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trendwatching.com's May 2012 Trend Briefing features (R)ETAIL (R)EVOLUTION: how e-commerce is transforming ALL shopping behavior. Both on and offline. From (M)ETAIL to ETAIL-TAINMENT, with examples from brands like Zara, Ticketmaster, Facebook, KLM and more...
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(R)etail (R)evolutionetail is retail is etail
trendwatching.com’s free Monthly trend BriefingMay 2012
(R)etail (R)evolutionwww. t rendwatch ing . com 2
Exactly as predicted by e-gurus 15 years ago, e-commerce is hotter than
ever. Whether in mature markets, where consumer spending is shifting
online, or in growth markets where rapid urbanization and increasing
(mobile) internet penetration are unlocking new shopping habits, shoppers
are ‘e-commercing’ it up.
Now, consumers’ current ‘online’ experiences are of course fundamentally
different to those during the early dotcom boom: e-commerce is no longer
just about choice, price, convenience, reviews and ratings, but also about
everything that consumers look for in any purchase: status, the right
product and a compelling experience.
intRoduction
Some obligatory StatS:
• US e-commerce sales will grow 62% by 2016, to USD 327 billion (Source: Forrester, February 2012).
• european e-commerce sales will grow by 78% by 2016, to USD 230 billion (Source: Forrester, February 2012).
• brazilian e-commerce sales will grow 21.9% in 2012 to USD 18.7 billion (Source: eMarketer, January 2012).
• Chinese e-commerce sales were CNY 780 billion (USD 124 billion) in 2011, an increase of 66% from 2010. E-commerce is expected to rise from 3% of consumption to 7% by 2015 (Source: IDC, March 2012).
• india’s e-commerce market is expected to grow to USD 70 billion by 2020, from just USD 600 million in 2011 (Source: Technopak Advisors, February 2012).
• indonesian e-commerce sales are forecast to grow from USD 120 million in 2010 to USD 650 million by 2015 (Source: Frost & Sullivan, February 2012).
(R)etail (R)evolutionwww. t rendwatch ing . com 3
#1: e iS FoR eveRYWHeRe
#3: e(aSY) coMMeRce
#2: Metail
#4: oH tHat WondeRFul WeB
For consumers who are constantly connected, buying online is simply
another option, rather than a wholly separate and distinct medium.
Featuring sub-trends like: SCreeN CUltUre, all tHe Web’S a
(SHoP) WiNDoW and oN to oFF / oFF to oN.
All the barriers initially holding e-commerce back (e.g. correct fit, secure
payments, convenient deliveries) have been significantly reduced, if not
totally removed.
Featuring sub-trends PerFeCt Fit, DeliVery DeligHt, liFe:
SUbSCribeD and PerFeCt PaymeNtS..
Going ‘online’ now means immersing oneself in (and enthusiastically
adding to) a rich, personalized, social web.
Featuring sub-trends CaSHiNg iN oN CUratioN, Sell-yoUr-oWN
StoreS, retail iNVeStmeNt and at yoUr SerViCe.
Consumer expectations at large are now set online. Endless choice,
instant gratification, total transparency, seamless collaboration, the list
goes on…
Featuring sub-trends like NiCHe riCHe, CroWD CloUt, total
traNSPareNCy, etail-taiNmeNt and eXClUSiVe eXPerieNCeS.
contentS
(R)etail (R)evolutionwww. t rendwatch ing . com 4
ScReen cultuRe /
all tHe WeB’S a (SHoP) WindoW /
on to oFF /
oFF to on /
For consumers, the very act of navigating to a website, locating
and then buying a specific product is giving way to a world where
(e)commerce is always just a click (or a point, tap, swipe) away.
Indeed, e-commerce is rapidly being joined by ‘m-’ and ‘t-’ commerce
(via mobile, tablet and TV). Whatever the medium, consumers will use
any and every available technology that helps them find and buy the
right product, at the right price, in a manner they enjoy.
#1 e iS FoR eveRYWHeReFor consumers who are constantly connected, buying online is simply another option, rather than a wholly separate and distinct medium.
(R)etail (R)evolutionwww. t rendwatch ing . com 5
We looked at the all-pervasive SCREEN
CULTURE in our 12 Crucial Consumer trends
for 2012. Now, for (r)etailers, everything from
bus stops to TV programs can be an outlet, as
consumers armed with smartphones or tablets
embrace innovative new applications and
technologies to shop wherever and whenever*.
QR code ‘shopping walls’ have popped up
everywhere since Tesco Homeplus’ pilot in Korea.
The company has now extended the initiative to
20 bus stops in Seoul, after becoming the number
one shopping app in Korea with nearly one million
downloads.
