Key Consumer Trends and how they affect retail
FUTURELAB
a more customer-friendly place
On a mission to make the world
FUTURELAB
Alain Thys: ath@futurelab.net
Some credentials
PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE...
PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE...
(cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
FUTURELAB
Demographics
Source: Eurostat, 2011
1991
2011
2021
WomenMen
Demographic Pyramid
EU-27
(cc) ThomasSoerenes
Shoppers are get...
Demographics
± 1/3 of the population
> 80% of the wealth
> 50 yrs old
Image: (cc) Chris_Parfitt
Shoppers are getting older...
Demographics
Shoppers are getting more multi-cultural
Source: Daily Mail Online, August 2013
Immigration numbers by countr...
Shoppers live in ever smaller households
(cc) arileu
Aging
Divorce
Choice
Career
Demographics
FUTURELAB
Are you really taking their needs seriously?
Influence on retail
Store format – Merchandise selection – Staff behaviour & ...
Catering to a specific age group
Remarkable practice
FUTURELAB
Catering to different cultural values
Remarkable practice
Korea: Lavendel
Halal, Rice-based Skincare
Metropolitan restaura...
Catering to singles
Remarkable practice
Slunch Factory (Korea)
Single household lunch box
Supermarket dating
Help singles ...
(cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
FUTURELAB
98.1
90
80.5
64
35.9
3.7
16-24 25-34 35-44 45-54 55-64 65-74
Internet access by age group
Lithuania, Q1-2012
The internet ...
In-store smartphone usage per category
US, 2013
Mobile ―is‖ part of the shopping experience
Digital Reality
Source: Google...
36
43
53
60
Lithuania
2011
Lithuania
2012
Denmark UK
Sources: The Baltic Course, May 2013 - OECD, 2012
Ecommerce is part o...
Digital Transparency Rules
Digital Reality
Quality Price
Coming soon to Europe:
FUTURELAB
Are you ready for the omnichannel reality?
Influence on retail
International competitionAlways on transparency Showrooming...
Make shopping easy
Remarkable practices
Panty Subscription Service (CA)
Fastest delivery
From store to house in minutes (U...
Is it a store or a showroom?
Remarkable practices
Apple stores John Lewis Exeter
About 60% of our customers buy both
onlin...
Hybrid Shopping
Remarkable practices
FUTURELAB
An unusual approach
Remarkable practices
Brisbane, Australia, 2013
FUTURELAB
(cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
FUTURELAB
Scarcity
Mindset
Time Money
Decreasing disposable income
More planned buying
Growth in private label
Shrinking share of wa...
Indulgence
Mindset
Entertain meMake it beautiful (Design matters)
FUTURELAB
Conscience (& scepticism)
Mindset
Health World
84% percent of millenials (18-32 yrs) in
Europe, Asia and US believe it is ...
Are you ready for changing consumer mindset?
Influence on retail
Health and environmentEfficiency with time & money Design...
19/03/2014 29.
Tesco Homeplus Korea (by now a ―classic‖)
Remarkable practices
FUTURELAB
Disarming detractors
No one can do this on his own
Brand Utility Examples
GS 25 Virtual fridge
FUTURELAB
Korean supermarke...
Italian food shopping … redefined
Remarkable practices
FUTURELAB
Disarming detractors
No one can do this on his own
Remarkable practices
It doesn’t have to be so elaborate
HEB Supermarket...
Disarming detractors
No one can do this on his own
Remarkable practices
Just be honest
FUTURELAB
PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE...
19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relev...
Disarming detractors
No one can do this on his own
Secure the basics
Yesterday, mistakes could be forgiven … no more.
FUTU...
Disarming detractors
No one can do this on his own
Secure the basics
Digital Basics
Fast website
Easy shopping
Mobile avai...
Disarming detractors
No one can do this on his own
Secure the basics
Retail basics
Opening hours - Retail standards
Staffi...
Secure the basics
Tactically responding to customer queries
What is the % of helpdesk questions that “never get answered”
...
Disarming detractors
No one can do this on his own
Secure the basics
Structurally acting on customer feedback
90%
Collect
...
Remarkable practice: Applying common sense to basics can take you far
Metro Bank
There’s more
Leave the bank with
your car...
Disarming detractors
No one can do this on his own
Remarkable practice: Applying common sense to basics can take you far
O...
19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relev...
Complete & relevant experiences
To avoid misunderstandings
“Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go W...
Complete & relevant experiences
To avoid misunderstandings
I am talking about “really connecting” with your customers
FUTU...
