the future of retail - business model trend report

The Future of RetailNovember 2012 | Business Models

Business Models | November 2012 2

Executive SummaryBusiness models are no longer an invisible component of retail strategy Changes in customer expectations and technology have spurred the development of innovative new business models that are shaping the future of retail To help retailers navigate these changes Nurun has prepared a report that identifies and describes six key business model trends

Trend 1 The conflicted consumerRetailers are struggling to adapt to a world of opposing consumer tensions

Trend 2 e-commerce converges with bricks-and-mortar (and vice-versa)Formerly separate business models are slowly amalgamating

Trend 3 Vertical integration makes a comebackSome of the most recent retail brands have embraced vertical integration from day one

Trend 4 Affiliate marketing has its momentA new wave of e-commerce built around affiliate marketing has emerged

Mini Trend 1 Paying for usageTemporary ownership of cars dresses and toys is growing in popularity

Mini Trend 2 Please subscribeNew automated subscription services are providing enhanced consumer convenience and product variety

Along with a thought-provoking look at each of these six trends this report contains a series of provocative questions for each trend that will help retailers consider how they might evolve their current business model


Manage the ambiguous future with strategic foresightDaily blog posts Monthly magazines Quarterly trend reports Must-read books Anyone who works at the intersection of technology and people is swimming in information This data smog can make deciphering the implications of the latest tech and social developments difficult One solution is strategic foresight which can help you make sense of emerging trends and clearly evaluate your options for the future Itrsquos a tool to manage risk when facing ambiguity in the marketplace

Strategic foresight doesnrsquot predict the future but it does help prepare you for it by envisioning a number of different yet possible future states in the market landscape 10+ years from now These future states are often described as a set of scenarios and they emerge from an analysis of current trends So as a simple example the increasing popularity of pop-up retail spaces combined with the high adoption of mobile devices could develop into a future filled with transient storefronts This scenario would be made possible due to the minimal wired infrastructure required for information and payment

The rapid uptake of technology means that our social lives cultural experiences policies regulations ecological landscape and business models are increasingly intertwined Through its very design strategic foresight is built to accommodate complexity by considering trends from a multi- dimensional perspective

Steps of strategic foresight

Trend scan

Identify trend drivers

Evaluate critical uncertainties

Future scenarios

Strategic implications

Action plan

Monitor trends

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Why Retail ForesightThe Nurun Strategic Foresight team has launched a strategic foresight initiative to articulate the future of business-to-consumer (ldquoB2Crdquo) retail and commerce and explore implications for Canadian and US retailers The scenarios we generate will give our retail clients the toolkit necessary to start imagining (and preparing for) the possible futures in the marketplace

The first of seven steps in the strategic foresight process involves trend scanning The trends we capture will be published as a series of trend reports that focus on five domains of importance to both online and omni-channel retailers

This is the second of five trend reports and it looks at retail through the lens of business models Next will be a report on transactions and payments followed by analytics The culmination of trend scanning and subsequent phases will inform future scenarios in our final stratgic foresight report For more information you can follow the project on Nurunrsquos blog Digital for Real Life or subscribe to our email list futureofretailnuruncom


Trend scan



Future scenarios


Action plan

Monitor trends

Marketing and Merchandising

Business Models

Transactions amp Payments

Analytics

Emerging Technology Platforms

Preparing for the Future of Retail A Strategic Foresight Report

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2

3

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IntroductionFor many decades business models were one of the most invisible aspects of retail But changes in consumer culture customer expectations market forces and technology have spurred the development of new retail models The resulting success and influence of companies like Amazon and Apple on the traditional retail landscape has resulted in considerable attention from consumers media and retailers alike (Internet Retailer 2012)

Given the necessity of rethinking retail strategies in an era of innovative busi-ness models Nurun has prepared a report that identifies six key trends As a starting point Nurun used the definition provided by Alexander Osterwalder and Yves Pigneur in their book Business Model Generation ldquoA business model describes the rationale of how an organization creates delivers and captures valuerdquo Building on this we defined value along three dimensions

middot Customer (utility)middot Business (financial)middot Social (community impact)

We also used Osterwalderrsquos business model canvas as a tool to help us un-derstand the key components of various business models and relationships between the different building blocks during our trend scan

For many established retailers a recent challenge has been to try and seam-lessly integrate new business models with their existing retail approach In the process core aspects of traditional retail business models are being rethought often out of necessity New online revenue streams have added complexity to business models that were originally designed to deal only with straightfor-ward in-store retail transactions This means finding new ways to drive profit and stay competitive in an omni-channel environment

Changes in consumer expectations and behaviours will continue to drive the evolution of new retail models As evidenced by The Conflicted Consumer trend many retailers are still struggling to adapt to a world of opposing con-sumer tensions such as a desire for the benefits of both local and global retail

This confusion might be a necessary but temporary aspect of the transfor-mation of retail The e-commerce converges with bricks-and-mortar (and vice-versa) trend suggests that two formerly separate retail business models are starting a slow and uneven process of amalgamation

Just as with music or clothing certain business models go in and out of fash-ion The retail trend of Vertical integration makes a comeback demonstrates that extending an existing business model into new parts of the value chain can give it a new life In other cases new business models have been made possible by the Internet explaining the Affiliate marketing has its moment trend

Along with these larger shifts in retail business models Paying for usage and Please subscribe are two mini trends that we believe will persist over the long term and are worth watching closely

This report offers a thought-provoking look at each of the six trends men-tioned above along with a series of provocative questions that relate to each trend

