Commercial, Gunnebo Business Solutions, Gunnebo Retail Solution, Innovation, Reflections, Retail

Norwegian Trade Conference; BOPIS + BORIS = True

I had the opportunity to attend the Norwegian Trade Conference in Oslo 24th September featuring some of the most interesting retailers in Norway, and even a couple of international speakers. The focus for this years conference was BOPIS + BORIS = True, but some of the keynotes also focused on traditional retail and omnichannel.

Trade is never a dying concept but rather a constantly changing industry. This rapid change and advancement bought in two e-commerce acronyms to the market. This is none other than BOPIS which is abbreviated for buy online and pick up in-store facility and BORIS which is bought online and return in-store.  So what does this give your business? How does it support customers to have a better shopping experience? These are the questions we intend to answer by the end of this article.

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These new purchasing behaviors have widened the scope of shopping gives more flexibility and convenience to your business. Let’s dig in deeper and see what advantages these new Omni channels provide you with.

From apocalypse to renaissance?

Trade would never reach an apocalypse. Rather, it gives new beginnings just like the renaissance. So, it can be related to it as well.  There is one question that many have in mind when it comes to engaging consumers and maintaining relationships with them further with regards to trade and business. Is trade all about customer experience or it solely based on price? 

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Old rusty cash register on the floor of an abandoned store in Pripyat – Chernobyl nuclear power plant zone of alienation.

Recent statistics that mainly focused on Norwegians show that Norwegian shoppers who shopped in physical brick and mortar stores in Norway increased by 16% from 2012-2018 and those who shopped abroad in physical stores increase by 76% in the same time frame. 

On the other hand, Norwegian shoppers who purchased from Norwegian online stores increased by 101% and purchasing from international stores increased by 146% from 2012-2018.

It also revealed that 50% of consumers preferred physical stores whereas 20% preferred online stores. However, 30% did not really have a particular preference. 

Therefore, these facts show that customer service is not just a department or a small fraction in the trade industry. It plays a bigger role as the main purpose is to build a loyal member and focus every aspect of keeping the customer in the center. Simply said, the customer is the boss! Not to forget while the store is 50%, delivery is equally important and takes about another 50% nowadays.

From apocalypse to relevance

Peterson was the speaker of the year during “The Big Show” in New York in January and has about 30 years of experience as a retailer, strategist, and speaker. His innovative approaches to modern retail and strong expertise in cultural trends are his specialty. 

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Lee Peterson – EVP: Thought Leadership & Marketing – WP Partners

It was pointed out that retail closures were more than openings in the USA and the sole reason was shoppers were looking for more facilities than just shopping. Whilst shopping, they looked for eating spots and food halls are a great technique. They also look into children’s play areas, fitness centers, green spaces to relax, farmers’ markets, places to buy household items and other facilities. For example, farmers’ markets have 3985 in 2014 to 9027 in 2019 as buying fresh fruits and vegetables has increased over the years and a consumer on average spends about $16 per visit.

Therefore, many shoppers looked for an all-in-one place to get all that they need. Therefore, incorporating this concept shows that shopping is not dead yet, but rather the way shopping is done must be changed. This is where BOPIS and BORIS become two famous traditions that are followed these days for customer convenience. 

BOPIS and BORIS

BOPIS

Unlike earlier days, people are less patient and expect instant gratification. Thus, BOPIS is very useful for people who are stuck in workplaces or traffic and do not really have the time to choose items in shops. Through this, they get the option of choosing the goods they need online and picking it up on the store. This saves time for people with busy schedules to smoothen their shopping. On the other hand, when customers pick their goods, 75% of them also purchase additional items while in-store.

Looking at the near future, the use of technology will be more heavily incorporated into shopping. For example, having 3-D views of products and being able to visually shop their stores and getting it delivered. 

BORIS

This is another option where you could buy online and get it delivered. However, if you want to exchange or return to a physical store, you can do so. So the hassle of return shopping is eliminated and is a convenient service. The benefit of it is that when customers visit the store to return goods, there is a high chance that they might exchange or even buy additional goods.

