Powerhouse playbooks Lessons from global retail leaders

Powerhouse playbooks:
Lessons from global retail leaders
Juan Carlos Garcia, Dir., Global eCommerce & Omnichannel, Grupo Elektra
David Marcotte, SVP, Strategic Advisory Services, Kantar Retail, WPP
Martin Urrutia Islas, Head of Retail Innovation, Retail Experiences, The Lego
Group

Crossing Borders and Cultures
• An Introduction to the Challenge
• Lego International Success Criteria
• Elektra International Success Criteria
• Panel Discussion

3
With over 1,000 consultants
and solutions experts around
the globe we are part of the
world’s largest marketing
company, WPP
We are the Brand and Marketing, Retail, Sales and Shopper global
specialists & practitioners
Founding Brands

Success at Home Does not Translate to Success
in Other Countries
• Most retailers that have gradually grown
and become successful in their home
market suffer when going abroad
suddenly
• Their incrementally developed brand
value is often not transferred or their
knowledge of the real estate, shoppers
habits, or employee expectationsSeattle USA

The Logistic and Operations Challenges
• Licenses and distribution
• Real Estate and Construction
• Facilities management and local
integration
• Defining traffic and population
movement
• Security and local government
cooperation
Mall of Africa RSA

Cultural Challenges to Consider
• Product portfolio and service offers
• Employee expectations and training
• In-store merchandising and colors
• Transactions, credit, and trust issues
• Online access, fulfillment and returns
Zocala Mexico City

Reinforcing the Brand
• Marketing and introduction to shoppers
• Logo and naming concerns
• Own label products to local tastes and
needs
• In-store and online consistency
• Use of all media platforms repeatedly
Shanghai China

“We deliver happy moments”
Our Mission:

Fundamentals of the Elektra brand
• We empower customers in LATAM by providing
access to products and financial services such as
credit, savings, remittances, insurance and more.
• Our focus is to help families reach their goals
and improve their quality of life
• Our customer´s trust is our main asset
• We look for underserved markets that other
ignore

What things are mostly global?
• Customer Centricity (start with the customer and
work backwards)
• Customers will always prefer more selection to fewer buying
options
• Customers will always prefer lower prices than higher prices
• Customers will always prefer faster delivery than slower
delivery
• Technology platform
• It´s all about the scale
• Hire and develop the best talent
• It´s all about the people

What things are mostly local?
• Payment methods
• Installments, Cash, Financing, etc.
• Supply chain, last mile delivery & returns
• Global couriers are more expensive and delivery
promise is less accurate. (i.e. Unattended delivery is
very common in the US, CA and UK, but very
unlikely in LATAM).
• Taxation and compliance
• Federal, state, and city regulations make invoicing,
tax calculation, and reporting very complex.

What has worked well for Elektra?
• Align incentives between Online & Instore sales
• Avoid fear of “cannibalization”. Employees are
rewarded equally for Online & B&M sales.
• Create an ecosystem that rewards customer
loyalty
• In Mexico and most LATAM countries, providing fast
and easy consumer finance solutions is a key for
customer satisfaction
• Evangilize customers that currently don´t shop
online
• Using more than 1,800 POC and 25,000 employees
we aim to democratize eCommerce.

Some examples: eCommerce kiosks

LIVE POLLING:
What is the greatest challenge you face in
building business in international markets?
1. Regulation & Compliance
2. Sourcing, Supply Chain & Replenishment
3. Sales Channels, Marketing & Promotion

©2017 The LEGO Group
LEGO and the LEGO logo are trademarks of the LEGO Group. ©2017 The LEGO Group.
FOR INTERNALUSE ONLY
The LEGO Group
LEGO Retail Innovation

Sensitivity: Confidential
2017 © The LEGO Group
At a Glance
Sold in more
than
countries
140
employees
end 2016
19,000+
Danish
family owned
of this year’s
sales are
novelties
60%
More than

©2017 The LEGO Group 20
Inspire and Develop
the Builders of Tomorrow
Our Mission:

Inspire and Develop
the Builders of Tomorrow
Our Mission:

That fire
truck is
very cool !
Is this the
police car that
my grandson
wants ?
Shoppers and Consumers
Global Truth

©2017 The LEGO Group
Globally the Path to Purchase has become more dynamic
and complex than ever…
VISIT WEBSITE INTERNET
PURE PLAYERS
TOY HYPERS LEGO® BRAND
RETAIL
RECEIVE
RECOMMENDATIO
N
UPLOAD
PICTURES TO
SOCIAL MEDIA
CHECK
REVIEWS
BUY
PRODUCT

Sensitivity: Internal
24
LEGO and the LEGO logo are trademarks of the LEGO Group. ©2017 The LEGO Group.Retail theatre

25
LEGO and the LEGO logo are trademarks of the LEGO Group. ©2017 The LEGO Group.The Store

Have you defined
26
Which will be the
memorable brand
experience in-store ?

27
“ Shopping for
LEGO® toys
should be as fun
as when you are
building them ”

Case Study: LEGO Store London
28
Taking a customer centric approach to store design
Time Machine: Great BritainA
Destination: London, EnglandB
Minifigures “Tour” LondonC
✖ Fails to fully resonate with
shoppers and does not feel
specific enough to LEGO or to
London.
✔
The “LEGO Minifigures” concept
generates the most enthusiasm,
however including iconic London
buildings, people and events will
increase appeal and maximise
relevancy.

Retail Experience Co-Creation
29
Taking a customer centric approach to store design

Creating a Retail Experience
30
Have the fundamentals in place to meet Shoppers basic needs first
Meeting the
fundamental needs
Creating emotional
experiences

Creating a Retail Experience
31
Meeting the
fundamental needs
Creating emotional
experiences

Creating A Memorable Retail Experience
32
L o c a t i o n
B r a n d A m b a s s a d o r s E n g a g e m e n t P e r s o n a l i z a t i o n
C o n s i s t e n c y G u i d a n c e

Personalizing LEGO experience at retail
33
Taking the creativity and fun of the LEGO Brick around the world

Personalizing LEGO experience at retail
35
Taking the creativity and fun of the LEGO Brick around the world
Image from: Adweek.com
http://www.adweek.com/creativity/this-lego-booth-scans-your-face-and-makes-
a-custom-kit-so-you-can-build-yourself-out-of-legos/

The LEGO brand personality at retail
36
Creating memorable experiences in the best theatre
Wow Models Brand Expression Hands-On Play Digital Experience

Recommendations when developing a brand
experience at retail globally
37
Establish the fundamentals
Retail is a media channel (Omnichannel)
Have a test & learn mind-set /
retail stores as a test lab
Have a customer centric approach to store design
Define what will be the memorable shopping experience

38
Thank
you !

Powerhouse playbooks Lessons from global retail leaders

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