The document summarizes the evolution of digital retail from the past to present and provides predictions for the future in 2022. It discusses how retail has shifted from reactive, price-focused and low information to proactive, value-focused and information rich. Major retailers like Sears and Nike have struggled with this change. Amazon has come to dominate retail by offering convenience like 2-day shipping. Emerging technologies like augmented reality, biometrics and 5G will further change shopping behaviors. By 2022, shopping may be more automated, personalized and subscription-based. Over 70% of global consumers are predicted to shop with Amazon. Retailers need to focus on speed and gaining understanding to best prepare for these upcoming changes in digital

1. THE THIRD ERA OF
DIGITAL RETAIL
Jon Bird, Executive Director Global Retail, VML
Mumbrella Retail Marketing Summit - February 28, 2018

2. AGENDA
01
02
03
04
05
RETAIL THEN
RETAIL NOW
RETAIL NEXT
RETAIL READY
Q & A

3. 3

4. Reactive customer
Price obsessed
Low information
Highly transactional
Distanced
“GOING SHOPPING”
Bricks + mortar
Planned shopping
Store search
Ask a friend
THEN
Proactive customer
Value obsessed
Information rich
Highly experiential
Connected
ALWAYS SHOPPING
Bricks + clicks
Subscription shopping
Google + Amazon search
Ask Alexa
NOW
SHOPPING BEHAVIOUR HAS SHIFTED
4RETAIL

5. “ T H E PA S T I S A F O R E I G N
C O U N T R Y, T H E Y D O T H I N G S
D I F F E R E N T LY T H E R E . ”
- L.P. Hartley

6. 01
RETAIL THEN

7. XL

8. 9
1992

9. Pre
10
1992

10. 11
1992

11. 12
1993

12. 13

13. “A T T E N T I O N S H O P P E R S :
I N T E R N E T I S O P E N ”
1994
- New York Times

14. 15
1995

15. 16
1995

16. 17
1998

17. 18
“THE BEST BUYING
EXPERIENCE.”
- Steve Jobs

18. 19
2001

19. 20
2001

20. 2006

21. 22
2007

22. 02
RETAIL NOW

23. “ S U B S T A N T I A L D O U B T ”
- Sears

24. “ N O T I N A S T E A DY S T A T E ”
- Nike CEO Mark Parker

25. T H E A M A Z O N - I Z I N G
O F A M E R I C A N R E T A I L

26. F R O M T H E “ W O R L D ’ S B I G G E S T M A L L”
T O A N A M A Z O N F U L F I L M E N T C E N T E R

27. XL CX

28. WORLD’S
LARGEST
STORE?
WHO CARES?

29. 30

30. 2012

31. 32
“ ( I T S H O U L D ) F E E L L I K E YO U A R E
W A L K I N G I N T O A W E B S I T E ”
2012
- Angela Ahrendts

32. 2013
“ B O N O B O S O P E N S S T O R E S
T H A T D O N ’ T S E L L A N Y T H I N G ”
- USA Today

33. 2014

34. 2014

35. Source: Labstore
2012

36. Source: Ebay Inc.
2014

37. 2016

38. 2016

39. 2016

40. - USA Today
2016

41. 2016

42. 2017

43. 2017

44. 2017

45. 2017

46. 2017

47. 48
2017

48. 2017

49. 2017

50. 2017

51. 2017

52. 53
2017

53. 54
2017

54. 55
2017

55. 56
2017

56. 2017

57. WEHO, LA
2017

58. 2017

59. 2017

60. 61
2017

61. 62

62. 63

63. 1997
1 - C L I C K O R D E R I N G

64. 2014

65. 2015

66. 2018

67. 68

68. 69

69. 70

70. 71
“ I T R E A L LY D O E S F E E L
L I K E S H O P L I F T I N G . ”

71. 2017

72. 73

73. 74

74. 75

75. 76
THIS MAN
WHY IS
LAUGHING?

76. 77
PACKAGE 2016/17
$7.55M SALARY, $236.6M STOCK
US$244M

79. “WE ARE MOVING
AT THE SPEED OF
START UP.”- MARC LORE, PRESIDENT & CEO, WALMART US ECOMMERCE

80. 81

81. FREE 2-DAY
SHIPPING

83. 84

84. 85

89. 90
2017

90. 91
2018

91. 92

92. JACK MA
93

93. 94

94. 95

95. 96

96. 97

97. 98

98. 03
RETAIL NEXT

99. "THE FUTURE IS
ALREADY HERE.
IT’S JUST NOT
VERY EVENLY
DISTRIBUTED.”
- William Gibson

101. “A U G M E N T E D R E A L I T Y
W I L L C H A N G E
T H E W AY C U S T O M E R S
E X P E R I E N C E B R A N D S . ”
- Aden Hepburn

102. “ W E W I L L S E E T H E
M A I N S T R E A M I N G
O F B I O M E T R I C S . ”
- Frank Jurden

103. “ S H O P P I N G W I L L B E
A U T O M A T E D , P E R S O N A L I Z E D ,
P R E S C R I P T I V E , S U B S C R I P T I V E . ”
- Eric Pfeifer

104. “ D I A P E R S , PA P E R T O W E L S A N D
S N A C K S W I L L B E A B L E T O
R E S T O C K T H E M S E LV E S . ”
- Elizabeth Paolini

105. “ T H E N E X T A C C E L E R A N T I S 5 G . ”
- Mike Lundgren

106. “ S H O P P I N G W I L L B E ‘ H I D D E N ’
I N 2 0 2 2 . M O R E A U T O M A T E D
A N D M O R E I N T E G R A T E D
I N O U R E V E R Y D AY L I V E S . ”
- Jason Ferrera

107. 108
F O C U S

108. 109
D R . L O U I S
R O S E N B E R G
U N A N I M O U S A I

109. 111
H I V E M I N D

110. 112
P R E D I C T I O N S

111. Which innovation will impact retail most over the next 4 years?

112. 114
Which innovation will be most commonly experienced in retail in 2022?

113. What will concern shoppers most in 2022?

114. What % of global
retail sales will be
via e-commerce
in 2022?
View to 2022
32.6%

115. What % will
regularly buy with
their mobile in
2022?
View to 2022
37%

116. 118
Which company will most impact retail over the next four years?

117. What % of global
consumers will shop
with Amazon
in 2022?
View to 2022
70.6%

118. 120
Which human function is least likely to be replaced by technology?

119. What % of users of
voice assistants will
buy via voice
in 2022?
View to 2022
57.8%

120. What % will make
their grocery
purchases in a
physical store in
2022?
View to 2022
60%

121. 123

122. 124

123. 125

124. 126

125. DIGITAL

126. HUMAN

127. 04
RETAIL READY

128. What should retailers focus on now to be best positioned for 2022?

129. SPEED

130. What is most important for brands to be doing to prepare for 2022?

131. UNDERSTANDING

132. XL CX ME

133. THANK YOU.
jon.bird@vml.com