The document discusses how future consumers will change the game for businesses through a more people-led approach to innovation where consumers are actively involved in the product development process. It outlines several presentations given at a conference that highlight trends showing consumers care more about health, sustainability, and having more control and choice through technology. The overall message is that businesses need to listen to consumers more and involve them directly in the innovation process.
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
How Future Consumers Will Change Retail
1. How Future Consumers will Change the Game
ECR Europe Conference
27 May 2008, Berlin
2. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising people’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 1
3. The main message…
Just accept
When will my that
consumers start consumers
listening to me are the boss
again…? in the future
Future Consumer 2
4. How is your dialogue with your consumers ?
Future Consumer 3
5. The view of current consumers on their future behaviour
Health and wellness will be the key personal drivers
85 % of consumers expect this to be (extremely) important
Consumers will strongly consider sustainability aspects in their
decisions
But only 20 % are willing to pay a premium for this
4
Future Consumer
6. The view of current consumers on their future behaviour
Consumers expect to become
smarter in using all kinds of new
technologies – at home, in stores
and ‘on-the-go’
Consumers are increasingly
expecting to enter a true dialogue,
and are willing to provide relevant
information
Over 50 % are willing to
provide personal information
Expecting ‘personal
promotions’ in return (80 %)
5
Future Consumer
7. The view of current consumers on their future behaviour
Stores will remain important – but
the online channel will grow
considerably alongside
For non-perishable food:
60 % will only buy in stores
For Health & personal care:
40% will only buy in stores
Consumers will increasingly
demand new options for home
delivery
20 % is interested in
neighbourhood pick-up
See GCI ‘Future Supply Chain’ session
Tomorrow 11.30 – same location 6
Future Consumer
8. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
Insert video clip 1
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 7
9. People Led Innovation
Gus Rodriguez, Vice President
Partnerships, Incubators and Consulting
Philips Design
May 27, 2008
10. “Every few hundred years in Western History there occurs a
sharp transformation. Within a few short decades, society
rearranges itself: its worldview (paradigm), its basic values,
its social and political structures, its arts, its key institutions.
Fifty years later there is a new world.”
Peter Drucker “Post Capitalist Society”
Story is more about the How of the Future than the What of the consumer.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 9
11. The distribution of wealth
Purchasing Power Population
> $10,000 advanced 500
Parity per year in millions
markets
$1,500 - emerging 1,500
$10,000 markets
< $1,500 developing 4,000
markets
Beyond materialism
Source: adaptation of a model presented by S. Hart - Kenan-Flagler Business School, WSSD, 2002.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 10
13. People: involved, connected, empowered
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 12
14. The future of technology
Ambient Intelligence
The house of the future
will look more like the house of
the past than the house of today
- Stefano Marzano
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 13
15. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 14
16. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 15
17. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 16
18. The Future of Economics
economic
index
Gross Domestic Product (GDP)
Index of sustainable economic
welfare (ISEW)
time
We cannot continue to “consume” the future in this way
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 17
19. A new paradigm
Industrial age People age
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 18
20. A new paradigm
•Top Down Authority •Open Ended, Organic
•Masculine •Feminine and Masculine
•Experts and professionals •Explore, create, experiment, refine
•Work it all out a priori •Real life trial and error and experience
•All planned and charted •Collaborative participation also based
•People construct their own meaning
•Life Future Predetermined •Own their own futures
.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 19
21. The consumer of the future
Beyond materialism … search for the Quality in Life
• Self development and growth
• Relationships-family, friends, community
• Participation and control
• Balance and well being
• Diversity
• Creativity
• Empowerment
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 20
22. People Led Innovation …
Researching the Future
Foresight,Trends &People Research:
Socio-dynamics, CultureScan
Foresight in Design Personas, Generations, Communities
Engaging with the Future
Cultural Innovators
Creative Communities
Social Entrepreneurs
Co-Creating the Future
open, collaborative inclusive research
Envisaging the Future
Probes-experience demos
Application demos
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 21
23. Understanding society & people…
in the dynamic future context
Short term
insight
forecast
foresight
Long term
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 22
24. Cultural … Leaders, the future consumers
Cultural Creative's: aprox 24% of the adult population (44 million in USA).
