achieving a successful homing offer challenges & trends.international snapshot

Achieving a Successful Homing Offer Challenges & Trends...International Snapshot...

Clive WoodgerMay 2015

Changing Consumer Mindsets and Capabilities

UK Overview...From DIY to Do it for me... 1 in 10 Brits claim to have no DIY skills - “Generation Rent”.50% now outsource labour intensive projects. Spending on DIY tools and materials has fallen 22% in real terms since 2008.But spending on tradesmen’s services has held steady.10% rise in number of self-employed tradesmen since the financial crisis.

Changing Consumer Mindsets/Capabilities

Online platforms enable consumers to connect to and review local tradesmen.Do it for me...the empowered customer...UK

Now introduced into Lowe’s 1,700 stores for staff to help customers find workmen (who are also customers).

Do it for me...the empowered customer...USAPorch.com has database of 3.2m professionals and photos of 130m home improvement projects.

Consumer perception of DIY is becoming more about design than practical skills.‘Creating’ a look or style within the home has become the key focus. Changing colour schemes, restyling rooms, creating feature walls, upcycling furniture - still mainly female. Labour intensive jobs are still predominantly male.

Source: Research by Homebase

“For every man that feels comfortable to leave DIY to someone else, there is a woman who wants to do it herself.”

“DIY is no longer about necessity, but more about the pleasure and pride someone gets from the creation of something new - a transition from fixer to maker.”

From DIY to CIY: ‘Create it yourself’

CIY online inspirationMove from old DIY Home Improvement TV programmes to new mediaSharing sites such as pinterest, houzz, instagram...

The Empowered Customer: Market Response

DIY...Homing Market Trends

58% of Europeans did a DIY project in 2014.Online research: 1 month = average time, Men - 2 days, Women - up to 6 months. Source: Research by Homebase & B&Q.

Consumer ‘Home Stylists’ ‘Professionals’

Includes smaller core of committed DIYers. Plus tradesmen (with wide mix of experience).

SOFT/INSPIRATIONAL

HARD/FUNCTIONAL

EVERYONE IS SELLING HOME TO EVERYONEHYPERMARKETS

DEPARTMENTSTORES

FASHION CHAINS

DIY

SPECIALISTSFlooring, Beds, Bathrooms, Kitchens

FURNITURE STORES

‘Home and

Living’

DISCOUNTERS

GARDEN CENTRES

PROFESSIONAL

Tesco’s Homeplus brand is disappearing in UK .Part of announced plan for 43 store closures.Future homewares totally online

HYPERMARKETS...losing in UK

Tesco’s Homeplus is the second largest retailer in South Korea - 113 stores.General home products, clothing, electronics, and sporting goods.Also fast food restaurants, travel agencies, appliance-rental firms, pharmacies, bookstores and “culture centres”.

HYPERMARKETS...winning in South Korea

DISCOUNTERS...winningPoundland is the largest single priced discount retailer in Europe.Plans to acquire competitor 99p stores in UK.Expansion under Dealz fascia in Spain and Ireland.

Has introduced ‘DIY:time’ range of 200 items that competitors sell for 5-10 times the price.Promoted by celebrity Tommy Walsh.

DEPARTMENT & HOME STORES FASHION CHAINS

HOME AND LIFESTYLE...increased competition

FURNITURE STORES...lifestyle

Innovative ‘Breakfast in Bed’ Pop Up Cafe in London.

IKEA is the world’s biggest furniture retailer.Focus on online investment and shopping centre expansion.Testing new formats including smaller shops.

FURNITURE STORES...digitalHome 24German based ecommerce furniture retailer. Operates in 7 European countries.Sales growth escalation.Customer numbers doubled to 1.39m.

“We deliver all products free-of-charge and if customers are not satisfied with their choice, we will pick the product up – also for free.”

GARDEN CENTRES...homingTesco acquired Scottish based Dobbies in 2008.Expansion to 36 stores. Plans to become the leading national garden centre brand.

