Luxottica Group
Retail Futures An Overview for Brands
LS:N Global : Luxottica Group : Retail Futures

‘The goal of all brands is to reach consumers
wherever they are – online, ...
LS:N Global : uncertainty,
FinancialLuxottica Group : Retail Futures
austerity measures and
job cuts continue to
create so...
LS:N Global : Luxottica Group : Retail Futures

Eurozone woes
In February 2013,
Eurozone retail saw its
fastest drop in re...
LS:N opportunity on the
ButGlobal : Luxottica Group : Retail Futures
high street is re-emerging
and consumers are
spending...
LS:N Global : Luxottica Group : Retail Futures

Luxury resilience
Luxury retail remains
buoyant despite longrunning Eurozo...
LS:N Global : Luxottica
Generation C Group : Retail Futures

New platform shifts have
ushered in a new
consumer who is
col...
LS:N Global : Luxottica Group : Retail Futures
Collaborative

Culture

These Generation C consumers, along with our
growin...
LS:N Global : Luxottica Group : Retail Futures

QuickTime™ and a
decompressor
are needed to see this picture.

Unlock the ...
LS:N Global : Luxottica
Village brands Group : Retail Futures

Consumers want brands
to behave less like
brands, to adopt ...
LS:N Global : Luxottica Group : Retail Futures

Singleton tsunami
Solo living in cities is
shaping the future of
retail as...
LS:N Global : Luxottica Group
Urban box-cutters : Retail Futures

Singleton migration to
city centres is forcing bigbox re...
LS:N Global : Luxottica Group : Retail Futures

Grey affluents
Growing numbers of
ageing, affluent
consumers are creating
...
LS:N Global : Luxottica Group : Retail Futures
Womenomics revolution

A confident generation of
women who will have
€20.7 ...
LS:N Global : Luxottica Group Global Market Overview
Retail Futures : : Retail Futures

QuickTime™ and a
H.264 decompresso...
LS:N Global : Luxury Futures : Market Overview

New Affluent Millennials
The Millennial
generation is rapidly
becoming the...
LS:N Global : Luxottica Group : Retail Futures

Pact, a symbiotic space that houses a restaurant,
Photography: a shop, Sin...
LS:N Global : Luxottica Group : Retail Futures
Content convergence

Retail brands are
rethinking
the way they talk to
thei...
LS:N Global : Luxottica Group : Retail Futures

Omni-channel rising
The next stage of digital
and physical retail
converge...
LS:N Global : Luxottica Group : Retail Futures

QuickTime™ and a
decompressor
are needed to see this picture.

Snap Fashio...
LS:N Global : Luxottica Group : Retail
Thumbtail v Touchtail Futures

In 2012 mobile retail was
projected to grow from
€39...
LS:N Global : Luxury Futures : Market Overview

Touchtail v Nametail
The Card Case app enables
consumers to pay for a
prod...
LS:N Global : Luxottica Group : Retail Futures

Card Case app
LS:N Global : Luxottica Group
Mega-system retail : Retail Futures

Apple, Amazon, Alibaba,
Google, Facebook and
Sina Weibo...
LS:N Global : Luxottica Group : Retail Futures

Amazon’s 2012 revenue
was €46.2bn thanks to
sales across 40 product
catego...
LS:N Global : Luxottica Group :
Cloud ConsumerismRetail Futures

By 2020 there will be
50bn connected devices
on the plane...
LS:N Global : Luxottica Group : Retail Futures

QuickTime™ and a
decompressor
are needed to see this picture.

Durex Funda...
LS:N Global : Luxottica Group : Retail Futures

Mega-mall tactics
Against these changes, we
have note a new
paradigm shift...
LS:N Global : Luxottica Group : Retail Futures
Gated retail

Retailers are learning
from the mega-systems.
Some are using ...
LS:N Global : Luxottica Group : Retail Futures

In-system privileges
American Express’s Pay
by Tweet service enables
custo...
LS:N Global : Luxottica Group
BAM fights back : Retail Futures

Retailers are fighting
back against online megamalls with ...
LS:N Global : Luxury Futures : Market Overview

Clicks and mortar
Online retailers,
including mega-systems,
are realising ...
LS:N Global : Luxottica Group
‘Pure play online : Retail Futures
retailers need to be
flexible and think about
opening phy...
LS:N Global : Luxottica Group : Retail Futures

Total retail
Established brands are
also piggy-backing on the
mega-systems...
LS:N Global : spaces
Phy-gital Luxottica Group : Retail Futures

As digital aesthetics come
into the physical world
the me...
LS:N Global : Luxottica Group : Retail Futures

