FutureofRetailMITCTL“FutureofRetail”Roundtable– insightssummary14and15November,2018

FutureofRetailInsightthemes:

§ Retailoperations.............................3§ Diversificationandcompetition......4§ Dynamicconsumerbehaviors.........5§ Deliverystrategies...........................6§ Digitaltransformation.....................7§ Omnichannel...................................8

Advanceroundtablesummary.completereporttofollow.

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RetailoperationsandsupplychainsSalesareincreasingandonlineisthriving!

Valuetheexperience

Retailersmustcreateanemotionalconnectionandattractclientstomultiplechannels.

Purchasingpreferencesandtechnologicalusage

Technology,AIandbigdatamighthelpanalyzedatatobuildtailoredroute-to-marketstrategies.

Convenienceisaneed

Closelocation,ready-to-eatproductsandscheduleddeliveriesarecompetitiveadvantages.

Healthconsumption,transparencyandsustainability

Curationisevolvingasastrategy.Itmayalsobuildbrandawareness.

Qualityproductsanddelivery

Storeswithnoinventory(show-rooms)provideauniqueshoppingexperienceandhomedelivery.

Offerservicesintheretailstores Bringretailersto

officesWhatifthestoreshadserviceslikechildcareornutritionists?

Whatifpeoplecouldgettheirgroceriesattheirworkplace?

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Diversificationandcompetition

Whoarethecustomers?Whatwilltheirpreferencesbe?

Keydriverstocompete:managedifferentiation;getatailoreddiversificationofproducts/servicesandcollaboratewithdiverseSCstakeholders.

Innovativestoresturnconsumersintoactiveplayersinthestores.

Customizationhelptoshortentheproductlifecycle andisawaytocompetewithmarketplaces.

ReverseshouldbeconsideredintheSCplanning.

Differentiationcomesfromconvenience,price,shoppingexperienceandcustomizedassortment.

Themarketplaceexperienceaffectshowthecustomerlooksatthebrandà Thisrelatestohowmuchan individualinvests/spends.

Retailersshouldoffersolutionsinsteadof

products!

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CouplingdynamicconsumerbehaviorswithevolvingretailSCs

Whatarethemainfactors thatdriveconsumerpreferencesandthedynamicretaillandscape?

Traditionalgeographicapproachdoesnotconsiderproduct andconsumerprofilefeatures.

Havingdatafromtheirpatronage,retailerswillunderstand howtheyspendtheirmoney,where,howandwhy.

Retailershavetoserveconsumersusingflexible,forward-looking,effectiveSCstrategies.

Shapethefuturedeliveryservicesusingomnichannel,evolvingmulti-tieredurbanlogisticsandurbanairmobility.

Newbusinessofferacustomizedassortment,value-addedservicesandaremorecustomer-centric.

Retailershavetoconnectconsumerstoproducts/servicesviapricing,promotionsandlocations.

Thenextstepishowtousethedata!

DevelopsmartorderfulfillmentandretailoperationsacrosstheSCtailoredbyconsumerprofile.

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TransportationanddeliverystrategiesOptimizationofcurrentandfuturetransportationstrategiesinretailSC.

Challengesinthetransportationanddeliverystrategiesforcompanies

Companies do not collaborate over the last mile because it depends on sharing their consumer's personal information.It is possible to monetize the process by collecting and sharing dataà Choose the right partner instead of competing.

Economies of scale

Commercialdensity

Long-haul

Cost-to-serve

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DigitaltransformationandcollaborationHowtointegratethevaluechainEndtoEnd.

Agilewaysofworking

Datamonetization

Technology

Partnershipsintheecosystem

Digitizingoperations

Capabilitiesandtalent

MainchallengesfordigitaltransformationinretailSCs?

Data+CustomersandRelationshipsareusedtoleveragecustomersandsuppliers.

Data have become retail industry's ultimate goal;therefore, coupling internal and external talentswill lead the next stage for transformation.

Itisnotabouthavingacheapsolutionorusingtechnology.Itisaboutchangingtheorganization.

DigitalTransformationisattackingyoursupplychainwhateveryouarereadyornot.

NextstepinDigitalTransformation:Challengecollaborationthroughvaluesharingandtrust!

HowtoBalance?

Data-drivenInformation

Humanprocess/factors

Monitorperformanceandgivefeedback

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E-commerceandomnichannel strategiesHowtouseassetsmoreefficiently.

Homedelivery Pickupatthestore Lockers Pickuppoint

MobileCommerce

Buyfromanywhere

Pickupfromanywhere

Connectconsumerpreferenceswiththelogisticsstrategy!

Wheretopreparetheorders?

Profitability

Returnsmanagement

DistributionchannelsFromwheretodeliver

Inventoryvisibility

Distributionchannelsretailersare offering/planningtooffertotheonlinecustomers

Mainchallenges

FutureofRetailThankyouforyourparticipationandcontributiontotheconversation