Shop.org 2017 Kate Ancketill, GDR Creative Intelligence

1. 7.5 Billion bosses: Consumers are in charge now
Kate Ancketill, Founder and CEO at GDR Creative Intelligence

3. GDR
CREATIVE
INTELLIGENCE
GDR is a retail trends consultancy,
delivering the information that
unlocks and empowers innovation.
@gdruk kate@gdruk.comSubmit your questions #ConsumerView

4. GDR
CREATIVE
INTELLIGENCE
Contents:
A. State of digital being: trust in crisis
@gdruk kate@gdruk.comSubmit your questions #ConsumerView

5. GDR
CREATIVE
INTELLIGENCE
Contents:
A. State of digital being: trust in crisis
B. Four approaches to building
healthier relationships
@gdruk kate@gdruk.comSubmit your questions #ConsumerView

6. GDR
CREATIVE
INTELLIGENCE Ecommerce entering a new phase?
Source: eMarketer
Retail Ecommerce Sales Worldwide, 2015-2020
(Trillions, % change and % of total retail sales)
.00
1.67
.33
.00
2015 2016 2017 2018 2019 2020
$4.058
$3.418
$2.860
$2.352
$1.915
$1.548
7.4%
25.5%
14.6%
18.7%
Retail ecommerce sales % change % of total retail sales
Ecommerce is growing but there is perhaps less white space to run into
than there once was.
Amazon accounted for the majority
of ecommerce growth in 2016
(Share of 2016 sales growth)
other merchants
47% Amazon
53%

7. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
Meanwhile…
Millennial consumers are becoming more assertive,
sophisticated and discerning…and less inclined to give
you the benefit of the doubt.
They are in charge and they know it.

8. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
In this context, the ability to create healthy, trusting
relationships is a key differentiator.

9. GDR
CREATIVE
INTELLIGENCE
Background: Trust in Crisis

10. GDR
CREATIVE
INTELLIGENCE Trust in crisis
Location: Global
Source: Edelman Trust Barometer
Global study finds that, in two thirds of the countries surveyed, fewer than
50% of respondents have trust in the mainstream institutions of business,
government, media and NGOs to do what is right.

11. GDR
CREATIVE
INTELLIGENCE Hostility to the status quo
Location: US
Source: Harvard University
Harvard study finds that a majority of US millennials do not support
capitalism, pointing towards a disintegrating consensus

12. GDR
CREATIVE
INTELLIGENCE Millennials lead the way with online purchases
Source: NRF Research 2017 70% of Millennials say that more than 1/4 of their purchases are
made online
What percent of the items that you purchase do you typically buy ONLINE?
Your best guess is fine. Please consider all items that you purchase, incl. groceries, clothing, office supplies, etc.
0%
17%
33%
50%
0-25% 26-50% 51-75% 76-100%
7 in 10

13. GDR
CREATIVE
INTELLIGENCE Millennials are led by their values
Source: NRF Research 2017 64% of millennials agree that they would stop shopping
with a brand or retailer if they didn't share their values
How strongly do you agree or disagree with the following statement:
I would stop shopping at one of my favorite brands or retailers if I found out their values contradict my own
Disagree completely
Disagree strongly
Disagree somewhat
Agree somewhat
Agree strongly
Agree completely
0% 17% 33% 50%

14. GDR
CREATIVE
INTELLIGENCE Digital economy losing it’s halo
“The digital economy has gone wrong. Everybody
knows it, but no one knows quite how to fix it, or
even how to explain the problem. Workers lose to
automation, investors lose to algorithms,
musicians lose to power law dynamics, drivers
lose to Uber, neighborhoods lose to Airbnb, and
even tech developers lose their visions to the
demands of the startup economy.”
- Douglas Rushkoff
@gdruk kate@gdruk.comSubmit your questions #ConsumerView

