ELISEO BELMONTE. Accenture / Managing Director. The Future of Retail

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1 ELISEO BELMONTE Accenture / Managing Director The Future of Retail

2 Retail is facing its largest transformation wave since 1970 From Processes 80s Content Procurement Slide Option 1 Finance To Data 90s Supply chain network 00s Category management Assortment Pricing Promotion Loyalty

3 From Market share to Wallet share HISTORIC PARADIGM Optimise commercial assets NEW PARADIGM Maximise wallet share NEW KEY CAPABILITIES 1 HOW? Concept 2 WHAT? Offer 4 Channel Phone SMS Mail Social Web Stores 1 2 MOMENTS OF TRUTH Needs Choice Purchase Purchase cycle Weekly Cycle YearlyCycle Life Cycle Payment Usage After sales Brand strategy From Products to Solutions 3 WHO? Traffic & Clients 3 Categories & Needs Food Catering Baza Digital Apparel Service Enterta Channels/ concept engine

4 Top 5 Trends

5 The Future of Retail 1 Fewer, but more impactful, stores The Amazon effect and we expect it to continue for the foreseeable future. The rise of alternative bricks and mortar channels: think fast fashion in the US (likes of H&M, Forever 21 and Zara) or discount grocery in the UK. The stores that remain will be more digitally-led. For specialists, physical locations will be a chance to flaunt their credentials. Hyperservice: Providing specialist advice - and enhanced customer service in general will become a priority for bricks and mortar retailers of the future. half of America s malls will close by 2030

6 The Future of Retail 2 Cracking the final mile,. even for B&M Retailers Cracking the final mile is still very much seen as the Holy Grail of modern retailing. Retailers must continue investing in alternative fulfilment options in a bid to wean shoppers off cheap and speedy home delivery. We anticipate further innovation in the areas of third party (e.g. Google Express, Shutl) and crowdsourced (Kanga, deliv) delivery, as well as greater ownership of the final mile. The use of drones, retailers running their own automated delivery truck fleets, or even building smaller distribution centres closer to urban areas in order to win the same-day war.

7 The Future of Retail 3 Race for the most convenient store experience Access a retailer s free Wi-Fi. in instore navigation capabilities Personalised promotions/loyalty offers utilising augmented reality both instore and online Checkout-less stores. Mobile payments. The store of the future will be heavily tech-driven

8 The Future of Retail 4 Personalisation to reach new heights To engage with shoppers in a bid to build trust and awareness

9 The Future of Retail 5 The end of points-based loyalty cards The shoppers of tomorrow will look to be rewarded for more than just transactions. The future of loyalty can be best summed up in three words: personalisation, digitisation and gamification - Walgreens

10 The importance of Your Digital Platform

11 EACH ERA BUILDS ON THE LAST The Evolving Shopping Experience NEXT: Adaptive Retail: Era of Retail Everywhere Seamless Retail: Era of Omni-channel. Customer Centric Retail:. Era of Segmentation Scientific Retail: Era of Optimization

12 The New Digitally Enabled Retail Building Blocks of a Digitally Enabled Organization Cloud Analytics People & Process Application Work Place ERP CORE APPLICATIONS Mobility Security Operations Technology Infrastructure EComm Social

13 S/4 HANA Solution Portfolio for Retail Simplify IT Landscape and Business Processes to Unlock Business Innovation Middle + Office + Differentiating and Innovative Applications ERP Back Office CAR Digital Front Office S/4 HANA Retail for Merchandise Management Predictive Analytics Real Time Customer Activity Hybris Commerce Marketing Retail Distribution & Logistics Unified Demand Forecast Real Time Inventory Master Data Governance Solution Finance HANA

14 THANK YOU