* Note: That’s it in this Trend Briefing for
m-commerce. Yes, the lines between mobile
and online are getting more blurred by the day,
especially for mobile-first consumers in emerging
markets, but to keep this manageable, for us and
you, we’ll save looking at all the m-commerce
developments for another Trend Briefing!
ScReen cultuRe
tesco Homeplus: QR code bus stop stores
During New York’s Fashion Week, Glamour
magazine partnered with L’Oreal to enable
passengers riding in selected cabs to buy
lancôme products they saw featured on the in-
cab TV screens.
Glamour & l’oreal:Fashion taxis
(R)etail (R)evolutionwww. t rendwatch ing . com 6
eBay’s new iPad app includes ‘Watch With ebay’.
Users enter the channel they are viewing to see
relevant items available for purchase. For example,
sports fans watching a game can buy memorabilia
relevant to the teams on screen.
ScReen cultuRe
‘Watch with eBay’ iPad app
Other online brands deploying the stores include
eBay in both london and New york, PayPal in
Singapore, luxury fashion retailer Net-a-Porter,
and online grocery store ocado. Traditional
retailers such as toys”r”Us, Sears and Kmart, as
well as manufacturers such as Procter & gamble
have also deployed the ‘stores’. With their winning
combination of novelty, convenience and low
set-up costs, shopping walls could be one retail
innovation that runs and runs.
QR code virtual shops
(R)etail (R)evolutionwww. t rendwatch ing . com 7
all tHe WeB’S a (SHoP) WindoW
It’s not just offline that consumers are able
to seamlessly buy almost everything they
encounter (see our February/march 2012 trend
briefing on PoiNt-KNoW-bUy). Online too,
people can increasingly click, find, and then
buy items they see in images or videos*.
IKEA have been using ThingLink technology to
embed product links into the images on their
Swedish blog, enabling customers to shop directly
from the photos.
* As with many new technologies, some publishers won’t
be able to resist the temptation to blanket their photos and
videos with intrusive ads. You shouldn’t need us to tell you
to only embed subtle, helpful and most importantly welcome
product links. And no, aggressive pop-ups will never
become ‘cool’.
iKea & thinglink: Shoppable images
Stipple offers consumers the ability to discover,
and then purchase objects in images.
Stipple: image marketplace
(R)etail (R)evolutionwww. t rendwatch ing . com 8
Clickberry offers a number of solutions to make
videos interactive, by enabling publishers to add
clickable areas to their videos.
clickBerry: tag videos to make them interactive
Until PoiNt-KNoW-bUy technologies can
be accurately deployed by people merely
watching videos online, it’s up to brands to create
‘shoppable’ videos. Which is exactly what Gucci
have done to promote their Spring/Summer 2012
collection.
Gucci: Shop the Spring/Summer 2012 video
all tHe WeB’S a (SHoP) WindoW
(R)etail (R)evolutionwww. t rendwatch ing . com 9
on to oFF While virtually all consumers are now online,
sometimes it makes sense for even the
biggest online brands to branch out from
their virtual roots and reach out to customers
in the real world too.
In February 2012, industry blog Good E Reader
reported that Amazon would launch a retail store
in its hometown of Seattle, to showcase its branded
physical products such as the Kindle.
Because after all, as we observed in retail
reNaiSSaNCe, consumers will continue to
crave ‘real world’ experiences for a long time to
come.
amazon: launching retail stores?
Following their pop-up Chromebook store in
London in October 2011, a planning application
in January 2012 led to rumors that Google was
planning to open a retail store in Dublin, Ireland.
Google: Rumored dublin store
(R)etail (R)evolutionwww. t rendwatch ing . com 10
Groupon competitor Living Social opened 918 F
Street, a 28,000 square foot, six story building
in Washington DC. The space is used to host the
experiences that the site sells online, such as
cooking, painting and yoga classes.
living Social: 918 F Street
Daily deal site groupon launched interactive
kiosks in Chicago in January 2012, enabling
people to buy deals for local businesses direct
from the machines.
Groupon: available at kiosks in chicago
on to oFF
(R)etail (R)evolutionwww. t rendwatch ing . com 11
Personalized online accessory subscription service
StylistPick opened a pop-up store in London’s
Westfield shopping center in February 2012, where
fans could meet the celebrity curators behind their
selections.
