Presentation on some relevant trends and developments for omnichannel retailers in the European marketplace

1. What we see in the Retail marketplace
IBM – France – LA GAUDE, 5/11/2014

2. 2
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3. IBM has analyzed 169 retailers in 12 Western European countries
with more than 12,000 data points
Data structure/ Criteria Data Sample/ Goals Categories
12,000 datapoints
analyzed
52% of positive
answers to criteria
75 evaluation criteria
in 13 segments
Evaluation of the
omnichannel
maturity of retailers
in different segments
Customer list
Criteria analyzed
Criteria fulfillment
Focus on retailers that operate in both worlds:
online and offline retailing
All criteria were evaluated from a customer
perspective:
The team did real purchases in order to evaluate all
criteria
Segments: Fashion shoes, department stores,
grocery, electronics, DIY, drugstores, furniture, sporting
goods, specialty retailer, general goods, telco, toys
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Criteria Categories
Service
Store
Service Call
Center
Service
Online
Longtail
Price
Strategy
Home
Delivery
Click
Collect
Returns
Product
Presentation
Integrated
Marketing
Social
Media
Mobile
Website
Mobile
App

4. The top 10 omni-channel retailers in Western Europe
80%
73,9%
UK
6
70,4%
UK
70%
75%
80%
70,9%
Spain
73,9%
UK
5
78,3%
UK
3
80,0%
France
2
75,7%
France
4
70,0%
France
9
(Verkkokauppa) 68,7%
Finland
82,2%
Germany
1
10
7
8
48,7%
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5. Department Stores
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Service (Call Center, Online,
Store) Social Media
Click Collect/ Return
Process
Delivery can be split between
multiple addresses, or multiple
stores for Click Collect.
Selfridges also offers 30 minutes
of free parking to customers
choosing to Click and Collect from
its London store
Service chat
from mon-sat
8:00-
21:00
option to book
a free personal
shopper for
when they are
next shopping
in-store. There is a Debenhams blog and TV
Self-scanning is
available for
certain items in-store
channel where you can watch
videos of collections and specific
designers
Customers and Sales associates are
equipped with tablets and have
instant access to warehouse
availability and can take orders

6. Electronic retailers are very strong in the areas Click
Collect/Returns, Social Media and Mobile
Click Collect / Returns Social Media Mobile
Darty: Parcel pick-up station Conrad, Boulanger
Boulanger: offers pick-up
within one hour for
ClickCollect parcels
Darty: provide various social
media channels for
interaction and they respond
quickly to customer
comments
Conrad: company-owned electronics
blog and forum
Darty: Sends their
customers push notifications,
offers
in-store scanning and
provides purchase history on
the mobile app
FNAC: in addition to that
FNAC offers their customers
order modification via the
app and a broad range of
mobile applications
Verkkokauppa: 24/7
Kiosk Pick-Up Click
Collect (in the main
warehouse / store)
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7. For online product presentation, ordering and delivery Verkkokauppa,
Dixon- Curry’s and Conrad are leading within the analyzed retailers
in Europe
Online product presentation, ordering and delivery
Top Retailers in this segment set themselves apart from:
Online product presentation with independent reviews and
test reports
Possibility for customers to choose their preferred delivery
date and time slot
Express service within 24 hours for home delivery
Option to modify the order within two hours after buying
online
Automated parcel deposit and pick-up station
46,2%
Express Delivery (24
hours)
11,8%
Same Day
Delivery
32,0%
specification of
preferred delivery day
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Top Retailers
The retailers analyzed in the study offer@

8. Boulanger, Verkkokauppa and Conrad are leading retailers in the
click collect and also the return process
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Click Collect / Return process
Top Retailers in this segment set themselves apart from:
Split of shopping cart into “home delivery” and “pick up in
store”
Pick-up within one hour after ordering
Possibility to returned/exchange products in stores that were
purchased online
24/7 Kiosk Pick-Up Click Collect at any time
Top Retailers
The retailers analyzed in the study offer@
%
59,2Click Collect
26,2%
online reservations can
be picked up in store
60,9%
articles purchased
online can be returned in store

9. The service performance of Boulanger, Sivan and Conrad are
leading
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Service (online, call center, store)
Top Retailers in this segment set themselves apart from:
Customers can book a personal shopper online
Customers can get information about product availability in
warehouses and stores online or through the call center
Products can be compared along specified criteria
Service Chats
Best Practice Example
The retailers analyzed in the study offer@
48,5%
online information on
product availability in stores
13,6%
self-scanning
terminal for payment
6,5%
offer check-in or in-store
services for smartphones

