Soup to Nuts Retailing

Soup to Nuts Retailng
M sopa a las nueces Retail

Peter Cochrane

COCHRANE
a s s o c i a t e s

cochrane.org.uk
ca-global.org
Thursday, 3 November 2011

What we know for sure !

Lo que sabemos a ciencia
cierta !


Fundamentally nothing much has changed!
Fundamentalmente no ha cambiado mucho!

• The customer experience 1932 - 2010
• Customers expect/want more
• Pile em high and sell em cheap is not enough
• Today there are alternatives on-line!

Customers are looking for convenience...
Los clientes buscan la comodidad ...

• People will pay for quality
• They will go for brands
• They love good service
• But they won’t buy your wine if you don’t have a parking lot!

Home deliver services can be made to work...
Inicio prestación de servicios puede llegar a funcionar ...

• Busy people love it
• It is a growing market
• It is also far more sophisticated than people think
• It is a Green Solution

A new opportunity space !

Un espacio de nueva oportunidad!


But it all requires even more attention to data...
Pero todo requiere una mayor atención a los datos ...

• There is $$ in data
• Even more $$ in meta data

Hold that thought...
Espere un momento ...

Online is now mainstream and growing...
En línea es ahora la corriente principal y en crecimiento

• Only technophobes dislike it
• The changing demographic will see it grow
• In some cases the high street is the showroom for the on-liners
• It is another Green Solution

On-line sector is the master
of data & metadata...
On-line del sector es el amo
de los datos y metadatos ...


On-line sector is the master
of data & metadata...
On-line del sector es el amo
de los datos y metadatos ...

• They make $$ on both
• The know ever more about us...
• We are happy for them to know
• It is a win - win situation
• This trend will grow in future


Stop Press !

Dejar de Presionar


John Lewis offers free wiﬁ across all stores...
John Lewis ofrece wifi gratuito en todas las tiendas ...

The chain said it is also now working on an iPhone app aimed at
in-store customers, giving access to product reviews and videos


Why ? ¿Ppor Qué
"We know our customers are mobile and
want to be connected anywhere, anytime
and anyplace”


Why ? ¿Ppor Qué
and anyplace”

The Meta
Data

Los
Metadatos


Why ? ¿Ppor Qué
and anyplace”
• Who you are
The Meta • Where you are
Data • Where you have been
• What you purchased
• What you did not purchase
• How often you visit
Los • Who you visit with
• Who your friends are
Metadatos • +++++++
• Real time advertising
• Real time offers

Why ? ¿Ppor Qué
?
so
al
and anyplace”
3 G
t o • Who you are
ly
The Meta • Where you are
app Data • Where you have been
is
s th •
What you purchased
• What you did not purchase
oe
D • How often you visit

Why ? ¿Ppor Qué
?
so
al
and anyplace”
3 G
to • Who you are
ly
The Meta !
• Where you are
app Data s
•eWhere you have been
Y What you purchased
is
h •
t
oes • What you did not purchase
D • How often you visit

Proximity selling
La proximidad de venta


Proximity selling

• A market of one
• On the move
• Real time
• Push and pull
• Dynamic
• Availability driven
• Meta data support


Proximity selling
g !
in • A market of one
th
ry
eve • On the move
s
ge
an • Real time
ch
h is • Push and pull
T
• Dynamic
• Availability driven


Proximity selling
! l ty
g ya
in • A market lof one
o
th f
e ry o
g move
ev • Onin
the
e s an
eReal time
n g m•
a e
ch s th • Push and pull
h is ne
T e ﬁ
d • Dynamic
re
It • Availability driven


Shopping is changing everywhere...
De la compra está cambiando en todas partes ...

Text



Text

Essentials Only



Text

Essentials Only Luxuries



Text

Essentials Only Luxuries Fun


It really is about the complete experience...
Realmente se trata de una experiencia completa ...

• Part purchase part entertainment
• Good brands/green solutions
• Perceived quality
• Convenience & pleasure !

BUT even the really big hitters are in trouble
Pero incluso los bateadores realmente grandes están en problemas

NEWS

Las Vegas retail market deteriorates
Las Vegas retail market deteriorates as vacancy rate
escalated to a new high of 10.5 percent. Almost 200,000
square feet of retail space was returned to the market.....

To survive and prosper we
have to change !

Para sobrevivir y prosperar
todos los negocios tienen que
cambiar!


Changing an established business/sector!
Cambio de una empresa establecida / del sector!

“…can be almost impossible, and it is
generally far easier to build a new one”

"... Puede ser casi imposible, y
es generalmente mucho más
fácil construir uno nuevo"

Niccolò Machiavelli 1469 - 1527




fácil construir what nuevo"
This is uno you have




fácil construiris what you need
This is what nuevo"
This uno you have


...if we continue to do what we have always done...

