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TRANSCRIPT
SMAR
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Networking Catalyst
INTERNATIONAL TCG RETAIL SUMMIT SMARTREPORT / Special Issue N° 4 / January 2018
TECHNICAL CONSUMER GOODS
THE INTERNATIONAL THINK TANK AND LEADING NETWORK PLATFORM
FOR ELECTRICAL RETAIL
SPECIAL EDITION - 5TH INTERNATIONAL TCG RETAIL SUMMITINNOVATE TO ACCELERATE
10-12 APRIL 2018, BERLIN
SMAR
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04 INTRODUCTION 04 Welcome to the Show
Chris Buecker, Chairman, International TCG Retail Summit
05 PROGRAMME 05 Added Value 06 Speakers & Panelists 2018
08 TRENDS & FIGURES 08 Innovate to Accelerate
Market insights and retail innovation - GfK
10 EXCLUSIVE INTERVIEW 10 Drones, Autonomous Vehicles and Automated Warehouses
Chen Zhang, CTO, JD.com
13 BACK TO THE FUTURE 13 Klaus-Peter Voigt, CPO, MediaMarktSaturn Retail Group 14 Hans Carpels, President, Euronics International Jaan Ivar Semlitsch, CEO, Elkjop Nordic 15 Enrique Martinez, Chief Executive Officer,
Groupe Fnac Darty Karl Trautmann, Member of the Management Board,
ElectronicPartner
17 CONFERENCES 17 Know the Face…
Kai Herzberger, Director DACH and EMEA for eCommerce and Transformational Retail, Facebook
18 Integrating Disruptive Technology at Point of Sale Markus Tuschl, Global Director of Digital Retail, GfK
19 One Group – Two Brands Enrique Martinez, Chief Executive Officer, Groupe Fnac Darty
20 Towards Robots, Virtual Reality and In-Store Navigation Martin Wild, Chief Digital Officer, MediaMarktSaturn
Retail Group 21 Talking Turkey
Bülent Gürcan, CEO, Teknosa 22 Riding the e-Commerce Wave in Italy
Pietro Scott Jovane, CEO, ePRICE 23 The Amazon Experience
Miya Knights, Head of Global Retail Technology practice, Planet Retail RNG
24 A Strategic Player in a World of Images Alessandro Stanzani, Executive Vice President of Consumer Imaging for Canon Europe
25 Enhancing Brand-Retailer Digital Collaboration at the Shelf Thierry Gadou, Group Chairman & CEO, SES-imagotag
26 Big Data: The “How To” Guide Markus Hepp, Partner & Managing Director, The Boston Consulting Group
27 INNOVATION ZONE 27 The Connected Experience
Johannes Troeger, Head of Sales & Chief Evangelist, AMERIA
28 Better Understanding Your Customer with Geo Analytics Stephan Fetsch, Head of Retail in Germany, KPMG AG
Wirtschaftsprüfungsgesellschaft 29 Retail Dominates Over Online Brand Stores
Markus Röse, Managing Director, Commerce Connector Now You See Me…
Rik Esselink, Managing Director Europe, Ring
30 STRATEGIC PARTNERS 31 A Strategic Partner with a Solid Mission
Dan Arler, Head of Electrolux Major Appliances Europe, Middle East and Africa
32 Major Growth for SEB – Organically, and Through Acquisitions Cyril Buxtorf, Executive Vice-President EMEA, Groupe SEB
33 Success Inside Stuart Blanch, EMEA Retail Sales Strategy Director, Intel Corporation
34 Tech Data: New Organisation, New Ideas, New Solutions Stephen Nolan, Senior Vice President, Endpoint Solutions, Europe, Tech Data
Welcome to the Leading International Think Tank and Network Platform for Electrical Retail
It’s that time of the year again; the only time during the year when Presidents, CEOs, Managing Directors, Board Members, Heads of Procurement, Sales Directors, Key Account Directors, Marketing Directors, Chief Digital Officers, Head of ecommerce & omnichannel, Chief Customer Officers, Head of Retail Operations, Heads of In-Store-Experience and other senior executives in the electrical retail sector, both national and international, get to meet outside the usual exhibition dates. Five years in, this has become the most exclusive networking circle within the TCG sector on an international scale, where participants are able to make invaluable connections and seize new business opportunities.
