a summary of the biggest retail show in the world

1. For MRM Paris @
« Retail’s Big Show »
Executive Summary, 31/03/2011

2. What’s the RBS?
- Annual convention and expo in NY, 09.-12.01.2011
- Held for the 100th time this year, since 1911
- 22.000 retail professionals from 82 countries
- Largest delegations from Brazil, Canada, France, UK and
Mexico
- Organized by the NRF – the National Retail Federation
- The world’s largest retail organisation
2

3. Key-Topics
1. Shopper Centric Retailing
2. Customer Experience
3. The Mobile Shopper
4. Multichannel
5. Sector Challenges

4. 1
01. Chapitre
Shopper Centric Retailing
4

5. Why we talk about this
Once upon a time the
BRANDS were king in the
shops and it was THEM
driving the customers in the
shops.
It was a manufactureres
world.
5

6. Why we talk about this
In the 80s/90s a power shift
took place: retail
consolidation for growth,
discounting as new
phenomenon, new power in
negotiations with the
producers, development of
own promotions, then own
brands and finally own
relationships with the
customers

7. Why we talk about this
Today the manufactureres
and the dealers are in a
conflict against each other
and fight for the
relationship with the poor
consumer

8. What is SCR?
- Focus on the shopper – not on the conflict between
manufacturer and retailer
- Joined forces, combined capabilities, collaboration!
- share learnings, create single basis and team up for
activation
8

9. What is SCR?
« Given how savy today’s shoppers are and their
shifting priorities, it is essential for retailers and
manufacturers to work together to intelligently
deliver targeteg solutions! »
9

10. What is SCR?
Shopper Activation Relevance
Insights
Right products
Loyalty cards
+! Promotion
Merchandising
=! Power
Loyalty
or credit card Marketing Sales
info Operations Profit
= retailers = supplier
input collaboration
10

11. Tesco plc (LSE: TSCO) is a global grocery and general merchandising
retailer headquartered in Cheshunt, United Kingdom.[4] It is the third-
largest retailer in the world measured by revenues (after Wal-Mart and
Carrefour) and the second-largest measured by profits (after Wal-Mart).
[5][6]
It has stores in 14 countries across Asia, Europe and North America and is
the grocery market leader in the UK (where it has a market share of
around 30%), Malaysia, the Republic of Ireland and Thailand.[7][8][9]
Case: Tesco
11

12. Case: Tesco
- The Tesco card: « What scares me is that you know more
about my customers after three months than I know after
30 years », says a manufacturer
- Who are my shoppers, where when at what do they buy?
- Sharing the data, knowledge and technology with the
suppliers to develop relevant promotions together
12

13. Target Corporation (simply known as Target) is an American
retailing company that was founded in Minneapolis, Minnesota in
1902.
Target is the fourth largest discount retailer in the United States,
behind Walmart.[6][7] The company is ranked at number 30 on the
Fortune 500 as of 2010. On January 13, 2011, Target announced its
expansion into Canada.
Case: Target
13

14. Case: Target
- Target is a discounter « expect more, pay less »
- Call their customers « guests » (ex. Contagious
Magazin: « people – formally known as consumers »)
- Wanna know their guests und understand their diversity
- What influences their shopping behaviour (e.g. repeated
purchase)
- And develop tangible and meaningsful actions for their
teams to execute
- What counts is their wants and needs, building guest
categories to drive relevancy in offers, e.g. healthy
living (implicarion on products, in what locations, etc.)

