Luxottica Group Retail Futures

Luxottica Group

Retail Futures An Overview for Brands

LS:N Global : Luxottica Group : Retail Futures ‘The goal of all brands is to reach consumers wherever they are – online, in a store or on their smartphone or tablet device’Sharon Edelson, retail specialist

LS:N Global : Luxottica Group : Retail Futures

At Home 103, Seoul, South Korea

Financial uncertainty, austerity measures and job cuts continue to create some of the toughest trading conditions in the UK, Europe and the US.

High unemployment, falling wages and rising inflation are keeping consumer demand weak


Adidas store, Schulterblatt, Hamburg

Eurozone woes

In February 2013, Eurozone retail saw its fastest drop in revenue in nine years, with France, Italy and Germany all showing steep declines.

Source: Markit

Almost two-thirds (64%) of Europeans believe the recession will last

for another year

Source: Nielsen


& Other Stories, London

But opportunity on the high street is re-emerging and consumers are spending again.

UK high street spending rose by 1.3% in May 2013

The EU Economic Sentiment Indicator increased by 2.4 points in July 2013

Sources: European Commission, The Commerce Department


Gucci artisan

Luxury resilience

Luxury retail remains buoyant despite long-running Eurozone and US economic turmoil as consumers in emerging markets keep spending at home and overseas.

The global luxury goods market will expand by 7–9% a year until the middle of the next decade

Source: Bain & Company


Restaurant Day, Helsinki

Generation C

New platform shifts have ushered in a new consumer who is collaborative, creative, conversational and critical.

‘Collaboration is occurring on a deeper level than token associations. This is an opportunity for companies to enter longer-lasting, symbiotic relationships with customers’

Lauren Anderson, innovation director, Collaborative Lab

LS:N Global : Luxottica Group : Retail FuturesCollaborative Culture

These Generation C consumers, along with our growing use of mobiles and phablets, have also made brands:

Less hierarchical and more heterarchical

Less competitive and more collaborative

Less corporate and more cultural

These changes have gamified consumer thinking, making it more experiential, immersive and, in the words of Charles Leadbetter, a world in which ‘the audience is taking to the stage’

Unlock the 007 in You vending campaign by Coke Zero


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Unlock the 007 in You vending campaign by Coke Zero


BMW Guggenheim Lab, New York

Village brands

Consumers want brands to behave less like brands, to adopt causes and think locally.

The Shed, a California food market, sells locally sourced produce and hosts in-store lessons on preparing local food

The Guggenheim Lab by BMW tours to areas in cities and acts as a rolling think tank to approach systemic urban issues


Pact branding by Acre

Singleton tsunami

Solo living in cities is shaping the future of retail as global urbanisation gathers pace.

Adults under 65 who live alone account for 17.6% of all households in the EU

By 2020, the number of single-person households will reach 253.8m

Sources: Eurostat, Euromonitor


YO! Home at 100% Design by Simon Woodroffe, London

Urban box-cutters

Singleton migration to city centres is forcing big-box retailers to abandon their out-of-town megastore strategy in favour of smaller, urban box lets.

Carrefour is expanding its Carrefour City urban mini-markets in France

Best Buy has closed 50 of its out-of-town US stores to open 100 smaller urban outlets


De Los Austrias Pharmacy, Barcelona

Grey affluents

Growing numbers of ageing, affluent consumers are creating demand for health-based retail markets and services.

31% of senior US citizens enjoy a high income

UK Baby Boomers control 80% of the country’s net personal wealth

Sources: US Federal Agency Forum, Chartered Insurance Institute


Chime for Change platform by Gucci

Womenomics revolution

A confident generation of women who will have €20.7 trillion to spend by 2014 are seeking female-friendly ways to do so.

Source: The Huffington Post

Gucci has unveiled an empowering platform, Chime for Change, while Adidas launched its ‘All in’ campaign


All in for my Girls campaign by Adidas

LS:N Global : Retail Futures : Global Market Overview

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Chime for Change platform by Gucci

LS:N Global : Luxury Futures : Market Overview

Pact, a symbiotic space that houses a restaurant, hairdresser and a shop, Singapore

New Affluent Millennials

The Millennial generation is rapidly becoming the prime focus of the lifestyle industry as brands look to them to drive growth.

: Millennials will become the most important consumer market for luxury between 2018 and 2020

: Millennial spending power has already reached €148.2bn a year

Sources: Unity Marketing, Kelton Research


Photography: XXXXXXXXX

Pact, a symbiotic space that houses a restaurant, hairdresser and a shop, Singapore


The Edit magazine by Net-A-Porter

Content convergence

Retail brands are rethinking the way they talk to their consumers and increasing their investment in editorial content.

Net-A-Porter publishes a weekly online magazine called The Edit

•LVMH has invested in the Nowness and Business of Fashion brands


Snap Fashion

Omni-channel rising

The next stage of digital and physical retail convergence, omni-channel retail, enables consumers to have a highly immersive brand experience regardless of the platform.

Omni-channel customers spend about four times as much as people just shopping through the usual channels

Stephen Sadove, outgoing chairman and CEO of Saks Inc




Snap Fashion


Sainsbury’s Mobile Scan & Go

Thumbtail v Touchtail

In 2012 mobile retail was projected to grow from €396.2bn to €774.5bn in 2016.

In the UK, £1 in every

£10 is now spent via a mobile channel

Sources: Morgan Stanley, Centre for Economics and Business Research


Card Case app

Touchtail v Nametail

The Card Case app enables consumers to pay for a product simply by stating their name.

