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  2. 2. CONTENTS 13 FOCUS 07 Pop-up store takeover 17 Rise of the pop-up store could revolutionize high street retail FEATURES RETAIL 13 Self-serving Fast, easy and convenient retail experience REVOLUTION 19 Flagships Focusing on creating an 19 immersive brand experience The entire world is now a store – one in 27 Shopping mall in your pocket Brands embrace mobile devices which we can make instant purchases as the future of retail regardless of time or place. 31 Moving retail online The world of shopping is undergoing a Major investment in online retail could signal a move towards virtual retail sweeping transformation driven by the demand for immersive experiences, 35 A cashless society new technologies, and new services. Cash is no longer king 35 Whilst virtual stores are growing in SPOTLIGHTS popularity, physical stores remain as vital as ever, providing an environment in 17 Urban Station which the retailer can promote their brand 23 Levi’s and offer an unparalleled experience. No.43 3|4 ANTENNAE
  3. 3. Retailers and brands have to create new and innovative shopping destinations that engage the consumer, driving them to explore what there is to offer. No.43 5|6 ANTENNAE
  4. 4. PoP-uP Left: Gap uses pop-up stores for a variety of its web based brands store takeover RISE Of ThE pOp-Up STORE COULd REVOLUTIONIzE hIgh STREET RETAIL Over the last couple of years, American and European cities have seen a growing trend to utilize public spaces better. This has manifested itself in the development of the guerilla gardening movement, as well as a rise in temporary ‘pop-up’ shops, cafes, restaurants and cinemas. Although previously seen as a a variety of pop-up stores in major cities. In the US, pop-up retail has considerable The surprise factor of a shop retail approach that only small, traction with big brands. Toys R Us will be opening 600 new pop-up stores and hiring ‘popping-up’ in the high independent companies would take, we are now seeing big at least 10,000 people for the holiday season this year. This follows last years success of street found considerable consumer brands running small the 90 stores it opened, and also the need to maximize sales during the holiday season, traction among consumers, pop-up stores in major cities. the period where the company makes a bulk with small, independent of its sales. By putting many of these pop- Due to the recent economic crisis, a number up stores in malls, the brand becomes more retailers providing an of retail businesses shut down in Western accessible to consumers and can also leverage economies, leaving behind a large amount of itself as the place to find the years best toys. alternative, unique offering vacant shop space. These empty retail spaces were utilized to great effect last Christmas In the UK, music retailer HMV opened up 10 for Christmas in both their by both small, independent retailers and big brands, who took the properties on as short temporary stores across the country. They were joined by upmarket department store products and retail experience term leases just for the holiday period. The retailer Harvey Nichols, who set up a pop-up surprise factor of a shop ‘popping-up’ in the food and wine store in Manchester’s largest high street found considerable traction among shopping mall. This met a need for the retailers consumers, with small, independent retailers to expand their presence in the high street, providing an alternative, unique offering for and showcase their particular expertise Christmas in both their products and retail and products to consumer in an attempt to experience. However, big brands also felt the draw them into the main retail outlets. need to take the same approach, opening up No.43 7|8 ANTENNAE
  5. 5. Right: Phaidon has opened pop-up stores in London and New York However, the short-term leases attracted strong following among younger people, the Phaidon, the book publisher, into opening brand looked for other ways to interact with up retail stores in Central London and SoHo, its consumers and found a pop-up café to be New York. Describing themselves as ‘reluctant the most culturally relevant, as well as having retailers’, Phaidon moved into using small retail high visibility and low risk. It is important for spaces because of the decline in the independent brands to keep themselves fresh and relevant bookselling base and a lack of interest from to consumers and this is especially true for chain bookshops in niche publications. We food makers, who face tough competition should expect brands that haven’t entered for shelf space inside grocery stores. retail before, or that don’t have a physical retail presence, to start using pop-up stores as a Brands that have only ever had a presence way of reaching out directly to consumers. online have also started to use pop-up stores as a way of having a physical presence that is Another brand that has never had an independent both flexible and low cost. Gap’s website based retail experience is Pop-Tarts, yet they have brand Piperlime has used pop-up stores as a recently opened up a pop-up store in Times bricks and mortar supplement to its online retail Square, New York. The Pop-Tart ‘café’ features model. The brand generates hype by renting a 30-item menu, including ‘Pop-Tart Sushi’ and out space for as little as three days at a time, the ability to customize your own Pop-Tarts becoming a social event and enhancing the with a variety of fillings, frostings and sprinkles. niche, contemporary equity of the brand. Gap The ‘café’ was prompted by social networking has also installed a permanent, rotating pop- interest in the brand, with Pop-Tarts being one up store in New York next to its flagship retail of the top 20 most popular pages on Facebook. store, where it promotes collaborations with Realizing that Pop-Tarts had a particularly designers and brands based on seasonal and No.43 9 | 10 ANTENNAE
