3. The Tomorrow Store : The Dawn of the Mega-systems
‘Technology and platform shifts mean we will
transform how we sell, market and innovate
in the next five years. There will be lots of room
for everyone’
Daniel Burrus, futurist
Friday, June 7, 2013
4. The Tomorrow Store : The Dawn of the Mega-systems
The Dawn of the
Mega-systems
Apple, Amazon, Alibaba,
Weibo, Google and Facebook
are no longer simply trading
platforms. They are the megasystems or mega-malls
of tomorrow.
As life becomes more digital,
we are fuelling the rise of these
all-encompassing companies
– and heralding the dawn of
a new era
Data.anatomy by Ryoji Ikeda for Honda Civic,
Kraftwerk, Berlin
Friday, June 7, 2013
5. The Tomorrow Store : The Dawn of the Mega-systems
Amazon’s 2012 revenue
was $61bn (€46.2bn,
£40bn) thanks to sales
across 40 product
categories including media,
technology, wine, cars,
fashion, beauty and luxury
Google’s 2012 revenue
exceeded $50bn (€37.9bn,
£32.8bn) across its search,
advertising, YouTube,
Blogger, Android and
email platforms
Google data centre interior, US
Friday, June 7, 2013
6. The Tomorrow Store : The Dawn of the Mega-systems
Apple is now the most
valuable company in history
thanks to its synched-up
hardware and software
Facebook ranked as the top
web destination in the US
in December 2012. The
network made $4.3bn
(€3.3bn, £2.8bn) from
advertising in 2012 across
fashion, luxury, technology,
travel, food and film
Big data tunnel art from Big Data conference, UK
Friday, June 7, 2013
7. The Tomorrow Store : The Dawn of the Mega-systems
Strange days indeed, when
companies selling weightless
products alongside solid ones
now dominate retail as brands
such as HMV, Comet, Borders,
Jessops and Billabong have
learned to their cost.
‘When the mega-systems shift
strategy, it can really affect any
company that relies on them’
Greg Sterling, Sterling
Marketing Intelligence
Data.scan [No 1–9] by Ryoji Ikeda for MU,
the Netherlands
Friday, June 7, 2013
8. The Tomorrow Store : The Dawn of the Mega-systems
Strange days indeed, when
companies selling weightless
products alongside solid ones
now dominate retail as brands
such as HMV, Comet, Borders,
Jessops and Billabong have
learned to their cost.
‘When the mega-systems shift
strategy, it can really affect any
company that relies on them’
Greg Sterling, Sterling
Marketing Intelligence
Data.scan [No 1–9] by Ryoji Ikeda for MU,
the Netherlands
Friday, June 7, 2013
9. The Tomorrow Store : The Dawn of the Mega-systems
Convenience culture
Computing speeds are up
200,000-fold since 1980.
We now buy media in
seconds. Amazon and eBay
offer same-day delivery
Google Now lets shoppers
check local store inventories
in real time
eBay mobile uses software
that enables users to close
a sale within two minutes
Twheel by Fluid Interaction, Finland
Friday, June 7, 2013
10. The Tomorrow Store : The Dawn of the Mega-systems
The gilded cage?
‘Google and Apple did not
focus on the technology but
on the business model.’
Dr David Cleevely, founding director,
the Centre for Science and Policy at
Cambridge University
Their business model takes
the form of ‘gilded cages’
that lock users in by limiting
the transferability of products,
while wrapping them in a social
web that eases their access to
friends, families and statusdriven fanbases
AKT Motorcycle Facebook House ad by Rep/Grey
Friday, June 7, 2013
11. The Tomorrow Store : The Dawn of the Mega-systems
The new Netorati
Mega-systems also benefit
from the network effect.
This is why Twitter can build
500m monthly users and
generate revenues of $350m
(€267.8m, £234.1m) in 2012
in only six years.
Arcadia credits much of its
£33.8m ($51.5m, €39.1m)
profit rise in 2012 to
Topshop’s social media
presence, specifically its
750,000 Facebook fans
A Million Times by Humans Since 1982
Friday, June 7, 2013
12. The Tomorrow Store : The Dawn of the Mega-systems
The Age of Everyware
Connected devices are
gathering and transmitting
data all the time.
