The document discusses how consumer purchasing habits are shifting from infrequent large shopping trips to more frequent smaller trips, and will continue shifting to automatic purchases through smart home devices with consumers opting out of purchases rather than opting in. It outlines 3 steps for FMCG companies to capitalize on this trend: 1) focus on e-commerce, 2) move to delivering full baskets through automatic purchases using the default effect, and 3) leverage voice assistants for conversational commerce. The opportunities include increased profits and customer stickiness, but risks include data security, customer preferences changing, and regulatory challenges.
Future of retail global trends summary nov 2020Future Agenda
This is an updated summary of 60 global trends that may impact the world of retail over the next decade. Multiple expert discussions across Asia, Europe, MENA and North America have developed and shared these insights that have been curated into ten key shifts.
As we finalise the future views before wider public sharing, we very much welcome your feedback on these and which may have greatest future impact.
douglas.jones@futureagenda.org
@futureagenda
The Art of Banking: How to Accelerate Your Customer JourneyAppian
Commercial bankers operate in a highly complex
environment. With a digital platform, bankers can take
advantage of immediate on-boarding improvements
and advance their digital transformation strategy to win
the customer at digital speed.
Learn even more about accelerating you customer journeys in this in-depth blog: http://ap.pn/2eYQQTo
The “Internet of Things” , IoT, is one of the most discussed trends today, affecting virtually any industry.It enables us to personalize, customize and remote-control virtually any aspect of our lives.
This presentation aims to explore:
what is IoT?
where is the trend headed?
How can industries such as hospitality, financial services and insurance, automotive, and others, use IoT?
What is the added value for the consumer?
Future of retail - Five key future trends - 9 Dec 2020Future Agenda
Future of Retail – Five Key Trends
The pandemic has accelerated change across many sectors – and especially retail. More online, less physical and empty malls have been evident globally. So what about the next ten years? What changes will continue to accelerate, which will rebalance, and which new ones will emerge?
Based on extensive dialogue with retail, tech and city leaders globally, this new point of view brings together the major shifts in the mix collated under five key trends – Reemphasis on the Local, Identity Insights, Automated Retail, Continuous Interaction and Informed Consumers.
Now being used to stimulate new thinking, innovation and strategy development in multiple projects around the world, this is being shared to continue dialogue on changes and impact.
We welcome your views @futureagenda
2014 Digital-Inspired Trends in the Financial Services Industry: Banks, Card ...Carmelon Digital Marketing
The financial services industry is utilizing new technologies and channels, in order to become more efficient, more reliant, more convenient and above all – simpler. Among such new channels are internet websites, social media platforms, smartphone / tablet apps and others. Banks, credit card companies and insurance companies are using those digital channels along the entire service chain, including sales & marketing, communications, consumer service and CRM.
In 2019, financial institutions are getting more and more comfortable with digital technologies, digitizing processes, embracing big data and AI, and adopting new delivery methods beyond mobile to satisfy customer demand.
Although many of these technologies are not new, they dominate how the financial sector operates and grows in 2019. Add them to an already existing suite of platforms and technologies that either evolve or are replaced with new, more sophisticated solutions based on AI and machine learning. Beyond tech, all the trends of the year are customer-centric – the use of AI and chatbots, e-wallets, big data, and open banking are all meant to improve and personalize services to satisfy customer demands and expectations. As technologies continue to evolve, the trends of the year will replace outdated strategies and eventually lead to even more progressive solutions for the modern consumer
Future of retail global trends summary nov 2020Future Agenda
This is an updated summary of 60 global trends that may impact the world of retail over the next decade. Multiple expert discussions across Asia, Europe, MENA and North America have developed and shared these insights that have been curated into ten key shifts.
As we finalise the future views before wider public sharing, we very much welcome your feedback on these and which may have greatest future impact.
douglas.jones@futureagenda.org
@futureagenda
The Art of Banking: How to Accelerate Your Customer JourneyAppian
Commercial bankers operate in a highly complex
environment. With a digital platform, bankers can take
advantage of immediate on-boarding improvements
and advance their digital transformation strategy to win
the customer at digital speed.
Learn even more about accelerating you customer journeys in this in-depth blog: http://ap.pn/2eYQQTo
The “Internet of Things” , IoT, is one of the most discussed trends today, affecting virtually any industry.It enables us to personalize, customize and remote-control virtually any aspect of our lives.
