PSFK presents Future of Retail report

PSFK presentsFUTURE OFRETAILa reportCo n s u lti n g PSP FS KF pK r p er se es ne tn stFUTURFUTU E ORF RETE OAF RET IA LICo n s u lti n gThe Time has come InTROdUcTIOnTo re-imagine The fuTure of shopping.Let’s think less about real estate, staff, footfall and online stores and retail outlets need to evolve to create experiences that drive and start thinking about the entire world as a store; one in which sales both in-store and within online social networks. we can easily make instant purchases regardless of time and place. Driven by technology, the web, community and the search Meanwhile, the traditional physical store remains as important as for ever-richer experiences, the world of shopping is undergoing ever, providing the environment in which a retailer can provide a sweeping transformation. this report seeks to understand the an unparalleled experience. through the dynamic use of space, forces of change and provide a framework in which we can the most successful store owners are pushing the boundaries of envision this new future. storytelling, product testing and education - aspects of evolved services that lead to loyalty and repeat sales.Beyond an evolving the decentralized shopping experience, retailers must begin to contemplate the impact of digital media and the effects it is having on purchase decisions. Connected devices, whether a mobile phone or a web-enabled in-store kiosk, are making what was once a solitary trip to the store a socially connected event. as shoppers go through the process of discovering new products, testing them, and reflecting on their purchases, they are sharing these thoughts with their social networks and influencing perception amongst their peer group. retailers must embrace and facilitate this sharing of information, WWW.PSFK.COM2 PSP FS KF pK r p er se es ne tn stFUTURFUTU E ORF RETE OAF RET IA LICo n s u lti n ghow will we shop InTROdUcTIOnTomorrow? where will we buy and whaT service will we expecT To receive?In the next 80 pages, pSFK will this report marks the first of GOALSprovide an analysis of the several upcoming ‘Future of’ • Identify the key trends driving change ABOUT PSFKin retailingpSFK is the go-to source for new ideas and Future of retail. We will reports, in which pSFK will • Inspire creative business to react with inspiration. the New York City based trends explore this future from the contemplate emerging trends engaging retail solutionsand innovation company publishes a daily news site, provides research and business perspective of brands, as they pertain to culture, PSFK PROcESSconsultancy, manages a network of experts and hosts idea-generating events. pSFK aims shoppers, retailers, and business and society. By pSFK conducted a research cycle during to inspire readers, clients and guests to make communities, highlighting how identifying change, we hope to which they searched for signs of change things better—whether that’s better products, and spoke to opinion leaders about shifts in better services, better lives or a better world.technology and our senses play provide a framework within the marketplace. our researchers gathered a role in the retail experience which readers can contemplate several hundred pieces of data that provided www.psfk.comboth literal and lateral inspiration supporting both in and out of the store. how present and future trends impacting the retail experience. cOnTAcT FOR mORE the trends identified within this innovation might affect their at the end of the research period, pSFK’s InFORmATIOn document and the examples businesses, their suppliers and team conducted pattern recognition to Jeff Weineridentify trends, the strongest of which are used to bring them to life are their customers.jeff.weiner@psfk.comfeatured in this document. inspired by innovation from For copies of this report visit:around the globe. www.psfk.com/future-of-retailWWW.PSFK.COM3 PSP FS KF pK r p er se es ne tn stFUTURFUTU E ORF RETE OAF RET IA LICo n s u lti n gKEy LEARnInGSIncreased access to the mobile web is freeing the retail experience from the confines of the physical and traditional online environment, The introduction of connected technologies into retail environments is allowing shopping to take place virtually anywhere.changing the ways that stores are able to provide customer service.Creating a flexible in-store environment through design, product Introducing likeminded products and services into standalone offerings and promotions, ensures that each visit will feel retail environments shows customers that a brand like a brand new experience.is confident in their core offering