Clive Woodger's conference about the Ultimate Retail Brand Experience. Organised by 3M Colombia. The main topics were: The Empowered Consumer, Retail Touchpoint's, Retail Transformations and Transformation Challenges.

1. Clive Woodger
July 2015
The Ultimate Retail
Brand Experience
...Transformation Challenges

2. The Ultimate Retail Brand Experience
The Empowered Consumer
...Transforming Retail
Retail Brand Experience
...Transforming Touchpoints
Changing Market Dynamics
Retail Transformations...Snapshot
Transformation Challenges

3. Retail Branding and Design
London based, established 24 years

4. Strategy – Branding – Retail Design – Graphic Design
Architecture - Visual Identity – Interiors
Digital Concepts - Point of Sale – Merchandising
Design Implementation
We create great customer experiences...

5. ...across a wide range of sectors
Pharmacy
Footwear
Food
Banks Shopping Centres
Fashion/Accessories
DIY
Homing
Cash & Carry
Children
Electrical
Online Retail
Coffee Shops/Restaurants
Sports
Duty Free
Automotive

6. Our clients include:

7. “In a world where screens are woven into our lives, there are
more consumer-initiated touch points.”
Google
The Empowered Consumer...
...Transforming Retail

8. The balance of power has shifted to consumers - they are
setting the agenda for retailers to follow”
The empowered consumer...

9. The impact of digital technology:
Changing consumer
mindsets and behaviour

10. An age of constant connectivity...
... and instant gratification.

11. REPUTATION
Respect me: Focus on consumers, not on devices -
create a personalised experience
KNOWLEDGE
Know me:
UNDERSTANDING
Recognise me:
ENGAGEMENT
Interest me:
Appealing to the empowered consumer mindset

12. Key influence generation
“By 2015 Millenials will be 75% of the workforce and will influence 74% of
buying decisions”

13. “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.”

14. Ways to win the Millennials
HELP THEM DO SOMETHING MATCH THEIR LIFESTYLE
FEEL AUTHENTICENCOURAGE PARTICIPATION
DISRUPT THE STATUS QUO
ENGAGE INSTEAD OF ADVERTISE

15. “The emerging millennial
generation in Colombia
comprises over 16 million
people who are changing the
way businesses promote their
brands”
Colombia’s Millennial Momentum

16. Internet Use in Colombia
Ranks third in Latin American internet use
Brazil - 118.6m, Mexico - 56.1m,
Colombia - 31.6m (some sources say 28.6m)
Increased use of mobile internet
24m 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

17. Higher than average monthly usage
1,404 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 Media
Per 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

18. Retail Brand Experience...
...Transforming Touchpoints
Digital...
Physical...
People...

19. Brand Touch points
Awareness....Promise
Brand Synergy
Customer Visit....Journey Afterglow...Satisfaction

20. brand naming
visual identitysignatures
marketing communications
architecture
exteriors
environments
planning circulation
zoning
merchandising communication
signage point of sale
service
offer...products...
services...
attributes
...’known for’
...added value
values....ethos
image...personality...
profile
Touchpoint Synergy
Creating positive market differentiation

21. Value
More for Less
Bargain hunting
A different kind of “guilty pleasure”
Price led but value driven
pragmatic .. careful… planned shopping
“Constrained consumers”
The best quality at the best price
A good ‘deal’ … every time you shop
Quality …
Choice …
Experience … environment/service /process
Customer Mindsets, Motivations and Lifestyles

22. Customer Mindsets, Motivations and Lifestyles
Convenience
Fast...Simple...Easy...Accessible
What I want
When I want it
How to get it
“Total convenience...to your door...to your store”
I want it now!

23. Home Focus
Living..Entertaining...Relaxing...Working
Creativity, Aspiration, Self Image
Indulgence at home
‘Eating out at home’
New products for creative home cooking
Premium ranges - gourmet and
restaurant dishes
Customer Mindsets, Motivations and Lifestyles

24. Sustainability
Environmental...ethical...social...
Consumers want to feel ‘good’ about what they buy
How was it procured, grown, reared, caught, manufactured, transported?
People...Planet..Profit
Emergence of the ‘principled consumer’
Did it harm the environment, people, communities?
Was it ‘Fair Trade’? CSR industry - differentiated by values
‘Look behind the label’ …. M&S
Customer Mindsets, Motivations and Lifestyles

