Did you know that Canada’s five biggest banks are among the 20 largest fossil fuel financiers in the world?
Since the Paris Agreement was signed in 2015, they have invested over$900 billion into the fossil fuel industry. This means that your hard-earned dollars are being invested in projects that make it impossible to meet Canada’s climate targets. While not well known, the financial sector is the missing piece in ensuring a climate-safe future.
Last week, the CEOs of Canada’s top 5 banks were in Ottawa testifying about their role in the climate crisis. Environmental Defence was on the front line of this critical moment. We were invited to testify in this important study and use our expertise to advise policy solutions to align our financial system with climate action.
Canada can only keep a safer climate if finance aligns with climate action, and new rules from the government would help make that happen. And, we are creating public awareness of the issue and mobilizing Canadians to speak up by writing letters and attending rallies- increasing the pressure on the federal government to take action.
At a time when climate-fueled disasters (such as wildfires, droughts and floods) are rising, it’s ludicrous that Canadian banks are allowed to fund oil and gas industries at a rate of over $100 billion per year. We will be watching future proceedings closely. And, we will continue to push the federal government to ensure that Canadian banks are helping, not hindering our climate goals. For The Silo, Alex Walker. Program Manager, Climate Finance for Environmental Defence.
Retail is on the precipice of a renaissance, which will be characterized by great advancement and economic rebirth.
To get there, businesses need to start by acknowledging that no matter where they operate in the world there is a pressing need to exercise commercial discipline. And a recognition that the metrics of yesterday’s retail will not fuel the growth of tomorrow. However, this non-negotiable commercial pragmatism must be balanced with an appreciation that while exciting technology innovation still dominates C-suite and elevator conversations, the next big evolution is an imminent renaissance of hyper-experiential retail.
The Commerce Department in the US announced that consumer spending rose in February by its biggest margin in a year, while in the UK inflation was at its lowest level in two years as retailers compete for customers, here in Canada RBC reports that “consumer spending data marked a stronger start to Q2 than we expected. But one month does not make a trend. We are cautiously optimistic that consumer activity will improve this year- as adjustment to higher rates hits households less hard in 2024.”. However, whether conditions are favorable or challenging, brands simply must perform, and perform well, in an environment where there are more competitors than ever before.
Beyond this, consumers can easily be described as fickle
For example, if they are not happy with one experience they’ll move on and there are dozens, hundreds, and if we think globally, thousands of other brands waiting in line to capitalize on their spend. While many consumers are traveling far and wide to experience the best from all around the world, TV and content across platforms is resetting what consumers want, need, and expect from brands by exposing them to new lifestyles and ways of living.
An example of how this brand we all know is re-inventing how customers experience their products…..museum exhibition style!
Retail dominated at CES earlier this year, and almost all conversations revolved around artificial intelligence (AI) technology to drive seamless and frictionless retail, personalization, and much more. Technology is enabling user experience that wouldn’t have been imagined a decade ago. However, rather than being seen as an end, technology should be understood as the means for giving consumers what they want.
The NRF’s Retail’s Big Show this year showcased the best of technology, yet some key themes to emerge were that customer interaction in-store is as imperative as the transaction and that Generation Alpha, while not yet capable of earning money, has immense influence on their parents who do. While these true digital natives are technologically adept, they value in-store and physical experiences. Do not for a second underestimate their influence on their parents.
Gen Z, the first generation to have had a smartphone their entire lives, are also known to be digitally savvy.
While generalizations across entire generations are never helpful, it is widely agreed that this cohort researches brands and products online but – and here’s a surprise to those focusing only on technology – according to global management consulting firm Kearney, 81% of Gen Z prefers to shop in stores, while more than half of them do so because they say it helps them disconnect from the digital world.
All the signs are there for retailers willing to see them. Our two youngest generations are telling us what they want. What does this look like in practice? Amazon launched its Just Walk Out technology a mere six years ago, accompanied by hyper-advanced ceiling-mounted cameras, shelf sensors and algorithms. Amazon has announced it is removing the technology because it alienated shoppers who felt that a trip to the grocery store felt like they were stepping into a high-tech vending machine. This speaks directly to what consumers want from an in-store experience.
