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The Tomorrow Store The Dawn of the Mega-systems Friday, June 7, 2013

The Tomorrow Store

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Page 1: The Tomorrow Store

The Tomorrow Store The Dawn of the Mega-systems

Friday, June 7, 2013

Page 2: The Tomorrow Store

Friday, June 7, 2013

Page 3: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

‘Technology and platform shifts mean we will transform how we sell, market and innovate in the next five years. There will be lots of roomfor everyone’Daniel Burrus, futurist

Friday, June 7, 2013

Page 4: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

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

The Dawn of the Mega-systems

Apple, Amazon, Alibaba, Weibo, Google and Facebook are no longer simply trading platforms. They are the mega-systems or mega-malls of tomorrow.

As life becomes more digital, we are fuelling the rise of these all-encompassing companies – and heralding the dawn of a new era

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Google data centre interior, US

Amazon’s 2012 revenue was $61bn (€46.2bn, £40bn) thanks to sales across 40 product categories including media, technology, wine, cars, fashion, beauty and luxury

Google’s 2012 revenue exceeded $50bn (€37.9bn, £32.8bn) across its search, advertising, YouTube, Blogger, Android and email platforms

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Big data tunnel art from Big Data conference, UK

Apple is now the most valuable company in history thanks to its synched-up hardware and software

Facebook ranked as the top web destination in the US in December 2012. The network made $4.3bn (€3.3bn, £2.8bn) from advertising in 2012 across fashion, luxury, technology, travel, food and film

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Data.scan [No 1–9] by Ryoji Ikeda for MU, the Netherlands

Strange days indeed, when companies selling weightless products alongside solid ones now dominate retail as brands such as HMV, Comet, Borders, Jessops and Billabong have learned to their cost.

‘When the mega-systems shift strategy, it can really affect any company that relies on them’ Greg Sterling, Sterling Marketing Intelligence

Friday, June 7, 2013

Page 8: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Data.scan [No 1–9] by Ryoji Ikeda for MU, the Netherlands

Strange days indeed, when companies selling weightless products alongside solid ones now dominate retail as brands such as HMV, Comet, Borders, Jessops and Billabong have learned to their cost.

‘When the mega-systems shift strategy, it can really affect any company that relies on them’ Greg Sterling, Sterling Marketing Intelligence

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Twheel by Fluid Interaction, Finland

Convenience culture

Computing speeds are up 200,000-fold since 1980.

We now buy media in seconds. Amazon and eBay offer same-day delivery

Google Now lets shoppers check local store inventories in real time

eBay mobile uses software that enables users to close a sale within two minutes

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

AKT Motorcycle Facebook House ad by Rep/Grey

The gilded cage?

‘Google and Apple did not focus on the technology but on the business model.’ Dr David Cleevely, founding director, the Centre for Science and Policy at Cambridge University

Their business model takes the form of ‘gilded cages’ that lock users in by limiting the transferability of products, while wrapping them in a social web that eases their access to friends, families and status-driven fanbases

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

A Million Times by Humans Since 1982

The new Netorati

Mega-systems also benefit from the network effect.

This is why Twitter can build 500m monthly users and generate revenues of $350m (€267.8m, £234.1m) in 2012 in only six years.

Arcadia credits much of its £33.8m ($51.5m, €39.1m) profit rise in 2012 to Topshop’s social media presence, specifically its 750,000 Facebook fans

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

The Lifelogging clip-on camera by Memento takes two photos per minute, recording the wearer’s life

The Age of Everyware

Connected devices are gathering and transmitting data all the time.

By 2020 there will be 50bn connected devices

Source: Cisco

As information on consumer behaviour streams in from connected devices the mega-systems – and the brands they collaborate with – are doing all they can to mine it

Friday, June 7, 2013

Page 13: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

The Lifelogging clip-on camera by Memento takes two photos per minute, recording the wearer’s life

The Age of Everyware

Connected devices are gathering and transmitting data all the time.

