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Generous Brands	
  
Serious Business of Play	
  
Joy of Shopping	
  
GenZ
Retail’s New Reality	
  
Experience Signatures	
...
 
#FITCHRetail2020
@FITCHdesign	
  
@cdaviesFITCH
Join the discussion
Retail will change more in the
next 5 years than the last 50
The fundamentals of what a store
“is” (its purpose and its function)
are in flux.
This change is not just driven by
economic, product or industry
trends (although they remain an influence).
Rather, tomorrow’s store is being
shaped by new behaviors, needs
and demands of shoppers.
In 5 short years…X Y Z
By 2020, Xers will be enjoying
the fruits of the peak-earnings
decade of their careers.
While quietly freaking out about
their ill-planned retirement.
By 2020, Millennials will no longer
be the kids in your store.
In fact, they are more
likely to be shopping
for their kids.
Retail today is “under-delivering
against millenials’ expectations.”
Source:	
  Accenture	
  Millenial	
  Outlook,	
  2013
The brands thriving in 2020 will
clearly have solved this challenge.
Happy Millennial
Because lack of engagement with
a group this big is not optional
Net effect of
bored Millennials
GenZ will be the newbies, but
collectively they are retail’s future.
By 2020, they will be the largest
group of shoppers worldwide.
And their behaviors will represent
our collective norm.
FITCH describes GenZ as
“shopping in a constant state of
partial attention”.
Source:	
  FITCH	
  Gen	
  Z	
  Future	
  of	...
Success at retail in 2020 will only
be achieved by embracing this
somewhat challenging idea.
So, what will this world look like?
We see 6 trends for retail’s future
1Retail’s role in society will
change significantly by 2020.
On every level:
Macro Micro
Global and societal issues Local and community issues
Both millenials and GenZ believe
strongly in the importance of
good citizenship.
78%	
  would	
  recommend	
  a	
  company...
On a Macro level this trend will
influence the products and services
retail brands choose to provide.
Example:	
  CVS
It will drive the way we present
those products in our stores.
Example:	
  Original	
  Unverpackt
And will even lead to decisions
around the types of stores
we decide to build.
Example:	
  Walgreens
It will push us to continue to
explore how the act of buying
can be a force for good.
Example:	
  Toms
And to explore the part that retail
can play to truly make a difference
On a Micro level stores won’t just
be located in communities they
will be woven into their fabric.
Example:	
  CityTarget
”On average, CityTargets generate
double the sales per square foot of
larger Target stores.” Source:	
  USA	
  Today,	
  2...
This is indeed the new Seattle, the
post-WaMu Seattle. Here, on Second
and Union, you have the feeling that
downtown is be...
“Our stores are integral parts of
the neighborhoods we
are joining”	
  
N e i l 	
   B l u m e nt h a l , 	
   C o -­‐ C h...
IKEA
Hire local
Incentivize employees to ride to work
Employee housing
Promise to improve the site they develop
Generous Brands
Wearing your heart on your sleeve…
In a world where consumers are becoming increasingly aware of
‘mean’ br...
By 2020…
We believe shoppers will
absolutely want to know what
retailers care about.
How will acting as a “generous
brand”...
Stores in 2020 will take
many forms.
And ideas like “one size fits
all” will seem archaic.2
“Retailers will have to rethink their
scalable ―one size fits all approach.
Any retail strategy must include a plan
to fit...
We predict far fewer retail brands
by 2020. But far more variety.
Two trends:
Format Expression
Offering, footprint,
location, operations
Planned variance across
the estate
Starbucks.
2008
Militant consistency
Corporate driven messaging
1 look, 1 format
Mass production of product and service.
2008
8% drop in sales
Stock plummeted more than 50%
1,000+ Corporate layoffs
Shuttered 600 stores
2015
Exploring new formats
Empowering their people
Dialogue with their guests
Passionate commitment to causes
Format Strategy:Drive Through
Express
Urban
Suburban
Premium (Reserve)
Format Strategy: MUJI
5 formats, one city
Format Strategy: Lawsons
Not driven by products, operations
or location, but by people and
niche needs.
