The future of the luxury shopping experience

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When it comes to retail, the consumer experience is really key.
When entering a luxury boutique, you expect to discover a beautiful place, amazing products and a vast number of services.
Digitalization is not about changing everything but searching for solutions to brings the best overall consumer experience.

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The future of the luxury shopping experience

  1. THE FUTURE OF THE LUXURY SHOPPING EXPERIENCE PRODUCED WITH LOVE BY @GREGFROMPARIS GREGORY.POUY@LAMERCATIQUE.COM LaMercatique
  2. GREGORY POUY A MARKETING ARTISAN IN A DIGITAL AGE LaMercatique
  3. MUCH HAS BEEN SAID ON THE DIGITALIZATION OF RETAIL LaMercatique
  4. AND YET YOU PROBABLY DON’T SEE MUCH CHANGE IN YOUR DAILY SHOPPING LIFE (aside from a few giant screens, maybe) LaMercatique
  5. SHOULD YOU REALLY CARE? LaMercatique
  6. THE LUXURY INDUSTRY ROSE SIGNIFICANTLY IN 2013 (THANKS TO NEW MARKETS) 3 In less than 20 years, luxury consumers have more than tripled, boosting market growth. According to Bain, there are 330 million luxury consumers worldwide. §  90 m in the U.S. §  80 m in Western Europe §  50 m in China §  35 m in Japan §  25 m in “other Asian countries” §  20 m in Eastern Europe §  20 m in Latin America §  10 m in the Middle East and ROW MORE LUXURY CONSUMERS IN LESS THAN 20 YEARS LaMercatique
  7. THE LUXURY MARKET HAS ALWAYS BEEN ON THE CUTTING EDGE OF WHAT A RETAIL EXPERIENCE SHOULD FEEL LIKE LaMercatique
  8. ARE TRADITION AND EXCELLENCE CONTRADICTORY ? LaMercatique
  9. TENSION CREATES OPPORTUNITIES FOR REACHING NEW FRONTIERS AND PRODUCING EXCEPTIONAL BRAND EXPERIENCES LaMercatique
  10. A PIECE OF ADVICE: ALWAYS START FROM THE CONSUMER POINT OF VIEW LaMercatique
  11. THE LUXURY CONSUMER HAS CHANGED CONNECTED & INFORMED GROWTH EXPECTATIONS SHORTER ATTENTION SPAN NON-LINEAR PURPOSE- DRIVEN LaMercatique
  12. SHE IS EMPOWERED 88% OF SMARTPHONE USERS RESEARCH ONLINE AND BUY OFFLINE 20% OF SMARTPHONE USERS PURCHASE FROM THEIR MOBILE 72% OF SMARTPHONE USERS HAVE USED THEIR MOBILE IN STORE Studies conducted In 12 countries by Digital LBI – April 2014 LaMercatique
  13. MOBILE USAGE WHEN SHOPPING FOR CLOTHING 43% MAKE PRICE COMPARISONS 43%FIND PROMOTIONAL OFFERS 34% FIND LOCATIONS/ DIRECTIONS 34% FIND STORE HOURS Source: Google – mobile in search 2013 LaMercatique
  14. MOBILE USAGE WHEN SHOPPING FOR COSMETICS 46% MAKE PRICE COMPARISONS 40%FIND PROMOTIONAL OFFERS 42% FIND LOCATIONS/ DIRECTIONS 43% FIND STORE HOURS Source: Google – mobile in search 2013 LaMercatique
  15. SOCIAL MEDIA IS OVERHYPED Even in 2014, when it comes to retail digitalization, social media may come to mind. But in truth, consumers rate smartphone apps or technologies in-store significantly higher, when these are useful. However, this doesn’t mean that social media isn’t used at all, it’s just less important. LaMercatique
  16. 16 LaMercatique CONSIDER   EVALUATE   PURCHASE   ADVOCATE   THE CONSUMER PATHWAY HAS CHANGED...DRAMATICALLY PHYSICAL TOUCHPOINTS PR RADIO TV PRINT OUTDOOR WORD OF MOUTH DIGITAL AD VIRAL DISPLAY SEARCH WEBSITE BLOGS 3RD PARTY SITE DIRECT MAIL STORE POS/PROMOTION E-COMMERCE M-COMMERCE CHAT CALL CENTER PROMOTION ON INVOICE BLOG EMAIL NEWSLETTER UNMANAGED TOUCHPOINTS MANAGED TOUCHPOINTS SPECIAL EVENT CONNECTED OBJECTS SALES FORCE DIGITAL TOUCHPOINTS SOCIAL MEDIA LaMercatique
  17. A REBOOT IS NEEDED (urgently)   LaMercatique
  18. A FRICTIONLESS WORLD BETTER EXPERIENCES STORE EVOLUTION CONNECTED PRODUCTS CUSTOMIZATION REBOOT THE LUXURY SHOPPING EXPERIENCE #1 #2 #3 #4 #5 LaMercatique
  19. #1 A FRICTIONLESS WORLD LaMercatique
  20. CRM: YOU NEED TO OFFER YOUR CONSUMERS A SEAMLESS EXPERIENCE In a frictionless world, it’s not about store, desktop, mobile or social media... It’s about a seamless experience for the consumer, one where everything is connected. It means being recognized as the same consumer, on whatever channel you choose, whatever the country you are in, on that specific day for that specific need, and having a consistent experience The consumer doesn’t care very much about your internal problems. LaMercatique