This presentation aims to explore:
what is IoT?
where is the trend headed?
How can industries such as hospitality, financial services and insurance, automotive, and others, use IoT?
What is the added value for the consumer?
Future of retail - Five key future trends - 9 Dec 2020Future Agenda
Future of Retail – Five Key Trends
The pandemic has accelerated change across many sectors – and especially retail. More online, less physical and empty malls have been evident globally. So what about the next ten years? What changes will continue to accelerate, which will rebalance, and which new ones will emerge?
Based on extensive dialogue with retail, tech and city leaders globally, this new point of view brings together the major shifts in the mix collated under five key trends – Reemphasis on the Local, Identity Insights, Automated Retail, Continuous Interaction and Informed Consumers.
Now being used to stimulate new thinking, innovation and strategy development in multiple projects around the world, this is being shared to continue dialogue on changes and impact.
We welcome your views @futureagenda
2014 Digital-Inspired Trends in the Financial Services Industry: Banks, Card ...Carmelon Digital Marketing
The financial services industry is utilizing new technologies and channels, in order to become more efficient, more reliant, more convenient and above all – simpler. Among such new channels are internet websites, social media platforms, smartphone / tablet apps and others. Banks, credit card companies and insurance companies are using those digital channels along the entire service chain, including sales & marketing, communications, consumer service and CRM.
In 2019, financial institutions are getting more and more comfortable with digital technologies, digitizing processes, embracing big data and AI, and adopting new delivery methods beyond mobile to satisfy customer demand.
Although many of these technologies are not new, they dominate how the financial sector operates and grows in 2019. Add them to an already existing suite of platforms and technologies that either evolve or are replaced with new, more sophisticated solutions based on AI and machine learning. Beyond tech, all the trends of the year are customer-centric – the use of AI and chatbots, e-wallets, big data, and open banking are all meant to improve and personalize services to satisfy customer demands and expectations. As technologies continue to evolve, the trends of the year will replace outdated strategies and eventually lead to even more progressive solutions for the modern consumer
The CPG Digital Revolution: Moving from Analog to Digital Operating Modelaccenture
The digital revolution is blurring the boundaries between consumers, stores and brands and forcing consumer packaged goods (CPG) companies to rethink their digital operating model. Accenture identified six ways CPG companies can prosper. View our infographic for more info: http://www.accenture.com/redefineCPGdigital
Explore the trends that will shape the state of retail tech in 2021 and what could be coming next. Take a deep dive into global retail tech investment trends, top initiatives, and more.
Australian Digital Commerce & "The Relational Gap"Ben Gilchriest
Digital Commerce is the Web 2.0 version of e-commerce and covers every aspect of how companies can engage with their customers through various digital channels, including social media and mobile.
This report describes a framework to assess Digital Commerce and explores what this means for the Australian Retail industry. How do Bricks 'n' Clicks compare to pure online players? What is The Relational Gap? And , importantly, how can Australian retailers get value from Digital Commerce?
Commentary: Making Dollars & Sense of the Platform EconomyCognizant
As market dynamics change, organizations must figure out how and where to plug and play with emerging platforms that create economies of scale and new forms of value.
Banking Disruption in Financial Services: Threats and OpportunitiesDogTelligent
There are three forces shaping the future of banking. Technology innovation is the first. For most traditional financial institutions -- banks and credit unions -- technology innovation is a weakness; instead, they rely on third-party firms ranging from established core providers to startups to provide them with a mix of products that they repackage and resell to their customers. Demographics is the second force. Millennials now account for 25% of the US population with 80 million and growing. The third force is the emergence of new business models on the one hand driven by Millennial demand and communication preferences, and on the other, enabled by new technologies as they are invented.
The report examines data from multiple sources and suggests potential defenses for institutions to fend off competitive threats from technology, retail, and telecom firms that are gaining traction in the payments and banking arenas.
The Future of Manufacturing report, developed in partnership with Microsoft, presents multiple opportunities for manufacturers to integrate cutting-edge technologies to reinvent their supply chains—from raw materials acquisition to the store aisle.
Download the full report at bit.ly/2tm3srY
Download a full version of the report at:
http://bit.ly/2crBpoc
The Future of Automotive, created in partnership with Microsoft, presents various opportunities for driving business forward in a mobile-first world. The future state of the automotive industry is brought to life through five forward-looking scenarios to highlight how social consumer attitudes, connectivity and automation are shaping the potential of personal and flexible mobility. Insights learned can help manufacturers, OEMs and dealers understand how cloud-based solutions can transform their businesses in order to drive new levels of service throughout the entire value chain.
