The document discusses key consumer trends and their impact on retail, including changes in demographics, technology, and consumer mindsets. It identifies trends like an aging population, increasing diversity, smaller household sizes, the growing role of mobile technology and e-commerce, increasing focus on health and sustainability. The document advises retailers to secure the basics of their operations, offer complete and relevant customer experiences across all touchpoints, use technology to enhance the customer experience, and offer a variety of payment options preferred by their local customers.

1. Key Consumer Trends and how they affect retail
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2. a more customer-friendly place
On a mission to make the world
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Alain Thys: ath@futurelab.net
Some credentials

3. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
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4. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
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5. (cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
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6. Demographics
Source: Eurostat, 2011
1991
2011
2021
WomenMen
Demographic Pyramid
EU-27
(cc) ThomasSoerenes
Shoppers are getting older
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7. Demographics
± 1/3 of the population
> 80% of the wealth
> 50 yrs old
Image: (cc) Chris_Parfitt
Shoppers are getting older
43.4
46.1
48
49.6
1999 2004 2008 2013
Sources: trendwatching.com, 2013
Cyril Huze Post - 2013
Average age of Harley Davidson driver.
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8. Demographics
Shoppers are getting more multi-cultural
Source: Daily Mail Online, August 2013
Immigration numbers by country, 2012
(cc)epSos.de
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9. Shoppers live in ever smaller households
(cc) arileu
Aging
Divorce
Choice
Career
Demographics
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10. Are you really taking their needs seriously?
Influence on retail
Store format – Merchandise selection – Staff behaviour & know how - …
(cc) augapfel© Galina Barskaya (c)Getty Images
Ageing Immigration Non-traditional households
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11. Catering to a specific age group
Remarkable practice
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12. Catering to different cultural values
Remarkable practice
Korea: Lavendel
Halal, Rice-based Skincare
Metropolitan restaurants
Halal food at McDonald’s
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13. Catering to singles
Remarkable practice
Slunch Factory (Korea)
Single household lunch box
Supermarket dating
Help singles meet
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14. (cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
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15. 98.1
90
80.5
64
35.9
3.7
16-24 25-34 35-44 45-54 55-64 65-74
Internet access by age group
Lithuania, Q1-2012
The internet ―has‖ changed the way we buy
Digital Reality
Source: Statistics Lithuania, August 2012
Holidays
Cars Books
What isn’t in Lithuania today, will come.
Insurances
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16. In-store smartphone usage per category
US, 2013
Mobile ―is‖ part of the shopping experience
Digital Reality
Source: Google Shopper Marketing Council, August 2013
―On an average day, more
than 100,000 unique
customers access
Nordstrom on a mobile
device, with nearly twice that
amount during the holidays,‖
In 2012, sales from a mobile
device accounted for over
20%—more than $260
million—of the company’s
total direct (digital) sales.
Compared to less than 4%
in 2010.‖
Source: Internet retailer, February 2013
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17. 36
43
53
60
Lithuania
2011
Lithuania
2012
Denmark UK
Sources: The Baltic Course, May 2013 - OECD, 2012
Ecommerce is part of life for every retailer
Digital Reality
% of population purchasing online
42% of UK electronic goods buyers
will look at products in store before
buying online from a different retailer.
Source: The Consumer Decision Journey, Microsoft, 2013
Image:(cc)CliveDarra
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18. Digital Transparency Rules
Digital Reality
Quality Price
Coming soon to Europe:
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19. Are you ready for the omnichannel reality?
Influence on retail
International competitionAlways on transparency Showrooming
Image: (cc) Clive Darra
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20. Make shopping easy
Remarkable practices
Panty Subscription Service (CA)
Fastest delivery
From store to house in minutes (UK)
…
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21. Is it a store or a showroom?
Remarkable practices
Apple stores John Lewis Exeter
About 60% of our customers buy both
online and in shops so the approach is
to make it absolutely seamless for them
to move from one to the other.
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22. Hybrid Shopping
Remarkable practices
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23. An unusual approach
Remarkable practices
Brisbane, Australia, 2013
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24. (cc)nggalai
Key shopper trends and how they affect retail
• Demographics
• Technology
• Mindset
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25. Scarcity
Mindset
Time Money
Decreasing disposable income
More planned buying
Growth in private label
Shrinking share of wallet for everyone
Life gets busier
Time scarcity = more efficient shopping
Desire for work-life balance = shopping is a chore
Desire for one-stop service & product shopping
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26. Indulgence
Mindset
Entertain meMake it beautiful (Design matters)
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27. Conscience (& scepticism)
Mindset
Health World
84% percent of millenials (18-32 yrs) in
Europe, Asia and US believe it is their
generation’s duty to change the world
Health and wellness is becoming a priority
but consumers find it difficult to decode
product labeling and nutritional claims.
The cat is out of the bag
Out of 5,296 products, 95% made at least one false claim
Source: Terrachoice, 2012
Source: Bord Bia’s 2010 Periscope study Source: The Guardian, April 2013
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28. Are you ready for changing consumer mindset?
Influence on retail
Health and environmentEfficiency with time & money Design and entertainment
Image: (cc) PhotoAtelier Image: (c) Mike Powell
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29. 19/03/2014 29.
Tesco Homeplus Korea (by now a ―classic‖)
Remarkable practices
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30. Disarming detractors
No one can do this on his own
Brand Utility Examples
GS 25 Virtual fridge
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Korean supermarket let’s
consumers store 2-for-1
promotions in a ―virtual
refrigorator‖

