6 Trends For Retail in 2015

Summary

The video script explores the future of retail in the age of smart home appliances and mobile shopping, where consumption becomes unconscious and shopping transforms into entertainment and self-expression. It discusses the concept of 'experience per square foot' as a new metric for success in retail, beyond traditional sales. The script also touches on the importance of visual strategy in merchandising, the potential of audio in retail experiences, and the balance between high-tech and high-touch in customer service. It emphasizes the need for strategic use of technology to enhance customer experience without overwhelming them.

Takeaways

• 🏠 Smart home appliances are becoming capable of making purchases on our behalf, potentially leading to unconscious consumption.
• 🛍️ The concept of shopping is evolving from a utility to a form of entertainment and self-expression.
• 📈 Rachel Sheepman from 'story' suggests measuring 'experience per square foot' alongside traditional sales metrics.
• 🎨 'story' uses retail as media, reinventing its 2,000 sq ft space in Chelsea every 4 to 8 weeks like a gallery.
• 📱 The visual aspect of shopping is becoming increasingly important, especially with the rise of mobile shopping.
• 🎥 The idea of scoring retail experiences like films is proposed, with mobile apps enhancing the in-store experience.
• 📱 Mobile apps are competing for consumer attention, but there's a risk of overwhelming customers with personalized messaging.
• 📊 Technologies like heat mapping, beacons, and predictive shipping are available, but retailers must choose wisely to maintain a balance between high-tech and high-touch.
• ⚖️ There's a need for equilibrium between high-tech solutions and the human touch in retail experiences.
• 💡 Innovation in retail is not just about technology; it's also about business models, services, and experiences that serve the customer better.

Q & A

What is the concept of 'unconscious consumption' mentioned in the script?

Unconscious consumption refers to a state where people are unaware of the act of shopping itself due to appliances in their homes being connected to the internet and making purchases on their behalf. This shifts the focus from the utility of shopping to considering it as entertainment, activity, and a form of self-expression.

How does Rachel Sheepman measure the success of a retail store?

Rachel Sheepman prefers to measure the success of a retail store not only by traditional sales per square foot but also by 'experience per square foot', emphasizing the importance of customer experience in retail.

What is the concept behind the 'Story' store in Chelsea?

The 'Story' store in Chelsea operates as a concept store that uses retail as media. It reinvents its 2,000 square foot space every 4 to 8 weeks like a gallery, selling items like a store, and leverages the space for community engagement beyond just content creation and sales transactions.

What is the role of visual strategy in retail according to the script?

Visual strategy plays a crucial role in retail, especially with the increase in mobile shopping. The script suggests that brands are focusing on creating compelling visual experiences, as the picture is 'King' in the digital age, and this visual focus is now becoming part of in-store merchandising.

How does the script describe the Kate Spade Saturday store in SoHo?

The Kate Spade Saturday store in SoHo is described as a wonderful retail environment that has embraced visual trends by not only displaying them in the windows but also incorporating them on the walls, creating a visually engaging shopping experience.

What opportunities does audio represent in retail according to the script?

The script suggests that audio represents tremendous opportunities in retail, envisioning a future where the retail experience could be scored like a film, with personalized audio experiences enhancing the shopping journey as customers move through the store.

What is the concern regarding the use of mobile apps and personalized messaging in retail?

The script expresses concern that as retailers, manufacturers, and third parties compete for consumer attention with mobile apps and personalized messaging, there is a risk of impairing the overall shopping experience with incessant and potentially overwhelming messaging.

What does the script suggest about the use of technology in retail?

The script suggests that while there is a wide array of technologies available to retailers today, such as heat mapping, beacons, and predictive shipping, the smartest brands are making strategic decisions by balancing high-tech with high-touch, ensuring that technology serves the customer better without losing the human touch.

What is the significance of the 'rule of high-tech versus high touch' mentioned in the script?

The 'rule of high-tech versus high touch' refers to the need for a balance between technological advancements and personal, human interactions in retail. As technology levels increase, there is a corresponding demand for a counterbalance of personal touch to maintain a connection with the customers' humanity.

How does the script differentiate between technological innovations and other types of innovations in retail?

