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7.5 Billion bosses: Consumers are in charge now

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Shop.org 2017
Kate Ancketill, GDR Creative Intelligence

Published in: Retail
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7.5 Billion bosses: Consumers are in charge now

  1. 1. 7.5 Billion bosses: Consumers are in charge now Kate Ancketill, Founder and CEO at GDR Creative Intelligence
  2. 2. GDR CREATIVE
 INTELLIGENCE GDR is a retail trends consultancy, delivering the information that unlocks and empowers innovation. @gdruk kate@gdruk.comSubmit your questions #ConsumerView
  3. 3. GDR CREATIVE
 INTELLIGENCE Contents: A. State of digital being: trust in crisis @gdruk kate@gdruk.comSubmit your questions #ConsumerView
  4. 4. GDR CREATIVE
 INTELLIGENCE Contents: A. State of digital being: trust in crisis B. Four approaches to building healthier relationships @gdruk kate@gdruk.comSubmit your questions #ConsumerView
  5. 5. GDR CREATIVE
 INTELLIGENCE Ecommerce entering a new phase? Source: eMarketer Retail Ecommerce Sales Worldwide, 2015-2020
 (Trillions, % change and % of total retail sales) .00 1.67 .33 .00 2015 2016 2017 2018 2019 2020 $4.058 $3.418 $2.860 $2.352 $1.915 $1.548 7.4% 25.5% 14.6% 18.7% Retail ecommerce sales % change % of total retail sales Ecommerce is growing but there is perhaps less white space to run into than there once was. Amazon accounted for the majority of ecommerce growth in 2016
 (Share of 2016 sales growth) other merchants 47% Amazon 53%
  6. 6. GDR CREATIVE
 INTELLIGENCE @gdruk kate@gdruk.com Meanwhile… Millennial consumers are becoming more assertive, sophisticated and discerning…and less inclined to give you the benefit of the doubt. They are in charge and they know it.
  7. 7. GDR CREATIVE
 INTELLIGENCE @gdruk kate@gdruk.com In this context, the ability to create healthy, trusting relationships is a key differentiator.
  8. 8. GDR CREATIVE
 INTELLIGENCE Background: Trust in Crisis
  9. 9. GDR CREATIVE
 INTELLIGENCE Trust in crisis Location: Global Source: Edelman Trust Barometer Global study finds that, in two thirds of the countries surveyed, fewer than 50% of respondents have trust in the mainstream institutions of business, government, media and NGOs to do what is right.
  10. 10. GDR CREATIVE
 INTELLIGENCE Hostility to the status quo Location: US Source: Harvard University Harvard study finds that a majority of US millennials do not support capitalism, pointing towards a disintegrating consensus
  11. 11. GDR CREATIVE
 INTELLIGENCE Millennials lead the way with online purchases Source: NRF Research 2017 70% of Millennials say that more than 1/4 of their purchases are made online What percent of the items that you purchase do you typically buy ONLINE? 
