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RetailOasis 'Big Breakfast' Presentation


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All the presentations from RetailOasis' Big Breakfast combined: Anna from Besen, DJ from Thorn, Mark from RCG, and Pippa from RetailOasis. All explaining their key takeouts from the National Retail Federation Big Show in NYC and CES,

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RetailOasis 'Big Breakfast' Presentation

  1. 1. BIG BREAKFAST BRIEFING #retailoasis
  2. 2. TITLE NRF: BIG SHOW #retailoasis
  4. 4. Pippa Anna Mark DJ 4 ‘TOURISTS’ VIEWS: Customer Investor Retailer Technology
  5. 5. BIG BREAKFAST: customer #retailoasis
  6. 6. long live millennials mobile #1 AI #2 experience is everything tell don’t sell
  7. 7. long live millennials
  8. 8. this year, millennials (gen Y) will surpass Baby Boomers as the largest living generation source: Pew Centre by 2020 Gen Y + Gen Z will be the dominant retail segments in dollars spent
  9. 9. 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
  10. 10. 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
  11. 11. ’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:
  12. 12. what this means: business must shift it’s mindset to meet the millennial embrace diversity - cultural and gender businesses need to act like their digitally native
  13. 13. mobile #1. AI #2
  14. 14. ‘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
  15. 15. millennials check their phones three times more than any other generation shift in customer behaviour: Source: Sam’s Club
  16. 16. under armour: largest mobile fitness community 160m users 150K downloads a day my fitness pal endomondo map my fitness health box
  17. 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).
  18. 18. TITLE insert text here
  19. 19. what this means: mobile first, play with AI don’t be afraid to ‘buy’ talent the real cost is in delaying (not doing)
  20. 20. experience is everything
  21. 21. ‘if people are going to go to the store, you need to make it worth it’ Sir Charlie Mayfield, Chairman,John Lewis Partnership
  22. 22. the store is not just about procuring product – you can do that online. it’s about experience, and people will pay for experience.
  23. 23. TITLE 3x 1 jeans 3x1 - soho
  24. 24. TITLE the laundress the laundress - soho
  25. 25. abc home - flatiron
  26. 26. TITLE lululemon flagship lululemon - flatiron
  27. 27. kit & ace - nolita
  28. 28. what this means: experience is your obligation at store it’s brand building if done well a product isn’t enough to get traffic
  29. 29. tell don’t sell
  30. 30. we are marketing machines. we now when we’re being sold to and we don’t like it. plus, millennials are more informed, more connected and way more skeptical - all thanks to tech.
  31. 31. 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
  32. 32. ‘we dreamt of making high quality Italian food available around the world – eat, shop and learn about the Dolce Vita’ Oscar Farinetti, Founder, Eataly
  33. 33. TITLE insert text here soul cycle
  34. 34. "it is the place people come, regardless of their age, athletic ability, size, shape, profession or personality, to connect with their best selves."
  35. 35. shinola - tribeca
  36. 36. TITLE insert text here ‘our purpose was to create jobs for people - not product’
  37. 37.  “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
  38. 38. 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
  39. 39. long live millennials mobile #1 AI #2 experience is everything tell don’t sell
  40. 40. “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
  41. 41. BIG BREAKFAST: investor #retailoasis
  42. 42. TITLE THE FUTURE OF RETAIL Through the eyes of an investor
  43. 43. TITLE insert text here BESEN – Who are we? 2 DANIEL BESEN ANDREW POST ANNA ELLIS JOE TACK
  44. 44. THIS IS WHAT WE LOOK FOR IN A RETAIL BUSINESSES NOW 3 •  Profitable •  A passionate entrepreneur or founder with a vision to grow •  A unique or differentiated product, service or business model that consumers love and / or a sustainable competitive advantage •  Growth potential PAST EXAMPLES:
  45. 45. WHERE DOES BESEN THINK THE PITCH WILL BE IN 3 YEARS? 4 Retail businesses in the future will need: 1. To answer the question WHY not just WHAT 2. To respond to “the age of the consumer” 3. To have one strategy which covers physical and digital
  46. 46. 1. BUSINESSES IN THE FUTURE WILL NEED TO ANSWER THE QUESTION WHY NOT JUST WHAT It is no longer enough to have a great product or service… Why should the consumer buy it? We will be looking for businesses that: 5 1.  Stand for something 2.  Enhance value to the consumer 3.  Have provenance or an authentic story
  48. 48. 7 BUSINESSES THAT ENHANCE VALUE TO THE CONSUMER With an innovative or disruptive business model… WARBY PARKER
