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NRF 2024 Retail’s Big Show daily recap: Emerging luxury consumers and the Claire’s Zalpha expertise

John Furner, president and CEO of Walmart US, at NRF 2024: Retail’s Big Show, US

US – On the third and final day of the NRF 2024 Retail’s Big Show, insights ranged from the resilience of luxury department stores to Crocs’ commitment to being a polarising brand.

Speaking about department store Saks Fifth Avenue’s enduring relevance, CEO Marc Metrick flagged how ‘luxury consumers can’t be painted with one brush’. According to Metrick, luxury brands need to dig deeper than target consumers based only on wealth, although he admitted that 2% of Saks’ consumers make up 50% of its revenues. ‘We have emerging luxury consumers who will get that handbag and grow with us over time. Saks should be with them as they get promoted, married, have kids, etc. I don’t like the word aspirational; it reeks of unqualified as if they don’t belong in our stores.’

Later, in a panel entitled How Crocs and Claire’s Became Cool Again, executive vice-president and chief marketing officer at Claire’s Kristin Patrick delved into how the brand is targeting Gen Z and Gen Alpha consumers. ‘We have 19m members in our loyalty programme and we use our social channels to learn about where our core consumers are shopping,’ she said. ‘That’s why we started to take our global brand footprint outside of our operative channels. You can now find us not only in Walmart but also in Galeries Lafayette in Paris, next to Burberry and Dior. We also know Zalphas are big gamers; they are very into the metaverse.’

In 2022, the brand unveiled ShimmerVille on Roblox. In this branded world, players can explore, work, play, shop and connect with friends – and even get their avatar’s ears pierced. Claire’s is also heavily investing in video, as seen with the launch of the Dear Claire’s series on YouTube in 2023 and a new partnership with Sony Pictures Television Kids. ‘To reach this generation, you have to be willing to fail and to learn quickly,’ said Patrick. In The Zalpha Reckoning, we previously analysed how Zalphas are wise beyond their years and will demand more innovation, transparency and purpose beyond profit from brands.

Strategic opportunity

Find inspiration in the ability of Claire’s to bring its signature ear-piercing service to Roblox. Can you digitise your signature goods and services within an immersive world like ShimmerVille, where avatars will experience your brand seamlessly as part of the game?

Fred & Farid launches AI production studio Aimagination

Aimagination by Fred & Farid, US

Global – Creative agency Fred & Farid has launched a global AI production studio, tailor-made for the advertising industry. Named Aimagination, the studio will bridge conceptual creative advertising culture with generative AI to ‘redefine the exploratory potential of AI for the benefit of brands’, according to a press release.

Recognising the need for AI solutions to be well crafted and strategically aligned to each brand, Aimagination uses the latest AI tools to create customised campaigns that allow chief marketing officers (CMOs) to build on their brand codes in limitless ways.

To date, the production studio has generated a gallery of over 4,000 images that are 100% AI-generated, with no film or photo production involved. Fred & Farid’s studio highlights the ‘limitless image-ination’ in the Generative AI Creativity Market, as consumer-facing generative AI platforms begin to redefine the nature of creative work.

Strategic opportunity

Whether you use it to expedite content creation or to stand out from the crowd by harnessing new AI aesthetics, embrace generative AI as a tool to empower creativity in your business

Introducing Afeela, a car with a PlayStation controller as a steering wheel

US – At CES 2024, Sony Honda Mobility (SHM) has exhibited a prototype of Afeela, a joint automotive venture taking in-car entertainment to new levels. What sets the Afeela apart? The boundary-defying car concept was designed to offer new possibilities on top of conventional car values by combining mobility with intelligence.

To create a new user experience in mobility, the Afeela is equipped with an ultra-large dashboard screen display, and the steering wheel has been swapped for a PlayStation DualSense controller. SHM is developing entertainment and gaming features in partnership with Epic Games, making the most of tech integrated within the car. Sony and Honda have also announced that they’re in collaboration with Microsoft to roll out an AI-powered conversational personal agent.

At LS:N Global, we are monitoring Auto Entertainment developments, drawing from virtual platforms, extended reality and even cryptocurrencies to create immersive and entertaining in-vehicle experiences.

Afeela by Sony and Honda, US

Strategic opportunity

The Afeela concept exemplifies how brands can tap into the gaming world. Regardless of what sector your business is in, consider gaming elements that could augment your product or service

Stat: Ikea’s Life at Home Report 2023 crystallises 10 years of insights on home living

MARKERAD collection by Ikea and Virgil Abloh, Sweden

Global – Furniture retail giant Ikea has launched its tenth Life at Home Report 2023. Drawing from a survey of over 37,000 people across 38 countries in 2023, along with synthesised data from nine previous editions, the report reveals several key insights into the emotional aspects of a fulfilling home life.

Home emerged as the favourite place for 52% of respondents, with this number rising to 60% for those with pets. Here, privacy takes centre stage, with a growing disparity between desired and actual privacy at home. Only 45% feel their homes offer enough privacy for all residents, while 33% consider the right amount of privacy crucial for contentment and ease at home. Striking a balance between togetherness and privacy remains challenging. Home is perceived as a sanctuary, fostering emotional security and resilience, with 30% believing their ideal home should enhance physical and mental wellbeing.

The report also highlights the lasting impact of the pandemic on home life. Changes made during Covid-19 restrictions persist, with a trend towards multi-functional living spaces accommodating work, play and relaxation. These findings reinforce the increasingly influential role our homes play, not only as spaces for security and comfort, but also increasingly as hubs for retail innovation – which we addressed in Home States Futures: Residential Retail.

Strategic opportunity

Consider how you can bring your brand into consumers’ homes. Live-streaming, virtual appointments and online consultations all offer the opportunity for consumers to meaningfully engage with products and services without leaving the comfort of their couch

Download: 2024 Events Calendar

This year, we have a full line-up of new reports, events and webinars at The Future Laboratory covering what is new and next in your industry. Download our full events calendar for 2024 here.