By 2020 there will be 50bn connected devices

Source: Cisco

As information on consumer behaviour streams in from connected devices the mega-systems – and the brands they collaborate with – are doing all they can to mine it

Friday, June 7, 2013

Page 14: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments

The dawn of big data

Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives.

Facebook Graph Search and Google Local combine social networking with search

Friday, June 7, 2013

Page 15: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments

The dawn of big data

Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives.

Facebook Graph Search and Google Local combine social networking with search

Friday, June 7, 2013

Page 16: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments

The dawn of big data

Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives.

Facebook Graph Search and Google Local combine social networking with search

Friday, June 7, 2013

Page 17: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments

The dawn of big data

Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives.

Facebook Graph Search and Google Local combine social networking with search

Friday, June 7, 2013

Page 18: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Small Arms and Ammunition – Imports & Exports data visualisation by Google Chrome Experiments

The dawn of big data

Mega-systems are best at making sense of big data. Once organised, data sets represent consumer profiles. Companies use these to connect with consumers in a more rounded way and to resonate with people’s lives.

Facebook Graph Search and Google Local combine social networking with search

Friday, June 7, 2013

Page 19: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Equinix SY3 data centre, Sydney

Mega-mall tactics

Against these drivers, and the push of the mega-systems into our daily lives, we are noting a new paradigm in retail, social commerce and ‘blurred-sector’ selling:

Showrooming

Gated retail

Walled rewards

In system-privileges

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

Friday, June 7, 2013

Page 20: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Equinix SY3 data centre, Sydney

Mega-mall tactics

Against these drivers, and the push of the mega-systems into our daily lives, we are noting a new paradigm in retail, social commerce and ‘blurred-sector’ selling:

Showrooming

Gated retail

Walled rewards

In system-privileges

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

Friday, June 7, 2013

Page 21: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Homes Up is a Chinese store solely for showrooming

Showrooming

People still like to visit bricks-and-mortar (BAM) stores but now want to search online for the best deal first. This has led to the rise of showrooming.

‘People now carry a global showroom in their pocket.’Carrie Bienkowski, head of buyer experience, eBay

The Amazon app lets consumers compare prices online while in-store

Friday, June 7, 2013

Page 22: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Homes Up is a Chinese store solely for showrooming

Showrooming

People still like to visit bricks-and-mortar (BAM) stores but now want to search online for the best deal first. This has led to the rise of showrooming.

‘People now carry a global showroom in their pocket.’Carrie Bienkowski, head of buyer experience, eBay

The Amazon app lets consumers compare prices online while in-store

Friday, June 7, 2013

Page 23: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Homes Up is a Chinese store solely for showrooming

Showrooming

People still like to visit bricks-and-mortar (BAM) stores but now want to search online for the best deal first. This has led to the rise of showrooming.

‘People now carry a global showroom in their pocket.’Carrie Bienkowski, head of buyer experience, eBay

The Amazon app lets consumers compare prices online while in-store

Friday, June 7, 2013

Page 24: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

56 Broken Kindle Screens by Sebastian Schmieg and Silvio Lorusso

Anti-Amazonians

In protest against Amazon’s app, BAM stores are fighting back with targeted anti-Amazon tactics.

Best Buy has developed bar codes that are incompatible with Amazon’s app

Target and Walmart have banned sales of Amazon’s Kindle in their stores

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

YSL Devoted to Fans #1 cosmetics

Gated retail

But not all retailers are against mega-systems. Some are using the walled-garden model to offer members-only style benefits.

Soldsie enables Facebook sales using its Comment tool

YSL Beauty and Lacoste released Facebook-only limited editions

Mercedes-Benz sold a limited-edition model of the Smart car via Sina Weibo

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

ASOS Facebook Summer Sale 2012

Walled rewards

The new targeting means consumers can be given tailored rewards.

