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1、uncommon senseTMNovember 2023OC&C RETAIL PROPOSITIONINDEX 2023RPI 2023 Teaching new dogs old tricks02|OC&C RPI 2023 Teaching new dogs old tricksTHE RETAIL PROPOSITION INDEX IN NUMBERSThe OC&C Retail Proposition Index answers this through the sectors most comprehensive analysis of consumer attitudes.
2、What causes a shopper to choose one retailer over another?Consumers surveyed in 2023Countries included in 2023 surveyRatings analysed since launch201062M42,4779685Number of retailers ratedFirst LaunchedOC&C RPI 2023 Teaching new dogs old tricks|03What we include in this report1.THIS YEARS RANKINGS2.
3、HOW THE CHANNEL POWER STRUGGLE HAS SHIFTED 3.A NEW SET OF IMPERATIVES FOR RETAILERS STRATEGIES IN THIS 13TH EDITION OF OC&CS ANNUAL RETAIL PROPOSITION INDEX(RPI),WE HAVE ASKED 42,000 SHOPPERS GLOBALLY HOW THEY RATE THE PLACES THEY SHOP AND WHAT DRIVES THEIR DECISIONS ABOUT WHERE AND HOW THEY BUY.Thi
4、s years report has clearly been written against the backdrop of a challenging market,with pressure on retail margins and consumer wallets.Despite this pressure,we are encouraged by the positivity of shoppers and the ability of compelling retail propositions to differentiate themselves in the eyes of
5、 the customer with points of proposition difference being more exaggerated in this years report vs.ever before.There is also increased consumer emphasis on value,which is unsurprising given the macroeconomic context.Keeping a keen eye on how you are delivering value for money will be critical over t
6、he next 12 months,but importantly this needs to be done without putting at risk longer term programmes of focus and differentiation e.g.around sustainability.This report provides the rankings of this years UK winners against each area of the retail proposition and explores some of the key themes we
7、see in this years data.Our conclusion is that winning over the next 12 months will require retailers to dust off some old tricks,and re-focus on core skill sets that may have been de-prioritised over the past decade.If you would like to discuss further please get in touch with the OC&C retail team o
8、n .Introduction04|OC&C RPI 2023 Teaching new dogs old tricks1.This years rankings Top of their categoryRank RetailerShopper rating1Amazon89.62eBay87.73Lookfantastic86.94IKEA86.75E86.66Shein85.97S85.38AliExpress84.99ASOS84.810Waterstones84.74.WIDE CHOICE OF PRODUCTSRank RetailerShopper rating1Card Fa
9、ctory86.32Aldi85.13Home Bargains83.64Lidl83.55Shein81.86Vinted81.67Primark81.28George at ASDA81.19IKEA80.710Poundland80.21.VALUE FOR MONEYRank RetailerShopper rating1M&S Simply Food88.42John Lewis86.73Waitrose86.74Waterstones86.65Dr.Martens85.66Gymshark85.47Lakeland84.38Majestic Wine84.39Lookfantast
10、ic84.010Nike83.85.PRODUCT QUALITYRank RetailerShopper rating1Waterstones83.62Lookfantastic83.53Majestic Wine82.14E81.95M&S Simply Food81.26Card Factory80.87S80.78Ocado80.59Moonpig80.510IKEA80.32.SUITED TO MERank RetailerShopper rating1John Lewis84.12Dr.Martens83.73Waterstones83.54M&S Simply Food83.4
11、5S82.66Moonpig82.07Nike81.88Ocado81.79Lakeland81.510Lookfantastic81.56.RELIABILITYRank RetailerShopper rating1Amazon86.12Waterstones84.43Pets at Home83.64Moonpig83.55ASOS83.26Card Factory83.17G83.09eBay82.810M&S Simply Food82.63.EASY TO SHOPOC&C RPI 2023 Teaching new dogs old tricks|051.This years r
12、ankings Top of their categoryRank RetailerShopper rating1Card Factory85.92Shein84.43Aldi84.04Poundland83.65Lidl82.96Home Bargains82.77Primark82.48AliExpress82.29Poundstretcher80.810Vinted80.47.LOW PRICESRank RetailerShopper rating1Zara84.22Dr.Martens83.63Gymshark83.44ASOS83.15Selfridges82.66Superdry
13、81.47Shein80.28END79.99Schuh79.510All Saints78.88.FASHIONABILITYRank RetailerShopper rating1John Lewis81.32Majestic Wine80.93Richer Sounds79.94Lush79.95Waterstones79.36Ocado77.57Body Shop77.38Holland&Barrett76.99M&S76.710S76.49.CUSTOMER SERVICERank RetailerShopper rating1Lush79.52Body Shop79.43Depop
14、75.64Vinted75.55Back Market74.66Gymshark73.87Naked Wines72.78IKEA72.39Dr.Martens72.210Weezy71.9Rank RetailerShopper rating1Tesco75.12Boots74.23Sainsburys73.94Space NK70.15Body Shop68.16Naked Wines67.67Holland&Barrett66.38Sephora66.19Matchesfashion65.610Pets at Home65.311.SUSTAINABILITY 12.LOYALTY SC