  21. HOW DO LUXURY BRANDS RANK ON THE E-COMMERCE EXPERIENCE The eShopper Index by iVentures Consulting analyzes and ranks E-Commerce performances of leading players, all along the customer journey, before, during and after the purchase. 14 sub-steps of the customer journey are covered, using over 250 criteria. 2 3 4 5 6 7 8 9 1 10 11 12 13 14 15 16 17 18 All results   LaMercatique
  22. IT’S TIME TO DROP THE “E” E-commerce surfaced 10 years ago and showed us how to serve the customer differently. But today, we don’t know what “e-commerce” really means anymore. “Online” and “Offline” are slowly merging. With the exception of small specific businesses, it would be very dangerous not to have a omni-channel strategy. Customer expectations are rising fast. LaMercatique
  23. FROM SINGLE CHANNEL TO U-COMMERCE Single Channel Multi- Channel Cross- Channel Omni- Channel U-Commerce LaMercatique
  24. Source: Deloitte – omni-channel consumer survey 2013 OMNI-CHANNEL RETAILING PROVIDES INFORMATION Consumers can compare product details, prices, & fulfilment options CHOICE Consumers can access a wider range of retailers and products CONVENIENCE Consumers can research, purchase and receive products anytime, anywhere NEW PURCHASES Up to 25% of online shoppers could not have bought their product in a local store HIGHER VALUE PURCHASES Up to 63% of shoppers used multiple channels when placing orders over 150 € MORE FREQUENT PURCHASES Those who shop online at least once a week are 30% more likely than less frequent shoppers to do online research. They account for up to 70% of retail spending INCREASED COMPETITION 1/3 of consumers have used multiple channels in relation to a recent purchase BENEFITS FOR CONNECTED CUSTOMERS BENEFITS FOR BRANDS LaMercatique
  25. WHAT IS THE DIGITAL IMPACT ON SALES? USING DIGITAL BEFORE USING DIGITAL IN STORE LIFTCONVERSION 61% 73% 78% 86% N/A 20% 27% 40% Source: Deloitte - omnichannel consumer survey 2013 LaMercatique
  26. DIGITAL INFLUENCE ON SHOPPING DECISIONS IS OVER $1 TRILLION $   1   ,   1   0   0   0   0   0   0   0   0   0  ,   ,   ,   0   0   Source: Deloitte LaMercatique
  27. While investments in e-commerce businesses continue to grow, omni-channel investments are rare, with only one- third of brands offering the option to check in-store availability. Two-thirds of brands offer some form of free shipping, but only one-fifth provide it by default (regardless of order size).While Amazon has trained frequent shoppers to expect packages within 2 days, other retailers have failed to keep the pace: two-thirds of brands quote 6 days or more for delivery. Source: L2 – Specialty retail report 2014 BRANDS SHOULD IMPROVE THEIR OMNI-CHANNEL CAPABILITIES
  28. Studies conducted on 12 countries by Digital LBI – April 2014 “SHOWROOMING” IS ON THE RISE 18% of consumers report leaving a store after consulting their mobile and finding a cheaper product elsewhere 88% 88% of consumers say they would buy a product elsewhere if the discount was 10% 18% LaMercatique
  29. BUT “WEBROOMING” IS EVEN BIGGER 69% WEBROOM SEARCH ONLINE AND BUY OFFLINE 46% SHOWROOM SEARCH OFFLINE AND BUY ONLINE LaMercatique Source: fung business intelligence center “top 12 retail and e-commerce trends” August 2014
  30. BUY ONLINE & PICK-UP IN-STORE IS RARELY OFFERED FOR LUXURY GOODS ASPIRATIONAL BRANDS PRESTIGE BRANDS LUXURY BRANDS 15%20% 24% LaMercatique
  31. Brooks Brothers, a longstanding clothing retailer, has focused its entire retail data system around the consumer. Therefore, when a consumer visits their website, it will integrate his previous brand purchases (through whatever channel) and propose a relevant selection accordingly. ADJUST WHAT CUSTOMERS SEE ON YOUR E-COMMERCE WEBSITE LaMercatique
  32. The men’s clothing site started online in 2007 but took off more recently when it began adding 10 physical locations. At the showroom, customers can meet with a personal shopper who can help them select, try on, and order clothes to be delivered in the proper size to their homes. Not having to keep all its goods in stock in the store means a much smaller physical space (significantly lower the cost) and letting Bonobos combine the advantages of large on-line selection with in-person service. BONOBOS: WHEN AN ECOMMERCE WEBSITE ADD BRICK & MORTAR LaMercatique Source Robyn Bolton in HBR.