Happy Lawson – moms and kids
Lawson Plus – elderly
Natural Lawson – health conscious
Expression Strategy:
“The Catalog”
Operational efficiency across
format types, but everything
else has changed.
What will this combination mean
by 2020?
Format Expression
?
No two alike.
By 2020…
We believe the concept of
“engineered diversity” won’t just
be the norm, it will be mandatory.
The only question ...
3The ways in which we
speak to shoppers will
shift dramatically.
By 2020, absolute transparency
will be table stakes.
Only 5% of consumers in the
US & UK currently believe big
businesses are being
transparent enough.
Source:	
  Cohn	
  &	
 ...
“By 2020, apps will proactively inform a shopper
regarding specific issues with products or retailers upon
entering brick-...
A differentiated voice will be
critically important.
But retail brands will also be
more tight lipped.
everything’s coming up
spring
$50 everyday
liz claiborne handbag
$12 february
women’s gold toe sock 6-pack
$18-$20 everyda...
Millenials and GenZ want to
create content, not just absorb it.
And 2020 will be all about
dialogue not broadcast
25%
A d v e r t i s i n g
70%
S t r a n g e r s
w i t h
p ro d u c t
e x...
Find ways to connect with
the crowd.
And then engage it in-store.
Create destinations for
conversations.
Example:	
  TopShop	
  Chirp	
  Garden,	
  2014
Stop worrying about controlling
the message and embrace that it
can be owned by others
Example:	
  Selfridges	
  #denimlov...
When you do speak in-store, keep
it simple - Millenials already over-
index on “tuning out noise”.
Example:	
  Primark
Great visual is a draw for them
because it signals inspiration.
So let the product literally “sing”.
Example:	
  H&M
And they are apathetic to
marketing. Clutter is a turn-off for
them. So keep it ordered.
Example:	
  Uniqlo
Finally, whenever you speak, tell
the real stories behind the
product without needless fluff.
Let other people do your bragging.
And did we mention transparency?
“Leading retailers will be classified by
those that are the best
conversationalists, along with
communicating a secure and...
By 2020…
How will this manifest itself in
store?
We see a co-authored narrative
delivered with the impact of a tweet,
the ...
Seamless will be an
absolute must.4
Consumer Purchase
But while omnichannel implies
Seamless, the reality can be
anything but.
Seamless is so important because
Millenials and Zs don’t think
“clicks vs bricks.”
We believe that by 2020,
Seamless Interactions “Out Of
Store” will be largely resolved
Because the US shopper is
insanely demanding
And this demand will simply…
Demands like:Internet of things
20-30 billion “always on”
interconnected devices by 2020
Source:	
  Garnett	
  Research,	
...
Same day FREE home delivery:
No matter who ends up delivering
And concepts like:
Mobile payment:
Which will seem
like second nature
by 2020
Dominant platforms and
conventions around retail out of
store will have evolved and will
be widely embraced and adopted.
R...
#retailfailWhether retail can bridge the
yawning chasm between “Out Of
Store” and “In”
And whether the store can not just
create “continuity”, but truly pay
off and enhance the OOS activity.
It’s been an interesting month…
Remember this?
Example:	
  Piper	
  Lime
And this? With all the hype and
the backing, why did they fail?
These concepts had the logistics,
infrastructure and tools in place
and the support of backers with
deep pockets.
We belie...
By 2020…
What percentage of our in-store
media will be dedicated to
driving “continuity”?
How can we finally make the
phys...
5By 2020 the entire concept
of convenience and value
will shift.
Convenience for the new guest
will not be defined in traditional
terms of time and ease.
And certainly not in antiquated
ideas like “one-stop” shopping.
We believe the highest currency
for these new consumers will be
RELEVANCE.
89% of millenials want
personalization when they
visit stores, but only 18% see
it from retailers today.
Source:	
  Vibes	...
The customer is free interact
with the retailer on their own
terms.
