HP Innovation Journal Special Edition: Retail Transformation | Page 9

THE POWER OF PERSONALIZATION When a product on the shelf calls your name TARA GIROUD “Humanizing technology is the thing that really helps your business grow.” JOSE GORBEA HP Brand Owner for Digital Print, EMEA The era of “one size fits all” products is over. From drink labels bearing the tartans of various Scottish clans to mag- azine covers adorned with individual messages for its top subscribers, personalized products are what today’s consum- ers want—and they’re willing to pay a premium for them. A shift in the world of retail is driving consumers to demand more from brands. Shoppers expect more than just the same products on the shelf—those products need to be customized and connect with shoppers on a deeper level. “We live in a shoppertainment society,” says retail consultant and trends expert Nicole Leinbach-Rey- hle, founder of Retail Minded. “We, as consumers, have basically said to brands and retailers, ‘Hey, entertain me. Give me something worth wanting,’ and that comes down to personalization.” According to the Deloitte Consumer Review, 36 percent of consumers want personalized products and 22 percent are willing to share some personal data to get it. For millenni- als and Gen Z those numbers are even higher. A study by sparks & honey and commissioned by HP broke down the desire for personalization by generation, revealing that 45 percent of millennials want customized products, and that number is expected to climb to 53 per- cent for Gen Z. And it’s not just the newest generation of consumers, who grew up with social media and targeted news streams, expecting customized products. Some 27 percent of baby boomers and 32 percent of Gen Xers also want products that speak directly to them. Additionally, consumers are willing to pay a premium for a personal- ized product. In some sectors, such as fashion and home goods, more than three out of four would pay at least 10 percent above list price. PERSONALIZATION IN PRACTICE Recently, HP brand owner for digital print in EMEA Jose Gorbea unveiled a new “personalization framework” for brands, backed by the new research from sparks & honey, and a host of proof points to show how brands could grow through personalized digital print. 7