 Your best guess is fine. Please consider all items that you purchase, incl. groceries, clothing, office supplies, etc. 0% 17% 33% 50% 0-25% 26-50% 51-75% 76-100% 7 in 10
  12. 12. GDR CREATIVE
 INTELLIGENCE Millennials are led by their values Source: NRF Research 2017 64% of millennials agree that they would stop shopping with a brand or retailer if they didn't share their values How strongly do you agree or disagree with the following statement: 
 I would stop shopping at one of my favorite brands or retailers if I found out their values contradict my own Disagree completely Disagree strongly Disagree somewhat Agree somewhat Agree strongly Agree completely 0% 17% 33% 50%
  13. 13. GDR CREATIVE
 INTELLIGENCE Digital economy losing it’s halo “The digital economy has gone wrong. Everybody knows it, but no one knows quite how to fix it, or even how to explain the problem. Workers lose to automation, investors lose to algorithms, musicians lose to power law dynamics, drivers lose to Uber, neighborhoods lose to Airbnb, and even tech developers lose their visions to the demands of the startup economy.” - Douglas Rushkoff
 @gdruk kate@gdruk.comSubmit your questions #ConsumerView
  14. 14. GDR CREATIVE
 INTELLIGENCE FakeSpot Location: Global Service analyzes product reviews to alert users to the presence of potentially fake reviews
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 INTELLIGENCE FakeSpot Location: Global Service analyzes product reviews to alert users to the presence of potentially fake reviews
  16. 16. GDR CREATIVE
 INTELLIGENCE Building healthier relationships
  17. 17. GDR CREATIVE
 INTELLIGENCE 1. Tailor to implicit needs 2. Let the consumer in 3. Powerful proposition, authentic brand 4. Offer ‘trustless trust’ via the Blockchain Building healthier relationships: Four approaches
  18. 18. GDR CREATIVE
 INTELLIGENCE @gdruk kate@gdruk.comSubmit your questions #ConsumerView 1. Tailor to implicit needs
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 INTELLIGENCE Expedia Location: US Online travel agent uses facial recognition to make personalized trip recommendations
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 INTELLIGENCE
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 INTELLIGENCE Hilton Location: Global Hotel chain’s sliding scale makes it easier to book using loyalty points
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 INTELLIGENCE Hilton Location: Global Hotel chain’s sliding scale makes it easier to book using loyalty points
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 INTELLIGENCE Findation Location: Global www.findation.com Comparison tool makes it easier to move between different make-up product ecosystems
  24. 24. GDR CREATIVE
 INTELLIGENCE @gdruk kate@gdruk.comSubmit your questions #ConsumerView 2. Let the consumer in
  25. 25. GDR CREATIVE
 INTELLIGENCE Savvy watch Location: US Design: PriceWaiter Ecommerce plug-in lets customers haggle. The prompt pops up when visitors attempt to leave the site without purchasing. 9% increase in conversion. Customers save 10% on average.
  26. 26. GDR CREATIVE
 INTELLIGENCE Volition Beauty Location: Global www.volitionbeauty.com Make-up brand predicates its offering on co-creation and community, obviating the costs of failure, and passing on the discount. Voting for products and paying pre-retail gets 40% off.
  27. 27. GDR CREATIVE
 INTELLIGENCE Volition Beauty Location: Global www.volitionbeauty.com Make-up brand predicates its offering on co-creation and community, obviating the costs of failure, and passing on the discount. Voting for products and paying pre-retail gets 40% off.
  28. 28. GDR CREATIVE
 INTELLIGENCE Tokywoky Location: Global Plugin lets ecommerce customers talk with fellow shoppers. 3-4 times more people use TokyWoky compared to live chat. Conversion 4-6x higher for users than non users. Websites with reviews typically see 18% uplift in sales.
  29. 29. GDR CREATIVE
 INTELLIGENCE Frilly Location: US www.frilly.com Multi-brand platform offers customizable women’s fashion. Prices from $ 58 - $ 2,000
  30. 30. GDR CREATIVE
 INTELLIGENCE Location: US Multi-brand platform offers customizable women’s fashion. Prices from $ 58 - $ 2,000 Frilly
  31. 31. GDR CREATIVE
 INTELLIGENCE Frilly Location: US Multi-brand platform offers customizable women’s fashion. Prices from $ 58 - $ 2,000
  32. 32. GDR CREATIVE
 INTELLIGENCE @gdruk kate@gdruk.comSubmit your questions #ConsumerView 3. Powerful proposition,
 authentic brand
  33. 33. GDR CREATIVE
 INTELLIGENCE Ritual Location: US Transparent vitamin subscription brand speaks directly to category skeptics.
  34. 34. GDR CREATIVE
 INTELLIGENCE Ritual Location: US www.ritual.com Transparent vitamin subscription brand speaks directly to category skeptics.
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 INTELLIGENCE Brilliant Co Location: US www.brilliant.co Vertically integrated bicycle brand strips consumer journey down to three steps
  36. 36. GDR CREATIVE
 INTELLIGENCE Brilliant Co Location: US Vertically integrated bicycle brand strips consumer journey down to three steps
  37. 37. GDR CREATIVE
 INTELLIGENCE Brilliant Co Location: US Vertically integrated bicycle brand strips consumer journey down to three steps
  38. 38. GDR CREATIVE
 INTELLIGENCE Brilliant Co Location: US Vertically integrated bicycle brand strips consumer journey down to three steps
  39. 39. GDR CREATIVE
 INTELLIGENCE Events and the culture behind a brand Source: NRF Research 2017 Millennials are more likely to spend their disposable income on experiences than other generations Thinking back over the last 3 months, when you had extra money to spend, how did you choose to spend it? 
