Jim Dion - Airport Revenue News Conference 2008

THE FUTURE AIN’T
WHAT IT USED TO BE
a presentation by
James Dion
BE CAREFUL WHAT YOU PREDICT!
• “Sale Heroin” – increasing the dose to get
the shopping fix
• Save 25% is the new Save 10%
• Soon it will be 100% off and we will give
you $10 to come in!
• Guess what?
RETAIL IS GETTING HARDER
40
36
32
28
24
20
16
12
8
4
0
Retail Space Per Capita*
40.5
7.9
1972
2007
Declining Retail Sales per Square Foot
(Constant 2000 Dollars)
290
260
270
250
195
230
210
190
170
150
1970
* Includes all retail space, not just shopping centers
1975
1980
1985
1990
1995
2000
2007
SOME TOUGH REALITIES
• The big are getting bigger
• Competition is coming from
–
–
–
–
–
–
–
Other stores in your category
Big chains & category killers
The Internet (eBay)
Overseas (Tesco, H&M, Zara, Diesel, Mango…)
Catalogs
Direct marketing
TV – coming, fully interactive TV
GLOBAL RETAILING – THE INVASION CONTINUES….
AND THESE GUYS GET IT
•
•
•
H&M perfects “Fast Fashion”
Instead of 12 deliveries with 24 – 48 of a
style, it is now up to 104 deliveries with 6
– 12 of a style
Buy it now, or it is gone
CUSTOMERS ARE INCREASINGLY
CHALLENGING
• The customer of today is not the customer of yesterday
• They are increasingly:
–
–
–
–
–
–
Time poor
Better educated, skeptical, cynical & demanding
Quick to complain and slow to forgive
Fragmented & unpredictable
Sophisticated yet local oriented
Want it fast, now and cheap or a really exciting
product/experience – not much in between
RAISING THE BAR
10
10
10
7
7
3
1995 2005 2015
What rated a 10 in 1995 is a 7 in 2005 and a 3 in 2015.
What rated a 10 in 2005 is a 7 in 2015.
Source: Hug Your Customers – Jack Mitchel CEO Mitchel/Richards
The world is not standing still. Everyone is innovating. You have to
continuously raise the bar just to keep up
WHAT DRIVES CUSTOMERS CRAZY
Topic
Percent
Employees don’t know/care
21%
Understaffed
21%
Bad customer service
20%
Rude employees
19%
Staff no help
19%
Cannot find help
15%
Store policies
10%
Hires low pay/benefits staff
9%
Store presentation
2%
Expensive
1%
Other
21%
Source: Stores Magazine, June 2007 BIG Research
•
•
•
Pricing did not top the
list
Nor did out-of-stocks
Or, product complexity
WHAT TO DO?
This is NOT what we suggest!!
BUT RATHER…
• In economies of abundance it is all about shopping for
experience & excitement
• You may not be able to own a category, but you can own
an experience that will excite your customers
BEST EXPERIENCE RETAILERS
•
•
•
vs.
$1.25
$4.00
•
•
•
Third-place positioning
55,000 unique beverage combinations
13,168 locations worldwide – 5 new
locations open each day
The consumer never needs to go out
of their way
Averages nearly 1,000 visitors per
location per day
Commanding a premium for a
commodity
BEST EXPERIENCE RETAILERS
• $4,032 avg. sales per sq. ft. (Best
Buy: $930)
• New standards in customer
experience
• Genius Bar
• Free education programs
• Unlimited product access
• No products are under glass
• Customers can “test drive”
new products
• Moving beyond computers
Apple
NOTICED THE SHIFT?
$$$
$
Commodity
Service
Experience
BEST EXPERIENCE RETAILERS
•
•
•
•
•
•
•
Abt Electronics
The “Bellagio” of Retail
1 Store (350,000 sq. ft. showroom +
warehouse)
$360M sales in 2006
Store-within-a-store concept Apple, Sony, Bang & Olufsen and
Sub-Zero
Present products in a simulated
lifestyle environment
5 million 22,000-square-foot design
center leased to vendors
Customer’s lure is
completeness…it's not going to
be a wasted trip
BEST EXPERIENCE RETAILERS
•
•
•
•
•
•
•
•
•
Costco
2nd-largest general merchandise
retailer in the US
12.17 stock turn
No more than 14% markup on
branded items
No more than 15% on private-label
items (Sinegal’s cardinal rule)
$485M seafood sales
$26.3M prescriptions filled
96,000 karats of diamonds
Mass with class
Treasure hunt excitement
BEFORE WE START….