15. GDR
CREATIVE
INTELLIGENCE FakeSpot
Location: Global Service analyzes product reviews to alert users to the
presence of potentially fake reviews

16. GDR
CREATIVE
INTELLIGENCE FakeSpot
Location: Global Service analyzes product reviews to alert users to the
presence of potentially fake reviews

17. GDR
CREATIVE
INTELLIGENCE
Building healthier relationships

18. GDR
CREATIVE
INTELLIGENCE
1. Tailor to implicit needs
2. Let the consumer in
3. Powerful proposition, authentic brand
4. Offer ‘trustless trust’ via the Blockchain
Building healthier relationships:
Four approaches

19. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
1. Tailor to implicit needs

20. GDR
CREATIVE
INTELLIGENCE Expedia
Location: US Online travel agent uses facial recognition to make
personalized trip recommendations

21. GDR
CREATIVE
INTELLIGENCE

22. GDR
CREATIVE
INTELLIGENCE Hilton
Location: Global Hotel chain’s sliding scale makes it easier to book using
loyalty points

23. GDR
CREATIVE
INTELLIGENCE Hilton
Location: Global Hotel chain’s sliding scale makes it easier to book using
loyalty points

24. GDR
CREATIVE
INTELLIGENCE Findation
Location: Global
www.findation.com
Comparison tool makes it easier to move between different
make-up product ecosystems

25. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
2. Let the consumer in

26. GDR
CREATIVE
INTELLIGENCE Savvy watch
Location: US
Design: PriceWaiter
Ecommerce plug-in lets customers haggle. The prompt pops
up when visitors attempt to leave the site without purchasing.
9% increase in conversion. Customers save 10% on average.

27. GDR
CREATIVE
INTELLIGENCE Volition Beauty
Location: Global
www.volitionbeauty.com
Make-up brand predicates its offering on co-creation and
community, obviating the costs of failure, and passing on the
discount. Voting for products and paying pre-retail gets 40% off.

28. GDR
CREATIVE
INTELLIGENCE Volition Beauty
Location: Global
www.volitionbeauty.com
Make-up brand predicates its offering on co-creation and
community, obviating the costs of failure, and passing on the
discount. Voting for products and paying pre-retail gets 40% off.

29. GDR
CREATIVE
INTELLIGENCE Tokywoky
Location: Global Plugin lets ecommerce customers talk with fellow shoppers.
3-4 times more people use TokyWoky compared to live chat.
Conversion 4-6x higher for users than non users. Websites
with reviews typically see 18% uplift in sales.

30. GDR
CREATIVE
INTELLIGENCE Frilly
Location: US
www.frilly.com
Multi-brand platform offers customizable women’s fashion.
Prices from $ 58 - $ 2,000

31. GDR
CREATIVE
INTELLIGENCE
Location: US Multi-brand platform offers customizable women’s fashion.
Prices from $ 58 - $ 2,000
Frilly

32. GDR
CREATIVE
INTELLIGENCE Frilly
Location: US Multi-brand platform offers customizable women’s fashion.
Prices from $ 58 - $ 2,000

33. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
3. Powerful proposition,
authentic brand

34. GDR
CREATIVE
INTELLIGENCE Ritual
Location: US Transparent vitamin subscription brand speaks directly
to category skeptics.

35. GDR
CREATIVE
INTELLIGENCE Ritual
Location: US
www.ritual.com
Transparent vitamin subscription brand speaks directly
to category skeptics.