StylistPick: Meet the curators at pop-up store
Threadless, the crowdsourced t-shirt site that
became one of the web’s most successful retailers,
launched a collaboration with GAP in February
2012. The partnership saw 25 t-shirt designs from
the online brand available in selected GAP stores
and online.
threadless & GaP: online retailer’s t-shirts sold in stores
on to oFF
(R)etail (R)evolutionwww. t rendwatch ing . com 12
oFF to on Just as consumers enjoy finding previously
online-only brands offline, they also expect
the offline to be accessible online. Now,
while there’s obviously nothing new about
brands selling online, these recent OFF TO ON
innovations stand out:
turnhills is a crowdsourced online photo directory
of real store windows. Launched in December
2011, the site currently covers New York.
turnhills: Window shop online
google’s Catalogs tablet app brings real world
catalogs online. The app features digital catalogs
from brands such as Bloomingdale’s, Neiman
Marcus, Nordstrom, Sephora and Williams-
Sonoma. Users can search for products within and
across catalogs, and either buy online or locate
in-store products.
Google catalogs: app offers digital versions of store catalogs store
(R)etail (R)evolutionwww. t rendwatch ing . com 13
January 2012 also saw the launch of Plink, a
loyalty program where participants are rewarded
with Facebook Credits for shopping and dining
offline. Participating establishments include Taco
Bell, 7-Eleven and Dunkin’ Donuts, with over
25,000 locations available across the US.
Plink: Facebook credits for offline purchases
Japan based PanoPlaza launched in January
2012. The site creates virtual versions of bricks-
and-mortar stores using 360-degree panoramic
photos, complete with ‘hotspots’ where products
are available for purchase. The technology has
been used in Tokyo for a department store, a
bookshop, and a sweet shop.
PanoPlaza: online shopping in real stores
oFF to on
(R)etail (R)evolutionwww. t rendwatch ing . com 14
caSHinG in on cuRation /
Sell-YouR-oWn StoReS /
Retail inveStMent /
at YouR SeRvice /
Giving customers a uniquely personalized or tailored experience is
something that successful e-commerce sites from Amazon onwards
have always focused on. But now, consumers sit at the center (and
indeed actively contribute to) a far richer and more deeply personal
and personalized online experience - meaning e-tail is increasingly
(m)etail.
Expect the trend for all forms of of personalization and curation to
continue, as consumers embrace everything that enables them to
display their style and good taste (as on social ‘pinning’ site Pinterest),
or to receive selected, high quality picks from trusted curators (as with
independent, design-focused Fab.com).
#2 (M)etailGoing ‘online’ now means immersing oneself in (and enthusiastically adding to) a rich, personalized, social web.
(R)etail (R)evolutionwww. t rendwatch ing . com 15
caSHinG in on cuRation
The status boost that comes from discovering,
compiling, commenting, recommending and
sharing desirable, inspiring or useful products
and services means that the trend for
consumers to become curators will run and
run. And while many consumers won’t need
any encouragement to become SoCial-liteS,
Users of rNKD are awarded points for uploading
photos of clothes and accessories in their closet.
The more points a user has, the better their
chances of winning a prize, with rewards including
Zappos gift cards.
they will also welcome brands or platforms that
reward them for their sharing.
But be warned, this isn’t about bribing people
to tweet about you or ‘like’ you. Smart brands
will be those that encourage or incentivize
existing consumer behavior in a genuine
and natural way.
RnKd: Winning wardrobes
Customers of Vancl, one of China’s largest fashion
e-tailers, can set up their own personal stores
as part of the brand’s VaNCl Star initiative.
Customers can upload photos of themselves
wearing Vancl products, and as well as highlighting
potential combinations and styles, they get 10% of
sales generated from their pages.
vancl Star: Share your style and earn
(R)etail (R)evolutionwww. t rendwatch ing . com 16
Fopping.com is an Indian startup where
consumers get discounts for sharing potential
purchases with their social networks. The more
friends a user has, the lower the price they pay.
Fopping.com: Friend-based discounts
caSHinG in on cuRation
Brands too can easily tap into this trend. Zara’s
People! initiative asks fans of the brand to upload
photos of themselves wearing at least two items
from the Spring/Summer 2012 collection. Each
week, a selection of photos are published on the
brand’s website, with featured contributors winning
EUR 300.
Zara People!
(R)etail (R)evolutionwww. t rendwatch ing . com 17
Sell-YouR-oWn StoReS
Consumers will always be attracted to both
the perfect fit and prestige of personalized or
bespoke products, and, hurrah, e-commerce,
with its separation of order and fulfillment, has
long promised to deliver mass customization.
And of course, the mega-trend for consumers
to become producers continues apace.
Opened to selected testers from December
2011, Converse made by is a Facebook app
that enables users to design their own Converse
sneakers and sell them to their friends on the social
network and via their own virtual store, with users
who sell enough pairs being rewarded with free
pairs of Converse shoes.