The truly international vocation of this event takes on all its shine with its renaming – no longer European, but now International: The International TCG Retail Summit. This vocation has in fact
always been the case, and it’s tagging as “international” is just a formality!
Visionary leadership: This year more than ever, participants to the summit will be inspired by high quality presentations full of insights and information, presented by experts in direct presentations or panel discussions.
A key theme this year is the fact that “disruption is the new normal”. Participants will find answers relevant to them and the challenges they face in electrical retail, becoming part of the most exclusive networking circle in the international electrical retail sector with hundreds of decision makers.
At this year’s event, you’ll be inspired by the newest technological tools and retail services and will meet the most creative entrepreneurs who will share new ideas impacting the TCG retail and associated industry.
It’s truly THE not-to-be-missed event!
International TCG Retail Summit SMARTreport Special Issue N° 4 / January 2018
Richard [email protected]: +33 (0) 4 42 77 46 00
CONTENT
FOREWORD
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Your Business Networking Catalyst
4 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
INTRODUCTION
We are witnessing unprecedented change across the retail industry as retailers race to transform their often long-established business models to serve the lifestyles and demands of today’s cross-channel and technology-savvy consumers. More than ever, innovation and speed are the key success factors for electrical retailers, brands and service providers. That is why the overarching theme of the upcoming 5th International TCG Retail Summit will be “INNOVATE TO ACCELERATE”.
DISRUPTIVE TECHNOLOGIES ARRIVE ON THE RETAIL SHOP FLOOR Digitalisation is changing everything: the way we communicate, the way we work, and also the way we do our shopping. Previously, customers simply went into a store and bought what they wanted there and then. These days, the majority of consumers find it natural to do their shopping via various channels. As a result, the role of bricks-and-mortar retail is changing fundamentally. Stationary retail now needs above all to serve customers’ emotional needs. After all, those who prefer visiting a bricks-and-mortar store to the convenience of internet shopping clearly also have certain expectations: they want to touch products and try them out for themselves. Similarly, the POS of the future should be “a place of
inspiration, entertainment and experience.”It is likely to become a showroom offering customers personal advice and increasingly also new worlds of discovery. And this is where disruptive technologies at POS come in – by way of service for customers and as a direct link between e-commerce and stationary retail. There are certainly a lot of technologies out there which are nice but not really relevant. Virtual reality seems to become more applicable now. Or think of Smart Shelves - using near-field communication (NFC), customers’ smartphones contact these electronic price tags directly – and additional information (e.g. product comparisons, consumer reviews) is then displayed on their smartphones.
KEY SUMMIT PARTNERSWith Electrolux, Groupe SEB, Intel, Tech Data and GfK, for many years we have already had global brands as our strategic partners, of which we are extremely proud. By continuously supporting the TCG Summit, they demonstrate leadership and vision and make this important annual senior management platform possible. Each of them belong to the Champions League in their own category. For the 5th TCG summit we are very pleased that other leaders have joined a close partnership with us – Canon and SES-imagotag.
Welcome to the Show A word from International TCG Summit Chairman Chris Buecker
Chris BueckerChairman, International TCG Retail Summit
With its head office based in Zug, Switzerland, Retail Plus GmbH is an international service company with a clear focus on the TCG retail sector offered by three brands – the International TCG Retail Summit, Buecker&Partners and retailplus.
The International TCG Retail Summit is the leading international retail conference for electrical retail and industry.