  6. 6. Right: Pop-Tart Sushi at Pop-Tart World Far Right: Pop-Tart World opened in Times Square, New York A pop-up store can generate an extensive amount of information on not only the profitability of a certain location, but also the consumer types that shop there, and their purchasing habits cultural events. This is an interesting use of the flexibility to provide a more unique, customized pop-up store format as a supplement to the main experience for their consumers at a minimal risk. store, providing a retail space to give consumers Pop-ups serve not only as a way of reaching a totally different experience and range of out to consumers in new ways, but also as a products to what they’d find in a standard store. way of gaining consumer information about a location and testing it for profitability. We should also expect more pop-up stores to be used by big brands as a barometer for We should expect brands to increasingly use potential future success in certain locations. A pop-up stores as a key retail strategy, particularly pop-up store can generate an extensive amount during the holiday seasons. This could lead to of information on not only the profitability of a a wholesale change in the way that our malls certain location, but also the consumer types and high streets currently function, with a move that shop there, and their purchasing habits. towards flexibility and the short term. We could If sales exceed expectations then a business soon see our retail areas changing with the should have enough information to not only seasons, as brands seek to maximize profit and decide to deploy a permanent store there, reduce risk by providing a smaller scale, more but also have enough information on what to customized retail experience for consumers. stock there and what customer experience they should provide. This business model is particularly relevant in today’s tough economy, where risk is reduced and consumers are targeted with a more customized experience. What started out as a movement by small, independent retailers has now been adopted by some of the largest retail brands in the world. The availability of short term leases on retail properties provides brands with the No.43 11 | 12 ANTENNAE
  7. 7. self- All: Mondrian South Beach Hotel vending machine www.mondrian- serving fAST, EASy ANd CONVENIENT RETAIL ExpERIENCES Retailers are ushering in a new world of self-service buy-and-pay applications, with consumers increasingly using self- checkout stations at grocery stores, paying for travel through airport check-in kiosks, renting movies from self-service DVD rental kiosks, and motorists are refueling their vehicles at pay-at-pump gas stations. Restaurant diners can trend will only accelerate and consumers will increasingly $3,000 to $10,000 a square foot a year. In airports, where buy a wider range of items at vending machines. 70% of ZoomShops are situated, the numbers are even even order from touch-screens at fast- more striking – airport stores make about $1,000 a square food chains and use hand-held, pay-at- In the UK Sainsbury’s is currently trialling a vending foot while ZoomShops generate $10,000 to $40,000 table devices at sit-down restaurants. machine for NHS prescriptions, offering consumers a square foot. As an example one Apple iPod vending a secure and convenient way to obtain medicine at machine ZoomShop in Hartsfield-Jackson International This new mode of self-service kiosk commerce is being a time that suits them, while in Pennsylvania USA, a Airport makes $55,000 a month (Atlanta Journal). Retailers are ushering in a wine vending machine is currently being trialed. built on ground already broken by ATMs and vending machines, both of which are going through challenges In addition each ZoomShop incorporates an interactive new world of self-service and exciting developments in their own right. Well aware that helping consumers serve themselves is Changing consumer preferences about shopping and the high cost of operating brick-and-mortar stores are touch screen so that the consumer can learn more about the products before purchasing. This not buy-and-pay applications big business, manufacturers are working to develop inspiring premium brands to rethink how they sell their only allows the consumer to shop at their own pace applications to compete in this burgeoning market. wares. As well as the traditional cheap items, more high- without a shop assistant but it also presents accurate end items are achieving sales success through vending. information, replicating the process that consumers Consumers increasingly desire a fast, easy and convenient have become accustomed to on the internet – not retail experience, and it can help businesses increase ZoomSystems offer consumers the chance to purchase only are they comfortable with researching and revenue and build customer loyalty. A study by NCR found high-end brands such as Apple, Sephora, and ProActiv, buying products on their own by touching screens that 86% of Americans were more likely to do business with and can now be found at over 1,000 locations across the and pressing buttons; they often prefer it. companies offering some sort of self-service. This appears US and Japan. According to Gower Smith, the founder and to be especially