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Amaozn Op De Markt 1 4 2017 Ahold Integreert Bol.Com Na 5 Jaar Verlies The Future of Shopping How will consumers shop in 2025 and beyond? Short introduction… Want the presentation? Link with me… Our mission is to foster digital global trade… Peace is the natural effect of Trade Charles de Montesquieu Philosopher 1689 - 1755 The Ecommerce Foundation focusses on four main pillars to foster digital trade An online handbook by/for Helping 2.5 million consumers 37.000+ ecommerce experts making informed buying decisions 20+ annual reports about Allowing consumers and ecommerce in 50+ countries merchants to shop and sell worldwide 5 © 2014 Demandware Retail is confronted with several key challenges New New New Tech Consumers Markets New Tech “Amazon is a technology company. We just happen to do retail” Werner Vogels CTO Amazon Technology is the driving continuous innovation Technology Cost Then Cost Now Reduction Harddisk $ 0.007 / Mb (2000) $ 0.000035 / MB (2013) 200x in 13 years CPU Power $ 48 / GFLOPS (2007) $ 0.08 / GFLOPS (2015) 600x in 8 years Network bandwidth $ 25 / Mbps (2007) $ 0.63 (2015) 42x in 8 years 3D Printing $ 40k (2007) $ 100 (2014) 400x in 7 years Solar energy $ 30 kWh (1984) $ 0.16 kWH (2014) 200x in 20 years Sensors $ 20k (2009) $ 79 (2014) 250x in 5 years Industrial Robots $ 500k (2007) $ 22k (2013) 23x in 5 years Drones $ 100k (2007) $ 700 (2014) 142x in 6 years DNA sequencing $ 10M (2007) $ 1.000 (2014) 10kx in 7 years Full body scan $ 10k (2000) $ 500 (2014) 20x in 14 Years Source: Singularity University a.o. Mobile Commerce Mobile rules! Panera Bread is investing heavily into an instore mobile experience Mobile The entire investment is funded by increased revenues • 30 million users • 70% are using Apple devices • 30% of sales is digital • 10% is order online & pick up • Also use to order from table • Home & business delivery are online only (no calls). • Customer frequency has increased between 12 – 45% http://www.mitreagency.com/work/01-panera-bread.php Online Payment The end of the check out is near… online payment is becoming seamless ApplePay amnd Paypal are experimenting with ‘unbuying’ transactions. Check Out Page Basket Page Unbuy Product Detail Page 0% 10% 20% 30% 40% 50% 60% 70% Also offline payment is becoming faster, easier and is slowly disappearing… A smile may be enough to pay in the future… Visual Commerce ASOS uses photo’s to improve search results https://techcrunch.com/2017/08/10/asos-adds-search-by-photo-to-its-fashion-ecommerce-app/ https://techcrunch.com/2017/08/10/asos-adds-search-by-photo-to-its-fashion-ecommerce-app/ Amazon, Ebay, Pinterest and Google all offer photo to online shopping matching Augmented & Virtual Reality IKEA is leading the way in Augmented Reality Both in the orientation process as well as the assembly process Virtual reality will play an increasing role in the selection process How is yet to be seen…. Virtual reality will play an increasing role in the selection process How is yet to be seen…. Retailers are exploring Augmented & Virtual Reality AR / VR Virtual mirrors may become the norm for Fashion, but experts expect VR to be 5 years in the making http://factor-tech.com/future-cities/4451-retail-future-virtual-reality-set-to-dominate-tomorrows-shops/ http://www.reddretailgroup.com/virtual-reality-augmented-reality-retail-disruption/ Warby Parker is using Apple’s Face ID to map glasses on faces AR / VR Source: newscult.com/warby-parker-uses-new-iphone-x-face-id-match-users-perfect-glasses-theres-catch/ Warby Parker is using Apple’s Face ID to map glasses on faces AR / VR Source: newscult.com/warby-parker-uses-new-iphone-x-face-id-match-users-perfect-glasses-theres-catch/ Facebook is investering heavily in VR communities Tech Instore Instore display and cameras are being integrated to offer a new experience Instore Integrating pricing, face recognition, message personalization and more… Retail robots have not developed much further in the last year Robots Still welcoming people, guiding them to the right product and scanning in-store inventory Retail robots have not developed much further in the last year Robots Still welcoming people, guiding them to the right product and scanning inventory Retailers like MediaMarkt, Lowes, Target and Best Buy are all introducing Robots Robots in warehouses are becoming the norm Cutting labor costs with 80% and warehouse size between 25 – 40% https://www.youtube.com/watch?v=XO7fvrdTCgs Eatsa does not have in-store staff, ordering is done via tablet They claim to be able to serve 70 people per 5 minutes Source: www.youtube.com/watch?v=QVweHrTY31g With 500 cashierless convenience stores BingoBox is surpassing Amazon Go (18) Operational costs of a BingoBox are $ 632 per month while making $ 4500 and $ 9000 in sales More tech is integrated into the store