An explanation of eCommerce Trends for 2015. Discussion of eCommerce on Mobile, Responsive Design, UPS and FedEx Dimensional Weight Changes, and advice for eCommerce Startups. Presented at #TechCampMemphis 2014 on November 1st, 2014.
Going Digital: The Banking Transformation Road MapSemalytix
The leaders in digital banking are more client-centric, tech-savvy, and inclusive—and are fundamentally changing to deliver the best results.
Most banks today want to become digital banking leaders—after all, that's where the customers are. And for much of the past decade as digital banking has taken hold, most leading traditional banks have incorporated strong digital strategies.
So what separates the digital banking leaders from the laggards? A new A.T. Kearney study on digitization, in conjunction with Efma, seeks the answer and finds three main findings: the leaders understand the importance of mobile in a digital strategy, they are developing more agile operating models, and, most notably, they have tackled the need for internal culture shifts (see sidebar: About the Study).
With top-down implementation, these leaders have set their paths toward becoming more client-centric, more tech-savvy, and more inclusive. As the market evolves even more rapidly through the end of the decade, all banks will have to adapt to a disruptive model in people and IT—the two engines of retail banking—and must fundamentally adapt to deliver the best results.
This paper looks at the trends and the path forward.
The Evolving Digital Journey
Most banks began their digital journey years ago and have clear digital strategies, yet even those are facing major changes. In particular, as more customers use their mobile phones and tablets to do their banking, and omnichannel takes hold in financial services, the mobile experience is becoming a crucial aspect of digital strategy that banks must address.
Secondly, to keep up in this fast-changing market, traditional banks will have to adapt their operating models. In particular, changes in IT, new products and services development, and changing expectations for time-to-market will be key factors going forward.
Perhaps the most important step, however, is that banking in the digital age requires a drastic, profound reset of how banking staff reacts to customer needs. This means thinking customer first, rather than by channel; as one panelist puts it, "Banks think in channels, but customers don't." It means being conscious that small digital players can gain market share faster and in a manner that is more disruptive to traditional banks' models. It means understanding that organizational silos pose significant obstacles to creating new solutions for customers. Most importantly, it means looking inward, changing organizational beliefs and habits to facilitate clients and drive digital innovation.
A new spirit of banking—led by top executives—will lead the way to addressing market changes, becoming more agile, and improving openness in day-to-day business.
- See more at: http://www.atkearney.com/latest-article/-/asset_publisher/lON5IOfbQl6C/content/going-digital-the-banking-transformation-road-map/10192?_101_INSTANCE_lON5IOfbQl6C_redirect=#sthash.oKsJGij3.dpuf
This deck shows how customer (self-)service can be re-imagined through messaging/texting, and how context continuity can be maintained atop of the explosion of available customer care channels.
Nurun Retail Payments and Transactions Trend Report June 2013Jen Chow
Created by my team and me at Nurun Toronto, this is the third of five trend reports that will inform a strategic foresight report on preparing for the future of retail in North America.
Rethinking the Value Chain: New Realities in Collaborative BusinessCapgemini
For more information, visit: http://www.futurevaluenetwork.com
The report, “Rethinking the Value Chain: New Realities in Collaborative Business” is the culmination of the strategy and steps initiated by the Consumer Goods Forum (the CGF) Board of Directors as part of their commitment to positive action in bringing about much needed change in the industry. Capgemini and the CGF collaborated on the development of this report and the outcome of this work is a comprehensive paper that highlights exactly how the Consumer Products and Retail industries can anticipate and address the profound shifts in consumer behavior and the changing industry landscape.
The result of interactive working sessions and extensive interviews with thought leaders and subject matter experts, the report identifies future trends in the industry and recommends the adoption of a “value network” approach to doing business. This approach will engage manufacturers, retailers and additional stakeholders and will no longer think of the value chain as a linear journey. It highlights three megatrends on which the industry could collaborate and that should deliver a positive return on investment:
• Consumer engagement;
• Transparency and
• The last mile of distribution
Digital Transformation for Utilities: Creating a Differentiated Customer Expe...Cognizant
Utilities stand to reap large gains in customer-service efficiencies and user experience satisfaction by adopting a mobile-centric approach with apps that cover a wealth of transactional and engagement features.
