LIFE IN THE RETAIL SPACE

GREEN RETAIL RETAIL UNLEASHED www.thevalleygroup.com

KNOWS RETAIL NEWS FROM THE STREET

Things have been go go go at Valley HQ over the past few months with the launch of our new website, taking part in Ride London and our ever increasing global expansion. However, amongst all the chaos there has been one key retail trend that appears to be snowballing out of control and it is creeping up on retailers and marketers like never before… green retail. This trend is what we are turning our attention to in this edition of Life in the Retail Space. We’ve heard it before and we’ll hear it again- once more, the trend boils down to the james haggas fact that the customer is King and retailers are constantly looking for ways to talk to the customer and meet their ever-growing needs. Customers are increasingly making buying Evolution within the retail world has decisions that include a concern for the environment which in itself has transformed green had significant impacts on the way retail from a USP to a necessity should the retailer compete successfully in the long run. we as retailers or marketers compete. We have an extremely special edition of Life in the Retail Space for you this month with As such, we strive to remain ahead of features from the wonderful Ruth Harrison, Matt Lyons and of course, Kate Hardcastle. We trends in order to take advantage of them also have a chat with Jon Howland-Nielsen and take a look at what companies such as rather than succumb to their effects. This Ikea and Coca Cola are doing at the moment in News on the High Street. edition looks at a trend that has been around for a while but may have been slightly underestimated in regards to its long term impacts. My name is James and it’s my pleasure to welcome you to LIFE IN THE RETAIL SPACE- not only keeping you up to date with trends but also highlighting different views on innovative and exciting progressions within the retail world. www.thevalleygroup.com OCTOBER 2015 LITRS 3 But what can retailers expect to see a rise of in-store in regards to green marketing?

1. The use of Video with CSR into their purchase retailers are looking to offer 4. CSR initiatives in store POP decisions. Ultimately this persuasive and exciting promoted in store rather While in general retailers demonstrates that simply, shopper experiences there than product benefits will begin to adopt and consumers these days are is an undeniable need to 2015 will likely see an experiment with technology more attracted to retailers take control of the entire increase in retailers and innovative ideas, or companies that invest in value chain, from product launching ethical initiatives What’s In CSR schemes and initiatives. manufacturing to distribution companies are notably promoted in store. CSR trialling the implementation of and marketing. improves the shopping a number of video formats. EXAMPLE: experience in a number of are already known for Sustainability is not a static ways. It makes customers Store for Retail Visa used a four their support of British concept that is over after feel good knowing they’re EXAMPLE: part ‘shoppable’ YouTube Farmers but have furthered a sustainability report is contributing to a worthwhile video series to promote Visa this recently by backing written. Retailers are now cause, essentially it boosts Checkout- an online service British Wool licensee and beginning to develop long- shoppers propensity to Marketing? that allows users to store entrepreneur Kim Stead term sustainability projects spend the money in their their payments and shipping with her innovative reusable with short, mid and long- pocked by assuring them information. Using YouTube 100% British Wool shopping term goals and objectives. that the money they are shoppable video technology, bag. The new concept Goals require infrastructure spending is not going into In previous decades, being sustainable was largely linked a range of issues” and that “for retailers, CSR is inherent the audience can buy of “twool” wool bags has development in order one person’s pocket but is with extra costs, particularly in the short term. However, to their business strategy”. It is apparent, however, that products featured by clicking been a major investment for to achieve continuous truly making a difference over the past decade, corporate social responsibility CSR remains at the forefront of retailer’s strategic decision directly on the video. Stead, offering a robust bag improvement. Management somewhere in the world. has been gaining increasing momentum within the making and in a recent report sustainability experts from that provides a sustainable and IT systems for retail industry and an increasing number of companies 82 countries worldwide were asked to identify leading RESULT: Increased and biodegradable continuous improvement Evidently, the bottom line are looking for ways to emphasise their commitment companies integrating sustainability into their business consumer engagement alternative to commonly involve supplier scorecarding, is that it is all about the to environment and social goals. In recognising that strategies. The number of mentions ranked companies in and an inventive way of used carrier bags. management training, customer experience, so our sustainability is here to stay, the retail industry has seen an the following order… showcasing products even employee training, energy recommendation? Jump on undeniable shift from looking a sustainability and “green for the busiest customers. 3. Development of in reduction goals and regular the bandwagon as quickly store marketing systems sustainability reporting. as possible because these retail” as a cost center, to seeing it as an opportunity to 1. (38%) 6. Ikea (5%) reduce and manage risk, improve customer and employee 2. Increased use of and the value chain for trends are not something 2. Patagonia (12%) 7. Nestle (4%) relationships and ultimately deliver better products and a recycled materials continuous improvement EXAMPLE: Apple and you should be missing better service. 3. Interface (8%) 8. GE (3%) A survey by Cone Robin Lewis and Michael Ralph Lauren are both out on. Once again, the 4. Marks & Spencer (6%) 9. Nike (3%) Communications and Dark highlighted a key factor praised on their ability to customer is king. Within the retail sector of the UK economy the British 5. Natura (5%) 10. Coca Cola (3%) Echo Research recently to ensure retail success in manage the value chain Retail Consortium reported way back in 2005 that “CSR is uncovered that 87% of their book, The New Rules from pre to post purchase. increasingly providing a template for retailers to report on (Published in the 2015 Sustainability Leaders report) global consumers factor of Retail. They argue that if 4 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 5 Earth2Business Mrktg @Earth2BizMrktg What’s on Is a SEO A Accenture Retail Green Marketing Strategy or is Google Creating More Waste? @AccentureRetail luxecoliving.com/is-seo-a-green... We’re reading -> Procter & Gamble and Unilever adapt marketing empowered consumers gu.com/p/3m9dn/tw via to @guardian #brand #retail