  33. DIGITAL WALLETS ARE ON THE RISE Contactless payment solutions are rising, whether through RFID chips or digital wallets through NFC. In Africa, where people are sending money via SMS, mobile operators are slowly replacing banks. Following Google, Apple just rolled out an app that enables customers to pay through their smartphone and thumbprint. Are consumers ready to cast off their credit cards in favor of a smartphone app? This where the market is heading... LaMercatique
  34. Macy’s is very well-known for its advanced omni-channel strategy. The retailer decided to offer same-day delivery to customers in 8 major U.S. cities, including Los Angeles and Chicago. Also, they were the first company to support Apple mobile payment system when it was launched in Autumn 2014. MACY’S OFFERS SAME-DAY DELIVERY LaMercatique
  35. SHOPPABLE VIDEOS ARE HERE FOR GOOD Buying on Youtube is not a new concept (2009). The French clothing retailer Petit Bateau led 13% of viewers to its e-commerce site. Shoppable videos aren’t necessarily being requested, but people enjoy them when they are proposed. As a result, in the past year, 39 department stores produced and released a least one shoppable video. LaMercatique
  36. THE FASHION & LUXURY CATEGORY HAS THE HIGHEST LEVEL OF MOBILE ADOPTION Mobile represents 38% of traffic share. People have now become accustomed to buying with their smartphones, although tablets still convert better. However, the market is changing very fast and smartphones should overcome tablets very soon. From this perspective, Asia will soon exceed the 50% mark for online transactions via mobile devices. In the Fashion and Luxury category, mobile accounts for 33% of total e-commerce transactions in the U.S., as compared to desktop baskets. Source: Criteo Mobile report Q4 2014 Tech  woman  via  ShuAerstock   LaMercatique
  37. Nearly 90 % of retailers are maintaining mobile-optimized sites. However, compared to the desktop experience, mobile site functionality often lags—with fewer mobile sites accepting PayPal, incorporating user ratings and reviews, or indicating real-time inventory status. Tablet optimization also remains a weak point for retailers; despite exhibiting higher average order values and higher conversion rates, only 10% of retailers’ sites have implemented a tablet-specific UI/UX Source L2 specialty retail 2014 report A MOBILE-OPTIMIZED SITE IS A “FAIT ACCOMPLI”, BUT... LaMercatique
  38. A few years ago, before tablets or smartphones, mobile was a strong trend. In 2014, we are already past the mobile tipping point. We are moving quickly towards a world where everything will be technology-enabled. IT’S NOT SO MUCH ABOUT MOBILE ANYMORE LaMercatique
  39. Wearable devices Sale Person App Digitally enhanced products Geo-targeted alerts Mobile app Source Slide: R.G.A. Digital Display LaMercatique
  40. #2 BETTER EXPERIENCES LaMercatique
  41. LUXURY BRANDS NEED TO SURPRISE IN ORDER TO STAY ON THE CUTTING EDGE This means bringing new experiences and new services, which does not necessarily imply “technology”. Surprise allows brands to remain flexible and adaptable. Luxury is a form of art, experimenting to find the best solutions and bring amazing experiences to the consumer. LaMercatique
  42. CREATE A NEW TYPE OF POP-UP STORE Whether you are in a hurry or simply tired of shopping online, Kate Spade, in partnership with eBay, created this pop-up store in NYC. This window includes a huge touchscreen that’s ready to take your order and deliver your goods in less than an hour. Lamercatique
  43. BUY WITH A TWEET AT MARC JACOBS In this very specific pop-up store, the only accepted currency was a tweet or a picture on instagram. Once you shared on your social networks, you could receive a branded gift when leaving the store. The best instagram of the day won a handbag. This concept emerged from the incredible content created for the brand by its engaged fans. Customers who stopped into the Tweet shop could also get free manicures, take selfies and check out new product lines. LaMercatique
