RETAIL
TAP
FOUR KEY
RETAIL TRENDS
FOR
2013
Powered by Shopper Sciences
RETAIL
TAP
TRENDS ACROSS THE
PLANET
Retail TAP has been curated to showcase innovation and design in Retail. We’ll aim to bring you the most inspiring articles from around the globe and focus on implementations which are unique enough to make a big impact. This edition focuses on four key retail trends for 2013: TEC-TONIC SHIFT Forget consumers. Forget customers. Today it’s about the shopper. C2C Consumers aren’t just talking to each other, they are selling, trading, advising one another. INCONSPICUOUS CONSUMPTION Increasingly retailers and shoppers are finding ways to lighten the load. MAN-SUMERISM The rise of male shopping behaviour.
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Contents
Contents 01
TEC-TONIC SHIFT
02
TWo sTATes: usInG & deCIdInG
10
ConsuMeR CuRATed CATAloGue
18
PoP uP ReTAIl 2.0
ReCYClInG AT ReTAIl
05
Re-AlIGnInG ARound dIGITAl shoPPeR ReAlITIes
The ReAl PuRChAse Funnel
13
14
dIsInTeRMedIATInG BRAnds
20
InVIsIBle BuT PoWeRFul
27
Men don’T jusT shoP. TheY BuY.
04
12
19
26
Men shoP dIFFeRenTlY
RIse oF shoPPeR MARkeTInG
11
nexT Gen MARkeTPlACe
sToRe BRAnd equITY
03
Men ReseARCh, WoMen shARe
29
MARkeTInG To Men
15
23
ReCessIonARY ResIduAls
30
Getting in touch
09
sMART shoPPeR PlATFoRMs
16 loYAlTY, BRAnd equITY “keePInG uP WITh The joneses”
INCONSPICUOUS CONSUMPTION
MAn-suMeRIsM
08
the ecology of shopper dialogue
C2C
22
21
loYAlTY Is noT A FRee T-shIRT
28
C2C: The neW sAles FoRCe
07
17
eCo PACkAGInG
24
“RenAIssAnCe MAn” ReVIsITed
25
BeYond The 9–5 GRInd
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Tec-tonic shifT.
Tec-tonic shift Forget consumers. Forget customers. Today it’s about the shopper.
01
two states: using & deciding
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two states: using & deciding What drives shoppers to say “yes�?
using
Deciding
02
rise of shopper marketing
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rise of shopper marketing Source: GMA/Booz
Annual Shopper marketing spend:
$50b And growing
03
%
re-aligning around digital shopper realities
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re-aligning around digital shopper realities Percentage of brand marketers who think:
67% 54% 67% 54% need a more formalised process to measure digital shopper effects
54%
54% 80% 54% 80%
need to establish better planning processes for DSM campaigns
80% excited at the new opportunities to measure DSM
80% 45% 80% 45%
45%
getting more data with DSM than with traditional marketing efforts
45% 42% 45% 42% better linkage between media results and sales results
04
4
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the real purchase funnel
The Real purchase funnel The real purchase funnel is chaos. But increasingly, we can reveal where shoppers go at each stage of the purchase journey- and identify where the greatest patterns are to engage them along their decision path.
• Each green line represents one individual shopper • C learly, shoppers do not behave in programmed, linear modes • Shopper path is NOT a funnel
05
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the real purchase funnel
The Real purchase funnel • Brands must understand the most common purchase paths. • Entry points reveal where shopping begins. • Circles indicate most used information sources. • Color indicates degree of influence of information sources
06
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C2C.
C2C Consumers aren’t just talking to each other, they are selling, trading, advising one another.
07
the ecology of shopper dialogue
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the ecology of shopper dialogue Social media has re-written the rules of trade, opening up a world where shoppers can buy, sell, and trade...to each other.
B2b & B2C meet C2C 08
smart shopper platforms
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smart shopper platforms Access to information is making shoppers smart – really smart. Knowledge sharing sites are increasing in sophistication and number. Forget Google or Wikipedia – these sites are the future of decision making, accessible by shoppers at every step of the purchase journey. Decide.com tells shoppers if they should purchase or wait for prices to drop.