15. Macy's is a U.S. chain of mid-to-high range department stores in New York. In
addition to its New York flagship store, the company has designated additional
regional flagships in several other major urban centers and as of January 30, 2010
operates a total of 800 stores in the United States.[1] In addition, Macy's operates
eSpot ZoomShops kiosks in over 300 store locations, selling consumer electronics.
The company produces the annual Macy's Thanksgiving Day Parade, a noted
parade which has been held in New York City annually since 1924. The company
also sponsors the city's annual Fourth of July fireworks display, beginning in 1976.
The chain competes with Belk, Nordstrom, Dillard's, Sears, J. C. Penney and Kohl's.
Case: Macy’s
15

16. Case: Macy’s
- Discussion about the marketing departments taking more
responsibilities for its own technologies
- Integration of « Marketing Technologists » in the
marketing teams
- Objective: gain a 360 degree view of the consumer
- Owning the insights
- Handling and profiling of own database
- Replacing 10 different mailings with 30.000 versions of
one single direct mail piece, in order to be more
relevant
16

17. 6 Keys to Success
1. Right objectives – it’s not about monetizing data but creating
more targeted approach
2. Single shopper view – retailer and manufacturere, same data,
same shopper, same target
3. Insights AND activation – build relevant promotions based on
the insights
4. Executive commitment – this is not bottom up
5. Organizational change
6. Effective collaboration

18. 2
Consumer Experience
18

19. Start Consumer Centric
- Shopper Centric Retail is the strong focus of this years RBS
- Of course also the development of a consumer
experience in retail starts here
- What do the consumers want?
19

20. Need 1: Value
It is not the price only >>>
Make consumers believe that the
product is worth more than they
paid for.

21. Need 2: Discovery
Discovery = creating wow experiences for consumers ready to
buy expensive gadgets like the iPad or the Kindle >>>
There is fashion in everything.
There is fashion in tyres.
There is fashion in refridgerators.

22. Mood in Food
Supermarkets are amongst the first to
having understood how a recreation of
their POS will influence their
positioning, allow them to fight
discount and insist on higher prices

23. There are designer melons
23

24. And couture cucumbers
24

25. Playing with colors and ressources
25

26. Let’s them be true to their brand
26

27. Return to craft and tell stories
27

28. And puts the product in the focus

29. Mood in Food
And there are
untraditional retail
models

30. Carrefour S.A. (Euronext: CA) (French pronunciation: [ka fu ]) is a French
international hypermarket chain. Headquartered in Levallois-Perret, France,
[2] Carrefour is the one of the largest hypermarket chains in the world (1395
hypermarkets at the end of 2009, this is nearly a half of the quantity of US-
located Wal-Mart hypermarkets),[citation needed] the second largest retail group in
the world in terms of revenue and third largest in profit after Wal-Mart and
Tesco. Carrefour operates mainly in Europe, Argentina, Brazil, China,
Colombia and in the Dominican Republic, but also has shops in North Africa
and other parts of Asia, with most stores being of smaller size than
hypermarket or even supermarket. Carrefour means "crossroads" in French.
Case: Carrefour
30

31. Case: Carrefour
- Hypermarkets are losing share to small shops and the
internet, better prices and better assortment
- How to make the hypermarket visit an experience?
- What differentiates the visit versus the internet is the
senses, look/feel/touch need to play a key role in the
creation of an offline experience
- Introducing baby sitting, hair cut and technology
(e.g. shopping consultants)
31

32. Idea: Partnerships
Guideline: Do what you can do
best and involve others to to things
you don’t know doing.
32

33. supermarkets invite chefs
to cook for their clients
33

34. Carrefour does entertainment corners
with Virgin
34

35. JCPenny gains ground on cosmetics
with Sephora
35

36. Wallmart on beauty with L’Oréal
36

37. Metro Group developing shelf vision 2011
with Danone
37

38. The 8 C’s model of « McMillan/Doolittle – The Retail Experts »:
Building a great customer
experience across time and
03. Chapitre
touchpoints
38

39. 8 C’s
Ventes
Consistency Connection
Clarity
Control
Choice Convenience

40. Clarity
About what you stand for, the right positioning
Whole Foods‘ customers are passionate ambassadors and
the retailers’ well-defined positioning, helps them stay
relevant in the marketplace. The brand stands for
something that’s of high value to their targeted customer
and this ensures lasting value.

41. Convenience
the right location and channels, available anytime and
anywhere according to their needs
Walgreens get this right by being close to their customers
anytime, anyplace. They’re available whenever, wherever,
and however, through all channels, including their drive
through drugstores.

