death of the gondola: evolving your brand for the new retail reality
DESCRIPTION
With the world around us changing so much over the last 100 years how has the staple of retail stores- the gondola fixture remained the same? We need to evolve beyond the store as glorified stockroom to an engaging experience that could be a joy to shop. In this presentation shared at the July 2014 Shopper Insights in Action Conference Interbrand Design Forum shared a peak at what retail could be if we remove the constraints of the gondola.TRANSCRIPT
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Hilet’s go on a little trip...
1. How far have we come?2. The “Glorified Stockroom”3. Imagine if you will…4. We’re making progress5. We’ll leave you with this
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1. How far have we come?
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Well, it’s a mess.
Photo Credit: http://brianjpankratz.files.wordpress.com/2013/01/store-overview.jpg
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Our old friend the Gondola.
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Since the idea was first executed in
1897...
Photo Credit: https://www.google.com/patents/US618510, https://www.google.com/patents/US3770135
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53 countries have grown to
196...
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1903
2007
1
853
passenger
passengers
Photo Credit: http://www.wright-brothers.org/Information_Desk/Just_the_Facts/Airplanes/Wright_ Airplane_images/1903_Flyer_I/1903_Flyer_Front.jpg,
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0 passengerspassengers
2014
Photo Credit: http://media.defenceindustrydaily.com/images/AIR_UAV_MQ-9_Reaper_Armed_Frontal_Taxiing_lg.jpg
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MOON...We’ve put a man on the
Photo Credit: http://space-facts.com/wp-content/uploads/moon-transparent.png
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The land speed record has skyrocketed over
700 MPH
Photo Credit: http://www.modelcar.de/picall/modellautobilder/785b.jpg
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This man made the first radio voice transmission in 1900, it went
1 mile
While this man can now talk to his family from anywhere in the
WorldPhoto Credit: http://www.circuitstoday.com/wp-content/uploads/2013/11/Reginald-Fessenden.jpg
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And your coffee today that cost you
$3.00
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Would have bought you
800 cups
Photo Credit: http://hisplace-international.com/wp-content/uploads/2014/07/coffee-cup-to-go-art-9.jpg
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But this...
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...Still looks like this?
Photo Credit: http://www.gettyimages.com/detail/photo/woman-checking-food-labelling-royalty-free-image/160425004
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2. The “Glorified Stockroom”
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Stores basically boil down to what we call a “glorified stockroom”, it’s a prettied up area where products are held
Aisles upon aisles of shelves aren’t conducive to creating an experience that shoppers enjoy
Stores are boring
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Packaging
Gondolas restrict the creativity that companies could have with packaging development
Communication
Conversation with the customer is limited to overhead signs
Education
Available space for educating consumers about products and your store is non-existent
We’re limited by the fixture
Photo Credit: http://www.gettyimages.com/detail/photo/chewing-gum-on-a-supermarket-shelf-royalty-free- image/88624372 http://brianjpankratz.files.wordpress.com/2013/01/store-overview.jpg
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We’ve made strides with “dressing it up”
Photo Credit: http://99designs.com/designer-blog/wp-content/uploads/2012/07/04-shelf-impact.jpg
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It’s called a chore... for a reason
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The lack of innovation experienced in the retail industry has led to a stagnant shopping experience
Shoppers are on auto-pilot in all categories in choosing what and where they buy
With how easy it is for todays consumers to simply go to an online retailer like Amazon and set up recurring deliveries for a broad spectrum of products, something exciting and new has to be done to drive in-store traffic
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It’s time to say goodbye to the gondola
The gondola is archaic compared to some of the advancements that have been made in the last century. Over 100 years of design are represented here, but they could easily belong to the same patent
Photo Credit: https://www.google.com/patents/US618510, https://www.google.com/patents/US3209709, https://www.google.com/patents/US4722284, https://www.google.com/patents/US5472103, https://www.google.com/patents/US6345795, https://www.google.com/patents/US8365928, https://www.google.com/patents/US8646618
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It’s time to kill the gondola
Photo Credit: http://www.gettyimages.com/detail/photo/surprised-woman-holding-clipboard-in-conference-royalty-free-image/104821260
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Why? Because shoppers are demanding it!
Source: Watermark Consulting
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In mature markets experience is becoming the battleground
Poor customer experiences result in an estimated $83 Billion loss by US enterprises each year because of defections and abandoned purchasesParature Customer Service Blog
The average annual value of each customer relationship lost to a competitor or abandoned is $289Genesys Report: The Cost of Poor Customer Service
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Experience creates value
Drives choice
Commands premium
Engendersloyalty
Customer power has grown, as 73% of firms trust recommendations from friends and family, while only 19% trust direct mailForrester Research Blog
86% of consumers will pay more for a better customer experienceRightNow Customer Experience Impact Report 2011
89% of consumers began doing business with a competitor following a poor customer experienceRightNow Customer Experience Impact Report 2011
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3. Imagine if you will...
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One brainstorm, that asked a simple question...
What if we weren’t constrained by the gondola?
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It was fun...
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We took 4 of the least enjoyable areas of a typical
grocery store and we re-imagined them
1. Canned Produce
2. Cereal
3. Laundry
4. Pharmacy
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We made one small assumption...
That technology would enable us to deliver the product at the end of the shopping journey or right to the customers home
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1. The Canned Produce Aisle
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The Canned Produce Experience
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2. The Cereal Aisle
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The Cereal Experience
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3. The Laundry Aisle
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The Laundry Lab Experience
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4 .The Pharmacy Aisle4 .The Pharmacy Aisle
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The Wellness Experience
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The possibilities...
...Are endless! As soon as we aren’t just warehousing SKUs we can create transformation through:
- Meaningful Storytelling
- Seamless Digital integration
- Intuitive Experiences
- Drama & Theater
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4. We’re making progress
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Photo Credit: http://www.marketinginautomotive.com/wp-content/uploads/2013/04/DSC_0490.jpg
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Photo Credit: http://en.wikipedia.org/wiki/Desigual#mediaviewer/File:Desigual_shop.jpg
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Photo Credit: http://4.bp.blogspot.com/-vHTxc9zU_pY/T8AAGwc1D5I/AAAAAAAAAQs/d3ClrpNW9_o/s1600/IKEA_Singapore.jpg
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Photo Credit:http://en.webrazzi.com/wp-content/uploads/2014/04/apple-store-12.jpg
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Photo Credit:http://www.ecologos.it/portfolio-items/negozio-leggero/#prettyPhoto[‘gallery’]/12/
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5. We’ll leave you with this...
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Here is a simple set of principles that all great retail
experiences share. Just ask yourself, does your strategy/
design/experience deliver? Are you excited to shop it
yourself? Are you proud enough to blog about it?
Here they are...
How do you create/unlock your brand’s potential?
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The four principles of experience design
1. Emotion - hit people at the gut level
2. Simple - people need to immediately get it
3. Honest - keep it real
4. Memorable - needs to stay with them
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If we don’t take the lead, who will?
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WHAT’S DANGEROUS IS
– JEFF BEZOS
NOT TO EVOLVE.“
“
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BRANDS HAVE THE POWER TO CHANGE THE WORLD
Thank you!Interested in discusing your own retail challenges? Please contact Scott Smith:
[email protected] + 937-312-8904