1.
2.
3.
4.
5.
The aging of North America
The increasing importance of Gen Y
The growth of the Hispanic population
The rich are getting richer
The plus size market is getting bigger
….we need to learn about DEMOGRAPHIC CHANGES
POPULATION PYRAMID
THE SENIORS
•
•
•
•
•
•
65 and over
12% of the total population in 2006
Growing to 71.5M by 2030 – 19.6% of the total population
By 2030 1 in 5 Americans will be over 65
86.7M by 2050
Most of them will live another +25 years
VERY WEALTHY
• Hold much of the wealth in the country
• The fastest growing segment on the web
• Spend 3 times as much as the avg. consumer on the
internet
• Spend most on travel and leisure activities
WHAT THEY LIKE & EXPECT
•
•
•
•
•
•
•
•
•
Self-sufficient
Familiar with hard work and sacrifice
Used to a conformist society
Maintain a respect for institutions and
authority
Exhibit strong brand loyalty
Like advertising that recognizes them
for what they are and what they’ve
achieved
Luxury and self indulgence don’t
appeal to them
Also don’t respond to a product that
is over-hyped
They think of themselves as more
altruistic than self-serving
The Big Opportunity? Retailers who meld shopping and
entertainment or shopping and travel
THE BOOMERS
•
•
•
•
Between 44 and 62 years old
78M
37% of US households are headed by a Baby Boomer
Every minute, from now to 2014, seven boomers will turn
50
• 30% of them are or about to be empty nesters this year
The largest generation in history
HAVE REDEFINED AGING
•
•
•
•
•
•
•
•
•
First generation to make being older a ‘cool’ thing
Healthier and wealthier
Have more free time
Live longer
Want to live more able-bodied lives
Society has changed to conform to their expectations
Expect to always “have it their way”
Because of their huge numbers, they’ve had to
compete with each other for success
Invented the personal computer but most did not start
using PCs until their 20s or 30s
A GOLD MINE FOR COMPANIES
• Wealthiest generation in the history of the world and
will be for the next 30 years
• More than half have income over $100K
• More than 1/3 of this population experiences a + $10,000
increase in discretionary income when the kids leave
• Have a cumulative $2.1 T bankroll to invest
• Gen X & Y will likely be the first generations to not
surpass the one before
A GOLD MINE FOR COMPANIES
• Spend a lot – within 2 yrs., they will spend at least a
trillion dollars MORE than all the people under 45
• Pay higher prices for brands they like and for better
quality or experience
• Have ever increasing expectations about service &
brands
• Are very open to trying new brands or new
experiences
• Retired Boomers spend 9 hours a day online – 1 hour
more than their working counterparts (Albuquerque Journal)
WHAT THEY BUY
•
Real estate
– More and larger homes
– Vacation homes
– Remodeling and expanding existing homes
•
•
•
•
Health care
Financial Products
Travel
Clothing
– $41.8B in 2006 (Women 45-54 spend $20B a year)
•
Toys
– One-fourth of all toys purchases are made by grandparents
– Grandparents spending extravagantly on their grandchildren
– $30B a year or $500 per grandchild
WHAT THEY WANT & EXPECT
• More ethical behaviors
• “Less offensive” marketing
• Concerned about the environment – companies that
embrace green initiatives have their approval vote
• Shopping experiences like the ones they had earlier
in life
– Someone who would know their name
– Their favorites product
– And would remember the last time they were in the store
The Big Opportunity? Boomers will be the hottest demographic of the next 20
years. With time and money on their hands, they will change the face of America,
shaping it to their needs and wants
GENERATION X
•
•
•
•
•
•
•
•
•
Born from 1965 to 1983
60M – smaller than the Boomers and
overshadowed by them
Mistrust institutions – lived through divorcing
parents and corporate downsizing
Media tastes shaped by cable, TV, CDs and