Core CCs- 50% Green CCs
- Global sustainability - Very green
- Leading edge thinkers and creators - Strong interest in spirituality
- Upper middle class - Middle class
- 66% women, 33% men - 55% women, 45% men
- Above average income - Above average income
Key values Key values
- More concerned with psychology - More environmentally focused
- The meaning of life, new knowledge - Strong social and community concerns
- Being socially concerned
Cultural Innovators
Personal growth, self actualization, self determination,
Sustainability, diversity, social concern, altruism
at the leading edge of change and are a powerful force for change in the coming
years
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 23
25. Open Innovation: Co-creating the Future
Collaborative Innovation Networks
drive new growth through radical innovation
Companies see the need to collaborate with other companies and
stakeholders for new business development beyond their business
boundaries, to innovate and make a difference in society.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 24
26. New platforms for Co-creating the future
The Philips Design Co-creation Experience
Philips Design is exploring new ways to collaborate and engage with Second Life residents.
Visitors to the Co-creation Experience home are invited to register to participate in collaborative
activities aimed at further understanding people’s motivations and desired experiences.
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 25
27. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 26
28. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 27
32. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 31
33. The Simplicity Event
“Is Philips Design the Absolute Best Design Company in The World?
I don't know the answer, of course, but I go to a lot of events and see a lot of fascinating things and on Monday night I went to The Simplicity Event
put on by Philips Design on Pier 94 in Manhattan and it just blew me away. I saw technology in natural harmony, seamlessly integrated into the way
we normally move through life.“ Bruce Nusbaum Business Week editor, New York, 2006
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 32
34. The Simplicity Event: Health & Wellbeing
move your body share experiences
care for your body relax your mind
listen to your body
Next Simplicity Events reinforce the notion that
Philips is a reference point for Simplicity.
The 2006 Simplicity Event focused on health
and well being!
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 33
35. Design Innovation
From Vision to Innovation and New Value
Discover
Inspire &
Imagine
VISIONARY PROJECTS
Realize
New Nomads 2001
10
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 34
36. CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 35
37. Habitat: living Off the Grid
light water air
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 36
39. People Led Innovation …
Researching the Future
Foresight,Trends &People Research:
Socio-dynamics, CultureScan
Foresight in Design Personas, Generations, Communities
Engaging with the Future
Cultural Innovators
Creative Communities
Social Entrepreneurs
Co-Creating the Future
open, collaborative inclusive research
Envisaging the Future
Probes-experience demos
Application demos
CONFIDENTIAL Partnerships, Incubators and Consulting, Philips Design, May 27, 2008 38
40.
41. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 40
43. Google ... Organising People‘s Lives
„To organise the world‘s information and
make it universally accessible and
useful“
Google Confidential and Proprietary 42
44. Google ... Over 80 Products
Google‘s Mission:
„Organise the
world's information
and make it
universally
accessible and
useful.“
Search YouTube Maps Mobile
Desktop Sidebar Toolbar Earth Google Mail & Talk Calender
Blogger Groups Picasa iGoogle Book Search
Google Confidential and Proprietary 43
47. Communication
118 Billion
Emails & IMs sent
per day
> 250 M registered
Skype users
Sources: IDC: 'Worldwide Email Usage 2007-2011”; Radicati
Group, 'Instant Messaging Market, 2007-2011' Aug 2007
Google Confidential and Proprietary 46
48. Community
250 Million
Internet users
on
a social network
Sources:
http://www.lexisnexis.com/about/releases/1009.asp (Sept Google Confidential and Proprietary 47
2007); Forrester Europe eCommerce Forecast 2006
50. Commerce
€130 Billion
EU eCommerce market
This figure has
tripled in the last 3
years
By 2011 the figure
will increase to 20%
of total European
commerce
Source: http://www.auctionbytes.com/cab/abn/y08/m02/i22/s02 (Feb 2008) Google Confidential and Proprietary 49
51. Technology Drives Change
Broadband
penetration
Democratise Falling cost
the tools of of digital
production storage
Google Confidential and Proprietary 50
52. Falling Cost of Digital Storage
• Storage capacity doubles
annually for any given
fixed storage space
• 1 GB storage today costs
around € 0.30
• Average iPod stores
upwards of 30 000 songs
Google Confidential and Proprietary 51
53. Increasing Broadband Penetration
• 400 million households
with broadband access by
2010
• 50% broadband
penetration in W.
