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Developments in Urban Retailing and its Impacts on Packaging Packbridge Research Forum 18 May 2016

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Developments in Urban Retailing and its Impacts on Packaging Packbridge Research Forum

18 May 2016

This presentation

Anderson Lima – Research Associate

• Developments in Urban Retail • Urbanisation and Consumerism Sukky Jassi – Research and Operations Manager

• Impacts on Packaging • Case Studies

Developments in Urban Retail

“Humans have shorter attention span than goldfish, thanks to smartphones” – The Telegraph

Reshape and redistribution of wealth – new socio-economical and geographical focus.

Smartphones Changing Cities – stress relief from modern urban living. 1billion emerging-market consumers joining the middle classes by 2025. Decline in ‘High Street’ and the rise of a ‘global’ connected consumer. Growth on all online platforms influencing purchase behaviour. Urban consumers want total control, simple processes while still having

multiple options. Designing consumers experiences is influencing everything from

communication channels to design of retail spaces and that includes packaging. Urban dwellers have extremely low attention span – too much to filter! Packaging is another touch-point channel.

Developments in Urban Retail: Context

Changing face of Retail

Subscription Online Vending Drones

Click & Collect Pop-Up Convenience Mobile

Developments in Urban Retail: Physical

The Retail space is not the destination is only part of the journey. Stores are becoming disruptive challenging old conventions. Urban retail is personal it engages with the shopper in a 1-2-1 conversation. Caters for instant gratification and a ‘micro-moment’ culture. Build (in-store) collaboration. Embraces local while keeping a global outlook. Promotes social shopping (moving beyond transaction) – immersive

shopping. Spatial must also become conversational (story-telling) – Content, Context

and Intent. Make the whole experience an epic story!

Urbanisation and

Consumerism

“…the distinctions between physical and online are

quickly vanishing turning the world into a showroom

without walls” – Jolfsson B and Rahman (2013)

two-thirds of population

will live in cities.

World Population

now lives in Cities

Cities such as: Tokyo, Jakarta,

Dehli, New York, Beijing,

Shanghai, London,

55%

2030

Rise of Mega Cities

29 mega-cities

boast 10m or

more people,

accounting for

7.2pc of humanity

World Population

Expected to be

8 Billion by 2025

7.2 Billion

Urban Trends

adults in the

UK 20 to 34

living with

parents

Global increase

in number of

people living

alone between

1996-2011

The idea of families being based around a married

couple does not hold true in Europe which has the

highest rates of cohabiting family groups.

80%

2013

The normal Family?

The average age of a

mother giving birth

in England and Wales

in 2012 was 29.8

years the highest.

3.3 million

Family sizes and fertility

rates are decreasing

globally. EU average

was 2.3 in 2013 down

from 2.4 in 2010

Urban Trends

Social Technologies Interplaying with Urbanism

“I want it all, I want it now…” – Queen.

“Selfie” and “Snap” moment culture.

It feeds the current hedonistic consumption life-style.

Fast pace life - adapt or die – Digital Darwinism.

Social Technology is becoming an extension of mankind whereas the smartphone is the operational system and communication interface.

66% are more likely to look up a store if they see a friend check in on social media.

Two Key questions: Today’s urban consumers are more empowered than ever before – How is

likely to affect retailers customer engagement strategy?

How can retailers better target audiences using new social technologies to build lasting remarkable experiences that seamlessly respond to customers needs across all channels?

Social Technologies Interplaying with Urbanism

As humans we like to buy experiences

…but what makes a memorable experience?

It must be pleasurable and rewarding

…surprising and unexpected

Fear and Anxiety…

Sensory Interplay

Many brands have

a sensory

signature, this can

be linked to any

sense.

Integrated Sensory experiences and Sensory Signatures

Burberry Strong multi-channel strategy,

integrating online and offline to enhance brand experience across all touch points

60% of marketing budget into digital strategy.

‘Bespoke’ platform launched

c

ArtoftheTrench.com launched

Continued investment in flagship markets – strengthening position in 25 cities that account for majority of retail sales

Tiffany Many products / brands have very

recognisable attributes appealing to one or more senses.

As a concept, “Sensory Signature” helps customers through sensory stimulus ascribe attributes and differentiate between brands.

Tiffany Blue is not the primary colour of many of the company’s products yet is almost present featured as an accent or background in the design, packaging, website, promotional materials etc.

Companies are becoming aware of sensory attributes

Best example of sensory signature is Tiffany Blue and the shade of light blue that can be found in many of the products made by Tiffany & Co.

Though not developed with sensory marketing in mind - one of the most recognisable sensory signatures!

DS / Citroën

• First phase of their campaign reached over 36 million impressions and nearly eight million video views and had a 20% engagement rate.

• Citroën adopted the “The DS Writer” concept which built on a five-episode web-based film series plus an exclusive novel written primarily for DS Automobiles by novelist Joël Dicker.

• Retail promotion through highly interactive pop-ups

stores in partnerships with major shopping centres. • Prospective clients are encourage to take pictures

and post straight away in their Facebook page or onto their Twitter account.

• DS has been positioned almost exclusively an urban brand.

• Facebook as the optimal channel to drive awareness and promote their launch event across 39 countries.

Personalisation Set Packs Increased Impact

& appeal

Portion Size On the Go

Added Value

Convenience Real-time information

Packaging Trends

Experience Packaging

Coca-Cola

• Coke have unified its brand architecture to clean up any confusion in the marketplace as research showed UK consumers do not fully understand the difference between the four brands.

5% have no idea that Diet coke and Coke Zero has no sugar or calories. “The bigness of Coca-Cola resides in this humbleness, in its simplicity.”

– Innovation Enterprise. Emotional storytelling is one of the key elements of the campaign

playing up the experience of drinking the beverage. Advertising is not the main issue but the general negative perception

in a health-conscious society.

'Packaging is our most visible and valuable asset,' Marcos de Quinto, Coca-Cola Company's Chief

Marketing Officer.

In Summary

“Omni-Channel”

“Security”

“Assures”

“Personalisation”

“Portioning”

“Lifestyle Responding”

“Convenience”

“Premium”

“Adds Value”

Contact

Anderson Lima – Research Associate

Contact:

T: +44 (0) 113 8126087

E: [email protected]

Sukky Jassi – Research and Operations Manager

Contact:

T: +44 (0) 113 8126087

M: +44 (0) 7785 433980

E: [email protected]