true of young shoppers who are particularly CEO of ZoomSystems, “Zoom does for retail what ATMs did In March ZoomShops introduced their first vending comfortable with the technology, and as part of the internet for banking. A ZoomShop costs less than an employee”. machines at leading supermarket chains including Kroger. generation demand instant gratification without feeling the The revenue that can be achieved via a vending machine These ZoomShops bring Body Shop’s popular body care need to handle the product prior to purchase. As consumers is also very impressive, while mall stores produce about and bath products to convenient locations across the US, become increasingly more comfortable with this method, the $330 a square foot a year, a ZoomShop can generate creating a new channel for the boutique brand. “More No.43 13 | 14 ANTENNAE
  8. 8. The United States currently has The description for the $90,000 400,000 self-service kiosks (Self- Service & Kiosk Association) Bentley reads “‘When admirers ask where you bought your 2003 Across Japan there are 5.4 million Bentley Arnage convertible, we vending machines – that is a dare you to say you bought it vending machine for every 23 people (Self-Service & Kiosk Association) from a vending machine” Over $60bn is spent in vending machines across the US each year (Ingenico) Eight out of ten British shoppers are happy to swap their purchasing from more traditional ‘bricks and mortar’ retail outlets to vending machines (Ingenico) Revenues for vending operators are expected to be $11.3 billion this year (IBISWorld) In the US the self-service economy is than ever, customers today want to access products on the shockingly new and the reassuringly ordinary”. set to reach $1.2 trillion in 2012 their own terms when and where they want to. For The The description for the $90,000 Bentley reads CEO of U*tique, Mara Segal describes the modern (IBISWorld) Body Shop it is an opportunity to meet their expectations “‘When admirers ask where you bought your consumer as “savvy, information hungry, and in an innovative way,” said Al Montalvo, Director of New 2003 Bentley Arnage convertible, we dare you to time-strapped… e-commerce bridged the gap Sales and Emerging Channels for The Body Shop. say you bought it from a vending machine”. between products and information, automated UK vending machines sold over retail will bridge the gap between information and Not only are we witnessing premium brands utilize vending Front Office Manager James A. Bryant III is quoted instant gratification – it’s retail on demand”. £4.3bn in products, of which $1.5bn in mass locations, but also in boutique venues where as saying “People just pass by it, and literally even if was refreshments consumers have traditionally preferred greater service. they weren’t thinking about buying something, they While in the UK they’ve been slow off the mark to This month the Hudson Hotel in Manhattan, New York, buy into the idea. They want to purchase something exploit the instant gratification offered by vending introduced a new vending machine in their lobby that cool; it’s almost a story to tell - really an experience. machines, some of London’s hotels are beginning to is available for guests around the clock. Their vending I’ve seen people spend 20 to 30 minutes just looking follow suit. As part of London Fashion Week the St machine is stocked not just with travel necessities but with at the different products, and just be amazed.” Martins Lane Hotel hosted ‘The Love Machine’ stocked items that are both luxurious and a little quirky, and vary with Selfridge’s products including an Alexander greatly in price from as little as $4 to as much as $10,000. Another upmarket vending model is being installed across Wang dress and Vivienne Westwood fragrance. the US this year – U*tique, an interactive luxury store This page: Kim Walker, Senior Vice President and Creative that dispenses high-end and niche labels that include These new machines are offering a new way for retailers U*tique vending boutique Director for Morgans Hotel Group believes that Frédéric Fekkai and MD Skincare. Available in boutique and brands to interact with their consumers, having the “This incredible concept gives us the opportunity to hotel lobbies, upscale gym locker rooms, nightclub ability to delight them in new ways, offering them greater enhance our guests’ travel needs by offering exciting lounges, premium shopping malls and airports. information, and in return the automated machines learn Opposite: luxury brands, everyday essentials and unexpected about consumers’ shopping habits. As vending becomes Hudson Hotel vending machine experiences to take advantage of during their stay.” Russell Greenberg, Director of RUX who were responsible more popular, sophisticated brands will have to develop for the overall design of the machine said “The words new packaging and communications at the point of The Semi-Automatic machine in New York follows the upscale, automated and retail are not typically found in sale that can profit most from the new technology. successful launch at their Mondrian South Beach Hotel, the same sentence. We needed to invent an image and Miami. The machine here has been dispensing items experience for U*tique that was so seductive, elegant, priced between $10 and $1.2 million, including Bentleys and streamlined that it would instantly transform people’s to bathing suits. The Semi-Automatic with its sleek design preconceived notions about what shopping could be. became an instant success and has become a feature The magic and allure of U*tique is that it combines of the hotel where guests gather to explore the store. No.43 15 | 16 ANTENNAE