  44. WEDDINGTON WAY: SOCIAL ADDED VALUE When shopping for bridemaid dresses, customers are not just after functionalities (price, delivery) but seek to satisfy complex emotional and social: get everybody approuval even then they live in different cities. Thanks to Weddington Way, women can create their own private virtual showrooms, brides and bridesmaids can discover, recommend, and vote on dresses and colors in a collaborative online space staffed by personal stylists available by chat session. With 25,000 dresses sold in just the first half of 2014, the company is approaching the $10 million revenue mark. LaMercatique Source Robyn Bolton in HBR.
  45. LaMercatique LUVOCRACY: WHEN RECOMMANDATION IS MIXED WITH AFFILIATION Luvocracy encourages shoppers to recommend clothing and fashion items from anywhere else on the web. Friends can add “luvs” to products which increases the “trust” rating of the recommender. When someone buys a product that you’ve recommended, you earn a 2% reward. If you attract enough followers who buy those products, you can become a “tastemaker” and earn 10% commissions. The company has been bought by WallMart.     Source Robyn Bolton in HBR.
  46. NORDSTROM’S PERSONAL SHOPPER NOW TEXTING CLIENTS The retailer just announced a partnership with Twilio, a business that provides phone and messaging services to websites. This isn't your standard SMS deal text—Twilio has given Nordstrom's personal shoppers the ability to text photos of new merchandise to their clients, without running up charges for the retailer or giving out personal employee phone numbers. Source: http://www.racked.com LaMercatique
  47. HAVING A TACTILE EXPERIENCE Thanks to new technologies, true tactile sensations through screens are now possible. This can be used when personalizing a car, for example, but also when you want to feel the softness of the leather of your future handbag. These screens push the digital experience a little further ahead. LaMercatique
  48. SELLING WHAT YOU DON’T HAVE IN-STORE LaMercatique
  49. BUT YOU NEED PRODUCTS IN-STORE Some people tend to believe that in the future, stores will only feature displays. But at the end of the day, even if people come to stores to touch and feel the products, they also want to be able to walk out with them. LaMercatique
  50. In 2014, when 39% of aspirational brands like Ann Taylor offer this service on their website, only 32% of prestige brands and 8% of luxury brands do so. Gucci is the only luxury Apparel & Accessories brand at the luxury to offer this feature. From a consumer point of view, this is very frustrating ONLY GUCCI OFFERS REAL-TIME IN-STORE INVENTORY Studies L2 - Omnichannel– July 2014 LaMercatique
  51. The Web to Store approach is something that department stores have been looking at very closely. As a result, 40% of their customers buying online, choose to collect in the store and 40% of these customers spend more than when they only have a “retail” experience. GALERIES LAFAYETTE PROPOSES A CLICK & COLLECT PROCESS LaMercatique
  52. The second-hand market has grown very quickly, through specialized start-ups like Instantluxe.com or vestiairecollective.com. From a consumer point of view, considering there are so many replicas out there, it’s a jungle. Luxury brands should view the second-hand market as a way to enter the brand universe and consider those people as their consumers. Therefore, they should offer them service. HOW DO YOU DEAL WITH THE SECOND-HAND MARKET? LaMercatique
  53. WHAT IS VERY IMPORTANT TODAY? CLICK & COLLECT CLICK & TRY CLICK & RESERVE LaMercatique
  54. #3 STORE EVOLUTION LaMercatique
  55. So many people have predicted that retail will die and that e-commerce will take over. In reality, even in the highest projections, e-commerce only represents 20% of retail sales. E-commerce by itself cannot sustain your business, unless you are small enough or a category leader like Amazon. However, through digitalization, stores are going to quickly evolve. RETAIL IS NOT DEAD! LaMercatique
  56. THE STORE OF THE FUTURE... WILL BE PRETTY MUCH THE SAME AS TODAY In fact... Retail is not going to change much. You can write and over-think it, but you still need happy customers and salespeople. However, automation and robotization will clearly make many new things possible in store. But when it comes to luxury brands, more so than anywhere else, human contact will make the difference. LaMercatique