VCRs
Internet played a big role in their life
Value adventure, new experiences, selfactualization and a bit of irreverence
Frequently are ‘social activists’
Want the truth and authentic products
Not easily fooled
OUTSPENDING THE AVERAGE BOOMER
• Eager consumers and if they move up the career ladder
they spend aggressively
• Gen X men buy more luxury goods than Boomer men
– 60% more on cosmetics and perfumes
– 33% more on entertainment
– 17% more on personal and health services
(The American Express Platinum Luxury Survey)
They now have the money that they did not have as kids
AT THE CUTTING-EDGE OF TRENDS
•
•
•
•
•
•
They try new products far more quickly than previous
generations
Will pay more for quality and experience
They want the product to be customized so that it expresses
their ‘personal style’ (64%)
30% more likely to reward themselves with luxury items
Home buying and renovation is topping the list of their expenditure
(more than the Boomers on an individual basis)
Prefer to have what they want now and not save for the future
The Big Opportunity? Businesses that use customization and personalization
will win big with Gen Xers
GEN Y
•
•
•
•
•
•
•
•
Born between 1984 and 2002
More than 76M
Rivals its parents & grandparents
generation in size, in almost every other
way, it is very different
More racially diverse: 1 in 3 is not
Caucasian
1 in 4 lives in a single-parent household
3 in 4 have working mothers
Boomers are still mastering Windows 98,
while their kids & grandchildren are
tapping away at computers in nursery
school
Respond to humor, irony, and the
(apparently) unvarnished truth
Have never known anything but seemingly boundless prosperity
TECHNOLOGY EMBEDDED INTO
THEIR DAILY LIVES
• Technology not just at their fingertips – it’s an extension
of their fingertips
• Cellphones, iPods, and portable electronic games are
not luxury items – they are ‘essentials of everyday life’
• Besieged with information overload
• Incredibly savvy consumers
• The offspring of indulgent parents – are idealistic,
impatient and involved
• Focused on building relationships
• Live in a world of hyperspace that includes blogs,
text messages, and a presence on MySpace,
Facebook, and other networking sites
SPEND THEIR PARENTS’ MONEY
• Shop online
• 1 in 9 high school students has a credit card co-signed
by a parent
• One-third of recent college graduates in was at least
$20,000 in debt (Synergistic Research Corporation in
Atlanta)
• Grow up with little knowledge of money or how much it
costs to live
• Live in a truly disposable culture
• Technologies need to be replaced every few months
• Few high-tech gadgets are repaired these days
WHAT DO THEY LOOK LIKE?
•
•
•
•
•
•
•
•
•
•
•
Are natural team members - used to
working with others
Few see themselves as ‘loners’
Want results
Like to know how they’re doing
Seldom read directions
Learn by doing
Gamers and crave rich multi-media
environments
Communicate with others anywhere,
anytime through electronic means
Few of them are interested solely in work
Expect to earn more than their parents but
don’t want to work 80 hours a week
More confident and outspoken than
previous generations
AN ON-DEMAND WORLD
•
•
•
•
Like to customize everything
Avid multi-taskers
Strive to make efficient use of time
Are in a hurry and don’t like to wait
The Big Opportunity? Convenience: get what they want how and when
they want it … … … at the touch of a button
ETHNIC AMERICANS: A NEW DEFINITION OF
DIVERSITY
•
•
A record 37.9M IN 2007 (legal and illegal)
1 in 8 U.S. residents, the highest level in 80 years
–
–
–
1 in 21 in 1970
1 in 16 in 1980
1 in 13 in 1990
US MINORITIES BECOMING THE
“EMERGING MAJORITY”
•
•
55M Hispanics by 2010
Median age will be 28.8 vs. 37.6 for the total population by 2020
FUELING THE US GROWTH
SOME MAJORITY MINORITY CITIES
THE HISPANIC MARKET
IS REALLY 20 MARKETS!