Retail’s next big opportunity is hyper-experiential retail, and we are at the precipice of this explosion of customer experience driving consumer choice and loyalty because of a confluence of a few big forces at play.
Shifting of the tectonic plates
The first is technology, which is enabling innovative and effective experiential retail. Another is that as the pandemic fades into memory, people want to be out, they want to spend moments with other people outside of their homes. According to insights from Canvas8 looking into what they call experience hunters, 58% of consumers believe that immersive experiences will influence their next purchase. In other words, six out of ten people place a high value on how retail makes them feel.
Artificial Intelligence will be used to supplement customers shopping experiences.
The third is that there is no longer a clear line between where retail starts and where it ends. Almost everything is a retail experience now, no matter if you’re at an airport, a fuel station, or commuting – retail is everywhere, meaning there are hundreds of different competition points for retailers across millions of different journeys. The last big force is that e-commerce has slipped into a holding pattern. Effective, efficient, and convenient, but boring and predictable. Influencers have taken over product choice even leading the conversations on behalf of brands. But consumers want more fun, they are seeking discovery – the magic of retail past.
This all has very real permutations for brands that have built their market presence on legacy retail experiences. They need to innovate quickly to keep up with pioneers who will keep raising the bar of experiential shopping. In addition to this they will be competing directly with startup brands and businesses that were direct-to-consumer, but are moving into the realm of retail experience without the baggage of the past. This area alone will likely see exponential growth in the next few years.
From purpose to experience
Defining brand purpose has been front and center for a number of years, which is right because purpose is foundational. However, purpose doesn’t tell you everything about how a customer will experience a brand. In light of this, brands will be challenged to define how their brand is experienced across all dimensions. In other words, not just their voice, not just the words that they’re using or their personality and identity, but how they’re physically coming to life, how they’re meeting customers at the important moments across the retail journey and creating value, intrigue, excitement, attraction, and desire.
This type of discovery is crucial for brands to drive longer-term loyalty in a hyper-competitive landscape. It starts with dimensionalizing the brand, in other words thinking about how it should look, feel, sound, smell, and taste – this is the cornerstone of an experience vision. Once a brand has done this it needs to be precise in how it chooses the moments where it wants to explode into life for consumers. Much of this precision will come from a deep understanding of consumer insights and experience barriers and how to overcome them, but also from creativity, imagination and innovation – a true path to differentiation.
Agencies and consultants need to help retailers by mapping out a diagnostic journey of consumers. This enables brands to understand a consumer’s entire journey, not just within an experience, but within the moments and choices leading up to an experience. How do they make choices, what drives them, what motivates them, what distracts or pushes them away from brands? When do they make these choices?
The best technology can aggregate multiple data sources to help diagnose brand issues as well as predict where and why brands are losing consumers along their journeys. It is important for retailers to find answers about where they are not maximizing consumer desire in key moments. However, landing on the right answers requires asking the right questions.
The seeds to these questions were planted at CES earlier this year, when some of the biggest retailers and tech giants in the world made it abundantly clear that their vision of sustainable, long-term growth lay in marrying technology with humanity, signaling a return to appreciating the value of humans and how we feel. We all know what experiential retail is, and the world is awash with various case studies of highly successful campaigns. Expect this to turn up a notch to become hyper-experiential. Especially that according to Canvas8, quoting Unibail-Rodamco-Westfield, 8 in 10 people globally are willing to pay more for elevated shopping experiences.
Genuine human connection and personal interactions are going to drive retail growth, innovation, and brand loyalty this year and beyond. Brands need a plan to thrive in this renaissance of hyper-experiential retail. The rules of the past aren’t going to work in the new era of modern retailing where consumers are telling us what they want, we just need to listen, see around the corner and bravely walk through the door. For the Silo, Rhonda Hiatt
Rhonda is the global CEO at Clear, part of M&C Saatchi. Featured image: Galleria Vittorio Emanuele in Milan Italy- using historic storefronts and buildings in newly realized enclosed mall retail spaces.
