TECHNOLOGY-BASED ACTIVITIES FOR TOWN CENTRE PARTNERSHIPS: LESSONS FROM THE NETHERLANDS

Transcription

1 TECHNOLOGY-BASED ACTIVITIES FOR TOWN CENTRE PARTNERSHIPS: LESSONS FROM THE NETHERLANDS Anne Risselada, PhD Senior Researcher Amsterdam University of Applied Sciences 31 march 2016, Nottingham Future Highstreet Summit 1

2 OVERVIEW OF PRESENTATION 1. Background of research project 2. Town Centre Partnerships (TCP) Organisation of TCPs Technology-based activities of TCPs 3. Consumers Use, familiarity and interest in technology-based activities of TCPs 4. Conclusions 2

3 BACKGROUND: A changing retail landscape and the need for collective action 3

4 This is retail at it best 4

5 ..this is reality 5

6 DUTCH TOWN CENTRES: CHALLENGES Growing competition among shopping locations: Growing number of units and floorspace Lower turnovers Turnover per square meter has dropped significantly in last 10 years. Floorspace Turnover Food INFLATION Food, Non-Food, Fashion, DIY, Shoes, Home Electronics Fashion Shoes Non-Food Electronics Home DIY 6 Source: Locatus, Q&A Research

7 DUTCH TOWN CENTRES: CHALLENGES Decreasing sales and profit margins due to online shopping Share of online retail is the Netherlands is now 7.6% (Central Bureau of Statistics, 2016) Still relatively low in comparison to market share in UK of 15.2%! Source: Centre for Retail Research Britain 7

8 DUTCH TOWN CENTRES: CHALLENGES Growing vacancy rates, especially in periphery and in small & medium sized cities % of vacant floorspace 9% % of vacant floorspace 8 Source: Locatus Netherlands

9 VACANCY RATE IN DUTCH TOWN CENTRES, 2016 Assen The Hague Amsterdam Rotterdam Almelo Heerlen 9

10 VACANCY RATE DEVELOPMENT IN DUTCH TOWN CENTRES,

11 CONSUMERS PAY LESS VISITS TO TOWN CENTRES FOR SHOPPING 11 Source: GFK November 19, 2015 GfK Shopping Tomorrow Consumer Research 2015

12 DUTCH TOWN CENTRES: OPPORTUNITIES Growing use of smart phones and mobile Internet among consumers 12 Source: Deloitte Digital, Mobile Infulence 2013 report

13 DUTCH TOWN CENTRES: OPPORTUNITIES New technologies may enhance the in-store and in-town shopping experience (e.g., 3D images, holograms, augmented reality, smart sensors) 13 Source: HvA (2012); Weltevreden and Boels (2012); Weltevreden (2014); Weltevreden et al., 2014)

14 DUTCH TOWN CENTRES: CHALLENGES & OPPORTUNITIES Growing awareness among stakeholders that: Collective action is needed to keep town centres viable, Internet technology can contribute to this! Corporation and collective action among stakeholders often proves difficult 14 Source: HvA (2012); Weltevreden and Boels (2012); Weltevreden (2014); Weltevreden et al., 2014)

15 If the high street was in single ownership, like a department store, it would have a vision, a high level strategy and direction (Portas, 2011, p. 18). 15

16 So if a town centre acts like business: - What does its business model look like? - What are its strengths and weaknesses? 16

17 TWO YEAR RESEARCH PROJECT TOWN CENTRE PARTNERSHIPS ONLINE Research question: How can TCPs strengthen their business models with the use of technology based activities in order to generate greater profits for individual retailers located in the town centre or high street? Four themes: 1. Organisation and activities of TCPs 2. Consumer insights 3. Critical success factors of TCPs 4. Impact of technology based activities on individual retailers 17