Floating World @floatingmusic and #consumer ! #branding Sustainable #growth, a challenge both for #Retail Twitter? @SustainlTBiz via #marketing L JANSSENS, #GreenIT #Brand Says; It’s What It Does | @scoopit Isn’t What Your #Sustainability @impactMBA sco.lt/7pWpm5 #GreenMarketing

Cambium @cambiumllp Global Consumers Put Their Money Where Their Heart is ... #sustainability #csr #corpgov #marketing sco.lt/70klav #brands #retail

Procter & Gamble and Unilever adapt to empowered consumers Tim Linsday; Why have two holding companies relinquised their anonymity in their new advertising campaigns?

Sustainability Isn’t What Your Brans Says; It’s... Recently, at the 2015 Sustainable Brands Conference, I was struck by something Harvard Business Review contributor and author of “What Great Perx @getperx What’s a Brands Do,” Denis Yohn, showcased on the main stage. sustainable solution for retail Playing Your Cards Right: 3 Benefits of companies? Card-Linked ow.ly/18uMz Marketing Perx lists down the top 3 benefits of card-linked marketing through the intergration of American Express credit card with our mobile loyalty app.

My-Retail Media @myretailmedia Conscious materials H&M’s sustainable #environment bit.ly/1pK9T3X #fashion, with minimal impact on the

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@sustainableret SustainableRetailer, Sustainable Denim Become a Great Reality wwd.com/markets-news/d... #retail #feedly

Sustainable Denim Become a Great Reality The days of paying lip service to the eco-freindly denim movement are over.

