THE FUTURE OF RETAIL 2014-19
CONSUMER X
Consumer Trend - X Today’s society forever blooms according to cultural changes and manifestations. Socially, what is accepted has developed far beyond differentials between males and females. Whether gay, straight, transgender or bisexual – rights for such individuals are becoming accepted in more and more areas of the world.
In terms of being considered ‘X’ this considers an individual who does not want to be categorized according to gender, race, or sexual orientation – instead, based on personality traits, interests, likes and dislikes. This has come as a response to a largely connected world rife with social media and personal technologies.
NEO SCEPTIC
Transparency Honesty Guilt-free Fact over fiction
With years of deceit from brands and higher powers, the world is in search of trust, transparency and reliability. Reliance has shifted from those in the big seats, back to our communities. Combined with a more DIY ethic this ensures honest purchases from foods through to textile.Through processes such as growing our own, and purchasing from local business owners, this elimates possibility of buying into guilty brands. it’s about fact, not fiction.
Consumer Profile #1
Basic needs: Honesty Creativity Community Connection
Drivers FOREVER SCANDALOUS: Whether it’s the economy, politics or how much horse we’re consuming, we’re constantly presented with scandals across a wide range of sectors.
SCEPTICISM: The dishonesty presented by the higher powers is forever making us question their authority and how much they’re telling us. Snowdon has shaken up our naive nation into a new age of sceptics.
IMPACTS
BRAND WINDOWS: Brands are giving us the window to their soul. From recycling and waste, to the pattern cutting and global profits - they’re giving us an insight into every step of the chain - its all about transparency and traceability.
Impacts
MEAT THE TEAM: Lets take McDonalds for example; they’re letting us meet the team, and speak to the farmers. As we know that ‘Mike the Potato Farmer from Surrey, England’ isn’t being exploited. Oh, and the 100% British cows aren’t either.
SHOW ME WHAT IM EATING: Suddenly, we’re seeing more and more restaurants with open kitchens, allowing us to see what we’re eating, and how prepared. OWN-GROWERS: More and more of us are going back to traditional lifestyles when it comes to our food. Not only due to rising food prices, 51% of us in the UK said we would consider growing our own, as well as the country wide encouragement to buy locally.
Case Study: The Albion
The Albion Cafe 2-4 Boundary Street, Shoreditch, London E2 7DD Albion is a caff and small shop, with an in-house bakery and cake counter, where the vast majority of the food and drink products are British. Chris - Designer, London UK. “I like the simplicity of the Café. It’s fresh, bright and really comfortable. I love the nostalgia and homeliness it adds by having the fresh baked bread and vegetables around. Although its pretty pricey, they serve great coffee and breakfast, all in a really chilled atmosphere.
NO BULLSHIT: No more bullshit. Packaging will give us more than we ever want, instead of words with multiple-syllables - the ingredients are those we know, and can relate to. Take Original Source shower gels - they are packed with natural (and mostly edible) ingredients.
Consequences
FRANK FOOD: Suddenly sporting ‘honest’ as your key message is vital. Take Honest Burger of Brixton (Soho, Camden, Portobello Road) - Honest now seems to be less about being honest with our bodies, and more about being honest with the world – the common good.
SELLING SCIENCE: In a wake of science, packaging has developed from the days of fictional fantasy. Out of bright colours and sales pitches, this ‘no bullshit’ approach is combined with factual evidence and scientific elements to produce something that symbolizes an equation or snippet from the periodic table. Science has stepped out of one specific ‘lab’ group, and into every day culture, standing as ‘proof’ for those ‘sceptic’ consumers who may need reassurance they can still trust their favourite brands.
Company profile - Kiehl’s American cosmetics retailer Kiehl’s specializes in making premium skin, hair, and body care products. Founded as a single pharmacy in New York City’s East Village in 1851, Kiehl’s was purchased by the L’Oréal Group in 2000 and currently has more than 250 retail stores worldwide. The brands scientific packaging and approach, allows consumers to feel they are being sold fact over fiction.
