key emerging consumer markets from around the globe
TRANSCRIPT
Key emerging consumer markets from around the globe
Richard Kelly, Chief Catalyst, Fung GroupGovind Shridhar Shrikhande, Customer Care Associate and Managing
Director, Shoppers Stop LimitedMarie-Helen Straus, Chief Officer Consumer and Innovation Strategies,
Chalhoub Group
Richard Kelly,Chief Catalyst Fung Group
Govind Shridhar Shrikhande, Customer Care Associate &
Managing Director Shoppers Stop
Marie-Helene Straus Chief Officer
Consumer & Innovation Strategies,
Chalhoub Group
Susan Tang VP, Business Development
& Operations, Macy's China
Asia: 1.7B Asia: 3.0 BAsia: 0.5 B
Graphic: BBC
* 2018 : China becomes world’s largest retail market
Globalization of production
1978-2009
Chinese Economic Reforms
Advancement in supply chain
Globalization of consumption
2010 - 2039
Rise of emerging markets consumers
New paradigms in global trade
Global dispersed manufacturing
Billion to Billion
What happens when 2 billion consumers enter global markets in next 2 decades?
GLOBAL GROWTH MARKETS - INDIA
1. India & Indian Economy
2. Indian Consumers
3. Internet Penetration in India: Today and Tomorrow
4. Indian Retail: Evolution, Market Size, Challenges & Online Evolution
5. Shoppers Stop 26 Years Journey and Beyond
6. Success Factors For Retailers in India
Index
INDIA Thrives on
1. India & Indian Economy
FOOD 33 MILION GODS
1. India & Indian Economy
CRICKET BOLLYWOOD
INDIA Thrives on
1. India & Indian Economy
29 States
+
7 Union Territories
+
22 Languages
IN 2017
1. India & Indian Economy
DEMONETIZATION in 2016
2. Indian Consumers
*Knowledgeable
*Always On
*Multi Screen natives
*Idli with Pizza
*TV with 500 + Channels
*More presence virtually on Social Media
* Language Search
*Digital Leap through:
Aadhar, Wallets etc
Consumers
*Friday Dressing
*Denims
*Women’s Western wear
*Wedding Wear as a Festival
*Make-Up
Fashion
2. Indian Consumers
34% 52% 71% 88% 7% 34%
RetailSize in US$ Bln% ECOM
+70016
+40010
+153
3. Internet Penetration in India: Today & Tomorrow
3. Internet Penetration in India: Today & Tomorrow
4. Indian Retail: Evolution Changes over the Last 40 Years
2015 – $630 B 2020 – $1150B
Source: Google, Motilal Oswal, Technopak, India Retail Report
Brick & Mortar Retail is here to stay and Grow!!!
17
560
50
10
4. Indian Retail: Market Size
18
Unclear FDI Policy in Multi Brand Retail & No execution in Online Retail
4. Indian Retail: Challenges
CONSUMER
GOVERNMENT PROPERTY
PEOPLE• Evolving Tastes• Low Brand Loyalty• Multi-format & Multi Channel
Competition
• Availability• Attrition• Knowledge
• Licenses – 65+• FDI Rules• Infrastructure
• Lack of Quality Realty• High Rentals• Professional Mall Management
Globally Online has Evolved Differently:
• In USA – Amazon had Tax advantage & Tech Thinking: IOS, Android, Kindle, Prime were further drivers.• In China – Alibaba – developed Escrow payment to beat trust problems along with Tax/Pricing advantage and a Market Place model.
It developed a Local Digital ecosystem.• In India – Discounting & Big Budget advertising is driving growth “This of That” model supported by Global Digital ecosystem –
Google, Facebook, What’sApp, Cash on Delivery, Mobile First.
Unit Economics is still a challenge both for Online & Organized Retail – giving rise to GMV modelBrick & Mortar is getting disrupted even before it became strong.
