MORE Vision 8: Crisis & Retail Consumption

1,945 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,945
On SlideShare
0
From Embeds
0
Number of Embeds
181
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

MORE Vision 8: Crisis & Retail Consumption

  1. 1. MORE8_V1_Mise en page 1 04/12/12 13:53 Page1 more # In partnership with 8 Dec. 2012 by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Crisis and retail ©iStockphoto.com/Anastasia Pelikh consumption Retailers and shopping centre operators have risen to the economic challenges that have affected the world. Even more inventive than ever, they are constantly embracing new technologies and services. Shoppers are being attracted in new Inside ways as pricing and retail become more about being smart, fun or just in time. • The trend briefing With the mighty Tesco having reduced its profits for the first time in 18 years, • Interviews: albeit to a still impressive £1.7 billion (2.12 billion Euro), times are changing. TESCO PLC Shoppers have always been concerned with price, but with new technologies QUINTAIN and services, attitudes to pricing have become ever more complex. Shopping PRINTEMPS can be done for longer, in more places and in more ways. “The pace of change of technology is blistering” said Mike McNamara, Chief Information DESIGN INTERNATIONAL Officer at Tesco. More Vision 8 looks at the latest trends in consumer attraction and retention, driving revenue through interaction, games, variable pricing, instant discounts and much more ... competitive, complex and compelling. It’s not about telling your customers that you are important, and they can have a slice of you if they pay for it. Instead, it’s about telling customers: “Whatever you need or want, we’re here to help” (or even better, “We know what you want, here, we’ve already done it for you”). It’s about being SERVILE … Follow us on
  2. 2. MORE8_V1_Mise en page 1 04/12/12 13:53 Page2 more Follow us on by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up So what is SERVILE all about? Put simply, servile companies always put themselves second. For most shopping centres or retailers this means a radical change in mindset, for some the idea that their customers could dictate how, what and where they trade would not come naturally, being more used to dictating these things. We all know that convenience has always been important but shoppers are now being offered levels of convenience that they could not have dreamt of a few years ago. Retailers are keeping ahead of their shoppers through online technology and SERVILE BRANDS. Yes, shoppers are more demanding, time-starved, informed, and choice-saturated than ever-before (we know you know). For shopping centres and retail to prosper, the solution is simple though: turn SERVILE. This goes far beyond offering great customer service. SERVILE means turning your shopping centre or store into a lifestyle servant focused on catering to the needs, desires and whims of your customers, wherever and whenever they are. For marketers, SERVILE means thinking about creating marketing that isn’t marketing. If consumers aren’t searching for, adopting, installing, or sharing your efforts (in whatever form: product, service, app, content etc.), then you need to get back to the drawing board. Now! So here are four SERVILE trends to drive customers towards your shopping centre or store: 1. Give shoppers the best deals with variable pricing or price comparisons – instantly 2. Encourage your customers to choose your products or experience them first 3. Go that extra mile to serve your customers – be truly servile 4. Make your offer more attractive to women (or men!) advertisement www.invalio.com Operational sales and retail solutions A C C E L E R A T I N G S A L E S *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
  3. 3. MORE8_V1_Mise en page 1 04/12/12 13:53 Page3 more Follow us on by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Trend 1: Selected links 1. Here is a way to make sure you never miss Selected video Give shoppers the best deals a customer: Launched in the US, hukkster is Lemonade Vending Machines Base a free web browser add-on which enables Pricing on Outside Temperature with variable pricing or price users to bookmark – or ‘hukk’ – any products comparisons – instantly they see online that they want to buy but can’t afford at the current price tag. Users can set the cost they would be willing to pay for the item, and if the price drops below that threshold (either through a sale or as part of a discount offer), hukkster automati- cally sends out a notification. 2.We all know the weather can change de- mand for drinks so: temperature-sensitive How do you see it? vending machines for Coca-Cola’s Limon & Share your view and join in Nada lemonade beverage brand were in- the discussion! stalled across Spain. Machines with integrated With information technology it is perfectly Do you have a system of variable pricing or thermometers were placed in traditional sum- price comparisons? Share it with us. possible to gauge supply and demand, re- mertime locations such as water or theme sponding by driving profits at busy times and parks, with the temperature shown on a large Post your answer sustaining turnover when things go quiet. display. Cans were priced at EUR 2 each when 4here the temperature was below 25°C; at EUR 1.40 Know what shoppers are looking for and you for temperatures