By 2020 there will be 50bn
connected devices
Source: Cisco
As information on consumer
behaviour streams in from
connected devices the megasystems – and the brands they
collaborate with – are doing all
they can to mine it
The Lifelogging clip-on camera by Memento takes
two photos per minute, recording the wearer’s life
Friday, June 7, 2013
13. The Tomorrow Store : The Dawn of the Mega-systems
The Age of Everyware
Connected devices are
gathering and transmitting
data all the time.
By 2020 there will be 50bn
connected devices
Source: Cisco
As information on consumer
behaviour streams in from
connected devices the megasystems – and the brands they
collaborate with – are doing all
they can to mine it
The Lifelogging clip-on camera by Memento takes
two photos per minute, recording the wearer’s life
Friday, June 7, 2013
14. The Tomorrow Store : The Dawn of the Mega-systems
The dawn of big data
Mega-systems are best at
making sense of big data.
Once organised, data sets
represent consumer profiles.
Companies use these to
connect with consumers in
a more rounded way and to
resonate with people’s lives.
Facebook Graph Search and
Google Local combine social
networking with search
Small Arms and Ammunition – Imports & Exports
data visualisation by Google Chrome Experiments
Friday, June 7, 2013
15. The Tomorrow Store : The Dawn of the Mega-systems
The dawn of big data
Mega-systems are best at
making sense of big data.
Once organised, data sets
represent consumer profiles.
Companies use these to
connect with consumers in
a more rounded way and to
resonate with people’s lives.
Facebook Graph Search and
Google Local combine social
networking with search
Small Arms and Ammunition – Imports & Exports
data visualisation by Google Chrome Experiments
Friday, June 7, 2013
16. The Tomorrow Store : The Dawn of the Mega-systems
The dawn of big data
Mega-systems are best at
making sense of big data.
Once organised, data sets
represent consumer profiles.
Companies use these to
connect with consumers in
a more rounded way and to
resonate with people’s lives.
Facebook Graph Search and
Google Local combine social
networking with search
Small Arms and Ammunition – Imports & Exports
data visualisation by Google Chrome Experiments
Friday, June 7, 2013
17. The Tomorrow Store : The Dawn of the Mega-systems
The dawn of big data
Mega-systems are best at
making sense of big data.
Once organised, data sets
represent consumer profiles.
Companies use these to
connect with consumers in
a more rounded way and to
resonate with people’s lives.
Facebook Graph Search and
Google Local combine social
networking with search
Small Arms and Ammunition – Imports & Exports
data visualisation by Google Chrome Experiments
Friday, June 7, 2013
18. The Tomorrow Store : The Dawn of the Mega-systems
The dawn of big data
Mega-systems are best at
making sense of big data.
Once organised, data sets
represent consumer profiles.
Companies use these to
connect with consumers in
a more rounded way and to
resonate with people’s lives.
Facebook Graph Search and
Google Local combine social
networking with search
Small Arms and Ammunition – Imports & Exports
data visualisation by Google Chrome Experiments
Friday, June 7, 2013
19. The Tomorrow Store : The Dawn of the Mega-systems
Mega-mall tactics
Against these drivers, and the
push of the mega-systems into
our daily lives, we are noting a
new paradigm in retail, social
commerce and ‘blurredsector’ selling:
Showrooming
Gated retail
Walled rewards
In system-privileges
All are reactions to, or protests
against, the ubiquity of the
mega-systems
Equinix SY3 data centre, Sydney
Friday, June 7, 2013
20. The Tomorrow Store : The Dawn of the Mega-systems
Mega-mall tactics
Against these drivers, and the
push of the mega-systems into
our daily lives, we are noting a
new paradigm in retail, social
commerce and ‘blurredsector’ selling:
Showrooming
Gated retail
Walled rewards
In system-privileges
All are reactions to, or protests
against, the ubiquity of the
mega-systems
Equinix SY3 data centre, Sydney
Friday, June 7, 2013
21. The Tomorrow Store : The Dawn of the Mega-systems
Showrooming
People still like to visit bricksand-mortar (BAM) stores but
now want to search online for
the best deal first. This has led
to the rise of showrooming.
‘People now carry a global
showroom in their pocket.’
Carrie Bienkowski, head of buyer
experience, eBay
The Amazon app lets
consumers compare prices
online while in-store
Homes Up is a Chinese store solely for showrooming
Friday, June 7, 2013
22. The Tomorrow Store : The Dawn of the Mega-systems
Showrooming
People still like to visit bricksand-mortar (BAM) stores but
now want to search online for
the best deal first. This has led
to the rise of showrooming.