The biggest CX challenge
Most companies
wear blinders on
customer experience
FUTURELAB
(cc) Emilio Labrador
47
Travel company
Which are the customer steps when going on a holiday
FUTURELAB
1. I dream of going on holiday
2. I resea...
48
Ask yourself
Which steps in the journey do travelco’s manage?
FUTURELAB
1. I dream of going on holiday
2. I research my...
49.
Remarkable practice
CEE Mall: Different customers, different experiences
Planning Departure Journey Arrival Decompress...
19/03/2014 50.
Deliver relevant experiences
Three steps
1. Map your customer’s TRUE journey (think ―beyond‖ your store)
2....
19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relev...
Embrace technology
Consider technology
• To enhance the experience
• To become more ―lean‖
• To challenge conventions
FUTU...
Embrace technology
Look beyond the apps • Customer vs. Shopping cart analytics
Customer contacts
Support functions
Managem...
Embrace technology
Look beyond the apps
Customer vs. Shopping cart analytics
Data Discovery
Predictive modeling
Customer
I...
Different customers, different styles
Selecting a handset Managing Services
Simple enough but not too simple
Tariffs Billi...
Remarkable thought
Point of inspiration: Sharing Data?
SVP Digital Business, L’Oréal Group
“Brands and retailers need to l...
PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE...
A few words on payment
I Thought Long and Hard
(cc)BrianHillegas
A few words on payment
And it was tempting to go ―visionary‖
Disney electronic wristbandMobile (NFC) wallets Implants (Bar...
A few words on payment
And it was tempting to go ―visionary‖
FUTURELAB
Points on Kindle, tomorrow??
Alternative currency P...
A few words on payment
But pragmatism rules
Offer every payment option Lithuanian customers desire.
Belgium
1. Credit card...
Two questions to ask yourself
How can I simplify?
FUTURELAB
Two questions to ask yourself
Who owns the customer?
―other‖ locations ??
FUTURELAB
PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE...
FUTURELAB
E: ath@futurelab.net
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Consumer trends and the way they affect retail

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This Slideshare focuses on some of the key consumer trends in the market and the way customer-centric retailers can adapt to them. It is a compilation of presentations Alain Thys gave to groups of retailers in Vilnius (Nov 2013) and Tallinn (March 2014).

Published in: Marketing

Consumer trends and the way they affect retail

  1. 1. Key Consumer Trends and how they affect retail FUTURELAB
  2. 2. a more customer-friendly place On a mission to make the world FUTURELAB Alain Thys: ath@futurelab.net Some credentials
  3. 3. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
  4. 4. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
  5. 5. (cc)nggalai Key shopper trends and how they affect retail • Demographics • Technology • Mindset FUTURELAB
  6. 6. Demographics Source: Eurostat, 2011 1991 2011 2021 WomenMen Demographic Pyramid EU-27 (cc) ThomasSoerenes Shoppers are getting older FUTURELAB
  7. 7. Demographics ± 1/3 of the population > 80% of the wealth > 50 yrs old Image: (cc) Chris_Parfitt Shoppers are getting older 43.4 46.1 48 49.6 1999 2004 2008 2013 Sources: trendwatching.com, 2013 Cyril Huze Post - 2013 Average age of Harley Davidson driver. FUTURELAB
  8. 8. Demographics Shoppers are getting more multi-cultural Source: Daily Mail Online, August 2013 Immigration numbers by country, 2012 (cc)epSos.de FUTURELAB
  9. 9. Shoppers live in ever smaller households (cc) arileu Aging Divorce Choice Career Demographics FUTURELAB
  10. 10. Are you really taking their needs seriously? Influence on retail Store format – Merchandise selection – Staff behaviour & know how - … (cc) augapfel© Galina Barskaya (c)Getty Images Ageing Immigration Non-traditional households FUTURELAB
  11. 11. Catering to a specific age group Remarkable practice FUTURELAB
  12. 12. Catering to different cultural values Remarkable practice Korea: Lavendel Halal, Rice-based Skincare Metropolitan restaurants Halal food at McDonald’s FUTURELAB
  13. 13. Catering to singles Remarkable practice Slunch Factory (Korea) Single household lunch box Supermarket dating Help singles meet FUTURELAB
  14. 14. (cc)nggalai Key shopper trends and how they affect retail • Demographics • Technology • Mindset FUTURELAB
  15. 15. 98.1 90 80.5 64 35.9 3.7 16-24 25-34 35-44 45-54 55-64 65-74 Internet access by age group Lithuania, Q1-2012 The internet ―has‖ changed the way we buy Digital Reality Source: Statistics Lithuania, August 2012 Holidays Cars Books What isn’t in Lithuania today, will come. Insurances FUTURELAB