Defining Our Terms

Given our expertise in the realm of digital retail we defined retail marketing to include

bull Product findability and discoverabilitybull Recommendation and comparison toolsbull Social commercebull Issues relating to consumer privacy

Our examination of merchandising trends focused on

bull Pricingbull Localization of assortmentbull Product presentation


A complete strategic foresight report that incorporates these six retail business model trends along with key retail trends relating to marketing and merchandising value exchange analytics and emerging technology platforms will be released in 2013 (Our first trend report on Marketing and Merchandising is available here)

The conflicted consumer

eCommerce converges with bricks-and-mortar (and vice-versa)

Vertical integration makes a comeback

Affiliate marketing has its moment

Paying for usage

Please subscribe

Major Trends

Mini Trends

Nurun Toronto found four major trends and two mini trends relating to retail business models

1

2

3

4

1

2


Trend


1 3 42

1

Trend

Consumer expectations for retailers continue to evolve due to a variety of social economic and cultural factors These factors include a greater degree of social re-sponsibility a pressing need for convenience and a new awareness of shopping local in a global marketplace In order to stay competitive and respond to new consumer demands some forward-thinking retailers have developed innovative new business models

The result of this mutual influence is an ongoing dance between customer expecta-tions and new business models This has helped to encourage the rise of the conflict-ed consumer a development that has become more noticeable as startups boutiques and niche retailers populate the marketplace and highlight these new consumer inclinations and points of tension

Everything vs one thingConsumers appreciate the wide assortment and one-stop shop aspect of the ldquoeverything for salerdquo approach made popular by Walmart At the same time they also find that niche retailers like Lululemon or Dollar Shave Club provide them with an opportunity to display their sophistication or save significant amounts of money As a result the growth of both long-tail models and specialized niche retailers in the age of e-commerce has led to an increasing polarization in retail business models

Consumer vs citizenMany people are now trying to satisfy a human desire to contribute to the greater community when they shop In response companies like Toms and Warby Parker have woven a commitment to social responsibility into the core of their business model Toms donates a new pair of shoes to a child in need for every pair purchased Warby Parker follows the same model only with eyeglasses

Permanent vs occasional retailWork pressures due to a challenging job market along with a variety of related time constraints means that consumers are demanding an increasing amount of conveni-ence when they shop One of the biggest attractions of online retail is an always open 247 shopping environment While convenient e-commerce can also decrease the urgency of purchase

One response to this challenge is the creation of retail scarcity and novelty through location and product stock This approach acknowledges that many consumers gain social status and pleasure from owning ldquolimited editionrdquo items This helps to explain the continued popularity of pop-up shops that remain in a temporary location any-where from a few hours to a few weeks Some stores including Torontorsquos Dough by Rachelle (Liu 2012) and The Doughnut Vault in Chicago (2012) are taking this idea further staying open only as long as they have inventory to sell

Hyper-local vs mega-globalDue to the popularity of farmerrsquos markets and a newfound focus on the merits of buying local consumers have become more aware of the distance food travels to reach their plate Recent developments have also sparked similar conversations about local versus global retail


1 3 42Trend

In the Canadian retail landscape new entrants such as Marshalls Nordstrom and Target serve as a reminder of the global reach of retailers At the same time Toronto-based website Shopcaster curates products from local indie stores that do not consider e-commerce to be their core strength Meanwhile recent entrant Shopca aims to combat the growing dissatisfaction felt by Canadian online shoppers when faced with high shipping costs and duty charges from American retailers (Silcoff 2012)

What new retail opportunities might emerge as a result of conflicting tensions in consumer attitudes and behaviours

How might you showcase specific products while also offering customers a wide array of options

What values and beliefs does your brand hold true How might you incorporate sustainability and social responsibility practices into your business model

How might you cater to both convenience-seeking customers and those looking for unique products and experiences with exclusivity

What actions are you taking to make localization a part of your national or international retail strategies

FORWARD THINKING


Trend

e-commerce converges with bricks-and-mortar (and vice-versa)

1 3 42

2

Trend

Consumers have always formed their understanding of brands through a culmination of interactions and experiences They expect consistency across touchpoints despite the prolifera-tion of channels in recent years

The result is that after amassing more than a century of retail expertise following the emergence of the department store many traditional bricks and mortar retailers have had to add an online component While the goal is to offer customers a seamless omni-channel experience a smooth transition from bricks to clicks has been difficult for all but a handful of retail-ers

New and improved in-store retailDespite the numerous challenges facing traditional retailers having a physical location still provides many advantages As Jerry Storch Chairman and CEO of Toys lsquoRrsquo Us argued dur-ing Shoporgrsquos annual summit ldquoWhile there has been much focus on online-only shoppingmdashand our own e-commerce sites have grown to a $1 billion businessmdashthe reality is that the vast majority of sales still occur in physical storesrdquo

The trick has been finding the best way of combining e-commerce with in-store to create a connected retail experience The first step is rethinking multiple pools of inventory for each channel (eg in-store online etc) and instead shifting towards centralized or fluid inventory Such a shift allows retailers to ship products between stores to meet customer demand or provide ldquoendless aislerdquo options through the use of in-store technologies It also means giving custom-ers the option to buy online and pick-up in-store (BOPIS) or buy online and return in store (BORIS) In doing so previously separate supply chains are now merging in order to help retailers lower their costs These and other related omni-channel tactics were discussed in our previous report on Marketing and Merchandising