Technology will transform retail resulting in the growth of brick and mortar retail. Check Retail Technologies trends that will help retailers survive.
89% of consumers switch to a competitor after a poor CX Abhishek Sood
89% of consumers switch to a competitor following a poor customer experience, according to an Oracle study. But how can you use digital technology to improve your customers' experience?
Uncover how several prominent businesses embraced digital technologies to retain customers and increase profits. For example, Domino's Pizza had a 23% growth in profit after it allowed customers to track their deliveries online.
Discover the 4 factors that can make a digital transformation project profitable and worthwhile.
The CPG Digital Revolution: Moving from Analog to Digital Operating Modelaccenture
The digital revolution is blurring the boundaries between consumers, stores and brands and forcing consumer packaged goods (CPG) companies to rethink their digital operating model. Accenture identified six ways CPG companies can prosper. View our infographic for more info: http://www.accenture.com/redefineCPGdigital
Explore the trends that will shape the state of retail tech in 2021 and what could be coming next. Take a deep dive into global retail tech investment trends, top initiatives, and more.
Australian Digital Commerce & "The Relational Gap"Ben Gilchriest
Digital Commerce is the Web 2.0 version of e-commerce and covers every aspect of how companies can engage with their customers through various digital channels, including social media and mobile.
This report describes a framework to assess Digital Commerce and explores what this means for the Australian Retail industry. How do Bricks 'n' Clicks compare to pure online players? What is The Relational Gap? And , importantly, how can Australian retailers get value from Digital Commerce?
Commentary: Making Dollars & Sense of the Platform EconomyCognizant
As market dynamics change, organizations must figure out how and where to plug and play with emerging platforms that create economies of scale and new forms of value.
Banking Disruption in Financial Services: Threats and OpportunitiesDogTelligent
There are three forces shaping the future of banking. Technology innovation is the first. For most traditional financial institutions -- banks and credit unions -- technology innovation is a weakness; instead, they rely on third-party firms ranging from established core providers to startups to provide them with a mix of products that they repackage and resell to their customers. Demographics is the second force. Millennials now account for 25% of the US population with 80 million and growing. The third force is the emergence of new business models on the one hand driven by Millennial demand and communication preferences, and on the other, enabled by new technologies as they are invented.
The report examines data from multiple sources and suggests potential defenses for institutions to fend off competitive threats from technology, retail, and telecom firms that are gaining traction in the payments and banking arenas.
The Future of Manufacturing report, developed in partnership with Microsoft, presents multiple opportunities for manufacturers to integrate cutting-edge technologies to reinvent their supply chains—from raw materials acquisition to the store aisle.
Download the full report at bit.ly/2tm3srY
Download a full version of the report at:
http://bit.ly/2crBpoc
The Future of Automotive, created in partnership with Microsoft, presents various opportunities for driving business forward in a mobile-first world. The future state of the automotive industry is brought to life through five forward-looking scenarios to highlight how social consumer attitudes, connectivity and automation are shaping the potential of personal and flexible mobility. Insights learned can help manufacturers, OEMs and dealers understand how cloud-based solutions can transform their businesses in order to drive new levels of service throughout the entire value chain.
An explanation of eCommerce Trends for 2015. Discussion of eCommerce on Mobile, Responsive Design, UPS and FedEx Dimensional Weight Changes, and advice for eCommerce Startups. Presented at #TechCampMemphis 2014 on November 1st, 2014.
Going Digital: The Banking Transformation Road MapSemalytix
The leaders in digital banking are more client-centric, tech-savvy, and inclusive—and are fundamentally changing to deliver the best results.
Most banks today want to become digital banking leaders—after all, that's where the customers are. And for much of the past decade as digital banking has taken hold, most leading traditional banks have incorporated strong digital strategies.
So what separates the digital banking leaders from the laggards? A new A.T. Kearney study on digitization, in conjunction with Efma, seeks the answer and finds three main findings: the leaders understand the importance of mobile in a digital strategy, they are developing more agile operating models, and, most notably, they have tackled the need for internal culture shifts (see sidebar: About the Study).
With top-down implementation, these leaders have set their paths toward becoming more client-centric, more tech-savvy, and more inclusive. As the market evolves even more rapidly through the end of the decade, all banks will have to adapt to a disruptive model in people and IT—the two engines of retail banking—and must fundamentally adapt to deliver the best results.
This paper looks at the trends and the path forward.