But these innovations won’t mean it is the end of shopping centers because having physical stores gives delight to people which virtual stores cannot give. People like to touch, feel or smell which online stores cannot give because those sensations can induce spontaneous purchases.

The line between physical stores and online stores will get thinner and thinner day by day and a new concept will come known as a physical store which will create a fluid web-to-store system with a smooth customer experience. Therefore, many different methods will be used with different approaches to reach different audiences.

How to create total seamlessness between the web and the store?

As Hauk Landsverk, Digital Director of  Elkjøp expressed, to create a seamless integration between web and physical store is through these omnichannel approaches like BOPIS and BORIS to create a link between physical stores and mobile, telephone or computer devices.  Through these, customers will enjoy the benefits of technology which will simultaneously cater to their needs as well. It will be customer-centric rather than product-centric where it is based on the customer’s journey and experience which is a fundamental factor.

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It speeds off the web

Siv Heleen Grødem, entrepreneur and owner of the Suser i Sivet highlights certain strategies to enhance the shopping experience such as instead of selling individual clothes,  you sell a full costume. Apart from that other factors like social media promotions by stores, online presence and personal services like cash on delivery are a few aspects that also enhance the shopping experience. 

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Suser i Sivet also won the prestigeous award for retailer of the year: “The winner is the result of hard and planned work over many years, a willingness to invest and dare to try out new things and excellent marketing in social media. The result is a modern, forward-thinking business that masters the demanding art of combining online sales and physical store in an excellent way.”

Different industries, same customer – how to meet future customer needs

Ingjerd Blekeli Spiten, Executive Vice President of  PersonMarked highlights modern payment options like mobile banking and paying online as new developments that make purchasing more easier and convenient. Most banks and online payment gateways are trustworthy and reliable where almost 90% of people trust their banks and 20% of the people trust global payment systems like PayPal.  There are few others as well that rely on social media payments, IT companies or mobile companies.

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Keeping up with the consumers – how Zalando aims to become the starting point for fashion

David Hejgaard, Regional Lead Nordics of Zalando reflects on Moore’s law stating evolution is much faster than ever where customers tend to shop anywhere at any time of the day. Most physical stores have partnered with virtual stores where people can choose the color and size of what they need. If this is available in the virtual warehouse, they can purchase it. 

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How to prepare for a different future?

Truls Fjeldstad, Director of marketing and business intelligence at NorgesGruppen is a charismatic guy who mainly focuses on sustainability. He believes that classical stores where you pick and pay will continue to exist and never halt. Thus, to prepare for this, new features and services must be introduced to support the traditional brick and mortar stores. These include personal assistants, IoT, automation, and delivery as well. 

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How to leverage customer data and not just collect it?

Anton Nytorp, Head of CoopX at Coop Norway is a firm believer in heat mapping. This is a great technique to understand customer’s purchasing behaviors in the store. These analytics show actions and what your customers usually like. It is a good way to record data in a way that can be interpreted rather than just merely collecting it. 

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Furthermore, placing similar products of different vendors is another great technique so consumers have many options to choose from if they don’t like a particular product type or brand. This also shows and helps identify which products are more likely to be bought.  Having an unmanned- store in Norway is also on the bucket list as it will show what customers actually want and not forced or induced to buy sales representatives. 

Symbolic consumption and self-concept

Siv Skard, Associate Professor at Kristiania University College researches consumer behavior. She highlights that people are always concerned about how others look at them and judge them. This is a great point that can be taken advantage of from a business perspective.  People are self-centered and if they notice that they are being watched, you can promote concepts like ‘go green’ or ‘go healthy’ which people tend to buy. 

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How to create results online from the first click?

Rune Kjeldsen, General Manager at “Hekta på Tur” began his first business at the age of 22 which was sold to a Dutch company. He then began an online store called Hekta Pa Tur which has steady and stable growth. Today it is a leading profitable store.

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Thus the moral of the story is when the wind of change blows, you must build a windmill if you’re a winner because losers will build wind-shields instead.

The customer experience is what will differentiate you from the competitors in the future. 

