Luxottica Group Retail Futures

Retail Futures An Overview for Brands

LS:N Global : Luxottica Group : Retail Futures

‘The goal of all brands is to reach consumers
wherever they are – online, in a store or on their
smartphone or tablet device’
Sharon Edelson, retail specialist

LS:N Global : uncertainty,
FinancialLuxottica Group : Retail Futures
austerity measures and
job cuts continue to
create some of the
toughest trading
conditions in the UK,
Europe and the US.

High unemployment,
falling wages and rising
inflation
are keeping consumer
demand weak

At Home 103, Seoul, South Korea


Eurozone woes
In February 2013,
Eurozone retail saw its
fastest drop in revenue in
nine years, with France,
Italy and Germany all
showing steep declines.
Source: Markit

Almost two-thirds (64%)
of Europeans believe
the recession will last
for another year
Source: Nielsen

Adidas store, Schulterblatt, Hamburg

LS:N opportunity on the
ButGlobal : Luxottica Group : Retail Futures
high street is re-emerging
and consumers are
spending again.

UK high street spending
rose by 1.3% in May
2013
The EU Economic
Sentiment Indicator
increased by 2.4 points
in July 2013
Sources: European
Commission,
The Commerce Department

& Other Stories, London


Luxury resilience
Luxury retail remains
buoyant despite longrunning Eurozone and
US economic turmoil
as consumers in emerging
markets keep spending
at home and overseas.
The global luxury goods
market will expand by
7–9% a year until the
middle of the next
decade
Source: Bain & Company

Gucci artisan

LS:N Global : Luxottica
Generation C Group : Retail Futures

New platform shifts have
ushered in a new
consumer who is
collaborative, creative,
conversational and
critical.
‘Collaboration is
occurring on a deeper
level than token
associations. This is an
opportunity for
companies to enter
longer-lasting, symbiotic
relationships with
customers’
Lauren Anderson,
Restaurant Day, Helsinki

innovation

Collaborative

Culture

These Generation C consumers, along with our
growing use of mobiles and phablets, have also made
brands:
Less hierarchical and more heterarchical
Less competitive and more collaborative
Less corporate and more cultural
These changes have gamified consumer thinking,
making it more experiential, immersive and, in the
words of Charles Leadbetter, a world in which ‘the
audience is taking to the stage’

Unlock the 007 in You vending campaign by Coke Zero


QuickTime™ and a
decompressor
are needed to see this picture.

Unlock the 007 in You vending campaign by Coke Zero

LS:N Global : Luxottica
Village brands Group : Retail Futures

Consumers want brands
to behave less like
brands, to adopt causes
and think locally.
The Shed, a California
food market, sells
locally sourced produce
and hosts in-store
lessons on preparing
local food
The Guggenheim Lab by
BMW tours to areas in
cities and acts as a
rolling think tank to
approach systemic
BMW Guggenheim Lab, New York
urban issues


Singleton tsunami
Solo living in cities is
shaping the future of
retail as global
urbanisation gathers
pace.
Adults under 65 who
live alone account for
17.6%
of all households in the
EU
By 2020, the number of
single-person
households
will reach 253.8m
Sources: Eurostat,
Pact branding by Acre
Euromonitor

LS:N Global : Luxottica Group
Urban box-cutters : Retail Futures

Singleton migration to
city centres is forcing bigbox retailers to abandon
their
out-of-town megastore
strategy in favour of
smaller, urban box lets.
Carrefour is expanding
its Carrefour City urban
mini-markets in France
Best Buy has closed 50
of its out-of-town US
stores to open 100
smaller urban outlets
YO! Home at 100% Design by Simon Woodroffe,
London


Grey affluents
Growing numbers of
ageing, affluent
consumers are creating
demand for
health-based retail
markets and services.
31% of senior US
citizens enjoy a high
income
UK Baby Boomers
control 80% of the
country’s net personal
wealth
Sources: US Federal Agency
Forum, Chartered Insurance
De Los Austrias
Institute Pharmacy, Barcelona

Womenomics revolution

A confident generation of
women who will have
€20.7 trillion to spend by
2014 are seeking femalefriendly ways
to do so.
Source: The Huffington Post

Gucci has unveiled an
empowering platform,
Chime for Change, while
Adidas launched its ‘All
in’ campaign

Chime for Change platform by Gucci

LS:N Global : Luxottica Group Global Market Overview
Retail Futures : : Retail Futures

QuickTime™ and a
H.264 decompressor

All in forfor Change platform by Adidas
Chime my Girls campaign by Gucci

LS:N Global : Luxury Futures : Market Overview

New Affluent Millennials
The Millennial
generation is rapidly
becoming the prime focus
of the lifestyle industry
as brands look to them to
drive growth.
: Millennials will become
the most important
consumer market for
luxury between 2018 and
2020
: Millennial spending
power has already
reached €148.2bn a year
Pact, a symbiotic space that houses a restaurant,
Sources: Unity Marketing,
hairdresser and a shop, Singapore

Kelton Research


Pact, a symbiotic space that houses a restaurant,
Photography: a shop, Singapore
hairdresser andXXXXXXXXX

Content convergence

Retail brands are
rethinking
the way they talk to
their consumers and
increasing their
investment
in editorial content.
Net-A-Porter publishes
a weekly online
magazine called The
Edit

• LVMH has invested in
the Nowness and
Business
of Fashion brands

The Edit magazine by Net-A-Porter


Omni-channel rising
The next stage of digital
and physical retail
convergence, omnichannel retail, enables
consumers to have a
highly immersive brand
experience regardless of
the platform.
Omni-channel customers
spend about four times as
much as people just
shopping through the
usual channels
Stephen Sadove, outgoing
chairman and CEO of Saks Inc
Snap Fashion