of 26-29°C, and EUR 1 when are half way there – so help them by finding it was over 30°C. the best deals. And this does not necessarily 4More links on trendwatching mean permanently reducing margins, it is about making sales when you would other- wise not – it’s called supply and demand! Trend 2: Selected links 1. Here is an interesting example from South Selected video Encourage your customers to Korea: Clinique introduced its Experience Bar Househunter Test-Drive at the Lotte Department Jamsil store in Seoul. choose your products or The retail counters feature sensory-themed product displays with music and perfume dis- experience them first. pensers, and offer bespoke consultation serv- ices. Equipped with Clinique’s Skin Diagnostic Tool, iPads enable shoppers to access skin- care information, and find out which products would suit them. The Experience Bar service is also available in New York. 2. And here is an idea that groups products by colour, not brand: the LuxeFinds Color How do you see it? Shopping Engine is a free mobile app that Share your view and join in lets shoppers search by any colour for a va- the discussion! riety of home decor, apparel, accessories How does YOUR business use IT to engage with and other items. They use the app by either With ever more competition for customers, your customers? by clicking on a tonal colour wheel or by retailers and shopping centres are finding snapping a photo of a shade they hope to Post your answer ever-more sophisticated ways of attracting match. When they find something they like, 4here AND KEEPING their customers. Unlike the users can share this with friends via text, office or workplace, shopping centres are one email, pin, post or tweet. of the places people are not paid to go to for 4More links on trendwatching shopping. Information technology gives you opportunities to track down those customers, give them a shopping experience they will enjoy and you can profit from the experience by attracting them time and again. *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
  4. 4. MORE8_V1_Mise en page 1 04/12/12 13:53 Page4 more Follow us on by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Trend 3: Selected links 1. Here is the perfect solution to driving sales even Selected video Go that extra mile to serve your if your customers cannot carry what they are buy- IKEA Lounge at Roissy- ing. Launched by Korean convenience store chain Charles de Gaulle airport customers – be truly servile GS25, My Refrigerator is a free mobile app allow- ing shoppers to purchase promotional deals and collect them at a later date. 2. Or how about taking the shop to your cus- tomers, even when they are going on holiday? IKEA opened a pop-up showroom at the Roissy- Charles de Gaulle airport in Paris. The 220-square metre space featured nine differently rooms, and passengers could take naps on the beds, watch television or relax on sofas. The space also had a How do you see it? supervised play area for kids. Share your view and join in 3. And what if your customers could try your prod- the discussion! This edition of More VISION is all about beating ucts online before they buy? Marks and Spencer’s Have you received particularly good service? recessionary forces by focussing on customer Virtual Manicure is a free online service which en- Share your experience. needs. And it is creating needs that your cus- ables customers to test the UK retailers nail polish range on their own hands. Shoppers can upload Post your answer tomers don’t even know they want that can get an image of their hands (or choose a similar one 4here best results. That is true marketing, studying the from a selection) and then click on a nail colour to market and predicting trends. These examples see what it would look like, before clicking to pur- show how retailers have thought about the chase the product if they wish. whole retail process, looked for gaps and filled 4More links on trendwatching them, creating need where it didn’t even exist. Trend 4: Selected links Selected video 1. Now we are not allowed to make comment Make your offer more on the ability of women drivers, but: Lotte shop- Ladies parking at shopping malls attractive to women (or men!) ping mall in Chinas Tianjin province introduced parking spaces designed for women. The un- derground parking area is for use by women only, and features extra-wide parking bays, fe- male parking attendants and hazard bumpers (to ensure that women can park easily), as well as pink signage and female-friendly décor. 2. And here is one for the male shopper: the How do you see it? Christian Louboutin mens store offers the Photo: Eric Laignel French brands ranges of shoes and accessories Share your view and join in in a retail space designed to appeal to male cus- the discussion! tomers. The stores interior features leather pan- Tell us what you would want in a shopping centre ... elling and industrial-style decorative accents, It is not politically correct in any way to say this, while a tattoo parlour space allows shoppers to Post your answer but women and men are different. They have have images of their own tattoos embroidered 4here onto any pair of Louboutin shoes. different skills, needs and wants. In an age when it seems that women and men are assumed to 3. Here is an example that matches fashion to cities: French apparel retailer Pimkie launched have the same needs, there are opportunities to Color Forecast, a website that provides live up- drive retail sales through direct targeting at dates of trending colours in Europes "most females or males. These are examples of offers fashionable cities". High-definition cameras made specifically for women or men – were set up in Milan, Paris, and Antwerp, filming recognising those differences. people on the streets, and analyzing the most worn colours in real-time. Pimkie also provides suggestions of apparel available to buy online matching each citys trending shade. 4More links on trendwatching *Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”