Buecker&Partners specialises in executive search for senior management. www.bueckerandpartners.com
retailplus offers customer-made travel programs to best practice electrical retailers and stores throughout Europe and beyond. www.retail-plus.org
RETAIL PLUS – THE SUMMIT, AND SO MUCH MORE…
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 5
PROGRAMME
Learn from the latest successful transformation models, new tools and services and how you can benefit from this shared knowledge at the International TCG Retail Summit in Berlin.
MORE THAN A CONFERENCE CONCEPTThe International TCG Retail Summit combines today´s retail and future, established values and innovation, best practice and analysis.The focus is on interaction. High level presentations will be actively
analyzed by domain experts: the guest speakers will face the antithesis of senior management from international leading retailers and industry captains in direct discussion or panel format.
See real world examples of how technology is disrupting and changing the way that shoppers shop and retailers retail by visiting the innovation zone. The innovation zone will showcase the latest in technological innovations that both disrupt the way we retail today and power the retail experience of the future.
Added Value
10th April 2018
07:00 pm PRE-SUMMIT WELCOME RECEPTION
DAY 1 11th April 2018
08:00 am REGISTRATION AND NETWORKING SESSION OPENS
09:30 am CONFERENCE SESSIONS, DAY 1
Welcome by Chris Buecker, Chairman of the International TCG Retail Summit
Conference host´s opening remarks
How will electrical retail integrate disruptive technology at the point of sale? Markus Tuschl, Global Director Digital Retail, GfK
What TCG stakeholders should learn from Amazon Miya Knights, Head of Global Retail Technology practice, PlanetRetail RNG
In conversation with Enrique Martinez, CEO, Fnac Darty Group
Project examples and best practices on creating superior value through advanced analytics led transformations in retail Markus Hepp, Partner & Managing Director, The Boston Consulting Group and Javier Anta Callersten, Partner & Managing Director, The Boston Consulting Group
How JD.com is redefining retail through technology Chen Zhang, Chief Technology Officer, JD.com
Enhancing Brand-Retailer digital collaboration at the shelf Thierry Gadou, President & CEO, SES-imagotag SA
06:00 pm END OF CONFERENCE, DAY 107:00 pm DINNER RECEPTION08:00 pm EXCLUSIVE NETWORKING DINNER
DAY 2 12th April 2018
08:30 am CONFERENCE SESSIONS, DAY 2
Conference host’s opening remarks
“Voice of the industry” speech 2018: Collaborative data management is the key to partnership success for retailers and manufactures Alessandro Stanzani, Executive Vice President of Consumer Imaging Group, Canon Europe
ePRICE: From e-Commerce to e-Service. How to build a distinctive position in the online market through a service driven strategy Pietro Scott Jovane, CEO, ePRICE, Italy
The future of commerce Kai Herzberger, Director DACH & EMEA, eCommerce & Transformational Retail, Facebook
Innovate today, or be gone tomorrow! Martin Wild, Chief Digital Officer, MediaMarktSaturn Retail Group
Leading customer-centric transformation in retail Bülent Gürcan, CEO, TeknoSA, Turkey
04:00 pm END OF CONFERENCE
6 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
PROGRAMME
Speakers & Panelists 2018
Javier Anta CallerstenPartner & Managing Director, The Boston Consulting Group
Dan ArlerCEO Major Appliances EMEA, Electrolux
Thomas BaaderExecutive Vice President, BSH Hausgeräte GmbH
Stuart BlanchEMEA Retail Sales Strategy Director, Intel
Chris BueckerChairman, International TCG Retail Summit
Cyril BuxtorfExecutive Vice President EMEA, Groupe SEB
Hans CarpelsPresident, Euronics International
Declan CurryConference Host
Turan ErdoganCEO, Vestel
Enrique FernandezCEO, M.video, Russia
Emmanuel Fromont Corporate VP, President EMEA, Acer
Thierry Gadou CEO, SES-imagotag
Bulent Gurcan CEO, Teknosa, Turkey
Markus Hepp Partner & Managing Director, The Boston Consulting Group
Kai Herzberger Director eCommerce & Transformational Retail EMEA, Facebook
Helmar Hipp CEO, Cyberport
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 7
Henk De Jong Chief of International Markets, Executive Vice President and Member of the Executive Committee, Royal Philips
Nilesh Khalkho CEO, Sharaf DG, UAE
Miya Knights Head of Global Retail Technology Practice, Planet Retail RNG
Roberto Larocca Global Customer & Channel Mgmt. Director, Vodafone
David Lowes Chief Marketing Officer, Samsung Europe
Enrique Martinez CEO, Groupe FNAC DARTY
Stephen Nolan Senior Vice President EMEA, Tech Data
