5 Trends that will shape The future of retail
Jul 16, 2015
5 Trends that will shape The future of retail
About Maxus GlobalMaxus Global is part of GroupM, the world’s largest media investment management group that serves as the parent company for all of WPP’s media agencies, and which buys over one third of the world’s media every day. The newest of GroupM’s agencies, Maxus was set up in 2008 to take advantage of the opportunities created by the digital age and to help its clients to ‘lean into change’
Maxus prides itself on being a global network of local agencies, focused on large local business (BT, ABF in the UK, Tata in India, Telecom Italia in Italy) and handling several international clients such as L’Oréal, FCA, GSK, Barclays, UPS and Church and Dwight.
At the core of Maxus sits Metalworks, its creative technology R&D division delivering interactive experiences for clients including GSK, Bayer, Tesco and others globally via a team of creatives and technologists.
Maxus Global employs over 2,500 people across 55 countries in 70 agencies worldwide and is the world’s fastest growing media network across the last five years (source: RECMA). It was named Campaign’s Global Media Network of the Year 2011, Ad Week's US Agency of the Year 2011, and one of Ad Age's ‘Agencies to Watch’ for 2012.
For more information visit: www.maxusglobal.com
Trend Reports Our team at Metalworks are dedicated to staying at the forefront of technology, and ensuring our clients are too. The Metalworks Trend Reports offer insight into c u r ren t t e chno l og i ca l advancements that will be affecting the way we use media in different industries
The Future of retailWelcome to this brief document that provides a taster of Maxus’ point of view on the future of the retail space. This is a topic that is close to our hearts; change in bricks and mortar retail environments is gathering pace as digital technology creates new shopper experiences. And in our Maxus Metalworks division we have built a creative technology unit who’s pioneering work in this area is giving a competitive edge to some of the worlds largest advertisers. Our view is that as consumers move to online retailers in search of the cheapest prices, the traditional role of bricks and mortar will change. We see this falling in two ways: 1. Bricks and Mortar will increasingly become about enjoying brand experiences.
Consumers expectations of shops will change, they will go to interact with brands in a more immersive and deep way than they are able to online. Much of this document explores the things that brands can do now to satisfy this. !
1. Bricks and mortar spaces will become more social. Just as the marketplace of old was both a space for shopping as well as one for gossip, so we will see retailers amending bricks and mortar spaces to bring people and communities together. They will promote good old-‐fashioned face to face human interactions.
We hope that you enjoy reading this document as much as we have enjoyed developing the tech that sits with it!
Nick Vale Global Head of Planning
Maxus
New ways to payTrend 1
The introduction of contactless payments has led to an influx of developments in payment technologies:!▪ Apple Pay facilitates thumbprint authenticated credit card
payment on iOS through its partnership with startup Stripe.!▪ Near-‐field communication technology (NFC) enables
shoppers with Google Wallet, Visa Paywave and Mastercard PayPass to do contactless payments. !
▪ Amazon and PayPal joins Square to develop their own mobile credit card reader bringing new Point of Sale (POS) options for retailers.
New WAYS TO PAY + Receive paymentTrend 1
Impact▪ Rise of an app ecosystem to help retailers better
manage data from their store POS of choice. E.g. Invoice sent to shopper’s email and used for loyalty marketing
▪ Shoppers pay with their currency of choice at the best available rate via devices. Crypto-‐currency like Bitcoin gets more mainstream.
▪ More alternatives means lower barriers of entry for upstarts to provide options for shoppers just like big retail stores. AMEX or installment purchase? No problem.
Secured contactless payments enabled by Bluetooth and compatible with Apple and Android devices.
OpportunityNew WAYS TO PAY + Receive payment
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Data Drives Brick & mortar storesTrend 2
Retailers will start to use mobile technology to better understand their customers:!▪ Enabled by Bluetooth, Apple’s iBeacons (embedded in
iOS7 and Android 4.4 Kit Kat) go mainstream as stores like Macy’s trial the technology.!