CONSEQUENCES Key Take Aways
TAKE IT BACK TO TAILORING No more just talks of tailoring. Personal preference, cut, fit and comfort will be key. Consumers will want to see this take place infront of them, feeling as if they have involvement with the production of their garments and products. A size no longer fits all.
MADE IN STORE M&S made in store snacks have given us that freshness we want with our food, and LA born brand American Apparel are known for their inhouse manufacturing warehouse that supplies their goods globally. This is a time where local can also mean global. As production prices rise in China, is this a key time to start really bringing it home?
RETAIL EDUCATION Retail spaces can become an area to educate. Whether a chef, tailor or designer - stores can become somewhere consumers can learn about their products and their manufacture, keeping them in the know in a practical way. This would become a method in which consumers can feel an honest connection to brands.
WAKE OF THE WORKSHOP This will be the wake of the workshop, 3D printed or not, more and more people will be interested in how things are manufactured. Hermes silk allowed us to take a peak of just how they make their luscious neckpieces, with a mission to share the knowledge and skill of the workforce and makers in such industries.
THE HAND OVER
Personalistion Security Technology Convinience
With the rise of online shopping and social media sites, brands are creating a backlog of endless data on their consumers that they are currently selling to the highest bidder. Consumers are naively handing over personal information that is being used and exploited to create a better understanding of consumer behaviour. With companies using social media and cameras to spy on their shoppers, is there such a thing as privacy?
Consumer Profile #2
Basic needs: Good customer service convinience honesty Security
Drivers ACCESS ALL AREAS Thanks to The Cloud, no more FOMO. Wi-Fi is constantly available to people on the go, allowing 247 online access, wherever you are. This is perfect for a world addicted to technology, communication and convinience.
GOOGLISATION It’s all about access. Super brands such as Amazon, Google and Facebook use our naively supplied information to get an idea of us, the consumer. With this, search engines, Facebook pages and images can be modified specifically to every online individual.
Impacts CUSTOMER SERVICE Vs INTRUSIVNESS Prepare to be known. British Airways have launched the ‘Know Me’ Scheme, a method of Googling passengers to enhance customer service - more intrusive and uncomfortable than useful? Alongside this, Tesco have used facial recognition software at petrol stations in order to target advertisements according to age and sex.
ALL IN ONE As we share our information freely, brand such as Amazon, Netflix and Spotify having the ability to recommend songs, films and information accordingly to previous searches and interests. With the birth of a newer more demanding consumer, big data allows information to be collated so your favourite brands know you, and what you like.
THE OPT OUT As brands begin to flaunt our information, it can only mean one thing – The Opt Out. As it begins with many opting out from Google and Facebook target ads - whats next for the super giants and how they use our information? As its revealed the new LG smart television erupted privacy concerns, it’s a time to identify who’s watching and who’s using our information and where.
Consequences
NICE KNOWING YOU As brands use Google to identify their consumers and their spending habits, consumers begin to feel the violation of privacy, as stores know you by personally. What will this mean for bricks and mortar stores? Complete avoidance all together?
LAGGARD NAIVETY The naivety of the late majority means that additions such as the Iphone Finger scanner are being used without hesitation and scepticism. Consumers are handing over personal information without giving it a second thought; due to trust built by cooperate brands such as Apple and Google. HONEST HACKERS With all the data that is available in today’s society, it is inevitable that with it brings a new rein of hackers. The big difference is the addition of ‘honesty’ – hackers are showing consumers what’s going on with our information. In December 2013, retail giant Target had 40million of consumers details stolen. How safe is our information really?
Key Takeaways WE KNOW WHAT YOU NEED Sooner than later, data will be able to predict what consumers want before they know themselves. Advertisers and retail stores will be ahead of the curve and will be one step ahead of consumers and their actions. Universities in California are using big data to see which students will do well before they are even accepted.