and looking to further enhance the in-store experience.Leveraging collaborations based on aspects such as locale or cultural Physical stores still provide the best means to communicate touchstones, maintains a brand’s relevancy in the eyes of the customer.with customers and offer a brand experience. Whether physically or through connected technologies, shopping is still In the new customer-centric approach to retail, stores need to best experienced socially.continually find ways to lower barriers to purchase and be prepared to make a sale whenever and wherever a customer is ready.In a connected world where access to information is fluid and transparency is the expectation, brands must actively take part in the Empower customers by providing them with all of the tools needed to conversation, otherwise their customers will do so without them.make an informed purchase decision.WWW.PSFK.COM4 PSP FS KF pK r p er se es ne tn stFUTURFUTU E ORF RETE OAF RET IA LICo n s u lti n gmAjOR TREndS1. World As retAil experienCe2. pre-vieW shopping 3. tAblet enAbled serviCe4. selling the ideAl5. every store As FlAgship6. ComplementAry CurAtion7. revolving deCors8. tAking the store to the Customer9. instAnt shoW & tell10. group CloutWWW.PSFK.COM5WORLd AS RETAIL ExPERIEncEBuy anything, anytime, anywherephotos by Catalina Kulczar-Marin ©2010 PSFK presentsFUTURE OF RETAILCo n s u lti n gWORLd AS RETAIL ExPERIEncEsummAry Mobile payment systems and product identification technologies are enabling users to interact with and purchase virtually any product they come across in the world, regardless of whether or not it is found in a traditional retail environment. the ability of an individual to buy almost anything they see, shortens the path to purchase immediAte produCt reseArCh, sAmpling App trAnsForms iphone into Credit store-Free shopping viA textby transforming any encounter into an And buyingCArd mAChineopportunity to make a sale.impliCAtions• Now that the potential for a sale exists anywhere, retailers and brands will need to be smarter about crafting products and services that can serve as standalone experiences • as more shoppers can access background information on their mobile devices. Brands will have to take the lead in how they tell the story about their product entire World As displAyand service in-App purChAsing For Augmented mobile Coupons oFFer opportunity For reAlity ContentretAilers to reWArd shoppers• retailers will need to find ways to lower the barriers to completing transactions, ensuring the process is easy and secure “ Everywhere will be a store, everything will be available • retailers can augment their in-store to buy and everyone will be involved in the sale. With the experience by allowing shoppers to access tailored content on their mobile technology available to us, I can snap a picture on my devices such as product information and camera phone of a friend’s shoes and get them shipped for limited-time promotions when visiting arrival when I wake up the next day.”physical locations– piers Fawkes, president, pSFKWWW.PSFK.COM7 PSFK presentsFUTURE OF RETAILCo n s u lti n gImmEdIATE PROdUcT RESEARch, SAmPLInG And BUyInGWORLd AS RETAIL Mobile applications like Stripey Lines, ShopSavvy and amazon use barcode-scanning or image recognition to enable users to quickly access information ExPERIEncEto research products, check pricing and availability and make purchases. through these applications users are able to do things like scan the barcode of a music album, access it through itunes and listen to a sample instantly.WWW.StrIPEylInES.COMWWW.PSFK.COM8 PSFK presentsFUTURE OF RETAILCo n s u lti n gAPP TRAnSFORmS iPhOnE And iPAd InTO cREdIT cARd mAchInEWORLd AS RETAIL Square is a new mobile payment system for the iphone and ipad that enables people to check out from anywhere. a small, plastic card reader fits into the ExPERIEncEheadphone jack, transferring the credit card’s swipe data to the app or details can be entered manually without the need to swipe. after an employee enters the amount to charge, the customer confirms by simply entering their signature with their finger and then the receipt is sent to the customer’s email address.WWW.SquarEuP.COMWWW.PSFK.COM9 PSFK presentsFUTURE OF RETAILCo n s u lti n gSTORE-FREE ShOPPInG VIA TExTSubports is a retail shopping platform through which customers use text WORLd AS RETAIL messages to purchase items. Merchants tag their products and distribute a designated short code, such that users who have their payment information ExPERIEncEtied to a Subports account can text the code in to instantly purchase merchandise. WWW.SuBPOrtS.COMWWW.PSFK.COM10