Branded lives
Through the Internet of
Things, mega-systems
will further pe...
LS:N Global : Luxottica Group
Predictive retail : Retail Futures

Retailers will use data
profiles to know
customers’ tast...
LS:N Global : Luxottica Group : Retail Futures

Whole-person profiles
As big data moves beyond
shopping to look at other
l...
LS:N Global : Luxottica Group : Retail Futures

Face-to-place payments
Frictionless, check-in
commerce payments
will evolv...
LS:N Global : Luxottica Group : Retail Futures
LS:N Global : Luxottica Toolkit
Retail Futures Group : Retail Futures

Make your brand collaborative and keep its messages...
LS:N Global : Luxottica Group : Retail Futures

Thank you

martin@thefuturelaboratory.com
Luxottica Group
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Luxottica Group Retail Futures

  1. 1. Luxottica Group
  2. 2. Retail Futures An Overview for Brands
  3. 3. LS:N Global : Luxottica Group : Retail Futures ‘The goal of all brands is to reach consumers wherever they are – online, in a store or on their smartphone or tablet device’ Sharon Edelson, retail specialist
  4. 4. LS:N Global : uncertainty, FinancialLuxottica Group : Retail Futures austerity measures and job cuts continue to create some of the toughest trading conditions in the UK, Europe and the US. High unemployment, falling wages and rising inflation are keeping consumer demand weak At Home 103, Seoul, South Korea
  5. 5. LS:N Global : Luxottica Group : Retail Futures Eurozone woes In February 2013, Eurozone retail saw its fastest drop in revenue in nine years, with France, Italy and Germany all showing steep declines. Source: Markit Almost two-thirds (64%) of Europeans believe the recession will last for another year Source: Nielsen Adidas store, Schulterblatt, Hamburg
  6. 6. LS:N opportunity on the ButGlobal : Luxottica Group : Retail Futures high street is re-emerging and consumers are spending again. UK high street spending rose by 1.3% in May 2013 The EU Economic Sentiment Indicator increased by 2.4 points in July 2013 Sources: European Commission, The Commerce Department & Other Stories, London
  7. 7. LS:N Global : Luxottica Group : Retail Futures Luxury resilience Luxury retail remains buoyant despite longrunning Eurozone and US economic turmoil as consumers in emerging markets keep spending at home and overseas. The global luxury goods market will expand by 7–9% a year until the middle of the next decade Source: Bain & Company Gucci artisan
  8. 8. LS:N Global : Luxottica Generation C Group : Retail Futures New platform shifts have ushered in a new consumer who is collaborative, creative, conversational and critical. ‘Collaboration is occurring on a deeper level than token associations. This is an opportunity for companies to enter longer-lasting, symbiotic relationships with customers’ Lauren Anderson, Restaurant Day, Helsinki innovation
  9. 9. LS:N Global : Luxottica Group : Retail Futures Collaborative Culture These Generation C consumers, along with our growing use of mobiles and phablets, have also made brands: Less hierarchical and more heterarchical Less competitive and more collaborative Less corporate and more cultural These changes have gamified consumer thinking, making it more experiential, immersive and, in the words of Charles Leadbetter, a world in which ‘the audience is taking to the stage’ Unlock the 007 in You vending campaign by Coke Zero
  10. 10. LS:N Global : Luxottica Group : Retail Futures QuickTime™ and a decompressor are needed to see this picture. Unlock the 007 in You vending campaign by Coke Zero
  11. 11. LS:N Global : Luxottica Village brands Group : Retail Futures Consumers want brands to behave less like brands, to adopt causes and think locally. The Shed, a California food market, sells locally sourced produce and hosts in-store lessons on preparing local food The Guggenheim Lab by BMW tours to areas in cities and acts as a rolling think tank to approach systemic BMW Guggenheim Lab, New York urban issues
  12. 12. LS:N Global : Luxottica Group : Retail Futures Singleton tsunami Solo living in cities is shaping the future of retail as global urbanisation gathers pace. Adults under 65 who live alone account for 17.6% of all households in the EU By 2020, the number of single-person households will reach 253.8m Sources: Eurostat, Pact branding by Acre Euromonitor
  13. 13. LS:N Global : Luxottica Group Urban box-cutters : Retail Futures Singleton migration to city centres is forcing bigbox retailers to abandon their out-of-town megastore strategy in favour of smaller, urban box lets. Carrefour is expanding its Carrefour City urban mini-markets in France Best Buy has closed 50 of its out-of-town US stores to open 100 smaller urban outlets YO! Home at 100% Design by Simon Woodroffe, London
  14. 14. LS:N Global : Luxottica Group : Retail Futures Grey affluents Growing numbers of ageing, affluent consumers are creating demand for health-based retail markets and services. 31% of senior US citizens enjoy a high income UK Baby Boomers control 80% of the country’s net personal wealth Sources: US Federal Agency Forum, Chartered Insurance De Los Austrias Institute Pharmacy, Barcelona
