retail industry mega trends 2018 risks and opportunities retail cash... · 2018-05-10 · retail...

Retail industry

mega trends 2018risks and opportunities

Retail Cash management Conference

8 May 2018

Adela Ciucioi, Partner KPMG Romania

© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International.

KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does

KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

2Retail Trends 2018 | 2© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International.

KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG

International have any such authority to obligate or bind any member firm. All rights reserved.

Retail Trends 2018 |

Contents

1. Retail mega trends

2. Addressing typical risks in the Cash Management process

3. New opportunities

Appendix 1- KPMG data driven propositionAppendix 2- PSD II








Contents

1. Retail mega trends








Top five retail trends for 2018

Ongoing

competition

between

hemispheres

Artificial

intelligence

will gain

more clout

The

conscious

customer New customer

expectations

1 The customer

experience is

more important

than ever 23

45




E

The most disruptive consumer trends

32Globa l

Accounts

11%Of KPMG

Rev enue

$3bnFY17

Revenue

Dec lining

consumer

loya lty to

bra nds

Inc reas ing

preferenc e to

shop and buy

online

Inc reas ing

expec ta tion

for im m ediate personalization environm ental

s erv ice consc iousness

Inc reas ing

dem and for

Increas ing

soc ial and

38% 33% 30% 29% 27%

Source: 2017 KPMG Top of Mind Survey

© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International . KPMG International provides no client services. N omember firmhas any authority to oblig ateor bindKPM G International or anyother member firmvis-à-vis third parties, nor does KPM G International have any such authority to obligate or bind any member firm. All rights reserved




6Retail Trends 2018 |

Retail in Romania

(

2005

2001

1996

2005

2001

2005

2011

1995

2003

2011

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2014a 2015a 2016a 2017a 2018f 2019f 2020f 2021f 2022f

Romania- GDP/capita& retail sales growth trend

GDP/ capita retail sales

0% 2% 4% 6%

1

2

4%

5.6%

on line as % of retail spending

Source: Economist Intelligence Unit





Retail in Romania

Technology

Consumer

trends

Process

improvement Faster process

Cost reduction

Enhanced data

accuracy

New business

New way of doing business








Contents

2. Addressing typical risks in the Cash Management process








2. Addressing risks in the Cash management process

10.00

Data accuracy/ risk

of fraud

• Automated data transfer/ system integration (e.g.: sales posting, payment processing)

• Segregation of duties

• User access management

• Revenue recognition

• Returns/ sales cancelation

• Transfer of risks& rewards

• Loyalty schemes

• Managing cash collections

Optimal cash flow

• Inventories management (NB: system integration, data analytics)

• Supply management

• Logistics management( eg: Centralized platforms, store proximity supply network)

• Financing activities

• Budgeting process








Contents

3. New opportunities





3. New opportunitiesRPA&

machine learning

D&A

Digital labels

Chat bots

AR/VR

3D printing

Block chain

PSD II

New regulations

Data Driven Culture

Trusted Analytics

Architecture & Technology

Customer Journey

Digital Supply Chain

GBS &

Back-office Optimization

Innovation Ecosystem

Organization & Governance

SUPPLY SIDE

Appendix 1 KPMG 7 strategic pillars of a data driven organization with use cases

KPMG Data-driven propositions

Demand Planning

Dynamic Pricing&

Cross-selling

Customer Loyalty,

Growth & Retention

Churn Reduction

Customer

Feedback

Virtual Assistants

DEMAND SIDECustomer

Experience

Customer

Segmentation

Site Selection

Sales Performance

Improvement

Supply Chain

Optimization

Fraud, Waste &

Abuse Analytics

Document

Scanning & Handling

Robotic Process

Automation

Scheduling

Optimization

Call Center

Optimization

Tax Intelligence

Solutions

ERP Analytics

Contract Analytics

HR Turnover &

WorkforceAnalytics

Master Data

Management

Cyber Security

Strategic

Transformation

Cloud Services

Data Lake

Big Data &

Advanced Analytics

Startup Challenge

Omni-channel

targeting

Complexity

Management

Network

Optimization

Integrated

Business Planning

Working Capital

Analytics




13Retail Trends 2018 | 13Retail Trends 2018 |© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International.



PSD2 - What and When?• The PSD2 should have been applied starting January 2018 and has

the potential to bring forth a revolution in banking.

• The PSD2 will allow third parties to access customer’s transaction

data in the databases of banks, following an instruction from the

customer.

• The Third parties could be payments services providers, technology

companies, social networks, and RETAILERS.

• A retailer who sees the opportunity has the chance to be a real

GAMECHANGER.

Appendix 2







PSD2 – What?Retailers may be able to provide 2 types of new services:

• Account Information Services Provider – AISP.

• As an AISP, a retailer could provide customers with an app which

presents accessible and user-friendly analysis of their financial

data by providing consolidated information on one or more

payment accounts held by the clients with banks.

• Payments Initiation Services Provider – PISP.

• As a PISP, a retailer could provide customers with an app which

allows them to initiate payments from their bank accounts

without having to use their credit card

Appendix 2







PSD2-The Opportunity

Reduce costs paid to payments services providers

Have direct access to valuable data on customer transactions

Added value to clients-online payments made easier; less “clicks” to pay

POTENTIAL TO INCREASE ONLINE SALES

Appendix 2

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or

entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as

of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate

professional advice after a thorough examination of the particular situation.

kpmg.com/socialmedia

© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent

firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to

obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such

authority to obligate or bind any member firm. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International. CREATE: CRT077664H.

Adela Ciucioi

Partner, Audit and Assurance

Retail LOB

retail industry mega trends 2018 risks and opportunities retail cash... · 2018-05-10 · retail...

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