IRF 2017

Future of RetailAbheek Singhi

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Second half of chessboard - 9,223,372,036,854,775,808

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New technologies emerging faster than ever

Big data and analytics Cloud computing Robotic process automation

Ubiquitous connectivity & IoT

Cognitive computing Virtualization

AR/VR

Develop deeper insight

into customer behavior,

preferences and

pathways

Drones

Smart devices

Manage huge data

volume in open systems

and provide services on

demand

Replace humans where

work

processes are

entirely rule-based

Aerial photography and

video, unmanned cargo

system, security,

inspections

Intelligent, predictive

virtual assistance—from

interaction analysis to

location-based offerings

Free services from reliance on specific

soft-/hardware and ensure flexibility, adaptability and

robustness

Create an ongoing

relationship—from on

the spot service

provision to remote

monitoring

High performance devices

allow eco-system

development with apps

and cloud services

Get the info you need,

when you need it—from

manuals to service alerts

Ubiquitous connectivity and IoT

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Indian consumer: A snapshotHeena, 28 years old, Mumbai

Technology professional

Apparel buyer

Customer Journey: Dress and bag purchase

See Select Search Socialize Shop Study Save Sell

Social

media

Shopping

website

Instant

messaging

Shopping

website

"I saw a celebrity wearing

a new dress during movie

promotions. I loved it but

it would have been very

expensive."

"I searched for the

same dress on Google

and found something

similar on Myntra for a

fraction of the cost"

"I sent the link of the

dress to my friend to

ask for her thoughts.

She also liked it a lot."

"I bought the dress

from Myntra.com the

next day and ordered

it via cash on delivery"

"The next day I was scrolling through my

news feed and I got a suggestion for a

handbag which matched my dress"

Social

media

Shopping

website

"The ad redirected me to Amazon

where the handbag was available

on 30% discount"

Mobile

wallet

"I was about to pay by COD but

realized that I had money in my

PayTM wallet because my friend

has transferred them to me. I

used that to make the payment"

200+ mins a day on

her smartphone

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DISCOVERY

Next generation data use providing a truly personalised consumer journey

10:00Landing page

Real-time promotions

10:05Taobaoheading

Always discovering new brands through personalized

content 11:00Ask

everyone

Capturing data across social media

chats

11:30Chatting

with merchants

12:00Starring items

16:00Fan party

Personalised entertainment &

product placement

BUY

18:00Live streaming

'Buy from anywhere'

19:00Seamless checkout

20:00Further

discovery

Seamless 'discovery to payment to

further discovery'

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5

4

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The Past Today The FutureSell what you create Create what can be sold in store Create what people want

Source: BCG

Product

Consumer Store

Store

Product Consumer

Consumer

Relationship

Product Experience

Store of the future will have consumer in the center

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Learning from the east

$750bn

$400bn

$160bn

Note: Internet penetration = the number of internet users divided by the population. An internet user is someone at least two years of age who has been online in the past 30 days. Jan 2017 exchange rates used of US$1=€0.95; US$1=¥6.93Source: Economist Intelligence Unit, Internet World Stats, International Telecomunication Union, World Bank, Euromotior, BCG analysis

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Something is changing

… go online with a specific item in

mind

… is focused around fast, smooth

& easy transactions, with minimum

friction and one-click orders

… optimise personalisation &

engagement

The WEST: a more

efficient way to shop

The EAST: a richer

alternative to shopping

… go online to see what's new or what's

trending, sometimes many times a day

… is focused around highly personalised

exploration & discovery experience,

keeping consumers browsing for longer

… optimise search & payment

efficiency

Players

Consumers

The journey

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Market traits are reflected in giant's business models

Consumers use it because they

know what they want:

• Near 'unlimited' inventory

• Excellent search engine

• Low prices

• User reviews/recommendations

• Rapid delivery

Consumers use it to be entertained

and explore new things:

• Connected buyers & sellers

• Brands create individual online experiences

– Games, celebrity events etc.

• Integrated with social media, entertainment sites, news portals

Quintessential online retailer The interactive, virtual mall

10

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