  15. 15. LS:N Global : Luxottica Group : Retail Futures Womenomics revolution A confident generation of women who will have €20.7 trillion to spend by 2014 are seeking femalefriendly ways to do so. Source: The Huffington Post Gucci has unveiled an empowering platform, Chime for Change, while Adidas launched its ‘All in’ campaign Chime for Change platform by Gucci
  16. 16. LS:N Global : Luxottica Group Global Market Overview Retail Futures : : Retail Futures QuickTime™ and a H.264 decompressor are needed to see this picture. All in forfor Change platform by Adidas Chime my Girls campaign by Gucci
  17. 17. LS:N Global : Luxury Futures : Market Overview New Affluent Millennials The Millennial generation is rapidly becoming the prime focus of the lifestyle industry as brands look to them to drive growth. : Millennials will become the most important consumer market for luxury between 2018 and 2020 : Millennial spending power has already reached €148.2bn a year Pact, a symbiotic space that houses a restaurant, Sources: Unity Marketing, hairdresser and a shop, Singapore Kelton Research
  18. 18. LS:N Global : Luxottica Group : Retail Futures Pact, a symbiotic space that houses a restaurant, Photography: a shop, Singapore hairdresser andXXXXXXXXX
  19. 19. LS:N Global : Luxottica Group : Retail Futures Content convergence Retail brands are rethinking the way they talk to their consumers and increasing their investment in editorial content. Net-A-Porter publishes a weekly online magazine called The Edit • LVMH has invested in the Nowness and Business of Fashion brands The Edit magazine by Net-A-Porter
  20. 20. LS:N Global : Luxottica Group : Retail Futures Omni-channel rising The next stage of digital and physical retail convergence, omnichannel retail, enables consumers to have a highly immersive brand experience regardless of the platform. Omni-channel customers spend about four times as much as people just shopping through the usual channels Stephen Sadove, outgoing chairman and CEO of Saks Inc Snap Fashion
  21. 21. LS:N Global : Luxottica Group : Retail Futures QuickTime™ and a decompressor are needed to see this picture. Snap Fashion
  22. 22. LS:N Global : Luxottica Group : Retail Thumbtail v Touchtail Futures In 2012 mobile retail was projected to grow from €396.2bn to €774.5bn in 2016. In the UK, £1 in every £10 is now spent via a mobile channel Sources: Morgan Stanley, Centre for Economics and Business Research Sainsbury’s Mobile Scan & Go
  23. 23. LS:N Global : Luxury Futures : Market Overview Touchtail v Nametail The Card Case app enables consumers to pay for a product simply by stating their name. ‘Smart services such as these are the loyalty cards of this decade. They will become the main contact point between retailers and customers’ Jon Carney, managing partner, Somewhat Card Case app
  24. 24. LS:N Global : Luxottica Group : Retail Futures Card Case app
  25. 25. LS:N Global : Luxottica Group Mega-system retail : Retail Futures Apple, Amazon, Alibaba, Google, Facebook and Sina Weibo are also changing the way we do business online and on mobile. They have become online mega-systems – or rather mega-retailers – within which millions of consumers live, browse, socialise and shop Data.anatomy by Ryoji Ikeda for Honda Civic, Kraftwerk, Berlin
  26. 26. LS:N Global : Luxottica Group : Retail Futures Amazon’s 2012 revenue was €46.2bn thanks to sales across 40 product categories including media, technology, wine, cars, fashion, beauty and luxury Google’s 2012 revenue exceeded €37.9bn across its search, advertising, YouTube, Blogger, Android and email platforms Google data centre, Georgia, US
  27. 27. LS:N Global : Luxottica Group : Cloud ConsumerismRetail Futures By 2020 there will be 50bn connected devices on the planet, each connecting us to the internet and to each other Source: Cisco Plugging into these possibilities, brands and consumers are already using experiential, haptic technologies to enable us to touch, feel and download everything from 3D products to feelgood experiences Durex Fundawear campaign
  28. 28. LS:N Global : Luxottica Group : Retail Futures QuickTime™ and a decompressor are needed to see this picture. Durex Fundawear campaign
  29. 29. LS:N Global : Luxottica Group : Retail Futures Mega-mall tactics Against these changes, we have note a new paradigm shift in retail, social commerce and blurred-sector selling: Gated retail Walled rewards In-system privileges Total retail All are reactions to, or protests against, the ubiquity of the megasystems Big Data Tunnel art from Big Data conference, UK
  30. 30. LS:N Global : Luxottica Group : Retail Futures Gated retail Retailers are learning from the mega-systems. Some are using the walled-garden model to offer membersonly style benefits. Soldsie enables Facebook sales using its Comment tool YSL created a limitededition product collection, Devoted to Fans #1, purely for its Facebook friends YSL Devoted to Fans #1 cosmetics
