 | Omnichannel 2014Release date: April 25th, 2014 (163 pages) PDF/Powerpoint format. Price: GBP1,999.00 |
Abstract
Across the globe omnichannel retailing is becoming the new normal. Retailers that have not yet embraced it will need to start transforming their business models now to remain relevant with shoppers. Becoming omnichannel means progressing from a bricks & mortar retailer to becoming a platform that successfully intertwines offline and online channels and on which retailers will serve their customers’ needs (even those not traditionally considered as retail).
It requires a fundamental reorganisation of the business to build an all encompassing ecosystem around the consumer.
The challenge for any consumer brand, but especially a bricks and mortar retailer, is to make sure they are as relevant outside the four walls of their store as they are inside. In other words it’s all about engagement first, because that is the ultimate driver of conversion and hence sales growth.
An omnichannel strategy adds multiple layers of complexity and is not simply about bolting on new channels to the existing business. A true omnichannel strategy will revolutionise the entire business. Insights (and action plans) gained from the collection and analytics of real time customer data, linking up the off and online shopper, will drive a total transformation of all steps of the value chain. Omnichannel players will need to continuously find the optimum infrastructure, they will need maximum flexibility in their sourcing strategies, the supply chain set up, which needs to remain open to change, and in the home delivery solution mix. Moreover all the flexibility and agility required now will increase in volatility as business needs evolve on an even faster pace going forward. Omnichannel needs constant attention.
This report caters to both novice and experienced retailers and analyses the thoughts and processes needed to make the difficult art of omnichannel retailing a successful reality.
Table of contents
| Executive summary: Omnichannel 2014, in store technology, logistics, retail as a platform | p14 |
| Omnichannel: The eight benefits of an omnichannel strategy | p22 |
| Omnichannel strategy: The eight benefits (1-5) | p23 |
| Omnichannel strategy: The eight benefits (6-8) | p24 |
| Omnichannel strategy: The eight benefits | p25 |
| Omnichannel strategy: Going global p 26 Omnichannel: how much more worth is the omnichannel shopper financially? | p27 |
| Tesco: Multichannel customer data 2014 | p28 |
| Omnichannel: focus on the customer and the logistics set up at the back end | p29 |
| Albert Heijn: the online grocery opportunity, from BOL.com to PUPs | p30 |
| Albert Heijn: click & collect and drive, % uplifts from comprehensive multi channel strategy | p31 |
| Omnichannel: the outstanding players | p32 |
| The outstanding players: John Lewis Partnership, Waitrose integration | p33 |
| The outstanding players: m-commerce, omnichannel strategy with stores at heart | p34 |
| The outstanding players: Tesco on path to become the best omnichannel player | p35 |
| The outstanding players: Tesco – great expectations for the digital wallet | p36 |
| The outstanding players: integrated solutions and the surprises from hudl | p37 |
| The outstanding players: Argos copying Apple’s store design | p38 |
| The outstanding players: Argos – the 5 year plan | p39 |
| The outstanding players: Argos, eBay and social media | p40 |
| The outstanding players: Casino, Cdiscount and drives | p41 |
| The outstanding players: Cdiscount going 3P, internationalising | p42 |
| The outstanding players: Rakuten, a different omnichannel model, super points | p43 |
| The outstanding players: Rakuten payment, internationalisation, acquisitions | p44 |
| Smartphones & tablets: the revolutionary channel | p45 |
| Smartphones: Wi-Fi in store, in store location, the coupon opportunity | p46 |
| Smartphones: Real time communication triggers | p47 |
| Smartphones: Google and in-store maps, personalisation | p48 |
| Smartphones: The crucial touch-point for 6 functions | p49 |
| Smartphones: the retailer benefits, m-payments, digital wallets | p50 |
| Smartphones: m-payments, to partner or to go it alone? What will Apple do? | p51 |
| Starbucks: the outstanding mobile payments retailer, the data | p52 |
| Starbucks: the outstanding mobile payments retailer, high hopes for Tesco’s mobile wallet | p53 |
| Digital wallets: what will the Telcos do? Privacy/security, problem of scale | p54 |
| Smartphones: the retailer benefits, in store applications, big data, loyalty | p55 |
| Smartphones: m-commerce, tablets taking off… | p56 |
| Smartphones & tablets: as enterprise solutions | p57 |
| Tablets: the unstoppable rise of tablets – retail strategies | p58 |
| Tablets: Enterprise devices for mobile payment, iPad and kindle | p59 |
| Marketplaces: the revolution | p60 |
| Online marketplaces: innovation and international expansion test bed | p61 |
| Online marketplaces: Alibaba’s approach to multichannel | p62 |
| Social media: essential in the channel mix | p63 |
| Social media: supreme engagement and early warning system | p64 |
| Social media: moments of delight, cheap query resolution, personalisation | p65 |
| Social media: clever uses by retailers, Carphone Warehouse, Asos, Ao.com | p66 |
| Social media: best uses of twitter, the challenges | p67 |
| Social media: pitfalls and how to negotiate them, customer expectations | p68 |
| Social media: not just a marketing ploy but a platform | p69 |
| Technology solutions in bricks & mortar stores | p70 |
| Bricks & mortar: the transformation of physical stores through innovation | p71 |
| Footfall tracking: the new frontier | p72 |
| Technology: better footfall tracking, data ownership, personalisation | p73 |
| Technology: linking on and offline shoppers, geofencing | p74 |