Face to face
Direct/Email
Print
Television
Online
Mobi...
A shift from locating products to
locating the best products for me.
Example:	
  Forever21	
  -­‐	
  	
  ClosetSOS,	
  2014
And using technology to bring a
relevant experience in-store.
Example:	
  Klepierre	
  -­‐	
  Inspiration	
  Corridor
A new service paradigm – where
the guest is the focus, not the sale
Example:	
  Bonobos	
  –	
  Guideshops
In 2013, the overwhelming reason
shoppers changed brands was
poor customer service (66%). In
almost every case (88%) the
s...
And service empowered by
technology
Example:	
  Virgin	
  –	
  Google	
  Glass	
  partnership
Part of personalization will be
the ability to customize/tailor
more and more products.
Example:	
  Creyate
All, of course, executed in a way
that is wholly seamless.
Example:	
  Creyate
By 2020…
Imagine a 150,000 square foot
store that treats everyone in it as
an individual.
What will it take to get us ther...
Experience will
remain king.6
Foot traffic is down.
N o v / D e c F o o t Tr a ff i c
40 Billion Visits
30
20
10
2010 2011 2012 2013
1 7 . 6 B i l l i o...
The sky is fricking falling.
N o v / D e c F o o t Tr a ff i c
40 Billion Visits
30
20
10
2010 2011 2012 2013
1 7 . 6 B i ...
There are now less than 50% of
the warm bodies in US retail
stores during the biggest
shopping season of the year than
wer...
Only in stores delivering truly
unique experiences do we see
increased visits and footfalls.
And in-store experiences remain
the absolute best way to engage
and connect with shoppers.
The 19-year commercial Web
experiment has shown; you can't hold
attention for very long, can't offer a
point of view, can'...
Stores re-imagined around unique,
defensible branded experiences may
well be the biggest change over the
next 5 years.
And...
So, what are we waiting for?
The problem? True “experience stores”
are expensive, complicated and difficult
to scale.
Even when you only have 8 of them
Experience Signatures
An Experience Signature is a distinct
collection of brand led moments,
totally unique in combination from
one brand to the...
A retailer’s Experience Signature lies
at the heart of why we choose one
store over another.
They are the things retailers...
PEOPLE
PLACES
COMMS
TOOLS
EVENTS
SERVICES
WEB
SOCIAL
GUEST
Today, these moments of connection
are often fractured, and only
sporadically effective
PEOPLE
PLACES
COMMS
TOOLS
E V E N T S
SERVICES WEB
SOCIAL
GUEST
In an Experience Signature the
moments of connection are unified,
and brought into harmony
PEOPLE
PLACES
COMMS
TOOLS EVENTS
SERVICES
WEB
SOCIAL
PEOPLE
PLACES
COMMS
TOOLS EVENTS
SERVICES
WEB
SOCIAL
GUEST
PARITY
DUPLICATION
PEOPLE
PLACES
COMMS
TOOLS EVENTS
SERVICES
WEB
SOCIAL
BRAND
DISTINCTION
DIFFERENTIATION
Only with touchpoints in harmony, and
infused with a brand’s DNA, have we
achieved an Experience Signature
A way to express yourself to the
world that feels intuitively right
And which simply couldn’t be
someone else’s
By 2020…
We believe the brands who are
thriving will be the ones who have
crafted the strongest Experience
Signatures.
And...
If you’d like to know more…
www.fitch.com
www.slideshare.net/FITCH_design
To finish…BONUS LAS VEGAS
THEMED DISCLAIMER!!!!!
No one can predict the future
And listening to data can be dangerous
1977:170
2000: 80,000
# of Elvis impersonators
Time
1977
RIP Elvis
Plot this data trail to its logical
conclusion…
We believe that by 2043…
So again, no one can predict the future
“But equally no-one can afford to be
unprepared for what does arrive.”
Source:(Wa+s(Wacker,(Futurist(
thanks…
www.fitch.com
FITCH thinks of Seamless as a
palette of touchpoints
Physical: The tangible – from objects that can be touched to
settings...
