Consumers order more and more through the Internet, where there are more choices than in any store. What can retail do in terms of product placement and presentation? We asked Professor Frank Ohle, CEO of the STI Group. With an annual turnover of 300 million Euros and around 2000 employees all over the world, STI is the leading European display manufacturer and belongs to Europe’s top tier in the packaging industry. Ohle counts almost half of Europe’s major commodity manufacturers (FMCG) as well as leading industrial goods manufacturing companies and trading groups among its customers.
You say: By the year 2020 the POS is dead – we are entering the age of the POC, the Point of Communication. What do you envision a modern store will look like in the year 2020?
The Point of Communication – unlike the POS – makes the shopper be center stage, because it is him/her who should be courted. Shoppers are the purchasers, meaning the ones that buy your product. This does not mean that they necessarily also have to be the product users. Shoppers primarily look for solutions – for instance a healthy dinner, a present for a children’s birthday party or the ingredients for a successful barbecue. They don’t necessarily look for individual products. That’s why the product communication at the POS also needs to focus on those needs of the shopper and present alternative solutions. In order to be successful, today it is not enough to just sell the merchandise, but instead you need to stage it and tell a story. The POC is a place of dialog where multidimensional communication occurs. Customers can get information on products, try them out and exchange experiences with other users.
What you describe sounds like flagship stores and megacities. Will the Point of Communication also be in rural areas?
Especially in rural areas, consumer dialog is a big deal and customers appreciate the personal consultation. Megacities are not needed for this, because who actually says that all products in retail have to be arranged in rows on the shelves – with up to five facings side by side? Perhaps in the year 2020 in retail there will only be “demonstration- and test samples“, which can be purchased via scanner or Smartphone and then be provided at the check-out counter or at a packaging center.
Will the big urban cites and shopping centers take away even more buying power from small town centers?
What do you advise for smaller retailers to do? How can they become prepared for 2020?
Does only a retailer who also has an online shop and twitters a lot stand a chance?
Customers today already often complain about sensory overload at the POS. Will there be even more display stands, mobile devices, screens and billboards in 2020?
Will Digital Signage make a nationwide break-through?
Just like gas station attendants today no longer need to climb up a ladder to manually plug the gasoline prices into a board, the future belongs to electronic displays and electronic posters – at least in supermarkets. However, the consumer doesn’t just want video information, but also tangible, three-dimensional product communication in retail. Too much digital information causes a much larger sensory overload than today’s broad range of products.
RFID is currently establishing itself in logistics. Will item tagging by 2020 remain a pipe dream?
Consumers are getting ever older, but they don’t want to be considered old. Wide aisles, bright lights and larger fonts – is that enough though?
Green is currently “in“ in retail. Is this a short-lived hype?
If you were to take a look back in the year 2020, what would be considered the biggest mistake in POS marketing in 2010?
The major reluctance in advertising at the beginning of the year, when everybody was still paralyzed due to the recession. Those that showed counter-cyclical courage, today profit twofold from the rebound.
Interview: René Schellbach, EuroShop.de