John Olsen Managing Director, Euronics International
Lucas Perraudin General Manager, hp.com & Retail Sales EMEA, HP International
Pietro Scott Jovane CEO, ePRICE
Jaan Ivar Semlitsch CEO, Elkjop Nordic
Alessandro Stanzani Executive Vice President of Consumer Imaging Group, Canon Europe
Karl Trautmann Member of the Management Board, ElectronicPartner
Markus Tuschl Global Director Digital Retail, GfK
Klaus Peter Voigt Chief Procurement Officer, MediaMarktSaturn Retail Group
Martin Wild Chief Digital Officer, MediaMarktSaturn Retail Group
Chen Zhang Chief Technology Officer, JD.com
8 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
Innovate to Accelerate Market insights and retail innovation - GfK
TRENDS & FIGURES
The Technical Consumer Goods (TCGs) market in Western Europe generated €148 bn from Q1-Q3 2017, which is a slight decline of 0.6% when compared to the same period in 2016. If we look specifically at Q3 however, we see the market is actually returning to growth (+1.8%).The positive momentum in the third quarter mainly stems from the Information Technology (IT) sector, but Small Domestic Appliance (SDA) and Major Domestic Appliance (MDA) products were also responsible for the upturn. Additionally, after a year-to-date decline, the Consumer Electronics sector returned to growth in Q3 and demonstrated the most positive change of all sectors (+7.8 percentage points).It’s within this market environment that internet sales continue to grow, increasing their share to 23.6% from Q1-Q3 2017 (compared to 22.5% in the same period in 2016). The highest online penetration comes from the IT sector, in which internet sales account for more than 36% in value terms, and is closely followed by Photo (32%). Meanwhile, SDA and MDA recorded
the strongest online growth, with Consumer Electronics showing the lowest.Looking at individual countries in Europe over a longer period, we see there are some clear differences in internet sales dynamics. In the past 3 years, for example, the strongest sales share increase happened in the Netherlands (+7 percentage points to 35%), which can be considered disruptive.As internet sales grow, the role of online and offline channels in the retail experience is changing. Physical stores still account for over 75% of the activity for TCGs, but shoppers are now more sophisticated and demand stronger integration of multi-channel concepts for a seamless purchase journey.
INNOVATE TO ACCELERATETechnology has revolutionised shopping, not only through the impact of smartphones and mobile devices, but also through advancements at the PoS. So, understanding and reacting to what’s transforming shopper behaviour, what’s accelerating this trend and
how this is changing the retail landscape is vital for future retail success.Our 2017 Retail Trend Monitor survey identified the “convenience of the shopping experience” as the top driver of retail development globally.However, convenience also underpins other drivers of change and innovations in retail. Consumers love to shop where and when they want, using the device or channel of their choosing. Convenience is anything that makes consumers’ lives easier. So, the concept of convenience isn’t fixed but evolving. Soon, it will be connected with transparency, seamless multi-channel retail and personalised marketing.Successful positioning on “convenience” will require investment in big data analytics – on top of infrastructure investments like mobile apps and in-store technology.From a consumer perspective, we know they want more things to make their shopping experience easier. Our FutureBuy study 2017 reveals that 45% of consumers globally believe their “smartphone to be their most important shopping tool” (about 30%
One in five euros is spent online*
23.6% 76.4% 2017
2011 13.7% 2012 15.2% 2013 17.4% 2014 19.4% 2015 21.1% 2016 23.1%
75% of all TCG online sales tracked by GfK take place in five countries
30%Germany
25%others (11 countries)
21%Great Britain
10%France
7%Russia
7%The Netherlands
ONLINE VS. TRADITIONAL SALES: KEY FACTS FOR TECHNICAL CONSUMER GOODS (TCG) IN EUROPE
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 9
in Europe and about 60% in APAC and META). In 2015, the figure was only 34% globally. 44% stated that they like it when a website tracks their visits and provides recommendations, and 35% consumers like it when a retailer contacts them on a smartphone whilst they are out shopping.For retailers, there is a clear need to deliver the right message at the right time to inspire a purchase decision whilst offering the convenient experience consumers desire.