6 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 7 What does it mean to be green and is now pioneering development and collate purchases and couriers to in this day and age? We have of eco-smart smart devices – a track, despatch and record deliveries, moved a far cry from lentil eating, collaboration between the University of our prolific use of smart devices surely hemp wearing eco-warriors of the Wisconsin-Madison and the Madison- demands that these are designed and late 80’s into a digitalised push based U.S Department of Agriculture produced in an eco-sensitive way and button fulfilment economy – by Forest Products Laboratory (FPL) have that other benefits are generated from Retail 2020 the conventional retail store developed the capabilities to generate their manufacture and sale that protect will be unrecognisable from the computer chips from wood-derived the word around us. homogenised high street of the materials, now this is smart! last decade, with same bland Much focus on the last 10 years has pile it high sell it cheap model – There are many wonderful examples centred on the retailer obligations – now stores are entertainment, of eco-smart sustainable designs, recycling efforts, eco store design, Ruth experimentation and education one such is LSTN Sound and House waste management, packaging Digital emporiums, the digital revolution of Marley have both designed and reductions and development of Harrison has borne a series of cyber- manufactured earphones made from biodegradable material. Surely now economies – with fewer physical wood – sustainable of course – these the focus should also be on the As Director of Retail Strategy at stores being built – this has to be beautifully designed ear pieces are employees and consumer to shop ThoughtWorks Europe, RUTH a good move for sustainability, not only aesthetically pleasing – they responsibly – use their purchasing HARRISON is a leading luxury less waste will be generated, also feature the most up to date digital powers to influence product design brand specialist with over 25 years’ less pollution, less traffic and technology for enhanced sound, and manufacture. With the popularity international market and multi- congestion as a result of the control and listening comfort. Why of BYOD (bring your own device) not channel experience. Possessing reduced need to visit bricks and do more retailers of technology not looking to wain anytime soon, the a strong background in UK blue mortar store locations. follow suit – there is a an opportunity impact of smart devices on society chip organisations, she has held here for Apple (and others) to lead the and the need to address sustainable senior executive operational However with this digital charge on sustainable technology, as manufacture and retail is one that and commercial roles within the transformation we must caution: a retailer and as one of the world’s will no doubt become an issue for consumer goods and services sector instead our purchases will be selected largest producers of laptops, tablets governments to consider with tax at John Lewis Partnership and and packed for despatch in dark and mobile phones, surely this is a no penalties for non-compliance and House of Fraser, and most recently stores, couriered to us at a chosen brainer? relief for those retailers seeking to find Selfridge Group and within the time, to which ever location we prefer, sustainable methods to facilitate the highly competitive Health & Beauty all whilst generated and facilitated via How does this translate to sustainable digital retail revolution. sector at Elizabeth Arden, Body smart devices; phones and tablets. retail? *Gartner have researched Shop and Estee Lauder Companies. Now this is indeed quite amazing, yet and claim that by 2020 there will be I am sure I am not alone desiring a Ruth is also a European Advisory with new release versions of smart 25 billion connected devices in use smart device that has an eco-friendly Board Member of Chief Marketing device numbers increasing to several worldwide, considering that over half design composition, a casing, created Officer Council Europe, regularly per year – what do we do with the of the purchases made by US and UK from sustainable materials and from contributing to research, informing mounting volumes of obsolete devices citizens online in 2014 was made on natural sources, with a biodegradable market leading industry publications in our midst? Hardly surprising the smart devices and those same smart infrastructure – rendering no harm to on marketing trends, analysis and millennial generation has already devices were used by warehouse the environment is also a smart way to considered this wasteful behaviour operatives to order generate, locate shop and do business – literally!

implementation strategies. Sustainable 8 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 9 Three Tips for the Matt Lyons Perfect Design Brief Matt Lyons is a leader in retail design, having worked for nearly

twenty years in the business on 1The ‘Anchor’ Let2 Me Tell You Don’t3 Forget the senior positions. He is passionate Definition What I Want! ‘Boring’ Stuff about the wide benefits that Project briefs can be long and So often clients find it impossible To often design briefs overlook design can bring to business complex and have too much to articulate what it is they want some of the key information that information for most of us to from a project; they’ll talk about the any design project needs to be and publishes about his views on keep in our heads at one time. solution rather than the problem, delivered successfully. Any brief design, innovation and creativity at A memorable, single statement and that can feel really frustrating. should include details about which sums up the project can costs and fees, a breakdown of Getting to the ‘problem’ is actually www.definitely-design.com keep the project from drifting expected deliverables and a quite difficult, and we should let away from the brief. It’s the time-plan for the project. and on his LinkedIn page. clients describe the issue in any fundamental ‘what are we way they choose. Isn’t it part of Sometimes, with very complicated really doing here’ question our role, as designers, to interpret companies, information about the and something to keep the that for the client? It can mean decision makers and approval project anchored. we have to work hard iterating the rights of key stakeholders is also I worked once on a project brief, but ultimately it should be valuable information to be shared for Opticians where defined in the ‘Response to Brief’, right at the start. the anchor was ‘let’s make produced by the designers. Over the years I have worked up hundreds of design briefs Most of the ‘difficult’ projects that the opticians consultation as with all kinds of project teams. I find that allowing the client to I have been involved with over the fun as a beauty consultation’. express themselves in a variety of years, have all come down to a lack This drove a design solution I’ve developed and refined the process I follow for developing ways, such as by defining ‘what’s of clarity over the fees, what the which was much less clinical, out there’ in the market and why expectations were for the project or design briefs, and I’ve learned a lot in the process. I don’t think improved customer interaction they like it, or ‘what ideas they late delivery; rather than anything to and generated a whole I’ve got to perfection yet, but I do have three suggestions that currently have’, is a great way of do with the creative output. different take on the look and getting the ‘solution’ expressed. It I think will help you get closer to the ‘perfect’ design brief. feel of the final design. These things might sometimes then reveals lots of clues that lead seem boring, but are essential for to the real problem. harmony in any design project!

