pranjal presentation

8/9/2019 Pranjal Presentation

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Retailers in UK and their

challenges

By Pranjal Karpe


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To understand sustainable development of Retail sector in UK.

Formulating their approach to attain sustainability.

Future scenarioFactors Back ground Implication conclusionIntro

Introduction

Objective


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Brits spends well over a third of its disposable income on shopping.

Health and nutrition to farming to social mobility to globaldevelopment.

The retail sector can play a positive role far beyond its own directinfluence.

This report describes about four radically different possible futuresfor UK retail

Understanding UK retail, focusing particularly on fast movingconsumer goods (FMCG) and food products.

Future scenarioFactorsBackground Implication conclusionIntro

About studies


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Describe robust and credible futures that are relevant andapplicable to the retail sector.

Illuminate the major sustainable development issues for UKretail now and in the future.

Provide tools for the sector as a whole to consider itsfuture, and to test potential new ideas, policies, productsand formats.

Stimulate a progressive and far-sighted response to thechallenges and opportunities of sustainable development,and so accelerate the move to a more sustainable retailsector.


About studies


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Positioning dimensions, or marketing mix, of

retailing industry are:

Store location

Pricing

Services & added-value services

Merchandise & category management

In-store marketing

CRM


Positioning Dimension


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Climate change

CO2 concentrationsextreme weather conditions

Mitigation and adaptation

Decarburizing UK economy

40% cut in the UKs carbon intensity

Energy systems

Prices are already rising - Price RiseDiminishing supplies of conventional oil and gas

Highly centralized electricity grid to Advocates of decentralization.

Resource scarcity

Already need 2.2 hectares of land to support each person

Extinction of some iconic species

Marine fisheries under even greater stress

Demographic change

More diverse -markets for UK retail, and a bigger pool of labour.

Threat of more congestion, more competition for land.

UK aged over 65 is projected to increase from 16% in 2004 to 23% by 2031.

Tesco Silver,with store formats,& products all customised for older people.

Look into the future, what are the factors that will shape the context for UK retail?

Future scenarioFactors Implication conclusionIntro Back ground


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New technology

Nano-technologyMore porwer full computer and wireless internet

Direct link between appliances and retail stores.

Better modified purchasing cart.

Globalisation

Volume of global trade to increase by 240% in 13 years- WTO

Supply chains have lengthened and become more complex

World carbon pricing

Government policy

Transportcongestion intelligent transport systems, road-pricing,higher fuel taxes

Planning - planning for large infrastructure, and with housing

Waste management - public will accept having different, less or even no packaging

Behaviour changes - making possitive change

Changing Lifestylee

lifestyles are shifting in complex ways

Increasing Number of DINKS.

A changing UK economyDisposable income has risen even faster UKs dependency ratio is increasing

Look into the future, what are the factors that will shape the context for UK retail?



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consumers search for authenticity

Product that are more natural, local, healthier and greener

(even if these are sometimes contradictory).

People are searching for a stimulating shopping experience (entertainmentshopping)

People want more information about products where they come from, how they

were put together and so on

People want convenient shopping, to fit in with their busy lives. This has affected

the location and size of stores, opening hours, internet shopping and the types of

product on sale, such as ready meals and semi-scratch meals.

Price is still the primary focus for most people, and the main point

of competition between retailers.

Changes people want



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Contribute to achieving a more sustainable society.

Responding to societal expectation

Future will play an important role in the success of individual

companies.

Sustainability consumers and wider society expect to behandled

Role ofbusiness in Society



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where products come from?

era of food shortages

pressure to re-intensify UK agriculture or organic production

variable component of a products environmental impact

Longer-term relationships with suppliers

fuel cost rises or carbon pricing will reduce emerging economies

The type of products available

rise ofcustomization

specific requirements,

foods with the right nutritional balance

shopping decisions on the basis of brands

Where we buy products

Reduction in packaging material

road-pricing is introduced

online retail spending in the UK grew by 33.4%, to a record 10.9bn.

hyper-local sourcing; or recipe-based ordering

The relationship with consumers increasing amounts of information

People are more challenging and more questioning,

Personalized targeted advertisement is emerging possibility

proliferation of TV channels and the rise of the internet

The structure of the retail sector

prices low-infact food prices have fallen 7% in real terms

impact of the model, particularly on primary producers

calls for regulation to limit market share

Future scenarioFactors Implication conclusionIntro Back groundResponse

What does retail sector wants?


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Scenarios for the future of UK retail !!

Future scenarioFactors Implication conclusionIntro Back ground Response

exploit current uncertainties

scenario 1: my way

scenario 2: sell it to me

scenario 3: from me to you

scenario 4: im in your hands


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Scenario Number

scenario 1: my way


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New products and services

vertical farming

Help convert unused space multi-storey car parks or old

warehouses to food production. Using hydroponics.