Fooducate rates food products based on nutritional and expert information.
09
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consumer curated catalogue
consumer curated catalogue Burgeoning photo sharing site Pinterest has been called a place to “shop without money.” But it’s also a self created consumer catalogue and showroom.
10
next gen marketplace
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next gen marketplace Online craft site, Etsy has provided artists and craftmakers with a thriving marketplace to sell their goods. Smart retailers like WestElm are inking deals to bring online shoppers to their stores by featuring and selling Etsy artist goods. Etsy is the 58th most popular website in the USA.
11
pop up retail 2.0
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pop up retail 2.0 A confluence of trends has produced a thriving “pop up” economy. Whereas previously pop up stores and kiosks were the domain of big brands seeking to expand their foot print, today they are led by entrepreneurial mini-preneurs. “The maker economy allows amateurs to seamlessly become professionals and test their concepts before investing in brick-and-mortar.” Nicholas Russel CEO, Ephemeral Labs
12
disintermediating brands
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disintermediating brands Shoppers aren’t just talking to each other about brands, they are creating their own products and services - and disintermediating brands in the process.
On any given night in NYC, social travel site, AirBnb has more rooms booked than the largest hotel in NYC.
• Over 10 million nights booked • 192 countries • 168 million Social Connections
13
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C2C: the new sales force
C2C: the new sales force San Francisco start up, Quri enables brands to tap a nationwide, shopperpowered mobile field force that intends to be a scaleable solution for brands to measure and optimise in-store.
Needle is a promising Fan-sourcing Sales Platform that recruits and trains passionate brand fans to provide realtime sales support via the cloud.
mobile computing + geo location + shopper field force = real time intelligence 14
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INCONSPICUOUS CONSUMPTION.
INCONSPICUOUS CONSUMPTION Increasingly retailers and shoppers are finding ways to lighten the load.
15
loyalty, brand equity “keeping up with the joneses”...
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loyalty, brand equity “keeping up with the joneses”... What do they all have in common? They are all casualties of the recession and the need for people to re-evaluate what matters most. Inconspicuous consumption, where maximising resources is a primary driver of purchase decisions, is the reality.
$27 $27 $27 $27 average monthly spend on groceries up $27 from 2007 to 2011.
two in five shoppers purchasing more store brand or generic items
three in 10 respondents cut back on bakery items, candy, desserts and magazines/books/DVDs
one in four have cut back on prime cuts of meat/seafood
16
eco packaging
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eco packaging Reinforce differentiators. In unexpected places. Ketchup is ketchup… and a way to conserve resources.
Puma’s sustainable shoe box and reusable bag looks cool and saves: • 8,500 tons less paper • 20 million Megajoules of electricity • 1 million litres less of fuel oil used and 1 million litres of water • 275 tons of plastic
17
store brand equity
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store brand equity More than half of grocery shoppers now regularly buy store brands across all categories of groceries. 2008
2009
2011
good alternative to name brands
71 74 74
quality as good as name brands
63 65 65
usually extremely good value for the money
67
70 69
some are higher quality than name brand
33
for people on tight budgets and can’t afford the best don’t feel comfortable serving to guests
20 18 17
37 38
The one exception: Pet Food
11 11 11
18
recycling at retail
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recycling at retail Thrifty IS mainstream. Goodwill Industries and Savers are aggressively expanding nationwide, causing reluctant retailers to take notice.
• Number of resale shops has increased by 7% in past year • G oodwill hit $4 billion in revenue in 2011 (10% growth since 2007) • 2 0% of people shop in thrift stores regularly, compared with 14% in 2008
19
invisible but powerful
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invisible but powerful Retailers are using lightweight and invisible technologies like Euclid Elements to better able their sales associates to engage with their best customers.
Saks Fifth Avenue teamed up with start up Euclid Elements to create a smartphone app that would be loaded on associates’ phones and would identify when loyal shoppers (who had opted in) entered the store, and would tell the associate where in the store they were located using the customer’s mobile wifi signal.