• ...we will continue to get what we have always got
• Others will eat our lunch
• Customers will vote with their feet
• Turnover and proﬁt will decline.....toward an unpleasant end !

To be absolutely clear !

Para ser absolutamente claro !


Change is not an option - it is the only constant!
El cambio no es una opción - es la única constante!

• It is driven by technology, need, fad & fashion
• It goes way beyond the on-line experience
• No sector goes unaffected
• Only the form and timing is different !

An existence theorem!
Un teorema de existencia!

• You have to think different - not me too!
• Customers have to feel special
• Products and service has to be outstanding
• In the real world and the virtual


• Staff are there to help you - beyond sales!
• It is a hands on experience
• Lectures and tutorials by experts
• A totally new way of selling


• They create anticipation and excitement!
• They generate expectation and loyalty
• It is an ‘all embracing’ experience
• They were the ﬁrst - and remain the only company to do this

Technology powers a global abundance!
Tecnología poderes una abundancia global!

• It continually improves quality and reduces prices
• Seasonality has been banished
• But we still see the haves and have nots
• Logistics, PoS, and the ecology remain a big concern !

Some key trends ...
Algunas de las tendencias clave ...
• All markets are global
• The customer is always on-line
• Meta data is where the money is
• Customer expectation is on the up
• Quality is augmenting cheap and plentiful
• Online threats & opportunities are growing
• Pres-used/second hand is becoming fashionable
• Discounting is dying - but group buying is growing
• Consumers will know ever more product detail
• Prosumers will be a disruptive retail force
• Selling fewer & better for much more
• Production will become more local
• Flash sales will overwhelm supply
• +++++
• Green really is an issue

So what else is on the cards ?

Entonces, ¿qué otra cosa es en las
tarjetas?


Tech savvi and driven consumers & employees!
Savvi tecnología y los consumidores impulsados y empleados!

• Any platform, OS, Application, ﬁxed and mobile
• Socially networked and well connected
• Ecologically and fashion aware
• An entirely different expectation !

Social networking Redes sociales

Other people:
* Read
* Watch
* Listen
* Search
* Think
* Work
* Solve problems
* Try products
* Find good services
* Organise group purchases
So I don’t have to !

Social networking leads to social
shopping and consumer leverage
taking out the middleman...

Las redes sociales lleva a la compra
social y el apalancamiento de los
consumidores sacar el intermediario ...


The movie and music felt the impact early...
El cine y la música se sintió el impacto temprano ...

Mobile phones and music players were the tools


Social networking impacts markets quickly...

No Social Net With Social Net

Music sales with and without social networking
Impactos sociales mercados de redes con rapidez ...


Social networking impacts markets quickly...

No Social Net With Social Net

Off the scale

Music sales with and without social networking
Impactos sociales mercados de redes con rapidez ...


You no longer upset one person...
...you upset a community !

Bad news spreads faster and further than good


Creativity, publishing, information is
all moving to the edge - it is out of
control, open, global, accessible
anywhere by anyone...
a creatividad, la publicación, la
información es todo movimiento en el
borde - que está fuera de control,
abierto, global, accesible desde
cualquier lugar por cualquier persona ...


History and speed of change in trading

BC AD

~3000 ~400 ~700 ~800 ~1940



BC AD

~3000 ~400 ~700 ~800 ~1940

Atoms Bits



BC AD

~3000 ~400 ~700 ~800 ~1940 ~2010

Atoms Bits



BC AD

~3000 ~400 ~700 ~800 ~1940 ~2010

Atoms On
Hands Bits
Hands Off



BC AD <10years

~3000 ~400 ~700 ~800 ~1940 ~2010

Atoms On
Hands Bits
Hands Off
Real Virtual

Unequals


Unequals

Worlds apart - a completely
new paradigm!


So what is going to happen in this world?


Incramentalism ?

This really isn’t the next step - it really isn’t !!


Incramentalism ?

The banks/card companies are gearing up to do this !!


If cards go from swipe to contactless...and that
is all, then there will be another...


If cards go from swipe to contactless...and that
is all, then there will be another...

...only this time it will really hurt!


But the real consumer problem is far bigger!

ID
Pass
Debit
Credit
Guides
Loyalty
Medical
Licences
Insurances
Institutions
Quick Notes
Memberships
++++++++++
How many more can you cope with?



ID
Pass
Debit
Credit
Guides
Loyalty
Medical
Licences
Insurances
Institutions
Quick Notes
Memberships
++++++++++
Just manage my life for me!



iCards



So, how about that Meta-Data ?