15、HEMERank RetailerShopper rating1Hobbycraft81.72Vinted80.13Lush80.14E79.75Space NK79.66Waterstones79.47IKEA77.78Gymshark77.69Shein77.310Lookfantastic77.210.FUN TO SHOPMethodologyThe OC&C Retail Proposition Index is a major piece of international consumer research measuring shopper attitudes and perce
16、ptions towards the worlds leading retailers.Around 42,000 consumers globally are asked to rate the retailers they have shopped on the strength of their overall proposition,and then to score the key elements of that proposition(Price,Range,Service,etc).These results are then used to compile a ranking
17、 of c.700 retailers from across the globe.Since the Retail Proposition Index was first launched in 2010,we have analysed over 62m ratings.Now in its 13th year,the index is a powerful tool to understand how shopper opinions and priorities have changed over time,and to identify the key long-run trends
18、 driving shifts in the retail landscape.Shopper rating indexed 0-100.Based on shoppers visiting or purchasing from that retailer in the last 3 months.Source:OC&C Retail Proposition Index 2023,OC&C analysis.06|OC&C RPI 2023 Teaching new dogs old tricksOC&C RPI 2023 Teaching new dogs old tricks|07RETA
19、IL E-COMMERCE PENETRATIONBy Country 2010-203F(%)30%10%15%20%25%5%0%200000222023FUKUSAChinaGermanyFranceSpain2.The channel power struggle has shiftedRETURN OF THE STORE:HOW CHANNEL DYNAMICS ARE SHIFTINGThe power balance is shifting back towards retailers wi
20、th a physical store footprint and is sparking the next revolution for the pureplay model.The acceleration towards e-commerce to drive growth has markedly slowed,and pureplayers need to be more creative to re-strengthen their position with shoppers.Across countries,the pandemic shone a light on the e
21、xtent to which spend could migrate online.However,this was less extreme than many expected;the step-change shift in e-commerce penetration has since seen a reset at a higher rate.We are now seeing much more stability in the sales profile of physical space.Consumers continue to migrate online albeit
22、at a slower pace and in increasingly omnichannel ways.They favour retailers who can serve their flexible needs.As the pace slows,online players can no longer rely solely on an ever-increasing addressable market to drive growth.Consumers are increasingly finding single-channel retail models constrain
23、ing,with advantages previously placed on digital-only set-ups struggling to cut through.08|OC&C RPI 2023 Teaching new dogs old tricksNot only has there been a slowdown in eCommerce growth rates for pureplays to contend with,but there has also been a fall in customer ratings across a range of proposi
24、tion elements.Ratings for online-only models are,on average,gradually declining,whilst those for multichannel players remain consistently high causing a widening of the ratings gap with omnichannel retail since 2018.Digital pureplayers are finding it harder to sustain their customer affection and ap
25、peal.AVERAGE OVERALL PROPOSITION RATING BY BUSINESS MODEL TYPE1UK 2012-23(Overall rating/100)77.577.076.576.077.577.076.576.076.020000.Shopper rating indexed 0-100.Based on shoppers visiting or purchasing from that retailer in the last 3 months.Using fixed
26、 cohort of brands with completeKPC data since 2012.Ratings have declined for pureplay retailers and are now below that of multichannel retailers&with the gap widening+1.2-2.0MultichannelPureplayRatings for online-only models are,on average,gradually declining,whilst those for multichannel players re
27、main consistently high causing a widening of the ratings gap with omnichannel retail since 2018.OC&C RPI 2023 Teaching new dogs old tricks|09DIFFERENCE IN HOW CUSTOMERS ARE RATING PUREPLAY AND MULTICHANNEL MODELS1UK 2012-2023(Purepay score multichannel score)MOST IMPORTANT PROPOSITION CRITERIA TO CU
28、STOMERS1#1TRUST#2EASY TO SHOP#2RELIABILITY+8+7+6+5+4+3+20-2+1-1-3-4-5Pureplays higher rated than multichannelPureplays lower rated than multichannel200202022Wide choiceof productsEasy to shop2Value for moneyCustomer serviceProduct qualityTrust1.Shopper rating indexed 0-100.Based on shoppe
