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TITLE insert text here THE FUTURE OF
RETAIL
#retailoasis
‘the future is here it’s just not evenly distributed’
long live millennials
mobile #1 AI #2
experience is everythingtell don’t sell
change, the only constant
long live millennials
this year, millennials (gen Y) will surpass Baby Boomers as the largest living generation
source: Pew Centre
by 2020 Gen Y + Gen Z will be the dominant retail segments in dollars spent
Management Team* average age
the gap between management and consumer is growing
Source: Fortune * based on age of CEO taking office; ABS 2014
50 yo 34 yo customers
average age
16 years
this matters because:
they are powered by technology
ask ‘why’ more than anything else
want the truth - can get it off twitter
added to this are two very important shifts their generation will bring:
blended society female leadership
2050: US will be a majority non-
Caucasian (Australia will be
similar)
2030: there will be
more female millionaires than male
’75% of millennials consider the store the centrepiece of their experience….they may not come in as much as they use to, but they will be
more knowledgeable when they come in’
Myron Ullman, ex-Chairman +CEO J.C Penney
the physical store needs a new definition:
what this means:
business must shift it’s mindset
to meet the millennial
embrace diversity - culture and
gender
businesses need to act like their digitally native
mobile #1. AI #2
‘channels are a language retailers speak to justify what they’re spending on IT.
it’s not understood by the customer’
Sir Charlie Mayfield, Chairman, John Lewis Partnership
millennials check their phones three times more than any other generation
shift in customer behaviour:
Source: Sam’s Club
under armour: largest mobile fitness community
160m users
150K downloads
a day
my fitness pal
endomondo
map my fitness
health box
brands must follow their customer - not their competitors.
if you don’t have the talent - buy it. there is more talent sitting outside a business than in it.
it starts with mobile and now it’s AI
nearly $2B in sales will happen this year through a mobile digital assistant (like Siri, or Watson).
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what this means:
mobile first, play with AI
don’t be afraid to ‘buy’ talent
the real cost is in delaying
(not doing)
experience is everything
‘if people are going to go to the store, you need to make it worth it’
Sir Charlie Mayfield, Chairman,John Lewis Partnership
the store is not just about procuring product – you can do that online.
it’s about experience, and people will pay for
experience.
experience isn’t a cost, people will pay for experience.
look at Starbucks they took a 50c commodity and made it into a $5 experience.
TITLE 3x 1 jeans
3x1 - SOHO3x1 - soho
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TITLE the laundress
the laundress - soho
abc home - flatiron
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TITLE lululemon flagship
lululemon - flatiron
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Kit & Ace - NOLITAkit & ace - nolita
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KITH - LES
what this means:
experience is your obligation at
store
it’s brand building if done
well
a product isn’t enough to get
traffic
tell don’t sell
we are marketing machines.
it gets worse when you look at millennials.
they’re more informed, more connected and way more skeptical - all thanks to tech.
they don’t care about your shareholders - they see themselves as the most important part of
the equation
the facts
your authenticity commands their
respect. tell them your story, make it human -
not corporate.
they want to buy into what you’re doing for
the world - make it better (not generate a
sale)
story spiritual stakeholders
eataly - milan
‘we dreamt of making high quality Italian food available around the world – eat, shop and learn about the Dolce Vita’
Oscar Farinetti, Founder, Eataly
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soul cycle
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"it is the place people come, regardless of their age, athletic ability, size, shape, profession or personality, to connect with their best selves."
shinola - tribeca
TITLE insert text here ‘our purpose was to create jobs for people -
not product’
“the purpose of business is to improve the community - it’s not a monolithic opportunity
where there’s a transaction and you made money -
understand the importance in the long-term of being an important part of the world. “
Myron Ullman, ex-Chairman +CEO J.C Penney
what this means:
work with stakeholders as important as shareholders
lead with purpose - why do
you exist?
treat your customer like a human - with
heart
the only constant is change
nothing is forever, except change
major companies have lost on average 2% market share over last 10 years.
they bet on stability in a world of change.
source: Deloitte
there is no destination only a continual journey. it’s not about your competition but superseding yourself.
'focus on your customer’s needs and be willing to cannibalise yourself...one of our most successful businesses was 'travellers
cheques' - generating 90% of our profits. if we had not cannibalised ourselves then we
would not be in existence now'
Kenneth I. Chenault, CEO, AMEX
‘don’t be worried about the next up and comer be worried about the competition
that doesn’t exist yet ‘
Kevin Plank, Founder, Under Armour
uberpool
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ivivva
TOMS - NOLITA
“we’re dealing with business models that aren’t as efficient as they use to be..
it’s not what the change is; but how do you change continuously”
Sir Charlie Mayfield, Chairman, John Lewis Partnership
what this means:
success is continual change
it’s only about people
supersede yourself
long live millennials
mobile #1 AI #2
experience is everythingtell don’t sell
change, the only constant
“perpetual optimism is a force multiplier - convey an attitude of ‘it can be done’
(and it will be)”
finally…
ADDRESSLevel 4, 1a Rialto Lane Manly NSW 2095, Australia
WEB PHONE+61 2 9976 6222www.retailoasis.com
