Shopping in 2020 Major trends in cross-channel retailing from Shopping2020 Field Trip U.S.

Axel Groothuis, September 2013

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About Shopping 2020

§  How will consumers shop online in 2020 and what actions

should be taken at national, industry and at company level

to embrace this?

18 Work groups, 3 tracks •  Future trends •  Special themes •  Customer Journey

And many more, see www.shopping2020.nl

Shopping Today congress: 26 September in Almere

USA trip “Shopping 2020”

Mobile commerce

•  Mobile commerce (smartphones plus tablets) almost exceeds desktop commerce -  20.000 cars / week sold via Ebay via

smartphones -  53% of in store buying stopped because of

phone (NL 9%) •  Mobile payments current threshold, but will be

overcome soon •  Native apps brings the best customer experience

but no SEO contribution •  Compression: Know your customer, personalize

offering

“Whether Google will do it or not, it will happen”

Location based services

•  “Why queuing to pay?” [Apple] •  “Why start communicating when leaving” •  Personalized campaigns based on customers

preferences and location •  People get delivered at the GeoCode instead of

their address

“Online and Offline are gone”

Merge of commerce and entertainment

•  Inspiration based commerce fasted growing segment [Ebay]

•  Google can show comparable products based on analyzing and comparing pictures

•  Homepages will evolve to digital magazines

“Publishing is at the heart of it”

“Do not ever ever ever give your data to Amazon” EX-

Shopping behavior

•  “Knowledge about shopping behavior - on an individual basis – is the sustainable asset” [Ebay]

•  Never invest in Amazon, judge cooperation only on a short term P&L effect

•  “Do not be afraid of a total “Amazonation” as the ultimate power remains with the consumer” [Ebay]

Big data

•  Current investment in data much bigger than the current use

•  Find the meaning of your data -  Look at the context of your data -  Look at individual cases

•  “Climb the hill step by step” -  Step by step approach with a clear ROI per step

•  Getting a 360 degree view of a customer •  Visualize data to increase impact •  Invest in people with statistical / data analysis

skills

“Do not look at your database as a database”

Customization

•  “Customization may accelerate disintermediation of retail” [ex-Amazon]

•  Customization will increase importance of tablets in store [Apple]

•  Think of customization for retailers [Apple] •  3D-printing:

-  Currently small, but figures are promising -  Will start with parts and handcrafted items like

jewelry -  Printers probably at manufacturer or retailer -  Will lead to tremendous power shifts when it really

gets off with a broader scopex

“3D printing is a disruptive change”

Vertical integration

•  The advantages of the vertical supply chain -  Higher margins which can be used for

innovation -  Shorter time to market -  Ability to make ‘real decisions on a quarterly

basis’ -  Best equipped for customization and

personalization

“Vertical integrated supply chains may become the winner” EX-

(Dis)intermediation

•  Retail = match making + distribution -  Google search -  Google shopping -  Google insight in local stock -  Google express -  Google wallet -  Google glass -  …

•  Current pilot of Paypal in the Valley •  “Retailers are lacking behind on selection and

convenience” [Ebay] •  “One click buy” / “One comment buy”

“If I was a brand, I would sell to my consumers wherever I could”

7x24 connected, wearables

Culture & organization

! •  Facebook did not have a mobile proposition in 2012. -  Now it’s 50% of their traffic.

•  Failure must be accepted to allow employees to innovate -  Apple tries 1.000 times before it is perfect. -  Google stopped 70 public projects in the last

two years •  Bringing the “right” message to the “right”

customer at the “right” time across all channels requires intensive organizational alignment

“What holds us back is organizational and cultural thresholds, not technology”

The war for talent…

Who will win…?

In the end…the consumer will win!

Axel Groothuis, partner for Eurogroup Consulting Netherlands Learn more about Axel For more Insights, check out crosschannel.eurogroup.nl