concept to add value Instore Like a body scanner by Unspun to create custom fit jeans and New Balance using a foot scanner blog.fit3d.com/fit3d-scans-used-to-make-custom-jeans-68e316916a36 https://www.volumental.com/partners/ Brands are building stronger store experiences Adidas is planning to control 60% of the brand’s global retail space by 2020 (up from 30% in 2016) http://fortune.com/2016/12/14/nike-adidas-retail-future/ http://www.sldesignlounge.com/news-articles/category/retail-design/ Artificial Intelligence Data (text, behavior, search, social, photo, video) is the new oil Artificial Intelligence the oil drill North Face uses IBM Watson to offer guided text based search Allowing a natural way to select fashion considering Artificial Intelligence is all about personalization Personalization may lead up to 30% more sales Product Targeting Sorting Churn prediction Personalization Analysis Predictive search Recommendations Chat Bots Awareness Interest Consideration Purchase Retention Advocacy Message Inventory Instore Just in Time Purchasing personalization Management Identification Delivery http://maxpixel.freegreatpicture.com/Personalization-Data-Retention-Fingerprint-279759 AI is analyzing 5 billion new photo’s on social media every day Allowing new forms of targeting Stitch Fix is using AI to better service its customers (39% only buys from them) Fashion is curated based on customer preferences, social media activities and feedback Elaborate intake Unique curation Continous feedback Source: Internet Trends 2016 – Mary Meeker (kpcb.com/InternetTrends) & algorithms-tour.stitchfix.com/#recommendation-systems Social Commerce Younger generations are searching more visual (using Pinterest and Youtube) Source: Internet Trends 2016 – Mary Meeker (kpcb.com/InternetTrends) Social media ‘owns’ 6% of the ecommerce market As a result Wechat Pay is gaining market share at the cost of Alipay Messaging keeps increasing and is more and more used for buying (especially in Asia) Monthly Active Users on Select Social Networks and Messengers, Global, 2011 – 2015 Source: Internet Trends 2016 – Mary Meeker (kpcb.com/InternetTrends) Voice Commerce Voice is replacing written communication faster than we think… It seems to allow you to build a more personal relationship Google/Peerless Insights, “Voice & Voice-Activated Speakers: People’s Lives Are Changing,” n=1,642 U.S. voice-activated speaker owners who use their device monthly, A18+, Aug. 2017. Voice is the third internet era after the Web and Mobile With 500 million devices Google Assistance will become the operating system for voice Google will take voice even an extra step into the age of assistance Alexa is integrated into cars, fridges, watches, purifiers, locks and more by 50+ brands Internet of Things & 3D AI, Voice, IoT will merge into entirely new kinds of products Adidas is moving 3D printing to production, selling 100.000 3D printed shoes in 2018 Internet of Things raises new concerns about data ownership • Electronic toothbrush: • the producer? • the retailer? • the dentist? • the user? Also in the bike industry Internet of Things is on the rise… Everywhere where products are available, the consumer will make purchases from the TV, on the street… #ME #HERE #NOW New Consumers Generation I is about the Internet The Maslow Pyramid according to my son Self- development Appreciation Social contact Safety and Security Physical needs Generation I is about “I” (or me) 60% 80% Growth in searches Growth in searches “….. For me” in 2 years “Should I …..” in 2 years Media consumption rules the day of Generation I Mobile accounts for 52% of their online time (4:10 hours), nearly half is connected for 10+ hours Generation I biggest fear… Losing their mobile phone Generation I has new Ideals Environment, Transparency, Honesty, Integrity Ownership is being replaced by preowned, refurbished & rental Peerby allows neighbors to share …. anything Leading to some interesting changes in behavior Consumer loyalty is disappearing. You have to prove your brand again and again… If you want loyalty, buy a dog… Time is the most valuable commodity of consumers, especially young people How much is an hour worth? Both consumers as well as expert predict further growth of online shopping Consumers with 12%, Experts with 19% GFK Shopping Tomorrow Study 2018 The smallest categories are expected to grow the most Online Food/Near Food will explode with 200 – 450% GFK Shopping Tomorrow Study 2018 53% of the Dutch consumers shopped online in Asia In 2023 49% of the total online spending by Dutch consumers will be abroad GFK Shopping Tomorrow Study 2018 New Business Models Seven of ten of the largest global companies are based on a platform business model Source: https://innovator.news/the-platform-economy-3c09439b56 Venture capitalist
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