TECHNOLOGICAL INNOVATION DRIVING THE CHANGEThe need to better understand consumers in order to deliver a truly personalized experience and a tailored selection of goods and services means that big data analytics will remain a focus for retailers investing in technology. As part of these investments, retailers will, as identified by those who took part in our Retail Trend Monitor 2017, need to demonstrate the safety of their data to consumers if they are to build their trust.There will also be opportunities to take advantage of currently underexploited technologies. Virtual reality is an exciting area of investment and it is expected to have a significant impact on shopping and in-store experiences in the future.Consumers are becoming increasingly ready to accept this type of technology. In our FutureBuy study 2017, 48% of consumers stated they are “always amongst the first to try new ways of shopping or shopping experiences” (after 41% in 2015), whilst 44% would “be more likely to visit a retail store that offers VR experiences” (after 41% one year ago).
A CHANGING RETAIL LANDSCAPEThe changing shopper and new technologies will lead to a changing retail landscape. In the future, pure formats will be less successful and retailers will need to develop their cross-channel capabilities.We’ll also see the role of the physical store change as people search for convenience and ways to save time when shopping. Multi-channel formats offering purchase flexibility and delivery options will have continued success while shopping tailored for mobile devices will continue to grow. Also, online marketplaces will remain a successful format that delivers on shoppers’ expectations.Now is the time for retailers to make bold decisions, particularly when it comes to technology investments. This doesn’t come without risk – but the risk of missing out and falling behind is now bigger than ever.
To get more information on this topics and figures for other periods, please contact: Markus Tuschl at [email protected]
Source: GfK Point of Sales Tracking, January to September 2017. If not indicated otherwise, all figures based on 18 countries and on sales value %** Internet sales share Europe16 (AT, BE, CH, CZ, DE, ES, FR, GB, HU, IT, NL, PL, PT, RU, SK, UA)
Multifunctional technical goods: the fastest growing product area, up 14.4%
-6.9
-4.4 -4.8
0.8
-5.2
0.85.2 2.41.4 6.1 5.9 14.4 6.4 7.1 12.2 7.7
Consumer electronics
(CE)
Information technology
(IT)
Office equipment
(OE)
Photo(PH)
Telecom(TC)
Small domestic
appliances(SDA)
Major domestic
appliances (MDA)
Multifunctional technical goods
(MTG)
Jan to Sept 2016 compared with Jan to Sep 2017
Share of Internet sales varies widely across Europe
Internet sales share of IT products is particularly high – consumers spend nearly 40% online
57.7 42.3Czech Republic
66.9 33.1Slovakia
64.9 35.1The Netherlands
71.2 28.8Germany
68.1 31.9Great Britain
72.0 28.0Switzerland
75.1 24.9Denmark
76.0 24.0Ukraine
76.8 23.2Austria
89.3 10.7Italy
80.6 19.4France
81.0 19.0Russia
80.0 20.0Hungary
81.8 18.2Finland
81.9 18.1Poland
86.1 13.9Spain
85.1 14.9Belgium
95.2 4.8Portugal
Traditional sales
Internet salesSales value %
Traditional sales
Internet sales
Photo
32.3
67.7
Small domestic appliances
24.8
75.2
Multifonctional technical goods
22.3
77.7
Major domestic appliances
19.9
80.1
Telecom
19.3
80.7
Information technology
36.2
63.8
Consumer electronics
19.3
80.7
Office equipment
25.2
74.8
10 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
EXCLUSIVE INTERVIEW
Chen Zhang is JD.com’s CTO, overseeing the company's R&D capabilities with a focus on addressing the ecommerce industry’s biggest technological challenges. At JD.com, he also leads the company's programmes to develop innovative and cutting-edge technologies, its external collaboration programs, and its development of international talent. The company recently started testing robotic delivery services and building drone delivery airports, as well as operating driverless delivery by unveiling its first autonomous truck, so we asked Mr Chen to tell us more.