SPECIALISTS...focused advantageTopps Tiles - UK’s Biggest Tile and Wood Floor Specialist.Product diversification.Contemporary brand positioning.Dual target market strategy - consumer and professional.

Sales space optimisationHabitat - Introduction of branded concessions - up to 50 by 2016.Argos - 20 digital concessions opened - further 80 planned by 2016 .100m2 footprint.Plus product branded areas eg Schreiber.

DIY...store closures

Store downsizingHomebase UK sales decline by 0.7% to Feb 2015.1 in 4 of 323 branches will close by 2019.

Kingfisher 7.5% drop in annual profits, sales fell by 1.4% to to Jan 2015.Single biggest market, France, struggling due to weak demand.

“Sharp” decisions – closure of 1 in 6 B&Q’s over next 2 years, others will reduce in size.Analyst speculation that B&Q brand could be replaced by Castorama.

DIY...store closures

Closure of You Can Do it Initiative

Market Adaptation?Struggle to interest China’s growing middle class in home improvement.Not seen as leisure activity - low wages means easy to employ people.Kingfisher had adapted business model to the “Do it for Me” culture.Offered decorating, kitchen and bathroom-fitting services to owners of new but unfinished apartments.Now selling 70% stake in B&Q China to Wumei Holdings for £140m.

DIY...China

US chain Home Depot shut its big box China stores in 2012

DIY/PROFESSIONAL...multi-channelUKScrewfix is UK’s largest multi-channel supplier of trade tools, plumbing, electrical goods, bathrooms, kitchens.Sales increase by 25.5% to £835 million.Digital and mobile innovation.Stores total now 395 - further 60 in 2015.

International4 pilots in Frankfurt + website offering ‘click & collect’. Country-wide next day delivery throughout Germany.Further international expansion planned.

Omnichannel Synergy...The Digital Customer...A Seamless Experience?

46% of Argos sales now start online.25% of total sales are from phones and tablets.Investment in digital – website, mobile/tablet and app.Tablets to browse, see videos, read reviews, order and purchase.Concessions in Sainsburys and Homebase.Click & drop and Click & collect agreements with Ebay.

ARGOS...from catalogue showroom to multi-channel

New Heart of House brand offers over 1,600 traditional and contemporary furniture and homewares products.

Website Development and Innovation

French DIY chain Mr Bricolage has launched its La Dépanne.

First community-based DIY platform for people who want to rent materials.Aimed at attracting a younger audience.

B&Q has launched ‘Click, Pay & Collect’ on 14,000 products through new diy.com with better online content. Transacted online sales, including home delivery, are making encouraging early progress, growing 63%.

Digital customisation

New app features include the ability to browse and refine entire product collection, check stock and reserve to stores nationwide + find nearest store via GPS.Expected to drive 50% of future Homebase traffic.

Omnichannel Synergy - The Digital Customer Experience

Уютерра: Аудит и бенчмаркинговый анализ стр. 21

Входная группа

•Следуетболееэффективно использоватьвитрины

•Еслиместоограничено,следует использоватьвитриныдля увеличенияприсутствиябренда•Шрифтнаписанияназваниядолжен бытьболеежирным,чтосделает егоболееэффектным

•Необходиморационализировать использованиеслогановидескрипторов

Yuterra...integrating the physical & digital offer


Входная группа

•Следуетболееэффективно использоватьвитрины

•Еслиместоограничено,следует использоватьвитриныдля увеличенияприсутствиябренда•Шрифтнаписанияназваниядолжен бытьболеежирным,чтосделает егоболееэффектным

•Необходиморационализировать использованиеслогановидескрипторов


Навигационные вывески и указатели

Посуда для приготовления

•Витьеватый,узорчатыйстиль, используемыйдляобозначения отделов,несочетаетсясостилем логотипа

•Шрифт,используемыйв навигационныхвывескахи указателях,слишкоммал, чтоделаетеготрудночитаемым

