DIGITAL TRANSFORMATION

Transcription

1 DIGITAL TRANSFORMATION VIA VAREJO Oct 2018

2 FLAVIO DIAS VIA VAREJO IN A NUTSHELL More than employees More than employees More than 60 MM customers Brazil s largest logistic network: 26 distribution center / 1 deliver per second Casas Bahia and Pontofrio - top of mind brands 988 physical stores, integrated into apps and online channels. Click and collect service in 100% stores, and in post office and gas station Almost sellers in our marketplace employees in our physical stores offer 2 million third-part inventory itens. Payment and credit solutions

3 COSTS TO SERVE REDUCTION + BENEFITS FOR THE CUSTOMER VIA VAREJO DIGITAL TRANSFORMATION OPTIMIZATION OF MARKETING OPERATION NEW TECHNOLOGIES IMPROVING CUSTOMER EXPERIENCE NEW VIA VAREJO JOURNEY

4 COST OF SERVE REDUCTION CLICK&COLLECT IN 100% STORES FREIGHT COST (BASE 100) x TIME (DAYS) 62% OF WEBSITE INVENTORY DELIVERY IS MIGRATED FOR STORE INVENTORY WITH REDUCED COST IN A PERIOD OF 2 TO 7 DAYS B2C LAST MILE CLICK&COLLECT WEBSITE INVENTORY CLICK&COLLECT STORE INVENTORY AVERAGE TIME 5,6 days 48h a 72h <24h FREIGHT COST FOR CLIENT PAID FREE FREE

5 COST OF SERVE REDUCTION CLICK&COLLECT IN 100% STORES MULTICHANNEL INITIATIVES EVOLUTION OF INDICATORS CLICK&COLLECT Share of order value (average 2017) 10% INVENTORY STORE TAKE UP RATE (ITENS) + 396,5% 60% INVENTORY STORE TAKE UP RATE STORE INVENTORY 30,7% 60% 1Q17 12,2% 2Q17 19,1% 3Q17 26,1% 4Q17 27% 1Q18 23,6% 2Q18 30,7%

6 COST OF SERVE REDUCTION active pick up points CORREIOS BIG RETAILERS LOCKERS IPIRANGA GAS STATIONS

7 HEAT MAP: DEMAND X FOOTPRINT COST OF SERVE REDUCTION HUB STORES HUBS STORES: 220 OPPORTUNITY 70 STORES IN 2018

8 OPTIMIZING MARKETING OPERATION VIA ÚNICA ( SINGLE PATH ) - FOUNDATION INTERNAL DATA EXTERNAL DATA INTEGRATION DEMOGRAPHY PRODUCTS STORES WEB MOBILE INDIVIDUALIZED CAMPAIGNS AND REAL-TIME ANALYTICS PROCUREMENT SERVICES BANK + + SOCIAL NETWORKS INTEGRATION MAXIMIZATION CREDIT EVENTS CAMPAIGNS PERSON 1 PERSON 2 PERSON 3 PERSON 4

9 ANALYTICS BRINGING THE BEST OFFER 55+ MILLIONS OF BEHAVIORS ANALYZED 400+ MILLIONS TRANSACTIONS ANALYZED BLENDER OPTION 1 PLANK OPTION 2 DRYER OPTION 3

10 INCREASED SALES FLAVIO DIAS OPTIMIZING MARKETING OPERATION VIA ÚNICA ( SINGLE PATH ) - OPTIMIZATION INTERNAL DATA KNOWLEDGE INTEREST CONSIDERATION INVESTMENTS IN MEDIA CALIBRATION OF MEDIA INVESTMENTS ALLOCATION OF CURRENT BUDGET ALLOCATION OF FUTURE BUDGET EVALUATION PURCHASE PAYMENT LEADING TO TV RADIO SOCIAL MEDIA SEARCH CRM INCREASED CONVERTION

11 ANALYTICS OPTIMIZING INVESTMENTS IN MEDIA 450+ MODEL VARIABLES BRANDS REGION CATEGORIES 2,2% Journal Radio Search Branding 0,1% 2,4% Google Trends Casas Bahia Google Trends Concorrentes TV Marketing 10% -11% 3,8% 10,4% Buyers Direct Traffic 10,8% 2,5% Search Non Branding Google Shopping 71,7% 7,9% 27% Positive Relation 0,5% Sales Online BASE 47,6% Negative Relation