  5. 5. MORE8_V1_Mise en page 1 04/12/12 13:53 Page5 more Follow us on by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Interview 1 Mr McNamara talks about the innovations at “Well today you can use our mobile phone app Mike McNamara, CIO, Tesco that will help customers get through to scan a bar code of a product and add it to Tesco plc their shopping faster by integrating the best of your virtual shopping list or your online order. Bricks and Mortar shopping with the conven- Tomorrow you will simply take a photo of it. ience of Online. Can you imagine opening up your fridge door “One of the great things about my job is that simply holding up your camera. It recognises I get to work with loads of creative people to the content and hey presto they are all added figure out how we can use technology to to your virtual basket. make our customers shopping trip of the fu- “In the future the Smartphone will be your ture easier and quicker and even more fun and Club Card, your shopping list, your wallet and enjoyable. Some of the innovations we are even your own personal till. As a customer working on like interactive screens and the you will come into our store, you will connect micro home delivery. Interactive screens with our WiFi and you may even get a per- might sound like something straight out of a sonalised greeting informing you that your minority report, but we are not that far away. click and collect orders will be waiting for you Our customer of the future is going to go into when you leave or maybe even that there is one of our cafes and put down her iphone onto a personalised promotion exclusive to you. a digital table and it will recognise who she is You will use your mobile phone to scan as and maybe give her trailers from Blinkbox or you go. When you get to the checkout it’ll be recipe based on her shopping list. simple, it will be reduced to a couple of taps “When I’m making something like say, and bye bye paper receipts, we are going to @TescoMedia Chicken with Tarragon, I always forget either email you your receipt from hereon in. It will the chicken or the tarragon! Micro home deliv- be quicker to checkout, no more queues. The ery would be a service that will save my life in pace of change is blistering and none of those instances. In the future, our customer these innovations is that far-fetched or that who is baking a cake and forgets the flour, a far into the future.” couple of clicks later and within the hour and Transcribed from an online interview with kind it’s delivered to her home. permission from Tesco plc. Interview 2 Mr. Cottingham talks about going the extra wards brands they trust, and the challenge Phil Cottingham, mile… for developers is to create an environment Head of Retail, Quintain “Given the current trading conditions in most befitting these brands and a more fulfilling European markets it is increasingly important and enjoyable experience for the shopper. that developers create an environment which “The leading outlet centres have increasingly is attractive to consumers and in which retail- become more holistic retail and leisure des- ers can thrive. tinations. Restaurants, bars and leisure facil- “The starting point has to be: what do shop- ities such as cinemas have become a key pers want? Fashion magazine Drapers re- element of many schemes. At LDO, we will cently polled 2,000 consumers on what they have a range of bars and restaurants and a want and dont want when shopping. Across nine-screen cinema, which together will the sample, product ‘quality’ and ‘price’ were mean shopper dwell time is increased and identified as the most important factors with it, customer spend. However, one of when deciding where to shop, closely fol- LDO’s key differentiators is that it is located lowed by ‘value’. Indeed, research into cus- between one of the world’s most iconic tomer needs and wants has become the holy sports arenas, Wembley Stadium, and one of grail in respect of creating a viable and suc- the UK’s premier entertainment venues, cessful retail development in any geographi- Wembley Arena, which between them at- cal location. tract millions of visitors every year. These el- “Over the past ten years the outlet centre mar- ements will ensure a high level of footfall, not ket has grown significantly. There are now 200 just from event-goers and tourists, but the centres operating across Europe, with a further local catchment as well. 50 in various stages of development, including “The combination of strong leisure attractions @QuintainPlc our own London Designer Outlet (LDO) at is a vital ingredient in helping developers de- Wembley – London’s first outlet centre. liver a mixed-use scheme that in turn enables “Consumers are continuing to gravitate to- retailers to achieve significant sales growth.”
