china client seminar global retail roundup_ng_d2 250116

1 © GfK January 25, 2016 | Global retail trends, challenges, opportunities

GLOBAL

SHOPPING AND

RETAIL TRENDS

Norrelle Goldring, January 2016


We view retail evolution

as similar to Charles

Darwin’s description of

evolution:

It’s not the strongest of

the species that

survives nor the most

intelligent, but the one

most responsive to

change.

Ruslan Kogan, Kogan online retail

appliances


5 global trends for today‘s presentation

Selected from 12 ConsumerLife ‘Trendkeys’


The 5 trends we’ve chosen for today’s presentation 12 Global Trends under 5 Themes that represent genuine, long-term shifts in the

attitudes and behaviors that shape consumers’ needs

Sense of Well-being

Streamlined

Satisfaction We Are All Influencers

Eco-citizenship Identity

Considered

Consumption Instant Everywhere Experience Safe & Secure

House to Home Redefining Value

Prevention Engaging in proactive

and peace-of-mind

strategies

Conscientious Choices increasingly

influenced by social

considerations

@Home

Wherever Connecting with consumers

on their terms

Me-ism Brands channel self-

expression and

personal influence

Expectation More…is no longer

enough


Translation of these global trends into retail implications

Trend Retail Implication

Instant Everywhere Micro-moments, mobile, omnichannel, shop & deliver anywhere,

convenience

Experience Collaboration, emotion, humanising retail, novelty & fun

We’re all influencers now Reviews, sharing economy, social media role

Identity Co-creation. Know me to tailor products, services & offers to me

Streamlined Efficient, easy, simple, one-tap/one-click, choice and complexity reduction

6 © GfK January 25, 2016 | Global retail trends, challenges, opportunities “What do I want? Everything. When do I want it? Now!”

Instant Everywhere Global Trend | TrendKey


360º Convenience

On-demand

Stretched Lives

Empowerment

Immediacy

Flexibility

Service

Connectivity

Instant Everywhere | Insight & Keywords

I n s i g h t K e y w o r d s

88% Med-High Impact

Innovation means … A faster

way of doing something 25%

Satisfaction with availability of

online ordering and home delivery 50%


Deliver to home Deliver to collection point

Deliver to my car Deliver to store

Retail no longer finishes with the ‘store’

Spare capacity and sharing economy can be used for deliveries


Shop en Route with ‘Click and Collect’ … anywhere

Boxeway, Argentina

Click & Collect lockers in high-traffic areas such as

gas stations and train terminals. Lockers are rented

out by retail brands who contact their customers via

text or email when the item has reached the locker.

InPost, UK

A network of 1,000 parcel lockers for

marketplace sellers and businesses

ParcelPod, UK

Parcel and mailboxes for unattended deliveries

– at your home or place of your choosing


Even McDonalds are in on the act,

with 30 minute delivery in Shanghai


JeansOnline & Lamoda:

Courier will wait 15 minutes and take back unwanted items

• Dutch retailer JeansOnline launch a home delivery

option that allows shoppers to give any unwanted

items straight back to the courier. With the Easy Fit

& Return service, customers have 15 minutes to

try on garments, after which the courier will return

to collect any purchases they do not want to keep.

• Couriers from Russian online fashion

store Lamoda will wait 15 minutes for returns and

offer fashion advice if asked.

Source: Trendwatching.comc

http://www.jeansonline.com/en/

http://www.lamoda.ru/


Being convenient has been essential since retail began.

Now there are multiple ways shoppers expect to be able to reach you, 24/7

To create attraction from the moment of trigger you must be continuously available

Purchase


Experience Global Trend | TrendKey

As consumers become more sophisticated, the focus turns from ‘what I’ve got’ to ‘what I do’.


Social & Cultural Capital

Shared Experiences

Novelty & Fun

Entertainment

Exploration

Sensory Stimulation

Excitement

Happiness

Experience | Insight & Keywords


71% Med-High Impact

Experiences are more important

than possessions 38%

Innovation means … A more fun

or exciting

way of doing things

18%


If experiences are more important than products,

then storytelling = storyselling

An incredible idea makes people believe. An emotional idea makes

people care. Right stories make people act.