‘People now carry a global
showroom in their pocket.’
Carrie Bienkowski, head of buyer
experience, eBay
The Amazon app lets
consumers compare prices
online while in-store
Homes Up is a Chinese store solely for showrooming
Friday, June 7, 2013
23. The Tomorrow Store : The Dawn of the Mega-systems
Showrooming
People still like to visit bricksand-mortar (BAM) stores but
now want to search online for
the best deal first. This has led
to the rise of showrooming.
‘People now carry a global
showroom in their pocket.’
Carrie Bienkowski, head of buyer
experience, eBay
The Amazon app lets
consumers compare prices
online while in-store
Homes Up is a Chinese store solely for showrooming
Friday, June 7, 2013
24. The Tomorrow Store : The Dawn of the Mega-systems
Anti-Amazonians
In protest against Amazon’s
app, BAM stores are fighting
back with targeted antiAmazon tactics.
Best Buy has developed bar
codes that are incompatible
with Amazon’s app
Target and Walmart have
banned sales of Amazon’s
Kindle in their stores
56 Broken Kindle Screens by Sebastian Schmieg
and Silvio Lorusso
Friday, June 7, 2013
25. The Tomorrow Store : The Dawn of the Mega-systems
Gated retail
But not all retailers are against
mega-systems. Some are
using the walled-garden
model to offer membersonly style benefits.
Soldsie enables Facebook
sales using its Comment tool
YSL Beauty and Lacoste
released Facebook-only
limited editions
Mercedes-Benz sold a
limited-edition model of the
Smart car via Sina Weibo
YSL Devoted to Fans #1 cosmetics
Friday, June 7, 2013
26. The Tomorrow Store : The Dawn of the Mega-systems
Walled rewards
The new targeting means
consumers can be given
tailored rewards.
ASOS offered Facebook fans
an exclusive sale that resulted
in a 67% spend increase
Sports network AEG’s AXS
Invite service lets ticket
buyers save seats for friends
Malaysia Airlines’ MHbuddy
app enables passengers to
share itineraries with friends
ASOS Facebook Summer Sale 2012
Friday, June 7, 2013
27. The Tomorrow Store : The Dawn of the Mega-systems
In-system privileges
American Express’s pay-bytweet enables customers to
pay for goods within Twitter
Google Local runs events
that bring social networking
into the real world for Google
Plus members and Google
Hangout offers access to
exclusive events
Google Hangout Live at Topshop Unique
autumn/winter 2013
Friday, June 7, 2013
28. The Tomorrow Store : The Dawn of the Mega-systems
Return of the retailers
Stores are fighting back
against online mega-malls with
free returns, payment booths,
drive-through customer service
centres and local pick-up sites.
Shoprunner works with
retailers to offer price-match,
free shipping and free returns
Analogue brands such as
Polaroid are bringing new
media in-store to extend
their lifespan
The Polaroid Fotobar at CES 2013 lets people
convert digital photos into high-quality prints in-store
Friday, June 7, 2013
29. The Tomorrow Store : The Dawn of the Mega-systems
Return of the retailers
Stores are fighting back
against online mega-malls with
free returns, payment booths,
drive-through customer service
centres and local pick-up sites.
Shoprunner works with
retailers to offer price-match,
free shipping and free returns
Analogue brands such as
Polaroid are bringing new
media in-store to extend
their lifespan
The Polaroid Fotobar at CES 2013 lets people
convert digital photos into high-quality prints in-store
Friday, June 7, 2013
30. The Tomorrow Store : The Dawn of the Mega-systems
Clicks and mortar
Online retailers, including
mega-systems, are realising
how important offline retail is
to the consumer experience.
Net-A-Porter created a popup Lagerfeld boutique and
is launching a print magazine
eBay has started hosting
physical pop-up shops
Google, despite denials, is
planning stand-alone stores
Net-A-Porter pop-up to launch Karl Lagerfeld
collection, New York
Friday, June 7, 2013
31. The Tomorrow Store : The Dawn of the Mega-systems
Clicks and mortar
Online retailers, including
mega-systems, are realising
how important offline retail is
to the consumer experience.
