Achieving a Successful Homing Offer Challenges & Trends.International Snapshot.

Achieving a Successful
Homing Offer
Challenges & Trends...
International Snapshot...
Clive Woodger
May 2015

Changing
Consumer
Mindsets and
Capabilities

UK Overview...From DIY to Do it for me...
1 in 10 Brits claim to have no DIY skills - “Generation Rent”.
50% now outsource labour intensive projects.
Spending on DIY tools and materials has fallen 22% in real terms since 2008.
But spending on tradesmen’s services has held steady.
10% rise in number of self-employed tradesmen since the financial crisis.
Changing Consumer Mindsets/Capabilities

Online platforms enable consumers to connect to and review local tradesmen.
Do it for me...the empowered customer...UK

Now introduced into Lowe’s 1,700 stores
for staff to help customers find workmen
(who are also customers).
Do it for me...the empowered customer...USA
Porch.com has database of 3.2m professionals and photos of 130m home
improvement projects.

Consumer perception of DIY is becoming more about
design than practical skills.
‘Creating’ a look or style within the home has become the
key focus.
Changing colour schemes, restyling rooms, creating
feature walls, upcycling furniture - still mainly female.
Labour intensive jobs are still predominantly male.
Source: Research by Homebase
“For every man that feels
comfortable to leave DIY
to someone else, there is
a woman who wants to
do it herself.”
“DIY is no longer about
necessity, but more about
the pleasure and pride
someone gets from the
creation of something
new - a transition from
fixer to maker.”
From DIY to CIY: ‘Create it yourself’

CIY online inspiration
Move from old DIY Home Improvement TV programmes to new media
Sharing sites such as pinterest, houzz, instagram...

The Empowered Customer:
Market Response

58% of Europeans did a DIY project in
2014.
Online research: 1 month = average time,
Men - 2 days, Women - up to 6 months.
Source: Research by Homebase & B&Q.
Consumer ‘Home Stylists’ ‘Professionals’
Includes smaller core of
committed DIYers.
Plus tradesmen (with wide
mix of experience).
SOFT/
INSPIRATIONAL
HARD/
FUNCTIONAL

EVERYONE IS SELLING HOME TO EVERYONE
HYPERMARKETS
DEPARTMENT
STORES
FASHION CHAINS
DIY
SPECIALISTS
Flooring, Beds,
Bathrooms, Kitchens
FURNITURE STORES
‘Home
and
Living’
DISCOUNTERS
GARDEN CENTRES
PROFESSIONAL

Tesco’s Homeplus brand is disappearing in UK .
Part of announced plan for 43 store closures.
Future homewares totally online
HYPERMARKETS...losing in UK

Tesco’s Homeplus is the second largest retailer in South Korea - 113 stores.
General home products, clothing, electronics, and sporting goods.
Also fast food restaurants, travel agencies, appliance-rental firms, pharmacies,
bookstores and “culture centres”.
HYPERMARKETS...winning in South Korea

DISCOUNTERS...winning
Poundland is the largest single priced discount retailer in Europe.
Plans to acquire competitor 99p stores in UK.
Expansion under Dealz fascia in Spain and Ireland.
Has introduced ‘DIY:time’ range of 200
items that competitors sell for 5-10 times
the price.
Promoted by celebrity Tommy Walsh.

DEPARTMENT & HOME STORES FASHION CHAINS
HOME AND LIFESTYLE...increased competition

FURNITURE STORES...lifestyle
Innovative ‘Breakfast in Bed’
Pop Up Cafe in London.
IKEA is the world’s biggest furniture retailer.
Focus on online investment and shopping centre
expansion.
Testing new formats including smaller shops.

FURNITURE STORES...digital
Home 24
German based ecommerce furniture retailer.
Operates in 7 European countries.
Sales growth escalation.
Customer numbers doubled to 1.39m.
“We deliver all products
free-of-charge and
if customers are not
satisfied with their
choice, we will pick the
product up – also for
free.”

GARDEN CENTRES...homing
Tesco acquired Scottish based Dobbies in 2008.
Expansion to 36 stores. Plans to become the leading
national garden centre brand.

SPECIALISTS...focused advantage
Topps Tiles - UK’s Biggest Tile and Wood
Floor Specialist.
Product diversification.
Contemporary brand positioning.
Dual target market strategy - consumer
and professional.