10 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 11 TESLA MOTORS GOES NEWS Ikea goes MOBILE WITH POP-UP NEWS FROM THE HIGH STREET Green ATTRACTION FROM THE HIGH STREET Tesla Motors have created a new mobile pop up The shipping container was designed to be entirely shop designed in a shipping container that can be mobile and therefore, be able to follow customers around Ikea Group and Ikea Foundation have pledged €1 billion on loaded onto the back of a truck to travel around the the US to the summer’s most popular destinations. The renewable energy and climate change policies, particularly in US and be erected in minutes. convenience of the temporary design allows the company nations and communities most impacted by climate change. to introduce the Model S to audiences in locations where The pop up features; photographs of the Model S, a bricks and mortar stores have not been established at this The pledge builds on previously invested €1.5 billion which has place for customers to relax and talk to employees, a point, including Santa Barbara and the Hamptons. been used by Ikea to improve wind and solar power technologies miniature design studio where customers can see and since 2009. This investment coupled with others of Ikea’s green touch material and trim options, Tesla themed branded Tesla have suggested that they will be adding more stops initiatives has resulted in the company being on track to becoming merchandise and, of course, a top spec Tesla Model S car. to their pop up tour and have even hinted that the pop up’s energy independent / neutral - producing as much energy as it may be travelling our way, touring other key market areas consumes. in Europe- Keep an eye out! The new funding looks to help less well off communities to increase their resilience to climate change and adopt renewable energy technologies and initiatives across the community as a whole. Further to this, Ikea have announced the opening of four eco friendly stores in India, which will feature solar panels on the store roofs, and in car parks. Ikea’s carbon footprint will also be the focus of development, with partnerships with suppliers utilised to improve energy efficiencies. Ikea have identified the potential for huge savings, which, in turn, translate into enormous reductions in carbon dioxide emissions, demonstrating the dyadic benefits related to going green within the retail industry.

12 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 13 NEWS NEWS FROM THE HIGH STREET FROM THE HIGH STREET Coca-Cola introduce drink sampling taxis in London

In a bid to activate its Choose Happiness campaign, Coca-Cola are launching ‘happiness meters’ and a taxi based drinks sampling initiative across London this summer. Pimm’s reveals The introduction of ‘happiness meters’ across the city will see 300 displays turned into interactive quintessentially exhibits demonstrating Londoner’s happiness levels. The measurements are gaged using tweet sentiment technologies which measure the number British experiential of positive or negative words used on Twitter marketing efforts alongside the hashtag #ChooseHappiness. The digital campaign is supported by widescale sampling initiatives including; branded taxis which will be used to Pimm’s have unveiled a crazy croquet course in distribute samples of the drink and areas where consumers Heathrow’s Terminal 2, featuring obstacles including will be able to taste product varieties at major transport teapot-shaped hoops and rose bushes and finishing hubs as part of its Happy Tube Commutes initiative. Brand touches of grass and a white picket fence. Modern ambassadors will also be used to deliver Coca-Cola in features including laser-guided mallets and musical hoops cool bags to Londoners in communal areas and parks. are also featured in a bid to strengthen the game’s revival. The use of sampling of the different varieties of Coca-Cola The course was developed with the help of London’s croquet supports the One Brand strategy implemented earlier this club Croquet East, in a bid to revive the classic British game year, encouraging customers to choose which variation and play on Pimms’ quintessentially British branding. or variations are the ‘happy’/right choice for them. In line with this, Pimm’s have also created a travelling teapot bar which has stopped off at Wimbledon for the duration of the tournament. At the bar customers can sample new Pimm’s varieties as well as the more classic cocktails, and the design continues the British summer time branding.

14 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 15 Anya Hindmarch NEWS takes over NEWS FROM THE HIGH STREET Selfridges car park FROM THE HIGH STREET

In a bid to promote the brand’s AW15 runway collection launches a… Selfridges’ carpark has been transformed into The Anya wait for it… Hindmarsh Service Station, featuring a Little Chef snack bar, carwash photo booth, bumper stickers, car fresheners and personalised hi vis jackets- all exclusive to Selfridges. a pop up book store Not only does this showcase once more the brand’s unique identity and flare but also an exceptional example of experiential retail marketing.

The London store has been designed to represent Parisian literary cafes, with an intimate and comfortable atmosphere where customers feel at ease and therefore are willing to take their time and enjoy the shopping experience. French songs are also played to reiterate the chic Paris theme.

