten killer strategies of the world´s most successful businesses. Gary Shapiro. EL CRONISTA COMERCIAL MERCADO - ZMOT. zero moment of truth. Jim Lecinski. SOURCES WEB http://www.addicted-to-retail.com http://brandingmagazine.com http://businessinsider.com http://comscore.com http://digitalsignagetoday.com http://e-table-interactive.com http://geek.com http://independent.co.uk http://informabtl.com http://mashable.com http://psfk.com http://puromarketing.com http://retailcustomerexperience.com http://retaildesignblog.net http://www.retailprophet.com http://slideshare.net/ http://slowretailen.wordpress.com/concept-stores http://specialtyretail.com http://springwise.com http://stores.org http://trendwatching.com http://untappedcities.com http://webretail.com.ar nsbla.com nsbkeane.com