Do you know where your growth will come from next year? In the next 5 years? Senior sales, development and shopper marketing executives from blue chip companies share their thoughts on their most important business challenges, what changes they see going forward, and how prepared they feel to address them.

1. 2018
Four mega-trends impacting your business growth

2. 2
Shifting sands. How and where to put your
stake in the ground. These are the
challenges we hear about daily.
We wanted to understand how experts
are responding. So we surveyed global
leaders to learn more.
Do you know where your growth will
come from next year? In the next 5 years?

3. What we heard
Several market trends were on respondents’ minds, including:
What we asked
Senior sales, development and shopper marketing
executives from blue chip companies shared
thoughts on their most important business
challenges, what changes they see going forward,
and how prepared they feel to address them.
I M P O R TA N C E
F I T N E S S
Retail Apocalypse or Reinvention?
Not Just Consumers but MarketerseCommerce is AllCommerce
Technology - the Great Enabler
Their assessment
The experts assessed the importance of these trends and their
organizations’ ability to handle them. The bigger the gap, the greater the
need to boost capabilities.

4. Retail Apocalypse
or Reinvention?
Global retail sales are approaching $27 trillion, despite a spike in store closings and
bankruptcies. Those who are reimagining their role and approach are succeeding.
Sources: emarketer.com; FTI, excludes auto and gas; Retail-Index, 2016; Forbes 2017 Food & Beverage Annual Report
“Reinvention requires considering what modern consumers enjoy
and how to integrate into the retail shopping experience.”
“We must define our role in creating successful outcomes across retail outlets. We’re continuing
to focus on a category commercial approach, and putting more resources in the field.”
How global leaders respond
• Clear, articulated vision
• Fully integrated consumer touchpoints
• Investment in in-store experience
• Internal efficiencies
Consistent best practices
Not just surviving but thriving
Speed to MarketThe Treasure Hunt Interactively Engaged CustomisationTown Squares Virtual Journey
I M P O R T A N C E
F I T N E S S

5. eCommerce is
AllCommerce
Worldwide eCommerce growing to over 8% of total retail sales. Successful
sellers are offering the benefits of all types of shopping experiences.
Sources: eMarketer; FTI; Slice Intelligence; SapientRazorfish “What Consumers are Telling Us about the Future of Shopping”, 2017; RetailMeNot; Kibo Software; British Land/Connexity Hitwise (measured locally)
60% begin hunt in digital, but shop/buy in retail outlet.
81% holiday shoppers use up to 6 channels to determine what to buy.
80% less likely to visit store when website doesn’t provide product availability.
Website traffic for new store jumps +52% within 6 weeks of opening.
“Defining and prioritising trade channels based on growth opportunities
is a key concern that I’m not certain we’re prepared to address”
“Building capabilities in eCommerce channels among Top 5 Executives’ priorities - but
Bottom 5 on readiness to do so”
How global leaders respond
Consumers shop and buy interchangeably
Retailers adapting and integrating
Be the ‘start of the path for every purchase’.
Expand onsite distribution network/categories
Best of both worlds
Core online.
Flexible pop up stores where order onsite
for home delivery.
Brand exclusivity via PL consumables +
upscale clothing
Price flexibility online.
I M P O R T A N C E
F I T N E S S

6. Technology - the
Great Enabler
Consumers have adapted to the on-demand service and convenience that
technical innovation provides. While some retailers struggle to catch up, those
who can keep pace will reap the rewards.
Sources: 1) Forrester Data; 2) SapientRazorfish; 3) Uberall; 3) Strategy Analytics 4) RBR; Link/BrandGarage 5) Juniper Research; 6) The Economist
“80%of CMOs believe their organisation will need to undergo significant
change to keep-up with increased technical and consumer demands6”
“We need to achieve a better balance between service and profitability. We know
technology can help but we haven’t yet figured out what or how to implement.”
How global leaders respond
How we pay (predictions for the next 5 years)
How we shop (…think mobile…)
Among retailers regularly utilising AI, 87% use for customer engagement:
• Handle returns/exchanges
• Product suggestions and pre-purchase question responses
Almost 4 billion
expected to use
smartphones by 20221
71% of global
consumers used mobile
device for retail activity
in past 30 days2
146% increase in “find
near me” searches,
with 88% from
mobile devices3
Self-Checkout
400k terminals
in >60 countries4
Checkout Apps
From 4M users
today to 30M5
Checkout-Free
est. $78B in
transactions6
How we communicate
AI and Voice transforming
how business is done
Almost 24M smart speakers sold in 2017
Amazon dominates at 58% market share, and leverages as a “self-
selecting (Amazon) consumer” if not instructed otherwise.
I M P O R T A N C E
F I T N E S S

