bpn 2013 retail trends

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  • 2013 retailtrends

  • 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

  • Tec-tonic Shift

  • two states: using & deciding

    What drives shoppers to say yes?

    DECIDING:USING:

  • rise of shopper marketing

    $50BAND GROWING

    ANNUAL SHOPPER MARKETING

    source: GMA/Booz

  • re-aligning around digital shopper realities

    Percentage of brand marketers who think:

    need a more formalized process to measure digital

    shopper effects

    getting more data with DSM than with traditional

    marketing efforts

    need to establish better planning processes for

    DSM campaigns

    better linkage between media results

    and sales results

    excited at the new opportunities to measure DSM

    45%80%

    67% 54%

    42%

    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

    SPOKE WITH

    SPOUSE

    RECEIVED SALESPERSON

    DEMO

    READ CONSUM-

    ER REVIEW ONLINE

  • C2C

  • 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

    source: appapeal.com

  • 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

    source: airbnb.com

  • 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

  • Inconspicuous Consumption

  • 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

    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

    $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

    2008 2009

    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

    333738

    201817

    111111

    2011

    717474

    636565

    677069

    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

    PROGRAM OPT-IN

    RECOGNITION/FAME

    SOCIAL CURRENCY

    A VOICE IN BRAND DECISIONS

    VIRTUAL GOODS

    EXCLUSIVE ACCESS

    THE NEW LOYALTY:

    8

  • Man- sumerism

  • 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

    men

    recessionary residuals

    39%

    While the job market for men has recently improved, the lasting effects of the recession, have altered the traditional provider paradigm.

    2006

    4.6

    2007 2008 2009 2010 2011 2012

    4.6 4.7 4.5

    6.15.4

    10.4 10.5

    8.69.4

    8.4 8.3 8.18.1

    women

    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

    the household1

    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.

    67% 4