12 NEW TECHNOLOGIES IMPROVING SHOPPING EXPERIENCE WATSON USE EXTENSION VIA APP: ARTIFICIAL INTELLIGENCE AUGMENTED REALITY VIRTUAL REALITY

13 NEW TECHNOLOGIES ARTIFICIAL INTELLIGENCE USE OF COGNITIVE COMPUTING (AI) TO IMPROVE CUSTOMERS PURCHASING EXPERIENCE PRODUCT RECOMMENDATION BASED ON CUSTOMER S NEED FACILITY TO ACQUIRE PRODUCTS (SALES OF SERVICES AND COMLEMENTARY ITEMS) - PAYMENT AFTER SALES (LOCALIZATION, EXCHANGE AND CANCELLATION) MORE EFFICIENCY AND ASSERTIVINESS IN INTERNAL KEY PROCESSES

14 WATSON PONTOFRIO FLAVIO DIAS

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16 NEW TECHNOLOGIES ARTIFICIAL INTELLIGENCE USE OF ARTIFICIAL INTELLIGENCE INTERACTING WITH SALES FORCE

17 NEW TECHNOLOGIES ARTIFICIAL INTELLIGENCE: EVVA FLAVIO DIAS

18 FLAVIO DIAS NEW TECHNOLOGIES ARTIFICIAL INTELLIGENCE: EVVA

19 -3,9% -4,8% Average Productivity of Salesperson (Sale R$ thousand / seller,% growth) +10,2% +14,1% -7,8% -9,0% -0,3% -5,6% +19,7 p.p -5,0% -5,0% +1,1% +7,8% +19,7 p.p. productivity growth difference comparing engaged with nonengaged Engaged (Test) Non-engaged (control) Via Varejo average May June July August Growth vs 2017

20 NEW TECHNOLOGIES AUGMENTED REALITY FLAVIO DIAS

21 NEW TECHNOLOGIES AUGMENTED REALITY 1 CUSTOMERS ENTERS THE STORE AND CHOOSES THE PRODUCTS 2 SALESPERSON HELPS THE CUSTOMER INSTALL AUGMENTED REALITY APP USING THE FREE WI-FI NETWORK AT THE STORE

22 NEW TECHNOLOGIES AUGMENTED REALITY 3 SALESPERSON ASSIST THE CUSTOMER TO PRE-SELECT THEIR FAVORITE ITEMS IN THE APP

23 NEW TECHNOLOGIES AUGMENTED REALITY 4 CUSTOMER REACHES HOME AND PLACES THE MAGAZINE IN THE DESIRED SPOT

24 0,76m FLAVIO DIAS NEW TECHNOLOGIES AUGMENTED REALITY 1,76m 5 CUSTOMER SEES THE PRODUCT IN 3D IN THE DESIRED ENVIROMENT AND CAN CHOOSE FROM DIFFERENT FINISHING AND SIZES, BUY THE FURNITURE ONLINE AND RECEIVE IT AT HOME COMPRAR

25 NEW TECHNOLOGIES VIRTUAL REALITY FOLLOWING THE TREND OF HAVING LESS ROOM FOR SHOWCASE, TECHNOLOGY OF VIRTUAL REALITY PROVIDES AN INTERACTIVE CONTACT BETWEEN CUSTOMER AND PRODUCTS

26 LAB DIGITAL STORE RESULTS EVALUATION BASED ON CLIENTS

27 DIGITAL STORE PONTOFRIO FLAVIO DIAS

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29 FLAVIO DIAS WHAT WE WANT TO BE?

30 STRATEGIC VISION 2020 AFTER SALES LOGISTICS SOLUTIONS MARKETING 4 VALUE STREAMS OMNICHANNEL RETAIL MARKET PLACE PEOPLE WHO WANT TO BUY THE MAIN WAY TO PURCHASE AND SELL IN THE COUNTRY WHAT CUSTOMERS WANT, LIKE AND NEED COMPANIES WHO WANT TO SELL SELLERS RETAIL SERVICE RETAIL FINTECH PAYMENT SOLUTIONS CREDIT

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32 THANKS! FLAVIO DIAS