Advanced glass technology, renewable energy and climate control,

Production in Living areas.

micro-management of personal energy

Everyone wants to know how much energy theyre using.

carbon theyre emitting

This device gives you instant feedback

solar chargers

This solar charger gives you free energy and transmits it wirelessly to

your personal device.


scenario 1: my way


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A users guide to feral trade In this new book, find out how to source your stuff only from the people you trust

your friends.

Feral trade means buying products that come through friends or friends of friends.Started by an arts collective in 2003 as a social

Online ethical comparators Stuffipedia is an online ethical comparator.

As trust in brands declines,

Much like the boom in price comparison sites

Now product ethics and values sites like the lead of Wikipedia

mobile, take a quick snap ofa bar code or scan of the RFID chip.

packaging that refrigerates Smart packaging refrigerates using a tiny fuel cell that is charged while the product is on

the shelf of a store or warehouse and gradually runs down

a chemical indicator that changes colour when products have gone off or becomecontaminated.51

early warning system As extreme weather

scenario 1: my way




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government diversity

The increase in importance oflocal government and a localized third sector.

Opportunity: to foster local sustainable development

strategies that could be rolled out more widely if proven to be effective at a local

level.

Challenge: to monitor whats going on at a national

Scale, and so demonstrate progress against national sustainability targets; tomaintain common standards across the sector and avoid differences in the

sustainability performance of business.

social cohesion

increases in some geographical or virtual communities, but there is less cohesion

at a national level, and problems of social isolation and exclusion amongcommunities that havent risen

Opportunity: for stores to provide a meeting place

People from different backgrounds, and so boost social capital.

scenario 1: my way

Challenges and opportunities



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Challenge: to serve diverse needs and maintain high sustainability standards

Opportunity: to sell goods with high sustainability

Luxary - sustainable ethics and values

Challenge: to ensure that the whole shopping basket

Not just iconic products - becomes more sustainable,

The overall impact of consumption declines.

Hi-tech products

Technology has advanced rapidly and is used more and more in FMCG.

Opportunity: to use new technologies to reduce impacts.

Challenge: products with embedded technology, such as mini fuel-cells or solar

cells, may be more resource intensive to produce and more difficult to dispose


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Scenario Number

sell it

to me


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Design your own products

Branded specialized local produce

One-stop service shopping

Mail order

Buying sustainability

Diet managerAutomate your shopping and get healthy

Retailer organised transport run in collaboration with

Streetcar.

Branded baby bondsInvest in one of our own-label baby bonds- with lifelong discounts at all

our stores.backed by national government .





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consumption patterns

People are consuming more material goods.

Opportunity: to come up with creative ways to help

national and global policy makers

way of decarbonising products

Challenge: ever-greater pressure on resources;

agriculture has intensified

social inequality

Opportunity: to provide meeting places for people

Challenge: growth of the alternative grey market

threatens revenues.scenario 2: sell it to me




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Product innovation

Opportunity: the huge amount of information about customers

Challenge: there is some loss in efficiency in production

Voluntary codes of conduct

Challenge: big centralized infrastructure is much more

vulnerable to severe climatic or terrorist events

Opportunity: to invest in efficient high-speed shipping

Employment innovation





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Scenario Number

from me

to you


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Peer-to-peer mortgages

Success of Peer-to-peer banking services planning restrictions and implementation of energy efficiency measures and

mortgages

Logistics advisory service

The community farm

Hyper-local products This Google maps application also allows you to track local food for sale.

Local/regional goods exchange

resale or exchange both online or offline. ction.

Sell your surplus food

The UGrow service allows you to sell your home and community grownproduce to wider

Hemp

Hemp is an amazingly resilient plant that requires low levels of maintenance

and has a minimal environmental impact.


new products and services



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efficiency of scale

Markets and supply chains are increasingly diverse, and

Opportunity: to increase the proportion of food produced

locally; to put in place ways of monitoring distributed consumption and

reconfiguring infrastructure for flexibility of use.

Challenge: to deliver required efficiencies; to ensure that

existing infrastructure, such as machinery on factory farms, big warehouses and

distribution centres, is not under-utilised.

consumerism

Having less disposable income

pursue fulfilment and wellbeing through means other than material consumption.

Opportunity: to sell consumers services,

Challenge: for retail companies to maintain profitability in a contracting

sector,





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Appropriate use of technology

Opportunity: people want tools to achieve positive sustainable outcomes by themselves, rather than rely on large actors to do it for them.

Challenge: the lack of a shared view on sustainability

priorities makes it hard for either government or business to plan one size fits all solutions

from the centre.

Cooperatives

People prefer to develop solutions themselves, rather than rely on big business to do it forthem.