Exploring
Purchase intent
in the category
Locating
Specific product
or service
Dreaming
No specific
purchase intent
Being ...
PHD/DEL MATRIX
Physical
Digital
Human
Dreaming Exploring Locating
PHD/DEL MATRIX
Physical
Digital
Human
Dreaming Exploring Locating
PHD/DEL MATRIX
Physical
Digital
Human
Dreaming Exploring Locating
PHD/DEL MATRIX
Physical
Digital
Human
Dreaming Exploring Locating
The Holy Grail of Seamless is true
omnichannel retail
multichannel
crosschannel
omnichannel
Shopping using different chann...
To achieve that a Holy Grail we
have to know what it is…
Crosschannel done well or with more finesseOmnichannel is not:
Om...
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50
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Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50

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Against a backdrop of seismic shifts in our retail landscape, Christian Davies, Executive Creative Director, Americas at FITCH took the audience on a global tour of the major trends that will be the norm by the time we’re ringing in the New Year of 2020. Emerging trends are mapped against new shopper behaviors and the rise of Gen Z – set to be the largest group of shoppers globally by 2020 – and by new realities of retail operations, language and purpose. This presentation was given at Globalshop in Las Vegas on March 26th, 2015.

Published in: Marketing

Retail 2020: Retail Will Change more in the Next 5 Years than the Last 50

  1. 1. Generous Brands   Serious Business of Play   Joy of Shopping   GenZ Retail’s New Reality   Experience Signatures   Must Sees   Quarterly trend reports   Kantar Retail/PWC Retail 2020 Where we got our thinking:
  2. 2.   #FITCHRetail2020 @FITCHdesign   @cdaviesFITCH Join the discussion
  3. 3. Retail will change more in the next 5 years than the last 50
  4. 4. The fundamentals of what a store “is” (its purpose and its function) are in flux.
  5. 5. This change is not just driven by economic, product or industry trends (although they remain an influence).
  6. 6. Rather, tomorrow’s store is being shaped by new behaviors, needs and demands of shoppers.
  7. 7. In 5 short years…X Y Z
  8. 8. By 2020, Xers will be enjoying the fruits of the peak-earnings decade of their careers.
  9. 9. While quietly freaking out about their ill-planned retirement.
  10. 10. By 2020, Millennials will no longer be the kids in your store.
  11. 11. In fact, they are more likely to be shopping for their kids.
  12. 12. Retail today is “under-delivering against millenials’ expectations.” Source:  Accenture  Millenial  Outlook,  2013
  13. 13. The brands thriving in 2020 will clearly have solved this challenge. Happy Millennial
  14. 14. Because lack of engagement with a group this big is not optional Net effect of bored Millennials
  15. 15. GenZ will be the newbies, but collectively they are retail’s future.
  16. 16. By 2020, they will be the largest group of shoppers worldwide.
  17. 17. And their behaviors will represent our collective norm.
  18. 18. FITCH describes GenZ as “shopping in a constant state of partial attention”. Source:  FITCH  Gen  Z  Future  of  Shopping  Report,  2014
  19. 19. Success at retail in 2020 will only be achieved by embracing this somewhat challenging idea.
  20. 20. So, what will this world look like? We see 6 trends for retail’s future
  21. 21. 1Retail’s role in society will change significantly by 2020.
