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Buying Into Innovation 30 aop editoriaL team of the year 22 JUL 2015 modern marKeting £7.50 or Bitcoin eqUivaLent BUying into innovation 30 What’s in store for retaiL? 9 772046 063011 TD_36_15_JUL22_COVER.indd 1 17/07/2015 15:44 Returning for its second year, the IAB is proud to present the premier showcase for the UK digital advertising industry. Check out the schedule of free events www.iabuk.net/upfronts @IABUK #IABUKupfronts ® Media Partner iabuk.net/upfronts FullSinglePage.indd 1 17/07/2015 10:35 THE DRUM 22.JUL.15 www.thedrum.com insiDE03 VOLUME #36 22 July 2015 issUE #15 33 Returning for its second year, the IAB is proud to present the THE RETAiL issUE From Apple Pay to Amazon’s premier showcase for the UK Prime Day, we take a look at the latest innovations in the retail space. digital advertising industry. 12 22 Buy button battle Can e-commerce on social networks ever rival Amazon? 18 Agile adaptors Why the surge in retailers Check out the schedule of free events investing in innovation hubs? www.iabuk.net/upfronts 22 What is luxury? 06 An exploration of changing @IABUK Trending 37 notions of luxury retail. The latest trends and brilliant ideas shaping our space, as chosen by our enviable panel of Trend Setters, #IABUKupfronts including WGSN global chief content officer Carla Buzasi. 27 Paying it forward How forward-thinking payment innovation is changing shopping. 30 Primed for purchase A look at the increasing 46 popularity of major retail events. ® Back Chat Media Partner Chewing the fat this issue is design icon Wayne Hemingway, who waxes lyrical about 33 rebuilding the UK’s oldest I will what I want amusement park. Why sports retailer Under Armour iabuk.net/upfronts chose a model to represent it. FullSinglePage.indd 1 17/07/2015 10:35 TD_36_15_JUL22_CONTENTS.indd 3 17/07/2015 15:45 Jason-advert-FINAL.pdf 1 14/07/2015 11:49 Rewardingly hard to win dma.org.uk/awards Pushed. Pulled. Prodded. Poked. Mulled over. Fought over. Won over. Winner. RAPP - ‘Barclays Personalised Video’ 2014 Golds: Best Use of Technology, Best Digital Performance, Best Use of Email Marketing Headline sponsors Media partner Print partner FullSinglePage.indd 1 17/07/2015 10:35 Jason-advert-FINAL.pdf 1 14/07/2015 11:49 THE DRUM 22.JUL.15 www.thedrum.com LEADER05 MEET THE TEAM RETAIL’S gORDON yOUNg EDITOR-IN-CHIEF [email protected] RENAISSANCE? Thanks to either good fortune or stunning foresight (let’s call it the latter), this special retail issue of The Drum arrives on the back of an especially STEPHEN LEPITAk noteworthy week for the retail industry. EDITOR Within the space of a few days we’ve seen Apple Pay finally arrive on UK shores, [email protected] Amazon’s Prime Day extravaganza exceed its executives’ wildest expectations and Marks & Spencer clothing boss John Dixon quit the firm he’s served for 26 years after yet another sales slump. The contrasting fortunes of Amazon and M&S’s clothing and homewares division could be interpreted as symbolic of the way online stores are deemed to be THOMAS O’NEILL stampeding all over bricks and mortar retailers. But to blame the changing retail MAGAZINE EDITOR [email protected] landscape for M&S’s repeated category failings would be to let it off the hook. Its beige clothing department has seldom been in fashion, and it only has itself to blame for not moving with the times. To survive today – let alone thrive – retailers must innovate, either in their marketing, use of technology or ideally a combination of the two. Few have kATIE MCQUATER grasped this better than Amazon. The numbers it has released for its Prime Day FEATURES EDITOR [email protected] spectacular – on which it claims to have sold more units “than the biggest Black Friday ever” – are staggering. Some 398 items were ordered per second, with 34.4m sold in total in just 24 hours. These included 47,000 televisions, 51,000 Bose headphones and 14,000 iRobot Roomba vacuum-cleaning robots that no one ever knew they wanted. The Wednesday prior, just one was sold. CAMERON CLARkE “Going into this, we weren’t sure whether Prime Day would be a one-time thing COMMISSIONING EDITOR or if it would become an annual event,” Greg Greeley, vice-president of Amazon [email protected] Prime said. “After [these] results, we’ll definitely be doing this again.” No kidding. This was a triumph of marketing and PR. Where lesser retailers would see just another Wednesday in the week, Amazon spotted opportunity. And it is the Amazons of this world, the success stories, that we focus on JESSICA DAVIES throughout this issue – not the retailers feeling sorry for themselves because NEWS EDITOR consumers have moved on and they haven’t. Too often when we talk about retail [email protected] we labour on the doom and gloom of the high street when in fact this