Inventory Customer Demand

LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store

Design ampManufacturing

RetailStore

Inve

ntor

y

Inventory

BOPISBuy Online Pick-up In-Store

BORISBuy Online Return In-Store

trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW

SeamlessOmni-Channel

Traditional VerticalIntegration

functional integration

chan

nel i

nteg

ratio

nLargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment

Retail channel and department integration matrix

ldquoManaging customer service in e-commerce is a totally different job than managing customer service in bricks and mortar There are different skillsets and rules and you have to understand what excellence means in each channelrdquo

Dr Donna SmithProfessor in the Ted Rogers School of Retail Management Ryerson University


1 3 42Trend

A recent study from CrossView demonstrates that BOPIS and BORIS provide opportunities for retailers to demonstrate superior approaches to customer service that are not possible with pureplay eCommerce (McCue 2012) This explains why some retailers are using drop shipping (consumers buy online but products are shipped direct from the vendor to the purchaser) This allows for enhanced selec-tion and helps companies shift their warehousing and inventory costs to funding programs that improve the customer relationship This strategy is not without risks however as it adds complexity into the value chain through a need to coordinate multiple organizations (both retailer and vendor)

Meanwhile some bricks and mortar retailers are also trying to enhance their in-store experiences such as lululemon offering free weekly yoga classes in stores and show-rooms (lululemon athletica 2012) and Reebok opening a gym in its New York store (Pinter 2012)

Making clicks more like bricksWhile pureplay e-commerce offers many advantages consumers are still hesitant to fully embrace online shop-ping in categories where being able to touch or try on an item prior to purchase is considered central to the experience But new options have emerged to help close the close the gap between online and in-store experiences including virtual fitting tools like Fitsme (2012) After taking a few basic measurements Fitsme will display garments on a representative version of the customer called a ldquoFitBotrdquo

New and nimble online retailers will continue to experiment with fresh approaches to retail thanks to business models that have been built from the ground up But for all their cutting edge approaches certain online retailers are now realizing that e-commerce has limits and are starting to contemplate the previously unthinkablemdash a move into physical retail

Convergent retail made simpleEmerging technology solutions are making it easier for smaller retailers to offer convergent retail solutions through platforms such as LightSpeed LightSpeed integrates front-counter Point-of-Sale with eCommerce and also offers interactive sales tools via the iPad and mobile solu-tions (LightSpeed Retail Inc 2012) In a recent Reuters article about the 2012 holiday shopping season HSN Chief Executive Mindy Grossman noted that ldquoI still see people looking at their e-commerce strategy and saying mobile comes later Actually it should be the oppositerdquo (Bhattacharjee 2012)

ldquoWe really believe in the integration of online and offline Thatrsquos why we offer the free monthly home trialmdashbecause we know that some guys need more than pictures They need to touch and feel and try on the clothingrdquo

Hicham RatnaniCFO of Frank amp Oak


LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment

Vertical integration reduces the distance between manufacturer and customer


1 3 42Trend

Shopify meanwhile makes the process of creating and managing a small online storefront as simple and seamless as possible thanks in part to a recent shipping partnership with Canada Post (Bury 2012) The growth of convergent retail platforms such as LightSpeed and Shopify now allow smaller retailers to focus on other aspects of their omni-channel retail strategy such as findability (the ease in which customers can actively seek out an a retailerrsquos website) conversion (the activities designed to convert shoppers into buyers) and transactions (the ease in which customers can pay for goods and services)

Are you ready for a world in which the distinction between online and offline channels no longer exists

Is your team ready to build seamlessness into online and offline along with all the channels through which you deliver experiences

FORWARD THINKING


Trend


1 2 43

3

Trend

Vertical integration is by no means a new business modelmdashIkea Sony and Danier have spent decades bringing their manufacturing and retail operations in sync Lately however certain retail sectors have rediscovered vertical integration because it can offer a distinct competitive advantage when combined with other retail strategies For Zara vertical integration was crucial in creating a fast fashion business model that allows stores around the globe to stock new clothing twice a week

Manufacturers set up shopCompanies that began as manufacturers are now morphing and extending themselves into the retail space These include Apple (who started opening retail locations in 2001) and Lego who has spent the past few years updating and expanding their retail presence (Wikipedia 2012a) The move from making to selling requires moving away from drop shipping and shifting into customer experience and service which usually requires outside expertise and significant investments

Moving into retail does allow the manufacturer to better align the brand promise with the customer experience and offer a complete assortment of products This approach also increases profits since the manufacturer no longer has to provide a discount to another retailer in order to carry their products Conversely retailers that do not produce their own products are finding that vertical integration can turn former partners into competitors

Think vertical from day oneSome of the most recent innovative retail brands have embraced vertical integration from the start These include Warby Parker Frank amp Oak and Shoedazzle As venture capitalist Boris Wertz recently argued in TechCrunch ldquoBy eliminating stores from the supply chain these companies bring products directly to consumers from the factory without the bloat of the traditional retailer This translates into high-quality products at significantly lower pricesrdquo (2012)

In some ways vertical integration is the ultimate expression of a private label approach to retail (For more thoughts on private labels and the rise of Sophisticated Frugality see our previous trend report on Marketing and Merchandising)

ldquoHistorically Canadian retail investment in technology has involved a relatively long cycle The trouble today is that the technology in the consumerrsquos hands is better [than the retailerrsquos] and itrsquos refreshing fasterrdquo

Joe JackmanCEO of Joe Jackman Brand Inc


LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment

Supporting BOPIS and BORIS through fluid inventory


1 2 43Trend

How are you approaching fulfillment an often overlooked part of a vertical integration strategy especially for e-commerce retailers

How might you extend merchandising into a new realm of product design and manufacturing