Dear Silo, you’ve probably heard me talk about my daughter Hannah in the past. She has been called many things: “The future of social media”, “Eco-Warrior”, “Changemaker” and “Activist”. At 10 years old, she is all of these things. And now, she can add Free The Children’s “We Day” speaker to the list. There will be nine We Days across Canada this school year, plus two in the United States. And the first U.K. We Day will happen in London next spring. [More on what “We Day” is all about below CP]
She created her blog, www.CallMeHannah.ca , at 9 years old, with the goal of sharing her growing knowledge and concern for the environment. Having always loved animals, Hannah made the connection between animals and the effects of environmental destruction on their habitats and lives. Hannah has become an engaged global citizen seeking to further her own understanding of her connection to and responsibility to the world. Believing that even the little things that we do add up to make a difference, her journey and discovery meet her call to action through her blog.
Issues that Hannah has written about in the past year include eco-friendly living, fair trade, bullying, clean water and child labour. She seeks inspiration and motivation from those who have come before her and regularly features the stories of her role models on her blog.
Not limiting herself to her laptop, Hannah has put her words into actions. She organized a shoreline cleanup in her community, was a WWF Earth Hour Team Captain 2013 and spoke at the WWFs Earth Hour event in Toronto, was the official “on the ground eco-blogger” for the JUNO Awards and launched We Create Change. Her impassioned speech at two local schools motivated her peers to collect 97,500 pennies for Free The Children’s clean water projects. An effective communicator, Hannah is comfortable and confident on both sides of the camera or in front of a crowd. She has honed her skills as an interviewer through conducting interviews with Craig Kielburger, Spencer West and Severn Suzuki. Hannah has appeared on CanadaAM, The Marilyn Dennis Show, APP Central, CBC’s Fresh Air and The George Stroumboulopoulos Show. She has been featured in a spotlight from Chickadee Magazine and named as a Champion of the Earth in Owl Magazine and was the youngest team captain for The WWF’s Earth Hour in 2013. As you can see, I am very proud of my daughter and her efforts to improve the world we live in. Her current focus is on We Day.
“We Day is a room that can transform people, where messages about bullying and social issues can resonate and a place where students can find people just like them,” said Free The Children ambassador Demi Lovato. “Growing up I was forced to deal with many personal struggles and I craved a space where I not only belonged but felt powerful enough to make a difference. To me, that‘s what We Day does – it brings people together in a day of celebration for world change, showing them they aren‘t alone in their journey and that it is cool to care. And I am so grateful to be a part of that.”
“As kids, we face different pressures all the time,” said Austin Mahone, Award-Winning American pop singer. “You‘ve got to surround yourself with positive people in your life, and that‘s what We Day does. It brings people together to celebrate the difference we can make for each other. I‘m so excited to be a part of it for the first time this year!”
We Day is a stadium-sized educational event and a movement of young people leading local and global change. We Day is tied to the year-long program, We Act, which supports students and educators with free educational resources, student-led campaigns and support materials to help turn the event‘s inspiration into sustained activation. Since 2007, youth involved in the We Act program have raised $37 million dollars for over 1000 local and global causes and logged more than 9.6 million volunteer hours.
“I had the opportunity this past summer to participate with Free The Children‘s communities in Kenya, and see first-hand the lasting impact that youth in North America are making through their charitable work,” said Joe Jonas from the Grammy® nominated, multi-platinum band the Jonas Brothers. “I understand what it means to these communities to have access to clean water and an education and I was thrilled to get involved by committing to help build two schools overseas with Free The Children. It may seem like a simple assignment to make one local and one global commitment, but these efforts fundamentally impact the lives of people around the world.” Eric Halper.
Free The Children is an international charity and educational partner. Founded in 1995 by international activist Craig Kielburger, Free The Children believes in a world where young people are free to achieve their fullest potential, and empowers youth to remove barriers that prevent them from being active local and global citizens. The organization‘s domestic programs—which includes We Day, Free The Children‘s signature youth empowerment event—educate, engage and empower 1.7 million young people across North America, the UK and around the world to become engaged global citizens. Its international projects have brought more than 650 schools and school rooms to youth and provided clean water and sanitation, health care and food security to one million people around the world, freeing children and their families from the cycle of poverty.
The organization has received the World’s Children’s Prize for the Rights of the Child, the Human Rights Award from the World Association of Non-Governmental Organizations, and has formed successful partnerships with leading school boards and Oprah’s Angel Network. For more information, visit www.freethechildren.com.
