Future of Retail in Shanghai
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Late one night in Shanghai, China, the document discusses the changing retail landscape and priorities for winning customers. It notes technologies like drone delivery and augmented reality trials are shaping new retail ecosystems. The key to understanding customers and winning with experience is trust, which enables personalization. Data and insight can then be used to create better experiences for different groups like Millennials, who expect easier shopping. The document emphasizes a unichannel approach driven by customers and building trust to succeed.
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Future of Retail in Shanghai
- 1. LATE ONE NIGHT In The Middle Of Shanghai, China’s Biggest City
- 2. Mmmm. Chewing Gum. Socks. Milk. Nikes.
- 4. Drone Delivery Self Driving Holo-Assistant Parcel Collection VR Shelves & Stock AR Product Trials & Customisation Solar Powered Vending Machines Automatic Restocking
- 8. “The current retail environment is like a dead sea, killing off existing life but providing a new eco-system in which different organisms can thrive” Greg Satell, Author of ‘Mapping Innovation: A Playbook for Navigation a Disruptive Age’
- 9. The Future? Branded, Edible Service Bots?
- 10. What comes after smartphones, wearables etc.?
- 11. To understand how to win with customer experience you need to know your customer as well as you know your employees and your business.
- 12. Millennials What, Oh What In The World Do They Want? And How Do They Want It?
- 13. “Millennials have higher expectations that the shopping experience is going to be easier. It should be easier to get information about the products, easier to have a more personalized experience, easier to check out.” Jeff Fromm, FutureCast
- 16. How you meet the future and whether you win in customer experience depends on what matters most to your brand
- 18. “What is the most important thing to you in your company – is it trust or is it growth? If anything trumps trust, you’re in trouble. What is the most important thing to you? Really look at your value system...
- 19. ...What’s number one? If everything is important, nothing is important. You have to choose what is really important to you. We’re in a new world and trust better be number one.” Marc Benioff, Salesforce
- 20. Dating?
- 22. Trust enables access to data. Data enables personalisation and better experience. Without trust you cannot become customer centric
- 25. If you want to win: 1. Take a unichannel approach 2. Be driven by your customer 3. Build trust 4. Use insight and understanding to create better experiences
- 26. Platinum Seed creates connections between humans & brands through insight, technology and creativity. Social contact - @BradElliottSA
Editor's Notes
- Miranda in China through Naspers Goes to M1nt but its model night - Regrets not buying pair of red Nike Airs she saw but now the stores are closed
- No problem, whips out her phone and before she’s set a foot out of club a vehicle that looks like glass mobile home is there It’s been tracking her online data and has a pair of red Nike’s in the expats size available It knows she likes cinnamon gum and cherry Coke The self-driving mobile mart has everything Miranda might need at one am, but the holo-assistant is always available in the 24/7 store on wheels, to ensure customers can enjoy brilliant service as well as round-the-clock convenience.
- This is the retail experience that you could enjoy from Moby Mart in Shanghai right now. Drone delivery and auto-restocking aside, a mobile store like this doesn’t even need to have real products on its shelf. Gum/Milk but if you wanted a new smartphone, dress or boots you could put on the VR headset and browse virtual products
- While in China, and with her new fat paycheck, Miranda has developed a taste for the good life The Mart has a 3D printer to cater for her taste 3D printing is becoming common place, from musical instruments and cars to body parts, so don’t be surprised if you find one of these in a mobile store giving us access to 3 star Michelin Food at the press of a button If you have a spare $4,000 you can pick up one of these machines, the Foodini, which will print food for you based on a repository of 1000’s of recipes
- Speaking of VR, Alibaba, has opened a number of physical retail stores with virtual shelves Customer takes off shoe, sizes, colours etc appear on screen If out of stock, customer simply scans code with phone and it’s delivered by drone
- Welcome to the world of customer-centric retail, where unichannel (not omnichannel) is the name of the game. Frictionless simple experiences = value exchange Amazon has rolled out it’s own version, called Amazon Go 10 stores across the U.S Download app, walk in, pick up products off shelf and walk out and your card is debited. Complex AI through camera’s etc. Feels like shoplifting but legal, and takes some getting used to
- Wait, isn’t my topic meant to be ”winning with digital customer experience?” What I’ve been trying to illustrate is that digital is no longer a “thing”, In a year digital won’t exist – it just is The lines are so blurred, are so deeply integrated that the best retailers know that digital isn’t a channel In a world populated by the internet of things, the big unichannel epiphany is all about meeting customers wherever they are. Whether it is on Instagram, Apple Watch, Amazon Echo, Samsung TV, or a Ford SYNC. It’s all about making things as easy and effortless as possible for your customer. So if you’re in the States and you’re hungry for a Domino’s Pizza, all you need to do is open your app [the brand has zero-click ordering], or send a text or a tweet with the pizza emoji.
- SA retail has been punishing with its price wars and slim margins and slow to integrate ecommerce, let alone unichannel experiences In a world with entitled customers, and disruptive technologies , the ability to execute seamless experiences is a basic requirement for retailers who want to survive, nevermind win This has already been proven around the world with the likes of Toys R Us, Gap and Walgreen either under pressure or close to bankrupt. Locally, Edcon comes to mind. With all this going on the only thing you can be certain of is what you know won’t prepare you for what is to come, nobody knows how the future is going to pan out. There are some unusual and seemingly crazy developments, like these edible robots, which heal you on the outside, you eat them , and then they heal you from the inside. With Amazon’s big health play, we might find these actually becoming commercial, although I don’t believe in eating robots.
