Industry trendswebex 033014vii
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Critical Industry Trends And What To Do About The Right Now. For link to complete Webex audio, email jkramer@rocktenn.com
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Industry trendswebex 033014vii
- 1. March, 2014 Critical Industry Trends And What To Do About Them
- 3. ON-SITE INSIGHTS Collabora'on Crea'on
- 4. ON-SITE INSIGHTS Collabora'on Content Sharing The Effect of Change on Retail Displays & Marketing Webinar Crea'on
- 6. WHAT WE’LL DISCUSS Critical Trends Facing The Industry • Retail • Consumer • Shopper
- 7. WHAT WE’LL DISCUSS Critical Trends Facing The Industry • Retail • Consumer • Shopper Implications For The Business • Logistics • Technology • Marketing A Vision For Tomorrow • What it will take • What you can do right now
- 8. CRITICAL TRENDS FACING THE INDUSTRY Multiculturalism MillennialsSeniors Big Data Mktg MobilePersonalization Digitization of Products
- 9. DRIVERS OF CHANGE Retail Future 2020
- 10. DRIVERS OF CHANGE Retail Future 2020 Political Economic Social TechnologyIndustry
- 11. DRIVERS OF CHANGE • Deferral of major life stage decisions – Marriage, kids, home ownership • Low population growth • Multi-cultural àAcculturation Social
- 12. DRIVERS OF CHANGE • Deferral of major life stage decisions – Marriage, kids, home ownership • Low population growth • Multi-cultural àAcculturation • Aging… absolute size of 55+ • Ex-urbanization • Health & Wellness – Active vs. Inactive • Home Ownership – Rental Society • DIFM vs. DIY – More services Social
- 13. IMPLICATIONS • Low Shopper base growth • Smaller Households • Decline of Mass Marketing Social
- 14. IMPLICATIONS • Low Shopper base growth • Smaller Households • Decline of Mass Marketing • Increased services – esp. health, financial, digital • Proximate /local vs. Destination stores • Essential vs. Discretionary mix • Increased focus on diet/nutrition Social
- 15. DRIVERS OF CHANGE • Significant Wildcards • Low economic growth • Improved full time workforce/Part Time grows Economic VISUAL
- 16. DRIVERS OF CHANGE • Significant Wildcards • Low economic growth • Improved full time workforce/Part Time grows • Declining Middle and Growing Higher income • “Real Inflation” outpacing wage growth.. • Inter-generational workforce Economic VISUAL
- 17. IMPLICATIONS • Retail focus on customer retention vs. acquisition • Marketing depth vs. breadth? Economic
- 18. IMPLICATIONS • Retail focus on customer retention vs. acquisition • Marketing depth vs. breadth? • Pricing & Mix vs. unit growth • Services critical Economic
- 19. DRIVERS OF CHANGE • Addressable market size, engagement and spend • Availability • Speed • Devices Technology
- 20. DRIVERS OF CHANGE • Addressable market size, engagement and spend • Availability • Speed • Devices • App integration • Analytics (big data/targeting) • Payment options • Economics, Assortment, Logistics Technology
- 21. IMPLICATIONS • Digital engagement • New consumer behaviors • Retail Apps will emerge Technology
- 22. IMPLICATIONS • Digital engagement • New consumer behaviors • Retail Apps will emerge • Keep best shoppers out of search § Personalization • New business models drive new revenue streams and competencies Technology
- 23. IMPLICATIONS Mobile & Digital List Management Will Drive Grocery Online Source: Retail Net Group 2014
- 24. IMPLICATIONS Mobile & Digital List Management Will Drive Grocery Online Source: Retail Net Group 2014
- 25. IMPLICATIONS Mobile & Digital List Management Will Drive Grocery Online Source: Retail Net Group 2014
- 26. IMPLICATIONS Price Comparison Store Navigation Mobile Checkout Mobile Payments “Check-in” Product Search & Availability List Management Mobile Offers
- 27. IMPLICATIONS Price Comparison Store Navigation Mobile Checkout Mobile Payments “Check-in” Product Search & Availability List Management Mobile Offers Walgreens 3rd party app Aisle411 item locations Walmart List Management & Navigation
- 28. rce: Retail Net up 2014 Content + Commerce are Blurring
- 29. Mobile Apps Second Screens Where-to-Buy Tweet to Buy Shoppable AdsBuy from Video Image-Base Discovery rce: Retail Net up 2014 Content + Commerce are Blurring
- 30. "In the future, app development is going to be just as important as property development," Phil Clarke, CEO Tesco
- 31. DRIVERS OF CHANGE • Low Organic Growth • Small Box and Digital growth • Productivity Drain on SBR= store based retail by Digital Industry
- 32. DRIVERS OF CHANGE • Low Organic Growth • Small Box and Digital growth • Productivity Drain on SBR= store based retail by Digital • “Channel” Re- Balancing § Proximity/Store Size more relevant than products carried • Consolidation/competitive intensity • Segmentation to find & Scale Opportunities Industry