  31. 31. LS:N Global : Luxottica Group : Retail Futures In-system privileges American Express’s Pay by Tweet service enables customers to pay for goods from within Twitter Google Local runs events that bring social networking into the real world for Google+ members, and Google+ Hangout offers access to exclusive events Google+ stages shoppable Hangout with Google+ Hangout Live at Topshop Unique autumn/winter 2013 Diane von Fürstenberg
  32. 32. LS:N Global : Luxottica Group BAM fights back : Retail Futures Retailers are fighting back against online megamalls with free returns, payment booths, drivethrough customer service centres and local pick-up sites. ShopRunner works with retailers to offer pricematch, free shipping and free returns Analogue brands such as Polaroid are bringing new media in-store to The Polaroid Foto Bar at CES 2013 let people extend convert digital photos into high-quality prints instore their lifespan
  33. 33. LS:N Global : Luxury Futures : Market Overview Clicks and mortar Online retailers, including mega-systems, are realising how important offline retail is to the consumer experience. eBay has started creating physical popup shops Google is rumoured to be opening a store US eyewear e-tailer Warby Parker has opened a flagship store Warby Parker website and flagship store, New York with digital photo booth
  34. 34. LS:N Global : Luxottica Group ‘Pure play online : Retail Futures retailers need to be flexible and think about opening physical stores.’ Robert Gregory, global research director, Planet Retail Etsy’s first retail space combined shopping with convivial experiences The Etsy retail space in Brooklyn, New York
  35. 35. LS:N Global : Luxottica Group : Retail Futures Total retail Established brands are also piggy-backing on the mega-systems’ multichannel reach. Topshop live-streamed its catwalk show on Google and leveraged social buzz through its Be The Buyer app Burberry collaborated with Apple to showcase its iPhone 5s camera, by allowing the brand to create all the highdefinition photos that Burberry spring/summer 2014 show shot with iPhone 5S shared of the show were
  36. 36. LS:N Global : spaces Phy-gital Luxottica Group : Retail Futures As digital aesthetics come into the physical world the mega-systems will be seen and experienced in stores. Selfridges has introduced an interactive digital Jeanius Table for its denim lounge, guiding consumers by size, brand and fit Alexander McQueen’s McQ store features clever interactive Jeanius Table at the Selfridges digital mirrors and a Denim Studio
  37. 37. LS:N Global : Luxottica Group : Retail Futures Branded lives Through the Internet of Things, mega-systems will further penetrate our lives. As home appliances, cars and clothes become connected, our surroundings will belong to one or another walled garden. We will live entirely through tools synchronised with our chosen eco-system enabling us – and the Google and Berg’s connected products are the forerunners to the Internet of Things touch mega-systems that
  38. 38. LS:N Global : Luxottica Group Predictive retail : Retail Futures Retailers will use data profiles to know customers’ tastes so closely that they will send them products directly. Payment will be taken automatically via presynchronised accounts. Deliveries will be timed to fit each customer’s calendar, accessible online via the omnisynchronised megaBespoke scent tailoring by Commodity, Los Angeles systems
  39. 39. LS:N Global : Luxottica Group : Retail Futures Whole-person profiles As big data moves beyond shopping to look at other lifestyle needs, it will compile more complex digital personae. Spending history, personal health, fitness records, media consumption and education are being logged online. These will be combined to construct whole-person profiles Made by Humans, Hyundai Vision Hall by Universal Everything
  40. 40. LS:N Global : Luxottica Group : Retail Futures Face-to-place payments Frictionless, check-in commerce payments will evolve from mobile wallets to technologies that recognise you as you walk into a store. : The Facedeals system recognises people as they enter a store, and then offers deals specific to them Facedeals facial recognition system by RedPepper, US
  41. 41. LS:N Global : Luxottica Group : Retail Futures
  42. 42. LS:N Global : Luxottica Toolkit Retail Futures Group : Retail Futures Make your brand collaborative and keep its messages conversational Be a village brand Be present, available and shoppable across all platforms Piggy-back onto the mega-systems to offer tailored rewards Be experiential, immersive and live Embrace mobile – power of pocket is the future of profitable retailing
  43. 43. LS:N Global : Luxottica Group : Retail Futures Thank you martin@thefuturelaboratory.com
  44. 44. Luxottica Group

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