Sales space optimisation
Habitat - Introduction of branded concessions - up
to 50 by 2016.
Argos - 20 digital concessions opened - further 80
planned by 2016 .
100m2 footprint.
Plus product branded areas eg Schreiber.
DIY...store closures
Store downsizing
Homebase UK sales decline by 0.7% to Feb 2015.
1 in 4 of 323 branches will close by 2019.

Kingfisher 7.5% drop in annual profits, sales
fell by 1.4% to to Jan 2015.
Single biggest market, France, struggling
due to weak demand.
“Sharp” decisions – closure of 1 in 6 B&Q’s
over next 2 years, others will reduce in size.
Analyst speculation that B&Q brand could
be replaced by Castorama.
DIY...store closures
Closure of You Can Do it Initiative

Market Adaptation?
Struggle to interest China’s growing
middle class in home improvement.
Not seen as leisure activity - low
wages means easy to employ people.
Kingfisher had adapted business
model to the “Do it for Me” culture.
Offered decorating, kitchen and
bathroom-fitting services to owners
of new but unfinished apartments.
Now selling 70% stake in B&Q China
to Wumei Holdings for £140m.
DIY...China
US chain Home Depot shut its big box
China stores in 2012

DIY/PROFESSIONAL...multi-channel
UK
Screwfix is UK’s largest multi-channel supplier of trade
tools, plumbing, electrical goods, bathrooms, kitchens.
Sales increase by 25.5% to £835 million.
Digital and mobile innovation.
Stores total now 395 - further 60 in 2015.
International
4 pilots in Frankfurt + website offering ‘click & collect’.
Country-wide next day delivery throughout Germany.
Further international expansion planned.

Omnichannel Synergy...
The Digital Customer...
A Seamless Experience?

46% of Argos sales now start online.
25% of total sales are from phones
and tablets.
Investment in digital – website,
mobile/tablet and app.
Tablets to browse, see videos, read
reviews, order and purchase.
Concessions in Sainsburys and
Homebase.
Click & drop and Click & collect
agreements with Ebay.
ARGOS...from catalogue showroom to multi-channel
New Heart of House brand
offers over 1,600 traditional
and contemporary furniture
and homewares products.

Website Development and Innovation
French DIY chain Mr Bricolage has
launched its La Dépanne.
First community-based DIY platform for
people who want to rent materials.
Aimed at attracting a younger audience.
B&Q has launched ‘Click, Pay & Collect’
on 14,000 products through new diy.com
with better online content.
Transacted online sales, including home
delivery, are making encouraging early
progress, growing 63%.

New app features include the ability to browse and refine entire product collection,
check stock and reserve to stores nationwide + find nearest store via GPS.
Expected to drive 50% of future Homebase traffic.
Omnichannel Synergy - The Digital Customer
Experience

Уютерра: Аудит и бенчмаркинговый анализ стр. 21
Входная группа
• Следует более эффективно
использовать витрины
• Если место ограничено, следует
использовать витрины для
увеличения присутствия бренда
• Шрифт написания названия должен
быть более жирным, что сделает
его более эффектным
• Необходимо рационализировать
использование слоганов и дескрипторов
Yuterra...integrating the physical & digital offer
• Следует более эффективно
использовать витрины
• Если место ограничено, следует
использовать витрины для
увеличения присутствия бренда
• Шрифт написания названия должен
быть более жирным, что сделает
его более эффектным
• Необходимо рационализировать
использование слоганов и дескрипторов

Навигационные вывески и указатели
Посуда для
приготовления
• Витьеватый, узорчатый стиль,
используемый для обозначения
отделов, не сочетается со стилем
логотипа
• Шрифт, используемый в
навигационных вывесках и
указателях, слишком мал,
что делает его трудночитаемым
• Сгруппированные иконки трудно
различать с большого расстояния
Посуда для
приготовления
• Витьеватый, узорчатый стиль,
используемый для обозначения
отделов, не сочетается со стилем
логотипа
• Шрифт, используемый в
навигационных вывесках и
указателях, слишком мал,
что делает его трудночитаемым
• Сгруппированные иконки трудно
различать с большого расстояния