Mexican
Spanish American
Spaniard
Puerto Rican
Cuban
Spanish
Dominican
Venezuelan
Uruguayan
Costa Rican
Guatemalan
Not elsewhere classified
Honduran
Peruvian
Nicaraguan
Paraguayan
Ecuadorian
Colombian
Chilean
Bolivian
Panamanian
Salvadoran
Argentinean
Bolivian
Argentinean
Salvadoran
Panamanian
Nicaraguan
Honduran
Mexican
Cuban
Chilean
Colombian
Ecuadorian
Puerto Rican
Paraguayan
Guatemalan
Peruvian
Costa Rican
Uruguayan
Dominican
Venezuelan
Spaniard
Spanish
Spanish American
Not elsewhere classified
MINORITY SPENDING GROWTH
•
•
Minority spending
power has doubled
over the last decade
and is now over $1T
Many can be effectively
reached at less cost
than mainstream
consumers
–
–
–
Live in well-defined
areas
Consume welldefined media
Shop in certain retail
outlets
Source: The Official Guide to Racial and Ethnic
Diversity, Third Edition
LOYALTY TO A BRAND/PRODUCT/SERVICE
70%
64.4%
60.6%
60%
48.7%
50%
40%
35.2%
30%
19.7%
20%
10%
0%
Hispanic
African-American
Asian
Non-Hispanic White
National
Source: CNW Marketing Research & McDonald Marketing
The Big Opportunity? Retailers who cater to them can expect great loyalty
DIVERSE CUSTOMERS’ BUYING POWER
THE RICH ARE GETTING RICHER: THE
GLOBAL RISE OF THE HNWIS (2006)
• 8.3% increase in world HNWIs to $9.5M (net assets of at
least $30M*)
• 11.3% increase of the ultra-HNWIs to $94,970 (net
assets of at least $1B*)
• 11.4% increase of the wealth of the world’s to $37.2T
2007 World Wealth Report by Merrill Lynch and Capgemini
*Excluding their primary residence and consumables
UBER PREMIUM IN THE US
Who’s not a millionaire these days!?
QUITE A MARKET!!
• $400B in sales
• $1T by 2010
• Grown more quickly than other markets
– 20-30% revenue growth
– Versus 4-6% increase of mass market segment over 10 yrs.
The Big Opportunity? Products and services that make them stand apart
PLUS SIZE MARKET:
A GROWING SEGMENT
80.0%
74.3%
69.9%
70.0%
65.5%
60.0%
50.0%
41.8%
40.0%
35.5%
31.5%
30.0%
20.0%
10.0%
0.0%
2004
2010
Overweight
2020
Obesity
Source: The Berkley Electronic Press
WHO ARE THEY?
• Not just people in low-income
neighborhoods
• Obesity rates rising most
rapidly among urbanites
($60,000 or more income per
year)
TWO WAYS TO CAPITALIZE ON IT
• Sell them products and services to
lose weight
– $49B industry
• Produce and sell them plus-size
and big/tall products and services
to help them LIVE WELL, FEEL
GOOD AND LOOK GOOD
– A new and largely untapped market
opportunity
– Guilt-free attitude
– Accommodate, even celebrate, the
overweight American
NOT JUST PLUS SALES, PLUS LOYALTY,
TOO
• Catering to larger customers isn't
just increased sales but also loyal
customers
• Plus-size consumers are not as
price-sensitive as their slimmer
counterparts
The Big Opportunity? Retailers who understand that money is not an
issue, delivering them what they need is
WHAT DARWIN REALLY SAID…
“It is not the strongest
species that survive, not the
most intelligent but the ones
most responsive to change”
(Charles Darwin)
CATCH THE NEXT WAVE
BEFORE IT CATCHES YOU
"A new era of airports has arisen and
the general public needs to be aware
of how important their airport is to the
economic well being of their
communities"
(Airport Revenue News President & CEO Pauline
Armbrust)
THE NEXT WAVE
Trends and examples of companies/brands already using them are your
ammunition and inspiration for new concepts, goods, services and
experiences for your customers
HOW TO APPLY?
1) Vision
2) New business concepts / ventures
3) New products, services, experiences
4) Marketing, advertising, PR
EXPECTATION ECONOMY –
THE CROSS INDUSTRY APPROACH
Who’s setting your customers’ expectations?