QuickTime™ and a
decompressor

Snap Fashion

LS:N Global : Luxottica Group : Retail
Thumbtail v Touchtail Futures

In 2012 mobile retail was
projected to grow from
€396.2bn to €774.5bn in
2016.
In the UK, £1 in every
£10 is now spent via a
mobile channel
Sources: Morgan Stanley,
Centre for Economics and
Business Research

Sainsbury’s Mobile Scan & Go


Touchtail v Nametail
The Card Case app enables
consumers to pay for a
product simply by stating
their name.
‘Smart services such as
these are the loyalty
cards of this decade. They
will become the main
contact point between
retailers and customers’
Jon Carney, managing partner,
Somewhat

Card Case app


Card Case app

Mega-system retail : Retail Futures

Apple, Amazon, Alibaba,
Google, Facebook and
Sina Weibo are also
changing the way we do
business online and on
mobile.
They have become online
mega-systems – or rather
mega-retailers – within
which millions of
consumers live, browse,
socialise and shop

Data.anatomy by Ryoji Ikeda for Honda Civic,
Kraftwerk, Berlin


Amazon’s 2012 revenue
was €46.2bn thanks to
sales across 40 product
categories including
media, technology, wine,
cars, fashion, beauty
and luxury
Google’s 2012 revenue
exceeded €37.9bn across
its search, advertising,
YouTube, Blogger,
Android and email
platforms

Google data centre, Georgia, US

LS:N Global : Luxottica Group :
Cloud ConsumerismRetail Futures

By 2020 there will be
50bn connected devices
on the planet, each
connecting us to the
internet and to each
other
Source: Cisco

Plugging into these
possibilities, brands and
consumers are already
using experiential, haptic
technologies to enable us
to touch, feel and
download everything
from 3D products
to feelgood experiences
Durex Fundawear campaign


QuickTime™ and a
decompressor

Durex Fundawear campaign


Mega-mall tactics
Against these changes, we
have note a new
paradigm shift in retail,
social commerce and
blurred-sector selling:
Gated retail
Walled rewards
In-system privileges
Total retail
All are reactions to, or
protests against, the
ubiquity of the megasystems
Big Data Tunnel art from Big Data conference, UK

Gated retail

Retailers are learning
from the mega-systems.
Some are using the
walled-garden
model to offer membersonly style benefits.
Soldsie enables
Facebook sales using its
Comment tool
YSL created a limitededition product
collection, Devoted to
Fans #1, purely for its
Facebook friends
YSL Devoted to Fans #1 cosmetics


In-system privileges
American Express’s Pay
by Tweet service enables
customers to pay for
goods from within
Twitter
Google Local runs
events that bring social
networking into the real
world for
Google+ members, and
Google+ Hangout offers
access to exclusive
events
Google+ stages
shoppable Hangout with
Google+ Hangout Live at Topshop Unique
autumn/winter 2013
Diane von Fürstenberg

BAM fights back : Retail Futures

Retailers are fighting
back against online megamalls with free returns,
payment booths, drivethrough customer service
centres and local pick-up
sites.
ShopRunner works with
retailers to offer pricematch, free shipping
and free returns
Analogue brands such
as Polaroid are bringing
new media in-store to
The Polaroid Foto Bar at CES 2013 let people
extend
convert digital photos into high-quality prints instore
their lifespan


Clicks and mortar
Online retailers,
including mega-systems,
are realising how
important offline retail is
to the consumer
experience.
eBay has started
creating physical popup shops
Google is rumoured to
be opening a store
US eyewear e-tailer
Warby Parker has
opened a flagship store
Warby Parker website and flagship store, New
York
with digital photo booth

‘Pure play online : Retail Futures
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


Total retail
Established brands are
also piggy-backing on the
mega-systems’ multichannel reach.
Topshop live-streamed
its catwalk show on
Google and leveraged
social buzz through its
Be The Buyer app
Burberry collaborated
with Apple to showcase
its iPhone 5s camera, by
allowing the brand to
create all the highdefinition photos that
Burberry spring/summer 2014 show shot with
iPhone 5S shared of the show
were

LS:N Global : spaces
Phy-gital Luxottica Group : Retail Futures

As digital aesthetics come
into the physical world
the mega-systems will be
seen and experienced in
stores.
Selfridges has
introduced an
interactive digital
Jeanius Table for its
denim lounge, guiding
consumers by size,
brand and fit
Alexander McQueen’s
McQ store features
clever interactive
Jeanius Table at the Selfridges digital
mirrors and a Denim Studio


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
Google and Berg’s connected products are the
forerunners to the Internet of Things touch
mega-systems that

Predictive retail : Retail Futures

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 megaBespoke scent tailoring by Commodity, Los
Angeles
systems


Whole-person profiles
As big data moves beyond
shopping to look at other
lifestyle needs, it will
compile more complex
digital personae.
Spending history,
personal health, fitness
records, media
consumption and
education are being
logged online. These will
be combined to construct
whole-person profiles
Made by Humans, Hyundai Vision Hall by
Universal Everything


Face-to-place payments
Frictionless, check-in
commerce 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, and
then offers deals specific
to them

Facedeals facial recognition system
by RedPepper, US

LS:N Global : Luxottica Toolkit
Retail Futures Group : Retail Futures

Make your brand collaborative and keep its messages conversational
Be a village brand
Be present, available and shoppable across all platforms
Piggy-back onto the mega-systems to offer tailored rewards
Be experiential, immersive and live
Embrace mobile – power of pocket is the future of profitable retailing


Thank you

martin@thefuturelaboratory.com

Luxottica Group Retail Futures

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Luxottica Group Retail Futures

Similar to Luxottica Group Retail Futures (20)

Recently uploaded

Recently uploaded (20)

Luxottica Group Retail Futures