The Continuing e-revolution : What mix fits the future?

Transcription

1 The Continuing e-revolution : What mix fits the future? Robin Bevan, Director, Javelin Group BCSC Conference, June 12th 2014

2 Strategic retail transformation 200 omni-channel retail specialists Based in London, Paris and Sofia Working with leading retailers, brands, shopping centres and private equity investors across Europe Example clients: > M&S, Debenhams, Primark, Printemps, Abercrombie & Fitch, Sony, Nike, Sainsbury s, New Look, Heathrow, Hammerson, Westfield and British Land

3 Heightened competition: raising the bar From competing with To competing with The stores within each retail venue All national chains Foreign chains Brand owners Dotcoms (e.g. Amazon) Huge increase in competition

4 But drivers of e-commerce penetration favour UK shifting fastest Many rich people online Strong legacy of home delivery FR DE NL USA UK SE Centralised retail Large, concentrated population ES, IT, GR

5 The big channel shift in electricals has already happened UK consumer electricals market, by customer journey (constant 2010 bn) Direct only Order in-store % Click & collect Research online, buy in-store 15 5 bn % % Store Direct only only Order in-store Click & collect Research online, buy in-store Store only Source: Javelin Group analysis

6 Huge impact on the landscape of speciality retail

7 The big channel shift in clothing & footwear is happening now UK clothing & footwear market, by customer journey (constant 2010 bn) bn % 16% 36% 33% Direct only Order in-store Click & collect Research online, buy in-store Store only Source: Javelin Group analysis

8 For stores in the UK, today s picture doesn t look good... Vacancy Rate (%) UK store vacancies (% of retail units) 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Store vacancy has quadrupled since end in 7 UK stores now stand empty Many of these vacant shops will never re-open Source: Local Data Company

9 Total non-food sales are static.store sales are declining % Change in non-food retail sales, constant terms (2009 = 100) 10.00% 8.00% 6.00% 4.00% Store sales only -30% by % 0.00% -2.00% 2013 f % Source: ONS Retail Statistics, Javelin Group analysis 2013 forecast &quote from Centre for Retail Studies

10 Polarisation in performance of shopping venues

11 Polarisation in performance of shopping venues

12 Smaller or larger stores?...or both? Larger Smaller Collection/return point After-sales service Ordering & returns Full showroom Consultancy Theatre & experience Hub-and-spoke estate strategies? How many of each? where? what terms?

13 The re-shaped estate: stores certainly still matter, but. Stores getting larger and smaller! Retailers planning greater format diversification Customer service and MC marketing central The role of the mobile is critical

14 Mobile: driving the next phase of the consumer revolution The glue bringing all channels together Already, 1 in 5 UK online retail sales were through the mobile in Q (Source: IMRG) 84% of smartphone shoppers now use their phones when in-store to help their shopping (Source: Google research)

15 Context-aware customer engagement Intelligent, real-time use of customer data Very precise geo-location Redemption feedback loop

16 Precise, real-time geolocation Little battery drain Runs in background Real-time Flexible Complicity vital

17 Beacons vs. wifi? The most advanced lowenergy Bluetooth beacon technologies: > Very small > Extended range (~100m) > Individually branded > Waterproof for outdoors > Easy to maintain/monitor > Very inexpensive >..not all ibeacons!!

18 Optimised customer targeting Integrates with existing customer data Integrates with existing promo campaigns Customised in system targeting CONTEXTUAL MARKETING DELIVERS VAST INCREASE IN CONVERSION RATES FROM PROMOTIONS

19 Optimised customer engagement The right message to the right customer, in the right place, at the right time

20 Optimised customer engagement The right message to the right customer, in the right place, at the right time

21 Optimised customer engagement The right message to the right customer, in the right place, at the right time

22 Optimised customer engagement The right message to the right customer, in the right place, at the right time

23 Flexible m-payment &/or Redemption Proliferation of m-payment solutions: highly fragmented landscape Broadly split into branded vs. unbranded (white label) White label likely to win in the long-term

24 Flexible m-payment &/or Redemption Don t ask/expect customers to change the way they do things!: > Credit cards, debit cards, cash, vouchers bankers drafts! Linking payments to contextual marketing is the holy grail: > Revenue streams (e.g. clickthrough) > Scanning & self-checkout > Click & collect > In-store purchase for home delivery

25 Integrated mobile customer engagement platforms Front-end: > White label > Integrate with existing tech Back-end: > Manage participants > Place (and monitor) promotions > Analytics > Audit trail > Finances

26 What s the opportunity for landlords? Opportunity for landlords (and/or town centres and/or travel hubs) to own the space: > Host contextual, place-based promotional platform for tenants (both multiple and independent) to drive footfall, loyalty & spend

27 What s the opportunity for landlords? Several benefits from integrated digital: Drive increased footfall: Events, promotions, marketing etc. Significant untapped revenue stream Exploit Virtual tenants Customer insight Brand enhancing Powerful promotional tool to all your tenants (delivering very high conversions) Compelling multi-channel proposition to your shoppers

28 Mobile enables a range of customer journeys Context-aware marketing & promotions Mobile loyalty & reward schemes Mobile payment in-store or on-the-move Enhanced click & collect Clientelling Personal shopping Digital wayfinding Gamification

29 Case Study: Shopping centre developer Deployment across 20 major European shopping malls Largest deployment of beacon technology ever in Europe (using Bluloc) Integrates across all digital channels (mobile, website, kiosks) using Hippo Deployment (managed as service to tenants through service charge) includes: Promotions, events (inc. RSVP), digital wayfinding, loyalty, social media, gamification

30 Case Study: Leading Travel Hub Deployment in one of Europe s leading international rail interchanges (launches June 2014) To enable promotions, events, shoutouts, digital wayfinding, travel information & heritage: Passengers targeted in real-time as they approach or enter the hub, and as they approach or enter stores Generates incremental revenue stream for host from tenants, local businesses and virtual tenants

31 Case Study: Elbe Park, Dresden 40,000m 2 scheme with 180 stores in Dresden App (branded Sparalarm ) launched October 2013: ~120 tenants already participating ~ 30,000 shoppers already using the app ~ 500k push notifications per month (i.e. ~6m p.a.) App includes digital map and contextual marketing Commercial model drives new customers to tenants through targeted promotions and incremental revenue to the landlord End-to-end click to redemption of 9.7%: i.e. ~580k redeemed promotions anticipated in Y1 Best promotion achieved 70%+ end-to-end conversion Shoppers targeted in scheme, in city centre, near competitors

32 Case Study: VRM VRM is a regional newspaper publisher in Germany Deal Devil app launched in Mainz & Wiesbaden in December k users to-date (i.e. 5% of population) & 150 retailers Very high levels of engagement: 3.75m push notifications in Y1 ~28% click-through rate (1.05m) ~29% of click-throughs are redeemed (305k) Overall conversion ratio of 8.1% Generated 3m revenues in Y1

33 Thank you +44 (0)