Post on 28-Jul-2015
Four rapid disruptions re-defining the global retail industry…
“Digital natives” – the age group of 18-24 years - shopped the most via mobile phones
Global demographic shifts
Mobile phone technology
How consumers interact, make decisions, check information, check stock, find stores, communicate
Proliferation of social networks
Developing world: Part of the daily fabric of shopping
Developed world: More communication tool than shopping tool
Evolving role of the store
Premium in the future will be on creating unique, brand-defining offers that keep customers coming back
Increasingly digital world creating empowered consumers and new business environment
Influence on Product Design
Requirement Change
Shorten Lifecycle
Closer Interaction
Demographics & Reach
The concept of customer interaction is drastically changing
Data Explosion
Where is all this data coming from?
Should I be looking at all this data?
What will I get from this data?
What are my competitors doing?
Social Media Why aren’t we tweeting?
Let’s start a blog?
Should we be on facebook?
Growth of Channels
What are the new channels and devices?
Should I be integrating all the channels?
Is my customer on all channels?
Shifting Consumer Demographics
Can I Profile my Customers
Faster time to market: Faster release of products to the market
Clarks’ 3D printing shoe prototypes on demand:
–Cut design/development cycle to weeks (prototypes in few hours vs. 2–3 weeks)
–More models of higher quality in shorter time
–Release shoes earlier in the market
Enhanced user experience (UX): Focus on customer experience
Volvo’s Roam Delivery service:
Via a smart phone app, car owners can have online deliveries left in vehicles or have returns collected from them. Owners can track when their vehicle has been opened and locked
Personal shopping via Google+ Hangout video conferencing:
Users can ask for specific clothes, book one-on-one video sessions and purchase items
Technology enabling retailers retain their competitive edge and stay relevant to their consumer base (1/2)
Digital experience
RFID tags prompt videos on “magic mirrors” about product features
>10% of all orders in flagship store now placed using iPads
Augmented reality:Virtual reality experience
Interactive Sofa Studio allows customization and on-demand manufacture of sofas through 3D printing
Gives users something tangible to base their purchase - improved retail experience
Automated delivery:For last-mile delivery
Technology enabling retailers retain their competitive edge and stay relevant to their consumer base (2/2)
Inventory accuracy to 97% in RFID pilot
– Self-driving cars delivering products to customers
– Robotic drones delivering in 30 minutes
– DHL using PARCELCOPTERS – to deliver medication and other urgent goods in Germany
Automation technology:Increased supply chain productivity Electronics shelf
labelling to automate price changes and save associate time
Automated scheduling based on forecasted demand to reduce costs due to oversupply of labor
Digital disruption – Top Priorities For CIOs In 2015
A
• Social: Sales & marketing,
customer service and recruitment,
linking insights to R&D & design
• Mobility: Mobile POS/payments,
digital signage, context-aware tech
• Analytics/Big data: Descriptive &
predictive to prescriptive, cross
channel analytics
• Cloud: Balancing speed & agility
and privacy & security. Security
(privacy/protection), regulatory
(data retention within boundaries)
• Unified transaction platform:
Fully integrated systems and
pulling together business activities
like cross-channel order,
promotion, inventory, customer
data into one environment
• Data security: Need for speedier
cloud security system. Data
management and collaborative
services to help maintain customer
confidence. Innovation in prevention,
detection, remediation
• Enterprise security: Beyond
compliance with EMV (smart payment
cards) regulations to protect
consumer data collected at point-of-
sale; other potential cyber-attack
weakness like service provider
network links, mobile devices, email
• RFID: Track products from supply
chain to consumer
• 3D printing: “Just in time” supply
chain – lower cost of inventory,
transportation
• Build a single customer experience
• Understand CxOs: Partnerships among IT, marketing, stores, and others - change CIO’s role to being a strategist
• Omni-channel: Integrating various selling channels - see inventory across channels in real time
• Need for speed: Strong governance to measure strategic, tactical and operation imperatives needs
• Up-skill staff:oAlign ageing technology / skills
workforce with new-skills workforceoAddress clients’ ageing technology
needs
•Modernize merchandising systems to optimize assortment, pricing, inventory; also support more frequent price changes
SMAC technologies B Cyber Security C Ecosystem
India’s IT-BPM retail landscape - facts and trends (1/2)
India’s IT-BPM exports: RetailUSD billion
FY2010 FY2015
4.6712808558677
5
9.8
India Retail Market
• India: Ranks 15th on A T Kearney’s 2015 Global Retail Development IndexTM
• Market size: USD 1.3 trillion by 2020
• India: Good opportunity in single-brand retail, cash-and-carry, and eCommerce
CAGR+15%
India IT-BPM exports: Retail
• 10% share in total IT-BPM exports
• 2X growth in exports since FY2010
• eTailing: Fastest growing e-Commerce segment - USD 2.4 billion; >55% CAGR since FY2010
TR
EN
DS
• Indian IT-BPM firms’ niche capabilities - improve supply chain, operational efficiencies, streamline/optimise store ops, manage merchandise, customer loyalty & build/manage multi-channel capabilities
• Analytics: Merchandise & customer analytics, churn analytics, inventory mgmt, supply chain optimisation, sales performance, market mix modeling, CRM, fraud detection and prevention
India’s IT-BPM retail landscape - facts and trends (1/2)
Key IT-BPM investments in retail
• Consulting/implementation: Product/tech implementation, bid data/analytics, custom application development and maintenance, process consulting
• CRM: Customer support, campaign mgmt marketing/promotion, customer insights/retention mgmt
• SCM: Demand/inventory planning / forecasting, procurement & warehouse
• Transaction processing: Real-time order processing mgmt, payment processing, risk/data mgmt
• Sales & marketing: Channel selection, merchandising, internet marketing, sales campaign analytics, etc.
Case examples
Syntel’s Shopper Assist: A consumer mobile app - Consumers can maintain shopping lists, access to product inventory, retailers can offer personalized services - enhance customer loyalty and engagement
Lenskart enables users to try and buy a customized pair of glasses
Snapdeal launched its logistics platform, “Safeship”, that offers an integrated order fulfillment engine to sellers
Flipkart to use analytics to help SMEs scale up business and target right customers - help decide right selling price, payment automation, proper packaging, transportation, brand building
Over 500 eCommerce centric startups in India provide opportunity for retail players to partner and expand market reach
~3,100 Start-ups
~2,000 Digital
~5,00 eCommerce
Indian Start-ups, 2014
eTailing/ RetailApparels, fashion & lifestyle,
mobile handsets & accessories, electronics, etc
~200
eCommerce enablers
~70
~50-60
~15-20
~50Travel/ Ticketing
Ticketing services, hotels and tour packages online
ClassifiedsOffering classifieds space to advertise
product, job, matrimony sites, etc
Financial servicesOnline sale of insurance
related services, utility bill payments, other transactions
Other online servicesOnline discounted deals, coupons, search sites etc
Real time analytics & trackingDelivery &
logistics
Mobile payments
Mobile advertising
Consumer marketing
intelligence
Rise of the eTailers