Net-A-Porter created a popup Lagerfeld boutique and
is launching a print magazine
eBay has started hosting
physical pop-up shops
Google, despite denials, is
planning stand-alone stores
Net-A-Porter pop-up to launch Karl Lagerfeld
collection, New York
Friday, June 7, 2013
32. The Tomorrow Store : The Dawn of the Mega-systems
‘Pure play online retailers need
to be flexible and think about
opening physical stores.’
Robert Gregory, global research
director, Planet Retail
Etsy’s first retail space
combined shopping with
convivial experiences
The Etsy retail space in Brooklyn, New York
Friday, June 7, 2013
33. The Tomorrow Store : The Dawn of the Mega-systems
‘Pure play online retailers need
to be flexible and think about
opening physical stores.’
Robert Gregory, global research
director, Planet Retail
Etsy’s first retail space
combined shopping with
convivial experiences
The Etsy retail space in Brooklyn, New York
Friday, June 7, 2013
34. The Tomorrow Store : The Dawn of the Mega-systems
Total retail
Established brands are also
piggy-backing on the megasystems’ multi-channel reach.
Topshop live-streamed its
catwalk show on Google and
leveraged social buzz through
its Be The Buyer app
Topshop’s multi-platform catwalk show with Google
Friday, June 7, 2013
35. These changes have likewise ushered in new behaviours
and payment methods among brands, businesses and
consumers
Google Wallet payment app
Friday, June 7, 2013
36. VR/QR culture
What happens online is changing
the way we shop for things in-store.
Retailer C&A Brazil created a link
between the digital and physical worlds with Facebookconnected coat hangers.
The hangers show how many likes
a garment has had and people in-store
can see how popular items are before
they buy them
C&A Fashion Likes, Brazil
Friday, June 7, 2013
37. Social selling
A microeconomy is springing from
new social platforms.
‘As social media becomes the biggest area
of online footfall it makes sense to fish where the fish are’
Paul Smith, managing director of Techlightenment
Fantasyshopper.com
Friday, June 7, 2013
41. M-banking
The ability to make instant payments
and changes to accounts on smartphones are changing
how we bank.
:
M-banking will attract 115m users in Europe and 86m
users in North America by 2015
Source: Berg Insight
Barclays’ Pingit app enables people to send money using
their mobiles. It has now been extended to the African
market
Pingit app by Barclays
Friday, June 7, 2013
42. M-commerce
The ability to make purchases through mobile phones is
putting the store into
the customer’s pocket.
:
Mobile payment transactions will increase to $600bn
worldwide by 2016,
up from $172bn this year
Source: Gartner
Nearly 300m smartphones, or one in five globally, will be
NFC-enabled by 2014
Source: Juniper Research
Card Case app by Square
Friday, June 7, 2013
43. The world of buying and selling will change dramatically
as a result of these impacts
Glamour Apothecary Wall, New York
Friday, June 7, 2013
45. New retail formats
Cashless payments will become the lynchpin of the
components that make up the stores of tomorrow.
‘We can use digital technology in many ways to enhance
retail. It’s a great opportunity, not a threat’
David Judge, co-founder, creative agency StartJudgeGill
PayTouch System by PayTouch
Friday, June 7, 2013
46. New retail formats
Cashless payments will become the lynchpin of the
components that make up the stores of tomorrow.
‘We can use digital technology in many ways to enhance
retail. It’s a great opportunity, not a threat’
David Judge, co-founder, creative agency StartJudgeGill
PayTouch System by PayTouch
Friday, June 7, 2013
47. Online fashion retailer Net-A-Porter used an augmented
shopping window to merge online and offline.
Visitors to Vogue Fashion’s Night Out in 2011 could use
smartphones and iPads to view information on items in
the window and buy them
Net-A-Porter wall, London
Friday, June 7, 2013
48. Trader nation
Distinctions between retail and
wholesale vendors and buyers will merge,
as smartphones enable people to buy
and sell anywhere.
Design agency Fuseproject has created PayPal Here, a
system for electronic payments company PayPal that lets
small businesses accept real-world card payments
PayPal Here by Fuseproject
Friday, June 7, 2013
53. Generation M
A generation of people will emerge
who have never had, and will never have, access to a
landline phone or fixed-place computer. Their expectations
and attitudes will shape the market in the next 10 years.