The script differentiates by stating that the majority of innovations involved are not technological but rather business model, service, and experience innovations. It emphasizes that the focus should be on how to serve the customer better, rather than just adopting the latest technology for its own sake.

Outlines

00:00

🛒 The Future of Shopping: Unconscious Consumption and Retail Innovation

The script discusses the evolution of shopping with the increasing connectivity of household appliances to the internet. It suggests that this could lead to a state of unconscious consumption where shopping becomes an automated activity. The focus shifts from the utility of shopping to viewing it as a form of entertainment and self-expression. The concept of 'experience per square foot' is introduced as a new metric for retail success, alongside traditional sales metrics. The 'Story' store in Chelsea is highlighted as an example of a retail space that reinvents itself like a magazine every 4 to 8 weeks, blending content creation, sales transactions, and community engagement. The script also touches on the importance of visual strategy in retail, especially with the rise of mobile shopping, and the potential for audio to enhance the retail experience, envisioning a future where the shopping experience is scored like a film.

Keywords

💡Unconscious Consumption

Unconscious consumption refers to a state where individuals are unaware of their shopping habits, often due to automated purchases made by smart appliances. In the context of the video, this concept is tied to the idea that as more household items become connected to the internet, they can make purchases on our behalf, leading to a shift in how we perceive shopping. It's presented as a potential future scenario where the act of shopping becomes less deliberate and more ingrained in our daily lives.

💡Utility of Shopping

The utility of shopping traditionally refers to the practical benefits and functions of shopping, such as acquiring necessary goods and services. The video suggests a shift away from this utility-focused approach towards viewing shopping as a form of entertainment and self-expression. This is exemplified by the idea that shopping is evolving from a mere transaction to an experience that can be enjoyed and personalized.

💡Entertainment

In the video, entertainment is mentioned as a new way to consider shopping, moving beyond its traditional utilitarian purpose. This is part of a broader trend where the shopping experience is being reimagined to be more engaging and enjoyable, akin to how one might approach a movie or a game. The script suggests that this could be achieved through innovative retail environments and experiences that provide fun and excitement.

💡Self-Expression

Self-expression through shopping is the idea that individuals use their purchases to communicate aspects of their identity, values, or personality. The video implies that shopping is becoming a medium for personal expression, much like art or fashion. This is linked to the broader theme of shopping as an evolving experience, where the items purchased are not just functional but also reflective of one's individuality.

💡Experience Per Square Foot

Experience per square foot is a concept introduced by Rachel Sheepman, who measures the success of a retail space not only by sales per square foot but also by the quality of the customer experience. This metric emphasizes the importance of creating engaging and memorable retail environments, as illustrated by the 'story' concept store that reinvents itself like a gallery every few weeks.

💡Retail as Media

Retail as media refers to the strategy of using retail spaces to communicate ideas, trends, and narratives, much like a magazine or a gallery. The video discusses the 'story' store in Chelsea, which changes its theme and layout every 4 to 8 weeks, creating a dynamic and engaging retail environment that goes beyond traditional sales transactions.

💡Community

The concept of community in the video is tied to the idea of post offices and other public spaces becoming hubs for local interaction and experience. It suggests a future where these spaces are not just for transactions but also for showcasing new products, hosting events, and fostering a sense of community among consumers.

💡Visual Strategy

A visual strategy in retail involves creating compelling visual displays to attract and engage customers. The video mentions that with the rise of mobile shopping, the importance of strong visual presentation has increased. Brands are focusing on how they can make their products and stores visually appealing to capture the attention of consumers in a competitive retail landscape.

💡Audio Opportunities

Audio opportunities in retail refer to the potential for using sound and music to enhance the shopping experience. The video describes a future where shoppers might have personalized audio experiences as they move through a store, similar to a movie soundtrack, adding another layer of engagement and personalization to the retail environment.

💡High-Tech vs High-Touch

The high-tech versus high-touch dichotomy discussed in the video highlights the need for a balance between advanced technology and human interaction in retail. As technology advances, there is a growing demand for personal, empathetic service that acknowledges the human element in decision-making and customer service.