29、rs visiting or purchasing from that retailer in the last3 months.Using fixed cohort of brands with complete KPC data since 2012.2.Easy to Shop begins from 2015 figure due to first being included in RPI in that year.2012We see a particularly sharp decline in ratings for 2 of the top 3 considerations
30、for overall ratings:trust and ease of shopping,contributing towards the growing gap in overall proposition rating.10|OC&C RPI 2023 Teaching new dogs old tricksSHARE OF INTERNET USERS WHO HAVE PURCHASED ONLINE IN THE PAST2022(%of internet users)At the same time we see this ratings gap widen,growth vi
31、a digital channels is likely to remain harder to come by.Firstly,the vast majority of internet users have now sampled online,and for many retailers,they may have already served their target customer segments.We are also seeing escalating costs of acquisition as the fight for digital real estate and
32、share of screen has re-accelerated post Covid.Google and Meta saw their cost per thousand impressions increasing 25-30%2020-23.This creates a shift in priorities for retailers moving forward.It implies a re-balance towards growing share of customer wallet and searching for new target customer segmen
33、ts,rather than a focus on attracting new front of funnel customers which are becoming increasingly hard to recruit.ItalySpainPolandAustraliaUSAGermanyFranceSwedenUKNetherlands82%76%74%73%92%92%88%83%72%57%79%COST PER THOUSAND IMPRESSIONS EVOLUTIONGlobal 2018-2023($per mille)0123456Q32023Q12023Q32022
34、Q12022Q32021Q12021Q32020Q12020Q32019Q12019Q32018Q12018Pre-covidIncrease partially from tighter data restrictions reducing ability to measure effectiveness:iOS.14“Do not track pop-up”is estimated to have increased CAC by 20-30%1.CAGR on annual average of Q1-Q4 each year(excepting 2023 which uses YTD
35、average Q1-Q3).2.Growth rate from Q3 22 Q3 23.OC&C RPI 2023 Teaching new dogs old tricks|113.Creating a new set of imperatives for retailer strategiesA SET OF STRATEGIES NEED TO BE DUSTED OFF BY RETAILERS AS THEY SEARCH FOR NEW WAYS TO GROW:1.Optimise your physical footprint2.Re-focus on driving sha
36、re of wallet and loyalty 3.Sustainability remains important despite cost pressure4.Deliver growth with a clear,differentiated model12|OC&C RPI 2023 Teaching new dogs old tricksOC&C RPI 2023 Teaching new dogs old tricks|133.1 Optimise your physical footprintRETAILERS MUST OPTIMISE THE ROLE OF THEIR P
37、HYSICAL FOOTPRINT TO MAXIMISE VALUE.MOST IMPORTANT DRIVERS OF RETAIL SCORES ON STORE EXPERIENCE1,2Global 2023(indexed 100=Store look and feel)Ideas andinspirationfor whatto purchaseUse oftechnologyin store/salesprocessSpeed ofcheckoutin storePost salesserviceProducts/informationrelevant to meEase of
38、returnprocessCustomerservicein-storeEase offinding theproductI wantStore lookand feel1.You said you shopped in-store from BRAND in the last 3 months.How would you rate BRAND on each of the following?2.Please rate Brand on the following criteria 1=Poor,5=5 Excellent;Overall Rating.Ease metricExperien
39、tial metricOther75686556As consumers place increasing focus on ease of shopping,retailers must optimise the role of their physical footprint to maximise value.They should carefully consider what the right mix of store formats is,as well as catchment presence,to improve reach and performan
40、ce.Retail space is serving both functional and experiential needs there is not a one size fits all answer to the role of physical spacePhysical space can play multiple roles for retailers,from driving an experiential offering to providing a more efficient and convenient experience for consumers.Reta
41、ilers need to re-focus on delivering against the right missions,in the right categories,in the right locations.14|OC&C RPI 2023 Teaching new dogs old tricksCUSTOMER PURCHASE JOURNEY BY CHANNEL2221Overall1.Thinking about the last time you purchased from BRAND,how did
42、you do each of the following?Offline onlyOnline onlyHybridOverall,global 2023(%of purchase journeys by channel user)By stage in the process journey,global 2021-23(%of step in the purchase journey by channel usedInspirationAvailabilityCompareAdviceDeliveryReturns28%40%39%39%42%42%42%39%39%39%40%43%44
