This deck was presented at Cosmoprof North America in Las Vegas on July 29, 2018. By 2020, today's teens will be the largest group of shoppers worldwide, accounting for 40% of the U.S., Europe and BRIC shopper base. The needs, behaviors and expectations of this group will influence the future of mainstream retail. Global design consultancy FITCH will share proprietary insights about Gen Z - the most culturally diverse, digitally connected generation to date and retail's biggest challenge yet. Learn what shopping attitudes, motivations and behaviors of Gen Z make them so different from other generational cohorts. Discover how retailers and brands engage with this new kind of shopper who pays less attention but has a sharper and hyper-informed eye. Explore the distinct strategies and tactics retailers can employ to attract Gen Z with seamless and highly commercial experiences.
7. THE ONE CRITICAL QUESTION WE
GET ASKED BY BRANDS AND
RETAILERS:
HOW DO WE BECOME RELEVANT TO
THE NEXT GENERATION?
8. GENERATIONS 101
GEN Z AND THE GREATEST
GENERATION ARE
STRIKINGLY SIMILAR
YET, MANY PREDICT THAT
GENERATION Z WILL BE
THE “FINAL GENERATION”
9. BY 2020 GENERATION Z WILL MAKE
UP 25% OF THE U.S. POPULATION
IMPORTANT STATS & FACTS
$44 BILLION IN PURCHASING POWER
GEN Z IS NOT SIMPLY AN EXTENSION
OF GEN Y
65. WELL, IT SHOULD BE NO SURPRISE
THAT THEY'RE HAPPY SHOPPING
ONLINE…
66. THERE ARE DISTINCT DIFFERENCES IN
HOW THE GENERATIONS SHOP
Gen Z expects retailers to be agile and flexible as
seeing something new to broadcast and share is
table stakes!
67. taking these experiences we create at retail, and making
them more adaptable, more responsive and more nimble
AGILE is all about
Trey Ratcliffe
68. that Generations Y & Z are underwhelmed with old school retail
(cue sudden rush of underutilized selfie walls)
We’ve known for a while…
69. Because they live their lives at an increasingly frenetic pace,
driven by nothing short of a new definition of time - mobile time
The biggest reason for AGILE for Z?
70. for every year physical retail takes to do something new,
mobile has already reinvented itself 7 times over (at the very
least)
Which is like dog years vs human years
78. CONSUMERS ARE RESPONDING TO BRANDS BORN IN DIGITAL
Try Before You Buy
Evolved Product
Direct to Consumer
Customized Service
Aligned Personality
Category Expert
Casper
Raden Luggage BirchBox AmazonKindle
WarbyParker Reformation
79. Aimed at Reducing Friction, Addressing
Pain Points within Exploring & Locating
80. The Past… Exploring Locating
Dreaming
No specific
purchase
intent
Achieving
Post-Purchase
using product or
service
Specificproduct or servicePurchase intent in
thecategory
81. DRIVING TRADITIONAL RETAILERS INTO EXTINCTION
Fortune 500 companies in 1988 vs2016:
88% are gone.
Source: World Economic Forum
83. THAT’S NOT TO SAY PHYSICAL = irrelevant
Try Before You Buy
Evolved Product
Direct to Consumer
Customized Service
Aligned Personality
Category Expert
Casper
Birch Box Amazon Kindle
Warby Parker Reformation
Raden Luggage
86. The now andnext
Exploring
Purchase intent
in the category
Locating
Specific product
or service
Dreaming
no specific
purchase intent
Achieving
Post-Purchaseusing
product or service
87. In almost every category
we are seeing the
emergence of new and
progressive concepts.
"I don't think retail is dead.
Mediocre retail experiences
are dead.”
90. PLAYGROUNDS – ULTIMATE “TRY BEFORE YOU BUY”
• Familiar, mimic real world use
• Play and experimenting is actively encouraged
• Literally forget you are in a store
Sonos, Soho, NYC
Lush, Oxford St, London Pirch, Soho. NYC
Hunter,Tokyo
“selling by not selling –
selling by experiencing”
91. 94
What if...
…we had stores that were
100% focused on play, test,
experiment & share – where
engagement trumps
transaction?
92. CAMPFIRES – SPENDING QUALITY TIME WITH THE BRAND
• Knowing customers and what unites them
• Creating spaces people are “drawn to”
• A place to share stories – just like a real campfire
Rapha CCSPT, Spitalfields, London Apple,San Francisco
“retail = community”
93. 96
What if...
…our stores were focused
solely on creating
communities based on a
‘brand love movement’?
94. TAILORS – ONE SIZE DOESN’T FIT ALL
• High levels of service, powered by digital AND humans
• Customizable, unique, memorable
• Feels one-on-one, even if it caters to the masses
MCD Next, Tokyo, Japan
Nike 45Grand, Soho, New York Apple,San FranciscoCreyate, Mumbai, India
“MEtail, not retail”
95. 98
What if...
…our customers all had an in-
store personal coach who was
incentivized to help them
achieve dreams and visions,
not just purchase one more
product?
96. COLLECTIONS – ALIGNING PRODUCTS TO NEEDS
• Highly rotational to maintain energy
• They are retail, not museums
• Fun to shop
...AND OTHER STORIES LONDON LULULEMON NYC
“thoughtful selection
without permanence”
97. 100
What if...
…our stores behaved like an
incredible beauty blog rather
than a cosmetics shop where
there was also a heightened
anticipation of what’s next?
98. CO-OPS – SHIFTING CONTROL FROM US TO THEM
• Focuses on membership and new communities
• Nimble and responsive to customers’ wants
• Takes brand advocacy to a new level
SoulcycleAIRBNB - experiences SOUL CYCLE
“listening is the new
selling”
99. 102
What if...
…our stores were places
where our customers could
share their expertise and get
rewarded for it?