  9. 9. urban station In Buenos Aires a new coffee shop has opened that meets the growing trend for people to work remotely, which is estimated at between seventeen and twenty-six million people. The shop is filled with desks, conference rooms and electrical outlets, giving it the feeling of a trendy workspace more than a coffee shop. They rent the desk space, which includes food and drink in the cost of the hour. In addition, the large and airy store offers art and business magazines and books to read, comfortable armchairs for lounging and casual meetings, fully equipped meeting rooms, printers, fax and scanners, plus lockers for your possessions. No.43 17 | 18 ANTENNAE
  10. 10. flagshiPs All: Apple’s new flagship store in London’s Covent Garden fOCUSINg ON CREATINg AN ImmERSIVE BRANd ExpERIENCE There is a growing desire for service that is intuitive and worthwhile, adding a level of discovery and education to Takings are predicted to top £60 million per the shopping experience. year, making it even more profitable than the Regent Street Store, which is currently Apple’s Retailers are increasingly giving consumers most successful store globally taking £2,000 a reason to visit the store, enabling them per square foot – more than Harrod’s. to discover new products that they had not previously considered, and encouraging them to Apple Stores deliver an holistic brand experience try them. Flagship stores are opening up across allowing consumers to have a deeper London’s West End, including Louis Vuitton, interaction with the brand, helping Apple to Chanel and Apple. achieve the success it has today. More brands are trying to replicate Apple’s strategies and For the last few years Apple have led the way develop every store as a flagship store. in developing a branded retail experience and their new store in Covent Garden is their In particular, Steve Jobs, as part of his role biggest ever store, becoming the ‘world’s on the board, is attempting to repeat the flagship store’. The store includes a Start Up success he has achieved with Apple by room where staff assist consumers to set up assisting the Walt Disney Company revamping their purchases before they leave the store. 300 retail stores. The new store designs are intended to put the magic back in the retail Apple even hope that the store will become a experience. The goal of the new stores is to destination for excursions, with a new Community make children clamor to visit the stores and room that can be used for classroom visits. stay longer, bolstering sales as a result. No.43 19 | 20 ANTENNAE
  11. 11. All: The new Disney Store in California The first of the new Disney Stores opened in June in California. Here, theaters allow children service, and with more options of where and how they choose to spend their money, retailers and Increasingly consumers are to watch film clips of their own selection that emits scents matching the footage, participate in brands alike are having to respond by delivering unique experiences that attract consumers to demanding better service, and karaoke contests or chat live with Disney Channel stars via satellite. Computer chips embedded in visit their stores and spend time inside. with more options of where packaging activate hidden features around the and how they choose to spend store, for example walk by a ‘magic mirror’ while holding a princess tiara and Cinderella appears. their money, retailers and brands Jim Fielding, president of Disney Store Worldwide alike are having to respond by wants to “make each visit customizable so that it is much more memorable. This is truly delivering unique experiences that an immersive, one-of-a-kind retail experience for children and families that only Disney attract consumers to visit their could deliver”. Paul Gainer, Vice President and General Manager of Disney Store North stores and spend time inside America adds “The magic and wonder of Disney is captured within the unique experiences that await families at the newly designed Disney Store. More than a store, we’ve created a destination that brings Disney stories to life”. Increasingly consumers are demanding better No.43 21 | 22 ANTENNAE
  12. 12. levi’s Levi’s revenues are rising - growing 17%, (Reuters) - in no small part to their investment in their retail strategy. By opening high-end concept driven boutiques like the one on Regents Street in London are helping to elevate the brands fashion credentials. This store, which has been open since March, is dramatic and inspiring, engaging consumers as they are taken on a journey through the origins of denim and the brand’s evolution. This space offers their customers the ultimate brand experience, while providing expert knowledge, product offering and story telling. The store is designed to give consumers a tangible look into the craftsmanship that goes into the original and definitive jean, and instead of putting clothes in the window they have dedicated it to art. Armin Broger, President of Levi Strauss & Co. Europe, Middle East and North Africa is quoted as saying “On Regent Street, Levi’s has created a place where craftsmanship and authenticity deliver the most genuine experience of the brand anywhere in Europe.” Through such stores Levi’s are successfully maintaining a premium image whilst also offering more accessible alternatives in other high street outlets. No.43 23 | 24 ANTENNAE
  13. 13. Modern technology allows us to purchase whenever and wherever we are, whilst assisting us in those decisions. Brands that use these technologies to support their retail models and products, are those that will have greater chance of success in the future. No.43 25 | 26 ANTENNAE