The Evolving Digital Journey
Most banks began their digital journey years ago and have clear digital strategies, yet even those are facing major changes. In particular, as more customers use their mobile phones and tablets to do their banking, and omnichannel takes hold in financial services, the mobile experience is becoming a crucial aspect of digital strategy that banks must address.
Secondly, to keep up in this fast-changing market, traditional banks will have to adapt their operating models. In particular, changes in IT, new products and services development, and changing expectations for time-to-market will be key factors going forward.
Perhaps the most important step, however, is that banking in the digital age requires a drastic, profound reset of how banking staff reacts to customer needs. This means thinking customer first, rather than by channel; as one panelist puts it, "Banks think in channels, but customers don't." It means being conscious that small digital players can gain market share faster and in a manner that is more disruptive to traditional banks' models. It means understanding that organizational silos pose significant obstacles to creating new solutions for customers. Most importantly, it means looking inward, changing organizational beliefs and habits to facilitate clients and drive digital innovation.
A new spirit of banking—led by top executives—will lead the way to addressing market changes, becoming more agile, and improving openness in day-to-day business.
- See more at: http://www.atkearney.com/latest-article/-/asset_publisher/lON5IOfbQl6C/content/going-digital-the-banking-transformation-road-map/10192?_101_INSTANCE_lON5IOfbQl6C_redirect=#sthash.oKsJGij3.dpuf
This deck shows how customer (self-)service can be re-imagined through messaging/texting, and how context continuity can be maintained atop of the explosion of available customer care channels.
Nurun Retail Payments and Transactions Trend Report June 2013Jen Chow
Created by my team and me at Nurun Toronto, this is the third of five trend reports that will inform a strategic foresight report on preparing for the future of retail in North America.
Rethinking the Value Chain: New Realities in Collaborative BusinessCapgemini
For more information, visit: http://www.futurevaluenetwork.com
The report, “Rethinking the Value Chain: New Realities in Collaborative Business” is the culmination of the strategy and steps initiated by the Consumer Goods Forum (the CGF) Board of Directors as part of their commitment to positive action in bringing about much needed change in the industry. Capgemini and the CGF collaborated on the development of this report and the outcome of this work is a comprehensive paper that highlights exactly how the Consumer Products and Retail industries can anticipate and address the profound shifts in consumer behavior and the changing industry landscape.
The result of interactive working sessions and extensive interviews with thought leaders and subject matter experts, the report identifies future trends in the industry and recommends the adoption of a “value network” approach to doing business. This approach will engage manufacturers, retailers and additional stakeholders and will no longer think of the value chain as a linear journey. It highlights three megatrends on which the industry could collaborate and that should deliver a positive return on investment:
• Consumer engagement;
• Transparency and
• The last mile of distribution
Digital Transformation for Utilities: Creating a Differentiated Customer Expe...Cognizant
Utilities stand to reap large gains in customer-service efficiencies and user experience satisfaction by adopting a mobile-centric approach with apps that cover a wealth of transactional and engagement features.
Technology will transform retail resulting in the growth of brick and mortar retail. Check Retail Technologies trends that will help retailers survive.
89% of consumers switch to a competitor after a poor CX Abhishek Sood
89% of consumers switch to a competitor following a poor customer experience, according to an Oracle study. But how can you use digital technology to improve your customers' experience?
Uncover how several prominent businesses embraced digital technologies to retain customers and increase profits. For example, Domino's Pizza had a 23% growth in profit after it allowed customers to track their deliveries online.
Discover the 4 factors that can make a digital transformation project profitable and worthwhile.
Technology will transform retail resulting in the growth of brick and mortar retail. Check Retail Technologies trends that will help retailers survive.
Latest Ecommerce Trends to Watch Out For 2023.pdfAdityaJani15
Regardless of your business model, eCommerce systems are critical to any online operation (whether B2B or B2C). It gives your company a platform to share and sell things to a wide range of potential clients online. However, with so many eCommerce platforms on the market, selecting the best one appears to be difficult. The eCommerce business shows no indications of slowing down in the near future.
Retail Technologies and Retail Trends That will Define The FutureRosalie Lauren
Technology will transform retail resulting in the growth of brick and mortar retail. Check Retail Technologies trends that will help retailers survive.
What is likely to outnumber the billions of human beings on planet earth over the next few years? The answer: mobile devices. While mobile devices have been around for several yea rs, there are two categories that have resulted in the explosive growth in this industry especially over the last two or three years – smartphones and tablets i .
