RSA RETAIL RESEARCH PAPER2 WEB HR.pdf

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RSA: THE RETAIL SERIES – THE POWER OF THE CONSUMER We have spent time over the last 18 months developing our understanding of what Retailers want and the issues they face. We know the Retail market is forever changing and we are committed to working with our Retail customers and brokers to continuously understand their changing needs. This paper is the second in a series of short papers dedicated to what we believe are some of the most important challenges and opportunities facing Retailers. We hope that you will fi nd it useful and that it will provoke ideas for your business. This paper focuses on the Power of the Consumer and has been produced by RSA Global Europe in conjunction with Retail customers, brokers, experts and researchers in the fi elds covered. Look out for the next Retail Research Papers on: • Sustainability Challenges for Retailers • The Future of Retailing • RSA and Retail Insurance We hope you will fi nd this series of papers interesting and, as ever, we would welcome any feedback you have or suggestions for topics you would like covered in the future. If you would like to contact us about these Retail Research papers then please email: smc.europe@uk.rsagroup.com. CHRIS SMITH Written with the support of Liz Machtynger of Customer Essential.
THE POWER OF THE CONSUMER UNDERSTANDING THE CONSUMER IS AN ONGOING JOURNEY FOR US ALL. Many external factors lead to changes in consumer behaviour, meaning research papers and journals from a year ago rarely scratch the surface of the Retailing challenges of today. This paper is drawn from a number of recent sources and papers particularly focused on the European marketplace. The paper is split into the following fi ve themes: 1. The world is getting smaller 2. The changing face of our consumer population 3. Economic challenges and the impact on consumers 4. Do consumers really care where they buy? 5. Which Retailers are consumers voting for? A SNAPSHOT OF THE CHANGING CONSUMER There have been some major changes over the past fi ve years that have led to a different set of consuming habits worldwide: • The population has seen a shift in the shape of family units and a move to more urban living. • People are living much longer than before, in particular in Europe. • Females are playing a much more important role and have more fi nancial control than ever before. • The fi nancial situation is volatile worldwide and across Europe. These pressures are having a direct impact on the way that consumers are spending on basic necessities and is reducing any discretionary spend they may have. • Consumers choose to buy from Retailers based upon their own priorities. Their priorities are more strongly focused than ever before on ‘value for money’ and ‘quality’ of their purchases. • Retailers wishing to hold on to their consumer base need to work hard to build trust and deliver consistently across the channels they operate in. • Consumers are more demanding in both product selection and service delivery. It is of paramount importance, therefore, that Retailers stay connected with their consumers to keep on top of their priorities. The power of the consumer to change the way they spend and the way they communicate with others about their purchases has never been clearer. “Today the consumer has power like never before. Facilitated by technology, the humble shopper can reach an audience of thousands – or even millions – to praise, complain or merely muse about the service or products they get from Retailers. For the Retailer this makes brand reputation a challenge. Indeed, such is the power of consumers that a Retail brand is no longer what a Retailer says it is, it’s defi ned by what consumers feel and say about it. Naturally, all of this means speed of response, appropriateness of response and visibility of response are now critical. Across most of the Western world Retail is a mature business, and like most mature businesses that means it is competitive. This ultimately gives the consumer choice. In recent years, thanks to the Internet, this choice has been expanded beyond national boundaries and shoppers can use Retailers from around the world. With choice comes power. It is easier than ever to punish Retailers that get it wrong by simply taking custom elsewhere. The result is that all have had to up their game, become more nimble and reinvent their organisations to be truly customer centric.” Neil Saunders Managing Director of Conlumino Retail experts
Page 1: PAPER 2: THE POWER OF THE CONSUMER
Page 5 and 6: THE CHANGING FACE OF OUR POPULATION
Page 7 and 8: ‘LIFELONG’ IS FOR LONGER Improv
Page 9 and 10: YOUNG PEOPLE ARE STRUGGLING TO GET
Page 11 and 12: WILL THEY HAVE THE RIGHT PRODUCTS/P
Page 13 and 14: WILL THEY OFFER ME A BENEFIT FOR BU
Page 15: APPENDIX List of Useful Sources •

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