Accenture retail metailing

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The role of the physical store has changed. They’re no longer distribution centers — instead, they’re experience and service providers.“Going shopping” is being replaced by “shopping moments.” Shopping is no longer only a discrete, planned activity – it’s something that often happens throughout a person’s normal course of a going through the day.Those retailers which offer truly integrated multi-channel shopping are the ones that are growing.The value of department stores and shopping malls is declining, since online players fulfill the desire for multiple product lines and brands in a single “location” more effectively than physical retailers.Wallets are becoming as unnecessary as watches. Smart phones are easier to use, provide more functionality, and offer greater security.Sourc

Transcript of Accenture retail metailing

  • 1. From Retail to Me-tail:Tomorrow Starts Today

2. 3 | From Retail to Me-tail: Tomorrow Starts TodayTomorrows consumers willbe armedand dangerous. 3. From Retail to Me-tail: Tomorrow Starts Today | 4As power moves inexorably from seller to buyer andretailing morphs into Me-tailing, retail organizationswill need much more than customer centricity and supplychain optimization to achieve high performance.Todays consumers are demanding. Consumers will be able to shopBut tomorrows consumers will beseamlessly across multiple channelsarmedand dangerous. Empoweredand expect to find relevant contentby technology for unprecedented on all of themchoice, they will demand productsand services that meet a constantly Fast fashion will be the de factoshifting kaleidoscope of expectations,industry standardwith dramaticfrom convenience and affordability to a consequences for store inventorycustomized experience and sustainable levelssourcing. They will expect to access Supply chains will be optimizedproducts and services from just about across the full product lifecyclerightanywhere and at pretty much any through to disposaltime. And in their quest for instantgratification they will totally transform Consumers themselves will help formthe retail industry.the communities of talent requiredto service a vast diversity of new and Stores as we know them will no longer constantly shifting demandsbe relevantmany shoppers will nevereven visit one 4. 5 | From Retail to Me-tail: Tomorrow Starts Today Stores as we know them will no longer be relevantmany shoppers will never even visit oneSome stores will focusIn the future, the sheer diversity of both People who actually bother to visit ashoppers and shopping trips will require physical retail space will be in searchon the time-starved,a multiplicity of formats, each tailored of an enjoyable and entertainingothers on the green to a specific local market. The name experience. They may patronize book-of the store game will be precisionstores where they can meet stimulatingconsumerand someretailing. And successful stores will be authors, for example, or toy stores thatstores will simply be those that leverage their closeness to let kids interact with their favoriteshowrooms.customers to interpret demand signals toys and games, while in-store experts,and swiftly act on them. both real and virtual, answer parents questions.Some stores will focus on the time-starved, others on the green Todays shoppers are more thanconsumer. Some will simply beready for the mobile and interactiveshowroomslike, for example, Vogue technologies that can deliver this levelmagazines twist on pop-up retail, of experience. Consider, for example,which allows visitors to try on itemsthat almost three quarters of Europeansfrom the racks of clothes on display,responding to a recent Accenturereceive advice from stylists and samplesurvey said they would use mobileproducts from the perfume bar or phones in-store for product informationmake-up station. The store space sells scanning; and more than half agreednothingbut the information that that being able to interact with anattentive store staff can derive about online product expert while in storecustomers preferences could prove would save them time.invaluable to future sales prospects. 5. From Retail to Me-tail: Tomorrow Starts Today | 6Consumers will shop seamlessly across multiplechannelsand expect to find relevant contenton all of themTodays consumers already enjoy 24/7experiences from a variety of locationsits customers to buy products from theirpurchasing power, as well as almost and via a diversity of channels, camera phones. Dominos customerstotal transparency over transactions. effectively editing their productcan order pizzas from the TV, as wellAnd they are beginning to abandon choices. And if a product fails to fulfill as through cell phone apps and viaproduct ownership in favor of a their expectationsif that shirt theyFacebook. Staples Canada print shopleasing lifestyle, characterized by a spotted someone wearing on the streetuses experts channelled in, on-demand,footloose quest for access to fewer or online turns out not to have been to help the customer define the printitems closer to the point of need.manufactured according to the exactjob, mock up samples and place ordersenvironmental and ethical standardsan innovation that has also helpedIn the future, Internet penetration of their social networking group, forStaples expand their offering into morewill turn this multi-channel