31. Italian food shopping … redefined
Remarkable practices
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32. Disarming detractors
No one can do this on his own
Remarkable practices
It doesn’t have to be so elaborate
HEB Supermarkets (Texs)
11% growth in men’s care products within 1 year
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33. Disarming detractors
No one can do this on his own
Remarkable practices
Just be honest
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34. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
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35. 19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relevant experiences
• Focus technology on the customer
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36. Disarming detractors
No one can do this on his own
Secure the basics
Yesterday, mistakes could be forgiven … no more.
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37. Disarming detractors
No one can do this on his own
Secure the basics
Digital Basics
Fast website
Easy shopping
Mobile availability
Online security
Quality home delivery
Variety in payment options
Social integration
…
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38. Disarming detractors
No one can do this on his own
Secure the basics
Retail basics
Opening hours - Retail standards
Staffing - Merchandise availability - Store design
(cc)JasonRosenberg
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39. Secure the basics
Tactically responding to customer queries
What is the % of helpdesk questions that “never get answered”
(Insites Consulting, 2010 – n=500 senior marketers in Benelux, France, Germany, UK)
11-28%depending on the channel
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40. Disarming detractors
No one can do this on his own
Secure the basics
Structurally acting on customer feedback
90%
Collect
Customer
Feedback
Alert Staff
to Findings
50%
Make
decisions
using
insights
30%
Deploy
improve
10%
Inform
customers
of change
5%
Source:BupaInternational,2009
DEBATE
WHERE IS YOUR
BUSINESS?
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41. Remarkable practice: Applying common sense to basics can take you far
Metro Bank
There’s more
Leave the bank with
your card
Have a coffee next
door if you need to
wait (with alerts)
Friendly & smiling
recruitment policy
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42. Disarming detractors
No one can do this on his own
Remarkable practice: Applying common sense to basics can take you far
Own experiences
Minimum Standards Brilliant Basics
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43. 19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relevant experiences
• Focus technology on the customer
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44. Complete & relevant experiences
To avoid misunderstandings
“Let’s spread love & hug” “Let’s be like Disneyland”“Let’s go WOOOOOWW!!”
When I talk about experiences I’m not talking about.
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45. Complete & relevant experiences
To avoid misunderstandings
I am talking about “really connecting” with your customers
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46. The biggest CX challenge
Most companies
wear blinders on
customer experience
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(cc) Emilio Labrador

47. 47
Travel company
Which are the customer steps when going on a holiday
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1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories

48. 48
Ask yourself
Which steps in the journey do travelco’s manage?
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1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories

49. 49.
Remarkable practice
CEE Mall: Different customers, different experiences
Planning Departure Journey Arrival Decompression Exit Journey Remember Returns
Shop
BuyDwell
The Shoppers Journey

50. 19/03/2014 50.
Deliver relevant experiences
Three steps
1. Map your customer’s TRUE journey (think ―beyond‖ your store)
2. Identify key choice and loyalty drivers for each shopper archetype you target
3. Develop experiences which match these drivers at EVERY journey step
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51. 19/03/2014(cc) Andreas Kollmorgen
Preparing for the changing retail reality
• Secure the basics
• Offer complete and relevant experiences
• Focus technology on the customer
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52. Embrace technology
Consider technology
• To enhance the experience
• To become more ―lean‖
• To challenge conventions
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53. Embrace technology
Look beyond the apps • Customer vs. Shopping cart analytics
Customer contacts
Support functions
Management
CEO
Customer Reality
Seamless Experience Single view of the customer
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54. Embrace technology
Look beyond the apps
Customer vs. Shopping cart analytics
Data Discovery
Predictive modeling
Customer
Intelligence
Voice of
customer
Voice of
business
Voice of
employee
Voice of
market
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55. Different customers, different styles
Selecting a handset Managing Services
Simple enough but not too simple
Tariffs Billing
Remarkable practice
Use technology to offer differentiated/relevant experiences
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56. Remarkable thought
Point of inspiration: Sharing Data?
SVP Digital Business, L’Oréal Group
“Brands and retailers need to let go of
their antagonistic negotiation model
and instead focus on working together
to maximise retail floor sales and
profit. Both stand to gain.”
Experiment:
Joint initiative L’Oréal-Carrefour make-up kiosk
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57. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
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58. A few words on payment
I Thought Long and Hard
(cc)BrianHillegas

59. A few words on payment
And it was tempting to go ―visionary‖
Disney electronic wristbandMobile (NFC) wallets Implants (Barcelona)
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60. A few words on payment
And it was tempting to go ―visionary‖
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Points on Kindle, tomorrow??
Alternative currency Pay with sweat
More airmiles than dollars?
1/3 of coffees purchased
It’s money
Jim, but not as we
know it

61. A few words on payment
But pragmatism rules
Offer every payment option Lithuanian customers desire.
Belgium
1. Credit card
2. Online bank transfer
Germany
1. Invoice & pay afterwards (58%)
2. Credit Cards (34%)
3. Variety of others
United Kingdom
1. Credit card (40%)
2. Debit card (35%)
3. Paypal (21%)ONLINE
(cc)FrankBlais
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62. Two questions to ask yourself
How can I simplify?
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63. Two questions to ask yourself
Who owns the customer?
―other‖ locations ??
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64. PART ONE
Key shopper trends and
how they affect retail
PART TWO
How to prepare for the
changing retail reality.
PART THREE
A few words on payment
• Demographics
• Technology
• Mindset
• Ensure the basics
• Complete & relevant experiences
• Focus technology on the customer
• Offer what your customers seek
• Always try to simplify
• Make sure you keep owning your customers
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E: ath@futurelab.net