42. Choice
the right selection, manage assortment according to needs
Crate&Barrel, with their great merchandise selection and
their appealing presentation of that merchandise, check the
choice box. At the same time their pricing and value is
always appropriately communicated – making getting
‘choice’ right, look effortless. It’s fantasy of ownership
delivered.

43. Communications
the right design and layout, leverage every touchpoint to
stay engaged with your consumers
Covering all the bases and touching all the senses –
Williams Sonoma gets full marks for easy store navigation,
great signing at multiple levels and great store design.
Furthermore, their clear product signing means customers
are clearly communicated with.

44. Cast
The right people/team to deliver on the promise of the
brand
The Container Store hires and develops brand zealots, who
live the lifestyle and love the product. They invest heavily
in training and hire, and coach their team to deliver to the
highest of customer expectations.

45. Control
It is the CONSUMERS who need to be able to be in control
of relationship and process
Giving customers the option to have their meal made to
order, customized online and picked up in store is a key
strength of Chipotle.

46. Consistency
across time, place and channel
Using exceptional precision across all functions and
channels of customer experience and organization, J.Crew
gets consistency right.

47. Connection
Maintaining the engagement after the transaction to build
a lifetime experience and to start the right relationship
Sephora uses events, mobile apps, and social networks to
stay front of mind with their customers.
47

48. 3
The Mobile Shopper
48

49. Some Data
mCommerce in the US is at
2,2 Mrd USD in 2010
49

50. Some Data
Driven by smartphone
coverage, currently at ca. 50%
50

51. Some Data
In contrary only 4,8% of retailers
have mobile shopping sites
51

52. Some Data
73% of mobile shoppers favour
using their smartphone to handle
simple tasks in stores
52

53. Some Data
Versus only 15% who prefer the
interaction with an employee
53

54. Some Data
Reason for not mShopping:
limited awareness of what my
phone can do, 300k apps at Apple
App Store plus mobile sites …

55. What do they do?
- Looking up store address
- Reading reviews
- Sharing product photos
- Tweeting prices
- Using virtual shopping tools (AR, etc.) to visualize product
- Whatch their bid on eBay
- Download online coupons on mobile for instore use
- Check instore availability
- Use gift guides
- Geolocalisation (like 4square)
- Find support

56. Connecting Worlds
Online B&M
#1 source of
information <! >!
Big influencer
No consumer
knowledge
Consumers become whatsoever
more informed than
the sales person
=
Knowledge transfer
POS consultant

57. One Result:
The path to purchase is dead.
Now there are many.
57

58. Users carry around information
58

59. and coupons
59

60. They « shop on the spot »
60

61. And can have eAccess when and where they
want it

62. 4
Multichannel
62

63. More than Online
- For most retailers « multichannel » means the
opening of their online shop
- In fact it should be understood as the ability to
follow the consumers
- Examples could be:
63

64. remote supermarket trucks in Thailand
64

65. Drive through supermarkets
Drive through supermarkets
65

66. Tescos in Pubs
66

67. Amazon fresh

68. Metro AG (FWB: MEO) is a diversified retail and wholesale/cash and carry group
based in Düsseldorf, Germany. It has the largest market share in its home market,
and is one of the most globalised retail and wholesale corporations. It is the 3rd
largest retailer in the world according to Deloitte [2] and Reuters[3]. In English it
often refers to itself as Metro Group. It was established in 1964 by Otto Beisheim.
The company operates the following sales divisions:
Metro and Makro Cash and Carry Real: A hypermarket operator. 265 stores in
Germany and 34 elsewhere as of early 2005. Media Markt and Saturn: consumer
electronics company, Galeria Kaufhof: A department store chain. As of 2007 it has
added the former Wal-Mart Germany stores to the Real chain.
Case: Metro
68