- What about smartphones, how many of us have gone through the pain of losing one? Is the experience enough to convince you to get a mobile device implanted in your brain? As mad as it sounds the U.S military is pumping billions into researching this technology Ok, that’s all the blue sky stuff, lets get back to reality for a bit.
- I know this is the graveyard session and your brains are probably saturated, so if you’ve switched this is the only 1 min I’ll ask you to focus on If you take away nothing else, take away this: read slide Moreso, like Alibab’s Jack Ma says the order should be: Customers First, Employees Second, Shareholders last To win at customer experience you need: The right technology Data AI/ML but also smart people to derive insights out of that data For me it’s not about big data, thick data, thin data – it’s about using the data we have smartly – smart data to understand needs, wants and behaviour
- - Now let's look at your customers because understanding humans is your access to winning with customer experience. - What we know for sure is that the more people interact with digital the more consumer behaviour is shifting
- - Fromm become famous because of the well-researched book he’s written on millennials and Generation Z. - As anyone who has a teenager in the house will attest, understanding younger generations is its own challenge
- Remember when customers were loyal to brands in industries? That era was the eighties and nineties — terrible for music, but great for mobile innovation. Nokia were the initial game changers when the launched the 2110 series expecting 40,000 sales and getting 10 million Towards the end of the 90’s their valuation had skyrocketed from $21bill to $70bil The next decade was better for music but not for Nokia. New rivals in the form of Apple, Blackberry and Samsung were entering the market and the disruptor was becoming disrupted A few years later Nokia sold to Microsoft, who for the most part, failed to revive it Innovation and technology are continually adding value, creating new industries and changing existing ones. These days brands know that there’s so much choice that it is difficult, if nearly impossible for customers to be loyal.
- Platforms like Spotifyand iTunes have democratised music This has changed the way people listen to and consume music, and is changing the way music is being made. People aren’t buying albums anymore. That’s why data is important. Because data shows the shifts and changes. It shows how humans are changing and what you can do so that your brand doesn’t become obsolete. But what’s required to achieve this?
- The first thing your brand needs to look at is what is most important to it. - What is the founding principle or dominant belief of your brand, and the guardians that steer it - your business? How you meet the future and whether you win in customer experience depends on what matters most to your brand/business. So let me ask you a question: What’s most important to your brand/business?
- If you’re good with understanding your customers or delivering to a specific market/tribe, what are you going to do with that connection? When you have trust you can grow into any sector Trust is the entry point to great customer experience Trust enables you to gain more data, understand your customers more , and build more trust
- Marc Benioff, one of the world’s best digital marketers and the founder of Salesforce has this to say about the relationship your company should have with consumer trust:
- Without consumer trust your brand is lost. Think about trust as your compass in a strange land And if you have a trusting relationship with your Moby Mart for example, you’re more likely to pass with data about your habits and your routine - what kind of relationship will you have with your retailer? What if your driverless store collects enough information about you that through AI and the right algorithm it is able to find you the perfect partner? What is the value of finding true love?
- It’s quite conceivable that you could find yourself alone and lonely in Shanghai one night, wishing you had a partner to explore the city with Today A Ican map your values, attitudes and behaviours and help you find a partner with whom you have perfect compatibility. So if you have won customer trust, you can shift your relationship with that customer. You quite literally could fulfil any need your customer has, or take up new roles in their lives becoming closer and closer to that customer. If you have trust with a customer you can be anything, you can even help find your customer the love of their life. [Ts and Cs apply!]
- A business, whether it’s a retailer, a bank or a B2B service provider, stands or falls on the trust placed in it by its customers. Yet trust scores seem to be at an all time low In fact, according to the 2018 Edelman Trust Barometer, media has become the least-trusted global institution for the first time, with trust scores of over 50 percent in only six markets, five of which are in the developing world. There is also declining trust in search engines and social media. On the flip side, according to , according to an independent EY report from 2017, 50% of companies said being trusted by customers and stakeholders equals better financial results,
- Customer-centricity seals more sales. Say that three times fast. How to achieve this? For Amazon, it was four things: Offering fast, hassle-free ordering and delivery. Using data to personalize, helping shoppers in real time with product selections based on browsing and buying history. Going out of its way to help customers get the best deal. Empowering its customers to make informed choices by publishing user reviews on the product page. In retrospect, this seems like a slam-dunk, but anyone who tried to order stuff online back in the early days of eBay might remember what a slow, painful process it was. Now every online retailer is scrambling to implement the ‘Amazon model’.
- Some South African retailers have been innovative — I would call ‘market leaders’ — when it comes to customer centricity. Take Yuppiechef, a company that has been redefining online retail since it opened 12 years ago. The timing was perfect — Jamie Oliver and Gordon Ramsay were reviving home gastronomy, and those with the means were investing in kitchen tools and appliances like never before. The founders knew from early on that competing on price was pointless, and focused on quality products, marketed on a site that was as frictionless and enjoyable as possible. The software system YuppieChef built (from scratch) meant that even in the dispatch warehouse, packers had access to customers’ profiles. So one of the packers started writing personalised notes to the customers. This little personal touch has continued to this day, and Yuppiechef is now recognised as a symbol of customer centricity. In Yuppiechef’s recently-opened physical stores, the customer experience is continued seamlessly: items have QR codes that link to the online store, with user reviews, while payment and delivery is completed using the customer’s online profile.
- So there you have it. If you want to win at customer experience, take an unichannel approach, but be driven by your customer. Build trust, which will give you access to data. And data will tell you everything you need to know about your customer.