 Spent it on an experience such as a vacation, concert, or evening out 0% 17% 33% 50% Baby Boomers Gen X Millenials Gen Z
  40. 40. GDR CREATIVE
 INTELLIGENCE Cotopaxi Location: US Outdoors brand leverages social purpose and uses ticketed adventure race to sell backpacks
  41. 41. GDR CREATIVE
 INTELLIGENCE Ritual Location: US Transparent vitamin subscription brand speaks directly to category skeptics
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 INTELLIGENCE @gdruk kate@gdruk.com 4. Trustless trust via the Blockchain
  43. 43. GDR CREATIVE
 INTELLIGENCE Centralized Trust is predicated on a centralized authority Traditionally there have been two kinds of trust architecture: Trust architectures Decentralized The trust relationship is purely peer-to-peer
  44. 44. GDR CREATIVE
 INTELLIGENCE The Blockchain and ‘Trustless Trust’ “In a trustless trust architecture, it is possible to trust the outputs of a system without trusting any actor within it” - Kevin Werbach
 Professor of Law & Business Ethics, Wharton
  45. 45. GDR CREATIVE
 INTELLIGENCE Location: UK Interactive labels track items and claims securely, from source to shelf, without the need for a centralised data management system. Uses sell-by dates as unique batch IDs. Provenance x Co-op
  46. 46. GDR CREATIVE
 INTELLIGENCE Resonate co-op Location: Global www.resonate.is Music streaming service is a blockchain powered cooperative, with an innovative ‘Stream to Own’ model. 9 streams pay the artist what 107 streams on Apple, or 150 on Spotify pay.
  47. 47. GDR CREATIVE
 INTELLIGENCE Resonate Location: Global Music streaming service is a blockchain powered cooperative, with an innovative ‘Stream to Own’ model. 9 streams pay the artist what 107 streams on Apple, or 150 on Spotify pay.
  48. 48. ‘ GDR CREATIVE
 INTELLIGENCE To build healthier relationships with today’s more sceptical consumers: @gdruk kate@gdruk.comSubmit your questions #ConsumerView Take outs:
  49. 49. ‘ GDR CREATIVE
 INTELLIGENCE To build healthier relationships with today’s more sceptical consumers: 1. Bend solutions around unspoken needs @gdruk kate@gdruk.comSubmit your questions #ConsumerView Take outs:
  50. 50. ‘ GDR CREATIVE
 INTELLIGENCE To build healthier relationships with today’s more sceptical consumers: 1. Bend solutions around unspoken needs 2. Surrender the principle of total control @gdruk kate@gdruk.comSubmit your questions #ConsumerView Take outs:
  51. 51. ‘ GDR CREATIVE
 INTELLIGENCE To build healthier relationships with today’s more sceptical consumers: 1. Bend solutions around unspoken needs 2. Surrender the principle of total control 3. Speak to a wider culture or purpose @gdruk kate@gdruk.comSubmit your questions #ConsumerView Take outs:
  52. 52. ‘ GDR CREATIVE
 INTELLIGENCE To build healthier relationships with today’s more sceptical consumers: 1. Bend solutions around unspoken needs 2. Surrender the principle of total control 3. Speak to a wider culture or purpose 4. Consider blockchain as a new trust architecture @gdruk kate@gdruk.comSubmit your questions #ConsumerView Take outs:
  53. 53. GDR CREATIVE
 INTELLIGENCE GDR CREATIVE
 INTELLIGENCE If you’d like to get our weekly newsletter: email kate@gdruk.com Shop.org Los Angeles, September 2017 Kate Ancketill, Founder and CEO
  54. 54. 7.5 Billion bosses: Consumers are in charge now Kate Ancketill, Founder and CEO at GDR Creative Intelligence

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