18 TOWN CENTRE PARTNERSHIPS: Organisation and technology based activities 18

19 WHAT TYPES OF PARTNERSHIPS? Inventory of active TCPs in 350 largest town centres and high streets throughout the Netherlands Great variation in partnerships: From local shopkeepers associations to city marketing organisations Partnerships between different stakeholders such as shopkeepers, real estate owners, municipal government etc. 19

20 OUR DEFINITION OF A TCP Organisations and initiatives that are operating in a city or town centre or highstreet. Activities involve: Promotion / marketing Organisation / stakeholder management Representing the interest of town centre stakeholders There is a formal or informal partnerships with or between local retailers and businesses Public-private partnership is not key determinant Town centre management (professional/municipal) Formal: Business Investment District (BID) TCPs Collective initiatives (e.g. Shopkeepers associations) Informal City marketing organisation 20

21 WHAT TYPES OF PARTNERSHIPS? 738 TCPs in Dutch largest 350 town centres & high streets Majority of town centres has 1 or 2 active partnerships Number of partnership in 350 town centres and high streets 10 or more partnerships 5 to 10 partnerships 3 or 4 partnerships 2 partnerships 1 partnership 0 partnerships Centre Amsterdam 28 Centre Rotterdam 18 Centre The Hague 15 Centre Haarlem 12 Centre Nijmegen 12 Centre Arnhem 11 Centre Groningen 11 0% 10% 20% 30% 40% 50% 60% 21

22 TYPE AND SCOPE Type of partnership Geographical scope 1% 7% 11% 11% 25% 10% 29% 7% 65% 34% Traders and shopkeepers association Town centre management Citymarketing Management/owner of shopping centre Unknown Municipality Town centre Specific streets or subcentres within town centre Highstreet Other/Unknown 22

23 ONLINE PRESENCE: WEBSITE (N of TCPs =738) N Website 83% 614 Website aimed at consumers 70% 520 Website only for stakeholders 13% 98 Yes 23

24 ONLINE PRESENCE: APP & WEBSHOP (N of TCPs =738) N Smartphone App 6% 47 Webshop 2% 14 24

25 ONLINE PRESENCE: SOCIAL MEDIA Facebook 73% Twitter 50% Google+ 46% Youtube 14% LinkedIn 8% Instagram 7% Pinterest 7% 0% 20% 40% 60% 80% 100% 25

26 ONLINE PRESENCE: TOTAL Categorisation of online presence of partnerships in four clusters: 30% of partnerships has no consumer online presence, 17% have no online presence at all. Majority of partnerships (70%) use online channels to reach consumers, 32% of TCP even has strong consumer oriented online presence No online presence Online Presence TCP (N=738) 97 No consumer online presence (online presence only for stakeholders) 289 Limited consumer online presence (website aimed at consumers, limited social media presence) 228 Strong consumer online presence (website aimed at consumers, strong social media presence) 26

27 WEBSITE INVENTORY In-depth content analysis of 602 websites. Websites were coded on various themes such as: Offering of retail and leisure in town centre Accessibility of town centre Latest content (news feed) on website Offered services and facilities in town centres for example: free Wifi, central pick-up point Customer loyalty programs for example: gift certificates, savings card 27

28 POPULAR CONTENT ON WEBSITES OF TCPs % of websites with content on various themes (N=602) Offering of retail and leisure in town centre 93% Latest content (news feed) Individual retailers Customer relation (newsletter, social media contact button) Accessibility 78% 78% 76% 73% Registration and advertising opportunities via partnership 32% Login options 24% Services and facilities Customer loyalty (e.g. gift certificates, savingscard) 17% 17% Opinion of visitors website (for example via Poll) 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 28

29 29

30 WHICH ACTIVITIES SERVICES ARE OFFERED IN TOWN CENTRES? % of town centres that offer activities and services (N=350) (based on website inventory) Events such as (christmas) market, fare or music festival 68% newsletter 42% Free WI-FI 12% Collective savings program (e.g. loyalty shopping card) 10% Town centre gift certificate 10% Central pick-up point 2% 0% 20% 40% 60% 80% 30