European markets
• 60% of Europeans
predicted to have 3G
phones by 2010
Google Confidential and Proprietary 52
54. Democratising the Tools of Production
• 100 million digital cameras
sold annually worldwide
• Everyone is a
photographer, designer,
blogger and journalist...
• Multi-media 24/7 interation
is becoming standard
Google Confidential and Proprietary 53
55. Internet Evolution
Information & Commerce Community,
Communication Self-Expression &
Entertainment
1.0 2.0 3.0
1994 1998 2000 2003 2006 2008
Users 77M 400M 500M 1000M 1400M
Google Confidential and Proprietary
57. Future: Universal Search
“In 10 years you
can ask Google
a question!“
Marissa Mayer
VP, Search Products & User Experience
Google Confidential and Proprietary 56
60. Organising People’s Lives: Visual
Messages
258
Mill. Unique
User
Quelle: ComScore Networks, Jan
2008
Google Confidential and Proprietary 59
61. Organising People’s Lives: Geographic Info
TrackTrack ABX Air
Southwest Airlines Find your closest
flight 6359 from Boise
752 from Illinois restaurant in over
to San Francisco
to Los Angeles 65 countries
Google Confidential and Proprietary 60
63. Organising People’s Lives: Personalisation
Source: Google Google Confidential and Proprietary 62
estimate
64. Self-Organisation: Wisdom of Crowds
Nike Social Networking
with Google Maps
Oral History of Route 66
on My Maps
Starbucks Google
Maps layer
Google Confidential and Proprietary 63
66. Digital Nomads: Shift Global to Local
1930s
Local
Individual Organising
Mobile People‘s Lives
Google Confidential and Proprietary 65
67. Thank you for your time!
Alastair Bruce, Industry Leader Retail
ECR Berlin, 27th May 2008
Google Confidential and Proprietary 66
68. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 67
77. ‘because you can’t see it
in your stores,
don’t assume
it isn’t happening’
76
78. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 77
79. The LEGO Co-Creation & Innovation
Mark W. Hansen, Director Business Development
ECR – May 2008
80. Evolution of user involvement
Passionate LEGO advocates who want to co-create and
Lead Users have a two-way dialogue with us and among
themselves
~ th. global
LEGO Users with details registered in our
1:1 Community ~ millions global database so it's possible to have a dialogue
LEGO Users who participate directly
Connected Community with us, but are not registered in our
~ 10 million global database so it's not possible to
contact them directly
Have bought or received a
Active Households Tens of millions LEGO set in the past 12
months
LEGO Factory 2007-25-04 / Page 79
81. Tapping into
co-creation
LEGO Factory 2007-25-04 / Page 80
86. Lead users co-driving publicity
11 page cover story in
Wired Magazine
LEGO Factory 2007-25-04 / Page 85
87. TOOLBOX: Evolution of user involvement
User enterprise – LEGO partner
User-developed – User published
User-developed – LEGO published
Co-developed – LEGO published
LEGO developed – LEGO published
LEGO Factory 2007-25-04 / Page 86
90. What do we offer consumers today?
LEGO Factory 2007-25-04 / Page 89
91. ... BUT we continue to develop and learn to
create new consumer PLAY EXPERIENCE
LEGO Factory 2007-25-04 / Page 90
92. LEGO Universe
Phase 1: Phase 2: LUP Phase 3: LUP III
LUP II • October 2007
• September 2006 • May 2007 •XXXXX key users
• 12 key users • 62 key users
LEGO Factory 2007-25-04 / Page 91
93. Thanks for
listening!
mwh@lego.com
This year, more than 400,000,000 children and adults will play with LEGO bricks.
[ - virtual LEGO bricks not included]
LEGO Factory 2007-25-04 / Page 92
94. How Future Consumers will Change the Game
‘A people led approach to innovation’
Gus Rodriguez
Kees Jacobs
‘Organising People’s lives’
Alastair Bruce
‘User-driven Internet’
(by Kees Jacobs)
‘Community co-creation’
Mark Hansen
Future Consumer 93
95. "Companies don't fail
because they do the wrong things;
they fail
because they continue to do
what used to be the right things
for too long”
(How) will you let
future consumers
change your game ?
Future Consumer 94
96. Thank You !
How Future Consumers will Change the Game
ECR Europe Conference
27 May 2008, Berlin