- 33. IMPLICATIONS • Shopper Retention Focus • Smaller Boxes • Regeneration of Big Boxes – services, new models Industry
- 34. IMPLICATIONS • Shopper Retention Focus • Smaller Boxes • Regeneration of Big Boxes – services, new models • Fewer Sell To Points with more varieties to plan for • No net new stores • Segmentation Industry
- 35. DRIVERS OF CHANGE • Trust • Policy • The Fed Political
- 36. DRIVERS OF CHANGE • Trust • Policy • The Fed • Record revenue, spending & debt • Entitlements (over 70 income related programs) • Municipal and state regulation and taxation Political
- 37. IMPLICATIONS • Progress tempered • Complexity increased • Tax rates to increase to and through 2020 Political
- 38. IMPLICATIONS • Progress tempered • Complexity increased • Tax rates to increase to and through 2020 • Changes in government support spend directly impacts • State/local governments require more bailouts.. Political
- 39. SUMMARY Social & Demographic Change Retail Industry Consolidation More “Savvy” Shopper
- 40. SUMMARY Social & Demographic Change Retail Industry Consolidation More “Savvy” Shopper Need For Customization Downsizing Of Stores The “Game” Has Changed
- 41. IMPLICATIONS FOR OUR BUSINESS
- 42. IMPLICATIONS FOR OUR BUSINESS Source: Retail Net Group 2014 Logistics 25-40% will change Technology Apps & Analytics Investment Marketing Massive Re-Mix Merchandising 40% at Risk
- 43. IMPLICATIONS FOR OUR BUSINESS Services Grow to 30% of revenue 25% current store base @ risk Source: Retail Net Group 2014 Logistics 25-40% will change Technology Apps & Analytics Investment Marketing Massive Re-Mix Merchandising 40% at Risk
- 44. IMPLICATIONS FOR OUR BUSINESS LOGISTICS • Customization by retailer vs. COT • Customization SKU sort/region
- 45. IMPLICATIONS FOR OUR BUSINESS LOGISTICS • Customization by retailer vs. COT • Customization SKU sort/region • Smaller runs • Custom Packaging • “Immediacy” (Amazon Effect) • Increased complexity
- 46. IMPLICATIONS FOR OUR BUSINESS TECHNOLOGY • App Integration accelerating • Shopper requirements increasing
- 47. IMPLICATIONS FOR OUR BUSINESS TECHNOLOGY • App Integration accelerating • Shopper requirements increasing • Multiple touch points • Speed bumps on the road to retail • Increased complexity
- 48. IMPLICATIONS FOR OUR BUSINESS MERCHANDISING • Increased customization • Smaller runs • Variety of structures
- 49. IMPLICATIONS FOR OUR BUSINESS MERCHANDISING • Increased customization • Smaller runs • Variety of structures • Move to permanent • Increased complexity • Pressure on impulse
- 50. IMPLICATIONS FOR OUR BUSINESS MERCHANDISING • Personalization Drives Activation and Reduces Mass Media Source: Retail Net Group 2014
- 51. IMPLICATIONS FOR OUR BUSINESS MERCHANDISING • Personalization Drives Activation and Reduces Mass Media Source: Retail Net Group 2014
- 52. Evolving Manufacturer/Retailer Relationship Traditional Relationship Mfg. Marketing Mfg. Sales/Trade Retailer Marketing Shopper Consumer Retailer Merchandising IMPLICATIONS FOR OUR BUSINESS Source: Retail Net Group 2014
- 53. New Collaborative Relationship Mfg. Marketing Retailer Marketing Mfg. Sales/Trade Retailer Merchandising Shopper Insights Retail Store Experience Shopper Consumer Evolving Manufacturer/Retailer Relationship IMPLICATIONS FOR OUR BUSINESS Source: Retail Net Group 2014
- 54. IMPLICATIONS FOR OUR BUSINESS MARKETING • Local vs. National • Individual vs. Mass • Customer specific
- 55. IMPLICATIONS FOR OUR BUSINESS MARKETING • Local vs. National • Individual vs. Mass • Customer specific • Shopper focused • Technology enabled • Increased complexity
- 56. WHAT YOU CAN DO RIGHT NOW BREAK PAGE WITH VISUAL
- 58. WHAT YOU CAN DO RIGHT NOW Organizational Imperatives Customer Collaboration and Insights
- 59. WHAT YOU CAN DO RIGHT NOW Organizational Imperatives Customer Collaboration and Insights Fail Fast, Fail Cheap
- 64. INNOVATION DRIVERS Shopper Insights • Understanding Shopper Behavior in-store learning lab § Not what they SAY they will do Powered by C.A.R. … but what they really DO do. • Quantitative Analytics
- 65. Shopper Insights
- 69. INNOVATION DRIVERS Shopper Engagement Personalization
- 70. INNOVATION DRIVERS Brand Equity Enhancement Visual
- 71. CONCLUSIONS
- 72. CONCLUSIONS Trends are happening faster than ever Change is a constant
- 73. CONCLUSIONS Trends are happening faster than ever Change is a constant Store of the future is here today Shopper behavior changing dramatically Technology as an enabler impacting shopping Requiring change in all business disciplines
- 74. ON-SITE INSIGHTS KMCGOWAN@ROCKTENN.COM QR Code Email To Kathy
- 75. March, 2014 Critical Industry Trends And What To Do About Them