Yet, while some early pioneer brands and
entrepreneurs have been letting consumers
create, design, tweak or edit their products for
years, social networks make it easier than ever
for these customer-producers to then sell (and
therefore profit from) their own creations
too.
converse Made By Facebook app
Launched in December 2011, uFlavor offers
consumers the chance to concoct their own soft
drinks. Customers can choose from a list of 100
flavors and upload images to create personalized
labels. Drinks are available to buy online via the
uFlavor marketplace, and creators are rewarded
for each sale.
uFlavor: Make-and-sell-your-drinks
(R)etail (R)evolutionwww. t rendwatch ing . com 18
In June 2011, UK band Kaiser Chiefs released
their album “The Future is Medieval”. The band
produced twenty tracks, and fans could choose
ten to create their own version of the album,
which they were then actively encouraged to sell.
Creators received GBP 1 for each album they sold
for GBP 7.50.
Kaiser chiefs: Make-your-own album
Glasgow-based Scottish Whisky blender enables
visitors to design their own custom whiskey blends,
by choosing from seven hand-picked whiskies.
Customers’ creations are also entered into the
brand’s archive and available for sale by anyone
with the unique code.
Scottish Whisky Blender
Sell-YouR-oWn StoReS
(R)etail (R)evolutionwww. t rendwatch ing . com 19
Retail inveStMent
The opacity of production and distribution
meant that customers were often left with
products that someone else (i.e. distant brands)
thought they wanted.
Now increased transparency and collaboration
on social networks mean that consumers can
help support production of specific items or
projects that attract their attention. Platforms
like Kickstarter enable entrepreneurs, designers
Chicago design firm MINIMAL created TikToc, a
watch-strap attachment for the iPod Nano that
raised over USD 900,000 from 13,500 people on
Kickstarter. Nearly 1,500 people pledged USD 150
or more for editions laser-signed by the designer.
and creators to pitch products directly to
consumers.
And the near-infinite flexibility of e-commerce
has allowed tiered pricing to move way
beyond boxed sets or limited editions.
Consumers looking for ever-valuable StatUS
StorieS are often able to support favored
projects not just with a purchase but a
significant investment. Learn from:
tiktok: iPod nano watch-strap
The inventors of Coffee Joulies, metal ‘coffee
beans‘ containing a thermodynamic material that
cools excessively hot drinks, and then maintains
the heat as the drink cools, put the project on
Kickstarter hoping to raise USD 9,500. Nearly
5,000 people pledged over USD 300,000.
coffee Joulies
(R)etail (R)evolutionwww. t rendwatch ing . com 20
Benefeitoria is a Brazilian crowdfunding platform
similar to Kickstarter. A recent sVuccessful project
saw auire Prisma, a scanner for visually impaired
people that could ‘read’ notes and say which
denomination they are, get funded and go into
production.
Give us half a day of your time, and leave the
room knowing about every consumer trend,
insight and innovation that needs to be on your
radar!
Benfeitoria: auire Prisma bill identifier for the blind
not always enough time to read our trend Briefings?
Retail inveStMent
Check out our exclusive yet affordable
Global trend Seminars(aug-oct 2012)13 cities, 11 countries. Don’t miss out.
(R)etail (R)evolutionwww. t rendwatch ing . com 21
at YouR SeRvice
One of the benefits of shopping in-store is
the ability to speak with shop assistants and
get advice. But e-tailers too can now take
advantage of the widespread adoption of social
technologies to unlock innovative ways to
replicate, if not enhance, these ways to serve
online shoppers.
February 2012 saw British fashion e-tailer aSoS
offer customers free ‘Style Sessions’ via Skype.
Selected participants could ask ASOS’ Style
Advisors questions about ASOS apparel and seek
out advice on purchases they were considering.
From tapping into publicly available if not
volunteered information, or connecting
consumers with other consumers to get
better recommendations, there are endless
online services that make it possible to find
the perfect product. Take inspiration from the
examples below:
aSoS Skype Style Sessions
Needle enables companies to use loyal brand
aficionados to assist in live online chats with
customers, in return for points which can be
redeemed for gifts. By discussing how they use the
product in their daily lives for example.
needle: customer-powered customer service
(R)etail (R)evolutionwww. t rendwatch ing . com 22
Latvian service reach.ly filters Twitter traffic
to show hotels tweets from people who have
expressed an interest in traveling to a particular
city.