Indian Online Vs World
4. Indian Retail: Online Evolution
• We revolutionized modern retail in India in 1991 with the launch of our First Store in Andheri (Mumbai)- Men’s Wear Only
• A first- of-its-kind store operating 4000 sq. feet
• A Movie Theatre was converted to Retail Theatre
• Today 81 Stores covering 30 cities & 615 mln US$ Sales
How It All Began 26 Years Ago…..
5. Shoppers Stop 26 Years Journey and Beyond
Luxury
Bridge to Luxury
Contemporary
Popular
Mass
Premium
2009
SSL
2005
Our Transition
Bridge to Luxury Positioning
5. Shoppers Stop 26 Years Journey and Beyond
72% 69%72% 72% 72% 75% 76%
0%
20%
40%
60%
80%
100%
First Citizen Contribution to Total Sales (%)
Strong Loyalty Programme:5 million members
How will Retail Survive the Battle of the Platforms ?
• Become A Platform ?
• O2O ?
I believe that we have to go back to basics of Retail along with
• Agility
• Digitality
• Aggression &
• Add a Fifth P to the Classical Four P’s – Product |Price |Place |Promotion
• The New P is "Personal Emotion" ….
• We have adopted “Bring Back Romance To Retail”
5. Shoppers Stop 26 Years Journey and Beyond22
Blockbuster Launches
5. Shoppers Stop 26 Years Journey and Beyond
The Largest Cricket Bat @ 131 Ft!
23
High Touch Service: Personal Shopper
5. Shoppers Stop 26 Years Journey and Beyond24
Customer Value Proposition – Customer Journeys
1. Direct To Consumer Home (e Commerce)
2. Buy Online & Return / Exchange At The Store
3. Endless Aisles At The Store via Tablets
4. Express Delivery via Ship From Store
5. Dropship
6. Marketplaces & Affiliate Programs
7. Assisted Shopping At The Store via Kiosks
8. Buy Online & Try At The Store
9. Pickup @ Store OR Click N Collect
10. Pickup @ Third Party
11. International Delivery Programs
Single View of: Customer I Inventory I Orders
5. Shoppers Stop 26 Years Journey and Beyond
1. Marketplace|2. Fashion Experience Center|3. Joint Marketing Programs
Shoppers Stop & Amazon – O2O Partnership
5. Shoppers Stop 26 Years Journey and Beyond
1. Treat India like Europe due to multiple states, languages and habits
2. Indian Consumer are Global in Fashion Consumption but value it in Rupees
3. Mobile First is the Mantra for India as Mobile is:- Genie- Girlfriend- Mailman- Store- Wallet- Search Guide- Voice Assistant
4. Localize without losing identity and add experience plus Value
6. Success Factors for Retailers in India
Emerging Opportunities:How to Capture the World’s Fastest
Growing Retail Markets
Susan Tang VP of Business Development and Operations Macy’s China
Journey to China
ChinaU.S.A.
Shopping is Cultural Crossing Borders = Crossing Cultures Localization > Translation
China Market Characteristics
Source: iResearch
Mobile First
Mobile Share of Web Traffic by Country
Source: We Are SocialHootsuite
Time Spent On Internet by Country
Source: We Are SocialHootsuite
China Market Characteristics
Importance of Social Brand/Product Research &
Discovery
Product Validation
Promo Offer
Product Purchase
Post-Purchase Reviews
KOL’s (Key Opinion Leaders) New Sales Channel
Source: Kantar China CIC
Social Media Growth by Country
Source: We Are SocialHootsuite
China Market Characteristics
E-Commerce
Platform Dominance
Search Begins on
E-Commerce Platforms
Source: iResearch
57%
25%
4%
4%
1%
1% 1% 7%
Others
2016
B2C
China Market Characteristics
Search &
Ad Driven
Social
Driven
Source: Boston Consulting Group
China Market Characteristics
Shopping as Entertainment Content, Content, Content
Product Content – More Info, More Photos, Videos, Sales History,
Customer Reviews
Social Content – Short Videos, KOL Posts/Product Reviews/Weibo
or WeChat Campaigns/Social Selling/Live Streams
Seamless Experience Online to Offline, and Along the Entire
Customer Journey
“For the things we have to learn before we can do them, we learn by doing them”
Aristotle