💡Business Model Innovations

Business model innovations are new approaches to creating value and delivering products or services. The video emphasizes that while technology is important, it is the innovative business models, services, and experiences that often drive success. This is illustrated by the focus on how retailers can better serve customers, rather than simply adopting the latest technology for its own sake.

Highlights

Connected appliances could lead to unconscious consumption, changing our relationship with shopping.

Shopping may evolve into a form of entertainment and self-expression.

Rachel Sheepman discusses measuring 'experience per square foot' in retail spaces.

The concept store 'Story' in Chelsea reinvents its retail space every 4 to 8 weeks like a gallery.

Retail as media is a new approach, leveraging spaces for community engagement beyond sales.

The future envisions community post offices as centers for experiencing new products.

Visuals are crucial in the mobile shopping era, with 'picture' being king.

Brands are focusing on visual strategy, influenced by internet trends.

The Kate Spade Saturday store in SoHo exemplifies innovative retail environments.

Audio offers tremendous opportunities in retail, potentially enhancing the shopping experience.

Retailers, manufacturers, and third parties are competing for consumer attention with mobile apps.

There's a risk of overwhelming consumers with incessant personalized messaging.

Technologies like heat mapping, beacons, and predictive shipping are being strategically chosen by retailers.

The 'high-tech versus high touch' rule is guiding strategic decisions in balancing technology with human touch.

97% of innovations are not technological but focus on business, service, and experience.

The focus should be on serving the customer better rather than just adopting new technologies.

Transcripts

as more appliances in our houses connect

to the internet they'll be able to shop

on our behalf putting us in a state of

unconscious consumption where we una

aware of the act of shopping itself the

result is that we move away from the

utility of shopping and we start to

consider shopping in new ways as

entertainment as activity and almost as

a new form of self-expression let's take

the nasty bits out and focus on the fun

the experience in

shopping in this next evolution of brick

and water what would the metrics of a

success be Rachel Sheepman found of a

really interesting concept store called

story told us about how she prefers to

measure experience per square foot in

addition to the more traditional sales

per square foot the concept of story

very quickly is using retail as media

it's a 2,000t space in Chelsea that has

the point of view of a magazine we

reinvent it entirely every 4 to 8 weeks

like a gallery and we sell things like a

store this idea of using it Beyond

content creation and Beyond sales

transaction and Beyond brand Impressions

and to kind of Leverage it for Community

is something that's amazing we have this

Grand idea that in the future uh

Community post offices should be the

center of communities they should be

places where you can experience a new

coffee products they should be a place

where you could maybe showroom new

furniture humans have always been very

visually oriented and as more and more

consumers are shopping Via Mobile the

picture really is King and actually lots

of brands are thinking very hard about

their visual strategy this is a thing

that started on the internet and is now

becoming part of merchandising because

it's what we're used to seeing so this

is the Kate Spade Saturday store in SoHo

which is a wonderful retail environment

I'm very very tun into these kind of

Trends so they've not only done this in

the window they've done it on the

walls as aias constant toas told us

during the big shopping popup in London

audio represents tremendous

opportunities in retail I'm dreaming

about a world where the kind of retail

experience will be scored almost like a

film what about you have your phone and

you've got your earbud in and as you

move around the store you feel like

you're actually part of your own retail

movie

mobile apps by retailers manufacturers

and third parties like shopkick are

vying for Consumer attention but as this

competition ramps up we're in danger of

impairing the overall experience as

consumers become the potential targets

of incessant messaging I dread the

thought of like competing personalized

messaging deeping me to high heaven you

know when I go through a store I want to

make sure that we don't bring old habits

back in the name of customization

from heat mapping to ey beacons to

predictive shipping choosing from all

the Technologies available today can be

a really overwhelming task for retailers

as Andy Murray mentioned at our

conference the smartest brands are

making strategic Decisions by using the

rule of high-tech versus high touch as

we get to this higher levels of

Technology there's a demand for this

equilibrium counterbalance of of high

touch in our lives we're still human

beings that make decisions uh based on

our Humanity 97% of the Innovations I'm

involved in are not technological they

are business model Innovations their

service Innovations their experience

Innovations and too often the focus is

on hey there's a cool new technology I

Beacon what can we do with that

technology no we have to think about how

can we serve the customer better