What is the role of e-commerce in a vertically integrated company

FORWARD THINKING

Fulfillment beckonsAnother example of vertical integration can be seen in the launch of Amazon Lock-ers These lockers serve as a convenient way for customers to receive and pick up shipments from self-serve stations allowing Amazon to compete with the immediacy of bricks and mortar (Manjoo 2012) In the future vertical integration might mean eliminating the retail experience altogether thanks to 3D printing marketplaces such as Shapeways (Shapeways Inc 2012)


Trend


1 2 3 4

4

Trend

Affiliate marketing was popularized thanks to Amazonrsquos widespread adoption of the technique in 1996 (Wikipedia 2012b) Amazon helped drive book sales and improve its online reach by paying a commission to websites willing to embed custom widgets or otherwise link to specific books on their site

More recently new business models have emerged that prioritize affiliate marketing as this approach provides a fixed cost per new customer acquisition among other advantages Large-scale networks such as Commission Junction have also made it easier for retailers to quickly plug into a large and extensive database of relevant affiliates (Commission Junction Inc 2012)

The second wave of affiliate retailDespite lower prices and increased convenience convincing consumers to shop online can still require a shift in habits and mindset especially in Canada where e-commerce adoption has been slower (eMarketer 2012) Affiliate marketing can help with this shift which explains why newer online retailers such as Ebates (Ebates Performance Marketing Inc 2012) Upromise (Upromise Inc 2012) and RedFlagDealscom (2012) have built their business around affiliate marketing Skimlinks (Skimbit Ltd 2012) provides another approach providing bloggers with an automated affiliate process by searching for keywords in blog posts and providing links to the products and services mentioned As consumers spend increasing amounts of time online itrsquos important for retailers to appear on the sites that their customers are already using This is especially true of sites where customers tend to research new products

Affiliate relationshipsA successful affiliate marketing program requires a series of strong personal partnerships between retailers and affiliates In order to better incentivize and customize their affiliate program Canadian health and beauty e-commerce retailer Wellca built an entirely new platform to manage their relationships with bloggers and deal sites (Banduk 2012) This platform provides more control access to real-time info and helps Wellca offer more personalized and creative promotions to their affiliate network

ldquoAffiliate programs are really great for getting better reach across the Internetrdquo

Sameera BandukMarketing Manager Wellca

ldquoWhen a customer is doing research on a product shopping engine and yoursquore not there thatrsquos a core business issue I think affiliate marketing will continue to be a important part of running an e-commerce businessrdquo

Sarah TrimbleAssociate VP Interactive Marketing amp Community Sears Canada


LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment

Affiliate versus reverse affiliate relationships


Are you able to provide affiliates with unique and exclusive offers on an ongoing basis to keep customers (and affiliates) interested

Have you considered integrating your affiliate marketing strategy with popular loyalty programs like AIR MILES

FORWARD THINKING

Reverse affiliateAlong with bringing affiliate marketing to prominence Amazon has also developed a reverse affiliate program through their Marketplace In this case retailers pay Amazon a commission to list their products alongside the rest of the websitersquos comprehensive product assortment Searscom also offers a related service (Sears Brands LLC 2012) As with traditional affiliate marketing the goal is to gain access to a wider audience For Amazon or Sears a reverse affiliate model provides another way to increase site monetization by selling access to their already sizeable customer base

Social commissionAlong with traditional approaches to affiliate marketing are sites that employ various forms of social commission These include Chinarsquos Vancl Star (Daohen 2011) sneakpeeq (2012) and Lockerz (2012) which was mentioned in our previous trend report on Marketing and Merchandising In exchange for promoting specific products or services through social media ordinary consumers earn points that can be exchanged for discounts or cash

1 2 3 4Trend


Mini Trend

Paying for usage

1

Since Ford launched the Model T car in 1908 owning a vehicle has becomeone of the most visible status symbols for North Americans But as GenerationY (Millennials) continues to face serious economic pressures buying a car has lost its luster As Josh Allan Dykstra argues in a July 2012 Fast Company arti-cle a number of factors including the popularity of cloud-based music services and alternate forms of transportation in urban centres are helping to shape a new approach to ownership Rachel Botsman and Roo Rogers provide a more detailed exploration of the evolution of ownership in their 2010 book Whatrsquos Mine Is Yours The Rise of Collaborative Consumption

Zipcar zipdress zipbag ziproomThis new paying for usage mentality helps explain the growth and popularityof Zipcar and other car sharing options But the idea of short-term rentals isno longer limited to expensive items such as cars Itrsquos now possible to rent dresses (rentfrockrepeatcom) handbags (BagBorroworStealcom) childrenrsquos toys (babyplayscom) and apartments (Airbnbcom)

Want to gain access to the private habits of influential cus-tomers Be prepared to openly barter for this information

FORWARD THINKING

1 2Mini Trend

Our research uncovered four significant trends in retail business models along with a handful of smaller trends that do not yet warrant a full de-scription However we believe that both of the following mini trends merit inclusion in this report given their rapid uptake and popularity


Mini Trend

Please subscribe

2

In order to provide consumers with a reliable and convenient way to receive staple goods a number of new automated subscription services have emerged The business model for subscription retail is relatively straightforward but has been tweaked in order to make it easy to return unwanted items