36. GDR
CREATIVE
INTELLIGENCE Brilliant Co
Location: US
www.brilliant.co
Vertically integrated bicycle brand strips consumer
journey down to three steps

37. GDR
CREATIVE
INTELLIGENCE Brilliant Co
Location: US Vertically integrated bicycle brand strips consumer
journey down to three steps

38. GDR
CREATIVE
INTELLIGENCE Brilliant Co
Location: US Vertically integrated bicycle brand strips consumer
journey down to three steps

39. GDR
CREATIVE
INTELLIGENCE Brilliant Co
Location: US Vertically integrated bicycle brand strips consumer
journey down to three steps

40. GDR
CREATIVE
INTELLIGENCE Events and the culture behind a brand
Source: NRF Research 2017 Millennials are more likely to spend their disposable
income on experiences than other generations
Thinking back over the last 3 months, when you had extra money to spend, how did you choose to spend it?
Spent it on an experience such as a vacation, concert, or evening out
0%
17%
33%
50%
Baby Boomers Gen X Millenials Gen Z

41. GDR
CREATIVE
INTELLIGENCE Cotopaxi
Location: US Outdoors brand leverages social purpose and uses
ticketed adventure race to sell backpacks

42. GDR
CREATIVE
INTELLIGENCE Ritual
Location: US Transparent vitamin subscription brand speaks directly to
category skeptics

43. GDR
CREATIVE
INTELLIGENCE
@gdruk kate@gdruk.com
4. Trustless trust via the Blockchain

44. GDR
CREATIVE
INTELLIGENCE
Centralized
Trust is predicated on
a centralized authority
Traditionally there have been two kinds of trust architecture:
Trust architectures
Decentralized
The trust relationship
is purely peer-to-peer

45. GDR
CREATIVE
INTELLIGENCE The Blockchain and ‘Trustless Trust’
“In a trustless trust architecture,
it is possible to trust the outputs
of a system without trusting any
actor within it”
- Kevin Werbach
Professor of Law & Business Ethics, Wharton

46. GDR
CREATIVE
INTELLIGENCE
Location: UK Interactive labels track items and claims securely, from source to
shelf, without the need for a centralised data management
system. Uses sell-by dates as unique batch IDs.
Provenance x Co-op

47. GDR
CREATIVE
INTELLIGENCE Resonate co-op
Location: Global
www.resonate.is
Music streaming service is a blockchain powered cooperative, with an
innovative ‘Stream to Own’ model. 9 streams pay the artist what 107
streams on Apple, or 150 on Spotify pay.

48. GDR
CREATIVE
INTELLIGENCE Resonate
Location: Global Music streaming service is a blockchain powered cooperative, with an
innovative ‘Stream to Own’ model. 9 streams pay the artist what 107
streams on Apple, or 150 on Spotify pay.

49. ‘
GDR
CREATIVE
INTELLIGENCE
To build healthier relationships with
today’s more sceptical consumers:
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
Take outs:

50. ‘
GDR
CREATIVE
INTELLIGENCE
To build healthier relationships with
today’s more sceptical consumers:
1. Bend solutions around unspoken needs
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
Take outs:

51. ‘
GDR
CREATIVE
INTELLIGENCE
To build healthier relationships with
today’s more sceptical consumers:
1. Bend solutions around unspoken needs
2. Surrender the principle of total control
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
Take outs:

52. ‘
GDR
CREATIVE
INTELLIGENCE
To build healthier relationships with
today’s more sceptical consumers:
1. Bend solutions around unspoken needs
2. Surrender the principle of total control
3. Speak to a wider culture or purpose
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
Take outs:

53. ‘
GDR
CREATIVE
INTELLIGENCE
To build healthier relationships with
today’s more sceptical consumers:
1. Bend solutions around unspoken needs
2. Surrender the principle of total control
3. Speak to a wider culture or purpose
4. Consider blockchain as a new trust architecture
@gdruk kate@gdruk.comSubmit your questions #ConsumerView
Take outs:

54. GDR
CREATIVE
INTELLIGENCE
GDR
CREATIVE
INTELLIGENCE
If you’d like to get our weekly newsletter:
email kate@gdruk.com
Shop.org
Los Angeles, September 2017 Kate Ancketill, Founder and CEO

56. 7.5 Billion bosses: Consumers are in charge now
Kate Ancketill, Founder and CEO at GDR Creative Intelligence