NRF 2018 Retails Big Show-Takeaways from Day One …€¦ · · 2018-01-15Title: Microsoft Word -...
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1 January 15, 2018 Deborah Weinswig, Managing Director, FGRT [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 Copyright © 2018 The Fung Group. All rights reserved. NRF 2018 Retail’s Big Show: Takeaways from Day One The FGRT team is attending NRF 2018 Retail’s Big Show in New York City this week. With more than 35,000 attendees from 95 countries, including 18,000 retailers and more than 600 exhibitors, the trade show is one of the biggest in the retail industry. Below are our key takeaways from the first day of the event. 1) Intel demonstrated several solutions—not products—for retail, all of which are based on data. 2) Factoring weather data into decisions can help companies forecast more accurately, reduce inventory, increase efficiency and raise net income, according to Planalytics and JDA. 3) Walmart still views retailing as a people business and the company continues to feel the presence of its late founder, Sam Walton. 4) Instagram is increasingly becoming a platform through which businesses can connect with consumers. 5) In e-commerce, international retailers are gaining advantages in terms of customer experience rather than price. 1) Intel demonstrated several solutions—not products—for retail, all of which are based on data. At NRF 2018 Retail’s Big Show, Intel showcased several technologies, all of which were offered by other vendors. Data was the theme of Intel’s presentation at last week’s CES 2018 trade show in Las Vegas, and its efforts this year are focused on helping companies manage the flood of data produced by cameras and sensors of various types. Intel has invested $17 billion in developing Internet of Things (IoT) products and it seeks to increase its return on this investment by deploying those technologies across industries, including in retail. Intel’s wide and deep view of the technology landscape enables it to advise companies on technologies and solutions, acting as a matchmaker. Companies then purchase products and services from third-party providers whose equipment and solutions contain Intel components and technology. Users of Intel’s retail technology include China’s JD.com, which is using Intel technology to create an automated store format called D-Mart. In its exhibition booth at Retail’s Big Show, Intel demonstrated a retail shop that uses its technology
Transcript of NRF 2018 Retails Big Show-Takeaways from Day One …€¦ · · 2018-01-15Title: Microsoft Word -...
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January15,2018
DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
NRF 2018 Retail’s Big Show: Takeaways from Day One
TheFGRTteamisattendingNRF2018Retail’sBigShowinNewYorkCitythisweek.Withmorethan35,000attendeesfrom95countries,including18,000retailersandmorethan600exhibitors,thetradeshowisoneofthebiggestintheretailindustry.Belowareourkeytakeawaysfromthefirstdayoftheevent.
1) Inteldemonstratedseveralsolutions—notproducts—forretail,allofwhicharebasedondata.
2) Factoringweatherdataintodecisionscanhelpcompaniesforecastmoreaccurately,reduceinventory,increaseefficiencyandraisenetincome,accordingtoPlanalyticsandJDA.
3) Walmartstillviewsretailingasapeoplebusinessandthecompanycontinuestofeelthepresenceofitslatefounder,SamWalton.
4) Instagramisincreasinglybecomingaplatformthroughwhichbusinessescanconnectwithconsumers.
5) Ine-commerce,internationalretailersaregainingadvantagesintermsofcustomerexperienceratherthanprice.
1)Inteldemonstratedseveralsolutions—notproducts—forretail,allofwhicharebasedondata.AtNRF2018Retail’sBigShow,Intelshowcasedseveraltechnologies,allofwhichwereofferedbyothervendors.DatawasthethemeofIntel’spresentationatlastweek’sCES2018tradeshowinLasVegas,anditseffortsthisyeararefocusedonhelpingcompaniesmanagethefloodofdataproducedbycamerasandsensorsofvarioustypes.Intelhasinvested$17billionindevelopingInternetofThings(IoT)productsanditseekstoincreaseitsreturnonthisinvestmentbydeployingthosetechnologiesacrossindustries,includinginretail.Intel’swideanddeepviewofthetechnologylandscapeenablesittoadvisecompaniesontechnologiesandsolutions,actingasamatchmaker.Companiesthenpurchaseproductsandservicesfromthird-partyproviderswhoseequipmentandsolutionscontainIntelcomponentsandtechnology.
UsersofIntel’sretailtechnologyincludeChina’sJD.com,whichisusingInteltechnologytocreateanautomatedstoreformatcalledD-Mart.InitsexhibitionboothatRetail’sBigShow,Inteldemonstratedaretailshopthatusesitstechnology
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
totrackvisitoranddemographicinformationthatcanbeusedtocreatetrafficpatternsandheatmaps.CandyretailerLolli&PopsdemonstratedIntel-basedfacialrecognitiontechnologythatisusedforcustomeridentificationandloyaltypurposes.TheIntelboothalsofeaturedshelf-stockmanagementanddisplaysystemsandBossaNovarobots,whichcanmonitoron-shelfinventory.
Smart-shelftechnologyondisplayattheIntelboothSource:FGRT
2)Factoringweatherdataintodecisionscanhelpcompaniesforecastmoreaccurately,reduceinventory,increaseefficiencyandraisenetincome,accordingtoPlanalyticsandJDA.PlanalyticsandJDAgaveajointpresentationtitled“ShowMetheWeather”thathighlightedthebenefitsofincorporatingweatherdataintoretailforecastingandplanning.TheinclusionofPlanalyticsweatheranalyticsonJDA’sdemand-planningplatformoccasionedthejointpresentation.AnexecutivefromJDAoutlinedthechallengeofpredictingconsumerdemandanddiscussedthebenefitsofanalyzingsocial,news,eventsandweatherbigdata.