We now have daily operations for drone delivery in several locations in China. We use drone delivery to lower logistics costs and increase efficiency in areas where complex terrain and poor infrastructure make “last mile” logistics challenging.
JD.com is also building out fully-automated warehouses, including the first fully automated business-to-consumer warehouse in the world, which has already begun operations in Shanghai. Meanwhile, we are leveraging AI, deep learning and image recognition technologies to develop smart logistics solutions.
We’ve been testing autonomous delivery vehicles in a few university campuses in China. In the long term we expect these vehicles to make urban deliveries in locations like corporate campuses and office buildings.Moreover, we are researching autonomous light electric vans with industrial partners for the delivery of goods from JD’s distribution centres to delivery stations in the future.
How is big data helping put your company compete in the market?JD.com’s advanced big data analytics are increasingly providing brands and
consumers an enhanced shopping experience.
For example, our predictive system uses big data analysis to enable us to dispatch goods more effectively – using this, we delivered an iPhone to a consumer 10 minutes after it went on sale. Our dynamic pricing initiatives maximise efficiency through sophisticated algorithms that provide real-time pricing for 4 million products stored in JD warehouses.
JD.com has joined forces with Tencent, Baidu and other internet giants in China. The partnerships give JD the most complete data set of user habits of anyone in China’s Internet space – extending JD.com’s leadership in offering brands unrivalled insights to help retailers reach the right target consumers quickly and effectively, providing outstanding ROI.
Please tell us a little more about your presentation at the TCG summit this year.We have cultivated a reputation that is synonymous with high standards of
Drones, Autonomous Vehicles and Automated Warehouses Not the future; today – in China – with JD.com
Chen ZhangCTO, JD.com
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 11
quality, and deserving of our customers’ expectations and trust. We are also working with the most advanced technologies, across all industries to build the future of
retail. I’ll introduce how JD.com is leveraging AI, big data, robotics, drones, and other advanced technologies for logistics, supply chain and marketing innovations to set the global standard for e-commerce customer experience.
What do you see as being the key trends in the evolution of consumer demand in China?The Chinese e-commerce landscape is already one of the most developed in the world, but continues to see tremendous changes. About 18% of retail takes place online in China, about double that of the US. By 2020, Chinese online purchases are expected to exceed those of the US, UK, France, Germany and Japan combined.
China is a mobile-first commerce market and Chinese consumers look for the best consumer experience. On JD.com, about 80% of our orders come from mobile and for our users in many parts of China, same-day delivery is seen as a standard.
Another key evolution is that Chinese consumers are becoming more and more
discerning. They look for quality products and therefore, the demand for imported goods is rising sharply. The rapid growth of our cross-border e-commerce platform JD
Worldwide is an illustration of this trend.What are the key factors of differentiation between JD.com and your main competitors in the market?Unlike pure-marketplace models, we offer a retail model which gains efficiencies from scale. Our nationwide delivery network offers same-day delivery standard, which others in the market cannot compete with.
Through our partnership with Tencent, we have also access to 950+ million active WeChat users, providing us a tremendously powerful channel for reaching new customers and helping brands build name recognition.