  50. 50. WHERE DOES BESEN THINK THE PITCH WILL BE IN 3 YEARS? 9 Retail businesses in the future will need: 1. To answer the question why not just what 2. To respond to “the age of the consumer” 3. To have one strategy which covers physical and digital
  51. 51. TITLE insert text here 2. BUSINESSES IN THE FUTURE WILL NEED TO RESPOND TO THE AGE OF THE CONSUMER Consumers today: 10 •  Are more connected than ever before •  Care more about experiences than things •  Want to be part of a community in-store and online Let’s have a closer look at each of these and what they mean for what BESEN will be looking for from businesses in the future…
  52. 52. 11 CONSUMERS ARE MORE CONNECTED THAN EVER BEFORE •  Online has long been a cost of entry but mobile enabled is next •  Businesses need to be social – no longer an add-on but a necessity, part of the DNA of a business
  53. 53. TITLE insert text here 12 CONSUMERS CARE MORE ABOUT EXPERIENCES THAN THINGS •  We have known for some times that affluent Australians rate enjoying experiences above acquiring material goods – this is translating to retail •  We like retailers that provide in-store experiences that give consumers a reason to get off the couch and shop MAST BROTHERS Chocolate factory and taste testing
  54. 54. TITLE insert text here 13 CONSUMERS WANT TO BE PART OF A COMMUNITY IN-STORE AND ONLINE •  Being part of a community makes consumers happy – why do we think this is important for retail businesses? 1.  It costs 5x as much to acquire than keep a customer 2.  The #1 influencer of purchases is recommendations 3.  Community engagement can increase revenue by up to 25% •  In New York in-store communal spaces such as lounges, coffee shops and free wi-fi are the norm rather than the exception LULULEMON NYC CONCEPT STORE NIKE + RUN CLUB AUSTRALIA
  55. 55. TITLE insert text here WHERE DOES BESEN THINK THE PITCH WILL BE IN 3 YEARS? 14 Retail businesses in the future will need: 1. To answer the question why not just what 2. To respond to “the age of the consumer” 3. To have one strategy which covers physical and digital
  56. 56. TITLE insert text here 3. BUSINESSES IN THE FUTURE WILL NEED ONE STRATEGY WHICH COVERS PHYSICAL AND DIGITAL 15 1.  When it comes to bricks or clicks, the choice is both 2.  Physical stores are no longer one size fits all 3.  A seamless consumer experience across all channels
  57. 57. TITLE insert text here 16 WHEN IT COMES TO BRICKS OR CLICKS – THE CHOICE IS BOTH The death of retail was overstated… • We are not saying that online only retailers will not be successful, there are many businesses where a purely online strategy is the best one • What we are saying is that we don’t believe it is bricks OR clicks – the physical and digital are complimentary • Online retailers are opening physical stores because retail flagships are driving online sales MICROSOFT
  58. 58. TITLE insert text here 17 PHYSICAL STORES ARE NO LONGER ONE SIZE FITS ALL •  Different store concepts and formats are required for different consumer markets – we like businesses that are innovative in adapting their footprint, offer and location •  Lowe’s – a traditional big box home improvement retailer adapting their model to the city market “Lowe’s urban stores” •  Murray’s Cheese Shop – a NYC institution that has rolled out 350 store-in-store concepts in supermarkets across the US LOWE’S MURRAY’S CHEESE SHOP
  59. 59. TITLE insert text here 18 A SEAMLESS CONSUMER EXPERIENCE ACROSS ALL CHANNELS •  The physical and digital need to connect and the consumer needs to be able to move seamlessly between all channels •  We think UK retailer John Lewis is a great example of how a seamless customer experience should look over the few years –  80% of customers shop across both channels –  75% of all John Lewis transactions comprise some component of online and in-store (i.e. browsing on mobile then purchasing in-store) –  40% of John Lewis sales are online –  Delivery options include next day, click and collect and commute and collect JOHN LEWIS
  61. 61. BIG BREAKFAST: retailer #retailoasis
  62. 62. TITLE insert text here Digital Trends: Transforming Retail Mark Teperson Director Mul5channel RCG Corp Ltd
  63. 63. TITLE insert text here
  64. 64. TITLE insert text here A"tude towards change Two truths, one mantra ‘Without passion, we are just unfulfilled poten9al’ ‘The relentless pursuit of excellence’
  65. 65. 5 Key Themes Today 1.  Technology @ Retail 2.  Challenging the store network 3.  Organisa:onal change 4.  Intersec:on of content & commerce 5.  Customer loyalty (community)
  66. 66. TITLE insert text here THE FUTURE IS HERE. It’s just not evenly distributed yet
  67. 67. TITLE insert text here
  68. 68. TITLE insert text here Three Key Ques+ons That should drive technology @ retail 1.  What is the unmet need of the consumer? 2.  How can technology meaningfully solve this unmet need or enhance the experience for a consumer? 3.  Is the experience contextually relevant?
