>>apmg 8119: digital enterprise report prepared for: (mariia, dipthi, alexey & shri)...

>>APMG 8119: DIGITAL ENTERPRISE

REPORT PREPARED FOR:

(Mariia, Dipthi, Alexey & Shri)

POSTGRADUATE DIPLOMA IN BUSINESSAPMG 8119: DIGITAL ENTERPRISE

2015

By Digix


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Defining an Interactive Space


CONTENT

Return of the milk man -Global Trends in Retail Market Space

New Zealand’s Retail market space

Inside Countdown

Conclusion & Innovation


Global Trends in Retail Market Space

Online is much less profitable than in-store retailing

Even in developed e-commerce markets, online grocery is a very small contributor to total grocery sales

UK leads in online grocery shopping yet internet sales is just 6% of the grocery spending in 2014.

Yet in value terms 6% of UK grocery sector is equivalent to $13.9 billion

Figure is <3% in other major markets such as US, France & Germany

YOY growth in established Internet grocery markets (UK & France) averages 31%,

In emerging markets China and the US, it averages a huge 97%. IBIS World quantifies it is an $11 billion industry in US.


Global Trends in Retail Market Space

6 E-Commerce

Option

Home Delivery

In store Pickup

Drive-Through Pickup

Curb side Pickup

Virtual Supermarket

Automatic Subscription


Society

Technology

SpacePlace

Real

Virtual2 W

ay

1 way

According to Castells, 2000

This change is brought about by us & that’s how Online retail is slowly but steadily flourishing


Global Trends– Survey by Nielsen 2015.


Global Trends – Survey by Nielsen 2015.


Opportunities created by E-market place:


As highlighted by Rayport & Sviokla,1994 place is being replace by space online food retail too is feeling the change.

Actual super market is replace by virtual one

Information & pictures about the product is replacing the product itself

Smart phones and laptops replace the counters Already developed markets are adapting to the change

Retail Market Space

https://www.youtube.com/watch?v=7JItU05mjCk


New Zealand Retail Market Space – BNZ Market Review


Offering online shopping for 2 decades, an average spend of $206 per shop, brings in >$4 million a week.

Countdown, Tony Petrie, says by mid-2016 online grocery shopping will have grown to be the equivalent of 5 supermarkets if forecasts are achieved.

Click and collect, which costs $5 more for a customer, is growing at 15 % a year. Receives 20,000 online orders from 80,000 customers weekly. Against a foot count of 2.7 million.

It has self service kiosk at all its outlets.

The plan, according to Petrie, is for Countdown to partner with other businesses like clothing retailer EziBuy to create what amounts to an online shopping mall.

Countdown has launched its IPhone and Android Apps. Countdown’s app has been selected as the top disruptive service for IPhone.

Its FB page has >255k followers with “call to action button” of Start Shopping!


Countdown virtual super market at bus stops

Auckland, Wellington & Christchurch


ENABLERS


BARRIERS


Interactive Home Shopping

As highlighted by Alba et al, countdown gained advantage in IHS by:

Distribution efficiency - Countdown can deliver to 99% of the population

Assortment of complementary merchandise - With its presence in the digital space Countdown can further improve on its assortment

Collection & utilization of customer information - Facebook One card Countdown App Countdown website

Presentation of information through electronic format Over and above its normal electronic medium it has also stepped into the

virtual supermarket world

Unique Merchandise – Using digital space countdown can promote huge number of merchandise.


CONCLUSION & INNOVATIONS

The key to success in retail is to combine both online and offline shops and keep innovating.

Automated Re-orderingCustomized Retailing



Multi-sensory bus stop advertising

McCain Foods

Using GPS

Nestle



Smartphone App

Blippar

Holographic Packaging


Booz Allen&Hamilton Inc. (2001). The e-Marketplace revolution: creating and capturing the value in B2B e-commerce. Retrieved from http

://www.boozallen.com/media/file/e-marketplace_revolution.pdf

Countdown. (n.d.). Retrieved from www.countdown.co.nz

InsideRetail (2015). Online continues growth. Retrieved from https://insideretail.co.nz/2015/02/26/2914/

Lawrence, A. (2013, March 19). Ten innovative ideas from the around the world. Retrieved from https://www.igd.com/Research/Retail/Innovation-digital/17557/Ten-

innovative-ideas-from-the-around-the-world1/

Nielsen (2015, April 29). More than half a global consumers are willing to buy groceries online. Retrieved from http://www.nielsen.com/us/en/press-room/2015/more-

than- half-of-global-consumers-are-willing-to-buy-groceries-online.html

Stock, R. (2015, July 20). Click and collect flourishes at Countdown. Retrieved from https://insideretail.co.nz/2015/07/20/countdowns-online-and-click-and-collect-services/

REFERENCE LIST

http://www.boozallen.com/media/file/e-marketplace_revolution.pdf

http://www.boozallen.com/media/file/e-marketplace_revolution.pdf

http://www.countdown.co.nz/

https://insideretail.co.nz/2015/02/26/2914/

https://insideretail.co.nz/2015/02/26/2914/


REFERENCE LIST

Tesco PLC. (2012). UK’s first interactive virtual grocery store. [Video]. Retrieved from https://www.youtube.com/watch?v=7JItU05mjCk

Weinswig, D. (2015, May 20). Global grocery retailing. New York: The Fung Group. Retrieved from http://www.deborahweinswig.com/wp-

content/uploads/2015/05/FBIC-Featured- Report-on-Global-Grocery-Retailng- May-20.pdf



http://www.deborahweinswig.com/wp-

http://www.deborahweinswig.com/wp-


Thank You

>>apmg 8119: digital enterprise report prepared for: (mariia, dipthi, alexey & shri)...

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