THE CORNER SHOP In the future brands will look back and create the ‘corner shop’ experience within the store environment. Retailers will know who you are and what you like the buy whether its online, in store or via mobile. Technology and big data will allow retailers to know their consumer on a much deeper level to create that much wanted personal experience.
Case Study: EMC
EMC
Headquartered in: Hopkinton Massachusetts United States. EMC is a global leader in enabling businesses and service providers to transform their operations and deliver information technology as a service, by using their own technology, solutions, and IT organization to architect the world’s journey to a dynamic future in the cloud.
John Grayham, EMC “As fashion and trends change more and more frequently, retailers will have to move fast to exploit the latest and greatest products. That will mean understanding more about what consumers want and designing or identifying products or services their consumers will want. It will be about making it a more fun experience.� (interview, see appendix)
“Companies are using big data to understand more about their customers and what their consumers want� - John Grayham, EMC
What social media networks are you currently connected to?
45%
80% ON INSTAGRAM
ON LINKEDIN
80%
38%
ON TWITTER
SPOTIFY
51% PINTEREST
100% ON FACEBOOK
24% NETFLIX
28%
SOUNDCLOUD
17% AMAZON
Are you connected to any of these apps via Facebook?
FRIENDS? PHOTOS? AGE? GENDER? EMAIL? PHONE NUMBER? LIKES? LOCATION? MUSIC? INTERESTS? BIRTHDAY?
When considering your personal information - what do you think these apps have access to?
5D
Interaction Connection Engagement Humanisation
Innovative technologies are increasingly being integrated into our everyday lives, 5D centres itself around testing the boundaries of the virtual environment, with the five senses, the ability to see, touch, smell, taste and hear the future. The physical and digital worlds are merging, creating a whole new meaning to consumer engagement and ‘try before you buy’.
Consumer Profile #3
Basic needs: Good customer service convinience honesty Security
Drivers CLICKS TO BRICKS: With the dominance of e-commerce, many retailers are underestimating the role of bricks and mortar stores. Results suggest that just over two thirds of 18-25-year-olds prefer to shop in stores for clothing and shoes. Brands such as EBay and ASOS have considered physical stores that will bridge the vital gap between online and offline. EAT, SLEEP, WORK REPEAT The structure of the job market has changed, with increases in the proportions of professional and managerial occupations, meaning consumers have less time than ever.
THE TECH TAKEOVER With wearable technologies at the forefront of innovation, it is vital that brands capture this and integrate such technologies into their brand identity in order to remain present in the retail environment. As augmented reality allows consumers to connect via senses, this adds a whole new and key addition to the retail environment.
Company profile - Jawbone Jawbone has developed human-centered wearable technology and audio devices unparalleled in their technical innovation, ease-of-use and sophistication of design. (jawbone.com) Their new UP system helps you understand how you sleep, move and eat so you can make smarter choices.
Impacts
IF THE SHOE FITS The ‘ try before you buy’ concept is revolutionising retail online and offline. The Ikea furniture app, allows users to pick an item of furniture and virtually place it within your home whilst virtual fitting rooms, such as fits.me allows consumers to virtually try on clothes on screen. Rayban & M&S have incorporated this concept into their stores.
IEXPERIENCE 5D isn’t just about making things more simple, it is about enhancing the experience. Imax cinema is an example of the importance of this, there is no frame, the picture is bigger than your field of view, you’re no longer at the window, you’re outside among the stars. It grabs your senses, creating a fulfilling virtual experience.
PHYSICAL IS DIGITAL As virtual Currency is paving the way to our future, BITCOIN is slowly nestling into everyday culture - with many retails accepting Bitcoin as a form of payment. Similarly, the ‘coin’ card virtually stores all your cards onto one, allowing holders to choose which to pay with.
