Retail Challenges in the Digital Economy (Off LIne to On Line in Singapore)
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Transcript of Retail Challenges in the Digital Economy (Off LIne to On Line in Singapore)
Confidential
Retail Challenges in the
Digital Economy
Off Line
to
On Line
O2O
22th July 2015Dr Tan Guan Hong
ConfidentialUpdated: 28/01/2017Pg 2
Mega Trends of On-Line and Off-Line Retail
Year on Year % growth
Global Trends
ConfidentialUpdated: 28/01/2017Pg 3
APAC forecasted to lead in global
tourism for next couple of decades.
Source: Singapore Tourism Board
10 M visitors
growth / year
Global Trends
ConfidentialUpdated: 28/01/2017Pg 4
Source: Singstat
JAN-DEC 2014: -3% VS JAN-DEC 2013
Relatively Flat growth in 2014 ~ 2015 !
Singapore Trends
Confidential
Why is A*STAR Focusing on Retail?
Updated: 28/01/2017Pg 5
• Wholesale & Retail Trade is the most significant portion of GDP
From : Singapore in brief 2015, MTI
Singapore
Confidential
Mega Travel Trends in Asia-Pacific
• More Personalisation - ‘Me, Me, i Effect’
– More niches, smaller groups and individualistic
unique experienced travellers
– Lesser large, organised travel “we” groups
– Willingness to self-manage/book travel via the web
• Mobile Convenience
– Business travellers and leisure travellers now
routinely use these devices for travel & travel-
related arrangements and bookings
– Use social networking sites during travel
Updated: 28/01/2017Pg 6
ConfidentialUpdated: 28/01/2017Pg 7
Structured Tourist
Group with
planned activities
Unstructured Tourist
with Individual self plan
activities
ConfidentialUpdated: 28/01/2017Pg 8
The population grew up from the computer generation
using eyes and fingers to interact
This is the “i” Generation of iWatch, iPhone and iPad
The self centric world of “i” or me, me, me …
Everything revolves round “i”Knowing this, how do we grow business in future ?
Gen Y & iGeneration
i ii
Confidential and Copyright9
The total fertility rate was 1.19 in 2014,
compared to 1.29 in 2013, the Dragon Year. This
is below the replacement rate of 2.1 per cent.
Manpower Shortage
Confidential
Singapore’s Challenges
• Increasing costs
– Manpower
– Land
• How to increase outreach to
tourist
– First time
– Repeated
– Younger Tourist
– Individualistic iTourist
• Tourist interests
– Who: Interests, Demographics
– Pre-arrival data for Targeted pre-
arrival Marketing
– Traveling patterns (elsewhere
and in SG)
Updated: 28/01/2017Pg 11
• Insights to Develop New SG
Attractions
– Who to target
– Next generation tourists
• Budget airlines
• SG- Malaysia high speed
rail
– Relevant latest events &
promotions
– What different ways to entice
spending
Confidential
Trends in Retail
• Productivity – Max. Sales with Min. Cost
• Challenge of Rising Costs
• Looking for Incremental Sales
– Threats/Opportunities of On-Line eCommerce
• Emergence of Multi-Channel Shoppers
• Opens up $21.8B market at our door-step
– Social Trends – Emerging Market
Updated: 28/01/2017Pg 12
Confidential
Singapore Biz Cost Structure
Updated: 28/01/2017Pg 14
• Retail Costs in Labour is 35% & Rental 28% of Total Cost
Confidential
Opportunity
• High cost to consumer vs. total manufacturing cost
Reducing overhead costs is a
Win-Win-Win for consumers,
manufacturers and our spin-off !
High Cost to
Consumer v.s.
Total
Manufacturing
Cost
ConfidentialUpdated: 28/01/2017Pg 16
• Only High Margin business can afford to maintain urban footprints
• Virtual Store & Online Catalog reduce Retail Space/Inventory• http://sbr.com.sg/retail/exclusive/singapore-retailers-turn-technology-boost-productivity
High $ item
Low $ item
Confidential
Emerging Trends in Retail
1. eCommerce is growing very fast
2. Smartphones are forcing retailers to come up with new biz models
3. In-person shopping is being transformed by technology too
Updated: 28/01/2017Pg 17
Confidential
Social Media provides “She” Insights
Updated: 28/01/2017Pg 19
From : Financesonline.com
Digital “She” Shopper
ConfidentialUpdated: 28/01/2017Pg 20
• Increased tourist spending (economic impact)
• Discovery tourism for connected generation
• Accurate regulatory statistics
• Pro-active brand monitoring
Inbound
Tourist
Big Data Analytics
• Places of tourists' interest
• Authentic experience & event
• Relevant & emotive recommendation
• Effective (data-driven & ROI-based) marketing
• Increased sales
• Future Investments for attractions upgrading
Other social profile
& behaviour
+
• STB Overseas offices (Pre-arrival)
– Insights
– Targeting marketing, promotions, etc.
One App
when in SG
…
• Demographics
• Travel patterns,
• Places of interests, events, promotions
Tourism Example
Higher
resolution
of tourist
pattern in
SG
ConfidentialUpdated: 28/01/2017Pg 21
Traditional Handicrafts
•Videos:
•Images:
•DIY courses:
Chinese Calligraphy
•Basic introductory course:
•Videos:
•Images:
1950s shop house
•Architecture:
•Layout:
•Significance:
•Videos:
•Trades:
Trishaw rental tour
•Special offer:
•Book in advance:
•Language specific Guides
Kong Chow Cultural
Centre
•History:
•Famous people:
•Videos:
•Images:
Creating an authentic & cultural experience… In Singapore
In SG Tourism Example
www.i2r.a-star.edu.sgwww.facebook.com/i2r.research
Online:
Thank You
Updated: 28/01/2017Pg 22