Omnichannel 2014

Omnichannel 2014

Release date: April 25th, 2014 (163 pages)
PDF/Powerpoint format. Price: GBP1,999.00


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 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, 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