‘Apps, payment systems and all content
will be developed foremost for mobile devices that we hold
in our hands’
Amber Case, cyborg anthropologist
Tesco Homeplus, South Korea
Friday, June 7, 2013
54. Co-commerce
Open sourcing means that customers
are the new R&D team. Social media
has turned customers into the new marketers. And now
with Co-commerce customers can be the new retailers.
Nuji is a social shopping network that
lets people curate their own shops online. Users earn
discounts from retail partners when they sell items
Nuji.com
Friday, June 7, 2013
55. Co-commerce
Open sourcing means that customers
are the new R&D team. Social media
has turned customers into the new marketers. And now
with Co-commerce customers can be the new retailers.
Nuji is a social shopping network that
lets people curate their own shops online. Users earn
discounts from retail partners when they sell items
Nuji.com
Friday, June 7, 2013
56. Co-commerce
Open sourcing means that customers
are the new R&D team. Social media
has turned customers into the new marketers. And now
with Co-commerce customers can be the new retailers.
Nuji is a social shopping network that
lets people curate their own shops online. Users earn
discounts from retail partners when they sell items
Nuji.com
Friday, June 7, 2013
57. These practices will usher in a new ecosystem of buying
and selling
Creative Factory customisation platform by Spies & Assassins for Puma
Friday, June 7, 2013
61. Face to place
Frictionless payments will evolve from mobile wallets to
technologies that recognise you as you walk into a store.
The Facedeals system recognises people
as they enter a store. It then offers them deals specific to
them
Facedeals facial recognition system by RedPepper, US
Friday, June 7, 2013
62. The Tomorrow Store : The Dawn of the Mega-systems
Phy-gital mega-systems
Despite retailers’ current
backlash against the megasystems, the latter will own
much of the infrastructure
of connected commerce as
it develops.
Total retail, as we call this, will
be synaesthetic and immersive,
and phy-gital shopping will
become seamless under
the mega-systems
Google office interiors, Moscow and Tel Aviv
Friday, June 7, 2013
63. The Tomorrow Store : The Dawn of the Mega-systems
Phy-gital mega-systems
Despite retailers’ current
backlash against the megasystems, the latter will own
much of the infrastructure
of connected commerce as
it develops.
Total retail, as we call this, will
be synaesthetic and immersive,
and phy-gital shopping will
become seamless under
the mega-systems
Google office interiors, Moscow and Tel Aviv
Friday, June 7, 2013
64. The Tomorrow Store : The Dawn of the Mega-systems
Branded lives
Through the Internet of Things,
mega-systems will further
penetrate our lives.
As home appliances, cars and
clothes become connected,
our surroundings will belong to
one or another walled garden.
We will live entirely through
tools synchronised with our
chosen eco-system enabling
us – and the mega-systems
that touch us – to understand
and exploit all deep data
Google and BERG’s connected products are the
forerunners to the Internet of Things
Friday, June 7, 2013
65. The Tomorrow Store : The Dawn of the Mega-systems
Branded lives
Through the Internet of Things,
mega-systems will further
penetrate our lives.
As home appliances, cars and
clothes become connected,
our surroundings will belong to
one or another walled garden.
We will live entirely through
tools synchronised with our
chosen eco-system enabling
us – and the mega-systems
that touch us – to understand
and exploit all deep data
Google and BERG’s connected products are the
forerunners to the Internet of Things
Friday, June 7, 2013
66. The Tomorrow Store : The Dawn of the Mega-systems
Predictive retail
Retailers will use data profiles
to know customers’ tastes
so closely that they will send
them products directly.
Payment will be taken
automatically via presynchronised accounts.
Deliveries will be timed to
fit each customer’s calendar,
accessible online via the omnisynchronised mega-systems
Smithfield Case uses individual preferences to
compile personalised fashion packages for men
in their 30s and 40s according to their lifestyle
Friday, June 7, 2013
67. The Tomorrow Store : The Dawn of the Mega-systems
Align your brand with the values and style of the mega-systems
Introduce limited editions that take advantage of walled gardens
Piggy-back onto the mega-systems to offer tailored rewards
Use dynamic and streamlined visualisation styles to demystify data
Bring the digital into physical retail outlets with live streaming and location-responsive apps
Integrate the mega-system aesthetic into your graphics and retail design
Consider creating apps that side-step the mega-systems
Design your products to connect with the mega-systems through the Internet of Things
Understand the smartphone as a mobile wallet, tracker and micro-retailer
Friday, June 7, 2013