[3] FITCH_New_Customer_Journey_DEL_mindstates - UNDERSTANDING THE NEW CUSTOMER JOURNEY Im just popping to the shops FROM SIMPLE TO SPLINTERED TO

[3] FITCH_New_Customer_Journey_DEL_mindstates -...

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“I’m just popping to the shops” FROM SIMPLE TO SPLINTERED TO SEAMLESS UNDERSTANDING THE NEW CUSTOMER JOURNEY In the beginning, there were shops. Places we visited to have a look round, chat with an assistant, and buy stuff from the rows and racks of stock vying for our attention, we knew what we needed and a shop was the place to get it. This model worked pretty well for centuries, and was still the relevant scenario less than 20 years ago when everybody – retailers, manufacturers and shoppers – seemed to know where they fitted in. Life was SIMPLE. Time moves fast and Y2K seems like yesterday – our computers didn’t crash but the dotcom bubble did burst. In 1991, Tim Berners Lee made the first internet software available, by ’95 Amazon and eBay were launched, BOO.com came and went in a matter of 18 months (along with $135m of investment) and by 2004, nine years after its humble beginning, Amazon made its first full year of profit. During this time we were finding that shopping was also a pastime practised while sitting at home with a PC, and popping to the shops was a mere click away. THE INTERNET IS BORN
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For retailers and brands, the sands were clearly shifting as they worked out how to operate within this internet-enhanced world. When Amazon launched, less than 1% of the world was using the internet; 16 years later that has risen to 30% (1) . So the world got a little less SIMPLE, but a whole lot more fun. Now conventional wisdom suggests that these are competing forces – that the more we shop online, the less we’ll buy in store. Not so, according to the statistics. While the global e-commerce market is predicted to grow by 19% this year to $680bn and to $930bn by 2013 (2) , since the internet arrived, the total amount of retail sales space has increased over 200% from 40m² (2002) to 130m² today (3) . Granted, the bulk of new retail real estate is in emerging markets whilst the fastest growth in internet sales is in developed markets, but there is sufficient overlap to suggest a contradiction. So is this a supreme act of defiance from the ‘build it and they will come’ developers, or are perhaps the internet and online channels more complementary than we’ve been led to believe? More on this later. Now – more game changing still – shoppers can buy things while sitting on a bus. Mobile internet and the emergence of the ‘always on’ consumer means the way shoppers think about, validate and act on their purchasing decisions has become SPLINTERED. Analysts estimate that by 2015 almost all mobile devices sold will be smart. Juniper Research estimates that by 2016 over 1-billion devices will be sold per year with the emergence of budget models like the Orange Monte Carlo and the Motorola Fire bringing Angry Birds to the emerging markets as well.
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  • Fall '14
  • Stoltman
  • Sula, Nike Inc, seamless customer journey

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