Global Retail Trends

Shopaholic attended the recent annual AMI Conference and sat in on a fascinating presentation from John Batistich, General Manager Marketing, Westfield Group.

Based on a recent Westfield Study Tour, Batistich outlines ten changes in global retail trends.In this post we look at two of these:

1. Technology
2. Shift to advocacy

Technology

Technology has changed the nature of retail touchpoints. In the last month, Shopaholic has purchased music over iTunes, applications and games through the iPhone app store, and SingStar game tracks through a Playstation 3 console, via the online Playstation Network.

Such innovations have disrupted and redefined how we buy and consume. The computer and mobile phone in particular have joined the in-store environment as very accessible points of purchase. Brands need to ensure consistent alignment of marketing communications across all purchasing environments.

Batistich labels digital screens ‘the new in-store / in-centre medium’. Accordingly, an Arbitron report released earlier this year found that 67 percent of American adults had not only been in the presence of, but recalled seeing a digital out-of-home screen in the past month.

Digital screens offer great scope to engage with consumers through incorporation of touch screens, WiFi and Bluetooth. With the cut-through and flexibility offered by dynamic content, digital screens are sure to continue to deliver results in the retail environment.

Shift to advocacy

Batistich speaks of a technology-enabled shift from marketing models of tell/sell to involvement/participation. Consumers are sharing, advising, guiding and creating within social communities – see Brian Solis' Conversation Flower below.

Although these forms of community involvement take place out-of-store, the insights that can be gained are relevant to the in-store environment. After all, shoppers enter the store with their full range of out-of-store experiences and knowledge.

Consider that 50% of shoppers now research online before entering the in-store environment to make a purchase. With anonymous online opinions carrying the same weighting as trusted recommendations from family and friends, ‘word of mouth’ just became a lot broader.

Westfield has recognised the power of consumer advocacy, creating a Facebook application as part of a wider campaign promoting its gift cards. The application requires the user to opt in so that their status is updated to “All I Want for Christmas is a Westfield Gift Card”, with further copy stating that the user is now in the running to win a $10,000 gift card. This status change is displayed on the individual’s Facebook profile and appears in their friends’ news feeds.

Launched on November 24, over 200,000 Facebook users had opted into the application and updated their status by the 27th. Bearing in mind that this status change appears in friends’ news feeds, the promotion’s reach extends far beyond those 200,000 who have participated.