BOQ – Humanising Retail Banking

If this looks or feels anything like a bank, I’ll

walk out!” - BOQ CEO, Stuart Grimshaw

Objective: deliver a customer experience that aligns

with new positioning -"It's possible to love a bank!"

Results:

In its first week this

branch outperformed the

No.1 flagship store

75% of new business

written in the first 3 weeks

from customers who have

never had a BOQ product

before


Peach bottom pants crack the Chinese fruit market

Objective: boost sales ahead of China’s version

of Valentine’s Day

What: fruit vendor in Nanjing dressed the fruits in

miniature versions of women’s lingerie and sold

them for a jaw-dropping 498 yuan (US$80) for

nine naughty peaches.

Result: The idea quickly became a hit, causing

the vendor’s online fruit sales to skyrocket and

inspiring copycats, despite the astonishingly high

price.


‘Experience’ means shoppers want services based on their needstates, not

categories. This may often mean collaborating with your competition.

Merchandising to an occasion Competitor collaboration


We’re All Influencers Now! Global Trend | TrendKey

Technological developments have made it easier than ever for consumers to influence

one another.


Connected

Recommendation

Listening

Word of Mouth

Trusted Opinions

Advocacy

Real-Time Reviews

Crowdsourcing

We’re All Influencers Now! | Insight & Keywords


85% Med-High Impact

Technology helps to …

Make me feel connected 67%

Interested in the use of

peer-to-peer services 28%


Q8: When shopping for [category], how important was each of the following factors in your shopping decisions?

Peer to peer communications are vital to Chinese shoppers

Previous Experience w/

• Brand

• Retailer

• In store displays/store circulars

• Shelf info

• Coupons

• Packaging

• Social media

• Gen. shop sites

• Brand sites

• Ability to pay with mobile online

• Shopping apps

• Retailer sites

• Location-enabled apps

• Online expert reviews

• Retailer apps

• Store circulars

• Manufacturer apps

• Ability to pay with mobile

in a store

• Brochures/print

• WOM-friends and family

• Consumer opinion websites

• Online reviews from other shoppers/users

• Product samples/demos

GfK FutureBuy® 2015


Dan Murphy’s: using local customer reviews to influence at

shelf and online the wine shoppers buy


Identity Global Trend | TrendKey

“Carving out and protecting my identity, being free to be my own person.”


Individuality

Self-expression

Bespoke

Tailored

Targeted

Personality

Customized

Unique

Identity | Insight & Keywords


87% Med-High Impact

I like to buy products that

can be tailored to my

needs 23%

Innovation means … Being

unique and really different 18%


“Companies still depend on mass media marketing to drive impersonal transactions.

To compete, companies must shift from pushing individual products to building long-term

customer relationships.”

Product

Centric

Harvard Business Review, Re-thinking Marketing

Consumer

Centric

Balance of power shifting from product to shopper.

Engagement has never been more important.

Relationships and personalization is the key to engagement.


Tory Burch staff ‘client book’ ipads aid customer

recommendations instore

Provides information on customer’s prior purchases and

online lists to store staff sales associate

The average order for Client Book customers is 62%

higher than the typical Tory Burch customer


Target Australia’s next generation store free ‘Style Me’ service

Dedicated stylists:

• Talk to customers about the latest

fashion, style customers with what

looks good

• Take them to a special area where

they will fit them

• Go through all fashionable pieces that

are on the floor

• Can be booked in or done on-the spot

Stores also have digital photo kiosks

which serve as tshirt printing stations for

one-offs and short runs.


Streamlined Global Trend | TrendKey

‘Less is more’ for some, but many just want to bring a little order to their cluttered lives.


Simplicity

De-cluttered

Uncomplicated

Minimalist

Innovation

Rationalisation

Choice Curation

Stress Reduction

Streamlined | Insight & Keywords


90% Med-High Impact

Technology helps to …

Make life easier 71%

Innovation means …

An easier way of

doing something

41%


SOURCE: Digital log-file data n=201 INFORMATION: All edges (lines linking nodes) are proportional to the volume of journeys made between these nodes.