CUSTOMERS SHOP HORIZONTALLY
Every industry has its own ‘innovation competence’
HAPPYNOMICS
•
•
•
What makes human beings and therefore your customers happy?
University of Minnesota researcher David Lykken: about 50% of
satisfaction with life comes from our genes
The rest is subject to our voluntary decisions and attitude… and the
influence of marketers and retailers
So let’s focus on the 50% of happiness that human beings
can completely control
BLING ENDURANCE
Coveting all things bling, craving in-your-face brands in mature consumer
societies and emerging middle classes
AND IF YOU CAN’T AFFORD TO BUY
Diamonds, just for one night
http://www.bagborroworsteal.com
Rent anything
AND IF YOU CAN’T
AFFORD TO BUY: LUXE FOR LESS
ERIN FETHERSTON: $9-$90 (Zooey Deschanel, Kirsten Dunst)
ROBERTO CAVALLI: $50-$400 (Jennifer Lopez, Victoria Beckham)
PLANNED SCARCITY
Toyota Scion limited edition cars
STATUS DESPAIR
Anyone seems to have
access to anything!
UBER PREMIUM - FLAT LINE
More
o
r
P
e
p
s
ir ty
Satisfaction
Less
Satisfaction has not increased, despite the growth in
prosperity. We may be nearing the UBER PREMIUM
ceiling, from a consumption point of view
Time (1950-now)
STATUS DESPAIR
With so much wealth around the world, wealth becomes
relative
CUSTOMER EXCITEMENT
1. REAL
2. BEST
3. STORY
4. UNFIXED
5. TIME
6. GREEN
7. DOMAIN
8. ONLINE
9. (R)ETAIL
10. ASSIST
11. PARTICIPATE
Excitement comes in many flavors....11 to be precise
TREND #1: REALLY REAL
Trust drives sales, authenticity is what counts
CAN’T FAKE IT ANYMORE
• Product safety issues
• Lack of trust in corporate ethical behaviors
• Unauthentic companies no longer can get away with
their fakeness
WHY CAN’T THEY?
• The Web
• Delivering “Total Transparency”
• Opinion Transparency, Recommendation Transparency
and Problem Transparency are just the beginning
Exposing the fake, untrue, phony & the scripted
REALLY REAL
They love me...
EXPOSED
They love me not. COULD THIS BE YOUR STORE?
EXPOSED
There’s no escape. COULD THIS BE YOUR STORE?
MORE EXPOSED BRANDS ON…
How much of a YouTube world will the future really be? I think we haven’t
seen anything yet!
AND GOOD OLD PRICE
TRANSPARENCY
Put http://wml.froogle.com/
in
XML
(Extended Markup Language)
your cell+phone
browser
and then
Cell/PDA
Wireless/Froogle
key in a UPC
code
and
watch
what
Total Price Transparency
happens!
= Big Trouble for Retailers!
TREND #2: BEST OF THE BEST
The best excites almost all consumers
JUST FOR THE RICH AND FAMOUS?
One generation’s indulgence is the next’s necessity
EXPECTED & AVAILABLE
• Hunt for The Best Of The Best
• Fueled by Expectation Economy
– Transparency of quality standards
– We are all experts in the art of competitive analysis
• And the Global Brain
– An avalanche of interesting, well designed goods and services
from all over the world
In a sea of sameness, who really cares for the middle of the
middle? DO YOU? DO YOUR CUSTOMERS?
ARCHITECTURE LEADING THE WAY
• Example of the Expectation
Economy
• Consumers will expect
similar design, services
and branding innovations in
other industries too
Shenzhen Stock
Exchange
ARE YOUR STORE, PRODUCTS & IMAGE THE BEST OF THE
BEST?
UPGRADE ANYTHING
• Brands redesign or
reinvent themselves
• Appealing in new ways to
consumers
• Consumers may not be
buying more
• But they are spending
more, replacing what they
already own with higher
quality products
• The Benefit? Higher
margins
Is this a bank?? What can not be upgraded?
CAN YOU RECOGNIZE THIS?
WHAT IS IT THAT YOU CAN UPGRADE IN WHATEVER YOU
ARE DOING NOW?
