5 key trends that are currently effecting retail: 1. the rise of the millennial, 2. Mobile #1 and AI #2, 3. Importance of Experience, 4. Tell don't Sell, 5. Building for change.
5. this year, millennials (gen Y) will surpass Baby
Boomers as the largest living generation
source: Pew Centre
6. by 2020 Gen Y + Gen Z will be the dominant
retail segments in dollars spent
7. Management Team*
average age
the gap between management and consumer
is growing
Source: Fortune * based on age of CEO taking office; ABS 2014
50 yo 34 yo
customers
average age
16 years
8. this matters because:
they are powered by technology
ask ‘why’ more than anything else
want the truth - can get it off twitter
9. added to this are two very important shifts their generation
will bring:
blended society female leadership
2050: US will be
a majority non-
Caucasian
(Australia will be
similar)
2030: there will
be
more female
millionaires
than male
10. ’75% of millennials consider the store the
centrepiece of their experience….they may not
come in as much as they use to, but they will be
more knowledgeable when they come in’
Myron Ullman, ex-Chairman +CEO J.C Penney
the physical store needs a new definition:
11. what this means:
business must
shift it’s mindset
to meet the
millennial
embrace diversity
- culture and
gender
businesses need
to act like their
digitally native
13. ‘channels are a language retailers speak to justify
what they’re spending on IT.
it’s not understood by the customer’
Sir Charlie Mayfield, Chairman, John Lewis Partnership
14. millennials check their phones three times
more than any other generation
shift in customer behaviour:
Source: Sam’s Club
15. under armour: largest mobile fitness community
160m users
150K
downloads
a day
my fitness pal
endomondo
map my fitness
health box
16. brands must follow their customer - not their competitors.
if you don’t have the talent - buy it. there is more talent
sitting outside a business than in it.
17. it starts with mobile and now it’s AI
nearly $2B in sales will happen this year through a mobile digital
assistant (like Siri, or Watson).
38. we are marketing machines.
it gets worse when you look at millennials.
they’re more informed, more connected and
way more skeptical - all thanks to tech.
39. they don’t care about
your shareholders - they
see themselves as the
most important part of
the equation
the facts
your authenticity
commands their
respect. tell them your
story, make it human -
not corporate.
they want to buy into
what you’re doing for
the world - make it
better (not generate a
sale)
story spiritualstakeholders
41. ‘we dreamt of making high quality Italian food available around the
world – eat, shop and learn about the Dolce Vita’
Oscar Farinetti, Founder, Eataly
45. "it is the place people come, regardless of their
age, athletic ability, size, shape, profession or
personality, to connect with their best selves."
48. “the purpose of business is to improve the
community - it’s not a monolithic opportunity
where there’s a transaction and you made money
-
understand the importance in the long-term of
being an important part of the world. “
Myron Ullman, ex-Chairman +CEO J.C Penney
49. what this means:
work with
stakeholders as
important as
shareholders
lead with
purpose - why do
you exist?
treat your
customer like a
human - with
heart
52. major companies have lost on average 2%
market share over last 10 years.
they bet on stability in a world of change.
source: Deloitte
53. there is no destination only a continual journey. it’s not
about your competition but superseding yourself.
54. 'focus on your customer’s needs and be
willing to cannibalise yourself...one of our
most successful businesses was 'travellers
cheques' - generating 90% of our profits. if
we had not cannibalised ourselves then we
would not be in existence now'
Kenneth I. Chenault, CEO, AMEX
55. ‘don’t be worried about the next up and
comer be worried about the competition
that doesn’t exist yet ‘
Kevin Plank, Founder, Under Armour
59. “we’re dealing with business models that
aren’t as efficient as they use to be..
it’s not what the change is; but how do you
change continuously”
Sir Charlie Mayfield, Chairman, John Lewis Partnership