This Slideshare focuses on some of the key consumer trends in the market and the way customer-centric retailers can adapt to them. It is a compilation of presentations Alain Thys gave to groups of retailers in Vilnius (Nov 2013) and Tallinn (March 2014).

1. Key Consumer Trends and how they affect retail
FUTURELAB

2. a more customer-friendly place
On a mission to make the world
FUTURELAB
Alain Thys: ath@futurelab.net
Some credentials

3. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
FUTURELAB

4. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
FUTURELAB

5. (cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
FUTURELAB

6. Demographics
Source: Eurostat, 2011
1991
2011
2021
WomenMen
Demographic Pyramid
EU-27
(cc) ThomasSoerenes
Shoppers are getting older
FUTURELAB

7. Demographics
± 1/3 of the population
> 80% of the wealth
> 50 yrs old
Image: (cc) Chris_Parfitt
Shoppers are getting older
43.4
46.1
48
49.6
1999 2004 2008 2013
Sources: trendwatching.com, 2013
Cyril Huze Post - 2013
Average age of Harley Davidson driver.
FUTURELAB

8. Demographics
Shoppers are getting more multi-cultural
Source: Daily Mail Online, August 2013
Immigration numbers by country, 2012
(cc)epSos.de
FUTURELAB

9. Shoppers live in ever smaller households
(cc) arileu
Aging
Divorce
Choice
Career
Demographics
FUTURELAB

10. Are you really taking their needs seriously?
Influence on retail
Store format – Merchandise selection – Staff behaviour & know how - …
(cc) augapfel© Galina Barskaya (c)Getty Images
Ageing Immigration Non-traditional households
FUTURELAB

11. Catering to a specific age group
Remarkable practice
FUTURELAB

12. Catering to different cultural values
Remarkable practice
Korea: Lavendel
Halal, Rice-based Skincare
Metropolitan restaurants
Halal food at McDonald’s
FUTURELAB

13. Catering to singles
Remarkable practice
Slunch Factory (Korea)
Single household lunch box
Supermarket dating
Help singles meet
FUTURELAB

14. (cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
FUTURELAB

15. 98.1
90
80.5
64
35.9
3.7
16-24 25-34 35-44 45-54 55-64 65-74
Internet access by age group
Lithuania, Q1-2012
The internet ―has‖ changed the way we buy
Digital Reality
Source: Statistics Lithuania, August 2012
Holidays
Cars Books
What isn’t in Lithuania today, will come.
Insurances
FUTURELAB

16. In-store smartphone usage per category
US, 2013
Mobile ―is‖ part of the shopping experience
Digital Reality
Source: Google Shopper Marketing Council, August 2013
―On an average day, more
than 100,000 unique
customers access
Nordstrom on a mobile
device, with nearly twice that
amount during the holidays,‖
In 2012, sales from a mobile
device accounted for over
20%—more than $260
million—of the company’s
total direct (digital) sales.
Compared to less than 4%
in 2010.‖
Source: Internet retailer, February 2013
FUTURELAB

17. 36
43
53
60
Lithuania
2011
Lithuania
2012
Denmark UK
Sources: The Baltic Course, May 2013 - OECD, 2012
Ecommerce is part of life for every retailer
Digital Reality
% of population purchasing online
42% of UK electronic goods buyers
will look at products in store before
buying online from a different retailer.
Source: The Consumer Decision Journey, Microsoft, 2013
Image:(cc)CliveDarra
FUTURELAB

18. Digital Transparency Rules
Digital Reality
Quality Price
Coming soon to Europe:
FUTURELAB

19. Are you ready for the omnichannel reality?
Influence on retail
International competitionAlways on transparency Showrooming
Image: (cc) Clive Darra
FUTURELAB

20. Make shopping easy
Remarkable practices
Panty Subscription Service (CA)
Fastest delivery
From store to house in minutes (UK)
…
FUTURELAB

