Page 38 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Consumer and Retail | Retail

Seamlessness and the In France alone, retailers opened 726 Action Points for
Insight
Insight
pick-up locations in 2013, many of them
new convenience
standalone locations with no store Brand Building
Spotlight
attached, according to Kantar Retail,
Retailers experimented with innovations which added that today, in France
Increased Retailers should to create seamlessness for consumers express “drive” pick up points outnumber 1. Grow share of life
More shoppers now who, conditioned by the Internet, hypermarkets. Kantar Retail calculates
using retailer apps
fulillment speed think like consumers, increasingly expect ininite choice, good that over 3,000 “drive” points exist As growth becomes more challenging,
changes customer outside the box
prices and rapid delivery service, with no throughout Continental Europe.
retail brands need to be about more than
rows of shelves selling products. Value
About half of US shoppers have expectations
extra charge for convenience.
propositions should embrace helping
smartphones, 77 percent of A store is a box. A screen is a box. Asda, Walmart’s brand in the UK, people improve and enjoy their lives. That
Auchan and other hypermarket brands tested same-day collection at several
Millennials. While social You need to be a seamless retailer Consumers don’t think in terms of expanded click and collect, an option for underground stops in London. can mean offering services like banking
networking is the most popular and work out how the various these boxes. Retailers need to get picking up in the physical store groceries Commuters placing orders in the or entertainment and other content.
use, almost a quarter of US away from that channel thinking,
shoppers use their smartphones channels do different things.
too. For example, a retailer called ordered online, which solves a problem morning could pick up their packages 2. Personalize
to visit retailer websites. And 17 The old rules no longer apply. Sneaker Boy has created on for people not home during delivery on their way home, in the parking area
Instant gratiication, being able to hours. The concept has evolved to of their suburban train stations. Tesco Knowing the customer well becomes a
percent of shoppers use a retailer enjoy merchandise immediately online model with a physical face. standalone, drive-thru locations that introduced a similar program as well and competitive advantage in times like these
app. The top three retailer apps after purchasing, was one of
The store, in Melbourne, offers customers conveniently pass on their also locations near certain libraries and when it’s dificult to differentiate. Loyalty
accessed are Amazon, Target one of every sku in every size. It’s
and Walmart. Target leads in
the beneits of a physical store. a browsing experience, where commute home.
other public facilities.
data and location based technology
the number of shoppers who Bricks and mortar merchants customers can try on shoes for enables retailers to engage customers
access the app while shopping played that card for years as
style and size, purchase on an The “drive” concept is less advanced in individually with communication, product
a competitive advantage over the US. However, trading space for offering and even price.
in the store.
online. Now, with variations of iPad, and have their merchandise speed, Walmart partitioned some of its Insight
click and collect, online delivery delivered to their home in a few 3,300 US superstores into smaller stores 3. Be seamless
Use of retailer apps
days. The store maximizes retail
has become exponentially faster. space and inventory eficiency. with adjacent distribution centers.
Retailers need to contend with all the
2012
Soon there will be little difference And it can rapidly update the The arrangement enables Walmart to complicated logistics of presenting
in fulillment time between execute local rapid grocery deliver and Successful brands
ordering online and walking into a range to keep pace with seasonal to strengthen proit by including products and fulilling purchases across all
7 physical space.
and fashion changes.
higher margin non-food items with channels, online and in physical stores. But help consumers
to the customer all of that activity should
Jessica Swinton
grocery deliveries.
be invisible so the brand seems seamless.
improve many
2014
Alasdair Lennox
aspects of their lives
Creative Director EMEA Consultant
Brand Union Brand clarity worked
FITCH Jessica.swinton@brandunion.com
4. Redeine convenience
17
Alasdair.lennox@itch.com
across categories
Consumers may want the extensive range Selling products is not enough

offered online but delivered with the speed anymore. Retailers need to offer
Whole Foods expanded its trend-setting of a physical store transaction. Innovative an overall value proposition
Popular retailer apps
approach to premium organic food in the click and collect and drive-thru locations that frames their relationship
US and continued to build the brand in help retailers satisfy these expectations.
with customers around gaining
the UK. The company added 32 new “share of life” rather than
stores, ending 2013 with a total of 362. “share of wallet.” To its Prime
Insights:
The stock price appreciated 20 percent.
customers Amazon is not just a
25
merchant with free shipping, but
Both Aldi and Lidl, the German-based, BrandZM BigData
also an entertainment content Both The Home Depot and Lowe’s were
private label hard discounters reported provider. Walmart is doing a lot well positioned to beneit from the
strong results. Lidl continued adopting around inancial planning. The strengthening of the US housing market.
12
brands on an in-and-out basis for trafic Creatively responding Home Depot and Lowe’s, home IKEA also gained business from the
driving promotions. With physical to consumer needs
improvement retailers, offer recovery of developed market economies
locations in 28 countries, it’s the most inancial services. Retailers need as well as from the aspirations of the
pan-European retailer. The Aldi brand to think about “share of life” in middle class in fast growing markets.
11
operates a total of almost 10,000 stores In retail, one of the most price-sensitive ways that are brand relevant.

from two divisions. In addition to categories, the leading brands score The strength of the local Australian
Europe, Aldi is present in Australia
particularly well in terms of value, being Anne Zybowski
market helped Woolworths and Coles. In
6
and the US where it also operates the “fair” to consumers. They’re thought to Vice President, Retail Insights contrast, Falabella, the pan Latin America
Trader Joe’s supermarkets, a Whole be considerably more “creative.”
Kantar Retail department store brand, produced
Foods competitor.
Anne.Zybowski@kantarretail.com
strong results but declined in brand value
Value 121 because of slower economic growth in
6
Chile, its home country, and a weakened
Fair 121 stock market.

Source: Kantar Retail ShopperScape® Creative 108
Millward Brown Digital. Percent of
smartphone owners who accessed retailer
apps in the last six months of 2013.
Source: BrandZM database All brands average = 100

74 BrandZM Top 100 Most Valuable Global Brands 2014
75