Unfortunately, counterfeit products are all too common in the Chinese e-commerce system. Our unique zero-tolerance policy toward counterfeits and our tight control over the fulfilment process and logistics system ensures that we can guarantee our customers authentic products. E-commerce supply chains have become so high-tech and efficient that we believe they will disrupt industries beyond our own. Because of our superior network
and technology, we are also increasingly offering our infrastructure and capabilities to companies and industries that aren’t on JD.com, something we call “retail as a service.”
Thoughts on omni-channel?Today, reaching Chinese customers means for brands developing an omni-channel strategy using online social media channels, CRM & omni channel strategies.
JD.com has been a global leader in the shift to omnichannel.
For instance, we have jointly deployed with Walmart a supply chain and backend system to integrate inventory management. When a customer places an order on JD.com, our order management system will determine whether a JD.com warehouse or Walmart store is closer to the customer, and dispatch a courier accordingly.
We also launched JD-Tencent Retail Marketing Solution. We co-develop a secure database of shopping data that will give brands the ability to better understand user preferences and target potential consumers, regardless of whether consumers choose to shop online or in-store.
We are also rolling out offline “JD Retail Experience Shops”, where customers can touch and feel products sourced from JD.com. JD’s technology, powered by predictive analytics using big data, will keep offline stores stocked with recommended categories and suggested amounts of products, while localizing the selection depending on consumer buying preferences in each location.
Drones, Autonomous Vehicles and Automated Warehouses Not the future; today – in China – with JD.com
WE USE DRONE DELIVERY TO LOWER LOGISTICS COSTS AND INCREASE EFFICIENCY
IN AREAS WHERE COMPLEX TERRAIN AND POOR INFRASTRUCTURE MAKE “LAST MILE”
LOGISTICS CHALLENGING.
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 13
BACK TO THE FUTURE
Back to the FutureOr… “Roads? Where we’re going we don’t need roads!”
The “Back to the Future” films gave us a lot of laughs
about young Marty McFly discovering different
future worlds, some more bizarre than others, whose
outcomes depended on past and current actions. While
it’s doubtful one’s current actions in the TCG retail
sector will have quite such results, what IS of course
important is to attempt to form an idea of what the
future scenario will be in order to better plan resource
use and the road map leading to the “right destination”.
In the next pages, we have asked some of the key
players present at this year’s TCG Summit to give us
their thoughts on where they see TCG retail in five to
ten years’ time.
It is evident that the development of omnichannel
strategies and new ways of presenting products
in-store will be key elements in future strategies, but
where do the stumbling blocks lie and what will be
the right balance in your territory or your particular
situation?
Time circuit's on. Flux capacitor, fluxing. Engine is
running. And the future rest is just around the corner!
Klaus-Peter VoigtCPO, MediaMarktSaturn Retail Group
The Future of Multichannel Sergio Klaus Peter Voigt - Chief Procurement Officer –
MediaMarktSaturn explains where he sees the future of
multichannel sales heading.
Multichannel is more than just a sales model for us. We
want to support customers as extensively as possible in
their everyday lives in the digital world. Therefore, we try to
make looking for products and purchasing them – and hence
the customer journey – as easy as possible in all situations,
whether by smartphone when they’re out and about, at the
computer in the office, in one of our stores or at home. We
think this type of retail reflects the way our customers typically
act in many situations. Think about ordering a taxi. Customers
decide whether to use an app to call a taxi or simply flag one
down on the street depending on their current situation. It’s
the same with shopping. We’re available to our customers
on all channels – and they obviously approve, as about 10%
of our sales take place online. Moreover, about half those
customers visit one of our stores to collect their orders.
What do you imagine the balance between online and
bricks & mortar retail will be in five years’ time, and what
will be the key to sales success?
The traditional divide between bricks & mortar retail and online
sales doesn’t apply to us. On the contrary, we’re convinced
that the two models complement each other superbly. Online
retail will continue to increase over the next few years.
