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    • 08/07/17
    • Retail
    • Technology
    • Point of Sales Tracking
    • Connected Consumer
    • Global
    • English

    Retail Trend Monitor 2017: Technology will make the difference in retail

    Changes in the retail landscape, driven in part by the mobile revolution and resulting changes in consumer shopping preferences, have revealed new opportunities for retailers. However, with many of the arising opportunities requiring significant investment in technology, the challenge for retailers is knowing which of these to invest in to secure future success.

    A phased approach to retail technology investment

    Those technologies that will help retailers to meet current and future consumer trends and expectations can be classified according to two distinct groups, reflecting a phased approach to retail technology investment:

    One: Those technological developments with a high relevance today and which will remain the focus of investment in the future. These include big data analytics (relating to both consumers and the supply chain) and mobile capabilities like shopping apps.

    Two: Those technological innovations that have lower relevance today, but which are predicted to become the focus of future investment. It is by anticipating the most influential technologies of tomorrow that retailers can stay one step ahead of the competition. Examples of such technologies include check-out less stores, and virtual and augmented reality.

    These were the findings of our Retail Trend Monitor 2017, a 51-country online survey of 346 retailers and industry experts. The study examines the technologies in which retailers should invest in the context of exploring those key retail trends that are having the most impact now and those that will have the greatest influence in the future.

    Retail trends having the most impact today and tomorrow

    According to the retailers who participated in our study, the convenience of the shopping experience (89%) is the leading driver of current retail developments but personalized marketing and the seamlessness of the cross-channel experience will gain in relevance.

    While they anticipate mobile communication to be the top driver in the future owing to the growing popularity of shopping anytime and anywhere, they also expect convenience to remain a dominant force. Convenience underpins many of the other drivers of change and innovations in the retail space. Closely related to anything that makes consumers’ lives easier, the concept of convenience is however constantly evolving. Today, of course, it is closely associated with mobile retail. However, according to the retail experts who participated in our study, the future of convenience will be about retailers themselves providing greater transparency of information (e.g. price comparison/review websites and social media). What’s more, it will be about them offering a seamless shopping experience across channels, and personalized marketing information and offers.

    Future success is founded on having the right retail insights

    Convenience and personalization will play a major role in shaping the future of retail. Achieving a more convenient and personalized shopping experience, one that meets consumers’ expectations, is dependent on choosing the right retail format and investing in the right technology. With the right intelligence, retailers have the opportunity to not only address but also exceed consumers’ expectations, thereby surprising and delighting them. Those retailers that achieve this will be the success stories of today and tomorrow.

     

     

     

     

     

     

     

     

     

     

     

     

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  • White paper: The key drivers of retail change – now and next
    • 08/07/17
    • Retail
    • Technology
    • Point of Sales Tracking
    • Global
    • English

    White paper: The key drivers of retail change – now and next

    Read our latest whitepaper to learn how to succeed in this space. Inside you’ll find analysis from our experts and insights from our 51-country online survey of 346 retails and industry players.

  • Retail Trend Monitor 2017: Technology will make the difference in retail
    • 08/07/17
    • Retail
    • Technology
    • Point of Sales Tracking
    • Global
    • English

    Retail Trend Monitor 2017: Technology will make the difference in retail

    Our Retail Trend Monitor 2017, a 51-country online survey of 346 retailers and industry experts, examines the key drivers of retail change. The study explores the retail trends and technologies that are having the most impact now and those that will have the greatest influence in the future.

  • Black Friday  and the Mobile market
    • 08/07/17
    • Retail
    • Technology
    • United Kingdom
    • English

    Black Friday and the Mobile market

    Since arriving in this country, Black Friday has become a key date in UK shopping. This is equally true for the mobile market. If we look back to Black Friday 2015, total Smart-Mobile sales grew +29% compared to the week prior to Black Friday.

  • Black Friday insights – Consumer Electronics
    • 08/04/17
    • Technology
    • Point of Sales Tracking
    • United Kingdom
    • English

    Black Friday insights – Consumer Electronics

    The rise of Black Friday in the UK over the past few years has been staggering. The US-imported sales frenzy has radically altered the composition of our traditional peak period, pulling an increasing number of sales from both sides of Black Friday.

    • 08/03/17
    • Retail
    • Technology
    • Global
    • English

    Advertising budget: How should you invest yours?

