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The Impact of The Impact of Technology on the Technology on the Retail EnvironmentRetail Environment

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The Impact of The Impact of Technology on the Technology on the Retail EnvironmentRetail Environment

bringing market driven solutions to companies bringing market driven solutions to companies with significant property portfolioswith significant property portfolios

operational strategists at the cutting edgeoperational strategists at the cutting edge focus on infrastructure integrationfocus on infrastructure integration specialists in retail property and e-commercespecialists in retail property and e-commerce value adding to property portfoliosvalue adding to property portfolios expertise with telco’s and financial institutionsexpertise with telco’s and financial institutions setting performance measurements and setting performance measurements and

benchmarks for CRE and IRE , who are each benchmarks for CRE and IRE , who are each examining new ways of doing business and examining new ways of doing business and setting up more flexible infrastructuressetting up more flexible infrastructures

bringing market driven solutions to companies bringing market driven solutions to companies with significant property portfolioswith significant property portfolios

operational strategists at the cutting edgeoperational strategists at the cutting edge focus on infrastructure integrationfocus on infrastructure integration specialists in retail property and e-commercespecialists in retail property and e-commerce value adding to property portfoliosvalue adding to property portfolios expertise with telco’s and financial institutionsexpertise with telco’s and financial institutions setting performance measurements and setting performance measurements and

benchmarks for CRE and IRE , who are each benchmarks for CRE and IRE , who are each examining new ways of doing business and examining new ways of doing business and setting up more flexible infrastructuressetting up more flexible infrastructures

OutlineOutlineOutlineOutline

The Retail environmentThe Retail environment

US and Australian experienceUS and Australian experience

Impact of technology and the Retail quandImpact of technology and the Retail quandaaryry

Convergence implicationsConvergence implications

Business models - from Place to SpaceBusiness models - from Place to Space

Impact on property and business managementImpact on property and business management

The Retail environmentThe Retail environment

US and Australian experienceUS and Australian experience

Impact of technology and the Retail quandImpact of technology and the Retail quandaaryry

Convergence implicationsConvergence implications

Business models - from Place to SpaceBusiness models - from Place to Space

Impact on property and business managementImpact on property and business management

What’s happening now in AustraliaWhat’s happening now in AustraliaWhat’s happening now in AustraliaWhat’s happening now in Australia

Retailing accounts for > 30% of Aust. economy($120b)Retailing accounts for > 30% of Aust. economy($120b) 50% of Aust. families own computers and half on net50% of Aust. families own computers and half on net Australians 5th largest internet users in worldAustralians 5th largest internet users in world 3.5 m. users; predicted to double by 20023.5 m. users; predicted to double by 2002 Internet generated revenue $2.1b to grow to $16b by Internet generated revenue $2.1b to grow to $16b by

20022002 63% of internet users are>30 year old bracket63% of internet users are>30 year old bracket US market growing at an annualised rate of 190%; US market growing at an annualised rate of 190%;

Australian market 18 months behindAustralian market 18 months behind Recent ACRS report showed:Recent ACRS report showed:

42.5% of retailers have an e-commerce strategy, with a 42.5% of retailers have an e-commerce strategy, with a focus on information and brand building;focus on information and brand building;

specialty retailers’ internet sales to increase from 15.8% this specialty retailers’ internet sales to increase from 15.8% this year to 61.9% in 2002year to 61.9% in 2002

Retailing accounts for > 30% of Aust. economy($120b)Retailing accounts for > 30% of Aust. economy($120b) 50% of Aust. families own computers and half on net50% of Aust. families own computers and half on net Australians 5th largest internet users in worldAustralians 5th largest internet users in world 3.5 m. users; predicted to double by 20023.5 m. users; predicted to double by 2002 Internet generated revenue $2.1b to grow to $16b by Internet generated revenue $2.1b to grow to $16b by

20022002 63% of internet users are>30 year old bracket63% of internet users are>30 year old bracket US market growing at an annualised rate of 190%; US market growing at an annualised rate of 190%;

Australian market 18 months behindAustralian market 18 months behind Recent ACRS report showed:Recent ACRS report showed:

42.5% of retailers have an e-commerce strategy, with a 42.5% of retailers have an e-commerce strategy, with a focus on information and brand building;focus on information and brand building;

specialty retailers’ internet sales to increase from 15.8% this specialty retailers’ internet sales to increase from 15.8% this year to 61.9% in 2002year to 61.9% in 2002

Why the Net? ... InformationWhy the Net? ... Information

Historic trade-off Catalogues

REACH(Customers contacted)