‘Smart services such as these are the loyalty cards of this decade. They will become the main contact point between retailers and customers’

Jon Carney, managing partner, Somewhat


Card Case app



Data.anatomy by Ryoji Ikeda for Honda Civic, Kraftwerk, Berlin

Mega-system retail

Apple, Amazon, Alibaba, Google, Facebook and Sina Weibo are also changing the way we do business online and on mobile.

They have become online mega-systems – or rather mega-retailers – within which millions of consumers live, browse, socialise and shop


Google data centre, Georgia, US

Amazon’s 2012 revenue was €46.2bn thanks to sales across 40 product categories including media, technology, wine, cars, fashion, beauty and luxury

Google’s 2012 revenue exceeded €37.9bn across its search, advertising, YouTube, Blogger, Android and email platforms


Durex Fundawear campaign

Cloud Consumerism

By 2020 there will be 50bn connected devices on the planet, each connecting us to the internet and to each other

Source: Cisco

Plugging into these possibilities, brands and consumers are already using experiential, haptic technologies to enable us to touch, feel and download everything from 3D products to feelgood experiences




Durex Fundawear campaign



Big Data Tunnel art from Big Data conference, UK

Mega-mall tactics

Against these changes, we have note a new paradigm shift in retail, social commerce and blurred-sector selling:

Gated retail

Walled rewards

In-system privileges

Total retail

All are reactions to, or protests against, the ubiquity of the mega-systems


YSL Devoted to Fans #1 cosmetics

Gated retail

Retailers are learning from the mega-systems. Some are using the walled-garden

model to offer members-only style benefits.

Soldsie enables Facebook sales using its Comment tool

YSL created a limited-edition product collection, Devoted to Fans #1, purely for its Facebook friends


Google+ Hangout Live at Topshop Unique autumn/winter 2013

In-system privileges

American Express’s Pay by Tweet service enables customers to pay for goods from within Twitter

Google Local runs events that bring social networking into the real world for Google+ members, and Google+ Hangout offers access to exclusive events

Google+ stages shoppable Hangout with Diane von Fürstenberg at her shop


The Polaroid Foto Bar at CES 2013 let people convert digital photos into high-quality prints in-store

BAM fights back

Retailers are fighting back against online mega-malls with free returns, payment booths, drive-through customer service centres and local pick-up sites.

ShopRunner works with retailers to offer price-match, free shipping and free returns

Analogue brands such as Polaroid are bringing new media in-store to extend their lifespan


Warby Parker website and flagship store, New York

Clicks and mortar

Online retailers, including mega-systems, are realising how important offline retail is to the consumer experience.

eBay has started creating physical pop-up shops

Google is rumoured to be opening a store

US eyewear e-tailer Warby Parker has opened a flagship store with digital photo booth and offers try-on-at-home services


The Etsy retail space in Brooklyn, New York

‘Pure play online retailers need to be flexible and think about opening physical stores.’

Robert Gregory, global research director, Planet Retail

Etsy’s first retail space combined shopping with convivial experiences


Burberry spring/summer 2014 show shot with iPhone 5S

Total retail

Established brands are also piggy-backing on the mega-systems’ multi-channel reach.

Topshop live-streamed its catwalk show on Google and leveraged social buzz through its Be The Buyer app

Burberry collaborated with Apple to showcase its iPhone 5s camera, by allowing the brand to create all the high-definition photos that were shared of the show on social media


Jeanius Table at the Selfridges Denim Studio

Phy-gital spaces

As digital aesthetics come into the physical world the mega-systems will be seen and experienced in stores.

Selfridges has introduced an interactive digital Jeanius Table for its denim lounge, guiding consumers by size, brand and fit

Alexander McQueen’s McQ store features clever interactive mirrors and a digital table with show imagery


Google and Berg’s connected products are the forerunners to the Internet of Things

Branded lives

Through the Internet of Things, mega-systems will further penetrate our lives.

As home appliances, cars and clothes become connected, our surroundings will belong to one or another walled garden.

We will live entirely through tools synchronised with our chosen eco-system enabling us – and the mega-systems that touch us – to understand and exploit all deep data


Bespoke scent tailoring by Commodity, Los Angeles

Predictive retail

Retailers will use data profiles to know customers’ tastes so closely that they will send them products directly.

Payment will be taken automatically via pre-synchronised accounts.

Deliveries will be timed to fit each customer’s calendar, accessible online via the omni-synchronised mega-systems


Made by Humans, Hyundai Vision Hall by Universal Everything

Whole-person profiles

As big data moves beyond shopping to look at other lifestyle needs, it will compile more complex digital personae.

Spending history, personal health, fitness records, media consumption and education are being logged online. These will be combined to construct whole-person profiles


Facedeals facial recognition system by RedPepper, US

Face-to-place payments

Frictionless, check-in commerce payments will evolve from mobile wallets to technologies that recognise you as you walk into a store.

: The Facedeals system recognises people as they enter a store, and then offers deals specific to them


LS:N Global : Luxottica Group : Retail FuturesRetail Futures Toolkit

Make your brand collaborative and keep its messages conversational

Be a village brand

Be present, available and shoppable across all platforms

Piggy-back onto the mega-systems to offer tailored rewards

Be experiential, immersive and live

Embrace mobile – power of pocket is the future of profitable retailing


Thank you

[email protected]@lsnglobal.com

Luxottica Group