Always keep in mind that customer experience is far more important than having a good customer service system. Thus, to ensure smooth and efficient customer experience, it is necessary to indulge in profitable and sustainable business models inclusive of Omni channels like BOPIS and BORIS. These strategies are what gives customers a better overall experience.

Sveinung Jørgensen, Associate Professor at INN and Lars Jacob Tynes Pedersen, Associate Professor at NHH research on sustainable and profitable business models working closely with Norwegian and international companies. They have published a book together called ‘RESTART 7 Roads for Sustainable Business Models’. You can read more about them at www.JorgensenPedersen.no

There are a few ways to enhance the customer experience. You can Redesign the business model and approach focusing on a customer-centric fashion model as it is important to see through the customer’s eyes.

Controlled experiments is another process of understanding customers and to see their issues beforehand. You can see the usability of the products, how well people can use and their overall experience and impression of the particular product or service.

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Another method is Circular processes which are usually adapted by product-oriented companies who have sought ways to give in a service and benefit from it. For example, you purchase a washing machine and pay in a cycle whereas the manufacturer will ensure that it works properly and service it when needed. Service logic is quite similar to a circular process and is relatively new which focuses on exchanging services than just goods.

Alliances are equally important to engage with your customers and communicate with them throughout their shopping journey. You can get information such as feedback, their experiences. Knowing these you can adapt means to ensure customer’s expectations are met. Another important aspect is Results that are obtained by different analysis will help you identify loopholes and fix any issues to enhance the overall customer experience.
The three dimensions of customer experience are segregated into three elements. The first is a success where the customer is able to get what he/she requires and also see if the interaction was successful or not. An effort is analyzed to see how much effort the customer had to personally put to get a successful interaction. Lastly, emotion is whether the overall interaction left the customer delighted or disappointed.

The changeover process in the green shift

Anita Sørlundsengen, Retail Director and  Øyvind Andreassen, Senior Region Manager at ST1 Norway highlights the importance of the green shift in the modern century.  Gas stations have now transformed into energy stations with new concepts constantly developing. See how ST1 / Shell at retail director Anita Sørlundsengen and retailer Thommas Landsem have created the energy station of the future with special emphasis on good customer experiences. 

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From market leader to challenger

Lars Kristian Lindberg, CEO / Managing Director at Gresvig emphasized that Gresvig was in need of a change or an advancement from a strong national brand to a more profitable international brand. Ole Sauar, Founder and CEO of Jollyroom stated that social media and influencers are a great method to grow your business in an international platform. Also having playing zones is another key idea. 

Also keep in mind that nordic countries who balance between socialism and capitalism have better economic efficiency and growth and thus, investors must carefully consider this aspect as well.

The key is to hit the emotional muscle

Sondre Gravir, CEO of the SATS group which is a leading fitness center chain in the Nordic region highlights that rather than focussing on getting in participants to the gym, the focus must be on getting the customer to the gym.

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New business models

Emilie Stordalen, daughter of Peter Stordalen and part owner at Strawberry Group is a charismatic and down-to-earth personality. She currently works to develop and operate digital platforms. The specialty about her is that she focuses on individual people such as Amanda, who is young and modern to Anders, who is a bit aged and classical which gives a more personalized experience to customers. 

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Another strategy used is that they tend to use low-quality locations such as basement rooms and give high-quality experiences like LED walls where you feel like you have woken up in a rainforest. These minute details are very important to create a positive image about your services or goods to the customers.

If you are interested in hearing more about the future of retail and IoT, feel free to contact me at bjorn.nostdahl@gunnebo.com 🙂

Commercial, Fashion, Gunnebo Business Solutions, Innovation, Microsoft Azure, Reflections, Retail

Microsoft Pivot: Envisioning the Future of Digitalization

May 29th, Satya Nadella CEO of Microsoft invited Nordic customers and partners for a small conference in Sweden, putting forth his ambitions for the future. This was Nadella’s first ever visit to Sweden, since stepping into the shoes of the company’s CEO. He touched upon issues of today’s tech world, but most importantly made Swedish people aware of his company’s firm belief in global digitization and describe what the future holds in store.