Increasing touchpoints and info means an increasingly complex

shopper path to purchase

Many touch points makes it difficult to engage throughout journey.


Shoppers often cross platforms & media over multiple visits during

the purchase journey


Mobiles are primarily used to make the purchase journey easier

and prevent ‘running around’

26

26

17

17

16

To search for information about the product/service

To compare prices or request price match

To locate a store

To check availability of a product in store

To access reviews of the product/service

Top – info, price, location, availability

To search for information about the

product/service

To compare prices or request price

match

To locate a store

To check availability of a product in

store

To access reviews of the

product/service

Q16 Let’s focus on the last time you used your device to help you shop. In which of the following ways did you use your device when you were shopping

Source: Futurebuy 2015 Australia data


Skip the queue, happy you

The end of the queue?


‘Findbox’ scanner helps shoppers find products in hardware

stores

Issue:

For large stores and DIY outlets with a

large inventory of similar products,

customers can often get confused while

trying to find a particular item and end up

leaving without buying anything.

Solution:

Findbox acts as a digital assistant that can

locate items. The device features a scanner

that can recognize 3D objects and match

them to products in the store.


Paying with faces – the future of one-tap/click payments

Description

Consumers who shop at 100% Genuine Imported Food

Chain Stores in Shanghai now need only to present

their faces and hands to complete a financial

transaction.

The ‘face pay’ technology measures and records the

capillary network data of customer’s faces and hands

using the registers. Each head and pair of hands have a

unique network of tiny blood vessels. Using an

algorithm and specialized devices, thermal scanning

can record the information much like a fingerprint.

Transactions using this technology are expected to be

not only more convenient but more secure.


Summary: what does all that mean?


Create experiences, not transactions

Create solutions around needstates

Inject emotion, fun, novelty and

sensory stimulus into shopping

Make retail human. Tell a story

2 Experience

Collaborate with customers – co

create

Segments of 1 – market to individual

customers based on their history and

preferences

4 Identity

Be where your shoppers are,

continuously available from moment

of trigger, at all stages of the journey

1 Instant Everywhere

Make it one click/one tap

Curate what customers see

Collapse stages of the purchase

journey

5 Streamlined

Understanding the differing roles,

attributes and benefits of both the

physical store and the online store.

6 This means …

Showcase customers’ reviews of

products in physical stores and online

Harness positive word of mouth –

create offers around customer

advocacy programs

3 We’re all influencers

The following considerations underpin our approach


“People will forget what

you said, people will

forget what you did, but

people will never forget

how you made them

feel“ - Randy Garutti Shake Shack founder Per others before him


THANK YOU

Ask us about:

• Customised Futurebuy report

for your category

• ConsumerLife and Trendkey

reports

[email protected]

Norrelle Goldring

Regional Shopper Lead, APAC

P: +61 2 9900 2888 | M: +61 437 335 686

Further retail-related reading:

• Deloitte ‘Navigating the Digital

Divide’, 2015

• IBM ‘Smarter Consumer Study,

2015

• Deloitte ‘Mobile Retail Influence

Factor’, 2012


APPENDIX:

ConsumerLife TrendKey definitions for

trends not shown today


Heritage

Provenance

Conscious Consumption

Transparency

Integrity

Respect

Authenticity

Fair Trade

Considered Consumption | Insight & Keywords

I n s i g h t

Every purchase decision I make says

something about me. I value companies

that are honest and transparent in

everything they do and say and have

nothing to hide. I want to make

purchases with a clear conscience in the

knowledge that I’m doing the ‘right’ thing.

K e y w o r d s


Critical Consumers

Quality

Choice

Best Value

Durability

Guarantee

Cost/Benefit (Value Equation)

Savvy Shopper

Redefining Value | Insight & Keywords

I n s i g h t

As a price-conscious, critical and savvy

consumer, best value, as opposed to

just best price, is top-of-mind for me and

shapes my shopping behaviour and

brand choice. I demand and expect to

receive quality and value at all price

points. This doesn’t mean that I’m only

going to buy prestigious brands. I will

consider any options that offer me

quality without compromise.