43、%38%37%35%37%40%40%12%12%12%11%11%11%12%12%12%12%12%11%11%11%10%14%13%14%48%48%48%46%46%47%49%49%50%48%45%44%51%53%54%50%47%47%23%39%PHYSICAL STORES CONTINUE TO PLAY A CRITICAL ROLE ACROSS THE CUSTOMER JOURNEY,FROM IDEATION TO FULFILMENT AND POST-SALES CARE.Gymshark opened a 18,000 sq ft Regent Stre
44、et location in Oct 2022 focused on retail,community,lifting The store includes a Sweat Room fitness studio and holds weekly classes for Gymshark members The Hub portion of store hosts podcasts,live events,and Sunday Brunch clubs for community members Shein has adopted a Pop Up model in the past Thes
45、e temporary stores are set up for few days,generating buzz by inviting influencers and offering prizes and discounts to attendees Shein recently toured a glam bus from Birmingham to Bristol,previewing spring collection and offering manicures to customersOC&C RPI 2023 Teaching new dogs old tricks|15R
46、etailerStore ConceptDesignRanked#1 for Store Look&Feel Unique store designs inspired by global culture and art Designed to inspire purchases while creating sense of discoveryRanked#8 for Store Look&Feel Steers away from traditional department store shop within shop using open store design Blends bra
47、nds to create a seamless browsing experienceRanked#3 for Easy to Shop Omnichannel experience focused on speed and convenience Features include one-hour store click-and-collect,video consultations with staff,and same-day deliveryRanked#12 for Easy to Shop Proposition emphasises simplicity and quality
48、 for all Stores are well-organised and include auto-scanning self-checkouts to reduce queueingStore Look and FeelEase of ShoppingCASE STUDIESWINNING RETAILERS ON STORE LOOK&FEEL AND EASE OF SHOPPINGTHE NEXT WAVE OF ONLINE TO OFFLINE MODELS16|OC&C RPI 2023 Teaching new dogs old tricksTHE DAYS OF SCAT
49、TERGUN ACQUISITION STRATEGIES ARE BEHIND US.RISING ACQUISITION COSTS HAVE MADE DRIVING LOYALTY AND GROWING SHARE OF WALLET WITH EXISTING CUSTOMERS ESSENTIAL.As we look forward,success increasingly hinges on driving valuable long term relationships with customers.In this vein,we have seen increasing
50、focus on formal loyalty schemes as the answer.But this is only part of the story.Fundamentals such as value for money and delivery on promise remain critical considerations for consumers,as wavering levels of confidence and high inflation have driven them to brands they trust.Therefore as retailers
51、aim to drive retention and share of wallet,they should consider the full range of levers available to them.3.2 Re-focus on driving share of wallet and loyaltyOC&C RPI 2023 Teaching new dogs old tricks|17There are several tactics,which retailers will be familiar with,to try and increase the spend of
52、existing customers.Successful strategies here are not revolutionary these are tactics which have been employed consistently by retailers over time and represent important factors of many retailers core proposition.Tactics EmployedRetailer SpotlightTailored Loyalty ProgramsRewarding recurring spend v
53、ia prizes,points and promotions to drive higher average purchase value and frequency.Tesco Clubcard is the UKs#1 rated loyalty scheme,combining loyalty points with regular discounts.Membership ProgrammesLoyalty schemes that require a subscription or up-front fee to join,providing more valuable rewar
54、ds for recurring spend.On Naked Wines scheme,ranked#7 in UK for loyalty,members save 25 every month to spend on discount wine.Broaden Suite of ServicesExtend services on offer to deliver more value to customers,this could involve developing rental or second hand offers,or adding ancillary services i
55、n-store or online.John Lewis services range from home design,personal styling,financial credit,to an online gift list for presents.CRM and Customer DataUsing CRM/customer data to better understand and target existing consumers with marketing or promotions.Shifting marketing focus towards actively ma
56、naging returns from cohorts of existing customers vs.being obsessed with recruiting,or re-recruiting the next cohort.In 2022,M&S acquired Thread a fashion marketplace to improve online personalization and recommendations.Alternative Acquisition ChannelsAs budgets are squeezed,retailers are using org
