IRF 2017
Future of RetailAbheek Singhi
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Second half of chessboard - 9,223,372,036,854,775,808
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New technologies emerging faster than ever
Big data and analytics Cloud computing Robotic process automation
Ubiquitous connectivity & IoT
Cognitive computing Virtualization
AR/VR
Develop deeper insight
into customer behavior,
preferences and
pathways
Drones
Smart devices
Manage huge data
volume in open systems
and provide services on
demand
Replace humans where
work
processes are
entirely rule-based
Aerial photography and
video, unmanned cargo
system, security,
inspections
Intelligent, predictive
virtual assistance—from
interaction analysis to
location-based offerings
Free services from reliance on specific
soft-/hardware and ensure flexibility, adaptability and
robustness
Create an ongoing
relationship—from on
the spot service
provision to remote
monitoring
High performance devices
allow eco-system
development with apps
and cloud services
Get the info you need,
when you need it—from
manuals to service alerts
Ubiquitous connectivity and IoT
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Indian consumer: A snapshotHeena, 28 years old, Mumbai
Technology professional
Apparel buyer
Customer Journey: Dress and bag purchase
See Select Search Socialize Shop Study Save Sell
Social
media
Shopping
website
Instant
messaging
Shopping
website
"I saw a celebrity wearing
a new dress during movie
promotions. I loved it but
it would have been very
expensive."
"I searched for the
same dress on Google
and found something
similar on Myntra for a
fraction of the cost"
"I sent the link of the
dress to my friend to
ask for her thoughts.
She also liked it a lot."
"I bought the dress
from Myntra.com the
next day and ordered
it via cash on delivery"
"The next day I was scrolling through my
news feed and I got a suggestion for a
handbag which matched my dress"
Social
media
Shopping
website
"The ad redirected me to Amazon
where the handbag was available
on 30% discount"
Mobile
wallet
"I was about to pay by COD but
realized that I had money in my
PayTM wallet because my friend
has transferred them to me. I
used that to make the payment"
200+ mins a day on
her smartphone
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DISCOVERY
Next generation data use providing a truly personalised consumer journey
10:00Landing page
Real-time promotions
10:05Taobaoheading
Always discovering new brands through personalized
content 11:00Ask
everyone
Capturing data across social media
chats
11:30Chatting
with merchants
12:00Starring items
16:00Fan party
Personalised entertainment &
product placement
BUY
18:00Live streaming
'Buy from anywhere'
19:00Seamless checkout
20:00Further
discovery
Seamless 'discovery to payment to
further discovery'
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3
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The Past Today The FutureSell what you create Create what can be sold in store Create what people want
Source: BCG
Product
Consumer Store
Store
Product Consumer
Consumer
Relationship
Product Experience
Store of the future will have consumer in the center
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Learning from the east
$750bn
$400bn
$160bn
Note: Internet penetration = the number of internet users divided by the population. An internet user is someone at least two years of age who has been online in the past 30 days. Jan 2017 exchange rates used of US$1=€0.95; US$1=¥6.93Source: Economist Intelligence Unit, Internet World Stats, International Telecomunication Union, World Bank, Euromotior, BCG analysis
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Something is changing
… go online with a specific item in
mind
… is focused around fast, smooth
& easy transactions, with minimum
friction and one-click orders
… optimise personalisation &
engagement
The WEST: a more
efficient way to shop
The EAST: a richer
alternative to shopping
… go online to see what's new or what's
trending, sometimes many times a day
… is focused around highly personalised
exploration & discovery experience,
keeping consumers browsing for longer
… optimise search & payment
efficiency
Players
Consumers
The journey
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Market traits are reflected in giant's business models
Consumers use it because they
know what they want:
• Near 'unlimited' inventory
• Excellent search engine
• Low prices
• User reviews/recommendations
• Rapid delivery
Consumers use it to be entertained
and explore new things:
• Connected buyers & sellers
• Brands create individual online experiences
– Games, celebrity events etc.
• Integrated with social media, entertainment sites, news portals
Quintessential online retailer The interactive, virtual mall
10
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