'DIY' Revolution: Empowering Retail CXOs to Shape Customer Experiences

Q1. Define 'DIY' ? Why 'DIY' trend is growing ?

Definition of DIY: DIY stands for "Do It Yourself." It refers to the practice of individuals or professionals engaging in tasks, projects, or activities that they typically would have relied on others to do. Instead of outsourcing these tasks, people take the initiative to complete them on their own using their skills, knowledge, and resources.

Growing Trend of DIY:

The DIY trend is experiencing significant growth due to several factors:

1. Empowerment and Ownership: People are seeking greater control over their tasks and projects. DIY allows individuals to take ownership of their endeavors, boosting their confidence and sense of accomplishment.
2. Access to Information: The digital age has democratized information sharing. Tutorials, guides, and how-to videos are readily available online, making it easier for individuals to learn new skills and tackle tasks they may have previously considered outside their expertise.
3. Cost Savings: DIY projects often involve lower costs compared to hiring professionals. This makes it an attractive option for individuals looking to save money while still achieving their desired outcomes.
4. Customization and Personalization: DIY enables customization and personalization. People can tailor projects to their preferences, resulting in unique and meaningful outcomes.
5. Sustainability and Environmental Consciousness: Many DIY projects focus on upcycling, repurposing, and reducing waste. This aligns with the growing trend of sustainability and environmental awareness.

Q2. Provide market estimates of DIY market across different retail categories?

Q3. Global companies and startups that exemplify the impact of DIY ?

1. IKEA (Global - Furniture and Home Decor): IKEA is renowned for its DIY approach in furniture retail. Customers are provided with unassembled furniture and guided to assemble it themselves. This DIY model helps reduce costs and allows customers to participate in the creation of their furniture.

2. LEGO (Global - Toys): LEGO's building block sets are a classic example of DIY toys. Customers create intricate structures using standardized blocks, promoting creativity and hands-on engagement.

3. Etsy (Global - Handmade and Vintage Goods): Etsy is an online marketplace where artisans and crafters sell their unique, handcrafted creations. The platform encourages a DIY mindset by enabling sellers to showcase their skills and products.

4.GoPro (Global - Action Cameras): GoPro cameras empower users to capture their adventures and experiences firsthand. The DIY aspect lies in users creating their content and sharing it with the world.

5. Makey Makey (Global - Educational Technology): Makey Makey offers kits that turn everyday objects into touchpads and combine them with the internet. It encourages users, particularly students, to learn about electronics and create their interactive projects.

6.LUSH Cosmetics (Global - Personal Care): LUSH's handmade cosmetics allow customers to create personalized skincare and beauty products. The brand emphasizes natural ingredients and transparency.

7. Adafruit Industries (Global - DIY Electronics): Adafruit provides DIY electronics kits, components, and tutorials for makers and hobbyists to create their electronic projects.

8. Arduino (Global - Open-Source Electronics Platform): Arduino offers open-source hardware and software that enables users to create interactive electronic projects, contributing to the growth of the DIY electronics community.

9. Threadless (Global - Apparel and Design): Threadless invites designers to submit their artwork, which is then voted on by the community. The winning designs are printed on various products, promoting user-generated content and DIY design.

10. Raspberry Pi (Global - Single-Board Computers): Raspberry Pi offers affordable single-board computers that encourage DIY enthusiasts to build their projects, from robotics to home automation.

11. Nike By You (Formerly NIKEiD): Nike By You is a customization platform that allows customers to design and personalize their own footwear and apparel. Customers can choose colors, materials, and even add personalized text or graphics. This initiative enables customers to express their unique style preferences, resulting in highly personalized products.

Q4.Why CXOs of leading retail companies should focus on DIY. Provide relevant figures with sources?

1. Customer Engagement and Loyalty:

• According to a survey by Accenture, 75% of consumers are more likely to buy from retailers that recognize them by name, recommend options based on past purchases, or know their purchase history.
• Source: Accenture, "Personalization Pulse Check"

2.Personalization and Customization:

• A Deloitte study found that 36% of consumers expressed interest in personalized products or services, and 48% were willing to wait longer for a customized product.
• Source: Deloitte, "Made-to-Order, Cost-to-Compete"

3.Increased Sales and Profits:

• According to a study by Epsilon, 80% of consumers are more likely to make a purchase when brands offer personalized experiences.
• Source: Epsilon, "The Power of Me: The Impact of Personalization on Marketing Performance"

4.Brand Differentiation:

• A report by Evergage states that 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience.
• Source: Evergage, "2018 Trends in Personalization"

5.Customer Retention:

• According to the Harvard Business Review, increasing customer retention rates by 5% increases profits by 25% to 95%.
• Source: Harvard Business Review, "The Value of Keeping the Right Customers"

6.Competitive Advantage:

• A study by Infosys found that 59% of consumers who have experienced personalization believe it has a noticeable influence on their purchasing.
• Source: Infosys, "Rethinking Retail"

7.Digital Transformation:

• In a McKinsey survey, 86% of executives said digital will drive their business in the next three years, with personalization being a key aspect of this transformation.
• Source: McKinsey & Company, "Global Survey"

8. Future-Proofing Business Models:

• A Gartner survey revealed that 89% of companies compete primarily on the basis of customer experience, a factor that personalization and DIY strategies can greatly impact.
• Source: Gartner, "2019 Customer Experience Management Survey"

5. What are the challenges in adopting DIY in Middle east & South Africa for Global Retailers?

1. Change Management and Employee Training: Shifting to a DIY model requires training employees to assist customers with DIY processes and provide guidance.
2. Customer Education: Educating customers about DIY options, benefits, and usage can be time-consuming and require effective communication strategies
3. Supply Chain Complexity: Introducing DIY products might require restructuring supply chains to accommodate various components and customization options.
4. Quality Control and Consistency: Ensuring consistent quality across DIY-customized products can be challenging, affecting customer satisfaction.
5. Technology Integration: Challenge: Implementing digital platforms or tools for DIY customization might require significant investment and technology integration.
6. Balancing Customization and Efficiency: Striking a balance between offering customization and maintaining operational efficiency can be complex.
7. Customer Support and Assistance: Providing adequate customer support for DIY-related queries and challenges requires resource allocation.
8. Cultural and Regional Differences: Cultural preferences and regional variations in DIY practices might affect the adoption and success of the model.

Q6. Different types of business models for DIY for Global retailers?

B2C DIY Business Models:

1. Customization and Personalization:

• Business Model: Retailers offer personalized products to individual consumers based on their preferences.
• Example: Nike By You allows consumers to design and personalize their own shoes.
• Business Levers: User-friendly design tools, real-time visualization, tailored product options.

2. Modular Systems:

• Business Model: Retailers provide modular products that consumers can assemble and customize.
• Example: IKEA offers furniture with interchangeable components.
• Business Levers: Component compatibility, easy assembly instructions, cross-functional modularity.

3. Subscription DIY Kits:

• Business Model: Retailers send curated DIY kits to consumers on a regular basis.
• Example: KiwiCo delivers science and art projects for kids through subscription boxes.
• Business Levers: Creative project ideas, quality materials, step-by-step instructions.

4. Virtual DIY Tools:

• Business Model: Retailers offer online tools for consumers to design and visualize their DIY projects.
• Example: Behr's ColorSmart tool helps users visualize paint colors on their walls.
• Business Levers: User-friendly interfaces, accurate visualization, integration with e-commerce.

5. Crowdsourced DIY Solutions:

• Business Model: Retailers involve customers in co-creating DIY solutions and products.
• Example: LEGO Ideas allows customers to submit their own set designs for production.
• Business Levers: Incentives for contributors, rigorous evaluation process, IP protection.

B2B DIY Business Models:

1. Collaborative DIY:

• Business Model: Retailers facilitate collaborations among businesses to co-create DIY solutions.
• Example: OpenIDEO's challenges bring together companies to solve complex problems.
• Business Levers: Collaborative platform, industry-specific challenges, knowledge sharing.

2. B2B DIY Tools and Services:

• Business Model: Retailers offer B2B customers tools and services for DIY projects.
• Example: Grainger provides industrial and safety products for businesses to manage their own maintenance and repairs.
• Business Levers: High-quality products, bulk pricing, expert guidance.

3. Educational DIY Workshops:

• Business Model: Retailers offer B2B customers educational workshops for skill development.
• Example: Lowe's hosts workshops for contractors to learn about new products and techniques.
• Business Levers: Expert instructors, hands-on learning, industry-specific training.

4. B2B Customization Platforms:

• Business Model: Retailers provide platforms for businesses to customize products for their own clients.
• Example: Vistaprint offers a B2B platform for businesses to design and order marketing materials.
• Business Levers: User-friendly customization tools, bulk orders, branding options.

5. B2B Virtual DIY Tools:

• Business Model: Retailers offer B2B clients virtual tools to design and visualize customized solutions.
• Example: Armstrong Ceiling Solutions provides a design tool for businesses to visualize ceiling solutions.
• Business Levers: Design accuracy, visualization features, integration with procurement.

Q7.?Developing a business case for GTM for 'DIY toys' by IKEA ? Provide major cost heads and revenue heads ?

