The Retail world. Reinventing the way we buy and sell.
BUY FOR THEIR
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
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
4. HOW IT
GO TO STORE
5. NOW IT’S COMPLICATED
Consumers are more informed and they are more selective.
The new outlook demands retailers to go back and rethink their strategies.
6. IN THE NEXT FEW YEARS, WHICH RESEARCH
OPTIONS WILL BE MOST IMPORTANT PRIOR
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
right the first time
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
ONLINE sources researched during the shopping process
Brand and retail websites
Comparison shopping sites
and digital brochures
Blogs and forums
Consumers wish to explore and analyze how products can increase their quality of life on a
They explore to obtain the information
they think they need and are motivated to
interact with other people and strengthen
their relationships while obtaining
They are driven by the desire to assume responsibility for their own identity and the wellbeing
of their families and lifestyles.
10. The Future Of Retail
11. THE PURCHASING
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.
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
Now, people will inquire about the smallest
This trend has exceeded all categories for consumer habits.
It is simply the way people shop today.
13. THE SHOPPING
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
Word of mouth is more
important than ever.
The truth cannot
Moments of truth
are finding a convergence
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
Consumers are not only looking
for information on the Internet
about homes and medical care
services, but about band aids
Mobile devices are moment
of truth machines. As the use
of these devices increases the
three moments of truth begin to
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% 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.
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
h o w it e l s ?
how it smells?
VIE W E
–– Stimulating the shopping experience.
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.
17. –– Sensory Marketing
Emphasis on creative
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
18. –– Sensory Marketing
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.
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.
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.
21. –– Sensory Marketing
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.
22. –– Sensory Marketing
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.
23. –– Sensory Marketing
& 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
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
24. STORE TODAY
Beyond the standardized resources related to sensory
Marketing, today we can classify stores in three different
formats based on core characteristics.
CONVENIENCE CONCEPT ONLINE
25. STORE TODAY
Nature of the offer
Stored in bulk
Developed by order
*The Experience Economy by B. Joseph Pine II and James H. Gilmore (1999).
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
Saving time at the point of sale and during the shopping and payment process
27. WOULD THE
TO ME MOVE
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.
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
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.
29. –– Convenience Stores
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
30. –– Convenience Stores
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.
They look to stand out, generating innovative concepts related to lifestyles.
Visual identity and
The Apple Stores are places
to “be seen”, places where
consumers feel inspired. They
are more than stores, becoming
social places and points of
Apple’s visual system is
coherent, impactful and of great
reach, and their logo, graphics
and sources are recognizable
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
32. –– Concept Stores
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.
EMPHASIS IN CREATIVE EXPLORATION AND
EXPERIMENTATION THROUGH A GAME.
Musical store allow the
customer to touch, try
and improvise with the
instrument in store.
musicians perform free
clinic and shows in the
musical room located
within each location.
34. –– Concept Stores
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.
• 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.
35. –– Concept Stores
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!
36. –– Concept Stores
New concept of exposition store.
A different way to exhibit the product on the gondolas.
37. –– Concept Stores
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.
38. –– Concept Stores
BRINGING THE BEST OF THE ONLINE WORLD TO THE REAL WORLD
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
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
40. –– Concept Stores
BEST OF THE
TO THE REAL
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
41. –– Concept Stores
Through interactive windows installed in the traditional
window, clients can go discover the collection and can
obtain product information 24/7.
42. –– Concept Stores
BRINGING THE BEST OF THE ONLINE WORLD TO THE REAL WORLD.
tools. They offer an
added value to the
product, through the
43. –– Tiendas concepto
Brands Traditionally using
distribution channels begun to
diversify their sales strategy by
opening their own retails outlets.
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
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.
45. ONLINE STORES
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
In Brazil, e-commerce
sales will increase 21.9%
by 2014, up to 18.7
In Argentina, e-commerce
sales increased by 44%
during the past year. More
than 10 million people
made at least one
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%
The estimate for India, is
that e-commerce will grow
up to 70 billion dollars
46. WHY E-COMMERCE WILL AFFECT
CONVENIENCE STORES MORE THAN
you can shop for almost everything that you can think of.
using search engines and shopping bots,
you can compare prices at a large scale.
you can shop from wherever and whenever you want.
shop at your own rhythm and pay quickly.
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.
47. Paraphrasing Pine & Gilmore and the book subtitle
“The Experience Economy”...
“THE POINT OF SALE
IS THE THEATER
AND EVERY REP
- Compradicción - Verdades y mentiras de por qué las personas compran. Martin Lindstrom.
- 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
- ZMOT. zero moment of truth. Jim Lecinski.