  6. 6. MORE8_V1_Mise en page 1 04/12/12 13:54 Page6 more Follow us on by every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up Interview 3: How is Printemps attracting shoppers How to you see luxury department Stephane Moise, Head of when the economic situation is hard for stores such as yours continuing to com- Real Estate, Printemps everyone? pete against online retailers? One word could qualify our way of attracting The major difference between online retail- our customers. This word is “Uniqueness” . ers and our department stores, is really the What we are trying to create for our cus- unique shopping experience we create for tomers is a unique shopping experience in our customers. our department stores, with a mix of 3 major With the web, you won’t get a personalised elements: shopping experience. New concepts like A specific concept in terms of architecture, our “Belle Parfumerie” with perfume cre- , with our flagships in Paris built in 1865 and ators that will allow you to realise your 1924 “made for you perfume” or “Denim Bar” , Particular attention to our services towards that offers all colours, shapes and types of our customers worldwide, coming from jeans, are specific concepts that are very Asia, Middle East, Americas and Europe difficult or impossible to offer online. The best offer in terms of ‘Savoir-Faire’, in all As a second example, specific events cre- departments, Fashion, Beauty, Acces- ated: A wonderful pop-up store with Louis sories,… Vuitton and the artist “Yayoi Kusama” in our We have been implementing this strategy store in Haussmann, or specific partnership in our department stores since 2006 and it with “la Maison Dior” for our Christmas @Printemps is becoming a success, always being trendy decorations. These are events that should and answering our customers wishes with be lived in our stores and it is hard to get our unique concept. those unique emotions on the web. Interview 4 Mr. Mollé, as our guest interviewee, sums help build loyalty without impacting the Paul Mollé, Managing Director, up his view of the retail economy in No- long-term revenues or dilute the brand Design International vember 2012 image. Social networks such as Facebook “It remains to be seen if the rumours of or Twitter play an increasing role in this green shoots in the economy will turn into area, as they allow the fast dissipation of in- reality in the short term, but the downturn formation and speed up the ‘word of has certainly prompted some interesting ini- mouth’ advertising. tiatives in the retail industry that will have a • Smart owners are also using these tough lasting impact for years to come. times to negotiate advantageous terms with “Faced with failing shops, reluctant cus- contractors and tenants to refurbish and im- tomers and increased costs developers and prove their centres in time for the upturn. The centre owners have had to develop innova- benefits are obvious: Contractors are keen to tive strategies and new partnerships with secure work, the centres are not as busy so their tenants in key areas: building work can be more easily accommo- • Centres are increasingly prepared to offer dated and tenants are able to obtain im- short-term rentals and we are seeing an in- proved outlets on their current leases. creasing number of pop-up shops being de- • And those developers and funders with ployed to maximise occupancy and keep deep pockets are taking advantage of the customer interest alive. Pop-up shops are slump in property prices to purchase poten- frequently used by major retail brands to tially valuable parcels of land to bank for fu- maximise their exposure while start up retail- ture development in more favourable times. ers are happy to reduce their risk with short “The survivors of this recession will be those leases which fill space and are an advantage centres that were well designed in the first to both the centre owner and the tenant. place, have the right mix of retailers and are • Special events and promotions in cooper- operated by owners that are prepared to ation with the tenants are used to tempt partner with their tenants in trying innovative shoppers to spend longer in the centre and approaches to retain their customer loyalty. ”