His heart beat increases, his collar suddenly feels uncomfortably tight and hot, he glances around quickly. Why? He’s making a very important purchasing decision. And the retailer is closely watching his every move.
Futurists have long predicted a world in which the products around us have minds of their own, from talking televisions to smart fridges. Now, at last, that vision is beginning to materialise, thanks to the plummeting cost of computing components and the ubiquity of wireless communications.
"Developing smart products" is a new report sponsored by Cognizant, that explores the commercial, organisational and strategic impact of smart products on the companies that develop them.
Future of Retail
As physical shopping around the world variously restarts post-lockdown, a number of organisations are, unsurprisingly, asking what the medium and long-term changes for the future of retail may be. While digital shifts are still at the fore for many, others are concerned about trends impacting retail from outside the sector as well as emerging consumer behaviours.
Ahead of a forthcoming workshop, we have collated a number of future trends that have been proposed by several experts in recent months. If you would like to let us know which you think may have greatest impact - and why, as well as what other shifts are missing from the current view, we will update and share a more detailed perspective in the next few weeks.
@futureagenda
www.futureagenda.org
iProspect's Future Focus 2018: The New Machine RulesiProspect
It's time to Focus on the Future. Based on interviews with over 250 global advertisers, we address the biggest trends you need to master in order to be prepared for The New Machine Rules. Download your copy now: http://bit.ly/2AirbwR
A Framework for Digital Business TransformationCognizant
By embracing Code Halo thinking and a programmatic approach to business process change, organizations can better engage with customers and deliver mass-customized products and services that drive differentiation and outperformance.
Artificial intelligence and machine learning (AI/ML) present us with novel and efficient ways to solve challenging and persistent problems, particularly when it comes to predictions. Retail, due to its fast moving, trend powered, and fluid nature coupled to an extended logistics chain, relies heavily on making smart predictions. As improvements in AI/ML over the last several years have proliferated, not only in performance advances but deployability, there are exciting openings for experimentation in many domains of the retail value chain
https://runfrictionless.com/b2b-white-paper-service/
Making products smart can deliver game-changing innovation, enriched customer experiences and new, across-the-board levels of efficiency. Our latest research reveals practical steps business leaders can take to benefit from this quickly intensifying and accelerating trend.
How Artificial Intelligence Is Transforming RetailBernard Marr
Retail is at a turning point where we are seeing businesses that are in-line with the pace of technological progress thriving, while those that are struggling to keep up are dropping by the wayside.
How Artificial Intelligence Is Transforming Retail
How to Ride the Smart Home Wave
1. But consumers’ habits are changing…
It is well known and written about that in the last 15 or so years, shoppers’ habits have shifted, broadly,
from ‘large and infrequent’ to ‘little and often’ trips.
The focus of this White Paper is the next step: we believe that the next step-change in consumer
behaviour in FMCG/Retail will be a pivot away from pro-active ‘shopping’ as we know it today,
towards a more instant, automated purchasing model: with consumers choosing to ‘opt out’ of
automated purchases, rather than ‘opting in’ to conscious ones as they do today.
FMCG: How to Ride the Smart Home Wave
The digital revolution has already proven to have had a massive impact on
consumers and businesses across FMCG. Customers want impact,
convenience and personalised experiences1. In the mission to meet those
needs, IoT is the next big frontier. By 2020 there are predicted to be 12.86
billion consumer-oriented IoT devices installed and working worldwide2.
Examples of currently used devices include: Amazon Alexa (voice controlled
personal assistant accessible via multi devices), Amazon Dash (physical
buttons used for easy reordering of household goods) and the Samsung/LG
Fridge Smart Fridges (these manage their own contents for the user in terms
of expiry dates and replenishment ordering3).
How to Ride the Smart Home Wave 1 of 4
Clearly, there are still gaps in the tech…
• There is a data capture disconnect between on and offline channels which needs to be addressed.
The sheer variety of devices and formats of data capture poses challenges for effective data usage
and ability to clearly understand and manage the customer journey. Access to more standardised
data from the growing IoT ecosystem will improve the ability to better influence consumer decision
making6;
• There are also skills gaps in the industry which limit implementation speed and form barriers to
innovation7: how many AI engineers do you know? Or even anyone who can clearly explain to you
what AI is or how it’s different from IoT? Didn’t think so…
Squared Online Group 17
4th April 2018
2. The key push to drive real revenue gains for FMCG is ‘moving from spearfishing to full
baskets’11: making the step-change from small, discreet purchases, to consistently
delivering the whole basket of goods to as many consumers as possible.