  14. 14. shoPPing mall Left: N-building by Qosmo and Terada Design in your Pocket BRANdS EmBRACE mOBILE dEVICES AS ThE fUTURE Of RETAIL The prevalence of mobile devices, and the continuing increase in the abilities of our technologies, mean that we can now interact with products and product then consumers are more likely to make The ability for mobile devices to give consumers places like never before. This a positive purchasing decision on that product. access to ‘background’ information has also has already infiltrated our lives become a highly innovative area of retail. The A recent retail program has used a combination growing adoption of augmented reality among in the form of social networking, of mobile device technology and RFID tags to brands is a strong indication that they see this where people can connect enhance the consumer experience of purchasing becoming a strong area of the mobile web, and The future of augmented whenever and wherever they are in-store. A collaborative project between TOTeM that it will grow prevalent among consumers in reality for retailers could (Tales of Things and Electronic Memory) and the the near future. Augmented reality has already thanks to their mobile devices, letting friends know where in charity Oxfam, has resulted in various donated objects and clothes being infused with personal been used in print advertising, and even in concert programs. The rock band Muse have be where users preview town they’re having a drink, or stories, through RFID technology. Consumers can walk around the store accessing memories utilized augmented reality in their concert programs, linking it with their website to give and purchase whatever rating the latest restaurant and sharing it with the community. and stories that the previous owners have instilled within their old possessions, using interactive tours of the stage and access to exclusive interviews with the band members. they see, anywhere they their mobile devices as readers to access see it With the increased use of mobile devices as the information in text or audio format. However, the ultimate use of augmented reality portals to various aspects of our lifestyle, the for retailers is in the ability for digital information potential for brands and retailers to generate This innovative approach could be applied to appear on top of the physical world, when sales through them is enormous. However, by other retailers and brands to create a it’s viewed through a mobile phone camera. The this also means that the need for brands and more immersive and informative experience, Layar app allows content partners to provide retailers to provide products and services that which could add value for the consumer. For special paid content that users can access via serve as stand alone experiences, is much example, through using RFID technology, their mobile devices. This can allow them to look greater. Creating an infrastructure to deal with a protein supplement brand could include at anything from product information to restaurant the increased ability of consumers to access information on how to use the product in reviews, as well giving consumers a way to information about products has become vital. conjunction with the right training regime, navigate new locations by brands and retailers. Mobile applications like Stripey Lines use asking the consumer what results they want The future of augmented reality for retailers barcode scanning and image recognition to and helping suggest the right product for them. could be where users preview and purchase enable users to access information quickly The technique could also encourage people whatever they see, anywhere they see it. about a product – if a brand can provide sample to realize the sentimental value of products, reviews, helpful tips or further information for that appealing to their desire for authenticity. No.43 27 | 28 ANTENNAE
  15. 15. Worldwide smartphones market is expected to reach 804.42 million units by 2015. (GIA) Using mobile devices as a way to purchase goods and services is expected to exceed $300bn by 2013 (Juniper research) Ticketing will represent 40% of the mobile payment market by 2013 (Juniper research) Augmented reality has also been used on the order to sway them over to paying for things by 2011, giving a clear indication that the Far Left: Subports uses a text exteriors of buildings, such as the N-Building by via their mobiles. One of the key areas that will future of retail will be moving more towards based payment system Qosmo and Terada Design. The low-rise retail stimulate growth in using mobile devices for mobile devices sooner, rather than later. building is covered with QR codes, which can payment is ticketing, which could represent 40% be then photographed using your phone. This in of the market by 2013 (Juniper research). This will Mobile devices allow consumers to create, Left: Stripey Lines App turn shows what retailers are inside the building, be driven by usage of mobile device payments communicate and explore the world in ways any sales and coupons that are currently valid, on rail, air and bus networks, as well as with that are constantly changing. The challenge for and even offers the ability to make a restaurant sport and entertainment venues and events. retailers will not only be keeping up with new reservation. Layered on top of this information are technologies, but also utilizing them in ways the Tweets and comments of the people