20
loyalty is not a free t-shirt
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loyalty is not a free t-shirt Shoppers want more than just free ‘stuff.’ Savvy retailers and brands are shifting from extrinsic to intrinsic rewards - rewarding all shopper interaction, instead of just purchase.
average number of loyalty programs per US household:
less than half are active:
18 8
Most loyalty members are unsatisfied with the value
of loyalty programs (grocery/drug most satisfied at only 42%)
SOCIAL CURRENCY
VIRTUAL GOODS PROGRAM OPT-IN
EXCLUSIVE ACCESS
A VOICE IN BRAND DECISIONS
RECOGNITION/FAME
21
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MAN-SUMERISM.
MAN-SUMERISM The rise of male shopping behaviour.
22
recessionary residuals
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recessionary residuals While the job market for men has recently improved, the lasting effects of the recession, have altered the traditional “provider� paradigm.
3
At the height of the recession, unemployment was more than 2% higher for men men
women 10.4
10.5
9.4 8.1
39% 39% of women out-earn their male spouses
80% 80% of men are OK with it
6.1 4.6 4.6
2006
4.7
8.6
8.4
8.3 8.1
5.4
4.5
2007
2008
2009
2010
2011
2012
23
“renaissance man” revisited
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“renaissance man” revisited Whether by choice or need, being exposed to new roles such as child care, shopping and household activities has created a new generation of men who embrace their new roles and the impact they can make.
40%
40%
40%
of men are the primary grocery shopper in the household
44%
44%
44%
of men say they equally share in house cleaning
86%
86%
86%
of men agree being a man = doing what is necessary to keep the household running
24
beyond the 9–5 grind
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beyond the 9–5 grind Men increasingly evaluate their successes in life in areas beyond career and finance.
67%67% feel their LIFE is the same or better than it was prior to the recession
42%42% feel their FINANCIAL situation is the same or better than it was prior to the recession
25
men shop differently
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men shop differently “Subscription Commerce” sites such as Trunk Club, Mr. Porter and Manpacks address men’s expanded interest in style and grooming, while P & G is setting up “Man Aisles” within physical stores. All focus on conveniently solving a need.
SHOPPING ACTIVITY: functional PURPOSE: solve a problem/need PRIORITIES: convenient, informative
26
men don’t just shop. They Buy.
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men don’t just shop. they buy. Whether by choice or obligation, men are doing more shopping than they have in the past. Disenfranchised no longer, they are empowered by technology and a growing recognition of the contributions they make. average spent “yesterday” in stores, gas stations, restaurants, or online
$59 WOMEN
$81 MEN
increase in men’s clothing sales last year
2%
8%
WOMEN’S
MEN’S
increase in men’s facial care sales last year…yes, facial care
11%
27
men research, women share
Retail TAP //
men research, women share Males use more sources on average than females, but tend to share less than females after purchase.
MALES (n=2004)
average source node usage:
FEMALES (n=2999)
17%
average number used:
15% 10.2
11.6
SMOT participation i.e. sharing information about purchase with F&F or via Facebook, Twitter, etc:
56%
61%
28
marketing to men
Retail TAP //
marketing to men At home and in store... men are increasingly shopping for themselves and their families. Empowered by technology, men have 72% 72% 72% embraced mobile and social media to conveniently inform their decisions. MAKE IT EASY: Shopping is need based for most men. The process should be simple and direct.
research price online before making a purchase
26% 26% 26%
more likely than women to scan a barcode in store
76% 76% 76%
men are favoring digital sources—and not their televisions—when looking to be entertained
BE INFORMATIVE: Product info, reviews, comparisons, availability and store information. HAVE FUN, BUT DON’T INSULT: A recent Huggies campaign backfired for implying Dads were unfit parents.
29
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Getting In Touch
Getting in touch
email us your news & views
tap@momentumww.com http://blog.momentumww.com/blogs/wwtap/
Sources: GMA/Booz, SHS, appapeal.com, Ephemeral Labs, airbnb.com, MaxPoint Interactive, 3IGInsight, Nielsen, USA Today, Colloquy, Bureau of Labor Statistics, Men’s Health, GfK Roper Reports, KSDK, Spike Network, Shopper Sciences, Scanbuy, AskMen.com Contributing Momentum Offices: US, UK