Cheese wine and underwear of the monthA wide variety of retail items are now available through automated subscriptions including cheese (Monforte Dairy Company 2012) menrsquos clothing (Frank amp Oak 2012) womenrsquos shoes (ShoeDazzlecom Inc 2012) household products (Alicecom 2012) cosmetics (Topboxca 2012) diapers (IncrediBundlescom LLC 2012) wine (Zagat Wine 2012) and digital books (24symbols 2012) Walmart Labs recently launched the Goodies Co (Walmart Stores Inc 2012) a monthly subscription service that delivers an inexpensive box of sample-sized servings of artisanal food products The goal of the service is to encourage customers to order full-sized versions of their favourite new products

Subscription services tend to improve customer retention rates and provide a predictable source of income as customers often create standing orders for staple goods There is however additional pressure on subscription retailers to ensure a sufficient amount of relevance and novelty when including new items in order to maintain customer satisfaction and loyalty over time

1 2Mini Trend

ldquoWe realized that youngmen now spend $50-$150 per month on clothing or acces-sories instead of $500 twice a year Itrsquos similar to how these men consume informa-tion They use Twitter and Facebook and blogs instead of reading a gigantic book every six monthsrdquo


As part of our research Nurun also considered evolving legislation that will continue to affect retail business models including

Attempts at patenting user experience elements such as Amazonrsquos one-click checkout (Kalanda 2012)

The push for sales tax on online orders in the US through the Marketplace Fairness Act (Chen 2012)

The California transparency in supply chains acts of 2010 (Spuhler 2010)

New Crowdfunding legislation such as the Jumpstart Our Business Startups Act (JOBS) (Huhman 2012)

The legality of short-term rentals through services such AirBnB (Yglesias 2012) and Uber (Auto Rental News 2012)

How legislation is responding to business model innovation

How will you keep customers engaged once the initial novelty of subscribing wears off

FORWARD THINKING


Whatrsquos Next

Methodology

Our next report will look at retail trends through the lens of emerging transactions and payments followed by analytics and technology platforms Once these trend reports are complete we will move to the next phase of strategic foresight identify-ing the driving forces underlying the trends Those driving forces will inform future scenarios leading to the last phases in this strategic foresight initiative to articulate the future of B2C retail and commerce

For more information you can follow the project on Nurunrsquos blog Digital for Real Life If you have any questions or want to receive an email reminder when our next trend report is published please contact futureofretailnuruncom

The Nurun Strategic Foresight team performed a horizon scan using the ldquoSTEEPVrdquo framework to locate current and emerging trends and signals in the following areas Social Technological Economic Environmental Political and Cultural Values This scan generated over 60 relevant trends

These signals and trends were then clustered and sorted into six overarching trends Each of these overarching trends required the support of three to five strong signals or examples Some trends had an excess of signalsmdashin those cases excess signals were catalogued for future inclusion or consideration

Sincere thanks to the business model experts who graciously shared their insights with us for this report

Sameera BandukMarketing Manager at WellcaSameera is a key member of the Wellca team that brought the first Virtual QR Code Store to North America in April 2012 Sameera is also an organizer of e-commerce Camp Toronto events and believes that the opportunity for the growth of e-commerce in Canada is virtually endless

Katherine HagueCEOCo-founder of ShopLocketKatherine is a graduate of the Schulich BBA program and ran her own marketing consultancy throughout university where she worked with companies ranging from the Fortune 500 to startups Prior to co-founding ShopLocket she was the Market-ing Manager for Toronto-based energy solution company ecobeecom and one of the first Shopify Theme developers You can find Katherine online at katherinehaguecom

Hicham RatnaniCFO of Frank amp OakHicham has a background in engineering and worked for several years as a strategy consultant at Deloitte before co-founding Frank amp Oak in 2012 As the companyrsquos CFO Hicham manages the technology and finance team and was named one of

CorrectionIn our previous retail trend report on Marketing amp Merchandising Nurun described Krush as a retailer when it is in fact a social discovery and recommendation site We apologize for this inaccuracy


Montrealrsquos Top 25 Emerging Entrepreneurs at the 2012 international C2 (Commerce + Creativity) Conference

Dr Donna SmithProfessor in the Ted Rogers School of Retail Management Ryerson UniversityDonnarsquos current research examines the influence of family business on retailer- vendor strategic partnerships In September 2010 she won the Best Paper Award in the Doctoral Colloquium at the International Colloquium in Relationship Marketing in Henley-on-Thames England Donna was President of the American Collegiate Retailing Association (2006-2008) a global network of university professors who teach and conduct research in retailing

Sarah TrimbleAssociate VP Interactive Marketing amp Community Sears CanadaSarah has been in marketing for over 10 years Her marketing experience has covered both traditional and digital media with roles at a major multi-national book publish-er along with Indigo and Sears Canada In her current role Sarah is responsible for the strategy optimization and management of all digital marketing programs at Sears Canada including the affiliate program Sarah recently finished her Executive MBA at the Richard Ivey School of Business

The Nurun Strategic Foresight team will continue to monitor and collect new developments in business models to inform subsequent strategic foresight work especially scenario development


About NurunNurun is a global design and technology consultancy that works with some of the worldrsquos most innovative companies We create products and services for the connected world through a combination of human insight new technology and smart thinking Clients include Adidas BBVA Bouygues Telecom Coca-Cola Electronic Arts General Electric Google The Home Depot Tesla Motors Sony and Walmart Headquartered in Montreacuteal and with 12 offices across North America Europe and Asia Nurun has multidisciplinary teams of more than 1200 anthropologists designers strategists and software engineers Nurun is a wholly owned subsidiary of Queacutebecor Meacutedia Inc one of Canadarsquos largest tele- communications and media providers