DEMOCRATIZATION OF DESIGN
Samsung’s: design can and will change anything and
everything
IN AN UPGRADED EXPERIENCE
ECONOMY…
The package is part of the ‘experience’
WHAT’S BETTER THAN ONE
BEST OF THE BEST BRAND?
How about two or more BEST OF THE BEST brands? Philips
+ Swaroski
BRANDED BRANDS
Philips + NIVEA / Bosch + Kraft + Starbucks
EDITED/DESIGNED/CURATED BY
Branded Brands when one of the brands is a human being H&M + Viktor & Rolf & Madonna
SAMSONITE BLACK LABEL COLLECTION
Samsonite + Alexander McQueen
BEST OF THE BEST BECOMING NICHE
To not be like the Joneses, Müllers or Li’s
UBER OBSCURE
CAN YOU DELIVER THAT TO YOUR CUSTOMERS?
TREND #3: STORY
Consumers telling their stories, companies telling stories
WHAT IMPRESSES YOUR FRIENDS?
Hunwear T-Shirts
MILK THAT IS A RICH SOURCE OF…
...stories – local is authentic, trusted, eco-friendly, quality. IS YOUR
STORE/ARE YOUR PRODUCTS/YOUR SERVICES/YOUR PEOPLE
TELLING A STORY?
A STORY ABOUT ME, MYSELF AND I
MECONOMY equals story
AN EXTENSION OF YOUR PERSONAL
STYLE
Sticars and MyDNA Fragrance telling a story
STORY INGREDIENTS
TAKEN TO THE NEXT LEVEL
Is it truly organic? Is it truly eco-friendly?
TREND #4: UNFIXED
When using is better than owning – life ‘on-the-go’
MUSIC & COMMUNICATIONS ON-THEGO
JanSport’s LiveWire – Levi’s RedWire DLX iPod Compatible Jeans
– Marriott’s digital connectivity panels
LUXURY BRANDS
JOINING THE FRAY
Ermenegildo Zegna’s Solar Jacket and iJacket. ARE YOU
JOINING THE FRAY, TOO?
TREND #5: TIME
Is the new currency
SAVING TIME
Speed Die Edition and Mix Channels
DOWNLOADING MUSIC AT STARBUCKS
Apple and Starbucks
FOR BUSY ALL OF US
Sockscription, chocoscription, brushscription. HOW ARE
YOU SAVING YOUR CUSTOMER TIME?
TREND #6: GREEN
Is climate change real?
THE EVIDENCE
Source: www.coolchain.org
An inconvenient truth
THE SOLUTION
Bart Simpson Drives A Prius
Green everything
GREEN BUILDINGS
Eco-embedded into our lives
GREEN CITIES
Abu Dhabi - first “zero carbon, zero waste” city
GREEN COUNTRIES
“By 2021, Costa Rica's 200th birthday, we will be a carbon neutral country”
- Costa Rican President Oscar Arias
GREEN HOMES
DIY eco-services truly embedded in our lives – DIY solar
energy
GREEN PRODUCTS
At 2006 New York Fashion Week, upscale retailer Barney's teames up
with the environmental organization Earth Pledge to present
FutureFashion, featuring clothes with ecological benefits. Designers
include Diane von Furstenberg and Oscar de la Renta.
Retailers touting their green products for the holidays. ARE
YOU?
GREEN AWARENESS
ECO-EMBEDDED INTO OUR LIVES: “CARBON ZERO”
CREDIT CARD
Carbon Zero credit card – embedded thinking
GREEN REGULATIONS
PlaNYC 127 proposals – reducing taxicabs carbon emissions
HOPPING ON THE GREEN BUS….
...in an effort to do the right thing and drive profits. HOW
ABOUT YOU?
