Future of Retail. 5 Disruptors. 12 Shifts. 6 Experience Moments of Truth. 8 Capabilities. 5 Opportunities for Retailers.

1. Image Source: nocamels.com
REIMAGINING RETAIL@ j o h n b a t i s t i c h

2. 5 D I S R U P T O R S
1 2 R E TA I L S H I F T S
6 C U S T O M E R E X P E R I E N C E M O M E N T S
8 C A P A B I L I T I E S
5 O P P O R T U N I T I E S

3. DISRUPTORS5

4. DEMOGRAPHIC POWER EAST
SUSTAINABILITY GEN/ROBO/NANOClimate change
Resource shortagesrising costs
Accessto clean water
Resource nationalism
Carbon economy
Increased regulation
Solar/geo-thermal/nuclear green technology
Packaging/waste/carbon taxes
Eco-cynicism/hopelessness?
Oil free economy
Community shared value
1 billion new mouths
Yuan becomesbenchmark currency
90% of the world’s PhDs
Alibaba, Biadu & Sohu
Market expansion
Asset ownership
Product sourcing
Servicesoutsourcing
Asian values& aesthetics
Resource competition
Inbound tourism growth
Next generation genomics(health/food)
Synthetic biology
Surgical, prosthetics& exoskeleton
Merging health care with insurance & finance
Wearable/implanted sensors
Advanced robotics(sensing/AI)
Robotic security& care
Robotic & drone warfare
Advanced materials(carbon/graphene)
Self healing, self cleaning
Energy storageAdapted from the work of Richard Watson
Sydney & Melbourne the size of London today
Higher densities
Increasing life-spans. Live to 150
Declining fertility
Cotton wool kids. Digitallyconsumed youth
Rise in SINKs & DINKs
Increased immigration
Higher ethnicity
Urban-rural polarisation
Smaller households

5. CONNECTIVITY
M o b i l e m i c r o m o m e n t s n e a r m e
A u t o m a t i o n o f k n o w l e d g e w o r k
C l o u d t e c h n o l o g y
2 B i l l i o n s m a r t p h o n e s g r o w i n g + 3 0 %
1 0 b i l l i o n s m a r t c o m m u n i c a t o r s
5 b i l l i o n a c t i v e s o c i a l n e t w o r k u s e r s
L o c a t i o n - b a s e d s e r v i c e s
S e a m l e s s m o b i l e p a y m e n t s
I n c r e a s i n g c o l l a b o r a t i o n
W e a r a b l e t e c h n o l o g y
E v e r y t h i n g p e r s o n a l i s e d
A c c e l e r a t i o n o f c o n n e c t e d e v e r y t h i n g ( 1 % )
H u n g e r f o r r e a l s h a r e d e x p e r i e n c e s
C y b e r t h r e a t s & P r i v a c y r i s k s
Adapted from the work of Richard Watson

6. RETAIL SHIFTS12

7. “THE FUTURE IS HERE.
IT’S JUST NOT WIDELY DISTRIBUTED YET”
W I LLI A M G I B SO N

8. warbyparker.com
W A R B YPA R K E R .C O M R A PH A .C O M
B O NO B O S.C O M NE W LO O K & TA R G E T
ONE SEAMLESS EXPERIENCE

9. “PURE PLAY ONLINE RETAIL IS GOING AWAY. THEY’LL
OPEN STORES OR GO OUT OF BUSINESS. RETAILERS
WILL BE GREAT AT DIGITAL BUSINESS OR THEY WILL
GO AWAY.”
PR O FE SSO R SC O T T G A LLO W AY NYU & L2 FO U NDE R 9

10. B O NDS
B LA C K MO R E S SA MSU NG
NE ST LEQ U A NT I U M+ DATA R E PU B LI C +
DIRECT CUSTOMER
RELATIONSHIP

11. “SPEAKING ‘CUSTOMER’, USES A DIFFERENT SET OF METRICS TO
MEASURE SUCCESS, WHICH REVOLVE AROUND THE SHOPPER, FOR
EXAMPLE, SALES PER CUSTOMER AND PROFITS PER CUSTOMER.
WHAT IT INVOLVES IS A WHOLE ORGANISATION LEARNING THAT
DIFFERENT LANGUAGE, IT INVOLVES A VERY DIFFERENT SET OF
INVESTMENT PRIORITIES.”
SIR CHARLIE MAYFIEL CHAIRMAN JOHN LEWIS PARTNERSHIP