  16. 16. In-store smartphone usage per category US, 2013 Mobile ―is‖ part of the shopping experience Digital Reality Source: Google Shopper Marketing Council, August 2013 ―On an average day, more than 100,000 unique customers access Nordstrom on a mobile device, with nearly twice that amount during the holidays,‖ In 2012, sales from a mobile device accounted for over 20%—more than $260 million—of the company’s total direct (digital) sales. Compared to less than 4% in 2010.‖ Source: Internet retailer, February 2013 FUTURELAB
  17. 17. 36 43 53 60 Lithuania 2011 Lithuania 2012 Denmark UK Sources: The Baltic Course, May 2013 - OECD, 2012 Ecommerce is part of life for every retailer Digital Reality % of population purchasing online 42% of UK electronic goods buyers will look at products in store before buying online from a different retailer. Source: The Consumer Decision Journey, Microsoft, 2013 Image:(cc)CliveDarra FUTURELAB
  18. 18. Digital Transparency Rules Digital Reality Quality Price Coming soon to Europe: FUTURELAB
  19. 19. Are you ready for the omnichannel reality? Influence on retail International competitionAlways on transparency Showrooming Image: (cc) Clive Darra FUTURELAB
  20. 20. Make shopping easy Remarkable practices Panty Subscription Service (CA) Fastest delivery From store to house in minutes (UK) … FUTURELAB
  21. 21. Is it a store or a showroom? Remarkable practices Apple stores John Lewis Exeter About 60% of our customers buy both online and in shops so the approach is to make it absolutely seamless for them to move from one to the other. FUTURELAB
  22. 22. Hybrid Shopping Remarkable practices FUTURELAB
  23. 23. An unusual approach Remarkable practices Brisbane, Australia, 2013 FUTURELAB
  24. 24. (cc)nggalai Key shopper trends and how they affect retail • Demographics • Technology • Mindset FUTURELAB
  25. 25. Scarcity Mindset Time Money Decreasing disposable income More planned buying Growth in private label Shrinking share of wallet for everyone Life gets busier Time scarcity = more efficient shopping Desire for work-life balance = shopping is a chore Desire for one-stop service & product shopping FUTURELAB
  26. 26. Indulgence Mindset Entertain meMake it beautiful (Design matters) FUTURELAB
  27. 27. Conscience (& scepticism) Mindset Health World 84% percent of millenials (18-32 yrs) in Europe, Asia and US believe it is their generation’s duty to change the world Health and wellness is becoming a priority but consumers find it difficult to decode product labeling and nutritional claims. The cat is out of the bag Out of 5,296 products, 95% made at least one false claim Source: Terrachoice, 2012 Source: Bord Bia’s 2010 Periscope study Source: The Guardian, April 2013 FUTURELAB
  28. 28. Are you ready for changing consumer mindset? Influence on retail Health and environmentEfficiency with time & money Design and entertainment Image: (cc) PhotoAtelier Image: (c) Mike Powell FUTURELAB
  29. 29. 19/03/2014 29. Tesco Homeplus Korea (by now a ―classic‖) Remarkable practices FUTURELAB
  30. 30. Disarming detractors No one can do this on his own Brand Utility Examples GS 25 Virtual fridge FUTURELAB Korean supermarket let’s consumers store 2-for-1 promotions in a ―virtual refrigorator‖
  31. 31. Italian food shopping … redefined Remarkable practices FUTURELAB
  32. 32. Disarming detractors No one can do this on his own Remarkable practices It doesn’t have to be so elaborate HEB Supermarkets (Texs) 11% growth in men’s care products within 1 year FUTURELAB
  33. 33. Disarming detractors No one can do this on his own Remarkable practices Just be honest FUTURELAB
  34. 34. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
  35. 35. 19/03/2014(cc) Andreas Kollmorgen Preparing for the changing retail reality • Secure the basics • Offer complete and relevant experiences • Focus technology on the customer FUTURELAB
  36. 36. Disarming detractors No one can do this on his own Secure the basics Yesterday, mistakes could be forgiven … no more. FUTURELAB
  37. 37. Disarming detractors No one can do this on his own Secure the basics Digital Basics Fast website Easy shopping Mobile availability Online security Quality home delivery Variety in payment options Social integration … FUTURELAB
  38. 38. Disarming detractors No one can do this on his own Secure the basics Retail basics Opening hours - Retail standards Staffing - Merchandise availability - Store design (cc)JasonRosenberg FUTURELAB
  39. 39. Secure the basics Tactically responding to customer queries What is the % of helpdesk questions that “never get answered” (Insites Consulting, 2010 – n=500 senior marketers in Benelux, France, Germany, UK) 11-28%depending on the channel FUTURELAB