K e y w o r d s


Indulgence

Fulfillment

Gratification

Reward

Extravagance

Surprise & Delight

Exceed Expectations

Best-in-Class

Satisfaction | Insight & Keywords

I n s i g h t

I want to have fun and feel special with

every activity and purchase. I expect to

be indulged, excited and rewarded by

everything I buy and every activity I

choose to do. Fail to deliver and I will

happily look elsewhere for a brand or

service that can meet and exceed my

expectations. After all, I and my loved

ones are worth it, and both our time and

money are precious commodities.

K e y w o r d s


Reassurance

Protection

Trust

Security

Fear Negation

Assuagement

Anxiety

Risk Aversion

Safe & Secure | Insight & Keywords

I n s i g h t

I want to be kept safe and secure in a

world of increasing uncertainty, threats

and danger (both real and perceived).

As I become more risk-averse and

anxious about my world, I need constant

and timely reassurance that the brands

and services I choose are safe for me

and my family. All institutions and

companies will need to work harder to

earn and keep my trust in a world of few

sureties and more choice.

K e y w o r d s

71% Med-High Impact


Pursuit of Wellbeing

Inner & Outer Beauty

Nutrition

Healthy Options

Health Gap

Balance

Youthfulness

Be-Your-Best

Sense of Wellbeing | Insight & Keywords

I n s i g h t

It is important for me to look good and

feel great at all times in both mind and

body. My outward appearance reflects

my inner peace and satisfaction.

However, given all the pressures on my

time and pocket, I find this hard to

manage. I actively seek out brands,

products and services that can help me

achieve my goals.

K e y w o r d s


Corporate Citizenship

Eco-friendly

Green Guilt

Eco-conscious

Greenwashing

Sustainability

Green Awakening

Reduce, Reuse, Recycle

Eco-Citizenship | Insight & Keywords

I n s i g h t

Increasingly I think about the impact that

environmental pollution and global

warming is having on my life and that of

my children. When choosing which

products to buy and services to use, I

consider the consequences that my

actions have on the planet; and I expect

companies and brands to act on my

behalf. Wherever possible I will do what

I can to reduce my impact even if that

means consuming differently or

consuming less.

K e y w o r d s


Sanctuary

Habitat

Investment

Status Symbol

Nesting

Cocoon

Professional Quality

Entertainment Hub

House to Home | Insight & Keywords

I n s i g h t

My home is my haven of peace, my

fortress and protection from an unstable

world. My home is a reflection of who I

am and what I value, a place where I

can care for and entertain my friends,

family and neighbours. Spending time at

home shouldn’t mean that I miss out on

what’s going on in the world, so I

appreciate products and services that

augment my in-home experience.

K e y w o r d s


Asia-Pacific

• Australia

• China

• Hong Kong

• India

• Indonesia

• Japan

• Malaysia

• Singapore

• South Korea

• Taiwan

• Thailand

• Vietnam

North America

• USA

• Canada

Western Europe

• Belgium

• France

• Germany

• Italy

• Netherlands

• Spain

• Sweden

• UK

Central/Eastern Europe

• Czech Republic

• Poland

• Russia

Latin America

• Argentina

• Brazil

• Mexico

• Peru

Middle East/Africa

• Egypt

• Ghana

• Kenya

• Nigeria

• South Africa

• Turkey

• 30,000+ consumers each year

• Running 20 years

• Consumers aged 15+

• Between 1,000 and 1,500 consumers

per market

• Covering c.84% GDP

“Largest, longest-standing and

most robust consumer trends

study in the world”

GfK Consumer Life | Overview


GfK Consumer Life | Topic coverage

Food and beverage

Aspirations, life attitudes

Technology and media

Health and personal care

Advertising & brands

Money & finance

Consumer mood

Travel and automotive

Influences & information

Retail & shopping Leisure and lifestyle

Personal Values

Environment & CSR …and more

Insights in to virtually all dimensions of life…

…providing a holistic view of consumers’ lives

china client seminar global retail roundup_ng_d2 250116

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