12. NI K E A MA Z O N.C O M
McDO NA LDSMA K E R B O T
PERSONALISED CUSTOMISED

13. CONTEXTUAL NEAR ME
CONTENT
JO H N LE W I S
MA C YSTA R G E T

14. U B E R I NSTA G R A M
ST R I PE DE LI VE R O O
ONE CLICK ON-DEMAND
PURCHASE

15. B O DY SH O P
C & A
R O O MYS
REAL TIME SOCIAL
VM/CONTENT

16. CULTIVATING COMMUNITY
NI K E PE LE T O N
W A LG R E E NST O M’ S

17. EASY FAST FULFILMENT
A MA Z O N.C O MJO H N LE W I S

18. SE PH O R A B U R B E R R Y
McDO NA LDSR E B E C C A MI NK O FF
SMART STORES/FULL
INVENTORY

19. PURPOSE, PLACE & PRODUCT
NI K EA PPLE
E ATA LY T H E G R O U NDS

20. Don’t Remember
AUTHENTIC STORYTAILING

21. 21
PASSIONATE INFORMED
EMPOWERED SERVICE
A PPLE NO R DST R O M
MA C YSSE PH O R A

22. “OVER THE NEXT 30 YEARS, THERE STILL WILL BE
CUSTOMERS WHO DESIRE FRESH NEW PRODUCT. WHAT
THAT PRODUCT IS, HOW WE SATISFY THE CUSTOMER,
THAT'S OPEN. USING YOUR BEST JUDGEMENT TO
SERVE YOUR CUSTOMERS WILL NEVER CHANGE“
B LA K E NO R DST R O M C E O NO R ST R O M

23. Image Source: gamesgate.com
EXPERIENCE MOMENTS
6

24. N E W S H O P P E R J O U R N E Y
ACQUIR
E
U SE &
SHAR
E
DISC OVE R
FIND
BU Y
RELATIONSHIP
(IF YOUWANT IT!)
N O N L I N E A R , L O N G E R D I S C O V E R Y , E A S I E R S E A R C H . M O R E C H A N N E L S . M O R E I N F O R M E D . F U L F I L M E N T
O P T I O N S . M I C R O M O B I L E M O M E N T S N E A R M E .

25. D I G I T A L I N F L U E N C E S S T O R E
D I G I T A L C H A N N E L S A R E N O W I N F L U E N C I N G M O R E T H A N 6 0 % O F S T O R E S A L E S .

26. D I G I T A L D R I V E S S T O R E C O N V E R S I O N
S H O P P E R S W H O E N G A G E D I G I T A L L L Y B E F O R E & D U R I N G T H E S T O R E V I S I T A R E O F H I G H E R V A L U E .

27. CAPABILITIES
8

28. C U R I O S I T Y & A G I L I T Y
D A TA A N A LY T I C S & P R O F I L I N G
E N G I N E E R I N G / C O D I N G
E X P E R I E N C E D E S I G N
U N D E R S TA N D I N G C O N T E X T / C O N V E R S A T I O N S
P E R S O N A L I S I N G C O N T E N T
C O L L A B O R A T I O N
E M P O W E R E D S E R V I C E

29. OPPORTUNITIES5

30. PURPOSE
PRODUCT
PLACE
PEOPLE
CONNECTIVITY

31. C U S T O M E R S O U T S I D E
P A T H T O P U R C H A S E
M A S S M A R K E T
O M N I C H A N N E L
C O M M S & M E D I A
D I G I T A L H Y P E
I N T E R N A L I N N O V A T I O N
L E G A C Y S Y S T E M S
K N O W L E D G E
C U S T O M E R S I N S I D E
S H O P P E R J O U R N E Y
P E R S O N A L I S E D
O N E S E A M L E S S E X P E R I E N C E
C O N T E N T & C O N T E X T
U T I L I T Y
E X T E R N A L P A R T N E R S H I P S
I N T E G R A T E D T E C H S T A C K
A G I L I T Y & C U R I O U S I T Y
R E T A I L F U T U R E S

32. 1.DEVELOP AN ENABLING INTEGRATED TECH STACK
2.HARNESS FULL VIEW INVENTORY TO FULFIL EVERY
SALE
3.EMPOWER SERVICE MOMENTS
4.BUILD A COMPREHENSIVE CUSTOMER VIEW
5.DELIVER COMPELLING PERSONALISED CONTEXTUAL
CONTENT
I N V E S T M E N T F O C U S

33. SOURCES
DELOITTE L2 PSFK RICHARD WATSON
IMAGES: GOOGLE IMAGES