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For the past five years, Ford has been publishing a list of global micro trends. The company calls it "a compilation of the most compelling movements across the globe that are shaping how we live, work, and engage with the world around us."
The past couple of weeks were filled with the delivery of regionally customized presentations on the future of retail in Spain, UK, Portugal, and Switzerland. As we are in the middle of the paramount shopping season, special focus was on three important retail holidays.
Over both Thanksgiving and Black Friday, 2016 brick-and-mortar net instore sales dropped 5% and the number of transactions fell 7.9%. Shopper visits to physical stores declined 1% during the same two day period. UK 2016 Black Friday shopper traffic fell a significant 8% which follows a drop of 4.05% in 2015.
Summarizing the first three ingredients driving the age of disruption from Part 1 of this post:
The Netherlands, France, Italy, Austria, Germany, all have key elections in the next 12 months that could potentially join the global populist disruptive wave manifested in Brexit and the surprise USA presidential ballot. Geopolitical turmoil carries risk for global brands and must be carefully navigated for continued success.
Today is indeed the slowest day of technology change for the rest of your life. Each new disruptive technology is finding its expanded global audience faster.
For a transformational 2017, five key ingredients need to be closely monitored and navigated in building a successful global business formula.
"Dawn of a new age. Populism rules. Status quo - R.I.P." - Australian investment bank Macquarie
A family argument throughout the 2016 USA presidential election was my prediction of a Donald Trump win. As with Brexit, too many pundits were taking for granted the underlying disruption of an increasingly number of people questioning the world order.
Two weeks ago, had the pleasure of speaking to the Board of Directors at two major Brazil apparel retailers. An updated view on "The Disruptive Future of Retail" was the message. Very pleased that audience was engaged, embracing of the disruptive trends discussed, and had lots of questions on their direct impact in the Brazil retail market.
"We want people to be able to use those (Frequent Flyer) miles not to fly for free but to control your experience." - Glen Hauenstein, Delta Airlines President (March 2016)
American Airlines is credited with the development of the first loyalty program in 1981. "What distinguished the airline program, and made them the most successful marketing program ever, was a winning combination of the psychological and the financial - the lure of travel (quintessentially aspirational) and the return-on-investment value of the awards (because they awarded unsold seats, the real cost to the airline was miniscule)."
Retailers were not far behind in adapting loyalty programs to increase brand value.
Thirty five years later, it's interesting to contrast the evolution and current state of loyalty programs in both the airline and retail industries.
Have been debating for some time the top 3 retail technology inventions of all time. From history, a few of the candidates considered:
Shopping Mall - The first shopping mall was built in Milan between 1865 and 1877. The Galleria is named after the first King of Italy, Vittorio Emanuele II.
Coupons - In 1888, Coca-Cola created the first coupon that could be redeemed for their new beverage.
Loyalty Card - American Airlines is credited with the development of the first loyalty program in 1981.
CCTV - Germany used CCTV systems in the development of V-2 rockets to monitor launches during World War II.
Credit Card - John Biggins, a New York Banker, introduced the "Charge-It" card in 1946.