THE ECONOMICS
• This is the age of the environment
• Consumers are increasingly concerned about it – from
28% to 41% in the past 4 years
• $230B in annual sales to 60M educated and affluent
consumers
• $17B VC investments in green technology by 2009
• Trillions of dollars in economic opportunity and prosperity
for companies and individuals globally
The next engine of economic growth
A WIN-WIN STRATEGY
• Do the right thing
• Stay competitive – become a
leader or risk falling behind
• Attract eco-friendly consumers
• Showcase another “green”
category while maximizing other
sales
• Provide superior performance at
a lower cost
Green is the new Black
TREND #7: DOMAIN
Consumers' homes will forever be their castles, their
cocoons, their most prized possessions
PROFESSIONAL GRADE
PRODUCTS…
...right at home
SUPERIOR INSPERIENCES
Will the coffee at the bar rival this? Insperiences setting
experience expectations. WILL YOUR STORE/PRODUCTS
RIVAL SUPERIOR INSPERIENCES?
TREND #8: ONLINE
Online ‘oxygen’: exciting more than 1 billion consumers
MISSION CRITICAL
• Retailers still spend too little on technology
• Average spending as an industry is less than a third of
Insurance, Banking, Transportation and Manufacturing
• Technology is no longer a nice to have, it is an absolute
requirement for survival
• It helps in reducing expenses, increasing productivity
and in serving customers
INTEGRATED INTO EVERYDAY LIFE
• Cell phones are becoming multi purpose devices
– In Japan they are replacing the PC
• Wireless everywhere & everything
• Consumers will demand compatibility and
interface with companies’ retail systems
THE FOURTH CHANNEL
• $5B spent on mobile media
content in the 2nd quarter of 2007
• 40% txt messaging-downloads and
the purchase of items
TICKETS NOW, BUY.COM, MOOSEJAW MOUNTAINEERING, FTD, BEST
BUY & GODIVA are all doing it. ARE YOU?
TECH CONQUERING MIND
AND HEART SPACE
And it’s not just the young; the old, too
1 BILLION PEOPLE IS JUST THE
BEGINNING
Online access for the masses
THE MOBILE PHONE REVOLUTION
2.7B mobile phones
3.3B worldwide users by 2011 (47.9% in Asia-Pacific)
Nearly 1 in 3 mobile subscribers will have a broadband connection by 2012
Over 1B phones with online access by 2012
TREND #: 10 (R)ETAIL
Amidst the Wal-Martization of Manhattan, the blandness of the High Street,
the mallfication of BRIC nations, plenty of innovation in (r)etail. IN YOUR
STORE, TOO?
RETAIL RENAISSANCE
UNIQLO UT (Tokyo) – futuristic convenience store for t-shirts.
CAN THIS BE YOUR STORE?
RETAIL UPGRADES
VivoCity, Singapore upgraded mall
BIGGEST RETAIL RENAISSANCE IN
2008?
How about...ecommerce?
TRYING OUT PRODUCTS
Let avatars do the work – scanning your body for the perfect
fit
ECOMMERCE: TWINSUMER
“I want to be just like you, live like you, shop like you”
ECOMMERCE: MIMICKING
THE IN-STORE EXPERIENCE
Zoom-in functionality. CAN THIS BE YOUR SITE?
ECOMMERCE: TEMPTATION
Luscious photography and design. WILL YOUR CUSTOMERS BE
TEMPTED BY JUST LOOKING AT YOUR PHOTOS?
ECOMMERCE: SERVICE
Help desperately needed! DO YOU OFFER IT?
ECOMMERCE: DELIVERY
The Achilles’ heel...no more. HOW DOES YOUR DELIVERY
SERVICE COMPARE?
ECOMMERCE: GROUPINION
Connect live with your online friends while you shop
TREND #11: ASSIST
Looking for the authentic, the practical, the exclusive and to
make life more convenient - Brand Butlers
BRAND BUTLERS
The key to loyalty? ARE YOU TAPPING INTO THIS
OPPORTUNITY?
UNUSUAL PERKS
Good PR for Carpisa and Aurora Assicurazioni
TREND #11: PARTICIPATE
The Global Brain: Wikipedia, Citizendium…
MINIPRENEURS
P2P Banking – $1B loans by 2011???
CUSTOMER-MADE
Staples Invention Quest. COULD YOU DO IT TOO?
FOREVER TRENDS
Pay respect to boomers, women, gays, and so on
Thank You & Stay In Touch
“The Future of Commerce”
Dionco Inc. Chicago
www.dionco.com
(312) 673-0187
jimdion@dionco.com