21. Is it a store or a showroom?
Remarkable practices
Apple stores John Lewis Exeter
About 60% of our customers buy both
online and in shops so the approach is
to make it absolutely seamless for them
to move from one to the other.
FUTURELAB

22. Hybrid Shopping
Remarkable practices
FUTURELAB

23. An unusual approach
Remarkable practices
Brisbane, Australia, 2013
FUTURELAB

24. (cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
FUTURELAB

25. Scarcity
Mindset
Time Money
Decreasing disposable income
More planned buying
Growth in private label
Shrinking share of wallet for everyone
Life gets busier
Time scarcity = more efficient shopping
Desire for work-life balance = shopping is a chore
Desire for one-stop service & product shopping
FUTURELAB

26. Indulgence
Mindset
Entertain meMake it beautiful (Design matters)
FUTURELAB

27. Conscience (& scepticism)
Mindset
Health World
84% percent of millenials (18-32 yrs) in
Europe, Asia and US believe it is their
generation’s duty to change the world
Health and wellness is becoming a priority
but consumers find it difficult to decode
product labeling and nutritional claims.
The cat is out of the bag
Out of 5,296 products, 95% made at least one false claim
Source: Terrachoice, 2012
Source: Bord Bia’s 2010 Periscope study Source: The Guardian, April 2013
FUTURELAB

28. Are you ready for changing consumer mindset?
Influence on retail
Health and environmentEfficiency with time & money Design and entertainment
Image: (cc) PhotoAtelier Image: (c) Mike Powell
FUTURELAB

29. 19/03/2014 29.
Tesco Homeplus Korea (by now a ―classic‖)
Remarkable practices
FUTURELAB

30. Disarming detractors
No one can do this on his own
Brand Utility Examples
GS 25 Virtual fridge
FUTURELAB
Korean supermarket let’s
consumers store 2-for-1
promotions in a ―virtual
refrigorator‖

31. Italian food shopping … redefined
Remarkable practices
FUTURELAB

32. Disarming detractors
No one can do this on his own
Remarkable practices
It doesn’t have to be so elaborate
HEB Supermarkets (Texs)
11% growth in men’s care products within 1 year
FUTURELAB

33. Disarming detractors
No one can do this on his own
Remarkable practices
Just be honest
FUTURELAB

34. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
FUTURELAB

35. 19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relevant experiences
• Focus technology on the customer
FUTURELAB

36. Disarming detractors
No one can do this on his own
Secure the basics
Yesterday, mistakes could be forgiven … no more.
FUTURELAB

37. Disarming detractors
No one can do this on his own
Secure the basics
Digital Basics
Fast website
Easy shopping
Mobile availability
Online security
Quality home delivery
Variety in payment options
Social integration
…
FUTURELAB

38. Disarming detractors
No one can do this on his own
Secure the basics
Retail basics
Opening hours - Retail standards
Staffing - Merchandise availability - Store design
(cc)JasonRosenberg
FUTURELAB

39. Secure the basics
Tactically responding to customer queries
What is the % of helpdesk questions that “never get answered”
(Insites Consulting, 2010 – n=500 senior marketers in Benelux, France, Germany, UK)
11-28%depending on the channel
FUTURELAB

40. Disarming detractors
No one can do this on his own
Secure the basics
Structurally acting on customer feedback
90%
Collect
Customer
Feedback
Alert Staff
to Findings
50%
Make
decisions
using
insights
30%
Deploy
improve
10%
Inform
customers
of change
5%
Source:BupaInternational,2009
DEBATE
WHERE IS YOUR
BUSINESS?
FUTURELAB

41. Remarkable practice: Applying common sense to basics can take you far
Metro Bank
There’s more
Leave the bank with
your card
Have a coffee next
door if you need to
wait (with alerts)
Friendly & smiling
recruitment policy
FUTURELAB

42. Disarming detractors
No one can do this on his own
Remarkable practice: Applying common sense to basics can take you far
Own experiences
Minimum Standards Brilliant Basics
FUTURELAB

