retail 2020: at your service

12/05/2015
RETAIL 2020:
AT YOUR SERVICE !
PROF. GINO VAN OSSEL
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AGENDA
1. omni-channel
2. the business case
3. retail 2020
4. conclusion
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monochannel
monochannel
multichannel
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seamless
integration
monochannel
multichannel
crosschannel
OMNI-CHANNEL
monochannel
multichannel
crosschannel
omnichannel
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customer centric
commerce
CUSTOMER-CENTRIC COMMERCE
orientation
purchase
after-sales
enrich
simplify
functional
needs
affective
needs
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CUSTOMER-CENTRIC COMMERCE
orientation
purchase
after-sales
enrich
simplify
functional
needs
affective
needs
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7
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CUSTOMER-CENTRIC COMMERCE
orientation
purchase
after-sales
enrich
simplify
functional
needs
affective
needs
AGENDA
1. omni-channel
2. the business case
3. retail 2020
4. conclusion
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growth
John Lewis
online
+21.6%
growth
John Lewis
shop sales
+ 2.2%
(+0.6% LFL)
online
share of sales
John Lewis
John Lewis
click & collect
31.6%
54% of
online orders
source: John Lewis 2014/15 annual report – growth vs. year ago
THE BUSINESS CASE
 sales
 online as driver of revenue growth
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buying frequency
in store
online
3,0
5,4
7,0
2,3
webshop
only
customers
store
only
customers
omni-channel
customers
source: Bijenkorf
THE BUSINESS CASE
 sales
 online as driver of revenue growth
 especially appealing to most committed customers
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THE BUSINESS CASE
 sales
 online as driver of revenue growth
 especially appealing to most committed customers
 capex
 digital requires major investments
 profit impact depends on sales volume
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MARKETING
marketing cost ratio (% of sales)
30%
26,7%
25%
22,6%
17,6%
20%
13,2%
15%
10%
5%
0%
2011
2012
2013
2014
THE BUSINESS CASE:
MARKETING
touch point
share of
share of
transactions transactions
hard goods
soft goods
paid search
32%
19%
natural search
25%
14%
e-mail
19%
41%
social media
< 1%
<2%
other
23%
24%
Source: Forrester / GSI Commerce – Holiday attribution research ‘11 (Q1 – 2012)
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LOGISTICS
fulfilment cost ratio (% of sales)
35%
30%
26,5%
25,6%
23,9%
2011
2012
2013
25%
22,3%
20%
15%
10%
5%
0%
2014
THE BUSINESS CASE
 sales
 online as driver of revenue growth
 especially appealing to most committed customers
 capex
 digital requires major investments
 profit impact depends on sales volume
 opex
 fulfilment & marketing costs explode
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?
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2
share of heart
3
4
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“click & reserve”
on average
3 items/ticket
50%
store
pick-up
(NL)
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60%
of returns
are in-store
(NL)
AGENDA
1. omni-channel
2. the business case
3. retail 2020
4. conclusion
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1.
25
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2.
RETHINKING SERVICE
0
12
20
9
4
40
27
60
11
80
20
totally disagree
disagree
more or less disagree
more or less agree
agree
totally agree
100
19
neutral
“Thanks to the information I find on the internet, I know
pretty well what I want to buy, before going to the store.”
in-store survey among buyers, Consumer electronics (Belgium), June 2012, n = 408
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from selling to helping to buy…
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3
31
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32
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4.
Medium
Low
Mass
1:1
Segmented
High
Mass marketing
Customer intelligence
THE BIG PICTURE
Segment Individual
Offering
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“The future of personalization isn’t to impress customers with science.
It’s to delight them with magic.”
John Mulliken – co-founder Joss & Main
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9
7
0
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CUSTOMER-CENTRIC COMMERCE
orientation
purchase
after-sales
enrich
simplify
functional
needs
single view
of the
customer
affective
needs
SINGLE VIEW OF THE CUSTOMER
cross-device
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SINGLE VIEW OF THE CUSTOMER
cross-channel
 receipt
 loyalty card
 product scanner
 gift voucher
 push messaging
 mailings
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5
fun shopping:
“the winner takes it all”
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RUN SHOPPING: CONVENIENCE RULES
« Dans l'état d'esprit, on a voulu en faire une grande
boutique plutôt qu'un petit magasin.
L'atmosphère est plus chaleureuse, avec beaucoup de bois
et de grandes baies lumineuses. »
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« La composition de l'assortiment a été faite pour répondre à
ces besoins. Le rayon mobilité urbaine est ainsi l'un des plus
grands. Roller, trottinette, vélo... Tout est prévu pour la ville.
Pas la peine de chercher un VTT.»
AGENDA
1. omni-channel
2. the business case
3. retail 2020
4. conclusion
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digital dreams
digital budget
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“If we focus on the customer,
the outcome will be right”
Jamie Nordstrom
head of Nordstrom Direct
‘Dit boek biedt een stevig conceptueel
kader én heel concrete handvatten!
Een echte must voor al wie begaan is
met de toekomst van retail!’
Wouter Torfs, CEO Schoenen Torfs
‘Een echte aanrader voor zowel retailers
als e-tailers!’
Bart Claes, CEO JBC
‘Een boek geschikt voor zowel
professional als leek, voor de denker en
de doener, de gelegenheidslezer en de
alleslezer.’
Verslag van de Jury,
Managementboek van het Jaar
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CUSTOMER-CENTRIC COMMERCE
orientation
purchase
after-sales
enrich
simplify
functional
needs
affective
needs
CONCLUSION
Prof. Gino Van Ossel
Retail management
E-commerce & omni-channel
Shopper & trade marketing
Channel management
gino.vanossel@vlerick.com
@ginovanossel
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