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Photo: Brian Smale/Microsoft

Self-discipline & excitement-seeking are two pillars of Satya’s personality, which has made this Indian-origin techy an intellect worldwide; from Asia to Europe we all treat him with the warm welcome.

Dinner with Microsoft’s ISV Team

A day before the Nadella’s address, I was invited for dinner and socializing hosted by Joanna and Martin from Microsoft. ISV stands for Independent Software Vendor and present individual or companies those who develop, market and sell software running on third-party hardware and software platforms such as the Microsoft.

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The term ISV is prominent in the tech world, used by most tech companies including Microsoft. To understand this from a layman’s term, when Microsoft was in the pursuit of developing windows, its partnerships with numerous companies/individuals to take their project forward both on the technical and non-technical front.

Next Morning, I had the opportunity to see some of the companies that has implemented their solutions on the Microsoft platforms at hotel Berns. There we received a pep talk to Microsoft and partners on the future and what efforts we need to put to make sure it is heading the right direction.

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The Microsoft tech show commenced in style with the tunes of Sweden’s most renowned DJ and Saxophone artist Andreas Ferrronato. His soul-soothing set the mood 🙂

The Volvo Group Digitizing its Operations

Hillevi Pihlblad from Volvo Group talked about how employees hate change and across the globe it is not easy to adapt to changes. Further, she illustrated how the Volvo Group has translated the changes into something positive and made people understand why embracing change can make their lives convenient.

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The H&M Group And The Use of AI To Serve Their Customers The Best

A senior executive and business leader of the H&M Group, Arti Zeighami talked about how the company is investing in Artificial Intelligence technology to tailor store offerings. Heading the Advanced Analytics and AI function, he gave a presentation on how H&M Group is implementing advanced algorithms to scrutinize sales an returns. Further, helped them more efficiently predict the needs and demands of their customers.

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Satya Nadella, The Man of the Moment Taking The Center Stage

Then, finally came the moment when Helene Barnekow introduced Microsoft’s CEO Satya Nadella. He was treated with great warm claps from the tech people present.

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Nadella who took over the job role of CEO from Steve Ballmer in 2014, is globally renowned for his dynamic leadership and a true passion for technology innovations. Prior to being the company’s CEO, Nadella was Microsoft EVP of the cloud and enterprise group.

His journey as a CEO has transformed Microsoft in terms of technology, also accentuating the company’s business model and corporate culture.  His emphatic leadership abilities steered Microsoft from struggling smartphone strategy to focus on other technical aspects such as the Augmented Reality and Cloud Computing.

He was also responsible for the purchase of Linkedin, a network of professionals for around $26.2. Did you know since taking over as CEO, company’s stocks have increased by 150%?

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The theme of the address by Satya Nadella was how communities and companies are uniting together for the digitized future of Sweden. This speech was largely about Microsoft’s own digital products and services, and how they can drive the world forward.

On his address to the tech people of Sweden, he threw light on various segments of technology-the Artificial Intelligence, Digital Transformation & Innovation. The American giant was in Stockholm to make a big announcement about setting up data centers in the country.

“We have the ambition that the data centers we build in Sweden should be among the most sustainable in the world, this is another step in strengthening our position as a long-term digitization partner for Swedish businesses”

Key Highlights from Nadella’s Address

“It would be wrong for me not to talk about trust. Because in the end, it is something that will be very important to us – not only to create new technology but to really assure that there is confidence in the technology that we create” he says on stage and continues “We need to create systems that handle personal data and security as a human right.”

Satya Nadella talked about the recent investment his company is making in Sweden. Among all the tech things, Microsoft two centers to be built in Gävle and Sandviken, they will be the most sustainable in the world.

“We will use one hundred percent renewable energy. They will also be completely free from operational emissions. We set a new standard when it comes to the next generation data center. It starts here in Sweden,” said Satya Nadella.

Apart from the data centers, Satya Nadella also highlighted the recent key partnerships during his speech at the China Theater. He further talked about company collaboration with Kiruna, this city makes use of Microsoft Hololens and AR to plan the city’s underground infrastructure.