7. Not just Consumers
but Marketers
The old model of ‘if you build and advertise it, they will come” no longer applies.
Organic sources are increasingly driving awareness, knowledge and action.
Sources: 1) Turnto; 2) powerrreviews.com; 3) Forbes; 4) Google, NAA, PIB; InMar; Colloquy 2017 Loyalty Census; Forbes/statista.com
“Gaining trust - with customers, shoppers and consumers - will be key to winning.” “We’re trying to increase local agility to address unique consumer dynamics.”
How global leaders respond
Explosion of User-Generated Content
Bottom-up approaches are driving behaviour
78% say increases
purchasing
confidence1
Almost 70% shoppers
look at online product
reviews while in-store1
Advertisers taking advantage
70% of mobile shoppers more
likely to buy if mobile site/app
includes reviews2
User-Generated Content (UCG):
Pictures, blogs, vlogs and testimonials that are created and shared by consumers and users
User Generated Content | 90%
Search Engines | 87%
Emails | 79%
Coupons | 72%
Google ad revenue exceeds
U.S. print ad sales4
Facebook ad revenue $17B in
1H’17 - with 87% from mobile ads3
Retailers encourage and
reward: Dressing room ‘selfie’
mirrors to spur sharing
I M P O R T A N C E
F I T N E S S

8. Source: OxfordSM Global Sales Survey, 2017
Very Prepared
Identifying and leveraging the right data
for actionable insights from big data
Formulating effective strategies
to build brands and drive sales
in e-commerce channels
Assessing and addressing needs along full
shopping journey to drive growth
-------
Creating and implementing well defined growth
strategies that reflect changing channel dynamics
Developing and effectively launching
product innovation that aligns with
consumer, shopper and trade needs
-------
Creating 3-5 year vision for growth with
multi-channel partners
and implementing actions for success
Maximising revenue growth though
trade levers and internal efficiencies
Not at all
prepared
Summary
Even the most advanced
organisations aren’t fully
prepared to address the
changing marketplace

9. ‘Fit for the future, now’ guiding principles
lend stability within the shifting sands
Ask tough
questions,
fast
Work with
people’s
behaviour
Act with
bravery
Be there
for people
Live your
purpose
Own
a simple
experience
“We have zero tolerance for complexity. The OxfordSM team
is helping us be ruthlessly focused on a few, key deliverables.”
“We’re still too silo-ed. So we’re working to become
more fully integrated in our approach.”
How global leaders respond
Simplify
Complexity kills speed.
Ensure upfront strategic
alignment, eliminate silos
and rigid processes.
Be there for people
Brand experience is as
important as the product
itself. Be “on call” in
a way that is totally
‘on brand’.
Act with Bravery
Create new ways to fully
engage your consumers
and shoppers. ‘Doing’ is
becoming as important
as ‘saying’.
Break through
the data
Internalise and address
insights into people’s
decisions & sentiment at
eachstage ofthe
journey.
Ask tough
questions, fast
Be prepared to act,
quickly. Small competitors
with new business models
can rapidly become
big problems.
Live your purpose
Provide a meaningful
‘why’ beyond the ‘what’,
to connect with
consumers and shoppers
and differentiate vs.
competitors.
Work with people’s
behaviour
Let consumers and
shoppers drive
the bus. Be useful
when they need and
want you to be.
Own a simple
experience
Deliver a consistent,
joined-up brand interface
- at each touchpoint.
1 2 3 4
5 6 7 8

10. Recognise any of this in your business?
Let’s talk more
richard.saunders@oxfordsm.com @oxfordsm OxfordSM @oxfordsm +44 7584 906 029