16 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 17 I broke the internet... The ongoing lovefest with the Kardashians big online fan. When it’s done right… So, as I speed and crew continues – a summer of Glasto, Cait from seminar to my next client, the only way for me to items, and nearly a month later – still awaiting goods and refunds. and oil slicked derriere’s. The truth is though, benefit from sale shopping is via my mobile, online. Of course, I have experience in the retail world and can as many UK multi channel businesses fail to stand up for my rights – but what about those who can’t. prepare – you might experience a bit of Internet With a big shopping list, I visit 5 National retailers and try to Investigating how many customers have taken to social breakage yourself… or a website, at least…or in order. A couple of sites are ‘ok’ – they have annoying glitches media and forums about similar experiences with the same my case, my tablet out of sheer frustration! – eg allowing you to browse, select and ‘add to basket’ before telling me it’s out of stock. A further site seems to retailers – I find the complaints are in abundance. I was born for Internet shopping, despite having a quite have some menu ‘mash-up’ problem where it’s search ‘hippy-heart’ – the ease, slickness and speed allow me Every year, the cost to the UK businesses due to poor customer facility becomes random – I presume due to sale traffic. The to “multitask” in an airport lounge, back of a cab, or service, grows. Is it really acceptable to survive as a business on a final two websites are so bad, I feel I have gone back in time. calm myself when I wake from slumber to remember I ‘take now’ culture? The wise brands know it’s not. Take a look at the need an astronaut replica outfit, aged 6, for Friday. They throw me out of the site, freeze and empty my basket new Harvey Nichols Rewards programme. It’s smart, intelligent and – is it Black Friday all over again? Hours later, then days later, it shows appreciation at every spend level. Allowing the customer to I am a champion for a real life, retail experience, and I manage to place some orders – which I will live to regret. sit in the driving seat, they can customise their own rewards, get daily save myself for the good stuff out of work. The places Over the following weeks we experience orders that never benefits like free coffees and smoothies, and link in their instagram. where it’s a joy to shop. But, day to day, awkward to arrive, items cancelled – but no funds returned, a bit of fraud find, and high demand times – eg Christmas – I’m a It’s the companies that celebrate and love their customers that will from one of the courier companies who took a shine to our survive and thrive. So instead of breaking the Internet this summer, let’s go back to those hippy days and make it a ‘summer of love’.

Kate Hardcastle

18 LITRS OCTOBER 2015 OCTOBER 2015 LITRS 19 3. What has been real world needs. Manufacturer’s are A chat with… your favourite project also reigned back by the retailer as to work on? they want certain things done “their” way which makes the customer My favourite project has been building communication harder, less intuitive. a business from scratch in HP. The Jon Howland-Nielsen accessories business (bags, mice, 6. What are your thoughts keyboards) basically anything that on incorporating digital/ isn’t a computer, printer or ink is vitally social media technologies important for any PC company as it’s into in store marketing 1. What is your the area that delivers the most margin. communications? professional I had the opportunity to own, grow background? and push this business for HP for over I think this will become more and 2 years and loved every minute. more prevalent in 2016 and beyond Sales and Marketing executive as customer continue to change the with over 10 years of selling and 4. What trends are marketing within the Mobile and you seeing emerging? way they purchase big ticket items IT sectors. in particular. Showrooming is more important than ever and it’s not all More and more consumers want to be about seeing instore and purchasing 2. What projects are connected and the “Fear of Missing you working on at the Out” is leading to the demand for online, it’s about the whole experience moment? connectivity on devices anywhere, with that brand you are purchasing or whether it’s a Sim Card in a Laptop the retailer you are purchasing from. My most recent project I’ve or Tablet, or just using the hotspot been working on is setting up an 7. What part do you function on your mobile phone more MVNO (Mobile Virtual Network think ‘green’ retail will and more people are choosing and Operator) within HP, using my play in the future of in needing to be connected. past experiences from my mobile store marketing? industry roles. The concept is to 5. How would you describe provide 3G/4G connectivity to the HP in store experience? I think less demand on paper for anyone purchasing a HP tablet fact tag and communication instore or some notebooks to enable HP’s instore experience is better moving to more digital elements will them to be more productive in than it has been but still has room to save wastage, but personally I think the commercial space and never improve in the way we communicate it’s the product’s manufacturers that have the fear of missing out on the to customer via our POS materials will change, small packaging or none latest viral Facebook clip for the or how we talk about our products at all...less cardboard, paper, plastics consumer space. and services. We need to be less means less frustration unpacking and about specs and more about the less impact on the environment.

OCTOBER 2015 LITRS 21 20 LITRS OCTOBER 2015 KNOWS RETAIL

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