25. Connectivity
Interactive engagement with customers
Creating communities
Cooking clubs, fashion wardrobes, beauty ideas...
Lessons, demonstrations, events...
Customer Mindsets, Motivations and Lifestyles

26. Supermarkets
“making shopping a pleasure”
Sales densities vs better environments

27. Fresh… demand for freshness
Organic and Ethical label range opportunities

28. Fresh
Back to basics – Fruit & Vegetables
Less packaged / processed food
Smoothies / packaged fruit snacks

29. Multi Brand Strategy
X5 Group: Creating a brand family/positionings

30. Discounters “quality repositioning”

31. Multi Brand Strategy
X5 Group: Pyatyorochka Discounter.
Creating clarity, making it easier and more efficient

32. Hypermarkets Lifestyle pitstops / centres - “everything for your life”
More than functional warehouses
Providing services and non food -as well as food
Acting as community destinations
Retail theatre...
events / workshops /parties

33. Multi Brand Strategy
X5 Group:Karusel Hypermarket
Navigation, zoning
Departmental focus

34. Premium City Customer Target
Azbuka Vkusa:
Contemporary brand identity

35. Premium City Customer Target
Azbuka Vkusa: Flexible store concepts
Authoritative departmental worlds

36. Premium City Customer Target
Azbuka Vkusa:
Quality service and merchandise presentation

37. Premium City Customer Target
Azbuka Vkusa: Quality implementation

38. Convenience Stores
“my place”

39. Convenience
Azbuka Vkusa Daily: Premium minimarket
Targeted at city workers

40. Creating a Brand Personality...Signatures
identity audit
- BRANDMARK CHARACTER NOT DESCRIPTIVE OF
OFFER
- NEEDS APPROPRIATE PERSONALITY
- TYPEFACE SHOULD LOOK MORE FRIENDLY

41. Friendly, regional chain
Tabris: Local leader

42. Producer to Retailer
Vel & Co: Upmarket,local destination and
meeting place

43. Shop, Eat, Relax
Vel & Co: Cafe facility focus

44. Creating a distinctive personality
Shokoladnitsa: Contemporary, social, distinctively
Russian. Engaging customer graphics.

45. Bringing provenance into the retail environment
Clover: Niche, direct from farm produce

46. Sustainable ‘green’ supermarket
Grunwald: Ethically resourced organic retail

47. International Retail Strategy
Metro Cash & Carry: Global brand
guidelines, shared best practice

48. Contemporary value proposition
Winelab: bold, stylish discount concept

49. Winelab: Accessible,
fun, informative
Contemporary value proposition

50. DIY / Homing

51. Do it for me...the empowered customer...USA

52. “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’

53. DIY...Homing Market Trends

54. SOFT/
INSPIRATIONAL
HARD/
FUNCTIONAL

55. EVERYONE IS SELLING HOME TO EVERYONE
STORES
‘Home
and
Living’
DISCOUNTERS

56. FURNITURE STORES...lifestyle

57. DIY/PROFESSIONAL...multi-channel
UK
International

58. Service Innovation

59. Soft meets hard
Husamidjan: Creating a trade and consumer destination

60. Soft meets hard
Yuterra: Complicated, confused, frustrating home offer
Our challenge...

61. Creating clarity
departmental authority

62. Design development
Yuterra: Merchandising development - strategic and operational

63. Yuterra: Department zoning...integrated graphics/merchandising
Design development

64. Design development

65. Yuterra: Merchandising diverse product groups - soft, hard, large, small...
...seasonal flexibility
Design development

66. Design development

67. Yuterra: Fixture kit of parts
Design development

68. Design development

69. Yuterra: Visibility...impact...practicality
Design development

70. Yuterra: Bringing the physical environment in line with the digital social
media experience
Clear, attractive product worlds, easy shopping

71. Interactive customer engagement
Yuterra Colors: A new digital brand
Provides inspiration and invites customers to share ideas/solutions