is one of the most exciting and innovative sectors in business right now. The speed at which retail is moving is incredible – occasionally, perhaps, even Association of Online Publishers Rewardingly • Digital Publishing Company of the Year too quickly for its own good. The much touted Apple Pay has been causing some • Editorial Team of the Year 2014 & 2015 confusion on the London Underground: it is worth noting that you’ll be penalised PPA hard to win • Publishing Innovator of the Year if your Apple Watch battery runs out before you complete a journey, you’ll get • Business Magazine of the Year 2013 dma.org.uk/awards charged twice if you switch between iPhone and watch to tap in and out even if PPA Digital Awards • Content Team of the Year they’re linked to the same card and, perhaps most amusingly, the payment reader PPA Independent Publishers Network • Media Brand of the Year is on the wrong side of the turnstiles for all those of us who wear our watches on Pushed. Pulled. Prodded. Poked. • Editor of the Year the left wrist. Mulled over. Fought over. Won over. Winner. PPA Scotland • Scottish Magazine of the Year But despite those teething problems, Apple Pay is a big step towards the kind of • Business & Professional Magazine of the Year RAPP - ‘Barclays Personalised Video’ • Business & Professional Magazine Design of the Year cashless society we envision later in this issue. For retailers that can’t keep up… • Business & Professional Magazine Editor of the Year 2014 Golds: well, they’ll be left cashless altogether. Best Use of Technology, Best Digital Performance, Best Use of Email Marketing Editor-in-Chief: Gordon Young Associate Editor & Managing Director, The Drum Network: Richard Draycott Editor-at-Large & Head of TV: Dave Birss Editor: Stephen Lepitak Magazine Editor: Thomas O’Neill Features Editor: Katie McQuater Commissioning Editor: Cameron Clarke News Editor: Jessica Davies Senior Reporter: Seb Joseph Reporters: Gillian West, Jen Faull, Natalie Mortimer, John McCarthy, Minda Smiley, Tony Connelly Editorial Assistant: Rebecca Stewart Design & Production Director: Nick Creed Design/Production: Amanda Dewar, Ross Lesley-Bayne, Gillian Durham Producer: Sam Scott Group Commercial Director: Liz Hamilton Key Account Director: James McGowan Senior Key Account Manager: Georgie Ripley Key Account Manager: Flannan Hasset Profile Hub Sales: Stephen Young Recruitment Sales: Victoria Swan Subscription Sales: Laura Bradley Managing Director of Events: Lynn Lester Events Director: Katy Thomson Managing Director: Diane Young Managing Director, The Drum & thedrum.com: Andy Oakes Printed by: Stephens & George Magazines Head Office: 4th Floor, Mercat Building, 26 Gallowgate, Glasgow G1 5AB London Office: First Floor, 23 Curtain Road, Shoreditch, London, EC2A 3LT Tel: +44 (0)141 552 5858 Fax: +44 (0)141 559 6050 Headline sponsors Media partner Print partner SUBSCRIPTIONS To subscribe to The Drum magazine go to thedrum.com/subscribe where one year’s print subscription costs £172 (£197 outside the UK) or the equivalent in Bitcoin (via thedrum.com/bitcoin). For all enquiries please contact Jordon Geary, [email protected], +44 (0) 141 559 6060. A year’s subscription includes 25 print issues; excerpts from the Digital, Design and Advertising Censuses; Mobile Top 50; Social Top 50; 50 Under 30 Women in Digital; The Designerati; The Digerati; The Adverati; plus various sector specific supplements. THE DRUM is published by Carnyx Group Limited. The publishers, authors and printers cannot accept liability for any errors or omissions. Any artwork will be accepted at owner’s risk. All rights reserved. On no account may any part of this publication be reproduced in any form without the written permission of the copyright holder and publisher, application for which should be made to the publisher.© carnyx group limited 2015 iSSn 2046-0635 FullSinglePage.indd 1 17/07/2015 10:35 TD_36_15_JUL22_LEADER.indd 5 17/07/2015 15:52 06TREnDing www.thedrum.com 22.JUL.15 THE DRUM PERSONALISATION THE DRUM’S TREnD THE POWER SETTERS Each issue we ask members OF CHOiCE of our enviable panel of magnificent minds from the industry and beyond to identify the latest trends and brilliant ideas shaping our space. Here we meet this issue’s contributors. Gideon Karmiloff (p.9) is managing director at Vivid Brand Carla Buzasi (p.7) is global chief content officer at The Woolworths pic ‘n’ mix might no longer be a fixture of our high streets, but shoppers still WGSN overwhelmingly want choice, explains Vivid Brand managing director Gideon Karmiloff. The last bag of Woolworths that consumers are often more able Shoppers want choice, but not so Richard Danks pic ‘n’ mix sold for £14,500 on to design ideal products that meet much of it that it becomes a chore.
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