  57. BLOOMINGDALE’S INCORPORATES MOBILE TOUCHPOINTS The department store chain launched this concept in its Palo Alto store. Featuring smart dressing rooms, mobile checkout, consumer-facing tablets and sales associates armed with mobile devices, the store in the Stanford Shopping Center heightens the omni-channel experience for shoppers. This neighborhood is a good testing ground for new retail technologies, which Bloomingdale’s may want to carry over to other locations. Source: Luxurydaily.com LaMercatique
  58. 58 LaMercatique WHAT’S ABOUT BRANDS WHICH DON’T OWN THEIR DISTRIBUTION NETWORK? Photo: Colette, Paris
  59. 59 LaMercatique Placeloop is an all-in-one local store marketing automation software for brands who don’t own their distribution network. It easily enables brands to leverage their local resellers’ presence to activate consumers and optimize targeted advertising to create foot traffic and local product experience. By using Placeloop, brands will be able to manage, monitor and measure local store data, build store locators, create customized mini-sites, optimize SEO, bring digital content to local agent and run trackable couponing campaigns in independent stores. USE STORES AS DIGITAL AMBASSADORS WITH PLACELOOP Photo: Merci, Paris
  60. You can easily get lost in a department store. Galeries Lafayette, the famous Parisian store, has launched a geolocalisation-enabled app that locates items across the 75,000 square foot store. The app, available in 14 languages, pinpoints the user’s location on a 3D map. You can prepare your personal itinerary and if a store offers click & collect, the option appears next to the map. GALERIE LAFAYETTE OFFERS AN IN-STORE GEOLOCALISATION APP LaMercatique
  61. This concept store opened late 2013 in Covent Garden, in London. The store offers individual consultations, but many aspects of the retail experience have been digitalized, including the payment system. There is also a runway nail bar where you can virtually “try on” new colors. BURBERRY BEAUTY BOX TO REINVENT THE BEAUTY STORE LaMercatique
  62. 62 LaMercatique iBEACON IS CHANGING THE GAME iBeacon is a indoor proximity system launched by Apple. An iBeacon can send notifications to any smartphone nearby and can enable payments at the point of sale. It uses Bluetooth, which most smartphone users leave on when shopping.
  63. 63 LaMercatique iBEACON: IMPROVE YOUR CONSUMER’S KNOWLEDGE THROUGH DIGITAL Usually, customer knowledge is collected either through big data or through loyalty cards. But iBeacon offers a totally different way to interact with your consumers and brings a significant added value to the relationship.
  64. 64 LaMercatique iBEACON SHOULD NOT BE ANOTHER SPAMMING MACHINE The real problem with technology is mainly marketers. Whenever you give them the opportunity to notify consumers, they will spam with brand-focused messages. 41% of consumers that receive this type of notification believe that the information sent was not relevant to them. LaMercatique
  65. 65 LaMercatique iBEACON IS THE PERFECT SOLUTION TO IMPROVE THE CUSTOMER EXPERIENCE There is a bar in London that uses iBeacon to send each customer an access to 2 magazines for free. From the customer’s perspective, this adds value to your experience. From the bar’s perspective, it also means you may spend more time in the bar, probably spend more money, and come back again. LaMercatique
  66. 66 LaMercatique iBEACON: ENDLESS POSSIBILITIES §  A shopping list turns into a journey through the shop §  An augmented reality game is introduced into the store §  Getting specific discounts (Macy’s) §  Receiving recipe advice when in a specific alley §  Contactless payment
  67. 67 LaMercatique PEPPER IS NOT SCIENCE-FICTION Meet Pepper from Aldebaran. This robot already exists and is used mostly in Japan by Softbank, primarily for entertainment. Retail traffic has already increased by 40% to 50%. However, Pepper can be connected to CRM software and many other programs, which will enable him to create amazing new things. Interaction with robots needs to be simplified, in order to be frictionless.
