Derek Hughes
180 Degrees, Retail Experts
Global Retail Innovations
COMPANY LOGO
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The Changing Consumer and
Retail Landscape
3
Think About This…
ComScore
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And the Biggest Disruptor….
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• More than half of people start their search for online shopping on Amazon now, while only 26%
use search engines like Google as the starting point.
Amazon Gaining Share of Search
Business Insider
38%
48%
52%55%
42%
25%
0% 0%
12%
4% 4% 4%4%
8%
4%
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016
Shopping Search Trends
Amazon Google Retailer Website Other Ebay
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• Deal valued at $13.7 billion
• Amazon:
• How will Amazon leverage Whole Foods bricks and mortar network?
• Whole Foods:
• Significant overlap between the Amazon Prime customer and the Whole Foods core consumer
• Provides greater leverage and buying power
• Serious impact on retail for good:
• Affecting more than just supermarkets—more deals for brick and mortar ahead
• Omnichannel retail is here to stay
• Supermarkets will be under great pressure to reinvent
• What’s Next??
Amazon Buys Whole Foods!
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Openings Are Concentrated: Value is a Driver
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17
19
20
24
30
52
59
60
60
70
90
100
100
100
111
400
650
1,290
0 200 400 600 800 1000 1200 1400
Forever 21 (Riley Rose)
Nordstrom
Macy's Backstage
Bonobos
Costco
Target
Dick's Sporting Goods
Walmart
H&M
Hobby Lobby
Sephora
Ross Stores
Five Below
Ulta
Lidl
TJX
Aldi
Dollar Tree
Dollar General
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Retailers are repositioning stores to be the center of customer experience
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“It’s not about online and offline anymore, it’s digical”
– Scott Galloway, NYU Stern
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Pure-play ecommerce is going away – open stores or
go out of business…
Brick-and-mortar retailers also need to be excellent at
digital
Who has the advantage?
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Unify customer and product data across all outlets to
achieve a 360 degree view of the customer
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The war is before, in and after the store.
Stores are here to stay. But they must be different
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Retailing in a Horizontal World
Trust based on status and power
Trust based on emotions and benevolence
Top down Bottom up
Assertive marketing of signs
Horizontal marketing of proofs
Become a love brand Prove clients how much you love them
YESTERDAY NOW
The new horizontal world is…
…driven by emotionalconnections
…organized by communities
✓ Communities
✓ Customization
✓ Co-creation
✓ Testimonial based trust
✓ Transparency
✓ Hyper-local
✓ Etc.
But how do this when you are NOT one of those"horizontal natives" ?
”“ “ ”
CUSTOMIZATION COMMUNITIES
The world of tomorrow will be led by emotions
and organized by communities
The best proof thatthe brand adapts
itself to the client –not the reverse
”“PEOPLE
Trust your people first if you expect
clients to trust them... And you
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A global Ebeltoft Group report
WHY
• Understand how the "horizontalization" of the world and customer impacts retail models
• Explore how retail brands can adapt to this new reality
HOW
• international benchmarks of relevant initiatives provided by our local members
• global customer research/ 8,300 online interviews in 12 countries
• Ebeltoft’s worldwide expertise, with insights from 16 countries
R E T A I L I N G I N A H O R I Z O N T A L W O R L D :B R A N D C O N T E N T A N D C US T O M E R R E L A T I O N S
A P R I L 2 0 1 7
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• INSERT VISUAL OF THE BOOK ?
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Beyond our horizontal world and new relations with customers,4 Key Factors Driving Retail Innovation
Smart
ShoppingInteraction Emotional Retail Responsibility
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Smart Shopping• Simplicity
• On demand
21Eatsa
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Pick up order – no lines, no cashiers, emailed receipts
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• Fresh Eats Market—Kroger
• 7-11 Korea
• Moby Mart (China)
• DGX
Small Store
Moby Mart, China
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Interaction• Shop & socialize
• Expertise
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Emotional Retail • Discovery
• Passion
Strategy I Internationalisation I Cross Channel I Innovation I Consumer Insights
Electro Mart, South Korea
STARBUCKS ROASTERY: Re-established the Connection to Coffee
in a Willy Wonka-Like Environment
28PK Market: South Korea
29PK Market
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Responsibility• Ethical, honest
• Purpose
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Purity Sells…
33Reformation, U.S.
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The Need for Acceleration
Why McMillan Doolittle?We are objective outsiders who are passionate about retailing
– both as experienced retailers in our partner ranks as well as
over twenty years of consulting experience.
STRATEGY 1st
CONSUMER-CENTRIC
CLIENT FOCUSED, PARTNER DRIVEN
COMMITED TO DEVELOPING INNOVATIVE SOLUTIONS
GROUNDED IN RETAIL EXPERIENCE & THOUGHT LEADERSHIP
It’s clear that retail is undergoing
its biggest transformation in
history ….
The rules of retail are changing
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Utilize Dynamic pricing, linked to all channels
Provide hyper-localized assortments exactly right for the local consumer
Incorporate food/drink experience to encourage lingering and interaction
• DYNAMIC PRICING HOLISTIC CUSTOMER VIEW
HYPERLOCALIZED ASSORTMENT
REASONS TO LINGER
Seamlessly use technology to ease shopping/ checkout, etc…
• SEAMLESS USE OF TECHNOLOGY
KEY TACTICS EMPLOYED BY OMNICHANNEL LEADERS
Merge on-line off-line information—online data, off-line personal interaction
The Ultimate Omnichannel Retailer Will…
Steve Jobs Quote…Deciding what not to do is as important as deciding what to do.
Steve Jobs
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“One area where I think we
are especially distinctive
is failure. I believe we are
the best place in the
world to fail (we have
plenty of practice!), and
failure and invention are
inseparable twins. To
invent you have to
experiment
Jeff Bezos on Invention
(and Failure)
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A full transformation:
✓ BE SOCIAL✓ TAKE A STAND
✓ AUTHENTICALLY ENGAGE✓ KNOW YOUR CUSTOMER
✓ KEEP IT FRESH
Thank You!!
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