the future of retail
DESCRIPTION
At a VisionID Retail Technology event Damian O Reilly from Dublin Institute of Technology discusses the future of retailTRANSCRIPT
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