  22. 22. On every level: Macro Micro Global and societal issues Local and community issues
  23. 23. Both millenials and GenZ believe strongly in the importance of good citizenship. 78%  would  recommend  a  company  seen  as  such   74%  would  be  proud  to  be  associated  with  it     71%  say  they  would  be  loyal  to  such  a  business. Source:  MSL  Future  of  Business  Citizenship  Report,  2014
  24. 24. On a Macro level this trend will influence the products and services retail brands choose to provide. Example:  CVS
  25. 25. It will drive the way we present those products in our stores. Example:  Original  Unverpackt
  26. 26. And will even lead to decisions around the types of stores we decide to build. Example:  Walgreens
  27. 27. It will push us to continue to explore how the act of buying can be a force for good. Example:  Toms
  28. 28. And to explore the part that retail can play to truly make a difference
  29. 29. On a Micro level stores won’t just be located in communities they will be woven into their fabric. Example:  CityTarget
  30. 30. ”On average, CityTargets generate double the sales per square foot of larger Target stores.” Source:  USA  Today,  2015
  31. 31. This is indeed the new Seattle, the post-WaMu Seattle. Here, on Second and Union, you have the feeling that downtown is beginning to rise. The Seattle Stranger, August 2012 Example:  CityTarget
  32. 32. “Our stores are integral parts of the neighborhoods we are joining”   N e i l   B l u m e nt h a l ,   C o -­‐ C h i e f   E xe c u t i v e ,   Wa r b y   Pa r ke r  
  33. 33. IKEA Hire local Incentivize employees to ride to work Employee housing Promise to improve the site they develop
  34. 34. Generous Brands Wearing your heart on your sleeve… In a world where consumers are becoming increasingly aware of ‘mean’ brands it was time to begin researching the concept of generosity. Generous brands are those who show more of a heartbeat, take the first step and display a genuine understanding of their customer needs. This is a long way from 2 for 1 deals and bonus points, but rather a tone of voice and general personality that encourages consumers to warm to their offer and become advocates.
  35. 35. By 2020… We believe shoppers will absolutely want to know what retailers care about. How will acting as a “generous brand” define the future for stores?
  36. 36. Stores in 2020 will take many forms. And ideas like “one size fits all” will seem archaic.2
  37. 37. “Retailers will have to rethink their scalable ―one size fits all approach. Any retail strategy must include a plan to fit the ever-diverging needs of the US shopper.” Source:  Kantar  Retail/PWC  Retailing  2020  Report,  2014
  38. 38. We predict far fewer retail brands by 2020. But far more variety.
  39. 39. Two trends: Format Expression Offering, footprint, location, operations Planned variance across the estate
  40. 40. Starbucks.
  41. 41. 2008 Militant consistency Corporate driven messaging 1 look, 1 format Mass production of product and service.
  42. 42. 2008 8% drop in sales Stock plummeted more than 50% 1,000+ Corporate layoffs Shuttered 600 stores
  43. 43. 2015 Exploring new formats Empowering their people Dialogue with their guests Passionate commitment to causes
  44. 44. Format Strategy:Drive Through Express Urban Suburban Premium (Reserve)
  45. 45. Format Strategy: MUJI 5 formats, one city
  46. 46. Format Strategy: Lawsons Not driven by products, operations or location, but by people and niche needs.
  47. 47. Happy Lawson – moms and kids
  48. 48. Lawson Plus – elderly
  49. 49. Natural Lawson – health conscious
  50. 50. Expression Strategy: “The Catalog”
  51. 51. Operational efficiency across format types, but everything else has changed.
  52. 52. What will this combination mean by 2020? Format Expression ?
  53. 53. No two alike.
  54. 54. By 2020… We believe the concept of “engineered diversity” won’t just be the norm, it will be mandatory. The only question will be: what formats, forms and expressions make the most sense?
  55. 55. 3The ways in which we speak to shoppers will shift dramatically.
  56. 56. By 2020, absolute transparency will be table stakes.
  57. 57. Only 5% of consumers in the US & UK currently believe big businesses are being transparent enough. Source:  Cohn  &  Wolfe  Oct,  2013
  58. 58. “By 2020, apps will proactively inform a shopper regarding specific issues with products or retailers upon entering brick-and-mortar stores or websites. Managing and manipulating information (rumor control), will be more of an issue than ever as flash truth reports are distributed more frequently. Brand management by 2020 will need to develop a host of new skills, tools, and communication modes, both nimble and innovative, than are typical today.” Source:  Kantar  Retail/PWC  Retailing  2020  Report,  2014
  59. 59. A differentiated voice will be critically important.
  60. 60. But retail brands will also be more tight lipped.