10. Argos, Zara and Hema are the strongest retailer offering Mobile
Services
Mobile
Top Retailers in this segment set themselves apart from:
Customers can redeem coupons during the purchase on
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the app
Product availability in stores and warehouses is shown on
the app
Customers can view their order status and make
modifications
Customers can view the stores close to them
Best Practice Example
The retailers analyzed in the study offer@
59,8%
mobile App
52,7%
offer to place an
order via mobile App
45,0%
mobile Website

11. Conrad, Tchibo and Tesco-food have a strong Social Media
performance
Social Media
Top Retailers in this segment set themselves apart from:
They offer many social media channels such as blogs,
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forums, Facebook and Twitter
More importantly these retailers quickly respond to posts
and have a strong presence on social media channels
They host competitions and run promotions
Best Practice Example
The retailers analyzed in the study offer@
94,7%
facebook presence
74,26%
facebook near-time
interaction
79,3%
Youtube Channel

12. SHIFT 3
The emergence of cloud
is transforming IT and
business processes into
digital services.
OUR POINT OF VIEW
Cloud is the path to new
business models.
SHIFT 2
Data is becoming the
world’s new natural
resource, transforming
industries and
professions.
OUR POINT OF VIEW
Data is the new basis
of competitive advantage.
DATA/INSIGHT
SHIFT 1
Mobile and social are
transforming individual
engagement – creating
expectations of security,
trust and value in return
for personal information.
OUR POINT OF VIEW
A systematic approach
to engagement is
now required.
MOBILE/SOCIAL CLOUD/SERVICES
1
2
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Transformation:
MOBILE/SOCIAL

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4
Transformation:
DATA/INSIGHT
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OPERATING
EFFICIENCY
Pricing Optimization
Coop Danmark
Coop Danmark, one of
Denmark’s largest retailers,
implemented a cloud based
analytics software to give
insight into local customer
preferences related to
markdown items 1
Transformation:
REVENUE
GROWTH
Mobile Technology
Walgreens
Walgreens released a cloud-based
mobile app which
allowed customers to stay on
top of their health needs
easily and effectively 2
CLOUD
ECOSYSTEM
DOMINATION
Vendor Management
Grocery Retailer
Multi-billion dollar grocery
retailer uses cloud-based deal
management solution to
collaborate with its vendors
on promotions 3
10% boost in
markdown ROI
New ways of customer
interactions
98% of all vendor
funded promotions

17. 1
7
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Link: https://www.youtube.com/watch?v=yKNSOwLcrkE

19. Link: http://vimeo.com/88976262

20. The Store of the Future
Product Selling Space
Services
Checkout
Backstock
Fulfillment Delivery
Returns Processing
Back Office
(Store Ops)
Back Office
(Marketing)
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21. The Brand experience of the future
The digital experience will become the bridge to
the physical world, and technology will provide uber
personalization, ultra convenience, and ultimately
simplify the shopping processes

22. Digital experience as bridge to the physical
Kate Spade eBay: The Future of Window Shopping
http://www.youtube.com/watch?v=CdotI0wax4Y#t=10

23. The Art and Science of Merchandising
Bring science to merchandising in order to pick the
right merchandise for assortments, and deliver more
efficiently to customers
Use Data for up-to-the-moment insights into
consumer sentiment
Technology to react in real-time as consumer
demand unfolds by extracting more value from
inventory to drive additional demand

24. Amazon tops customer satisfaction list
Online retailer Amazon has been named by consumers as the
organization with the highest level of customer satisfaction,
as overall public trust in the UK's most recognised brands fell
for the first time since 2008. http://www.theguardian.com/money/2014/jan/28/amazon-tops-customer-satisfaction-list/print

25. The Physical Digital Convergence
As customers opt-in they are identified as
individuals
By combining in-store, on-line and other customer
information retailers create a 360 view
This allows retailers to improve store operations and
services across channels as well as ultra-personalize
the shopping experience

26. “Shopkick Starts 100-Store iBeacon Trial
For American Eagle, Biggest Apparel
Rollout Yet”
“Safeway and Giant Eagle in the US have
begun using Apple’s iBeacon instore
geolocation technology”
http://techcrunch.com/2014/01/16/shopkick-starts-100-store-ibeacon-trial-for-american-eagle-outfitters-the-biggest-apparel-rollout-yet/
As customers opt-in

27. Ultra-personalize
Shoppers creating their own products via interactive signage

28. https://www.youtube.com/watch?v=qJMyC9o08OM

29. LINK

30. Technology must support consumers
and operations simultaneously
http://www.shop.org/research/original/digitizing-store

32. Are you a brand?
What do you stand for?
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37. Do you really care about your customers?
Do you help solve their problems?
Or do you try to figure out how to sell them
more stuff?
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Thank You
Jerry.Stam@nl.ibm.com
+31 - 651285639
https://www.linkedin.com/in/jerrystam
www.ibm.com/industries/nl/nl/retail/