THE AVATAR WILL SEE YOU NOW: Avatars are slowly becoming prominent in various retail and store environments. As a method of interaction with consumers and even patients, many stores and doctor surgeries are using avatars that act as doctors or sales staff.
Consequences
MAKE IT HUMAN Brands are seeing the importance of humanizing and personalising the virtual experience. Burberry’s ‘Kisses’ allow users to virtually send a kiss to any destination or individual you want, creating a personal connection to the brand As part of the Festival of Imagination taking place this month at Selfridges, fashion designer Gareth Pugh has worked with Inition to create a “multi-sensory experience” called Monolith. This shows how the merging of the physical and digital worlds can increase consumer engagement with the brand.
RETAIL IS DETAIL Its not enough to have a one dimensional store, today a store is about an ‘experience’. Global store Abercrombie and Fitch, attract the teen market by spraying perfume in store, which can also be purchased. This sensory method allows consumers to remember a smell and therefore a store. Nike has found introducing scent into their stores increased intention to purchase by 80%.
Case Study: Perch Interactive PERCH is a startup intent on revolutionizing retail by introducing a series of game-changing interactive display technologies. They believe there is value in holding a product in one’s hands, and that that value is perennial. They also understand the value in the digital shopping experience, in having a world of information at one’s fingertips. Based on these two firm beliefs, PERCH envision a future in which the two experiences are merged into one coherent, enjoyable and productive shopping experience. (interview, See Appendix)
A PLAYFUL GENERATION Interaction with smart technologies within the instore environment could be a new phenomenon, with Apps such as ‘Blippar’ allowing us to interact with brand logos through augmented reality, and Ibutterfly, an app that focuses on catching virtual butterflies instore to ‘catch’ promotions and offers.
Key Takeaways
SMELLY COMMUNICATION Forget texts, its all about sending smells! The new Ophone attaches itself to the bottom of your phone, allowing you to record smells and send them to your friends. This is an exciting concept for brands who can market to all the senses, ‘smell this leather jacket, I’m going to have to buy it’.
TOUCHY-FEELY In the near future gadgets will include haptic feedback technology, a method which will allow you to virtually feel clothes before buying them. This could revolutionise retail as computers will allow us to ‘feel’ an item of clothing on screen.
Case Study: Sex with Google Glass
SEX WITH GOOGLE GLASS GLANCE APP London, UK
“With Glance App, see what your partner can see. Just say “ok glass, it’s time” and Glance on Google Glass will stream what you see to each other. If you feel like stopping everything, just say “ok glass, pull out” “If the wearable tech is connected to smart lamps, or other household devices, for example, wearers can control music, lighting and even search the web for sexual positions and other inspiration”. (www. dailymail.co.uk)
The UK Highstreet In the UK, we have seen a large decline in the highstreet, with the closure of shops and small businesses being overtaken by large corperate chains. As the UK economy slowly crawls back to health - we determine how the high street will look in the next 5 years.
1# Learn From The Locals Retail spaces can become an area to educate. Whether a chef, tailor or designer – the stores can become somewhere that consumers can learn about their products and their manufacture, keeping them in the know in a practical way. This would become a method in which consumers can feel an honest connection to brands and whom they buy from, as well as learning from them.
2# We Know What You Want Its all about creating that personal experience. Big Data reveals everything about you and what you want - but how can retailers use it to your advantage? Sooner than later, retailers will have immediate access to more than your facebook, but your purchase history. With this, they can create a customer experience just for you depending on what you’ve bought.
3# Sensory Sale This is the new development of try before you by. Merging the offline and online, haptic feedback technology will allow you to feel your items you’re buying through a screen. Focusing on the importance of the senses in a retail environment, remixed with smell-technology the retail space will be a sensory sensation.