inside, An example of growing use of mobile payments that are easy for the consumer to understand due to the use of Twitter geotagging. What is is, a New York-based mobile and access. Using new technology is not most innovative and exciting about the project technology business that allows buyers, enough – it has to work on the lower tier of is that it doesn’t require a special application on sellers and donors to use text messages in the consumers to be accepted and adopted by your phone – all that is required is that the phone transaction of products and services. Its main all the big brands. Mobile devices provide a has QR capability. This makes the innovation selling point is that its innovative retail model portal for brands and retailers to layer on extra less about the technology, and more about lowers the barriers of doing business between information and features that would be difficult its application in everyday life - the ability for independently-owned shops, designers, artists and expensive to apply to their store interiors consumers to scan the skyline with their phone and consumers. Subports also calls out the fact or products. We should expect our mobile and read what shops are open, which have offers that its innovative format is a safe and highly phones to soon become as important in our retail and where everyone is having a good time. sustainable alternative to the traditional credit- experience, as they are for social networking. card swipe. Consumers order a product or Mobile devices are providing more than just service by texting its unique ‘subcode’ on their portals for additional information. How we mobile to subport, which will send confirmation purchase things could be one of the biggest by text and email. We will continue to see revolutions that these devices bring to consumers more of these innovative businesses taking in the next five years. Using mobile devices as a a greater share of the market from traditional way to purchase goods and services is expected retail models through using mobile technology. to exceed $300bn by 2013 (Juniper research). The total value of mobile payments (including Retailers are trying to tap into the familiarity that mobile remittance and payments made via Near consumers already have with web shopping in Field Communications) will exceed $587bn No.43 29 | 30 ANTENNAE
  16. 16. moving retail Left: Zara now has an online store for many of its European markets online mAjOR INVESTmENT IN ONLINE RETAIL COULd SIgNAL A mOVE TOWARdS VIRTUAL RETAIL Despite the fact that online retail has been a strong, and growing, presence in our lives for the last decade it still only accounts for around 10% of sales in the US and UK markets – so why is it not larger? We could soon see a change in this, as major retailers and brands start Brands have also realized that 50% of consumers to roll out more innovative and research products or services online, before going in store to make a purchase. With the ambitious online retail programs. understanding that online research drives sales in stores, brands and retailers have to look at how Changes in consumer purchasing habits and they present product information online. Some Brands have also realized that 50% decision-making will also play a part in moving retailers are doing that by making their online retail sales to the online world, as will the growing presence more interactive, adding audio and of consumers research products usage of mobile technology in retail. video elements to their sites to give consumers a more immersive and customized experience. or services online, before going The main attraction to online shopping is that it is totally flexible to the consumer, who can However, there is an alternative view to the in store to make a purchase shop where and when they want, from the ‘research-before-you-purchase’ process, in comfort of their own home. As consumers that customers will also purchase from online spend more time and money online, brands retailers after researching the product in store. have begun to question whether it is worth This process is particularly prevalent in consumer having a physical store presence. For many electronics, where consumers may try the consumers, a walk-in store is a physical product in store, get advice, then go home and expression of the brand and a vital component purchase the product online to be delivered of more high-end, experiential products. It is to their door. It is important for brands to often difficult to reproduce the luxurious aspects understand how consumers view their products, of brands in an online format, and so their and where they purchase them, in order to stores and its customer service are one of the correctly position their store presence as either a foundations to the success of the business. standard retail point or more as a showroom. No.43 31 | 32 ANTENNAE
