June 15, 2017
On June 20, William Lewis, Chief Executive Officer, Dow Jones & Publisher of The Wall Street Journal and Marty Garofalo, Chairman and CEO of News America Marketing, will co-host an exclusive thought leadership roundtable that will bring together top industry leaders to discuss the Future of Retail. The attendees will discuss the topic in-depth and explore applications for consumers, brands, and retailers.
Below is a first look at a proprietary shopper study co-created by NAM and the brand energy company Protagonist (led by futurist Dee Dee Gordon) which explores the shopper’s pain points, unmet needs, and rising expectations. At Cannes Lions, the industry leaders will discuss how the industry will respond, and how these shopper trends will shape the Future of Retail. Stay tuned to the next News2Use that will share additional insights and key takeaways from the Cannes Lions' roundtable discussion.
This past April, NAM completed a proprietary shopper study with Protagonist, the goal of which was to determine the future of CPG/Grocery retail. The results concluded that changing consumer needs and rising expectations will drive the future of retail. The five areas below appear to have the greatest impact on what retailers (both online and offline, and, as Walgreens’ Chief Digital Marketing Officer is calling the combined “non-line” world) need to focus on if they are going to meet the needs of consumers successfully, now and in the future.
As shopping becomes increasingly “always on,” shoppers need tools to help them make sense of fragmented information (such as search--see below for the top results of “shopping list” (source: Google Trends). For example, Millennials are especially savvy about researching products, and no purchase is too small for extra help.
Technology that predicts what you’ll want must balance consumer concerns about privacy, data security, and invasiveness. Millennials’ acceptance of predictive systems corresponds with their promotion usage. However, they are also more demanding about relevance: it better be right!
Access to more information than ever before helps the shopper better navigate product choices how they shop (e.g., nutritional info, store layout, price comparison sites). Constant connectivity lets people do all kinds of research as they shop (to the point of obsession). Real-time information gives shoppers the ability to check store inventories and online shipping time to decide where to purchase.
Shopper expectations are growing, and their tolerance for shopping hassles (difficulty parking, increasing traffic, unattractive aesthetics, unhelpful associates, complicated savings rules) gets less and less by the day, driven by online alternatives. However, there is also a lot of potential pleasure to unlock if retailers can better meet the following consumer needs:
- Aesthetics (which matter more than price to many shoppers)
- Noticeably superior product quality as an everyday indulgence (even for people on a tight budget)
- New options that delight (e.g. delivery options, augmented experiences)
- More reasons to shop (me time, break from work, even exercise).
If customers feel good about their actions, they will keep on doing them. Saving money can trigger strong emotional response. Affiliate programs and social incentives are on the rise, and those retailers that can meet these needs will have an advantage.
As the retail landscape continues to evolve, brands have an enormous opportunity to meet the changing needs and rising expectations that consumers have, both online and offline.
How will the retail industry respond to these changing needs? What should they focus on to add value to the Future of Retail? Our next News2Use post will take a look at the five areas that the proprietary NAM/Protagonist study (along with work from Storyful) suggested that retailers focus on if they are to succeed in this ever dynamic and changing landscape.