31 CONSUMERS: Use, familiarity and interest in technology-based activities of TCPs 31

32 CONSUMER SURVEY respondents to online questionnaire Questions regarding interest, use and familiarity of online channels and (technology-based) activities for two shopping locations: 1. Where they most often purchase shopping goods (clothes, shoes, DVDs, sporting goods, toys, gift items, etc.) 2. Where they go for a day of fun shopping (experience, fun and discovering new things). 32

33 INTEREST IN ONLINE CHANNELS Interest in online channels of town centre for purchasing shopping goods (N=2215) Interest in online channels of town centre for Funshopping (N=1234) Website 29% 34% 37% Website 30% 31% 38% Webshop 23% 31% 47% Webshop 22% 29% 49% newsletter 23% 30% 47% newsletter 20% 28% 52% Smartphone app 18% 27% 55% Smartphone app 20% 26% 54% Social media sites 18% 26% 56% Social media sites 16% 28% 56% 0% 20% 40% 60% 80% 100% (Very) Interesting Neutral (Very) Unintersting 0% 20% 40% 60% 80% 100% (Very) Interesting Neutral (Very) Unintersting 33

34 INTEREST IN (TECHNOLOGY-BASED) ACTIVITIES Interest in activities and services of town centre for purchasing shopping goods (N=2215) Interest in activities and services of town centre for Funshopping (N=1234) Free WI-FI 55% Free WI-FI 54% Events such as (christmas) market of fare 50% Digital coupons / vouchers 46% Town centre gift certificate 49% Town centre gift certificate 44% Digital coupons / vouchers 48% Events such as (christmas) market 40% Collective savings program 39% Collective savings program 35% Central pick-up point 27% Central pick-up point 29% Central pick-up point for internet purchases 25% App on locally available products and 24% App on locally available products and brands 23% Reserving parking space online 21% Real-time online info on parking availability 19% Real-time online info on parking 22% Offers on smartphone while visiting town 19% Offers on smartphone while visiting 21% Reserving parking space online 16% Central pick-up point for internet 18% 0% 50% 100% 0% 50% 100% (Very) Interesting Neutral (Very) Unintersting (Very) Interesting Neutral (Very) Unintersting 34

35 USE & FAMILIARITY WEBSITES OF TCPS Differentiated by type of shopping location Differentiated by age group % 21% 55% Town centre for Funshopping (N=1215) 22% 19% 59% years 28% 20% 53% years 29% 20% 51% Town centre for purchasing shopping goods (N=2161) 32% 25% 43% years 28% 28% 43% 0% 50% 100% Visited one or more websites Familiar with one or more website(s), but not visited any website Not familiar or visited any website Visited one or more websites Familiar with one or more website(s), but not visited any website Not familiar or visited any website 35

36 USE AND FAMILIARITY WEBSHOPS AND APPS OF TCP Use and familiarity WEBSHOPS (available in 14 town centres) Use and familiarity SMARTPHONE APP (available in 47 town centres) Town centre for Funshopping (N=192) 6% 23% 70% Town centre for Funshopping (N=309) 3% 19% 79% Town centre for purchasing shopping goods (N=71) 4% 32% 63% Town centre for purchasing shopping goods (N=624) 6% 23% 71% 0% 20% 40% 60% 80% 100% Visited one or more webshops Familiar with one or more webshop(s), but not visited any webshop Not familiar or visited any webshop 0% 20% 40% 60% 80% 100% Visited one or more Apps Familiar with one or more App(s), but not visited any App Not familiar or visited any App 36

37 USE AND FAMILIARITY (TECHNOLOGY- BASED) ACTIVITIES OF TCP Events such as (christmas) market, fare or music festival 42% 34% 23% Free WI-FI in town centre 30% 32% 38% Shared savings, such as a loyalty shopping card 20% 29% 50% Town centre gift certificate 18% 25% 57% Central pick-up point in town centre 14% 31% 55% Social media sites of town centre 13% 27% 60% newsletter of town centre 8% 20% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Have used Familiar with but not used Not familiar with 37