▪ Microsoft, Cisco & Intel create microsites to help retailers adopt Internet of Things (IOT) solutions that will enhance logistics operations and shopper experience.!
▪ Predictive analytics informs marketing tailored to shoppers’ data. Watch how Target use data to drive sales.
Data Drives Brick & mortar storesTrend 2
Impact▪ Proximity marketing is now possible with beacon
technology. Loyal customers are rewarded and new shoppers are given offers. Stores can tailor suggestions based on shopper interest and purchase history.
▪ Retailers can collect data such as footfall traffic, dwell times and repeat visits, using the data collected to adjust store displays and layouts, increasing sales.
▪ Retailers can monitor inventory in real-‐time via IOT enabled devices without the need for a stocktaking exercise.
Use store data to inform your marketing just like eCommerce stores. Gather/push data from beacon Technology.
Opportunity
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Data Drives Brick & mortar stores
Interactivity sells productsTrend 3
Retailers are putting real emphasis on the shopping ‘experience’ with these digital technologies taking consumers beyond the store walls:!▪ Trekking equipment store, Mammut, uses virtual reality
headset Occulus Rift to allow shoppers to experience cliff climbing in-‐store.!
▪ Macallan released its 1824 collection with holographic display telling the story of its heritage and whisky distillation process.!
▪ Transparent displays starts to go mainstream with electronic brands like Samsung and LG manufacturing their own versions.
Interactivity sells productsTrend 3
Photograph: Michael Bowles/REX
Impact▪ Product weaves into the brand story seamlessly and
becomes a talking point.
▪ Novelty of the presentation cuts through busy advertising and drives longer dwell times that encourage purchase from increased attention.
▪ Interactive content can be used to impress and educate new customers to help increase brand affinity and value perception. E.g. teaching a shopper how to appreciate good wine, or Swiss watches.
Bringing ‘gamification’ in the shopping experience e.g. A mirror that provides make-‐up suggestions based on a real-‐time face scan of the customer:
Opportunity
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Interactivity sells products
Store space aS media spaceTrend 4
Printed billboards lining shop walls are no longer enough to engage with digitally switched-‐on consumers, who are seeking entertainment in their shopping experience.!▪ TESCO Homeplus set up virtual supermarkets in South
Korea’s subway station. Items can be purchased by scanning QR code via a smartphone.!
▪ Ralph Lauren transformed London Bond Street retail store’s building façade into a 3D video show using projection mapping.
Store space AS media spaceTrend 4
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▪ Inject energy through light and sound display to an otherwise mundane environment.!
▪ Retail store owners can generate additional advertising revenue from renting media displays of product in stores. !
▪ Traditional advertising and media spaces can be transformed into retail showrooms for the masses to engage or shop.!
▪ Technology presentations help shoppers associate innovation to the brand.
Store space AS media space
A smart shelf that detects the product a shopper touches and serves product reviews and upsell suggestions via video or still image advertising.
Impact Opportunity
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Content CollaborationTrend 5
Fusing brands and products with content that tells a story enables retailers to sell a ‘lifestyle’, as these examples show:!▪ Theme-‐based pop-‐up retailer STORY collaborates with
Target to bring holiday-‐themed products in a mountain lodge designed store in New York City for Christmas.!
▪ Hardware enabler, PCH, collaborates with Radioshack to bring emerging consumer devices from startups to the public.!
▪ Target creates short film with store products for its Fall collection where viewers can shop while they watch.
Content collaborationTrend 5
▪ Retailers may inject new energy to their store collection by including curated products from designers and emerging startups.!
▪ Storytelling stretches beyond TV spots and can be expanded through online or offline experiences that lead to a purchase. !
▪ Regular scheduled content that’s highly curated and targeted builds brand loyalty and following. E.g. sending a couple that is about to be married wedding themed content and products .
Content collaboration
VideoFoundry -‐ A web application that allows busy marketing teams to create and tweak multi-‐variant HD videos on demand based on a single designer themed template!
Impact Opportunity
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ContactRichard Stokes, Global Marketing & New Business Director
[email protected] +442074703618
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