Meet the Nurun Strategic Foresight Team

Ryan BiggeAs a Content Strategist at Nurun Ryan Bigge combines over 12 years of experience as a freelance journalist with a passion for design thinking and interactive art His writing has been published in the New York Times Magazine Report on Business and the Toronto Star Ryan recently spoke at SXSW Interactive about analog souvenirs and physidigital trends

Jen ChowAs Nurunrsquos Design Strategist Jen utilizes a diverse set of consumer research tech-niques to uncover insights and shape new opportunities for various retail clients Jen recently co-authored a report on the future of consumer-to-business payments that focused on the Canadian banking industry as part of her work in OCAD Universityrsquos Master of Design Foresight amp Innovation program Jenrsquos work fuses her eclectic background in accounting and finance with her keen interest in sociocultural trends and technology

Kira LevineAs Senior Retail Strategist at Nurun Kirarsquos focus is on translating consumer needs into viable retail solutions bridging both in-store and online capabilities She brings a unique blend of passion for retail with over nine years of experience in category and product management She holds a Bachelorrsquos degree in Retail Management and an International MBA

Audrey CarrAs Vice President Strategy Audrey guides Nurunrsquos cross-functional teams in identi-fying framing and solving customer-centric opportunities across our omni-channel retail clients including Sears Canada The Home Depot Canada Acklands-Grainger and the LCBO She also leads the development and evolution of Nurun Torontorsquos strategic capabilities in design research design amp retail strategy analytics and inter-action design


Sources 24symbols (2012) 24symbols Retrieved November 26 2012 from httpwww24symbolscomen

Alicecom (2012) Alicecom Retrieved November 26 2012 from httpswwwalicecomautodelivery

Auto Rental News (2012 January 11) Legislation OKs Peer-to-Peer Car Sharing in Oregon - Fleet Insurance Retrieved from httpwwwautorentalnewscomChan-nel Fleet-InsuranceNewsStory201201Peer-to-Peer-Car- Sharing-Now-Legal-in-Oregonaspx

Banduk S (2012 November 6) Interview with Sameera Banduk from WellcaBhattacharjee N (2012 September 18) Walletless Shopping Still a Dream This Holiday Reuters Retrieved from http wwwreuterscomarticle20120918us-retail-summit- mobile-idUSBRE88G0Z020120918

Bury E (2012 October 5) Shopify Partners with Canada Post to Turn Brick-and-Mortar Into Brick-and-Click BetaKit Retrieved from httpbetakitcom20121005shopify- partners-with-canada-post-to-turn-brick-and-mortar-into- brick-and-click

Chen T (2012 August 7) Small Business And Internet Sales Tax Forbes Retrieved from httpwwwforbescomsites moneybuilder20120807small-business-and-internet- sales-tax

Commission Junction Inc (2012) CJ -ndashYour Performance Marketing Partner Retrieved November 26 2012 from httpwwwcjcom

Ebates Performance Marketing Inc (2012) Coupons Promo Codes and Cash Back Savings - Ebatescom Retrieved November 26 2012 from httpwwwebatescom

eMarketer (2012 October 19) Retailers in Canada Make Strides in the e-commerce Channel Retrieved November 26 2012 from httpwwwemarketercom (S(yfpqyw55tpu1ag45nnu4gdjl))ArticleaspxR=1009427

Fitsme (2012) Fitsme ndash Virtual Fitting Room Retrieved November 26 2012 from httpfitsme

Frank amp Oak (2012) Welcome ndash Frank amp Oak Retrieved November 26 2012 from httpwwwfrankandoakcom

Huang D (2011 March 25) Vancl Tries Out e-commerce 20 BeijingToday Retrieved November 26 2012 from http wwwbeijingtodaycomcnbusinessvancl-tries-out-e- commerce-2-0

Huhman H R (2012 April 5) JOBS Act to Jumpstart the Job Market Forbes Retrieved from httpwwwforbescom siteswork-in-progress20120405jobs-act-to-jumpstart- the-job-market

IncrediBundlescom LLC (2012) Diaper Bundles ndash IncrediBundlescom Retrieved November 26 2012 from httpwwwincredibundlescomdiaper-bundles

Internet Retailer (2012) Top 500 Guide The Top 500 List ndash Internet Retailer Retrieved November 26 2012 from httpwwwinternetretailercomtop500list


Kalanda R (2012 March 31) Does Amazonrsquos ldquoOne- Clickrdquo Success Mean Business Method Patents for All e-commerce News Retrieved from httpwww ecommercetimescomstory74719html

LightSpeed Retail Inc (2012) LightSpeed Retail Point of Sale (POS) Retrieved November 26 2012 from httpwww lightspeedretailcom

Liu K (2012 June 14) The Beast is Selling Back-alley Donuts The Grid TO Retrieved from httpwwwthegridtocom lifefood-drinkthe-beast-is-selling-back-alley-donuts

Lockerz (2012) Top Finds From Friends amp Celebrities ndash Lockerz Retrieved September 11 2012 from http lockerzcom

Lululemon Athletica (2012) Complimentary Yoga Classes ndash The Gift of Yoga From Lululemon Athletica Retrieved November 26 2012 from httpwwwlululemoncom communitygiftofyoga

Manjoo F (2012 July 11) Amazon same-day delivery How the e-commerce Giant Will Destroy Local Retail Slate Magazine Retrieved from httpwwwslatecomarti-cles businesssmall_business201207amazon_same_day_ delivery_how_the_e_com-merce_giant_will_destroy_ local_retail_singlehtml

McCue T (2012 July 31) Best Ways to Combat Showrooming Trend Forbes Retrieved from httpwww forbescomsitestjmccue20120731best-ways-to- com-bat-showrooming-trend