57、anic/unpaid channels,or shifting to cheaper paid channels,outside Google,Amazon and Meta.Depop has benefited from TikTok fashion trends,with over 2.9m likes on platform(more than double H&Ms 1.1m).Successful strategies here are not revolutionary these are tactics which have been employed consistentl
58、y by retailers over time18|OC&C RPI 2023 Teaching new dogs old tricksDriving value through loyalty schemes will involve consumers accruing rewards as they shop.We see winners in the loyalty scheme space pivoting to flexible,real-time rewards that provide consistent benefits to frequent shoppers via
59、points or customised discounting.In a world where loyalty schemes are becoming synonymous with promotions and yo-yo discounting,consumers value consistency and personalisation.TOP 3 DRIVERS OF TOP-RATED LOYALTY SCHEMES1,2LOYALTY POINTS TO SPEND IN-HOUSEACCESS TO MEMBER-ONLY PRICESPERSONALISED DISCOU
60、NTSWe see formal loyalty schemes as being particularly relevant in high-frequency categories where consumers who shop consistently can see their rewards accruing real-time and feel more direct benefits.RELATIVE IMPORTANCE OF LOYALTY SCHEME TO CONSUMER DECISION MAKING BY CATEGORY1,2Global 2023(indexe
61、d,grocery ecommerce=100)Platforms and MarketplaceBooksellers and StationersGeneral MerchandiserDiscountersHome and GardenHomewareClothing and FootwearFurnitureConsumer ElectronicsDepartment StoresSports and OutdoorsHealth and BeautyGroceryPetsGrocery ecommerce100%shopping regularly3141414
62、High frequency categories show high rates of loyalty scheme importance41%15%17%37%26%20%20%24%19%16%23%20%29%54%37%Although discounters and general merchandisers are higher frequency they often promote everyday low prices rather than loyalty schemesREWARD IN HIGH-FREQUENCY CATEGORIES1.Wha
63、t is the main reason you shopped with BRAND?2.Correlation of KPC value to purchase conversion rate by brand.3.Q:How would you characterise the frequency with which you shop at Brand?A:I shop there regularly at least a couple of times a month.OC&C RPI 2023 Teaching new dogs old tricks|19CASE STUDY#2#
64、3#15#11Value for moneyLow pricesTrust Overall rating Aldi doesnt have a traditional loyalty programme like many grocers relying on consistently delivering quality products at low prices to generate loyalty Foregoing a loyalty scheme speeds up the checkout process and makes it easier to shop Aldi rel
65、y on non-traditional channels (e.g.social media)and buying teams to understand consumer demandRANKINGS20|OC&C RPI 2023 Teaching new dogs old tricks3.3 Sustainability remains important despite cost pressureSUSTAINABILITY IS ETCHED INTO THE RETAIL AGENDA AND IS INCREASINGLY BECOMING PART OF CONSUMER R
66、ELATIONSHIP-BUILDING.You could be forgiven for thinking its been deprioritised in consumer decision-making as wallets have been squeezed following the cost-of-living crisis.However,there remains a core group of consumers who make purchase decisions based on sustainability,particularly amongst younge
67、r generations.ROLE OF SUSTAINABILITY IN CONSUMERS SHOPPING DECISIONS OVER TIMEGlobal 2021-23SHARE FOR WHOM SUSTAINABILITY HAS A LARGE IMPACT BY CONSUMER TYPEGlobal 2023(%)2023202220211.Which statement best describes your attitude to environmental and social factors?Large impactMedium impactLittle to
68、 no impactSustainability has a:Sustainability is critical to me,and I only shop with brands thatI know to be sustainableI care about sustainability and I actively try and shop withsustainable brandsI care about sustainability,and I am conscious of it when I shop,but it doesnt always change my behavi
69、ourI care about sustainability,but it doesnt really impact how I shopI dont really think about sustainability at the momentSustainability is not important to me12%10%8%25%24%23%31%32%32%9%10%11%6%6%6%17%19%19%Baby BoomersGen XMillennialGen ZGenerations35%38%30%25%OC&C RPI 2023 Teaching new dogs old
70、tricks|21Taking your foot off the pedal with sustainability is incredibly risky,as building reassurance is all about consistency.In the near-term future,those that fall on the wrong side of the sustainability agenda will struggle.For the most ESG-conscious customers,social and environmental factors(