72. Fashion - Apparel, Footwear, Accessories

73. 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

74. Budget Fashion...simple graphic led kit of parts
Concept Club: 160 stores, romantic, classic, seasonal party zones

75. Budget Fashion...children
Acoola: Value, fun, contemporary

76. Budget Fashion...repositioning focused offer
Jeans Lab: New name -“research expertise”
industrial environment

77. Budget Fashion...repositioning focused offer
Jeans Lab: New name -“research expertise”
industrial environment

78. Milavitsa: One of the largest European groups, complete new look
Manufacturer retailer

79. Contemporary multibrand destination
Fashion Galaxy: High fashion experience, inspirational graphics/media

80. Contemporary multibrand destination
Fashion Galaxy: High fashion experience

81. Contemporary multibrand destination
Fashion Galaxy: High fashion experience, inspirational collateral

82. Budget mass market footwear
FLO: Largest store chain in Turkey, friendly service, simple, fun

83. Budget mass market footwear
FLO: Emphasis on service desk to give store focus

84. Budget mass market footwear
FLO: Fashionable fresh environment

85. Image differentiation, distinctive name and
self service offer
Select 25: High density, contemporary identity, packaging and point of sale

86. Image differentiation, distinctive name and
self service offer
Select 25: Memorable graphics, communication and packaging

87. Jewelry rebranding to update and reposition
Valtera: Contemporary new store concept
with distinctive icon

88. Bronnitsky: Creating a strong brand signature and environment
Jewelry rebranding to update and reposition

89. Lifestyle
Health and Beauty, Pharmacy, Sports

90. Balancing pharmacy and health an beauty
36.6: Emotive name, distinctive identity, store concept and communication

91. Contemporary beauty services
Mone: Emotive brand name, distinctive beauty services destination

92. Contemporary beauty services
Mone: Modern inspirational product packaging and environments

93. Mass market value sports offer
Sportsmaster: Graphic led store environment upgrade kit of parts

94. Zenit: Retail store concept celebrating the club in partnership with Nike
Football club “world”

95. Zenit: Coordinated environment, merchandising and graphic concepts
Football club “world”

96. Zenit: Coordinated environment, merchandising and graphic concepts
Football club “world”

97. Changing Market Dynamics

98. Shopping Centre Market Dynamics

99. 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

100. Digital & Physical Channel Convergence
Seamless shopping experience...accessible, available and deliverable
Touchpoint Optimisation
Multiple and consistent across key channels
End-to-End Brand Experiences
More 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

101. Experience
Experiential Retail
Innovation and Enhancement
Innovative ways to enhance the buying experience:
Engagement: tablet and interactive displays, social media campaigns, commun
events
Entertainment - shows, festivals, celebrity visits
Education - classes, demonstrations, product events

102. Stores
Downsizing
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 Models
Pop-up stores, virtual stores, retailer partnering with service/experience
providers...spas, cruises, hotels...
Niche Retailing
footprint, smaller store count, more narrowly focused concepts

103. Global
Global Multiples Expansion
Accelerated development into emerging markets to take advantage of
rapid middle class growth and retail modernization
Glocalization
International companies aiming to combine global scale with excellence
at local execution...and global market savvy and sourcing with local
market delivery and know-how.

104. Product Offer
One-Stop Lifestyle Providers
The 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

105. Personalization
Mass Customization
Unprecedented 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 Services
Treating 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 Sharing
Value chain will become more intimate. Consumers will share information
with retailers and suppliers but expect to get more value in return.

106. Move Away From Uniformity
Retailers will expect to achieve more of their growth from new concepts than
Differentiation/Exclusivity
Private/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 Channels
Online only retailers are opening up physical stores
Manufacturer Brand Power
Through the internet consumers have direct access to suppliers avoiding the
retail/distributor
Growth

107. Total Convenience
Faster Retailing
Fast fashion, limited-time-only products, flash sales, pop-up stores, self-
Amazon and Google same day delivery, drones...
Services Expansion
Service

108. Retail Transformations

109. Argos...from catalogue showroom to multi-channel retailer

110. H&M
Homebase UK

111. Lord & Taylor (USA)
House of Fraser (UK)

112. Audi City (London)
North Face (International)

113. Nike (International)
Sony (International)

114. Dyson (UK)

115. House of Fraser (UK)
IKEA (International)

116. Customers want choice to be in
control... speed... flexibility...
convenience
Click & Collect

117. Transformation Challenges

118. 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

119. Staying Relevant….
Creating Positive Differentiation
Offer 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 difference …
Internal communications …organisation …
workplaces which inspire and engage...
Transformation Challenges

120. Customer Service...
The ultimate differentiator

121. Transforming your people...
attracting and retaining the best

122. Our people make the difference

123. Brand Synergy™
t: +44 (0)20 7371 7522 f: +44 (0)20 7371 8351 e: info@scg.international www.scg.international

124. Gracias!!