RICHNESS(amt. of info,degree of interaction)

INTERNET(rich info at zero management cost)

LO

HI

HI

The retail quandThe retail quandaaryryThe retail quandThe retail quandaaryry how to open new distribution channels without losing old how to open new distribution channels without losing old

ones (replacing bricks and mortar with digital assets)ones (replacing bricks and mortar with digital assets)

direct to consumers via web, or protect traditional channelsdirect to consumers via web, or protect traditional channels the new consumer mantra - my time, my placethe new consumer mantra - my time, my place successfully tying together digital and physical commerce is successfully tying together digital and physical commerce is

not easily replicable by online firmsnot easily replicable by online firms managing the supply chain to meet increased demandmanaging the supply chain to meet increased demand the delivery chain that runs forwards towards customers has the delivery chain that runs forwards towards customers has

hardly changed at all in the past 100 years …until nowhardly changed at all in the past 100 years …until now inadequacy of online ordering unless linked with real world inadequacy of online ordering unless linked with real world

fulfilmentfulfilment

how to open new distribution channels without losing old how to open new distribution channels without losing old ones (replacing bricks and mortar with digital assets)ones (replacing bricks and mortar with digital assets)

direct to consumers via web, or protect traditional channelsdirect to consumers via web, or protect traditional channels the new consumer mantra - my time, my placethe new consumer mantra - my time, my place successfully tying together digital and physical commerce is successfully tying together digital and physical commerce is

not easily replicable by online firmsnot easily replicable by online firms managing the supply chain to meet increased demandmanaging the supply chain to meet increased demand the delivery chain that runs forwards towards customers has the delivery chain that runs forwards towards customers has

hardly changed at all in the past 100 years …until nowhardly changed at all in the past 100 years …until now inadequacy of online ordering unless linked with real world inadequacy of online ordering unless linked with real world

fulfilmentfulfilment

Impact of technology - US trendsImpact of technology - US trendsImpact of technology - US trendsImpact of technology - US trends Online US chains (Wal-mart, GAP, Nordstrom) are Online US chains (Wal-mart, GAP, Nordstrom) are

considering a multi-channel approach that includes considering a multi-channel approach that includes aggressive global expansion policies including major on-aggressive global expansion policies including major on-line strategiesline strategies

stores are creating effective feedback loops:stores are creating effective feedback loops: store - website - catalogue - storestore - website - catalogue - store

physical retailers are setting up effective feedback loops physical retailers are setting up effective feedback loops between stores and websitesbetween stores and websites

bricks and mortar sites become the best advertisements bricks and mortar sites become the best advertisements that online brands can buythat online brands can buy

big box retailers on the movebig box retailers on the move:: Kmart with YahooKmart with Yahoo Wal-Mart with AOLWal-Mart with AOL Microsoft and Best BuyMicrosoft and Best Buy

Online US chains (Wal-mart, GAP, Nordstrom) are Online US chains (Wal-mart, GAP, Nordstrom) are considering a multi-channel approach that includes considering a multi-channel approach that includes aggressive global expansion policies including major on-aggressive global expansion policies including major on-line strategiesline strategies

stores are creating effective feedback loops:stores are creating effective feedback loops: store - website - catalogue - storestore - website - catalogue - store

physical retailers are setting up effective feedback loops physical retailers are setting up effective feedback loops between stores and websitesbetween stores and websites

bricks and mortar sites become the best advertisements bricks and mortar sites become the best advertisements that online brands can buythat online brands can buy

big box retailers on the movebig box retailers on the move:: Kmart with YahooKmart with Yahoo Wal-Mart with AOLWal-Mart with AOL Microsoft and Best BuyMicrosoft and Best Buy

From Market Place to From Market Place to Market SpaceMarket Space

From Market Place to From Market Place to Market SpaceMarket Space

value creation has moved from Place to Spacevalue creation has moved from Place to Space currently, retail chains have value creation distributed through both Place and Space:currently, retail chains have value creation distributed through both Place and Space:

Place (mfg, packaging, distn, mktg)Place (mfg, packaging, distn, mktg) Space (e-payment, EDI from mfrs, info on purchasing patterns)Space (e-payment, EDI from mfrs, info on purchasing patterns)

value creation has moved from Place to Spacevalue creation has moved from Place to Space currently, retail chains have value creation distributed through both Place and Space:currently, retail chains have value creation distributed through both Place and Space:

Place (mfg, packaging, distn, mktg)Place (mfg, packaging, distn, mktg) Space (e-payment, EDI from mfrs, info on purchasing patterns)Space (e-payment, EDI from mfrs, info on purchasing patterns)

manufacturer wholesaler retailer consumer

Impact on PropertyImpact on Property Impact on PropertyImpact on Property

substantial changes are taking place - most visible in substantial changes are taking place - most visible in finance and services - up to 50% space under stress - finance and services - up to 50% space under stress - which will progressively alter the ‘face of offer’ of shopping which will progressively alter the ‘face of offer’ of shopping centres as consumerscentres as consumers become ‘connected consumers’become ‘connected consumers’

harness change by business mix planning, taking care not harness change by business mix planning, taking care not to take a historical ‘set’ on shopping centre design and mixto take a historical ‘set’ on shopping centre design and mix formulate strategies to mirror centre management formulate strategies to mirror centre management

approach to manage the new economyapproach to manage the new economy policies to encourage non-commodity lifestyle retailers:policies to encourage non-commodity lifestyle retailers:

Borders coffee/bookshopBorders coffee/bookshop BMW café - SouthbankBMW café - Southbank

substantial changes are taking place - most visible in substantial changes are taking place - most visible in finance and services - up to 50% space under stress - finance and services - up to 50% space under stress - which will progressively alter the ‘face of offer’ of shopping which will progressively alter the ‘face of offer’ of shopping centres as consumerscentres as consumers become ‘connected consumers’become ‘connected consumers’

harness change by business mix planning, taking care not harness change by business mix planning, taking care not to take a historical ‘set’ on shopping centre design and mixto take a historical ‘set’ on shopping centre design and mix formulate strategies to mirror centre management formulate strategies to mirror centre management

approach to manage the new economyapproach to manage the new economy policies to encourage non-commodity lifestyle retailers:policies to encourage non-commodity lifestyle retailers:

Borders coffee/bookshopBorders coffee/bookshop BMW café - SouthbankBMW café - Southbank

Impact on managementImpact on managementImpact on managementImpact on management creating an e-commerce business culture creating an e-commerce business culture ensuring staff own the projectensuring staff own the project treating the website as a separate businesstreating the website as a separate business reduction of inventory costsreduction of inventory costs ensuring efficient physical distributionensuring efficient physical distribution database management, application of direct marketing database management, application of direct marketing

skills to capture knowledgeskills to capture knowledge simple, reliable technologysimple, reliable technology branding to achieve consumer qualitybranding to achieve consumer quality no duplication of high labour costs or physical facilitiesno duplication of high labour costs or physical facilities commitment to e-commerce by all stakeholders - commitment to e-commerce by all stakeholders -

suppliers, manufacturers and retailerssuppliers, manufacturers and retailers

creating an e-commerce business culture creating an e-commerce business culture ensuring staff own the projectensuring staff own the project treating the website as a separate businesstreating the website as a separate business reduction of inventory costsreduction of inventory costs ensuring efficient physical distributionensuring efficient physical distribution database management, application of direct marketing database management, application of direct marketing

skills to capture knowledgeskills to capture knowledge simple, reliable technologysimple, reliable technology branding to achieve consumer qualitybranding to achieve consumer quality no duplication of high labour costs or physical facilitiesno duplication of high labour costs or physical facilities commitment to e-commerce by all stakeholders - commitment to e-commerce by all stakeholders -

suppliers, manufacturers and retailerssuppliers, manufacturers and retailers

Clicks and Bricks Pty LtdClicks and Bricks Pty Ltd-advisors to CRE and IRE managers-advisors to CRE and IRE managersClicks and Bricks Pty LtdClicks and Bricks Pty Ltd-advisors to CRE and IRE managers-advisors to CRE and IRE managers

tailored property and technology solutions for tailored property and technology solutions for CRE and IRE managersCRE and IRE managers

property infrastructure planning (CIR) and property infrastructure planning (CIR) and associated systems integrationassociated systems integration

development of on-line/offline business development of on-line/offline business strategies, with a focus on retail propertystrategies, with a focus on retail property

venture creation within new economyventure creation within new economy

business developmentbusiness development

tailored property and technology solutions for tailored property and technology solutions for CRE and IRE managersCRE and IRE managers

property infrastructure planning (CIR) and property infrastructure planning (CIR) and associated systems integrationassociated systems integration

development of on-line/offline business development of on-line/offline business strategies, with a focus on retail propertystrategies, with a focus on retail property

venture creation within new economyventure creation within new economy

business developmentbusiness development

PropertyPropertyTechnologyTechnologye-Businesse-Business

operational strategiesoperational strategies

PropertyPropertyTechnologyTechnologye-Businesse-Business

operational strategiesoperational strategies

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