bpn 2013 retail trends
Post on 26-May-2017
Embed Size (px)
TECTONIC SHIFT: Forget consumers. Forget customers. Today its about the shopper.
C2C: Consumers arent 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 behavior
two states: using & deciding
What drives shoppers to say yes?
rise of shopper marketing
ANNUAL SHOPPER MARKETING
re-aligning around digital shopper realities
Percentage of brand marketers who think:
need a more formalized process to measure digital
getting more data with DSM than with traditional
need to establish better planning processes for
better linkage between media results
and sales results
excited at the new opportunities to measure DSM
source: SHS Digital Shopper Marketing Benchmarking Interviews of CPG Executives, 2011
the real purchase funnelThe 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
Clearly, shoppers do not behave in programmed, linear modes
Shopper path is NOT a funnel
the real purchase funnelBrands 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
USED A SEARCH ENGINE VISITED RETAILER / STORE WEBSITE
COMPARISON SHOPPED ONLINE
ER REVIEW ONLINE
the ecology of shopper dialogueSocial 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 C2CB2B & B2C,meet C2C
smart shopper platforms Access to information is making shoppers smart really smart. Knowldege 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.
Here, Decide.com tells shoppers if they should
purchase or wait for prices to drop.
Fooducate rates food products based on nutritioinal and expert information.
consumer curated catalogueBurgeoning photo sharing site Pinterest has been called a place to shop without money. But its also a self created consumer catalogue and showroom.
next gen marketplaceOnline 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
pop up retail 2.0A 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 entreprenurial 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
disintermediating brands Shoppers arent 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
C2C: the new sales forceSan Francisco start up, Quri enables brands to tap a nationwide, shopper-powered mobile field force that intends to be a scaleable solution for brands to measure and optimize in-store.
Needle is a promising Fan-sourcing Sales Platform that recruits and trains passionate brand fans to provide real-time sales support via the cloud.
mobile computing + geo location + shopper field force = real time intelligence
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 maximizing resources is a primary driver of purchase decisions, is the reality.
average monthly spend on
groceries up $27 from 2007 to
two in five shoppers
purchasing more store brand or generic items
three in 10 respondents cut back on bakery items, candy, desserts and
one in four have cut back on
prime cuts of meat/seafood
$27source: MaxPoint Interactive, conducted by 3IGInsight
eco packaging Reinforce differentiators. In unexpected places. Ketchup is ketchup and a way to conserve resources.
Pumas 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
store brand equityMore than half of grocery shoppers now regularly buy store brands across all categories of groceries.
the one exception:Pet Food
Strong perception of store brand quality and fewer think store brands for those on tight budget
good alternative to name brands
quality as good as name brands
usually extremely good value for the money
some are higher quality than name brand
for people on tight budgets and cant
afford the best
dont feel comfortable
serving to guests
source: Nielsen Homescan Panel Views Survey
recycling at retailThrifty 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
- Goodwill hit $4 billion in revenue in 2011 (10% growth since 2007)
- 20% of people shop in thrift stores regularly, compared with 14% in 2008
source: USA Today
invisible but powerfulRetailers 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 customers mobile wifi signal.
loyalty is not a free t-shirtShoppers 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.
Most loyalty members are unsatisfied with the value of loyalty programs (grocery/drug most satisfied at only 42%).
18average number of loyalty programs per US household: less than half are active:
source: Colloquy: The Art and Science of Building Customer Value, April 2011
A VOICE IN BRAND DECISIONS
THE NEW LOYALTY:
of women out-earn their male spouses1
of men are OK with it280%
At the height of the recession, unemployment was more than 2% higher for men3
While the job market for men has recently improved, the lasting effects of the recession, have altered the traditional provider paradigm.
2007 2008 2009 2010 2011 2012
4.6 4.7 4.5
8.4 8.3 8.18.1
sources: 1: Bureau of Labor Statistics, May 2012; 2 Mens Health ManScan Study, conducted in partnership with GfK Roper Reports, released March 2012; 3: Bureau of Labor Statistics
of men are the primary grocery shopper in
of men say they equally share in house cleaning2
of men agree being a man = doing what is
necessary to keep the household running3
renaissance man revisitedWhether 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% 44% 86%
sources: 1: KSDK, St. Louis, MO study released Feb. 2012; 2: Mens Health ManScan Study, conducted in partnership with GfK Roper Reports, released March 2012; 3: Spike Networks State of Men study, released April 2012
feel their LIFE is the same or better than it was prior to the recession
feel their FINANCIAL situation is the same or better than it was prior to the recession
beyond the 95 grindMen increasingly evaluate their successes in life in areas beyond career and finance.