69. « standard » multi-channel:
mobile, online, TV, stores
69

70. FUTURE STORE: « experience the future of
retail today »
70

71. REAL DRIVE: order online and pick it up,
warehouse, McDrive like
71

72. 5
Challenges
72

73. Retailers today are …
- Multi-Store
- Multi-Channel
- Multi-Geography
- Multi Challenged >>>
73

74. Circumstances
- Shifting demographics, aging consumers
- Globalization and Saturated markets
- Sustainability
- Corporate responsibility
- Private Label
- And the fast pace of changing technology >>>
74

75. The virtual sneaker wall by adidas and Intel

76. LuminAR bulb: light bulb equipped with
camera, projector and wifi. You show it the
product you’re interested in and it will supply
information, reviews, specs, prices, manuals or
offer to live chat with expert
76

77. Social Shopping Lists and Instore Guidance
77

78. Technology
- Cloud computing Cloud computing can be compared
- Predictive modeling to the supply of electricity and gas,
- Tap to pay or the provision of telephone,
- Geo fencing television and postal services. All
of these services are presented to
- SEO
the users in a simple way that is
- Mobile easy to understand without the
- Social networking >>> users needing to know how the
services are provided.
78

79. Technology
- Cloud computing Predictive modelling is used
extensively in analytical
- Predictive modeling
customer relationship
- Tap to pay management and data mining to
- Geo fencing produce customer-level models
- SEO that describe the likelihood that a
- Mobile customer will take a particular
action. The actions are usually
- Social networking >>>
sales, marketing and customer
retention related.
79

80. Technology
- Cloud computing
- Predictive modeling
- Tap to pay
- Geo fencing
- SEO
Citi Tap and Pay helps you make
- Mobile payments for purchases by simply
- Social networking >>> tapping your Tap and Pay Nokia
mobile phone at the payment
counter.
80

81. Technology
A radius around a store or point
- Cloud computing location. When the location-aware
- Predictive modeling device of a location-based service
- Tap to pay (LBS) user enters or exits a geo-
- Geo fencing fence, the device receives a
generated notification. This
- SEO
notification might contain
- Mobile information about the location of
- Social networking >>> the device. The geofence notice
might be sent to a mobile telephone
or an email account.
81

82. Technology
- Cloud computing
- Predictive modeling
Search engine optimization
- Tap to pay (SEO) is the process of improving
- Geo fencing the visibility of a website or a
- SEO web page in search engines via the
- Mobile "natural" or un-paid ("organic" or
"algorithmic") search results.
- Social networking >>>
82

83. Technology
- Cloud computing
- Predictive modeling
- Tap to pay
- Geo fencing
- SEO
- Mobile
- Social networking >>>
83

84. Technology
- Cloud computing
- Predictive modeling
- Tap to pay
- Geo fencing
- SEO
- Mobile
- Social networking >>>
84

85. Social Networking
- technology driven social projects, based on listening =
new responsibility for brands today, aggregation and
moderation
- This is where marketing-technologists play a role in
consumer-driven messaging
- It is the brands job to empower the consumer to do what
they believe in
- Managing this is a full day job – « you have to be out
there and be visible! »
85

86. Dell
86

87. Starbucks
87

88. Pepsi
88

89. Taking SM to change your
instore experience
- How can I make the poeple stay in the store longer?
- How can I potentially get them to shop?
- How can I create a better experience, less stressful?
- Through geo-localisation
- Tagging products
- Closed WIFI for additional info access
- Sharing, forum, discussions
- Instore kiosques, push applications via media server
89

90. Coca Cola Village: FB in an offline Event
90

91. Auchan: Facebook Corners in Supermarkets
91

92. Leaders for 2020 are …
- The ones who transform challenges into opportunities
- Good to their people and consumers by taking care of
them
- Engendering their poeple’sand customers’ loyalty
- Create an environment that leads to the kind of human
interaction that consumers will respond to and retailers
will benefit from
92

93. Merci.
Kai Platschke
Chief Strategy Officer, MRM Paris
Chief Digital Officer, McCann Worlgroup France
Twitter: @derkaip