  61. 61. everything’s coming up spring $50 everyday liz claiborne handbag $12 february women’s gold toe sock 6-pack $18-$20 everyday misses’ bisou bisou swimwear $75 everyday men’s nike shoes $17 everyday juniors’ arizona shirt $12 february men’s st. john’s bay polo $15 february misses’ made for life jacket $30 february twin comforter set $20 everyday juniors’ olsenboye blouse $130 everyday rachael ray 10-pc. cookware set $14-$20 everyday floppy hat or thong sandal $14 everyday mixit bracelet $20-$25 everyday men’s j. ferrar shirt or tie $4 everyday home expressions bath towel $ everything’s coming up spring $50 everyday liz claiborne handbag $12 february women’s gold toe sock 6-pack $18-$20 everyday misses’ bisou bisou swimwear $75 everyday men’s nike shoes $17 everyday juniors’ arizona shirt $12 february men’s st. john’s bay polo $15 february misses’ made for life jacket $30 february twin comforter set $20 everyday juniors’ olsenboye blouse $130 everyday rachael ray 10-pc. cookware set $14-$20 everyday floppy hat or thong sandal $14 everyday mixit bracelet $20-$25 everyday men’s j. ferrar shirt or tie $4 everyday home expressions bath towel everything’s coming up spring $50 everyday liz claiborne handbag $12 february women’s gold toe sock 6-pack $18-$20 everyday misses’ bisou bisou swimwear $75 everyday men’s nike shoes $17 everyday juniors’ arizona shirt $12 february men’s st. john’s bay polo $15 february misses’ made for life jacket $30 february twin comforter set $20 everyday juniors’ olsenboye blouse $130 everyday rachael ray 10-pc. cookware set $14-$20 everyday floppy hat or thong sandal $14 everyday mixit bracelet $20-$25 everyday men’s j. ferrar shirt or tie $4 everyday home expressions bath towel The good news? Ours won’t be the loudest, or most important voice at all. .
  62. 62. Millenials and GenZ want to create content, not just absorb it.
  63. 63. And 2020 will be all about dialogue not broadcast 25% A d v e r t i s i n g 70% S t r a n g e r s w i t h p ro d u c t e x p e r i e n c e 90% F r i e n d s w i t h p ro d u c t e x p e r i e n c e Source:  Edelman  Trust  Barometer,  2014
  64. 64. Find ways to connect with the crowd.
  65. 65. And then engage it in-store.
  66. 66. Create destinations for conversations. Example:  TopShop  Chirp  Garden,  2014
  67. 67. Stop worrying about controlling the message and embrace that it can be owned by others Example:  Selfridges  #denimlovers
  68. 68. When you do speak in-store, keep it simple - Millenials already over- index on “tuning out noise”. Example:  Primark
  69. 69. Great visual is a draw for them because it signals inspiration. So let the product literally “sing”. Example:  H&M
  70. 70. And they are apathetic to marketing. Clutter is a turn-off for them. So keep it ordered. Example:  Uniqlo
  71. 71. Finally, whenever you speak, tell the real stories behind the product without needless fluff.
  72. 72. Let other people do your bragging.
  73. 73. And did we mention transparency?
  74. 74. “Leading retailers will be classified by those that are the best conversationalists, along with communicating a secure and self- confident image to their consumers.” Source:  Kantar  Retail/PWC  Retailing  2020  Report,  2014
  75. 75. By 2020… How will this manifest itself in store? We see a co-authored narrative delivered with the impact of a tweet, the interest of a pin, and the emotional pull of a post.
  76. 76. Seamless will be an absolute must.4
  77. 77. Consumer Purchase But while omnichannel implies Seamless, the reality can be anything but.
  78. 78. Seamless is so important because Millenials and Zs don’t think “clicks vs bricks.”