EvanGold,EVPofGlobalServicesatPlanalytics,distinguishedbetweenweatherdataandweatheranalytics,whichcanbeusedtodetermineweather-drivendemand.Goldsaidthatretailersmustfirstdeweatherizeretailsalesdata,i.e.,adjustthedatatoremoveweather-related-demandfactors,sinceweatherrepeatsonly15%ofthetime.Thisadjustmentleavesretailerswithaweather-neutralbaseline.Then,retailersmustaddbackinforecastupcomingweatherimpacts.Planalyticsclaimsthatthisprocessresultsinanaccuracyimprovementof82%insubclasses,aswellasanincreaseoftwotofivepercentagepointsinnetincome,whichishighlysignificantforretailers.Usingweatherdatacanhelpretailersimproveforecastaccuracy,reducestockandinventorycarryingcosts,andensureconsistencyandscalability,Goldsaid.Italsoprovidesotherbenefitsintermsofmarketing,laborplanningandreplenishment.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
SlidefromaPlanalyticsandJDApresentationdetailinghowretailerscanuseweatherdatatoimproveforecastaccuracySource:FGRT
3)Walmartstillviewsretailingasapeoplebusinessandthecompanycontinuestofeelthepresenceofitslatefounder,SamWalton.NRFPresidentandCEOMatthewShayinterviewedWalmartCEODougMcMillononthefirstdayofthetradeshow.Theconversationtouchedonanumberoftopics,rangingfromMcMillon’sstartwithWalmarttohowthecompanyismaintainingitsvaluesdespiteaperiodofrapidtechnologicalchange.
McMillonsaidthathebeganhiscareerwithWalmartbyworkinginacompanywarehouse,whichledtostintsinthestoresand,ultimately,tothehomeoffice.HewilllikelybethelastWalmartCEOwhoactuallyworkedwiththecompany’sfounder,SamWalton.
Muchofthediscussioncenteredonemployeeissues,particularlythecompany’srecentannouncementthatitwouldgrantemployeebonusesandmaternalandparentalleavetocertainemployees.Regardinge-commerceandWalmart’sJet.comacquisition,McMillonsaid,“Althoughwehavebecomeadifferentkindoftechcompany,thepeopleintheprocesswillbethewaywecanwin.”Henotedthatthecompanyisusingvarioustechnologies,includingvirtualreality,inits200-plusacademiestohelpstaffdeveloptheirskills.
McMillonconfessedthatWalmarthadinitially“missedthememo”onsocialissues,butthatthecompanyhadthenstartedlisteningtoitscritics.Theretailer’senvironmentalandsocialeffortsnowincludeagoalofreducingitscarbonfootprintby1billiontons.Regardingthecompanyculture,McMillonsaidthatalthoughSamWaltonpassedawayin1992,hispresenceisstillfeltthroughoutthecompanyandthatallWalmartemployeesknowthattheonlyconstantwithinthecompanyischange.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
WalmartCEODougMcMillon(left)isinterviewedbyNRFPresidentandCEOMatthewShaySource:NRFRetail’sBigShow
4)Instagramisincreasinglybecomingaplatformthroughwhichbusinessescanconnectwithconsumers.Instagramisincreasinglybecomingaplatformthroughwhichbusinessescanengagewithconsumersformarketingandproductdevelopmentpurposes.MorethanhalfofInstagram’s800millionusersconnecttobusinessesvoluntarilyviatheplatform.SincetheintroductionoftheInstagramStoryfeature,athirdofthemost-watchedStorieshavebeenuploadedbybusinesses.
TylerHaney,FounderandCEOofactivewearbrandOutdoorVoices,saidthathiscompanyhasbuiltasuccessfulInstagramstrategybyactivelyseekingcustomeropinionsviaInstagramthroughouttheproductdevelopmentprocess,astrategythatfewretailersuse.J.CrewandNewBalanceareamongthebrandsthathaveutilizedthe“poll”StickerfeatureonInstagramtocollectcustomerfeedback,saidMarneLevine,Instagram’sCOO.
5)Ine-commerce,internationalretailersaregainingadvantagesintermsofcustomerexperienceratherthanprice.SpeakersfromViaVarejo,Brazil’slargestnonfoodretailer,andItalianapparelretailerCalzedoniaGroupsharedtheire-commercepriorities.Bothcompaniesareseekingtoofferbettercustomerexperiencesthroughimprovedclick-and-collectfeatures,deliverbetterpersonalizedmarketingmessagestomultichannelshoppersandreducedeliverytimeforcustomers.Calzedoniaisalreadyabletooffertwo-daydeliveryinsomekeyEuropeanmarkets.MatteoMolon,Calzedonia’sHeadofE-CommerceandCRM,stressedthatthecompany’sgoalistocompeteonservices,notprice,ine-commerce.
LookforourcontinuedcoverageofNRF2018Retail’sBigShowthisweek.
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DeborahWeinswig,ManagingDirector,[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2018TheFungGroup.Allrightsreserved.
DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJohnHarmonSeniorAnalystJingWangResearchAssociateHongKong:2ndFloor,HongKongSpinnersIndustrialBuildingPhase1&2800CheungShaWanRoad,KowloonHongKongTel:85223004406London:242–246MaryleboneRoadLondon,NW16JQUnitedKingdomNewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017
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