  68. DON’T MOVE TOO FAST... Moving fast, especially faster than the competition, can be tempting. But be careful, the consumer may get lost along the way. Sephora tried to copy Apple’s retail model and removed its cashiers. But people were totally lost because they were expecting Sephora to have proper cashiers. The cashiers had to be put back in place. It will all happen over time, but change has to be implemented step by step. LaMercatique
  69. 69 LaMercatique WHAT DO YOU NEED TO SUCCEED? (DON’T ANSWER “TECHNOLOGY”) You have to consider that technology can enable almost anything, but will not help you if you do not have the right mindset. It is all about being technology-agnostic, customer-focused and determined to bring the best experience
  70. #4 CONNECTED PRODUCTS LaMercatique
  71. You probably know of this example from C&A in Brazil, where the hangers show the number of likes, but there’s more... When a jacket is lifted from a rack, an embedded sensor sends a signal to a computer and switches on a brief video showing a recommended combination or how it looks when worn by a female idol. In fact you can imagine many possibilities using interactive hangers. WHEN HANGERS OFFER SHOPPING TIPS LaMercatique
  72. House of Frazer decided to use the beacon technology to have their mannequins interact with consumers. When a shopper walks by, the mannequin sends information about what “she” is wearing. This includes details about the clothes and accessories displayed, such as price and links to purchase the items directly from the retailer’s website, or where they can be found in the store. AT HOUSE OF FRAZER, MANNEQUINS SEND INFORMATION TO SHOPPERS LaMercatique
  73. Nordstrom is one of the strongest brands on Pinterest, with more than 4.4 millions followers. The retailer decided that its community should influence its displays in every store. Pinterest-popular items are displayed with a red tag identifying them as such. SOCIAL: NORDSTROM USES PINTEREST FOR STORE MERCHANDISING LaMercatique
  74. #5 CUSTOMIZATION LaMercatique
  75. IT ALL STARTS WITH EMAIL MARKETING Half of all emails analyzed by L2 promoted sales, 43% called to “shop now,” while less than 1% dove in-store. Personalization efforts in email were demonstrably weak, with only 10% of brands including the recipient’s name in email subject lines. Source L2 – retail specialty report LaMercatique
  76. Luxury brands have always tried to be consumer-focused. However, they used to impose their vision through a limited, predefined range of products. Luxury consumption is a way to express one’s personality through the brand’s codes. Therefore customization has to be accessible to all luxury consumers. Each experience can be adapted to local specificities or to a special moment. CUSTOMIZATION SHOULD BE AT THE HEART OF THE LUXURY EXPERIENCE LaMercatique
  77. Boucheron knows that not every consumer has the ability to come into a store when he wants to. The brand has launched an augmented reality application on its website to help the customer make a choice. MYBOUCHERON LETS YOU TRY ANY JEWEL FROM HOME LaMercatique
  78. It can be tricky to find the right foundation for your true skin color. You can obtain different results and the app enables you to filter the results by brand, SPF, consistency and ingredients. If you want a darker tone, you can adjust and a new range of products will be proposed accordingly. SEPHORA’S APP TELLS YOU WHICH FOUNDATION BEST FITS YOUR SKIN TONE LaMercatique
  79. Matrix has decided to embrace technologies, specifically Google Glass. The haircare brand is going to this technology to train hairstylists and bring a new experience to the consumer. who will be able to have her preferred hairstylist at her side, recreating her favorite salon hairstyles at home. MATRIX PLANS TO OFFER A PRIVATE TUTORIAL THROUGH GOOGLE GLASS LaMercatique
  80. CONSEQUENCES LaMercatique
  81. Many brands have spent years building an engaging experience in one channel, primarily the retail store. But today, they need to understand how to connect with their core customers, using every means of connection available. This requires an understanding of how to market in a digital world. THE TEAM NEEDS TO EVOLVE LaMercatique
  82. RETAIL TEAM TOOL: MYSEPHORA Today’s consumers are empowered. So, beauty advisors must have access to an equal level of information as their customers, if not more. By scanning the loyalty card, they can retrieve all the customer’s information: §  Updated client info §  Product recommendation §  Current CRM offers §  Purchase history §  Access to the product database with ratings... LaMercatique