  79. 79. We believe that by 2020, Seamless Interactions “Out Of Store” will be largely resolved
  80. 80. Because the US shopper is insanely demanding
  81. 81. And this demand will simply…
  82. 82. Demands like:Internet of things 20-30 billion “always on” interconnected devices by 2020 Source:  Garnett  Research,  2014
  83. 83. Same day FREE home delivery: No matter who ends up delivering
  84. 84. And concepts like: Mobile payment: Which will seem like second nature by 2020
  85. 85. Dominant platforms and conventions around retail out of store will have evolved and will be widely embraced and adopted. Retail brands en-masse will be adept at managing and supporting these channels. But one problem will still exist
  86. 86. #retailfailWhether retail can bridge the yawning chasm between “Out Of Store” and “In”
  87. 87. And whether the store can not just create “continuity”, but truly pay off and enhance the OOS activity.
  88. 88. It’s been an interesting month… Remember this?
  89. 89. Example:  Piper  Lime And this? With all the hype and the backing, why did they fail?
  90. 90. These concepts had the logistics, infrastructure and tools in place and the support of backers with deep pockets. We believe they lacked continuity in their in store experience and that will need to be our biggest focus in the future.
  91. 91. By 2020… What percentage of our in-store media will be dedicated to driving “continuity”? How can we finally make the physical store enhance our OOS activities?
  92. 92. 5By 2020 the entire concept of convenience and value will shift.
  93. 93. Convenience for the new guest will not be defined in traditional terms of time and ease.
  94. 94. And certainly not in antiquated ideas like “one-stop” shopping.
  95. 95. We believe the highest currency for these new consumers will be RELEVANCE.
  96. 96. 89% of millenials want personalization when they visit stores, but only 18% see it from retailers today. Source:  Vibes  Marketing  Personalization  Report,  2013
  97. 97. The customer is free interact with the retailer on their own terms. Face to face Direct/Email Print Television Online MobileCall Centre Loyalty E-commerce Review Advice and Support Search Social Bricks and Mortar Consumer 4 3 1 2 5 1 2 3 Shopper centric path to purchase. How they want to buy, not how we want to sell.
  98. 98. A shift from locating products to locating the best products for me. Example:  Forever21  -­‐    ClosetSOS,  2014
  99. 99. And using technology to bring a relevant experience in-store. Example:  Klepierre  -­‐  Inspiration  Corridor
  100. 100. A new service paradigm – where the guest is the focus, not the sale Example:  Bonobos  –  Guideshops
  101. 101. In 2013, the overwhelming reason shoppers changed brands was poor customer service (66%). In almost every case (88%) the situation could have been saved, but wasn’t. Source:  Accenture  Global  Consumer  Pulse  Survey,  Nov  2013
  102. 102. And service empowered by technology Example:  Virgin  –  Google  Glass  partnership
  103. 103. Part of personalization will be the ability to customize/tailor more and more products. Example:  Creyate
  104. 104. All, of course, executed in a way that is wholly seamless. Example:  Creyate
  105. 105. By 2020… Imagine a 150,000 square foot store that treats everyone in it as an individual. What will it take to get us there?
  106. 106. Experience will remain king.6
  107. 107. Foot traffic is down. N o v / D e c F o o t Tr a ff i c 40 Billion Visits 30 20 10 2010 2011 2012 2013 1 7 . 6 B i l l i o n Source:  The  Wall  Street  Journal,  2014
  108. 108. The sky is fricking falling. N o v / D e c F o o t Tr a ff i c 40 Billion Visits 30 20 10 2010 2011 2012 2013 1 7 . 6 B i l l i o n Source:  The  Wall  Street  Journal,  2015 2014
  109. 109. There are now less than 50% of the warm bodies in US retail stores during the biggest shopping season of the year than were there 5 years ago. How many will there be in our stores 5 years from now?
  110. 110. Only in stores delivering truly unique experiences do we see increased visits and footfalls.
  111. 111. And in-store experiences remain the absolute best way to engage and connect with shoppers.
  112. 112. The 19-year commercial Web experiment has shown; you can't hold attention for very long, can't offer a point of view, can't control the experience, and, in a sense, never own your audience — at best, it's a fleeting, utility-like relationship. Source:  Michael  Wolff,  USA  Today,  2013
  113. 113. Stores re-imagined around unique, defensible branded experiences may well be the biggest change over the next 5 years. And tomorrow’s shopper craves these experiences.