In-store, online, magazine, catalogue,
YouTube channel, ClubCard…
Strong website
– Lessons for the store experience
– Magazine
– Catalogue
– Proactive social media
Achieving synergies of message and media
across all channels
Reviewing customer touchpoint strategy –
realising multimedia store synergies
Multichannel Touchpoints
Issues
Action

Proactive Social Media
Creative social media strategy
Issues
Action
Reflect in store experience and interactions

Existing brandmark
Brandmark typestyle should be more bold to
add extra impact especially on fascias etc.
Brandmark icons and typestyle don’t fit together stylistically
the brush is the only icon that bleeds out the
top of the square which makes it stand out
contemporary and sophisticated typestyle
suggested heavier weight
colourful icons are playful and fun
• There are two different graphic styles
that don’t quite fit together.
The typestyle is contemporary, clean
and sophisticated, yet the icons
although friendly are slightly
childish with the teddybear and
bright primary colours being the most
identifiable features.
Existing brandmark
Brandmark typestyle should be more bold to
add extra impact especially on fascias etc.
Brandmark icons and typestyle don’t fit together stylistically
the brush is the only icon that bleeds out the
top of the square which makes it stand out
contemporary and sophisticated typestyle
suggested heavier weight
colourful icons are playful and fun
• There are two different graphic styles
that don’t quite fit together.
The typestyle is contemporary, clean
and sophisticated, yet the icons
although friendly are slightly
childish with the teddybear and
bright primary colours being the most
identifiable features.

Option 5: Simple evolution of existing brandmark
Simple evolution of existing brandmark

Yuterra
г. Химки, Ленинградское шоссе, вл. 5, ТЦ "Лига"
Уголок потребителя
Добро пожаловать!
Этот товар
для Вас мы
доставим
бесплатно
Дарите красивые
подарки с
нашей услугой
по упаковке
Еще больше
товаров на
нашем сайте:
yuterra.ru
г. Химки, Ленинградское шоссе, вл. 5, ТЦ "Лига"
Уголок потребителя
Добро пожаловать!
Этот товар
для Вас мы
доставим
бесплатно
Дарите красивые
подарки с
нашей услугой
по упаковке
Еще больше
товаров на
нашем сайте:
yuterra.ru
АКЦИЯ
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Yuterra
2 этаж
одарки Предметы интерьера Текстиль Декор Посуда

Customer Service...
The ultimate differentiator

Customer Service - The instore experience
UK Home & DIY sector ranked as the worst
for customer service.
40% of consumers believe Home & DIY
stores need significant improvement.
25% believe service is the most important
factor.
70% have abandoned purchases & walked
out due to a lack of assistance.
90% then purchased from a competitor.
Potential customers will only linger for 5
minutes before heading out of the shop if
store staff are inattentive.
Source: Indyme research (real-time shopper engagement company)

UK is the biggest user of click and collect
Use expected to double within 3 years
Shift from centralised to localised
fulfilment – especially for high volume
selling goods
Seamless Service Touchpoints: Click & Collect
Australia’s Woolworths Ltd partners
with eBay Inc for click and collect
services aimed to increase instore
foot traffic
Speed... flexibility... convenience
“Leveraging more value from
physical stores”

Home Depot is the largest USA retailer to accept Apple Pay.
Many other retailers are planning to go with yet-to-be-launched CurrentC.
Seamless Service Touchpoints: Mobile Payment
Speed... flexibility... convenience

Service Innovation
Lowes, California are introducing 5 foot tall
robots, called OSHbots who greet customers
at the door and ask them what they need.
Customers communicate their needs verbally
or by selecting items from a touch-screen
menu.
Customers show OSHbot what they are
looking for by displaying an item in front of the
robot’s 3D scanner.

“Half the U.S. workforce
is at risk of being replaced
by mobile robots and
smart computers within
the next two decades.
Retail jobs are among the
occupations most at risk.”
University of Oxford
Service Innovation

Creating Brand Synergy™
t: +44 (0)20 7371 7522 f: +44 (0)20 7371 8351 e: info@scg.international www.scg.international

Achieving a Successful Homing Offer Challenges & Trends.International Snapshot.

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Achieving a Successful Homing Offer Challenges & Trends.International Snapshot.