Reach.ly: travel leads via twitter for hotels
Chinese travel site CTrip launched an automated
‘robot’ in Februrary 2012 that could automatically
and instantly respond to Weibo messages directed
at it, such as about flight prices, or hotel rates in
specific destinations.
ctrip: automated Weibo concierge
at YouR SeRvice
(R)etail (R)evolutionwww. t rendwatch ing . com 23
The Ticketmaster timeline app for Facebook
suggests recommended gigs for fans based on
their Spotify listening history. The app can also tell
users where their friends’ tickets are located to
enable people to sit together.
ticketmaster: Recommended gigs based on listening history
Karma is an app that enables users to easily
give spur of the moment gifts. Connecting the
app with Facebook also enables users to receive
notifications about which of their friends they
might want to give a gift to, by highlighting friends
who have recently experienced something worth
celebrating.
Karma: Gift giving made easy
at YouR SeRvice
(R)etail (R)evolutionwww. t rendwatch ing . com 24
PeRFect Fit /
deliveRY deliGHt /
liFe: SuBScRiBed /
PeRFect PaYMentS /
Clothes, shoes, furniture, groceries. All things that were widely
predicted to be impossible to sell online, yet increasingly added to
millions of virtual baskets around the world. The following sub-trends
show why, with the right infrastructure, anything that is bought, will
be bought online too.
#3 e(aSY)-coMMeRceAll the barriers initially holding e-commerce back (e.g. correct fit, secure payments, convenient deliveries) have been significantly reduced, if not totally removed.
(R)etail (R)evolutionwww. t rendwatch ing . com 25
PeRFect Fit Buying something that can’t be seen, touched
or tested will forever be a barrier. Many popular
e-tailers have borne the risk of returns in an
attempt to overcome shoppers’ fears, but new
With Berlin based Upcload, shoppers stand in
front of their webcams holding a CD as pictured,
to generate a personalized size profile that can
be used when purchasing apparel products. The
North Face is currently trialing the system in the
US.
technologies mean that customers can be ever
more confident that they are making a perfect
purchase first time.
upcload: Sizing via a cd and webcam
UK based Bodymetrics launched its livingroom
fitting product at CES 2012. The PrimeSense 3D
technology can map a user’s body using Kinect-
like 3D sensors. When attvached to a TV, shoppers
can virtually ‘try on’ clothes and see how they will
fit on their body shape.
Bodymetrics: living room to fitting room
(R)etail (R)evolutionwww. t rendwatch ing . com 26
Israel’s brayola, which launched in February 2012,
aims to help women buy perfectly fitting bras
online. Rather than using measurements, the site
asks women which bras they already own that are
comfortable, and then matches them against its
database to recommend similarly fitting bras.
Brayola: find perfect bra size
Launched in December 2011, US based Zazzle’s
realview enables users to upload their own
photographs to the site in order to visualize how
the DIY e-tailer’s prints and artwork would look in
their own home.
Zazzle: visualize art on the walls
PeRFect Fit
(R)etail (R)evolutionwww. t rendwatch ing . com 27
deliveRY deliGHt
With customers’ NoWiSm and lust for instant
gratification (and combined with the frequent
difficulties in receiving goods bought online),
making delivery seamless or even a delight
should be right at the forefront of every
e-entrepreneur’s or e-tailer’s mind.
UK based Shutl offer deliveries in as little as 90
minutes across much of the UK. In March 2012, the
brand announced that they were partnering with
Maplin, an electronics retailer, to offer delivery in
over 40 cities.
And while ‘click and collect’ services
remain popular with online shoppers, also
check out these recent innovations:
Shutl offers speedy deliveries
Italian fashion e-tailer Yoox offers customers in
China enhanced delivery services when they order
from the dedicated Chinese version of its luxury
multi-brand site, the Corner. In partnership with
FedEx, Chinese shoppers can expect delivery staff
to wait while they look over their purchases, try
them on and decide whether they want to keep or
return them.
the corner & Fedex: try-while-they-wait-commerce
(R)etail (R)evolutionwww. t rendwatch ing . com 28
And it’s not just physical goods that are ripe for
innovation. giftwhip aims to make receiving online
gift cards, vouchers or virtual goods more exciting.
The service creates a virtual present, which
recipients can’t open or view until the ‘unwrap date’
set by the giver.
Giftwhip: virtual gift wrapping
Slice enables users to track all their online
purchases in one place. In December 2011, the
company rolled out their ‘track With Friends’
feature, enabling recipients to track their gifts
without revealing what they are or how much they
cost.