Diversity

Opportunity: the supply system overall is more flexible and resilient; greater diversity in

production

Challenge: to ensure that local supply chains to work efficiently.

Economy

People are spending less, and are less willing to pay for convenience and branded luxury, yet

demands for ethical standards and transparency are higher than ever before.

Opportunity: the rise of an informal economy with large

numbers of individual entrepreneurs who use the internet to tap into very specific markets.

Challenge: to marry ethics with value for money.





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Scenario Number

im in your

hands


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retailer leased equipment

cradle to grave

Sign up at birth and get an extra discount.

cook no more

Why buy ingredients and cook when you can buy

well cook up anything you like from the store and deliver within the hour. medicines in foods

Dispense with pharmacy prescriptions.

a clean floor

premium Scottish Kiwis

From the Great Glen, kiwi fruit modified to thrive in the Highland climate.

benefits collection

Register with us to collect all of your state benefits instore.

tesco village

Affordable, high quality housing in a new, eco-friendly community with everything you

need for a happy family life on your doorstep, supplied by the company you trust.scenario 4: im in your hands

new products and services



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more efficient systems

vertically and horizontally across the sector, and a culture of

collaboration prevails.

Opportunity: to reduce the overall environmental impact

Challenge: efficiencies dont make enough money-

new growth opportunities.

exposure to risk and unpredictable events

The sector as a whole has centralised,

small number of companies and government departments.

Opportunity: to drive through efficiencies.

Challenge: to support innovative new ideas which drive

to foster the commercialsuccess of new entrepreneurs; to

respond quickly to changing circumstances





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over-regulation

Opportunity: to develop commercially successful

Challenge: some companies may relocate, despite the threat of trade barriers and reputational damage.

global exposure

There is a renewed focus on national priorities, including food security.

Opportunity: to develop self-sufficiency in agriculture

Challenge: to provide low-cost





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1. big or small?

2. growing sales while reducing material impact

3. choice and choice editing4. customisation and efficiency

5. high standards and good value

6. access and automated efficiency

Sustainable development



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7. competition and collaboration Transport co-ordination and sharing haulage: Consumer communication: making

sure that retail

Monitoring and reporting: agreeing key metrics with

Supply chain impacts: life-cycle analysis to identify

Retail Futures: implications for sustainable development

Supply chain relationships: for positive sustainable

Supporting localities: looking for ways to give

Waste and packaging: agreeing universal packaging

Choice editing the industry: agreeing on the things..

8. a virtuous circle of trust




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Developing sustainable products

1. Striving to create low cost, high value, and highly sustainable products for

everyone, not just an affluent or aware niche.

2. Editing consumer product choice to remove the sustainability villains,

working with government to create a level playing field in key product

areas, and helping customers understand the process as introducing anew and better freedom of choice.

Engaging consumers

3. Empowering consumers with the information they need to make better,

more sustainable decisions, creating clear and consistent labelling on how

products are made, whats in them, and how to deal with their associatedwaste.

4. Incentivizing consumers to make more sustainable choices, and ensuring all

marketing, rewards and promotions support, rather than subvert,

sustainability goals and policies.


Future scenarioFactors Implication ConclusionIntro Back ground Response

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Sorting out direct impacts

5. Creating industry-wide minimum standards based on key metrics with commonboundaries that all retailers set targets against, and report on. But doing so in a

way that leaves enough space for leadership and innovation.

6. Developing a flexible approach to energy, water, waste and transport infrastructure.

Supporting scale where it matters, and investing in distributed systems where

appropriate.

7. Enabling localized systems to become as, or more, efficient than large scale systems

are now.

Supporting the supply chain

8. Developing a supportive, long-term relationship with suppliers, both small and

large, understanding the key sustainability impacts throughout the value-chain,

and investing in their capacity to implement sustainable solutions.

9. Supporting local supply chains, ensuring local communities continue to benefit

economically and socially.

10. Playing a positive and active development role as part of the global trade with

disadvantaged communities in other countries.



C l i


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Engaging the community

11. Ensuring everyone, including the disadvantaged, has access to services, particularly with the

growth of online retail channels.

12. Being mindful ofthe social role that physical retail spaces provide, and looking to maximise

their wider social benefits by creating and supporting strong links with communities.

Seeing the bigger picture

13. Engaging with government and civil society to help create national and internationalconsensus around issues such as climate change, resource management, and humanitarian

crises.

14. Developing effective collaboration on such key issues, while maintaining enough space to

compete.

Tackling unsustainable consumption15. Maintaining commercial success while reducing overall environmental impact, principally by:

shifting from supplying products to supplying services, including selling services that

reduce the impact of products, such as end-of-life management.

creating value through customisation without the loss of material efficiency: attracting

consumers through new forms of standardised goods; building on experiences or association




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Thank you!!

Future cant be predicted

I thi F t !!!

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