  17. 17. Left: Cosmetic brands like Benefit use YouTube to showcase their products in tutorials benefitcosmetics Increasingly, retailers are looking to bring some aspects of the online world into their stores, particularly with social networking As a further sign of the growth in online to start to install technology in store that allows to look at what they sell, and explore consumer retail, there has been a rush by many major consumers to connect to each other. This gives perceptions of whether they are products brands to secure online payment service consumers instant feedback and advice from they feel more comfortable researching providers. For example, Visa recently bought some of their most trusted connections, as well online and buying in store, or vice versa. Cybersource, a California-based online as opening up the brand to a larger audience. Most importantly, we should start to see a payment and security outfit, for $1.3bn. variety of retail brands increasing their online Other payment service networks have, or will Diesel has installed such a system in some of presence and using various technologies to be, doing similar things in order to secure their stores in Spain, with a kiosk that allows link the online world with the physical. a future part of the online retail market. you to take pictures as you try on outfits. These can then be posted directly online to sites like Retailers and big brands have increasingly moved Facebook, where consumers can ask their into the online space to combat the likelihood network of friends for opinions on what style of a global decline in high street spending. This looks best. Youtube has also played a role in has been especially true in Europe and America, online retail, by providing a place for consumer’s where consumer confidence has waned due to give reviews and tips on all sorts of brands and to fears of an economic slowdown. Despite products. Although this is not necessarily a direct this, online fashion sales have been resilient, link to the online retail of that product / service, prompting the Spanish clothing retailer Zara to it does have an effect on consumer purchasing open a new online store for France, Spain, Italy, habits and choices. We can expect collaborations Portugal and the UK. We should expect other between retailers and online content providers clothing retailers across Europe and America in the near future, where online brands get a to start reducing the number of physical stores presence inside physical stores. In exchange they have and to increase their presence online. for this, retailers gain a greater presence online, reaching out to a wider audience, as well as Online retail is not just restricted to purchasing, aligning themselves with an innovative brand. however. Increasingly, retailers are looking to bring some aspects of the online world into Although a major player in the industry, online their stores, particularly with social networking. retail has yet to fulfill its potential and gain a The rise of mobile devices as a key portal to considerable share of the market from more social networks has prompted many retailers traditional formats. We should expect brands No.43 33 | 34 ANTENNAE
  18. 18. a cashless Left: Visa iPhone case that lets you pay without a credit card society Below: The iPhone continue Visa’s development in making payment easier. In 2007 they released Micro Tag key fobs CASh IS NO LONgER kINg In the next few years we will witness a revolution in the way we pay for things, with cash rapidly going out of fashion. Mike Bownman, Head of Policy and Markets at the Payment Council said, “Although cash won’t disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending”. the instantaneousness of purchasing online. on its Onepulse card, and by the end of this According to a survey by Barclays nearly two- year this will grow to four million, with a total of According to the Payments Council thirds of people have abandoned a queue in a twelve million contactless cards in circulation, banknotes and coins will be used for fewer store, as it was taking too long to get served. resulting in one in seven consumers in the than half of all transactions in five years In addition two minutes is the longest many UK having the ability to pay contactlessly. time. While overall spending has doubled British consumers are prepared to queue, since the turn of the century transactions down from five minutes just six years ago. If the roll-out is a success, then it is hoped that with cash have only risen by 7%. contactless technology will move into mobile At the beginning of this year Orange partnered phones. Antony Jenkins, Chief Executive of The consumer card payments market has with Barclaycard to launch a contactless Barclays’ global retail bank believes mobile reached near full penetration in western credit card. In theory these cards never phones are the future, and that people will European countries and is now standard need to leave the wallet, making them very be receiving, making and managing their in the wallets of many Europeans. convenient, and speeding up shopping. payments on mobile phones in the near future. However, in the US, this market has struggled to gain a foothold. But, smart As part of this system, users can set He even believes that consumers may soon be cards may now be getting a second chance themselves spending limits and for those able to hover their mobile over the price label of in the form of contactless technology. who are also Orange mobile phone users, an item in a shop, confirm their purchase and they will receive an SMS message when take it away without having to go to a checkout. they are approaching their limit. Retailers, along with banks, are looking to Visa is currently trialling mobile payments around make non-cash payments even easier and The two main contactless cards are Visa’s the world, exploring the services that work best. more attractive than using coins and notes. PayWave and Mastercard’s PayPass, with They are using the mobile to pay for transport in Consumers’ patience to queue in stores is Barclays the main bank signed up to them. Germany, fast food in Guatemala, and to receive becoming increasingly limited, in part due to Barclaycard already has one million customers coupons and discounts in North America. No.42 35 | 36 ANTENNAE