lifestyle, instancethey will search the productlocations by solving a basic challengenow mostly enjoyed by the so-called comparison websites or consult their in retailingcost effectively providingMillenial generation, born since 1980,networked friends worldwide for aeach customer with the right expertiseinto a global phenomenon. And this, better value proposition elsewhere.and personalized service at the momentof course, spells huge opportunities of customer need. And one high-endfor start-ups, which we call wildfireLeading retailers are already looking to apparel maker offers online buyers whoniches because of the speed with capture increasingly elusive customers cant find the exact item they are lookingwhich we expect them to spread- in imaginative ways. Consider thefor a close matchat a significantempowered by new technologies success of Zlio, for example, an onlinediscount, which is also on offer to theirand serving a diversity of customer site that invites visitors to createnetworked friends.segments. your own store by selecting productsfrom hundreds of Internet merchants,Interconnected and using a single and earning money on each sale. Themobile device, do-it-yourself retailSwedish fast fashion giant H&M allowsgrazers will be able to configure their 6. 7 | From Retail to Me-tail: Tomorrow Starts TodayThe lifecycle of products willbe significantly shorter, makingproduct innovation an evenmore critical differentiatorof high performance. 7. From Retail to Me-tail: Tomorrow Starts Today | 8Fast fashion will be the de facto industrystandardwith dramatic consequences forstore inventory levelsIn the future, the lifecycle ofIn the future, the retail supply chain basics. It will separate and streamlineproducts will be significantly shorter,will be predicated on inventory arriving the design function, encouragingmaking product innovation an evenat the store shelf just as need arises.timely and accurate handoffs betweenmore critical differentiator of high Replenishment orders will be placeddesign and production. Production leadperformance. Fast fashion, in fact,and released on regular cyclestypically times should drop, thanks to the highwill be the dominant business model weekly or more. Lead times for domesticutilization of common components. Andnot just in apparel and consumer suppliers will be measured in hours or vendor partnerships should strengthen.electronics, where it is already evident,days. And forecasting, planning andbut also in all other retail categories. replenishment systems will support Some leading retailers are already real-time allocations and store need leveraging consumer insight to moveFast fashion will also necessitate moreinventory management techniques in the fast fashion direction. Witnesssupple supply chainsa challenge for innovations that Accenture estimates the move by Target, the US-basedmany. According to Miami-based Retailwill reduce in-store inventory by onegeneral merchandise retailer, toSystems Research, forecast does notthird or more. expand its fast fashion concept frommatch demand for most retailers. Theapparel to gardening, home decor andproliferation of stock keeping units The benefits of a successful fastkitchenware. In the future, they will(SKUs) means that retailers are trying fashion business model are numerous. be able to combine this insight withto edit a constantly increasing number Customers will see a visible differencedeep analytical capabilities to identifyof choices to stay relevant for theon the store floor, inducing them to the specific attributes of each product,consumer. And Accenture estimatesmake more visits and thus boosting determine its value to individualthat many are making more than 80revenues. And a faster response to consumers and target assortments, thuspercent of their inventory investments sales data will help boost productioncustomizing individual offerings. Whatsin storean untenable situation with efficiency, fuelling sales and reducingmore, fast-moving products will bereal estate costs steadily rising andmarkdowns. The model will help ensurestocked in smaller formats like vendingretail space in increasingly short supply. full in-stock assortment for the hottest machines or kiosks, which are not only selling items and high in-stock rates on more convenient for consumers but alsomore cost-effective for retailers. 8. 9 | From Retail to Me-tail: Tomorrow Starts TodaySupply chains will be optimized across the fullproduct lifecycleright through to disposalFuture resources will be even scarcerwhen consumers will be able to stop byin logistics, and supply chainthan they are today, and consumers refresh and refill window chutes, stock specialization and segmentation will becorrespondingly more value-up on basics and use mobile devices tocommonplacethough a proliferation ofconscious. Shoppers will take on morepay for them. distribution points will also necessitateresponsibility for reducing packagingshared logistics and other forms of Resource constraints are changing collaboration. Consider the case ofand irresponsible production. But they behaviors alreadyand not justMeadowhall, a large mall in the UK,will not be prepared to bear the full cost in Europe and the US, where the which has teamed with Clipper Logisticsof sustainability. Retailers will need to quest for sustainable products andto manage an on-site distribution centerinstitute cost-effective sustainability environmentally