TEO RAW KI

The End Of Retail As We Know It?

The Future is Not What it Used to be

• Consumer confidence is weak

• High oil prices

• Eurozone not out of crisis

• U.S.A. has $16.7 trillion debt

• China’s growth is slowing

Global recession may last another 5 years!

Recent Retail Trends

ASDA have 5,000 collection points in UK

ASDA new Drive Thru in York

But what will happen to our Local Stores?

Indicators of Retail Health

• Demand– Depressed; loss of confidence and lack of credit

facilities have weakened demand

• Margin– Discounts/Promotions having significant affect on

margins

• Costs– Have been increasing: insurance; fuel; rates

Source: IBM – Institute for business analysis

Polarisation of the Consumer market

“Pretty good isn’t good enough anymore”

The Future - Retail Analytics

Era of Big Data and The Science of Retail

• Walmart has more than 1 million customer transactions every hour, in databases estimated to contain more than 2.5 petabytes

• Walmart creates more data per hour than research surveys have ever delivered

• Data storage capacity is doubling every year and there is no constraint on the amount of information to analyse

Online & Offline Analytics….

Omni-Channel Retailing

• The quest for the Holy Grail…..

We exist in a multi-screen world

Virtual Shopping Wall on side of Truck

Augmented Reality

Commerce and Facebook-Assisted Commerce

Selling ON Facebook

Selling WITH Facebook

Disney built in movie-ticket sales into their Facebook page

Counters built into each hanger, which are networked, update in real time to reflect the input of C&A's Facebookfans voting with their FB virtual thumbs on photos of each clothing item.

C&A (Brazil)calls the system "Fashion Like."

August 2013 -Twitter appoints Nathan Hubbard (ex-CEO Ticketmaster) as Head of Commerce

Electric Ireland setting up a “Tweet Café” at Dublin Web Summit

Commerce

Mercedes sells 666 cars in 8 hours with 3 point “Twitter-Commerce” PlanMercedes made 4% of its annual sales for SMART cars in 8 hours

Social Commerce Model

• Create a special limited edition – a Twitter exclusive.

• Theme and schedule the special edition around a popular calendar event (e.g. Chinese New Year)

• Don’t ask for full payment, just a deposit (e.g. 1.5%) – “de-risked” the purchase

mCommerce

mCommerce is NOT mobile eCommerce

3 Main Approaches to mCommerce

• Shopping Apps – giving customer a better shopping experience– Location based services– QR Scanners– Shopping lists– Price comparison– Social shopping

• Retailer branded apps – driving loyalty with customers– Transactions possible; but on watered-down version of website– In-store apps to track behaviour; increase conversions with in-store

deals

• Traditional eCommerce mobile apps – retailer online offering ported to mobile– Few retailers provide good user experience comparable to eCommerce

Digital Couponing

TEO RAW KI?

Winning Retailers will embrace technology and engage with shoppers in an omni-channel

world & through multiple devices

Retailers ask “How can we sell more?”

Instead they should ask:

“How can we get shoppers to spend more?”

Make the Shopper HAPPY

1. Give shoppers the products they WANT

2. Support shoppers in-store and at the shelf

3. Make the shoppers’ trip as quick as possible

dboreilly@dit.ie