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Globalisation and Consumerism in Urban RetailThe Retail Institute Symposium
Andy Lima
12th October 2106
Urbanisation and Consumerism “…the distinctions between physical and online are quickly vanishing turning the world into a showroom without walls” – Jolfsson B and Rahman (2013)
The Challenge of Mega-cities
two-thirds of the world’s population will live in cities.
World Populationnow lives in Cities
Cities such as: Tokyo, Jakarta, New Delhi, New York, Beijing, Shanghai, Sao Paulo, London,
55%203
0 Rise of Mega Cities29 mega-cities boast 10m
ormore people, accounting for7.2pc of humanity.
People currently living in our planet, the World’s Population isExpected to raise to 8 Billion by 2025
7.2Billion
“Who are these people?”
adults in theUK 20 to 34living with
parents
Global increase in number of people living alone between1996-2011
The idea of families being based around a married couple does not hold true in Europe which has the highest rates of cohabiting family groups.
80%
What is a normal Family?
The average age of amother giving birthin England and Walesin 2012 was 29.8years the highest.
20133.3 million
Family sizes and fertility rates are decreasing globally. EU average was 2.3 in 2013 down from 2.4 in 2010
Two Key questions:
Today’s urban consumers are more empowered than ever before – How is likely to affect retailers customer engagement strategy?
How can retailers better target audiences using new social technologies to build lasting remarkable experiences that seamlessly respond to customers needs across all channels? (Doing so sustainably)
Social Technologies Interplaying with Urbanism
Social Technologies Interplaying with Urbanism
“I want it all, I want it now…” – Queen.
“Selfie” and “Snap” moment culture.
It feeds the current hedonistic consumption life-style.
Fast pace life - adapt or die – Digital Darwinism.
Social Technology is becoming an extension of mankind whereas the smartphone is the operational system and communication interface.
66% are more likely to look up a store if they see a friend check in on social media.
The “Urbanites”“TOP DEFINITION urbaniteA person who inhabits one of the major cities in the world, aged between 17 and 44. An urbanite is an affluent consumer with an optimistic outlook on life that is very different from those who live in "small town" or rural areas.
Urbanites are both a subculture and a contemporary lifestyle. They have 6 key characteristics: Time-poor, city-proud, media-literate, brand-centric, trend-sensitive and culturally-aware.
Metro newspaper has listed the 10 "Great expectations" that above all else motivate and drive Urbanites:
01. Expecting to live a meaningful and experience-rich urban life. 02. Expecting to succeed in multiple areas of life (not just career). 03. Expecting to get substantial fulfilment from work (not just cash). 04. Expecting to be at the hub of a large friendship network. 05. Expecting the traditional ideal of "true love" in the modern world. 06. Expecting to have to "make time" in order to have and enjoy time. 07. Expecting to use debt to have what they want, and have it now. 08. Expecting to have a progressive government that delivers results. 09. Expecting to live in a pleasant "urban village" area of their city. 10. Expecting to live a responsible life as an urban consumer.”
Developments in Urban RetailingUnderpinning the current “state of things”
The Changing Face of Retail
Subscription Online Vending Drones
Click & CollectPop-UpConvenience
Mobile
“Humans have shorter attention span than goldfish, thanks to smartphones” – The Telegraph
Reshape and redistribution of wealth – new socio-economical and geographical focus.
1billion emerging-market consumers joining the middle classes by 2025.
Decline in ‘High Street’ and the rise of a ‘global’ connected consumer.
Urban consumers want total control, simple processes while still having multiple options.
Growth on all online platforms influencing purchase behaviour. Smartphones Changing Cities – stress relief from modern urban
living. Customer Experience Design is influencing everything from
communication channels to retail spaces, distribution and packaging.
Urban dwellers have extremely low attention span – too much to filter!
Developments in Urban Retail: Physical The Retail space is not the destination is only part of the journey. Stores are becoming disruptive challenging old conventions. Urban retail is personal it engages with the shopper in a 1-2-1
conversation. Caters for instant gratification and a ‘micro-moment’ culture. Build (in-store) collaboration. Embraces local while keeping a global outlook. Promotes social shopping (moving beyond transaction) –
immersive shopping. Spatial must also become conversational (story-telling: Content –
Context – Intent. The whole experience should be made into an epic story.
Burberry Strong multi-channel strategy, integrating online and offline to enhance brand experience across all touch points
Strong multi-channel strategy, integrating online and offline to enhance brand experience across all touch points. 60% of marketing budget into digital strategy.
