My vision of 2020 Retail

Customer expectations:

1. Surprise me. I want to discover things (private label, eco/bio or branded – a good mix). But pre-select things for me. Show me the best-sellers. Let me try and taste.
2. Fair quality, fair price. Promotion is no longer the growth driver. I will not stock up. I live one day at a time.
3. Availability. I want it now. Not tomorrow. Remember, I don’t stock up! You do it for me.
4. Talk to me. I’m tired of scrolling through the phone. I need human interaction.
5. Advice, guide and teach me. I want to feel special (greet me, smile to me, ask me if I need help, let me try some of that yummy stuff that I will overpay for).
6. Flawless, frictionless service wherever and whenever I want it. Is what I came for out of stock? Guide me to your online store and deliver to my convenience. Don’t ever let me out empty handed.
7. No queuing. Ease of access/exit. Respect my time.
8. Health & planet – help me, educate me. But also lead by example.
9. Recognize and reward me. Let me feel welcomed and loved. My loyalty is a struggle between convenience and sense. Give me a purpose to shop with you.
10. Personify offers for me. Make a bridge between online and offline by bundling.

Implications for retailer:

1. Dynamic shelf management in every isle is needed. Rigid planogram is a dinosaur.
2. Dynamic pricing is needed. Want to attract more customers on a week day? Incentify them.
3. Dynamic bundling. An immediate discount for an additional purchase.
4. Stock of freebies, testers, samples needed.
5. Jump from offline to online should be flawless. Place QR codes on out of stock product space with immediate discount as an excuse.
6. Total re-engineering of supply chain.
7. O2O is a must have.
8. Data is everything. It allows 3^rd degree price discrimination to protect your margins.

Implications for producers:

1. Products – need fast change and adaptation, discontinue lines as fast as you introduce new ones.
2. Pricing – commercial policies should evolve into dynamic models
3. Sampling – is a must
4. Packaging & content should correspond to the 2020 realities (plastic, waste, hazardous content)
5. Switch to high added value product from high volume needed to secure margins.
6. Partner with retail not fight it
7. Share best practices