Así que, ¿qué tal que los meta-datos?


Where you are ?
Where you have been ?
Where you are likely to be going to ?
What does it Who you have met ?
Who you are going to meet ?
know Who you call ?
about you? Who calls you ?
Who you TXT - IM - Link ?
All your contacts
All your urls
All you passwords
What you are doing now ?
What have you done in the past ?
What games you play ?
What apps you use ?
What music you listen to ?
What you watch ?
What you read ?
What you buy ?
++++++++++

Tagging for life
Marcado de por vida

Cradle
Chunky
Limited to Pretty
Grave
technology
information Jewellery
Data

Chips and tags on and in everything
including goods, animals & people


Much of this technology will be extended to
other vehicles...


Our logistic systems waste a signiﬁcant % of
the global GDP...


Logistics inefﬁciency see losses of $2T a year !
Ineﬁciencia logística ver pérdidas de US $ 2T un año!


Tagging and tracking changes the name of the game !
De marcado y seguimiento de los cambios en el nombre del juego!


Data, admin, dosage, treatment errors kill
1000’s or sees serious disablemnet !
De datos, de administración, dosis, errores de tratamiento
de matar a 1000 o ve disablemnet en serio!


Modern farming sees tagged crops and animals +
vehicles and supplies !
La agricultura moderna ve a los cultivos y los animales
etiquetados + vehículos y material!


Industrial and personal recycling and reuse could be
vastly improved to reduce waste !
Reciclaje industrial y personal y la reutilización podría ser
ampliamente mejorado para reducir el desperdicio!


Ultimately this is all about sustainability and
survivability!
En última instancia, esto es todo acerca de la
sostenibilidad y la supervivencia!
✦ Not more for the few
✦ But sufficient for all

✦ Using what is plentiful
✦ Not fighting over the scarce

✦ Creating less waste
✦ Helping nature not fighting her

✦ Living in a way the planet can
support


Beyond tagging... Más allá de etiquetas ...


And then...


Let's play a
mind game !

Vamos a jugar
un juego de la
mente!


- I see this add
- Come to your store
- Find the jacket to ﬁt
- But wrong colour pants

- Veo que este
complemento
- ¡Ven a tu tienda
- Buscar la chaqueta para
adaptarse
- Pero los pantalones de
color incorrecto

- I see this add
- Come to your store

!
- Find the jacket to ﬁt

a
nt
- But wrong colour pants

ve
y
- Veo que este

ha
complemento
No
- ¡Ven a tu tienda
- Buscar la chaqueta para
adaptarse
!
le

- Pero los pantalones de
Sa

color incorrecto
No


- With RFID you locate
the right pants at another
store
- You promise to send the
same day

- Con la tecnología RFID
a localizar los pantalones
a la derecha en una
tienda de otra
- Usted se compromete a
enviar el mismo dí

- With RFID you locate
the right pants at another
store
- You promise to send the
same day

!
a
nt
- Con la tecnología RFID
Ve
a localizar los pantalones
a la derecha en una
tienda de otra
!

- Usted se compromete a
le
Sa

enviar el mismo dí

So, what else is
on the horizon ?

¿Qué otra cosa es
en la tienda?


An endless stream
of technology!

Una corriente sin fin de la tecnología!

So how about
the non-
obvious !

Así que, ¿qué
el no es obvio?


We can now replicate 3D objects at a distance...


Ultimately we will move
from shipping products
to shipping designs!

En última instancia,
vamos a pasar de
envío de productos a
los diseños de envío!


Problems to come !

Los problemas por venir!


We understand a lot about the sociology of people,
but nothing about the sociology of machines !
Entendemos mucho acerca de la sociología de la gente,
pero nada acerca de la sociología de las máquinas!


Creativity and commerce are
moving to the edge and this
will include machines that will
produce and trade

La creatividad y el comercio
se están moviendo hacia el
borde, lo cual incluye las
máquinas que producen y
comercializan


For sure we will have to
think and operate
differently to leverage
the technology...

Por supuesto que
tendremos que piensan
y actúan de manera
diferente a aprovechar
la tecnología ...


All we can see, forecast, guess,
is just the tip...!

Todo lo que podemos ver, la
previsión, supongo, es sólo la
punta ...!


Final Word
Palabras finales

REMEMBER
RECUERDE

The £ $ € is in the ʻMeta Dataʼ
Los $ £ € se encuentra en la "Meta Data"


ca-global.org
cochrane.org.uk

COCHRANE
a s s o c i a t e s
1995

ca-global.org
cochrane.org.uk

Thank You

Gracias
COCHRANE
a s s o c i a t e s
1995

Soup to Nuts Retailing

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