    With many ways to get your brand’s message to consumers, a common question for businesses these days is how to invest your advertising budget. Of course, you aren’t alone in facing this challenge. Every marketer wants to know which media channels – digital and/or non-digital – they should invest in. One way in which many determine this is by looking at the overall return on investment (ROI) of their media activities. This might tell you, for example, that a digital campaign carries sales. But does this then mean that you should shift more of your budget to digital?

    Looking at overall ROI, which is calculated by dividing total revenue by your total media spend, provides insight into the success of combined activities or entire campaigns. What it doesn’t tell you is which media channels you should spend more on to generate incremental sales. This makes optimizing your media spend based on this intelligence alone tricky at best.

    There is an answer, though. Using point of sales data and marketing mix modeling (MMM), the marginal ROI of individual components of your campaign can be calculated. Marginal ROI only considers the growth in sales that are predicted to result from any increase in your spend. Consequently, it enables you to see which media channels will deliver more of a return the more you invest in them.

    To invest, or not to invest, more in the media you know to deliver great ROI?

    Perhaps counter-intuitively, just because a particular media channel delivers a great overall ROI doesn’t mean you should allocate more of your budget to it. There is a point, namely the saturation point, at which investing more money in a channel won’t help to deliver more sales.

    The MMM studies we are carrying out across various countries and categories show that the majority of campaigns using traditional media display signs of saturation, as do those that use video and social. On the other hand, both display and search campaigns offer room for further investment.

    For 70% of traditional campaigns, saturation point has been overtaken vs. 39% of digital campaigns

     

    Our case studies also highlight that traditional media such as radio are at times overlooked as ROI drivers. In contrast, while digital media channels drive sales, they can quickly reach saturation point, resulting in lower marginal ROI.

    In order to determine which media channel will deliver an increased ROI and incremental sales, what you need to know is where each of those you are investing in is positioned on the saturation curve.

    Response curves help explain how much more can be invested by media

    Example

    In this example, our client devised an ad specifically for an e-commerce platform to appeal to influential consumers. However, the ROI of using this platform wasn’t as high as that achieved by using either online video or print channels. By identifying where these media channels sat on the saturation curve, we found that the e-commerce platform was the only one which had not yet reached saturation point. With its marginal ROI being higher than its average ROI, it would deliver better for each dollar of investment than any of the other channels (online video, print or TV). Consequently, our client could continue to invest in this channel, safe in the knowledge that their money was being wisely spent.

    ROI of different media channels

     

    Simulating your media budget allocation to optimize your investment

    Using MMM and sales data, we can also simulate the outcomes of a redistribution of media spend. In this way, you can see how to optimize your media campaigns and planning. You can determine where to invest more of your media budget to achieve a higher positive return. However, perhaps even more critically, you can establish whether it’s possible to achieve the same increment in sales for less investment, or more, with the same budget.

    Conclusion

    Knowing where to spend your media or ad budget isn’t straightforward. In fact, it’s one of the biggest challenges for all our clients. What you need to know is where non-digital and digital media ad value, and how they work together. You also need to know which media channels deliver the greatest return and whether they’ll deliver more sales in line with any investment increase. The good news is that looking at both your overall ROI and using the more advanced metric of marginal ROI, you can discover the optimum way to spend your advertising budget.

    Are you interested in more information?

    Take your media planning to a whole new level. Download your copy of our white paper: Maximize your media effectiveness and drive sales with our five-step program.

     

     

     

     

     

     

     

     

     

     

     

     

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    • 08/02/17
    • Technology
    • Connected Consumer
    • Global
    • English

    Discovering the era of Hyper-Connected Consumers in India

    The lifestyles of people are changing enormously due to digitalization, and businesses are communicating with customers in a special and unique manner. They are dealing with a new-age world of hyper-connected consumers who are digitally connected to almost everything in their daily chores. A few years back no business would have ever imagined the fast-changing  expectations and choices that consumers have. But, technology has changed the world, and this is now the reality.

    Embracing a digitally enhanced future with Digital India

    Digital India, a brilliant project, is a testimony to the fact that India is embracing this massive technological paradigm shift, going full throttle towards a digitally enhanced future. Be it retail, banking, education, food, travel or manufacturing, the Digital India initiative proves that we are moving in the right direction! The Indian consumer, who previously was simply connected (a mobile device meant a mechanism to call others and search the internet) has become hyper-connected and this remarkable initiative by the government is catering tremendously to the growth levels of hyper-consumerism.