43. 19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relevant experiences
• Focus technology on the customer
FUTURELAB

44. Complete & relevant experiences
To avoid misunderstandings
“Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go WOOOOOWW!!”
When I talk about experiences I’m not talking about.
FUTURELAB

45. Complete & relevant experiences
To avoid misunderstandings
I am talking about “really connecting” with your customers
FUTURELAB

46. The biggest CX challenge
Most companies
wear blinders on
customer experience
FUTURELAB
(cc) Emilio Labrador

47. 47
Travel company
Which are the customer steps when going on a holiday
FUTURELAB
1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories

48. 48
Ask yourself
Which steps in the journey do travelco’s manage?
FUTURELAB
1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories

49. 49.
Remarkable practice
CEE Mall: Different customers, different experiences
Planning Departure Journey Arrival Decompression Exit Journey Remember Returns
Shop
BuyDwell
The Shoppers Journey

50. 19/03/2014 50.
Deliver relevant experiences
Three steps
1. Map your customer’s TRUE journey (think ―beyond‖ your store)
2. Identify key choice and loyalty drivers for each shopper archetype you target
3. Develop experiences which match these drivers at EVERY journey step
FUTURELAB

51. 19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relevant experiences
• Focus technology on the customer
FUTURELAB

52. Embrace technology
Consider technology
• To enhance the experience
• To become more ―lean‖
• To challenge conventions
FUTURELAB

53. Embrace technology
Look beyond the apps • Customer vs. Shopping cart analytics
Customer contacts
Support functions
Management
CEO
Customer Reality
Seamless Experience Single view of the customer
FUTURELAB

54. Embrace technology
Look beyond the apps
Customer vs. Shopping cart analytics
Data Discovery
Predictive modeling
Customer
Intelligence
Voice of
customer
Voice of
business
Voice of
employee
Voice of
market
FUTURELAB

55. Different customers, different styles
Selecting a handset Managing Services
Simple enough but not too simple
Tariffs Billing
Remarkable practice
Use technology to offer differentiated/relevant experiences
FUTURELAB

56. Remarkable thought
Point of inspiration: Sharing Data?
SVP Digital Business, L’Oréal Group
“Brands and retailers need to let go of
their antagonistic negotiation model
and instead focus on working together
to maximise retail floor sales and
profit. Both stand to gain.”
Experiment:
Joint initiative L’Oréal-Carrefour make-up kiosk
FUTURELAB

57. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
FUTURELAB

58. A few words on payment
I Thought Long and Hard
(cc)BrianHillegas

59. A few words on payment
And it was tempting to go ―visionary‖
Disney electronic wristbandMobile (NFC) wallets Implants (Barcelona)
FUTURELAB

60. A few words on payment
And it was tempting to go ―visionary‖
FUTURELAB
Points on Kindle, tomorrow??
Alternative currency Pay with sweat
More airmiles than dollars?
1/3 of coffees purchased
It’s money
Jim, but not as we
know it

61. A few words on payment
But pragmatism rules
Offer every payment option Lithuanian customers desire.
Belgium
1. Credit card
2. Online bank transfer
Germany
1. Invoice & pay afterwards (58%)
2. Credit Cards (34%)
3. Variety of others
United Kingdom
1. Credit card (40%)
2. Debit card (35%)
3. Paypal (21%)ONLINE
(cc)FrankBlais
FUTURELAB

62. Two questions to ask yourself
How can I simplify?
FUTURELAB

63. Two questions to ask yourself
Who owns the customer?
―other‖ locations ??
FUTURELAB

64. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
• Demographics
• Technology
• Mindset
• Ensure the basics
• Complete & relevant experiences
• Focus technology on the customer
• Offer what your customers seek
• Always try to simplify
• Make sure you keep owning your customers
FUTURELAB

65. FUTURELAB
E: ath@futurelab.net