the ultimate retail brand experience - bogota 2015
TRANSCRIPT
The Ultimate Retail Brand Experience
The Empowered Consumer ...Transforming Retail
Retail Brand Experience ...Transforming Touchpoints
Changing Market Dynamics
Retail Transformations...Snapshot Transformation Challenges
Strategy – Branding – Retail Design – Graphic Design Architecture - Visual Identity – Interiors
Digital Concepts - Point of Sale – Merchandising Design Implementation
We create great customer experiences...
...across a wide range of sectorsPharmacy
Footwear
Food
Banks Shopping Centres
Fashion/Accessories
DIY
Homing
Cash & Carry
Children
Electrical
Online Retail
Co!ee Shops/Restaurants
Sports
Duty Free
Automotive
“In a world where screens are woven into our lives, there are more consumer-initiated touch points.”
The Empowered Consumer... ...Transforming Retail
The balance of power has shifted to consumers - they are setting the agenda for retailers to follow”
The empowered consumer...
REPUTATIONRespect me: Focus on consumers, not on devices -
create a personalised experience
KNOWLEDGE Know me:
UNDERSTANDINGRecognise me:
ENGAGEMENTInterest me:
Appealing to the empowered consumer mindset
Key influence generation
“By 2015 Millenials will be 75% of the workforce and will influence 74% of buying decisions”
“Thanks to globalization, social media, the exporting of Western culture and the speed of change, Millenials worldwide are more similar to one another than to older generations within their nations.”
Ways to win the Millennials
HELP THEM DO SOMETHING MATCH THEIR LIFESTYLE
FEEL AUTHENTIC ENCOURAGE PARTICIPATION
DISRUPT THE STATUS QUO
ENGAGE INSTEAD OF ADVERTISE
“The emerging millennial generation in Colombia comprises over 16 million people who are changing the way businesses promote their brands”
Colombia’s Millennial Momentum
Internet Use in ColombiaRanks third in Latin American internet use Brazil - 118.6m, Mexico - 56.1m, Colombia - 31.6m (some sources say 28.6m)
Increased use of mobile internet24m Colombian users in 2014 58% increase compared to 2013.
Promoted by government “Widespread adoption of the internet and the development of a nationwide digital ecosystem.”
Sources: emarketeer and comScore
Higher than average monthly usage1,404 minutes a month online (Latin American average is 1,298, European average is 1,659).
No 2 in Latin American ‘page consumption’Per visit, Colombians consume 37 pages of Internet content (Brazil is no 1).
Online purchases 52% of Colombian Internet users made an online purchase of a good or service In 2014.
Social MediaPer day, Colombians spend 13 minutes on Facebook (over 93% of social media time is spent on Facebook with 54 million Facebook likes a day), 6 minutes on YouTube and 68% use Twitter at least every couple of days. Sources: emarketeer and comScore
Internet Use in Colombia
Brand Touch points
Awareness....Promise
Brand Synergy
Customer Visit....Journey Afterglow...Satisfaction
brand naming visual identity
signatures marketing communications
architecture exteriors
environments
planning
circulation zoning
merchandising
communication
signage
point of sale service
o!er...products...services...
attributes...’known for’
...added value
values....ethos
image...personality...profile
Touchpoint SynergyCreating positive market di!erentiation
ValueMore for LessBargain huntingA di!erent kind of “guilty pleasure”Price led but value drivenpragmatic .. careful… planned shopping“Constrained consumers”The best quality at the best priceA good ‘deal’ … every time you shopQuality …Choice …Experience … environment/service /process
Customer Mindsets, Motivations and Lifestyles
Customer Mindsets, Motivations and LifestylesConvenienceFast...Simple...Easy...AccessibleWhat I want When I want itHow to get it“Total convenience...to your door...to your store”I want it now!
Home FocusLiving..Entertaining...Relaxing...Working Creativity, Aspiration, Self ImageIndulgence at home‘Eating out at home’ New products for creative home cookingPremium ranges - gourmet and restaurant dishes
Customer Mindsets, Motivations and Lifestyles
SustainabilityEnvironmental...ethical...social...Consumers want to feel ‘good’ about what they buyHow was it procured, grown, reared, caught, manufactured, transported?People...Planet..ProfitEmergence of the ‘principled consumer’Did it harm the environment, people, communities?Was it ‘Fair Trade’? CSR industry - di!erentiated by values‘Look behind the label’ …. M&S
Customer Mindsets, Motivations and Lifestyles
Connectivity
Interactive engagement with customersCreating communitiesCooking clubs, fashion wardrobes, beauty ideas...Lessons, demonstrations, events...
Customer Mindsets, Motivations and Lifestyles
FreshBack to basics – Fruit & Vegetables
Less packaged / processed food
Smoothies / packaged fruit snacks
Multi Brand StrategyX5 Group: Pyatyorochka Discounter.Creating clarity, making it easier and more e"cient
Hypermarkets Lifestyle pitstops / centres - “everything for your life”
More than functional warehousesProviding services and non food -as well as foodActing as community destinations
Retail theatre...events / workshops /parties
Creating a Brand Personality...SignaturesBrand identity audit
- BRANDMARK CHARACTER NOT DESCRIPTIVE OF OFFER- NEEDS APPROPRIATE PERSONALITY - TYPEFACE SHOULD LOOK MORE FRIENDLY
Creating a distinctive personalityShokoladnitsa: Contemporary, social, distinctively Russian. Engaging customer graphics.