Slice: Keep the surprise while tracking online gifts
deliveRY deliGHt
(R)etail (R)evolutionwww. t rendwatch ing . com 29
liFe: SuBScRiBed
We first looked at the rise of subscription-
based sites last year, but with their winning
combination of convenience and curation
ensure that this is one ‘trend’ that you should be
sure to sign up to ;-)
The emergence of a platform is always a sure sign
that a trend is booming, and memberly, a platform
that provides a back-end administration panel and
payment handling for online subscription services,
is no exception.
Memberly: Run-your-own subscription service
Frank & oak offers a twist on the fashion
subscription model. Based in Montreal, members
of the site’s Hunt Club are sent a monthly email
with that month’s fashion selections. Customers
select between one and four items that they wish
to receive by post, and unwanted items can be
returned free of charge.
Frank & oak: only pay for what you keep
(R)etail (R)evolutionwww. t rendwatch ing . com 30
In October 2011, French farm, La Ferme des
Echancées made its ‘Contrat Poule’ (‘Chicken
Contract’) service available to 50 towns.
‘Subscribers’ receive packages of eggs for one
year, and at the end of the nesting season they can
opt to have the carcass delivered to them to cook.
la Ferme des echancées: ‘contrat Poule’
los Paderos is a Brazilian site that sends
subscribers three loaves of half-baked artisan
bread each week. Customers can then store the
loaves in the fridge for up to two weeks; when
they’re ready to eat them, they simply finish baking
them.
los Paderos: artisan breads in Brazil
liFe: SuBScRiBed
(R)etail (R)evolutionwww. t rendwatch ing . com 31
PeRFect PaYMentS
Most internet users are now (fairly) comfortable
with shopping online. Yes, concerns remain, but
online sales continue to significantly outpace
all other spending, despite the occasional
well-publicized glitch. However, the checkout
Citing the high abandonment rate when consumers
are required to register at a new site to complete
a purchase, eBay launched its PayPal access
product in October 2011. The initiative allows
consumers to login to, and pay at participating
e-tailers without having to register a new account.
PayPal access: Single sign-in
Facebook announced in February 2012 that it
had partnered with a number of the largest mobile
operators, including AT&T, Deutsche Telekom,
Orange, Telefónica, T-Mobile USA, Verizon and
Vodafone, to enable users to make Facebook
Credit purchases via mobile operator billing (i.e.
see the charge appear on their mobile phone bill).
Facebook credits: an alternative currency?
process too often remains far from seamless,
creating opportunities for any innovation
that makes paying online quicker, more
convenient, or more secure.
(R)etail (R)evolutionwww. t rendwatch ing . com 32
PeRFect PaYMentS
American Express launched its Sync initiative
in March 2012. Cardholders can link their credit
cards to their Twitter accounts, to receive coupons
and discounts for tweeting certain hashtags. For
example, users who tweeted #amexWholefoods
received a USD 20 credit on purchases of over
USD 75. Participating brands include H&M,
McDonalds, Best Buy and Zappos.
amex: Sync with twitter
Indian online shoppers often face issues with
payment gateways, perhaps explaining why many
e-commerce transactions are still settled with
cash on delivery. Hoping to smooth the payment
process, Flipkart, India’s answer to Amazon,
introduced a feature where customers could
deposit up to INR 10,000 (USD 190) in an online
‘wallet’, enabling users to check out quickly
without having to re-enter their credit card details.
Flipkart: virtual ‘wallet’
(R)etail (R)evolutionwww. t rendwatch ing . com 33
nicHe RicHe /
cRoWd clout /
total tRanSPaRencY /
etail-tainMent /
eXcluSive e-XPeRienceS /
Certain factors (taste, smell, and physical interaction to name just a
few) still compel people to continue to shop in the ‘real world’. But
the online world has its advantages too, especially when it comes to
things such as collaboration, accessibility, reach, transparency and
shareability.
in fact, consumers now expect the online experience to not just
match the offline experience, but to improve on it in ways that are
difficult if not impossible to replicate offline.
#4 oH WHat a WondeRFul WeBConsumer expectations at large are now set online. Endless choice, instant gratification, total transparency, seamless collaboration, the list goes on…
(R)etail (R)evolutionwww. t rendwatch ing . com 34
nicHe RicHe E-commerce is an endless aisle, in which
consumers can shop niche products from all
over the world as well as in the online mega-
malls such as eBay and Amazon.
And the appeal of small-scale, artisan shops
is just as strong online as it is offline. Indeed
online consumers can now easily discover
(whether via personal tips or via trusted
curators) even the smallest, most obscure store
With love from brooklyn is an online retailer that
only sells items created by local artisans. The site’s
products range from the iconic Brooklyn Cruiser,
to locally made food, drinks and preserves, to the
works of local artists.
selling quirky, unique or storied products that
perfectly align with their particular interest or
tribe.