  69. 69. TITLE insert text here Large mirrored panel at the front of the store, where customers can; §  Browse the latest looks §  Shows ‘what to wear it with’ §  Select items to be brought to change room Does this meaningfully enhance the consumers experience? Is it contextually relevant?
  70. 70. TITLE insert text here Beacons automa,cally iden,fy product placed in change room §  Shows ‘what to wear it with’ §  Select alternate size to be brought to change room §  Change ligh,ng to reflect different se@ngs (night, day, club) §  Order beverages §  Complete checkout; or §  Add items to your app automa,cally so you can purchase later
  71. 71. TITLE insert text here
  72. 72. TITLE insert text here Follow the customer & you will never have to look for growth
  73. 73. TITLE insert text here Department Store: Inves0ng heavily in store experience and digital commerce to fuel growth. Origina(ng with first store in mid 1800’s in Oxford Street, London. Today it has 45 stores in the UK. In 2015, 40% of John Lewis total revenue (£1.5bn) was generated through online channels.
  74. 74. TITLE insert text here Pure Play: in retail ‘Guideshops’ Holds no physical inventory in- store. Only TRYON sizes. Try it on before you buy at one of their Guideshops. No crowds. One-on-One service. Exactly what you want, delivered right to your door.
  75. 75. Specialty Retail: Reducing the tradi3onal store footprint. Leveraging distribu3on networks and centralised inventory. Holds no physical inventory in- store. Only TRYON pairs. Shop in store: FREE overnight shipping Shop Online: Free ground shipping
  76. 76. Why is this important for retailers? Improve inventory efficiency (Centralize inventory) Reduce markdowns Reduce retail footprint (size & number of stores) Increase investment in store experience Leverage digital channels to extend reach of your market Strategy Impact Reduce markdowns Improve margins Reduce premium rentals & eliminate unprofitable stores Grow consumer engagement & sales Grow sales & profits
  77. 77. TITLE insert text here Does your organisa-on have the capability to change?
  78. 78. TITLE insert text here
  79. 79. TITLE insert text here Capability Pla+orm Talent §  Specialist exper/se §  Transforma/onal exper/se §  Vision & Ownership Culture §  Execu/ve leadership & commitment §  Collabora/on & partnership §  Shared KPIs, Incen/ves & Goals §  Customer lead decisions (data driven) Structure §  Dedicated internal resources §  Shared responsibili/es and orchestrated hand off’s §  Cross discipline teams, doHed lines & hybrid roles
  80. 80. TITLE insert text here
  81. 81. TITLE insert text here The new, non-linear purchase journey ! The journey is now! Dynamic The journey is more! Influenced The journey is! Continuous
  82. 82. TITLE insert text here Content Commerce Contextually relevant content is driving commerce BREAK IT DOWN Mobile Apps Tablet / Desktop Retail Social Email Blog Channels Browse Research Inspira0on Considera0on Purchase Post Purchase Returns Rewards Advocacy Behaviours
  83. 83. TITLE insert text here
  84. 84. TITLE insert text here Customer Loyalty Trends Content Commerce Community •In a clu)ered market value exchange is more important than ever before •Personalisa9on is a Hygiene Factor •Shi/ from product cycles to consumer lifecycle engagement •Not how loyal you are to us. It is how loyal we are to you •Membership Spectrum (SAPS: Status Access Power Stuff) •Kudos economy
  85. 85. TITLE insert text here Follow the customer with the relentless pursuit of excellence & you will never have to look for growth
  86. 86. BIG BREAKFAST: technology #retailoasis
  88. 88. BIGGEST SHOW EVER 250,000 sqft 170,000 vistors
  90. 90. 4k Content Smart Tv IOT1 2 TVs
  91. 91. VR GETS REAL
  92. 92. NATIVE TECH
  93. 93. NATIVE TECH
  94. 94. NATIVE TECH
  95. 95. NATIVE TECH
  98. 98. IMPLICATIONS • The first new medium of the 21st Century is here - virtual reality. Develop content with VR in mind • New tech and scale need not be estranged. Use native thinking to bring IoT to the masses • Text→Image→Audio→Video→3D→AR→VR (content’s inevitable march from static to fully immersive continues) • Gamification of activities brings passion points to life - reward consumers for engagement.
  99. 99. BIG BREAKFAST BRIEFING #retailoasis
  101. 101. FOOD FOR THOUGHT, AND THEN ACTION. #retailoasis
  102. 102. JOIN US IN NYC 2017 JAN 11-18TH #retailoasis
  103. 103. Q&A #retailoasis
  104. 104. THANK YOU #retailoasis