“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’
Yuterra: Merchandising diverse product groups - soft, hard, large, small......seasonal flexibility
CB©*GLCL
Design development
Yuterra: Bringing the physical environment in line with the digital social media experience
Clear, attractive product worlds, easy shopping
Interactive customer engagementYuterra Colors: A new digital brandProvides inspiration and invites customers to share ideas/solutions
Primark: fashion-forward designs, bargain prices
“It’s everyone’s fashionable guilty pleasure, a retailing powerhouse that’s perfected the art of mixing low prices with high fashion.”
“Stronger, on-trend ranges that have made it a clear winner in the ‘hauling’ trend, which sees customers sharing pictures and videos of their shopping sprees at value retailers.”
No digital channels but 278 branches
Budget Fashion...simple graphic led kit of partsConcept Club: 160 stores, romantic, classic, seasonal party zones
Budget Fashion...repositioning focused o!erJeans Lab: New name -“research expertise” industrial environment
Budget Fashion...repositioning focused o!erJeans Lab: New name -“research expertise” industrial environment
Contemporary multibrand destinationFashion Galaxy: High fashion experience, inspirational graphics/media
Contemporary multibrand destinationFashion Galaxy: High fashion experience, inspirational collateral
Image di!erentiation, distinctive name and self service o!erSelect 25: High density, contemporary identity, packaging and point of sale
Image di!erentiation, distinctive name and self service o!erSelect 25: Memorable graphics, communication and packaging
Jewelry rebranding to update and repositionValtera: Contemporary new store concept with distinctive icon
Bronnitsky: Creating a strong brand signature and environmentJewelry rebranding to update and reposition
Balancing pharmacy and health an beauty36.6: Emotive name, distinctive identity, store concept and communication
Destinations where people meet, eat, relax, indulge, work, rest, play... & shop...
A community venue to promote wellbeing & lifestyle activities
A place where people want to be!
Kaleidoscope, Moscow
Shopping Centres...Place brands
Digital & Physical Channel ConvergenceSeamless shopping experience...accessible, available and deliverable
Touchpoint Optimisation Multiple and consistent across key channels
End-to-End Brand ExperiencesMore emphasis on complete customer solutions...encompassing pre-purchase, point-of-purchase and after-purchase
Enabling Technology to Inspire and Captivate
messaging, iBeacons...social media, loyalty programs...
Physical/Digital
ExperienceExperiential Retail
Innovation and EnhancementInnovative ways to enhance the buying experience:
Engagement: tablet and interactive displays, social media campaigns, community eventsEntertainment - shows, festivals, celebrity visitsEducation - classes, demonstrations, product events
StoresDownsizing Large format stores investing in smaller, “bite size” footprints...showcasing
Modular Flexibility Large format stores targeting modular flexibility inside the box and multi-channel reach around the box.
Portfolio Focus
Proliferation of Distribution and Marketing ModelsPop-up stores, virtual stores, retailer partnering with service/experience providers...spas, cruises, hotels...
Niche Retailing
footprint, smaller store count, more narrowly focused concepts
GlobalGlobal Multiples Expansion Accelerated development into emerging markets to take advantage of rapid middle class growth and retail modernization
GlocalizationInternational companies aiming to combine global scale with excellence at local execution...and global market savvy and sourcing with local market delivery and know-how.
Product O!er
One-Stop Lifestyle ProvidersThe new one-stop shop will focus on customer segments with edited
Breaking the 80/20 Rule
more of what “suits me.”
No Limitations of Shelf Space An increasingly digital retail environment allows shoppers to have
PersonalizationMass CustomizationUnprecedented levels of customer connectivity—pre-manufacture, pre-shop, during shop, post-shop... engaging consumers in the development and customization of their own products, media and shopping experience.
Premium ServicesTreating customers as guests - not just top-end retailers. Personalized and exclusive events and services driving incremental purchases and building loyalty.
Personalized Shopping Technology
virtual try-on options, instore robots
Information SharingValue chain will become more intimate. Consumers will share information with retailers and suppliers but expect to get more value in return.
Move Away From Uniformity Retailers will expect to achieve more of their growth from new concepts than
Di!erentiation/ExclusivityPrivate/own brands satisfy niche opportunities, enable customization and keep pace with trends. Retailer umbrella brands allow ownership of an expanded range of products and services.
Interchanging ChannelsOnline only retailers are opening up physical stores
Manufacturer Brand PowerThrough the internet consumers have direct access to suppliers avoiding the retail/distributor
Growth
Total Convenience
Faster RetailingFast fashion, limited-time-only products, flash sales, pop-up stores, self-
Amazon and Google same day delivery, drones...
Services Expansion
Service
The aim should be to achieve a more immersive, more personal and more seamless experience for the customer.
The Digital/Physical connection: The challenge for retail brands
Staying Relevant….
Creating Positive Di!erentiation
O!er Adaptability …to market … to location
Digital / Physical Synergies
Format Scalability… Roll out expansion…downsizing …. optimum ROI Flexible specification cost models …. flagship to basic graphic ‘dressing’ upgrade
Positive Brand Culture …our people make the di!erence … Internal communications …organisation … workplaces which inspire and engage...
Transformation Challenges
Brand Synergy"
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