On the business side too, it’s easier than ever
to open an online store, as there are now
endless platforms and solutions that make it
virtually effortless, from Shopify, Payvment,
eBay Xcommerce to taobao and more.
With love from Brooklyn: Your local online store
localbrand.co.id is based in Indonesia and
exclusively stocks Indonesian high-fashion
designers, with a goal of supporting and promoting
local brands on a global stage. An online
magazine also features photo shoots, interviews
and pictures of Indonesian ‘street style’.
localBrand.co.id: indonesian fashion portal
(R)etail (R)evolutionwww. t rendwatch ing . com 35
Launched in January 2012, Cuelcinha is a
Brazilian site that sells fine lingerie collections for
men. Products include high quality boxers and
panties made with fine fabrics, animal prints and
lace inserts. Pieces are designed to fit the male
anatomy in comfort, with elasticated detailing.
cuelcinha: Male lingerie in Brazil
Launched in December 2011, Never liked it
anyway is a marketplace where users can sell
items connected to past romantic relationships. A
wide variety of products are available on the site,
generally at a discounted ‘break-up’ price, with
many unwanted gifts such as jewelry, or items
connected with engagements or marriages like
wedding dresses.
never liked it anyway: Post-break up sales
nicHe RicHe
(R)etail (R)evolutionwww. t rendwatch ing . com 36
cRoWd clout One of the things that comes easily online is
mass collaboration, and the crowdsourcing
trend is one that we’ve been watching for a
while (check out our first look at CroWD CloUt
way back in 2007!).
While e-commerce often promises low prices,
sometimes finding the best price can be difficult
and/or time-consuming. Australian site FlightFox
allows travelers to set up a contest where online
travel experts can compete to find the best
available prices for future trips. Users pay an AUD
29 ‘finders fee’ (refundable if a cheaper flight is
found within 48 hours), and the site claims to save
people AUD 369 per trip on average.
Now, with more consumers than ever pretty
much constantly online and plugged into social
networks, it’s never been easier for shoppers
to harness the power of the crowd in new and
innovative ways.
FlightFox: Human-powered flight deals
Launched in China during December 2011, deal
site Handsup.cn invites users to submit ideas
for products they would like to see on its virtual
shelves, and suggest how much they want to pay
for them. Users can then vote for the deal, and if it
proves popular, Handsup staff contact the brand
or business in question to try and arrange the
promotion.
Handsup.cn: crowdsourced daily deals
(R)etail (R)evolutionwww. t rendwatch ing . com 37
cRoWd clout
Launched in September 2011, Greek website
galoo allows users to suggest the price they are
willing to pay for an item, and invite friends to
‘strengthen’ their negotiating position. If a seller
agrees to the suggested price, the two parties
organize payment and delivery.
Galoo: Greek ‘reverse buying’ platform
In November 2011, amazon asked its Facebook
fans to vote on which discounts they should offer
during the Black Friday to Cyber Monday period
(two popular days for shopping in the US). The
30% discounts were available on the e-tailer’s
specialist sites, Soap.com, Diapers.com, Wag.com
and YoYo.com.
amazon: vote for Black Friday deals
(R)etail (R)evolutionwww. t rendwatch ing . com 38
total tRanSPaRencY
We’ve looked on a number of occasions at
traNSPareNCy triUmPH, and how the
availability of online information is reshaping
consumer expectations and corporate behavior
(check out our recent Trend Briefing on
FlaWSome ;-).
If transparency 1.0 was all about the excitement
at being able to see exactly what other (real!)
Launched in Belgium in January 2012, Honest
by is a sustainable, fully transparent apparel
brand and e-tailer. For every product available
on the Honest By site, full information is available
on manufacturing (including working conditions),
material and supplier sources, pricing, and ethical
or organic certifications.
people thought about products or services;
transparency 2.0 saw this become just a
default element of decision-making; now
transparency 3.0 will be about making almost
all aspects of the transaction and experience
transparent: manufacturing, pricing, reviews,
popularity, and even personal relevance.
Honest By: transparent fashion
February 2012 saw KLM roll out its meet & Seat
initiative. The optional service allows passengers
to link their booking to their Facebook or LinkedIn
profile and select a seat next to the individuals they
find most interesting.
KlM: Meet & Seat
(R)etail (R)evolutionwww. t rendwatch ing . com 39
igluu is a free Brazilian service that lets consumers
browse multiple sites and create virtual shopping
lists (online or on their smartphones). For each
item, the service shows users which participating
store offers the cheapest price, and once they’ve
picked the store to order from, Igluu transfers their
shopping cart to that retailer to arrange delivery.
igluu: Shop for groceries across multiple stores
Hotels.com recently implemented a feature that
showed visitors to its site how many times the hotel
they were viewing had been booked in the past 24
hours.