ASOS offered Facebook fans an exclusive sale that resulted in a 67% spend increase

Sports network AEG’s AXS Invite service lets ticket buyers save seats for friends

Malaysia Airlines’ MHbuddy app enables passengers to share itineraries with friends

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Google Hangout Live at Topshop Unique autumn/winter 2013

In-system privileges

American Express’s pay-by-tweet enables customers to pay for goods within Twitter

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

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

The Polaroid Fotobar at CES 2013 lets people convert digital photos into high-quality prints in-store

Return of the retailers

Stores 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

Friday, June 7, 2013

Page 29: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

The Polaroid Fotobar at CES 2013 lets people convert digital photos into high-quality prints in-store

Return of the retailers

Stores 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

Friday, June 7, 2013

Page 30: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Net-A-Porter pop-up to launch Karl Lagerfeld collection, New York

Clicks and mortar

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

Net-A-Porter created a pop-up Lagerfeld boutique and is launching a print magazine

eBay has started hosting physical pop-up shops

Google, despite denials, is planning stand-alone stores

Friday, June 7, 2013

Page 31: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

Net-A-Porter pop-up to launch Karl Lagerfeld collection, New York

Clicks and mortar

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

Net-A-Porter created a pop-up Lagerfeld boutique and is launching a print magazine

eBay has started hosting physical pop-up shops

Google, despite denials, is planning stand-alone stores

Friday, June 7, 2013

Page 32: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

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

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

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

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Topshop’s multi-platform catwalk show with Google

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

Friday, June 7, 2013

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Google Wallet payment app

These changes have likewise ushered in new behaviours and payment methods among brands, businesses and consumers

Friday, June 7, 2013

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C&A Fashion Likes, Brazil

VR/QR culture

What happens online is changing the way we shop for things in-store.

Retailer C&A Brazil created a link between the digital and physical worlds with Facebook-connected coat hangers.

The hangers show how many likes a garment has had and people in-store can see how popular items are before they buy them

Friday, June 7, 2013

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Fantasyshopper.com

Social selling

A microeconomy is springing from new social platforms.

‘As social media becomes the biggest area of online footfall it makes sense to fish where the fish are’Paul Smith, managing director of Techlightenment

Friday, June 7, 2013

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Friday, June 7, 2013

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Pingit app by Barclays

M-banking

The ability to make instant payments and changes to accounts on smartphones are changing how we bank.

: M-banking will attract 115m users in Europe and 86m users in North America by 2015

Source: Berg Insight

Barclays’ Pingit app enables people to send money using their mobiles. It has now been extended to the African market

Friday, June 7, 2013

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Card Case app by Square

M-commerce

The ability to make purchases through mobile phones is putting the store into the customer’s pocket.

: Mobile payment transactions will increase to $600bn worldwide by 2016, up from $172bn this year

Source: Gartner

Nearly 300m smartphones, or one in five globally, will be NFC-enabled by 2014

Source: Juniper Research

Friday, June 7, 2013

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Glamour Apothecary Wall, New York

The world of buying and selling will change dramatically as a result of these impacts

Friday, June 7, 2013

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Glamour Apothecary Wall, New York

Friday, June 7, 2013

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PayTouch System by PayTouch

New retail formats

Cashless payments will become the lynchpin of the components that make up the stores of tomorrow.

‘We can use digital technology in many ways to enhance retail. It’s a great opportunity, not a threat’David Judge, co-founder, creative agency StartJudgeGill

Friday, June 7, 2013

Page 46: The Tomorrow Store

PayTouch System by PayTouch

New retail formats

Cashless payments will become the lynchpin of the components that make up the stores of tomorrow.

‘We can use digital technology in many ways to enhance retail. It’s a great opportunity, not a threat’David Judge, co-founder, creative agency StartJudgeGill

Friday, June 7, 2013

Page 47: The Tomorrow Store

Net-A-Porter wall, London

Online fashion retailer Net-A-Porter used an augmented shopping window to merge online and offline.

Visitors to Vogue Fashion’s Night Out in 2011 could use smartphones and iPads to view information on items in the window and buy them

Friday, June 7, 2013

Page 48: The Tomorrow Store

PayPal Here by Fuseproject

Trader nation

Distinctions between retail and wholesale vendors and buyers will merge, as smartphones enable people to buy and sell anywhere.