Monforte Dairy Company (2012) Monforte Subscription Offering Retrieved November 26 2012 from httpwww monfortedairycommonforte-subscription-offeringhtml

Pinter D (2012 August 22) Reebok Opens Fitness Focused Retail Store and Gym in NYC [Pics] Retrieved November 26 2012 from httpwwwpsfkcom201208reebok- opens-fitness-focused-retail-store-and-gym-in-nyc-pics html

RedFlagDealscom (2012) Canadian Store Deals Coupons and Sale Promotions ndash RedFlagDealscom Retrieved November 26 2012 from httpwwwredflagdealscom

Sears Brands LLC (2012) Seller Portal ndash Account Selector Retrieved November 26 2012 from httpsseller marketplacesearscomSellerPortaldswitch_accountjsp

Shapeways Inc (2012) Shapeways ndash Make amp Share Your Products With 3D Printing Retrieved November 26 2012 from httpwwwshapewayscom

ShoeDazzlecom Inc (2012) Womenrsquos Shoes Handbags and Jewelry ndash ShoeDazzle Your Personal Stylist ndash ShoeDazzle com Retrieved November 26 2012 from httpwww shoedazzlecom

Silcoff S (2012 June 18) What Keeps Online Retail in Canada From Clicking The Globe and Mail Toronto Retrieved from httpwwwtheglobeandmailcomreport-on- businesswhat-keeps-online-retail-in-canada-from-clicking article4178807

Skimbit Ltd (2012) Skimlinks ndash Affiliate marketing made easy ndash content monetization ndash Skimlinks Retrieved November 26 2012 from httpskimlinkscom

sneakpeeq (2012) sneakpeeq ndash Style Home and Gourmet Food Discoveries Yoursquoll Love Retrieved November 26 2012 from httpwwwsneakpeeqcom


Spuhler B K (2011 September 30) Compliance with California Transparency in Supply Chains Act of 2010 Corporate Compliance Insights Retrieved from http wwwcorporatecomplianceinsightscompreparing-for- compliance-with-the-califor-nia-transparency-in-supply- chains-act-of-2010

The Doughnut Vault (2012) The Doughnut Vault Retrieved November 26 2012 from httpthedoughnutvaulttumblr com

Topboxca (2012) TOPBOX ndash Luxe Beauty Samples Delivered to You in a Beautiful Box Each Month Retrieved November 26 2012 from httptopboxca

Upromise Inc (2012) Upromise by SallieMae Retrieved November 26 2012 from httpwwwupromisecom welcome

Walmart Stores Inc (2012) Welcome to ndash Goodiesco Retrieved November 26 2012 from httpswww goodiesco

Wertz B (2012 September 29) The Next Big E-Commerce Wave Vertically Inte-grated Commerce TechCrunch Retrieved from httptechcrunchcom20120929 the-next-big-e-commerce-wave-vertically-integrated- commerce

Wikipedia (2012b November 21) Affiliate Marketing ndash Wikipedia the Free Encyclopedia Retrieved November 26 2012 from httpenwikipediaorgwikiAf-filiate_ marketing

Wikipedia (2012a November 26) Lego ndash Wikipedia the Free Encyclopedia Retrieved November 26 2012 from http enwikipediaorgwikiLego

Yglesias M (2012 June 5) Is Airbnb Illegal Why Hotels Are So Upset About You Renting a Bedroom to a Stranger Slate Magazine Retrieved from httpwwwslatecomarticles businessmoneybox201206is_airbnb_illegal_why_ hotels_are_so_up-set_about_you_renting_a_bedroom_ to_a_stranger_html

Zagat Wine (2012) The Zagat Wine Club ndash Zagat Wine Retrieved November 26 2012 from httpwww zagatwinecomjspofferwineclubuszagwine_clubjsp


Executive SummaryBusiness models are no longer an invisible component of retail strategy Changes in customer expectations and technology have spurred the development of innovative new business models that are shaping the future of retail To help retailers navigate these changes Nurun has prepared a report that identifies and describes six key business model trends

Trend 1 The conflicted consumerRetailers are struggling to adapt to a world of opposing consumer tensions

Trend 2 e-commerce converges with bricks-and-mortar (and vice-versa)Formerly separate business models are slowly amalgamating

Trend 3 Vertical integration makes a comebackSome of the most recent retail brands have embraced vertical integration from day one

Trend 4 Affiliate marketing has its momentA new wave of e-commerce built around affiliate marketing has emerged

Mini Trend 1 Paying for usageTemporary ownership of cars dresses and toys is growing in popularity

Mini Trend 2 Please subscribeNew automated subscription services are providing enhanced consumer convenience and product variety

Along with a thought-provoking look at each of these six trends this report contains a series of provocative questions for each trend that will help retailers consider how they might evolve their current business model






Trend scan



Future scenarios


Action plan

Monitor trends

1

2

3

4

5

6

7






Trend scan



Future scenarios


Action plan

Monitor trends


Business Models


Analytics



1

2

3

4

5

6

7












Defining Our Terms











Paying for usage

Please subscribe

Major Trends

Mini Trends


1

2

3

4

1

2


Trend


1 3 42

1

Trend









1 3 42Trend







FORWARD THINKING


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1 3 42

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Trend






LargeRetailer

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Aliate(eg Blogger)

Customer

Customer

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RetailStore

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ntor

y

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trac

commission

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HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

nLargeRetailer

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trac

commission

wholesale

fulfillment





1 3 42Trend









LargeRetailer

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Customer

Customer

Retail Store

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RetailStore

Inve

ntor

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Inventory



trac

commission

Multi-Channel

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HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 3 42Trend