Hotels.com: notify how many people have booked in past day
total tRanSPaRencY
(R)etail (R)evolutionwww. t rendwatch ing . com 40
etail-tainMent
Successful retailers in the ‘offline’ world are
often those that make a store visit an enjoyable
or exciting event (including those, as we
showed in retail reNaiSSaNCe, who use
technology to enhance the experience and
bring the benefits of online to the offline world).
Launched in the UK in October 2011, Fantasy
Shopper is a social shopping game that gives
users fantasy money to browse, style and
‘purchase’ clothes from over 300 real stores.
Players can unlock major world shopping
destinations, and complete challenges to boost
their ‘fashionista reputation’, all while earning real
discount codes and vouchers for participating
brands.
Rather than trying to replicate the offline
experience, e-tailers can deploy new
techniques that make e-commerce ‘fun’ in
ways that physical retail can’t match, such as
allowing consumers to collaborate, compete
and turn shopping into a (virtual) game.
Fantasy Shopper: Fantasy Football, with clothes ;-)
Mimicking Japanese department stores’ ‘fukurburo’
(lucky bag) sales, shoppers with little black bag
receive a mystery bag with a selection of fashion
and beauty products every month. They then
have a week to trade with other users to make
their perfect collection. To further increase the
excitement, selected bags contain prizes worth 4
to 5 times the value of the bags.
little Black Bag: take or trade
(R)etail (R)evolutionwww. t rendwatch ing . com 41
eXcluSive e-XPeRienceS
Online, everything is available to everyone, so
the story goes. Yet for consumers, anything
scarce or exclusive instantly makes it that much
more attractive.
Flash sale sites have played on this for years,
with sites like vente-privee and gilt limiting
access to members only, even if membership
Fashion PR firm KCD launched Digital Fashion
Shows at New York’s Fashion Week in February
2012. The site hosts virtual fashion shows,
streamed only to invited guests.
has simply been an email address away.
Now a number of brands and entrepreneurs
are seeking to introduce true e-commerce
exclusivity, and thus tap into consumers’
desire for unique or memorable experiences
(and the great StatUS StorieS that come
with them).
icB: invite-only digital fashion show
Swedish rapper Adam Tensta released his latest
single ‘Pass it On’ via a Facebook app. The catch?
Only one copy of the track exists, and users are
required to sign up to join the queue to listen to
it. Once they reach the front of the ‘queue’, users
have one hour to listen to the track.
adam tensta: Pass it on
(R)etail (R)evolutionwww. t rendwatch ing . com 42
November 2011 saw daily deal site gilt Groupe
offer members the chance to rent a Virgin America
Airbus A320 plane (seating up to 145 people). The
deal was priced at USD 60,000, and individuals
could choose a name for the plane and have this
painted on the side of the Airbus.
Gilt Groupe offers deal on airplane rental
Celebrity chef Heston Blumental’s Fat Duck
restaurant is famous for its immersive experiences,
and from February 2012, diners who succeeded
in getting a reservation received an email inviting
them to view an exclusive animated stereo
experience. The link could be accessed four times
only.
Fat duck Restaurant: Kid in a Sweetshop experience
eXcluSive e-XPeRienceS
(R)etail (R)evolutionwww. t rendwatch ing . com 43
Even in this monster Trend Briefing, with its four big themes and various
sub-trends, we’ve only scratched the surface of (R)ETAIL (R)EVOLUTION:
content commerce, celebrity curators, Facebook’s ‘want’ and ‘own’
buttons, shopping from the newsfeed, paying with tweets, cash on
delivery, online pop-ups and more were left on the cutting room floor.
But our biggest challenge? Trying to stick to just ‘e-commerce’. Because, as
we showed in our Trend Briefing on retail reNaiSSaNCe (and touching
on it again here in e iS For eVeryWHere), all shopping increasingly
takes place within an e-commerce ecosystem that includes not just online
and offline, but mobiles, tablets and TVs too.
iMPlicationS
Hence (R)ETAIL (R)EVOLUTION: all commerce is being affected by
e-commerce, and in return e-commerce will be affected by the same
general trends that define consumer behavior across all mediums, online
and in traditional retail.
So keep watching, keep learning, and most importantly keep (or start!) doing!
In the meantime, we’ll be hard at work on our next Trend Briefing! Make sure
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ANDREA THORN
Head of Client Services
AbOuT us
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