Microsoft in Sweden

Satya Nadella, Microsoft’s CEO Put Forth Examples of Company’s Interest in the Country;

”There have been huge breakthroughs in the last three years, regardless of whether we are talking about object identification or voice recognition. This must be translated into infrastructure. Here we invest heavily.”

“Take Spotify who has a new very cool podcast tool. It lets anyone do their own podcast and they use our speech recognition to convert speech into text. The most interesting thing they do is that for anyone who wants to modify their podcast, they can enter and edit in writing and that the podcast then automatically changes. It shows how to use AI to make it more efficient”

Ending the Visit on a High

Later in the day, Nadella visited the Samhall innovation Days, a hackathon with the aim of “creating the conditions for people with a diagnosis within the autism spectrum to come into operation”, in the company’s press release.

Last summer, Microsoft announced two data centers in Norway to take their cloud computing services to entire Europe.

“By building new data center regions in Norway, we facilitate growth, innovation and digital transformation of Norwegian businesses – whether large companies, the public sector or some of the 200,000 small and medium-sized companies that together create the future of Norway,” said CEO Kimberly Lein-Mathisen in Microsoft Norway when the Norwegian plans became known.

Nadella declared that both the data centers will run on 100% renewable energy, so this project is in the welfare of the country, creating an ocean of newer opportunities for the locals. He also talked about his company’s association with the tech companies/communities in Sweden; one is the Kiruna city and other being the Sandvik Company.

The address at the China Theater in Stockholm by Microsoft’s top boss, Satya Nadella was like a pep talk. He gave his viewpoint on a variety of technology aspect. Most importantly, he announced the company’s program of building two data centers in this Nordic country.

Commercial, Fashion, Gucci, Gunnebo Business Solutions, Gunnebo Retail Solution, Louis Vuitton, Retail

Why luxury fashion brands like Gucci and Louis Vuitton are flourishing

I had a great opportunity to visit London during the weekend, to experience the luxury fashion industry first hand. Whether you want to spend big or just browse, London is a luxury shopper’s paradise, offering everything a discerning buyer could possibly want.

In my opinion luxury brands have been doing so well based on their capacity to react to social patterns. They have figured out how to submerge themselves into the culture and give new dimensions of access that, while retaining their validness and originality, to make their brands increasingly alluring to more clients.

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As a result, Luxury brands are increasing their revenue and results, and I think that this is very much due to their focus on the customer experience. They tend to be very commited to every product they put out, as well as being conscious of how the customers react to the product. Best in class are of course Gucci and Louis Vuitton that are among the fastest developing brands on the planet, with the extravagance design and their product developing by 42 percent since 2017.

Not surprisingly, most luxury brands are performing great in a rundown of 100 companies that includes technology, retail products, cars, and financial enterprises.

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Photo from press.gucciwatches.com Timepieces and Jewlerry Campaign 2015 with clean and simple styling and Madison Stubbington wearing a slip dress and a no makeup look.

Gucci’s brands are of course the fastest rising of any luxury style name on the rundown list, with up to 30 percent to $12.9 billion, while Louis Vuitton, grew 23 percent to $28.2 billion. The nine luxury brands on the list had a joint brand estimation of $105.8 billion and include other top brands including Hermes, Tiffany, and Co, Dior, and Burberry.

  • Louis Vuitton – $28.6 billion.
  • Chanel – $20 billion.
  • Hermes – $16.4 billion.
  • Gucci – $12.9 billion.
  • Cartier – $7.7 billion.
  • Tiffany – $5.6 billion.
  • Dior – $5.2 billion.
  • Burberry – $5 billion.

The global apparel market which does not include shoes and jewelry is worth $1.34 trillion a year in retail sales. Of this, a staggering $300 billion are luxury and premium brands.

How Did Luxury Brands Come This Far?

Building a fruitful business system infers the comprehension of how things are going to change over the span of time. The fate of retail is characterized by the most encouraging patterns we are watching today and is custom-made to the requirements of various gatherings of customers. The organizations which need to prevail in retail in 2030, ought to arrange their business procedures and specialized modernization remembering such significant thoughts as accentuating customers review and experience, guaranteeing flexibility for different target audiences, giving consideration, and remaining cognizant.