FORWARD THINKING


Trend


1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

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HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

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Customer

Customer

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RetailStore

Inve

ntor

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trac

commission

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chan

nel i

nteg

ratio

n

LargeRetailer

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trac

commission

wholesale

fulfillment





FORWARD THINKING



1 2 3 4Trend


Mini Trend

Paying for usage

1




FORWARD THINKING

1 2Mini Trend



Mini Trend

Please subscribe

2




1 2Mini Trend











FORWARD THINKING


Whatrsquos Next

Methodology







































































Trend scan



Future scenarios


Action plan

Monitor trends

1

2

3

4

5

6

7






Trend scan



Future scenarios


Action plan

Monitor trends


Business Models


Analytics



1

2

3

4

5

6

7












Defining Our Terms











Paying for usage

Please subscribe

Major Trends

Mini Trends


1

2

3

4

1

2


Trend


1 3 42

1

Trend









1 3 42Trend







FORWARD THINKING


Trend


1 3 42

2

Trend






LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

nLargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





1 3 42Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 3 42Trend




FORWARD THINKING


Trend


1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





FORWARD THINKING



1 2 3 4Trend


Mini Trend

Paying for usage

1




FORWARD THINKING

1 2Mini Trend



Mini Trend

Please subscribe

2




1 2Mini Trend











FORWARD THINKING


Whatrsquos Next

Methodology







































































Trend scan



Future scenarios


Action plan

Monitor trends


Business Models


Analytics



1

2

3

4

5

6

7












Defining Our Terms











Paying for usage

Please subscribe

Major Trends

Mini Trends


1

2

3

4

1

2


Trend


1 3 42

1

Trend









1 3 42Trend







FORWARD THINKING


Trend


1 3 42

2

Trend






LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

nLargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





1 3 42Trend









LargeRetailer

OnlineChannel

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Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 3 42Trend




FORWARD THINKING


Trend


1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

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trac

commission

wholesale

fulfillment



1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

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Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

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trac

commission

wholesale

fulfillment





FORWARD THINKING



1 2 3 4Trend


Mini Trend

Paying for usage

1




FORWARD THINKING

1 2Mini Trend



Mini Trend

Please subscribe

2




1 2Mini Trend











FORWARD THINKING


Whatrsquos Next

Methodology













































































Defining Our Terms











Paying for usage

Please subscribe

Major Trends

Mini Trends


1

2

3

4

1

2


Trend


1 3 42

1

Trend









1 3 42Trend







FORWARD THINKING


Trend


1 3 42

2

Trend






LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

nLargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





1 3 42Trend









LargeRetailer

OnlineChannel

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Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 3 42Trend




FORWARD THINKING


Trend


1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

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ntor

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commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

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commission

wholesale

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1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

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commission

Multi-Channel

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HIGH

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chan

nel i

nteg

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LargeRetailer

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wholesale

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FORWARD THINKING



1 2 3 4Trend


Mini Trend

Paying for usage

1




FORWARD THINKING

1 2Mini Trend



Mini Trend

Please subscribe

2




1 2Mini Trend











FORWARD THINKING


Whatrsquos Next

Methodology








































































Paying for usage

Please subscribe

Major Trends

Mini Trends


1

2

3

4

1

2


Trend


1 3 42

1

Trend









1 3 42Trend







FORWARD THINKING


Trend


1 3 42

2

Trend






LargeRetailer

OnlineChannel

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Customer

Customer

Retail Store

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chan

nel i

nteg

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wholesale

fulfillment





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nteg

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wholesale

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1 3 42Trend




FORWARD THINKING


Trend


1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

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LOW




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nteg

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LargeRetailer

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1 2 43Trend




FORWARD THINKING



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1 2 3 4

4

Trend










LargeRetailer

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wholesale

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FORWARD THINKING



1 2 3 4Trend


Mini Trend

Paying for usage

1




FORWARD THINKING

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Mini Trend

Please subscribe

2




1 2Mini Trend











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Whatrsquos Next

Methodology



































































Trend


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1

Trend









1 3 42Trend







FORWARD THINKING


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2

Trend






LargeRetailer

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Trend









LargeRetailer

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1 2 43Trend




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Trend










LargeRetailer

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Paying for usage

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Please subscribe

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1 2Mini Trend











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Whatrsquos Next

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1 3 42Trend







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1 3 42

2

Trend






LargeRetailer

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1 3 42Trend









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Trend









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1 2 43Trend




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Trend










LargeRetailer

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Paying for usage

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Please subscribe

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Trend






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Trend









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Trend










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Please subscribe

2




1 2Mini Trend











FORWARD THINKING


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1 3 42Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 3 42Trend




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1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





FORWARD THINKING



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1 3 42Trend




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1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





FORWARD THINKING



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2




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Trend


1 2 43

3

Trend









LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment



1 2 43Trend




FORWARD THINKING



Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





FORWARD THINKING



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1 2 43Trend




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1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





FORWARD THINKING



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2




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Trend


1 2 3 4

4

Trend










LargeRetailer

OnlineChannel

Aliate(eg Blogger)

Customer

Customer

Retail Store

Retail Store


RetailStore

Inve

ntor

y

Inventory



trac

commission

Multi-Channel

HIGHLOW

HIGH

LOW




chan

nel i

nteg

ratio

n

LargeRetailer

Aliate(eg Vendor)

trac

commission

wholesale

fulfillment





FORWARD THINKING



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2




1 2Mini Trend











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Mini Trend

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2




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Whatrsquos Next

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