  19. 19. Right: Bottom right: Barclaycard OnePulse Mastercard Zoompass Oyster card is a In Europe currently six in ten transactions combined credit card and London travel involves cash, but almost 80% of these are for less than £10. card meaning that commuters need never queue to pay again Approximately £1 in every £2.50 is spent Below: on cards, and this is predicted to change Accessing accounts in the future may be to £2 in every £3 by 2015. done by biometrics (Visa Europe) More than 20,000 retailers now have incorporated contactless pay systems in store (Orange) There are currently 5 million contactless cards in use (Visa) In 1999 nine out of ten pints were bought with cash, today only four out of ten are bought with cash (The Guardian) Although it will be several years before the new provider or handset manufacturer in the West In the EU ¤1.68 trillion was spent technology will be introduced globally, with was to partner with, or purchase, a credit card more than 27 million point of sale locations company, they could leverage their brand In the next few years we on cards in 2008 and has been growing at 12% a year for the last five years in need of updating, an iPhone app already makes payment by phone possible. The Send equity, and utilise their retail relationships. will witness a revolution (European Central Bank) Money app, developed by PayPal, which has already been downloaded by one million Many may see mobile phones as the payment system of the future, but the solution maybe even in the way we pay for people, allows two owners of iPhones to simpler. In schools across the world children are things, with cash rapidly In 2009 59% of the 37 billion ‘bump’ their phones together in order to make paying for their school lunches by just pressing transactions were done with cash – a a connection and send money to each other. their finger onto a recognition panel. With children going out of fashion. sharp decline from the 73% in 2000 being brought up paying for things without cash, (Payments Council) Additionally, this month Visa are releasing or even cards, they are likely to demand similar an iPhone case that makes the handset systems throughout the retail chain. In the United compatible with contactless consoles, whilst Arab Emirates, Barclays have already introduced In the UK withdrawals from cash Mastercard have also introduced tags that a new cash machine that enables people to stick to phones. These, however, are purely use their fingerprints to withdraw money, and at machines fell by £1.6bn compared interim solutions, as from next year all of RetailTech 2010 Coca-Cola presented a vending with a year ago, a fall of 3.2% (Payments Nokia’s smartphones will incorporate NFC machine that employs a biometric system that Council) (Near Field Communication) chips, with many scans your finger vein to see who you are, expecting the other large brands to follow. NFC allowing consumers to ‘pay’ with their finger. is expected to become ubiquitous within the Last year 27% of US adults paid their next five years, which will give new hope in In the next few years the way we pay for goods determining the future of the mobile wallet. is going to change rapidly. It is essential that bills online (Packaged Facts retailers, banks, and consumer brands find the Yet the West is behind the rest of the world – in best solutions that make the shopping process Africa, six million people are already paying for as enjoyable and easy as possible while ensuring 68% of American adults have a debit goods on their mobiles, and mobile payment that the system is secure and trusted by all. / credit card in their wallet (Packaged is quite advanced in East Asia. The Japanese A new system may even offer consumers the Facts) call it ‘osaifu keitai’ (cellphone wallet). In Japan ability to keep better track of their spending NTT DoCoMo took control of the mobile-wallet helping them manage their budgets. market by buying a bank. If a mobile services No.43 37 | 38 ANTENNAE
  20. 20. Customized. Bespoke. Your Antennae. NewEdge is a dynamic innovation consultancy The world is constantly changing, how with a world-class team of strategists, trend will it impact your brand and business? forecasters, researchers and designers. We bring a fresh approach to growing business and brands For a tailored report specifically through upstream and downstream innovation. for your business email us at: antennae@new-edge-com Our Antennae Trends team are continually researching emerging design trends, ideas and Or call Richard on: creative thinking – from global product innovation +44 (0)208 439 8404 through to changing consumer lifestyles. These trends indicate how markets are being shaped in the future, giving us the ability to anticipate how consumers are likely to respond to future solutions. If you would like to know more about our innovation consultancy, our trends research, or if you would like to comment on anything you have read in this issue, please email The Antennae team: No.43 39 | 40 ANTENNAE
  21. 21. N 43 ANTENNAE o TREND REPORT London Richmond Brewery Stores 18 Petersham Road Richmond London TW10 6UW UK T +44 (0)20 8439 8400 Richland 1350 Spaulding Ave Richland WA 99352 USA T +1 (509) 737 9900 W E Copyright © 2010 NewEdge Consulting Limited The entire content of this document, both physically and intellectually, remains the property of NewEdge Consulting Limited. Please apply to us for written permission required to copy, or amend, in full or part. Opinions, conclusions, and other information contained within are not necessarily expressed by NewEdge Consulting Limited. No.43 42 | 42 ANTENNAE