‘Bespoke’ platform launched ArtoftheTrench.com launched Continued investment in flagship markets –
strengthening position in 25 cities that account for majority of retail sales.
DS / Citroën
First phase of their campaign reached over 36 million impressions and nearly eight million video views and had a 20% engagement rate.
Citroën adopted the “The DS Writer” concept which built on a five-episode web-based film series plus an exclusive novel written primarily for DS Automobiles by novelist Joël Dicker.
• Retail promotion through highly interactive pop-ups stores in partnerships with major shopping centres.
• Prospective clients are encourage to take pictures and post straight away in their Facebook page or onto their Twitter account.
DS has been positioned almost exclusively an urban brand. Facebook as the optimal channel to drive awareness and promote their
launch event across 39 countries.
Trends shaping urban consumption Urban retailers are consuming content and experiences, products and services are but part or the journey not the end of it.
Consumers behaviours and opportunities for Businesses
• Ingredient selectivity on the rise – in 2015, 35% of consumers avoided at least five separate ingredients or food attributes. In 2016, this number increased to 53%.
• ‘Green’ self-centred motivations – willingness to pay extra for natural and organic products that they see as having direct benefits to themselves and their families.
• Mobile will continue to dominate consumer technologies activities – in the past 12 months consumers have dramatically increased their daily reliance on smartphones; 58% of consumers in 2016 turn to their phones for at least five separate activities each day, compared with 34% in 2015. (i.e. – BMW mobile app)
• ‘Free-up time’ offers will drive consumer choices – Tech-enabled time-saving habits are fast developing and savvy brands are developing offers to enable consumers to save more time.
• Virtual and Augmented Reality – out-of-store applications would have the consumer virtually engage with the retailer at home, from another physical location, or even from a distance.
Consumers behaviours and opportunities for Businesses
• Glocalisation – Google, Facebook and others internet giants are investing in the ‘local’ area – Possum update, Facebook marketplace, urban champions such as Uber and Deliveroo delivering new innovative urban solutions.
• Rise of the iCustomer – a group defined by a digital, mobile, real-time, always-on lifestyle. (1) Mobile consumers look at their phones on average 1,500 times each week and they spend 177 minutes on their phone each day.
• Multi-screening for multi-tasking – according to (2)Mobify, 90% of consumers will use multiple screens to accomplish their goal.
• Attention Arbitrage – attention, not money, are becoming the most sought after commodity as well as the most difficult to gain and keep.
• In short, micro-moments open windows of “in-the-moment” opportunities when someone searches for something top-of-mind using the closest device to them.
• Urbanites are loyal to the brands addressing their in-the-moment of ‘need’ or ‘want’. (Google AI Assistant)
• Circular economy - Upgrading can lead to downgrading - As technology becomes cheaper, consumers will upgrade their products more often and throw out the old ones.
What does the future hold…a work in progress!
Thank you!
"Any urban trend that doesn't contribute towards a sustainable future will lead to our demise, and eventual obliteration.“ – Andy Lima
Contact
Andy Lima - Digital StrategistEnterprise and Training AssociateAssociate Researcher at TRI t. +44 (0)113 812 4793 e. [email protected]. +44 (0) 0773 209 503tw. @andylimauk
References • Euromonitor International (2016) Report Extract: Lifestyles 2016: New Survey Insights And System
Refresher. • Knox, P. and Pinch, S. (2013). Urban Social Geography: An Introduction. 6th Edition. Routledge.
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References • Peterson L., Doerschlag C. (2015). Stores: what now, How Do We Keep Physical Stores Relevant In The
Digital Age? WD Partners. Chain Store Age. • Berthiaume D. (2014). Predictions. Chain Store Age. • Consumer Lab Ericsson (2014). Smart Citizens: How the internet facilitates smart choices in city life.
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Publishing. Rachel Serpa, “Repaving the customer journey: preparing for the future of multichannel,” June 23, 2014, E-consultancy Blog.
• Stacey MacNaught,“Tecmark Survey Finds Average User Picks up Their Smartphone 221 Times a Day,” Tecmark, 2014.
• Solis, B (2016). Mobile is eating the world: Four ways to rethink customer experiences as mobile-first and mobile-only. Sitecore.
• The Economist (2015) The Conscious Urban Consumer. http://safecities.economist.com/articles/the-conscious-urban-consumer/
• Harvard Business Review (2016) Virtual and Augmented Reality will reshape retail. https://hbr.org/2016/09/virtual-and-augmented-reality-will-reshape-retail.
• Urban Dictionary. http://www.urbandictionary.com/define.php?term=urbanite&defid=2112693