BRAND APPLICATION
Features HAPTIC FEEDBACK “Haptic feedback, often referred to as simply “haptics”, is the use of the sense of touch in a user interface design to provide information to an end user. When referring to mobile phones and similar devices, this generally means the use of vibrations from the device’s vibration alarm to denote that a touchscreen button has been pressed” (mobileburn. com) When related to retail, such technologies will allow consumers to feel their items through screen devices, blurring the lines between online and offline and merging physical actions - made when shopping in reality - to those virtually through a device. For many consumers, having the ability to touch and feel a product is important, as it determines quality, weight and how the fabric will feel on the skin.
SMELL TECHNOLOGY Smell technology - or digital smell technology - is “a system designed to release odor so that the viewers can smell what they were visually experiencing on the screen” (thewindowsclub.com.) “Smell is a very powerful, powerful sense. It can trigger an emotion or memory at a subconscious level -- before we logically think about it,” Professor Cheok, The University of London. When considering online retail, this will allow consumers to smell everything from perfumes, through to hand creams and leather before purchase, elimating the guessing game that is shopping online. Connecting this smell technology to haptic feedback will create a new dimension of consumer experience. Consumers will feel connected to their purchases when bought online, very much like when shopping in real life. In the future, this could lead to the improvement of clothing quality, a reduced returns returns rate (due to quality, texture etc) and higher customer satisfaction.
Brand: &Otherstories Part of the H&M group, &Otherstories is a sibling amongst other large brands including Monki, Cos, Weekday and Cheap Monday. The brand launched in March 2013, offering an extensive selection of clothes, shoes, bags, jewellery and cosmetics. The brand is all about fashion, with particular focus on quality and design details as well as personal expression and styling. (about.hm.com) With this specific focus on ‘quality and design, we felt this trend would be successfully executed via this brand, incorperating other features such as the brand’s minimalistic housestyle and bright colour palette.
&Otherstories website/online store
Brand: primary research
Primary research trip to the &Otherstories store on Regent Street, London. (own images)
Brand: style/aesthetic
Brand Identity: With monochromatic, minimalist branding, the brand adds infusions of bright colour throughout their palette from clothing to products. The brand adds a clinical, scientific element to their packaging and stories by using a clear white labelling and seethrough/white bottles, brightly coloured liquids and the addition of sink.
Idea: “the space beyond online” To present this trend (5D) the aim is to firstly, create an online brand video to become part of the brand’s already established collection of video content - featuring everything from their range of cosmetics and skincare, through to style stories. Titled “The Space Beyond Online” - this links to the future of online retail and the merging of both the physical and virtual. The video will be a promotional piece for a concept store ran by the brand, around the proposed trend/idea. This will highlight how &Otherstories are not only a brand of the future, but also the retail innovators, using haptics and smell technology. The concept store will present how these senses (smell and touch) can be incorperated into the online landscape of &Otherstories, improving the consumer connection to the brand and their products. The store will show consumers how they will be able to feel, smell and interact with garments and products - very much like if they were in a physical store - through their screen technologies. The store will hold no garments or products, only a series of ipads/ screen devices showing the sensory process.
Mock-up &Otherstories concept store for promotional video
Idea: “the space beyond online”
The variety of shots within the video will mimic how consumer interact with products - first, in a physical store, then through a screen. This will show the consumer how the process of haptic and smell technology work, by showing it against how they would interact with the products physically instore. A split screen effect (similar to those within the &Otherstories videos currently) will be used to show this, putting the two actions next to eachother to show similarities. The clips will show ‘touch’ in relation to feeling a garment, and both ‘touch’ and ‘smell’ through beauty products, ie. creams represented through the petri-dishes and jars in the mock-up. Using this scientific and clinical reference and styling in the video/mock-up not only links to the brand’s indentity, but also links to other trends such as ‘no bullshit’ and ‘selling science’ which presents to the consumer raw facts and zero fiction when presenting products, and information. Here, its factual futures.
Beauty & cosmetics : Physical and Digital ‘touch’ and ‘smell’
Garment : Physical and Digital ‘touch’ through haptics.