38 EFFECTS OF CHANGES TO THE TOWN CENTRE ON PATRONAGE INTENTION AND RETENTION PRONENESS Impact of changes to the town centre on patronage intention (N = 2500) Impact of changes to the town centre on retention proneness (N=2500) Improved retail offer 49% 50% 1% Improved retail offer 51% 48% 1% Reduced parking rates 41% 57% 2% Improved ambiance 42% 57% 1% Reduced vacancy rates 39% 52% 10% Reduced vacancy rates 41% 53% 6% Improved ambiance 37% 62% 1% Reduced parking rates 41% 58% 1% Improved parking options 27% 71% 2% improved food services offer 25% 74% 1% Improved reachability 19% 80% 1% Improved parking options 24% 75% 1% Improved leisure and culture offer 19% 79% 2% Improved leisure and culture offer 23% 76% 2% improved food services offer 15% 84% 1% Improved reachability 16% 83% 1% make me visit more often have no impact make me visit less often make my visit longer have no impact make my visit shorter 38

39 EFFECTS ONLINE CHANNELS OF TOWN CENTRES ON PATRONAGE INTENTION AND RETENTION PRONENESS Impact of online channels used by town centres on patronage intention (N=2500) Impact of online channels used by town centres on retention proneness (N=2500) newsletter 12% 84% 4% newsletter 7% 89% 4% Website 10% 87% 4% Website 7% 90% 4% Smartphone app 7% 88% 5% Smartphone app 6% 90% 4% Webshop 7% 87% 6% Webshop 5% 89% 7% Social media sites 6% 90% 4% Social media sites 4% 92% 4% make me visit more often have no impact make me visit less often make my visit longer has no impact makes my visit shorter 39

40 EFFECTS OF ACTIVITIES AND SERVICES ON PATRONAGE INTENTION AND RETENTION PRONENESS Impact of activities and services of town centre on patronage intention(n=2500) Impact of activities and services of town centre on retention proneness (N=2500) Events such as (christmas) market, fare or music festival 32% 64% 4% Events such as (christmas) market, fare or music festival 32% 65% 4% Digital coupons / vouchers 32% 66% 3% Digital coupons / vouchers 22% 76% 2% Collective savings program 24% 72% 4% Collective savings program 18% 79% 3% Free Wi-Fi 16% 82% 2% Free Wi-Fi 17% 81% 2% Offers on smartphone while visiting town centre Central pick-up point for town centre purchases App on locally available products and brands Real-time online info on parking availability 12% 12% 11% 11% 82% 85% 85% 87% 6% 4% 4% 2% Offers on smartphone while visiting town centre Central pick-up point for town centre purchases App on locally available products and brands Real-time online info on parking availability 11% 9% 9% 8% 83% 87% 87% 90% 6% 4% 5% 2% Reserving parking space online 9% 87% 4% Reserving parking space online 7% 90% 3% make me visit more often have no impact make me visit less often make my visit longer have no impact make my visit shorter 40

41 CONCLUSION 41

42 TOWN CENTRE PARTNERSHIPS SHOULD: Get the basics right Focus on the power of partnerships: build strong coalitions Not expect technology based activities to solve all challenges Use online channels as a means to communicate real life activities and events Be aware of target audience and their interest and use of technology based activities Find ways to make consumers more familiar with newsletters Look into the possibilities of shared loyalty programs and digital coupons / vouchers 42

43 MORE INFORMATION Dr. Anne Risselada Researcher Amsterdam University of Applied Sciences Phone: +31 (0) Dr. Jesse Weltevreden Professor of E-business Amsterdam University of Applied Sciences j.w.j.weltevreden@hva.nl Phone: +31 (0) Daphne Hagen MM Researcher/Lecturer Amsterdam University of Applied Sciences d.hagen@hva.nl Phone: +31 (0)