  114. 114. So, what are we waiting for?
  115. 115. The problem? True “experience stores” are expensive, complicated and difficult to scale.
  116. 116. Even when you only have 8 of them
  117. 117. Experience Signatures
  118. 118. An Experience Signature is a distinct collection of brand led moments, totally unique in combination from one brand to the next.
  119. 119. A retailer’s Experience Signature lies at the heart of why we choose one store over another. They are the things retailers become known for. They are the reasons we come back for more.
  120. 120. PEOPLE PLACES COMMS TOOLS EVENTS SERVICES WEB SOCIAL GUEST
  121. 121. Today, these moments of connection are often fractured, and only sporadically effective
  122. 122. PEOPLE PLACES COMMS TOOLS E V E N T S SERVICES WEB SOCIAL GUEST
  123. 123. In an Experience Signature the moments of connection are unified, and brought into harmony
  124. 124. PEOPLE PLACES COMMS TOOLS EVENTS SERVICES WEB SOCIAL
  125. 125. PEOPLE PLACES COMMS TOOLS EVENTS SERVICES WEB SOCIAL GUEST
  126. 126. PARITY
  127. 127. DUPLICATION
  128. 128. PEOPLE PLACES COMMS TOOLS EVENTS SERVICES WEB SOCIAL BRAND
  129. 129. DISTINCTION
  130. 130. DIFFERENTIATION
  131. 131. Only with touchpoints in harmony, and infused with a brand’s DNA, have we achieved an Experience Signature
  132. 132. A way to express yourself to the world that feels intuitively right
  133. 133. And which simply couldn’t be someone else’s
  134. 134. By 2020… We believe the brands who are thriving will be the ones who have crafted the strongest Experience Signatures. And are well on the road to redefining a bright future for physical stores.
  135. 135. If you’d like to know more… www.fitch.com www.slideshare.net/FITCH_design
  136. 136. To finish…BONUS LAS VEGAS THEMED DISCLAIMER!!!!!
  137. 137. No one can predict the future
  138. 138. And listening to data can be dangerous
  139. 139. 1977:170
  140. 140. 2000: 80,000
  141. 141. # of Elvis impersonators Time 1977 RIP Elvis Plot this data trail to its logical conclusion…
  142. 142. We believe that by 2043…
  143. 143. So again, no one can predict the future
  144. 144. “But equally no-one can afford to be unprepared for what does arrive.” Source:(Wa+s(Wacker,(Futurist(
  145. 145. thanks… www.fitch.com
  146. 146. FITCH thinks of Seamless as a palette of touchpoints Physical: The tangible – from objects that can be touched to settings that can be experienced Human: Dynamic interactions – with individuals, employees and social groups Digital: Electronic Tools – technologies that talk to everyone, or just talk to me P H D
  147. 147. Exploring Purchase intent in the category Locating Specific product or service Dreaming No specific purchase intent Being inspired Learning Having fun Browse easily More information Narrow choices Easy to find Useful reminders Reassurance
  148. 148. PHD/DEL MATRIX Physical Digital Human Dreaming Exploring Locating
  149. 149. PHD/DEL MATRIX Physical Digital Human Dreaming Exploring Locating
  150. 150. PHD/DEL MATRIX Physical Digital Human Dreaming Exploring Locating
  151. 151. PHD/DEL MATRIX Physical Digital Human Dreaming Exploring Locating
  152. 152. The Holy Grail of Seamless is true omnichannel retail multichannel crosschannel omnichannel Shopping using different channels Several channels, same purchase Simultaneous use of channels and seamless delivery between them
  153. 153. To achieve that a Holy Grail we have to know what it is… Crosschannel done well or with more finesseOmnichannel is not: Omnichannel is: Continuous Retail: Interconnectedness between touchpoints everywhere and anywhere Perceiving all things and creating a true CONTINUITY of experience

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