•Сгруппированныеиконкитрудно различатьсбольшогорасстояния


Навигационные вывески и указатели

Посуда для приготовления

•Витьеватый,узорчатыйстиль, используемыйдляобозначения отделов,несочетаетсясостилем логотипа

•Шрифт,используемыйв навигационныхвывескахи указателях,слишкоммал, чтоделаетеготрудночитаемым

•Сгруппированныеиконкитрудно различатьсбольшогорасстояния

In-store, online, magazine, catalogue, YouTube channel, ClubCard…

Strong website – Lessons for the store experience

– Magazine– Catalogue– Proactive social media

Achieving synergies of message and media across all channels

Reviewing customer touchpoint strategy – realising multimedia store synergies

Multichannel Touchpoints

Issues

Action

Proactive Social Media

Creative social media strategy

Issues

Action

Reflect in store experience and interactions

Existing brandmark

Brandmark typestyle should be more bold to add extra impact especially on fascias etc.

Brandmark icons and typestyle don’t fit together stylistically

the brush is the only icon that bleeds out the top of the square which makes it stand out

contemporary and sophisticated typestyle

suggested heavier weight

colourful icons are playful and fun

• There are two different graphic styles that don’t quite fit together. The typestyle is contemporary, clean and sophisticated, yet the icons

although friendly are slightly childish with the teddybear and bright primary colours being the most identifiable features.

Existing brandmark

Existing brandmark

Brandmark typestyle should be more bold to add extra impact especially on fascias etc.

Brandmark icons and typestyle don’t fit together stylistically

the brush is the only icon that bleeds out the top of the square which makes it stand out

contemporary and sophisticated typestyle

suggested heavier weight

colourful icons are playful and fun

• There are two different graphic styles that don’t quite fit together. The typestyle is contemporary, clean and sophisticated, yet the icons

although friendly are slightly childish with the teddybear and bright primary colours being the most identifiable features.

Option 5: Simple evolution of existing brandmark

Simple evolution of existing brandmark

Yuterra

г. Химки, Ленинградское шоссе, вл. 5, ТЦ "Лига"

Уголок потребителя

Добро пожаловать!Этот товар для Вас мы доставимбесплатно

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г. Химки, Ленинградское шоссе, вл. 5, ТЦ "Лига"

Уголок потребителя

Добро пожаловать!Этот товар для Вас мы доставимбесплатно

Дарите красивые подарки с нашей услугой по упаковке

Еще больше товаров на нашем сайте: yuterra.ru

АКЦИЯ

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Customer Service...The ultimate differentiator

Customer Service - The instore experience

UK Home & DIY sector ranked as the worst for customer service.40% of consumers believe Home & DIY stores need significant improvement.25% believe service is the most important factor.70% have abandoned purchases & walked out due to a lack of assistance.90% then purchased from a competitor.Potential customers will only linger for 5 minutes before heading out of the shop if store staff are inattentive.Source: Indyme research (real-time shopper engagement company)

UK is the biggest user of click and collectUse expected to double within 3 years Shift from centralised to localised fulfilment – especially for high volume selling goods

Seamless Service Touchpoints: Click & Collect

Australia’s Woolworths Ltd partners with eBay Inc for click and collect services aimed to increase instore foot traffic

Speed... flexibility... convenience

“Leveraging more value from physical stores”

Home Depot is the largest USA retailer to accept Apple Pay.Many other retailers are planning to go with yet-to-be-launched CurrentC.

Seamless Service Touchpoints: Mobile Payment

Speed... flexibility... convenience

Service InnovationLowes, California are introducing 5 foot tall robots, called OSHbots who greet customers at the door and ask them what they need.

Customers communicate their needs verbally or by selecting items from a touch-screen menu.

Customers show OSHbot what they are looking for by displaying an item in front of the robot’s 3D scanner.

“Half the U.S. workforce is at risk of being replaced by mobile robots and smart computers within the next two decades.

Retail jobs are among the occupations most at risk.” University of Oxford

Service Innovation

Creating Brand Synergy™

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