Squared Online Group 17
How to Ride the Smart Home Wave
Step 2: Move to ‘full baskets’ by changing the model of consumer FMCG
purchases to ‘Opt-out’ rather than ‘Opt-in’, leveraging the ‘Default Effect’
Fig 1: IoT endpoint spending worldwide by category from 2014 to 2020
(in billion U.S. dollars)
2 of 4
Hypothesis in a Nutshell
The rise of instant, automated purchasing will be the most shift
to impact the FMCG sector in the next 5 years,
driven and catalysed by advancements in Internet of Things (IoT) and AI technology
and the emergence of the ‘Smart Home’9.
Step 1: Focus on the pivot towards e-Commerce from offline retailing
In order to capitalise on this trend towards the ‘connectivity of everything’ (aka IoT) and more
specifically the evolution of ‘smart home’ technology, what strategic steps do firms in FMCG need to
take?
3 steps to capitalise on this trend:
As per Walker Sands report10, 77% of those questioned believe online shopping will surpass
“Brick-and-Mortar” experiences by 2020, highlighting the need for companies to develop
their online presence. 84% of those questioned have made a purchase from Amazon in the
past year while also using other products such as Amazon Prime also emphasising the
need for a complete offering.
Experiments and observational studies in human psychology show that making an option as default
increases the likelihood that it is chosen – this is known as the ‘Default Effect’ 11,12. The winners in this
field will be the first to implement effective automated purchasing of FMCG products via Smart Home
appliances, starting with basic groceries, based on an ‘Opt-out’ model, meaning consumers would
have to choose to change their automated routine purchases, rather than choose to make them as
they do today. With these ‘stickier’ purchases secured, the prize on offer for the ‘winners’ is more
reliable revenue and a larger share of the $1,494,000,000,000 IoT end-point consumer spending that
is predicted by 202013.
To achieve this goal, FMCG firms should
invest in their IoT capability, their IoT
integration capability and build partnerships
with leading IoT firms like Crestron and
Samsung. They should also invest in
making ‘Just In Time’ delivery possible for
the end consumer, not just B2B. This will
allow suppliers to meet ‘in-the-moment’
need from Smart Home customers. To do
this, FMCG suppliers will need to
fundamentally re-think the way supply
chains work. A key enabling technology
here will be 3-D printing (currently early-
stage on the Gartner Hype Cycle).
If firms in the FMCG sector are to capitalise on this trend, the first step is to understand and accept
the trend, then to devote resources to answering the question: how can we prepare our
partnerships, product design, supply chain, marketing strategy and broader business for this
shift?
4th April 2018
3. The opportunity to engage with consumers via Voice Assistants (VA) will only grow as the
number of users mounts and VAs become more sophisticated. Figure 2 shows that VA users
have already been adopting them for making purchases.
Squared Online Group 17
How to Ride the Smart Home Wave
Step 3: Be the best at ‘conversational commerce’
Fig 2: Level of usage of voice assistants across a variety of
functions
3 of 4
Benefits, risks and challenges of implementation
Research by the Capgemini Digital Transformation Institute shows that when consumers have a good
brand experience with VAs, 45% of them increase their spend with that brand14.
Marketers need to apply the principles of social listening and ‘I-want-to-know, I want to go, I want to
do, I want to buy’ micro-moments learnt from mobile customer journeys and develop these to be
applicable to VA customer journeys. The first innovators to perfect this opportunity to engage with
consumers through this medium in ‘See’ and ‘Think’ micro-moments have a big prize up for grabs,
because as once customers move into ‘Do’, it is easier than any other medium with IoT, assuming a
successful ‘opt-out’ purchasing model, to convert them into repeat customers in the ‘Care’ stage.
By leveraging various IoT connections
around an individual it is possible to marry
brand and personal data in order to build
more personalised experiences.
For example, in a home with a smart fridge, each
family member could receive an experience
tailored to their recent dietary preferences, or in a
connected car the offers could be tailored to the
driver behind the wheel according to the weather,
journey destination, or even the car’s state of
repair.