Major Cost Heads:

1. Product Development and Design: Costs related to designing and developing a range of DIY toy kits that offer engaging and educational experiences for children.
2. Manufacturing and Production: Expenses associated with producing the DIY toy components, packaging, and materials required for each kit.
3. Quality Assurance and Safety Testing: Investment in ensuring that the DIY toys meet safety regulations and quality standards, including third-party testing if necessary.
4. Marketing and Promotion: Budget for advertising campaigns, online and offline promotions, and events to create awareness and excitement around the new product line.
5. Packaging and Presentation: Costs for designing attractive and informative packaging that highlights the features and benefits of each DIY toy kit.
6. Distribution and Logistics: Expenses related to distributing the DIY toy kits to IKEA stores and other retail partners, including transportation and warehousing.
7. Training and Support: Resources allocated to train store staff and customer service representatives to assist customers with questions about the DIY toy kits.
8. Customer Education: Investment in creating instructional materials, guides, and online content to help parents and children get the most out of the DIY toys.

Major Revenue Heads:

1. Product Sales: Revenue generated from selling the DIY toy kits to customers, both in IKEA stores and through online channels.
2. Premium Features: Potential revenue from offering premium versions of DIY toy kits with additional features, complexity, or customization options.
3. Subscription Models: Income from offering subscription-based DIY toy kits, where customers receive new kits regularly as part of a subscription plan.
4. Brand Loyalty and Customer Retention: Strengthened customer loyalty and repeat purchases due to the engaging and educational nature of the DIY toys.
5. Market Expansion: Attraction of new customers, including parents seeking innovative and interactive toys for their children.
6. Cross-Selling Opportunities: Potential for increased sales of related products within the IKEA ecosystem, such as storage solutions for the DIY toy components.
7. Positive Brand Perception: Enhanced brand perception as IKEA is seen as providing creative and educational solutions for families.
8. Data Monetization: Revenue potential from utilizing data collected through customer interactions with the DIY toy line for targeted marketing and insights.

Q8. Potential Moats for penetrating Indian, Middle Eastern & South African Retail with DIY products/services ?

A. Cultural Adaptation:

• Moat: Tailoring DIY offerings to align with cultural preferences and local practices.
• KPI: Customer engagement and adoption rates among different cultural segments.
• Validation: Success stories of companies that have effectively localized their DIY models for these regions.

B. Education and Awareness:

• Moat: Investing in customer education to raise awareness about the benefits of DIY.
• KPI: Increase in the number of DIY-related workshops, tutorials, or online resources accessed by customers.
• Validation: Growth in attendance and engagement with DIY-related events and resources.

C. Localization of Products:

• Moat: Developing DIY products that cater to specific needs and preferences in these markets.
• KPI: Sales volume and customer feedback for region-specific DIY offerings.
• Validation: Positive response and higher sales of localized DIY products compared to generic offerings.

D. Collaboration and Community Building:

• Moat: Establishing DIY communities where customers share ideas, tips, and experiences.
• KPI: Growth in the number of active community members, user-generated content, and interactions.
• Validation: Vibrant and engaged online and offline DIY communities in the target regions.

E. Economical DIY Solutions:

• Moat: Offering cost-effective DIY solutions that resonate with price-conscious consumers.
• KPI: Pricing elasticity and demand for affordable DIY products.
• Validation: Successful adoption of budget-friendly DIY products in these markets.

F. Customer Support and Localization:

• Moat: Providing dedicated customer support and assistance in local languages.
• KPI: Customer satisfaction scores related to DIY support services.
• Validation: Higher satisfaction rates among customers who engage with localized DIY customer support.

G. Partnerships with Local Artisans:

• Moat: Collaborating with local artisans to offer unique DIY experiences and products.
• KPI: Growth in partnerships with local artisans and impact on DIY product offerings.
• Validation: Success stories of partnerships that have enriched the DIY product range.

H. Integration with Culture and Traditions:

• Moat: Incorporating DIY activities that align with local cultural traditions and festivities.
• KPI: Engagement rates and participation in culturally relevant DIY projects.
• Validation: Positive customer feedback and increased engagement during culturally significant periods.

Q9.Navigating the Path Forward: Seizing the Opportunity with DIY as a Customer Experience Catalyst

In the evolving retail landscape, DIY emerges as a formidable instrument for sculpting unparalleled customer experiences. The rising global tide of DIY, driven by personalization potential, endows customers with empowerment, fostering heightened engagement and unwavering loyalty.

Sources and data:

• Euromonitor, Nielsen, Ipsos reports validating burgeoning DIY trend and market valuation projection.
• IKEA, Lego and Nike serve as prime industry references showcasing successful DIY strategy implementations.