    The outburst of smartphones, social media platforms and high speed internet is the major driver behind the dramatic change caused by consumers’ expectations when it comes to brand engagement. The average consumer in India spends most of their time on smart phones; nearly 150 billion hours were invested between 2014 and 2016, according to new research. This year was predicted to see more than 350 million mobile internet users – a clear example of Digital India galvanizing a movement in the nation. Now imagine the growth spurt in the coming years!

    Smartphones driving innovation

    Another aspect to this massive surge in the digital world is the social messaging behavior of the hyper-connected consumer which is creating great stories on social platforms like Instagram, Facebook, and Twitter. The “desktop-first” era is a bygone era; all we can see now is the smartphone, which has become a key platform and is driving the latest trends in innovation. Thus, it clearly reflects that smartphones are going to be greatest driver of the Digital India initiative, whose escalating penetration will only grow in the future, hence transforming India into one of the largest smartphone economies in the world.

    Apart from the effect that technology has had on our lives and daily chores, it has created a number of terrific opportunities for businesses to grow and become stalwarts in their respective realms. However, it also entails a lot of challenges, and the businesses that can come out with new and better ways to engage with the emerging segments of hyper-connected consumers are the ones that will thrive. In this era of ‘discovery’:

    • Companies are realizing the increasing importance of engaging consumers through the various channels available. Sometimes companies need to meet consumers personally and get to know their demands and personal choices. With consumers displaying love towards visual content, it is significant to offer them something extraordinary which they can share on digital platforms.
    • There is a dire need to fuel platforms with video content. Digital technologies provide consumers a new lens on brands and new ways to engage every day. There’s the opportunity for brand relationships with customers to evolve because of technology.
    • With everything turning digital, companies need to personalize the customer’s experience with a personal touch, yet, their privacy should not be in jeopardy at all.
    • Transparency is another major aspect companies must consider; by making everything visible to their customers, the company can escalate their level of reliability and create a trusted brand.

    The key takeaway here is that people will pay where they see value and that value is no longer simply wrapped up in the product. Brands need to continually strive to understand their customer engagement and relationships, and how it will evolve with digital technologies so they can innovate and provide better value for their customers and more margin growth for themselves.

    With the nation’s thrust behind Digital India, we believe that a new era of “Hyper-Connected” consumers have emerged. We will be sharing insights on this unique consumer segment based on a custom featured study and exchanging perspectives with a panel of industry leaders. Join us and be part of the conversation to Discover, Disrupt and Delight in the era of the Hyper-Connected Consumers in India on September 7, 2017 in Mumbai at Hotel Sofitel.

    Nikhil Mathur is the Managing Director of GfK, South Asia. To share your thoughts, please email Nikhil.mathur@gfk.com or leave a comment below.

     

     

     

     

     

     

     

     

     

     

     

     

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  • Black Friday insights - PC Market
    • 08/02/17
    • Retail
    • Technology
    • United Kingdom
    • English

    Black Friday insights - PC Market

    The PC market is no exception in regards to the growing importance of Black Friday in the shopping calendar. Despite strong promotional price cuts, the value of the PC space still benefitted, with Mobile Computing showing +9% YoY value growth in 2016.

  • Identifying high-potential, technology product opportunity areas
    • 07/31/17
    • Technology
    • Consumer Goods
    • Market Opportunities and Innovation
    • United States
    • English

    Identifying high-potential, technology product opportunity areas

    A leading Consumer Electronics & Technology client wanted to update its annual global trend report and deep-dive into the most promising trends to effectively identify new product opportunity areas.

  • GfK Technology Report - Create powerful media strategies with a 360° view of the Connected Consumer
    • 07/31/17
    • Technology
    • Connected Consumer
    • Global
    • English

    GfK Technology Report - Create powerful media strategies with a 360° view of the Connected Consumer

    Our GfK Technology Report looks at the key elements needed to implement the best approach for targeting the Connected Consumer.

  • GfK Technology Report - Create powerful media strategies with a 360° view of the Connected Consumer
    • 07/31/17
    • Technology
    • Connected Consumer
    • United Kingdom
    • English

    GfK Technology Report - Create powerful media strategies with a 360° view of the Connected Consumer

    Our GfK Technology Report looks at the key elements needed to implement the best approach for targeting the Connected Consumer.

  • GfK Technology Report - Create powerful media strategies with a 360° view of the Connected Consumer
    • 07/31/17
    • Technology
    • Connected Consumer
    • United States
    • English

    GfK Technology Report - Create powerful media strategies with a 360° view of the Connected Consumer

    Our GfK Technology Report looks at the key elements needed to implement the best approach for targeting the Connected Consumer.

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