Benefits Risks Challenges
• Cumulative profit for a
low-margin industry:
higher profits and lower
revenue volatility due to
higher ‘stickiness’ of
automated purchasing
patterns due to the default
effect
• Cross-merchandising
opportunities due to linked
data cross-device
• Brand appeal due to
highly-customized user
experience and increased
engagement
• Security breach (As Voice
Assistants continue to
establish themselves as a
pivotal feature in the 21st
century home the modern
hacker/fraudster will also
evolve their techniques in
an attempt to exploit this
expanse of user data)15
• “Out of stock” (customers
can immediately switch to
another retailer)
• Risk of high WIP costs on
balance sheet due to high
inventories required for JIT
delivery
• Highly competitive
marketplace – risk of high
investment with limited
payoff
• Error reduction: VA’s
inability to detect distinct
voices in a multiuser
environment. This also
brings a challenge with
parental control system –
how can parents make sure
a child won’t order
something they don’t
expect?
• Finding suitable strategic
partners
• Communicating risks with
customers and working with
regulators to build comfort
There are undoubtedly a number of benefits to be attributed to adoption of this trend. However, each
new development has implications attached and new challenges to evolve:
4th April 2018
4. Squared Online Group 17
How to Ride the Smart Home Wave 4 of 4
When adopting IoT systems, firms are strongly advised to consider relevant ethical,
regulatory and societal implications. To put that in plain English: attitudes and laws take
longer to evolve than technology, so respect privacy, and be wary of the ‘creepy line’.
Regulatory implications
In the long run, consumer attitudes drive regulatory change, so and “Report on Robotics and AI”
produced by the UK parliamentary Committee on Science and Technology shows how eager
governments are to consider the consequences of the adoption of this technology.17
The best route for innovators is to collaborate and cooperate with governments, developers and
early adopters to de-mystify the technology and to agree general guidelines along with quality
and safety standards. This approach allows firms to better get a sense of, and a stronger ability to
influence the ‘triple tipping point’ at which regulation, technology and public opinion align to form new
markets and opportunities.. 19,20
Appendix: Sources
1. https://www.cambridgeconsultants.com/insights/iot-and-fmcg-its-not-just-about-the-pork-pies
2. https://www.statista.com/statistics/370350/internet-of-things-installed-base-by-category/
3. https://www.nbcnews.com/tech/gift-guide/out-milk-lgs-new-smart-fridge-will-let-you-know-
n99531
4. http://www.adweek.com/brand-marketing/gravity-award-winner-nivea-sun-solar-ad-charger-
160274/
5. https://www.cmo.com.au/article/600880/10-examples-how-brands-using-digital-technology-
attract-customers/
6. https://www.capgemini.com/wp-content/uploads/2017/07/making_the_connection-
how_internet_of_things_engages_consumers_and_benefits_business.pdf
7. http://www.digitalistmag.com/iot/2018/03/07/skill-gaps-limit-iot-implementation-success-
05922034
8. Institute of Grocery and Distribution, accessed: https://www.farminglife.com/farming-
news/shopping-habits-little-and-often-1-3646700
9. https://www.statista.com/topics/2430/smart-homes/
10. Whitepaper-PDFs/Walker%20Sands'%20report%20Future%20of%20Retail%202017.pdf
11. https://www.foodbusinessnews.net/articles/9617-general-mills-laying-the-foundation-for-a-
digital-future
12. Huh, Young Eun; Vosgerau, Joachim; Morewedge, Carey K. (2014-10-01). "Social Defaults:
Observed Choices Become Choice Defaults". Journal of Consumer Research. 41 (3): 746–760
13. https://www.statista.com/statistics/485252/iot-endpoint-spending-by-category-worldwide/
14. https://www.capgemini.com/2018/02/how-voice-assistants-drive-growth-conversational-
commerce/#
15. https://www.symantec.com/blogs/threat-intelligence/security-voice-activated-smart-speakers
16. https://www.forbes.com/sites/timworstall/2016/10/12/exactly-what-we-dont-need-regulation-of-
ai-and-technology/#4ae5ff495333
17. https://publications.parliament.uk/pa/cm201617/cmselect/cmsctech/145/14502.htm
18. https://www.diplomacy.edu/blog/artificial-intelligence-policy-implications
19. https://www.huffingtonpost.com/entry/should-artificial-intelligence-be
regulated_us_597a452de4b09982b737630c -
20. https://techcrunch.com/2017/01/28/artificial-intelligence-and-the-law/
4th April 2018