Luxury industries have proven to be ahead of all others in all of the aforementioned aspect, and that is one of the many reasons that they do so well. The society is winding up more to be more fashion conscious and its relation to an eco-friendly environment, and everyone is looking at ways to innovate fashion-wise. Consider, for instance, a luxury design brand Elvis and Kresse. The business began as an endeavor to handle a ten-million-ton of Leather scraps which should be discarded in London every year. Presently the organization delivers a full scope of calfskin from what recently was covered in the ground.

Purchasing a luxury item, being a Lois Vuitton NéoNoé bag or a Rolex Perlmutter is also viewed not only buying a bag and a watch – it is a feeling, an experience and a rush. Building on this rush is sharing the experience with Instagram followers, and this, in a nutshell, is how much value these brands have. Dopamine and oxytocin give the shoppers a rush all through the shopping experience.

This is particularly apparent when you are shopping, and you see something that you like (a dose of oxytocin is delivered to your bloodstream) and you get excited about it (a dose of dopamine is delivered to your bloodstream). Hence why these hormones are referred to as “happy hormones”.

Formula love concept. Research, search for an answer to the question what is love. Sheets of paper with chemical formulas of hormones by candlelight

Going to the store, you may not have planned to shop for anything at that moment or maybe you were planning on getting something else, but because your body is full these hormones, you end up buying it. This is what people generally call an impulse buy. This is also true when it comes to social media. You could be just browsing through your social media, and you may see something that attracts your attention at once, and then you get excited and feel the urge to find out more about that person, or place or thing. This is the reason why, even though you visit your social media platforms with the intention of just checking in, you end up spending hours on end on that platform at times.

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I have to say, going to the Tiffany & Co store at Harrods, you get the celebrity attention and a great feeling just browsing through all their fantastic jewelery. Buying the same piece online or in a common store does not give you the same rush.

Transformation and Progress in The Industry.

The Luxury merchandise industry has faced a number of changes in the course of the last two decades. Right now, fluctuating economic patterns, advanced digital scope and developing customer choices and tastes are making another competitive scene in the industry such that conventional methodologies are under danger. All things being equal, development in the luxury merchandise industry will proceed. However, to come up to a consistent and strong rate of offers development, luxury companies need to look up to new difficulties and manage them ineffectively.

There have been situations of incorporation between two companies or more, like Recently Michael Kors acquired Versace at the last quarter 2018 and Jimmy Choo in 2017, moving them up on the ladder of luxury brands. Keeping Versace chief executive Jonathan Akeroyd and creative director Donatella Versace on is of course extremely important to not devaluate the Versace brand. Such is the manner of competition that is experienced in the luxury industry today.

Ideally, the retailers wants to be focused on shoppers and their shopping journey and behaviors first, and then focus on staff and their activity separately. I am sure that the future retailers has a lot to gain by technologies like IoT, business intelligence (and even artificial intelligence and machine learning) and analysis when multiple data streams interact, for how long, and how they are related to purchase patterns and other performance metrics.

The future achievement of the business will also rely upon its achievement in penetrating and proactively connecting with the more youthful age. Luxury brands have in the past been known to restrict and separate themselves from clients. But compared to the state of things today, they now make use of social media and online networking. Luxury brands now see web-based life as “mass advertise”, yet today it has turned into an undeniably imperative advertising tool for them.

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Burberry is an amazing example of a luxury brand that utilized the power and impact of internet-based life. The brand commits around 60 percent of its advertising spending plan to computerized stages, connecting with clients on Facebook, Twitter, Tumblr, Pinterest, Instagram, and YouTube. Recently Louis Vuitton also started tagging their Instagram posts with the models private Instagram profiles, making the relationship between the customer, the brand and the model even more intimate.

After a great weekend I feel very confident about the future for both the luxury, premium and the regular fashion brands. I am sure that with the right approach the physical stores has great advantages and will also be vital for transitioning from on-prem via omnichannel to phygital.

If you are interested in hearing more about the future of fashion retail and IoT, feel free to contact me at bjorn.nostdahl@gunnebo.com 🙂