the consumer is changing...trends 1 spending money preferences trips spending time consumer...
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#RIC19
The consumer is changingP E R H A P S N O T H O W Y O U T H I N K
#RIC19
Panelists
Kasey Lobaugh Delloite
@Klobaugh
Agathe Westad Optimove
@Optimove
Doug Zarkin Luxxotica Retail @Dougzarkin
Virginia Wong L Brands
@VirginiaWong
Brendan Cahill Penguin Random
House @BrendanJCahill
#RIC19 3
Consumers are shifting from products to experiences.
Consumers are time-starved.
Consumers are no longer loyal.
4
Ethnicity
Income
Geography
Generation
CONSUMER DEMOGRAPHIC TRENDS
1
Spending Money
Preferences
Trips
Spending Time
CONSUMER BEHAVIORS2
5
CaucasianLatino AsianBlack
Who are our consumers?
Sources: US Census Bureau, 2017 Report, Pew Research Center
Baby boomers
75%
9%
10%6%
Millennials
56%21%
14%
9%
6
How is consumer health?
Sources: Deloitte Health and Wellness Progress Report; Center for Disease Control and Prevention
2.5 yearsbetween 1997 and 2017
(from 76. 1 to 78.6) Obe
sity
Rat
e
23%
27%
32%
36%
40%
1994 2000 2002 2004 2006 2008 2010 2012 2014 2016
O v e r w e i g h t / O b e s i t y R a t e f o r A d u l t s o v e r T i m eA v e r a g e L i f e E x p e c t a n c y
7
N E T C H A N G E I N D I S C R E T I O N A R Y I N C O M E ( 2 0 0 7 - 2 0 1 7 )
How are consumers doing financially?
Lower income
Middle income
Higher income
L O W M I D D L E H I G H
2 0 0 7 2 0 1 7
$5
$(5)
$10
$15
$K
Sources: US Census Bureau, 2017 Report, Bureau of Labor Statistics
8
$K
6
7.5
9
10.5
12
1990s 2000s 2010sYounger than 35 years
N E T W O R T H O V E R T I M E ( i n f l a t i o n a d j u s t e d )
Sources: US Census Bureau, 2017 Report
How are Millennials doing financially?
9
What is happening in Retail?
Sources: Various annual reports
1 Year Revenue Growth
-2%
0%
2%
5%
7%
9%
Balanced retailers saw -2% revenue
growth over this last year
5 Year Revenue Growth
0%
23%
45%
68%
90%
Premier retailers have seen 40x more revenue growth
than that of Balanced retailers over the last 5 years
10
W H E R E T H E Y
G O
H O W T H E Y S P E N D T H E I R M O N E Y
H O W T H E Y S P E N D
T H E I R T I M E
W H AT T H E Y T H I N K
11
How are consumers spending their money?
F O O D 12% 12%
H O U S I N G + E D U C AT I O N 29% 29%
E N T E R TA I N M E N T 5% 4%
A P PA R E L 4% 2%
1 9 9 7 2 0 1 7
H E A L T H C A R E 5% 7%
Source: Bureau of Labor Statistics
12
Who is spending on experiences?
Source: Bureau of Labor Statistics, Deloitte CCI Transaction Data Index
20%
35%
Low Middle High
M i l l e n n i a l S p e n d o n E x p e r i e n c e s b y I n c o m e ( 2 0 1 8 )
20%
35%
Age Income
$0 - 35,000
$35,001 – 80,000
$80,001 +
Millennials
Gen X
Baby Boomers
S p e n d o n E x p e r i e n c e s b y I n c o m e a n d b y A g e ( 2 0 1 8 )
13
How are consumers spending their time?
In 2017 76% of consumers reported having less or equal amount of free time
Decrease in hours worked per person since 1960
9% 76%
Source: Deloitte Change in Customer Survey, 2018
14
Where are consumers going? OVERALL FOOT TRAFFIC (MILLIONS)
Hospitality, Travel, and Entertainment Retail Total
1,865
1,013
475377
1,752
995
409349
2017 2018
Source: Deloitte Location index Data
15
What do consumers think matters most?
P E R S O N A L I Z E D E X P E R I E N C E
C O R E V A L U E SC O N V E N I E N C EP R O D U C TP R I C E
v
Source: Deloitte Consumer Change Study 2018
16
So why does it feel like there is so much change with the consumer? T H E N N O W
H O M O G E N O U S C O N S U M E R B A S E
H I G H B A R R I E R S T O E N T R Y
F E W , AT - S C A L E R E TA I L E R S
I N C R E A S I N G L Y H E T E R O G E N O U S C O N S U M E R B A S E
L O W E R B A R R I E R S T O E N T R Y
M A N Y C O M P E T I T I V E R E TA I L E R S
17
Panelists
K a s e y L o b a u g h C h i e f R e t a i l I n n o v a t i o n O f f i c e , D e l o i t t e C o n s u l t i n g
V i r g i n i a W o n g D i r e c t o r o f R e t a i l S t r a t e g y a n d G l o b a l T r e n d s , L B r a n d s
B r e n d a n C a h i l l V P P R H L a b s , P e n g u i n R a n d o m H o u s e
D o u g Z a r k i n V P – C M O P e a r l e V i s i o n
A g a t h e W e s t a d D i r e c t o r o f N e w B u s i n e s s , O p t i m o v e
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Thank you.
#RIC19
Congrats to
Doug Zarkin
#RIC19
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