  83. BEING OMNI-CHANNEL AT THE CORE The Neiman Marcus department store chain announced the merger of its retail & e-commerce merchandising teams. Being omni-channel at the core should enable them to deliver the best possible experience to their consumers. LaMercatique
  84. THE LOGISTIC CHAIN IS EVOLVING When it comes to retail, it is impossible to overlook the importance of logistics.... RFID chips are being introduced into retail, enabling real-time stock information in every shop, and fast checkout. Scandinavian clothing company Moods of Norway (MoN) has equipped 13 of its stores with RFID technology to better manage its inventory. During the 2-store pilot phase, the system not only provided 98 to 99 percent inventory accuracy, but it also reduced the amount of labor employees spent performing manual inventory checks, thereby enabling more frequent checks. LaMercatique
  85. Business has been totally transformed through technology. It was “easy” to do business in a single channel mode, but data is compulsory in an omni-channel world. Data can allow you to connect all the pieces, to offer the consumer a highly relevant experience. Consumers want simplicity, they don’t want to waste time. They want brands that follow their fast-paced life and make it easier. DATA AS A COMPETITIVE ADVANTAGE LaMercatique
  86. Big data represents large groups of people and widespread behavior. This is not so relevant, when it comes to retail. As a person, you don’t want to be part of a big data set, you want personalized service. Small data is about gathering and understanding insight, without being too intrusive. IT’S ALSO ABOUT SMALL DATA LaMercatique
  87. Montblanc is using data analysis solutions to measure the number of people shopping in each area of its stores and establish the conversion metric by area. This approach allows the brand to optimize the share of space dedicated to different product categories and improve sales goals for the staff. FROM 9% INCREASE IN TRAFFIC TO +12% IN TOTAL STORE SALES LaMercatique
  88. //‹#› QUANTSTREAMS BUILDS A STREAMSTORE FOR YOUR COMPANY. "QuantStreams is a Marketing Automation Platform (MAP) that analyses customer reaction at each brand touch-point, so that marketers can better communicate and engage into a confident yet fruitful relationship with their own customers. The “stream” is a programmed and adaptable marketing scenario triggered by your prospect’s or customer’s behavior. A dedicated library of streams (StreamStore) had been compiled, based on known business cases and always inventing new ones, on the basis of device or customer behavior. LaMercatique
  89. RETAIL’S SECRET WEAPON: PREDICTIVE DATA By using retail analytics for predictive modeling, companies can actually see and understand how sentiment, emotion, and actions have changed, determine what is influencing that change and make adjustments as needed. ASSORTMENT SUPPLY CHAIN STORE OPERATIONS FRAUD PREVENTION Sourcing In-store replenishment Resource & budget optimization Inventory Demand forecasting Vendor scorecard Logistics Backroom management Security Incident predictions Merchandise analysis MARKETING Perfecting promotions Preventing showrooming Adjusting the product mix Real time response LaMercatique
  90. THE PRIVACY ISSUE 50% of respondents trust their favorite retailers to use their personal data responsibly 54% 54% of respondents mind being observed in store and aren’t comfortable with the idea (Nord ic countries specifically) 8% 50% Source: Digital Shopper relevancy 2014, Cap Gemini Not everybody is equal when it comes to privacy. In older countries (particularly Nordic), people are much more concerned about their personal data. LaMercatique
  91. Even though data can help you to better understand your business, you are the right person to decide: “this is the way we should look at our customers”. Even with data, human judgment remains essential. Only real people have the experience, can understand customer insight and can predict the unpredictable. More than ever, the point of sale needs to reinvent the human connection. HOWEVER, THE HUMAN FACTOR IS STILL THE KILLER APP LaMercatique
  92. Know-how and craftsmanship are the strongest values in the luxury world. Excellence, handmade products, choice of materials and dedication are what make the difference between luxury and mass-market products. This will always be the case, even though technology has been introduced into the production process and is now at the heart of the luxury world. AND CRAFTSMANSHIP IS AT THE CORE LaMercatique
  93. LaMercatique DON’T HESITATE TO CONTACT ME IF YOU WANT TO KNOW MORE OR GET THE SLIDES gregory.pouy@lamercatique.com @gregfromparis
  94. THANK YOU PRODUCED WITH LOVE BY @GREGFROMPARIS LaMercatique

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