  7. 7. MORE8_V1_Mise en page 1 04/12/12 13:54 Page7 more Join us at MAPIC 2013 : 13-15 November, by Palais des Festivals, Cannes, France Every two months, More VISION newsletter introduces a new trend that is influencing retail property strategy. Previous More VISION newsletter more editions covered topics such as: by #1 What is your retail social media strategy? #1 #2 #2 Why retail must reach out to Citysumers #3 #3 Culture, leisure: traffic generator? #4 What’s in store for 2012?MAPIC ® is a registered trademark of Reed MIDEM - All rights reserved - Reed MIDEM, a member of Reed Exhibitions, © 2012 #4 #5 Retail in motion #6 Staying top of the pop-ups #5 #7 The human touch in a world of screen culture MORE+ Vision n June 20 °6 12 Vision b y #6 ith t th r trend b rship wi riefing • #7 4 retail re In partne al estate a playe r’s viewp oints • o nline foll ow-up more ow- p llow u Accessible on our blog lin fo onl e in • oints ’s viewp player by retail real estate g•4 end briefin ri mer tr consu t s: 1 th 2 mon every concepts be here have ce e tod rtainly p dentified ay, gone tomorro roven ba of tempo ck in late 2003, p , the ra The pop ry installation to a p-up Th ow o Inside -up fixt retail, thr mantra now inc ure • The trend br e o lu iefing a wide va ugh to the first p des • Intervie riet op-u ws: surprise, y of temporary br p Marks & a inment, l urgency, and m nd AMF Fas Spencer odging a nd exhib ust- h iting. tigheter chnologi My Pop Up Store cal ience wi innovation and h Cushma th av n & Wak Inside een use soci ally respons e efield how d ib online, E N l ems, pro to help regenera le y i g rythin d SCREE briefing ovidi ate ve eve an trend services ng as they do qui ld mo AN TOUCH • The to a loca ck p rty worl M iews: tion. prope en THE HU to Interv hat we Next More VISION issue: retail te possitively us • iti IEL & POW ha n street ve restricted ou d the betwe ntr u contrib act, show DALZ a r ers an retaile i tain a ba lance ies that onality. In f at least for i ty GALAE f you who nd public realm As n an s ma ain comp ers or O her with k hared with ‘MOR do we RE? brace ome p t i bigger o INVALI ey E rs em just have s something al. CA RE AMERI MORE V data, useful links CULT TU sume ing or u part of transaction ti , fun, BALTIC L ision. that con ethin t o st hones MA e feel si pl tr e know tand for somldn’t like to than simply open, he HUMAN W ty, s who woul u ther th light, e to th gh ht societ ble, rat a new om o er njjoyab l itself in arms. Welc January 2013 om a cust g to be en show en t us, to shopp in i that can d with op h hat t : ubiquii erience is welcome ri n U LTURE (via touch ail exp REEN CU n ti intuiitive eyond Any ret rthy, reactive i rds SC active and g that lies b tru wo trustw r r towa inter n ti n nythiin UCH. a shiifft furthe ays on; g and anyt ud’). TOU alw t iin seeing cheap and to everyth ingly, ‘the clo th n ain maint e are , o v si e and But w technology ) an interface d, increas int r an elp creat e b ts); b ts mobile s and tabllet mobiile web can h ul e success. cultur screen een (via the th creen retail ho s Register here if you wish to be notified the sc In scr the hu i su this is n touch - ju ma look e we will ust one wa at how to ensure y Follow us on Contacts Credits Any questions on MORE+ Vision, Contributors: Peter Clucas • Jean-Marc André please contact Editor: jean-marc.andre@reedmidem.com Acknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participation Design: Frédéric Beauseigneur – Reed MIDEM Publishing Dept. Want to advertise in MORE+ Vision, Sources: “trendwatching.com, a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Its free monthly Trend please contact iris.terre@reedmidem.com Briefings get sent to more than 160,000 business professionals in 180+ countries”

×