71、such as CO2 emissions and responsible sourcing)are front of mind.We see retailers committed to their sustainability agenda being recognised and rewarded for this behaviour by consumers.MOST IMPORTANT ESG CONSIDERATIONS1 FOR THE ESG-CONSCIOUS2UK 2023(%of ESG-conscious respondents ranking consideratio
72、n in top 3)CASE STUDIESDifferentiationInitiativesExamples20212023 Introduced green grape logo to spotlight sustainable producers Run Green wings:a community forum for members to discuss sustainability within the wine industry Change packaging to reduce weight and emissions in transport increase use
73、of recycled/recyclable materials Partnerships with multiple charities In 2020 laid out plan to focus on improving ESG element of operations E.g.responsible materials sourcing and working with Carbon Trust to decarbonise the value chain Launched Resouled in 2023 in partnership with Depop to reduce vo
74、lume of boots going to landfill Customers send worn boots which are repaired and re-sold on Depop#53+13 Places+46 Places#22#7#9Fair andequitableboardstructureandrenumerationEthicalcorporatedecisions/avoidingcorruptionEfforts toreducewaterusageDiversity,equalopportuntiesandnon-discriminationPositivec
75、ommunityimpactEthicalsourcingof rawmaterialsor inputsDatasecurityandprivacyReduceenergy/carbonemissionsGoodlabour practicesandhumanrightsEfforts toreduce useof plasticandpackagingEfforts toreducewaste1.Thinking about actions retailers are taking on environmental,social and governance(ESG)factors,whi
76、ch of the following do you think are the most important?2.Which statement best describes your attitude to environmental and social factors?ESG-Conscious:Options that indicate caring about sustainability:Less-ESG-Conscious:Options that indicate limited interest in ESG considerations.46%44%38%38%26%25
77、%20%18%17%GovernanceSocialEnvironmental17%10%Importanceto relativeaverageLess important than averageMore important than average22|OC&C RPI 2023 Teaching new dogs old tricks3.4 Deliver growth with a clear,differentiated modelTHE CHARACTERISTICS OF THE WINNING FUTURE RETAIL MODELS REMAINS FAIRLY INTAC
78、T,DESPITE MARKET DISRUPTION IN RECENT YEARS.OC&C RPI 2023 Teaching new dogs old tricks|23To drive performance,players should focus on delivering against a targeted operating model to avoid getting caught in the middle.We see four winning models emerging:Platform,Customer Solution,Brand,and Source&Su
79、pply.Each of these models have distinct strategic imperatives to drive differentiation.Retailers must focus on building out the most important elements of the proposition.KEY CHARACTERISTICS OF MODELSKey CharacteristicsDifferentiationStrategic PrioritiesExample BrandsPlatformRetailers with functiona
80、l capability that is increasingly being leveraged to expand footprint these started as pureplays but the model is increasingly multichannel in nature.Leverage investment in fixed assets,capabilities and customer base.Establish front of mind awareness to become the indisputable starting point for pur
81、chase journeys Disintermediate search engines to be a first destination for advice,inspiration and ideation(even where customers do not convert)Embrace the subscription model to lock-in consumersCustomer SolutionFocus on offering additional customer services&outcomes alongside traditional retail.Cre
82、ate value through customer services.Product curation alone is no longer sufficient value-add for consumers Retailers must deliver outcomes via a proposition that serves an end-to-end consumer need across an ecosystem of products and adjacent services Embed subscriptions and bundling into the offer t
83、o solidify customer position within the ecosystemBrandOperate own brand exclusive physical and/or online stores with individual brand identity core to retailer positioning.Become truly distinctive.Align customers to proposition by generating brand distinctiveness and customer clarity around mission