Design agency Fuseproject has created PayPal Here, a system for electronic payments company PayPal that lets small businesses accept real-world card payments

Friday, June 7, 2013

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Pay with Square app by Square

Friday, June 7, 2013

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Pay with Square app by Square

Friday, June 7, 2013

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Pay with Square app by Square

Friday, June 7, 2013

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Pay with Square app by Square

Friday, June 7, 2013

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Tesco Homeplus, South Korea

Generation M

A generation of people will emerge who have never had, and will never have, access to a landline phone or fixed-place computer. Their expectations and attitudes will shape the market in the next 10 years.

‘Apps, payment systems and all content will be developed foremost for mobile devices that we hold in our hands’Amber Case, cyborg anthropologist

Friday, June 7, 2013

Page 54: The Tomorrow Store

Nuji.com

Co-commerce

Open sourcing means that customers are the new R&D team. Social media has turned customers into the new marketers. And now with Co-commerce customers can be the new retailers.

Nuji is a social shopping network that lets people curate their own shops online. Users earn discounts from retail partners when they sell items

Friday, June 7, 2013

Page 55: The Tomorrow Store

Nuji.com

Co-commerce

Open sourcing means that customers are the new R&D team. Social media has turned customers into the new marketers. And now with Co-commerce customers can be the new retailers.

Nuji is a social shopping network that lets people curate their own shops online. Users earn discounts from retail partners when they sell items

Friday, June 7, 2013

Page 56: The Tomorrow Store

Nuji.com

Co-commerce

Open sourcing means that customers are the new R&D team. Social media has turned customers into the new marketers. And now with Co-commerce customers can be the new retailers.

Nuji is a social shopping network that lets people curate their own shops online. Users earn discounts from retail partners when they sell items

Friday, June 7, 2013

Page 57: The Tomorrow Store

Creative Factory customisation platform by Spies & Assassins for Puma

These practices will usher in a new ecosystem of buying and selling

Friday, June 7, 2013

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Creative Factory customisation platform by Spies & Assassins for Puma

Friday, June 7, 2013

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Creative Factory customisation platform by Spies & Assassins for Puma

Friday, June 7, 2013

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Creative Factory customisation platform by Spies & Assassins for Puma

Friday, June 7, 2013

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Facedeals facial recognition system by RedPepper, US

Face to place

Frictionless 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. It then offers them deals specific to them

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Google office interiors, Moscow and Tel Aviv

Phy-gital mega-systems

Despite retailers’ current backlash against the mega-systems, the latter will own much of the infrastructure of connected commerce as it develops.

Total retail, as we call this, will be synaesthetic and immersive, and phy-gital shopping will become seamless under the mega-systems

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Google office interiors, Moscow and Tel Aviv

Phy-gital mega-systems

Despite retailers’ current backlash against the mega-systems, the latter will own much of the infrastructure of connected commerce as it develops.

Total retail, as we call this, will be synaesthetic and immersive, and phy-gital shopping will become seamless under the mega-systems

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

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

Friday, June 7, 2013

Page 65: The Tomorrow Store

The Tomorrow Store : The Dawn of the Mega-systems

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

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Smithfield Case uses individual preferences to compile personalised fashion packages for men in their 30s and 40s according to their lifestyle

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

Friday, June 7, 2013

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The Tomorrow Store : The Dawn of the Mega-systems

Align your brand with the values and style of the mega-systems

Introduce limited editions that take advantage of walled gardens

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

Use dynamic and streamlined visualisation styles to demystify data

Bring the digital into physical retail outlets with live streaming and location-responsive apps

Integrate the mega-system aesthetic into your graphics and retail design

Consider creating apps that side-step the mega-systems

Design your products to connect with the mega-systems through the Internet of Things

Understand the smartphone as a mobile wallet, tracker and micro-retailer

Friday, June 7, 2013

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The Tomorrow Store The Dawn of the Mega-systems

Friday, June 7, 2013