| Footfall tracking: pure tracking – Euclid | p75 |
| Euclid: Footfall tracking, the market leader | p76 |
| Euclid: assessing loyalty programme strength, store network density, out of stocks | p77 |
| Euclid: data security, risks, privacy concerns | p78 |
| Euclid: no shopper activation needed, no loyalty integration as privacy strength | p79 |
| Euclid: Solving the attribution problem, staffing levels and conversion, brand strategy | p80 |
| Beacons: a different approach | p81 |
| Bluetooth beacons: footfall tracking, pushing content and mobile payments | p82 |
| Bluetooth beacons: cheap solution, triangulation, not all about Apple | p83 |
| Beacons: the in store marketing opportunity, what about returns? Mobile beacons | p84 |
| Beacons: Push overload, earliest EU manifestation in 2014 | p85 |
| Clienteling: linking up on and offline shoppers | p86 |
| Technology: linking on and offline shoppers, clienteling | p87 |
| Clienteling: the introduction of big data into bricks and mortar | p88 |
| Clienteling: single inventory view and an endless aisle solution | p89 |
| Mobile EPOS: Queue management, House of Frazer, Monsoon | p90 |
| Clienteling: the cloudtags solution | p91 |
| AR, virtual mirrors, facial recognition: personalisation | p92 |
| Tech innovation: Augmented reality, virtual changing rooms | p93 |
| Facial recognition: adding to the pervasiveness of CCTV | p94 |
| Technology: electronic shelf labelling – is the ROI case clear? | p95 |
| Technology: electronic shelf labelling – shopper acceptance and real time data | p96 |
| Omnichannel strategy impact: on logistics | p97 |
| Strategy impact: on logistics, supply from anywhere to everywhere, same day | p98 |
| Strategy impact: on logistics, click & collect, mix of fulfillment solutions | p99 |
| Logistics: OOT decline, hubs, vendor flex, marketplaces, collaborative delivery | p100 |
| Logistics: OOT space pivot, return trips, vertical integration, AmazonFresh | p101 |
| Crowd sourced delivery: P2P on the last mile, the Stockholm example | p102 |
| Click & collect | p104 |
| Click & collect: from collect+ via French drives to UK underground stations | p105 |
| Click & collect: Asos, Volvo and Linas Matkasse and digital car keys | p106 |
| Click & collect: the importance of hub and spoke | p107 |
| Returns | p108 |
| Returns: real time visibility, OSA forecasting | p109 |
| Returns: to outsource or insource? The international perspective | p110 |
| Omnichannel strategy impact: on sourcing | p111 |
| Impact: from outsourcing to onshoring, local supply chains, local production | p112 |
| Impact: personalisation and unique product, the case for onshoring | p113 |
| Impact: Asian supply chain evolution, the race to the bottom is over | p114 |
| Omnichannel strategy impact: on sourcing and internationalisation | p115 |
| Impact: focus on maturing supply chain fit for omnichannel | p116 |
| Impact: setting up a frictionless system | p117 |
| Sourcing: Zara’s mixed model, identifying tipping points for direct models | p118 |
| Sourcing: cost versus lead times, fashion in a global world | p119 |
| Sourcing: investment into infrastructure, different tipping points | p120 |
| Sourcing: collaboration, systems, real time data, online, ship from source | p121 |
| Sourcing: fast fashion cycles create dynamism throughout the business, inventory | p122 |
| Recommendations: on logistics and sourcing (I) | p123 |
| Recommendations: on logistics and sourcing (II) | p124 |
| Technology: robots in the supply chain, Amazon’s Kiva rollout | p125 |
| Big data: gluing it all together | p126 |
| Big data: updating the algorithms | p127 |
| Big data: customer-focused intelligence, business agility, personalised experience | p128 |
| Recommendations: Introducing prosody – details matter | p129 |
| Following the shopper use case | p130 |
| Recommendation: adapting technology to shopper use cases | p131 |
| Recommendations: Solving attribution and personalisation | p132 |
| Recommendations: Single view of customer and stock pool | p133 |
| Recommendations: from single channel customers to multichannel | p134 |
| 70 – 20 – 10 mindset | p135 |
| Recommendations: how to launch new initiatives, failing fast and innovating (I) | p136 |
| Recommendations: how to launch new initiatives, failing fast and innovating (II) | p137 |
| Recommendations: Launching a R&D centre | p138 |
| Recommendations: Launching a R&D centre | p139 |
| Recommendations: Best practice examples | p140 |
| Managing price arbitrage | p141 |
| Recommendations: Managing price arbitrage against Amazon | p142 |
| Recommendations: Supplier interest and support | p143 |
| Disruption and catastrophic failure | p144 |
| Recommendations: technology outages and intensifying disruption effects | p145 |
| Recommendations: system integration and risks of hacking | p146 |
| Next channels to watch: wearables & smart TVs | p147 |
| Technology: the rise of wearables, Google Glass recording key live-stage events | p148 |
| Technology: the rise of wearables, Google Glass app store to open in 2014 | p149 |
| Smart TVs: Amazon’s Fire TV set top box, focus on gaming | p150 |
| Technology: the internet of things, self driving cars, drones, accident liability | p151 |
| Outlook: what to do now | p152 |
| Outlook: what to do now, reinventing bricks and mortar | p153 |
| Outlook: reinventing the back end, focus on customer profitability not channel | p154 |
| Outlook: fulfillment and delivery | p155 |
| Add on: précis on Asia | p156 |
| Asia: Chinese e-commerce, on track to become the biggest online market | p157 |
| Asia: Chinese e-commerce | p158 |
| Asia: m-commerce in Japan, South Korea’s booming market | p159 |
| Asia: India and Australia | p160 |
| Australia: strong Australian $, favourable tax policy and high domestic prices | p161 |
| Sources | p162 |