84、Winners will generate a connection to customers via authenticity and consistency across messaging;product quality;and across all customer touchpoints no matter how or where consumers interact with your brand Source&SupplyValue focused retailers;often providing products from suppliers without D2C cha
85、nnels.Leverage scale and integration to drive value.Deliver unmatched value through vertical integration,scale economies and operational efficiency For forward-thinking players,adopt an end-consumer mindset to deliver a proposition that serves core needs,rather than a singular product/service Levera
86、ge scale to drive share in these ancillary products or services24|OC&C RPI 2023 Teaching new dogs old tricksCUSTOMER RATINGS OF DIFFERENT MODELS As we look at our data on how consumers are rating retailers across proposition elements we increasingly see them recognising and rewarding retailers for t
87、heir spikes.Rather than being retail generalists,the winners are are those with clearer points of difference.As the retail landscape evolves,we see these different shaped propositions emerging which are winning in their own way.Retailers should assess their own internal core competencies and their t
88、arget audience to understand which model best fits their long-term strategic goals.It is more critical than ever to be focused on how you execute against these to migrate to the higher ground and avoid being stuck in the middle.Platform proposition focuses on breadth,with Amazon winning on Product R
89、ange offeredNike outperforms on Quality,Trust and Products Suited to MeLidl prioritizes Low Price and Value for Money for customers B&Q has spikes in Trust and Quality of Relevant productsPLATFORMBRANDSSOURCE&SUPPLYCUSTOMER SOLUTIONWide choice of productsProducts that are suitedto meTrustCustomer se
90、rviceLowpricesValue for moneyProduct qualityWide choice of productsProducts that are suitedto meTrustCustomer serviceLowpricesValue for moneyProduct qualityWide choice of productsProducts that are suitedto meTrustCustomer serviceLowpricesValue for moneyProduct qualityWide choice of productsProducts
91、that are suitedto meTrustCustomer serviceLowpricesValue for moneyProduct qualityOC&C RPI 2023 Teaching new dogs old tricks|254 Imperatives for Retailers Four imperatives for retailers wanting to win in tough times.Optimise your physical footprintBe clear on what the role of physical space is for you
92、r business model.Aim to facilitate shopping however your customers prefer.Actively manage your footprint to go for the best space in the best catchments.Look for flexibility in following customer trends,curating the in-store experience to deliver convenience and provide inspiration,ideation,and ente
93、rtainment.Re-focus on driving share of wallet and loyaltyFragile consumer confidence and high inflation are driving customers to retailers they trust.Build trust through providing quality products at consistently affordable prices.Alternatively,foster loyalty through successful loyalty schemes offer
94、ing regular rewards for frequent shopping and driving incremental value.Sustainability remains important despite cost pressureDespite income pressure,there is a core group of consumers for whom sustainability considerations impact purchase decisions.For the most ESG-conscious customers,social and en
95、vironmental factors are front of mind.Do not understate the importance of sustainability in the near-term retailers who do so will likely suffer both in consumer opinion and financially.Deliver growth with a clear,differentiated modelFocus on delivering against a targeted operating model to avoid ge
96、tting caught in the middle.The emerging winners span four models,for whom performance varies by category and target proposition.Assess internal core competencies and target audience to understand which model best fits long-term strategic goals.#1#2#3#4OFFICESBelo HorizonteBostonHong KongLondonMelbou
97、rneMilanMunichNew YorkParisRotterdamSo PauloShanghaiSydneyWarsaw OC&C Strategy Consultants 2023Trademarks and logos,including Uncommon Sense,are registered trademarks of OC&C Strategy Consultants and its licensors.To find out more about how consumers rate a particular retail brand,or for any questions about this report please get in touch:Matt Coode,Partner Tom Charlick,Partner uncommon senseTM