  40. 40. Disarming detractors No one can do this on his own Secure the basics Structurally acting on customer feedback 90% Collect Customer Feedback Alert Staff to Findings 50% Make decisions using insights 30% Deploy improve 10% Inform customers of change 5% Source:BupaInternational,2009 DEBATE WHERE IS YOUR BUSINESS? FUTURELAB
  41. 41. Remarkable practice: Applying common sense to basics can take you far Metro Bank There’s more Leave the bank with your card Have a coffee next door if you need to wait (with alerts) Friendly & smiling recruitment policy FUTURELAB
  42. 42. Disarming detractors No one can do this on his own Remarkable practice: Applying common sense to basics can take you far Own experiences Minimum Standards Brilliant Basics FUTURELAB
  43. 43. 19/03/2014(cc) Andreas Kollmorgen Preparing for the changing retail reality • Secure the basics • Offer complete and relevant experiences • Focus technology on the customer FUTURELAB
  44. 44. Complete & relevant experiences To avoid misunderstandings “Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go WOOOOOWW!!” When I talk about experiences I’m not talking about. FUTURELAB
  45. 45. Complete & relevant experiences To avoid misunderstandings I am talking about “really connecting” with your customers FUTURELAB
  46. 46. The biggest CX challenge Most companies wear blinders on customer experience FUTURELAB (cc) Emilio Labrador
  47. 47. 47 Travel company Which are the customer steps when going on a holiday FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories
  48. 48. 48 Ask yourself Which steps in the journey do travelco’s manage? FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories
  49. 49. 49. Remarkable practice CEE Mall: Different customers, different experiences Planning Departure Journey Arrival Decompression Exit Journey Remember Returns Shop BuyDwell The Shoppers Journey
  50. 50. 19/03/2014 50. Deliver relevant experiences Three steps 1. Map your customer’s TRUE journey (think ―beyond‖ your store) 2. Identify key choice and loyalty drivers for each shopper archetype you target 3. Develop experiences which match these drivers at EVERY journey step FUTURELAB
  51. 51. 19/03/2014(cc) Andreas Kollmorgen Preparing for the changing retail reality • Secure the basics • Offer complete and relevant experiences • Focus technology on the customer FUTURELAB
  52. 52. Embrace technology Consider technology • To enhance the experience • To become more ―lean‖ • To challenge conventions FUTURELAB
  53. 53. Embrace technology Look beyond the apps • Customer vs. Shopping cart analytics Customer contacts Support functions Management CEO Customer Reality Seamless Experience Single view of the customer FUTURELAB
  54. 54. Embrace technology Look beyond the apps Customer vs. Shopping cart analytics Data Discovery Predictive modeling Customer Intelligence Voice of customer Voice of business Voice of employee Voice of market FUTURELAB
  55. 55. Different customers, different styles Selecting a handset Managing Services Simple enough but not too simple Tariffs Billing Remarkable practice Use technology to offer differentiated/relevant experiences FUTURELAB
  56. 56. Remarkable thought Point of inspiration: Sharing Data? SVP Digital Business, L’Oréal Group “Brands and retailers need to let go of their antagonistic negotiation model and instead focus on working together to maximise retail floor sales and profit. Both stand to gain.” Experiment: Joint initiative L’Oréal-Carrefour make-up kiosk FUTURELAB
  57. 57. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
  58. 58. A few words on payment I Thought Long and Hard (cc)BrianHillegas
  59. 59. A few words on payment And it was tempting to go ―visionary‖ Disney electronic wristbandMobile (NFC) wallets Implants (Barcelona) FUTURELAB
  60. 60. A few words on payment And it was tempting to go ―visionary‖ FUTURELAB Points on Kindle, tomorrow?? Alternative currency Pay with sweat More airmiles than dollars? 1/3 of coffees purchased It’s money Jim, but not as we know it
  61. 61. A few words on payment But pragmatism rules Offer every payment option Lithuanian customers desire. Belgium 1. Credit card 2. Online bank transfer Germany 1. Invoice & pay afterwards (58%) 2. Credit Cards (34%) 3. Variety of others United Kingdom 1. Credit card (40%) 2. Debit card (35%) 3. Paypal (21%)ONLINE (cc)FrankBlais FUTURELAB
  62. 62. Two questions to ask yourself How can I simplify? FUTURELAB
  63. 63. Two questions to ask yourself Who owns the customer? ―other‖ locations ?? FUTURELAB
  64. 64. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment • Demographics • Technology • Mindset • Ensure the basics • Complete & relevant experiences • Focus technology on the customer • Offer what your customers seek • Always try to simplify • Make sure you keep owning your customers FUTURELAB
  65. 65. FUTURELAB E: ath@futurelab.net

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