14 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
A Bright Future for Omnichannel We asked Jaan Ivar Semlitsch, CEO, Elkjop Nordic
where he sees the future of omnichannel sales heading.
I see a bright future, as long as the omnichannel retailers have
a digital approach to everything they do, and focus on the
customers and the growth. In addition, they have to improve
online and in-store experience.
What do you imagine the balance between online and
bricks & mortar retail will be in five years’ time, and what
will be the keys to sales success?
I believe we will see consolidation in the market and that the
big online players and the big bricks & mortar players will
take a bigger share. The medium and smaller bricks & mortar
players will fall out due to lack of scale, while some smaller
pure players will be there fulfilling a niche value proposition.
What about mergers and acquisitions?
Will we see more “big pervasive” players or a multiplication
of smaller ones? Yes, I think we will see M&A moves and
also across industries. Amazon’s latest M&A in the US is an
example of that. Since marketplaces are emerging, I think we
will also see consolidation across industries. Some players
will just disappear though, and won’t be attractive M&A
candidates.
Jaan Ivar SemlitschCEO, Elkjop Nordic
BACK TO THE FUTURE
Hans Carpels, President, Euronics International, Gazes into the Crystal Ball We asked Mr Carpels where he sees the future of omnichannel sales heading. Difficult to say. Companies with existing brick & mortar stores are limiting their floor-space in order to optimise the choice of products and their inventory. They channel sales through their online operation of the long tail. On the other hand, most of them invest in a better customer experience in the store itself, creating more space and a friendlier approach. It is foreseeable that the same trend (enhanced customer experience) will be offered in the online offer as well. Some “pure players” are already going that road.
I expect a certain influence to come from stakeholders who object to the big impact on transportation, environment and mobility from having every single package delivered, let alone remarks of physical stores vanishing from the city centre. Much will depend of the quality of distribution and the embrace by the classical distribution channels of the perfect omnichannel experience. Will a shop floor staff member accept without any negative remark that a consumer comes into a store and drops off the product which was purchased online? An acceptable guess – and a safe one – would be that those countries which are still below the 20% online penetration will grow to that level rapidly.
Hans CarpelsPresident, Euronics International
BACK TO THE FUTURE
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 15
The Lines are Blurring Everyone is asking the same question: Where are omnichannel
sales heading? Karl Trautmann, member of the management
board, ElectronicPartner gives us his point of view.
Regardless of whether stationary retail sector or simple online
retailer, the two are moving towards each other and developing
omnichannel concepts. Even for customers, there are no
noticeable differences and maybe that’s good. Thus, we reach
the customer immediately and everywhere, in fact with the same
service level. We believe there is an enormous growth potential.
What do you imagine the balance between online and bricks
& mortar retail will be in five years’ time, and what will be the
key to sales success?
One of the key success factors is the rapid or immediate availability
of products. Our existing store network is a great advantage over
online-pure-players, as they have to compensate by cost-intensive
same day delivery. Here, we are one step ahead, and inspire our
customers with an optimum interaction.
What about mergers and acquisitions? Will we see more “big
pervasive” players or a multiplication of smaller ones?
Particularly in niche segments, some small retailers operate very
quickly and are very customer-focused. Probably these retailers
will cooperate with major players or even will be acquired in future.
However, the small retailers whose concept can be easily replaced
will have less market opportunities over the long-term.
Karl TrautmannMember of the management board, ElectronicPartner
Enrique Martinez, CEO of Groupe Fnac Darty on the Future of TCG Retail We asked Mr Martinez how he imagines the balance
between online and bricks & mortar retail will be in five
years’ time, and what he thinks will be the key to sales
success.
Within the model that we advocate, online sales will continue
to grow, hand in hand with physical retail. The key for retailers
will be to create the conditions of a seamless customer
experience across every channel. It is a virtuous circle: each
time we open a new Fnac or Darty store, we observe that over
50% of the click-and-collect sales in that store are generated
by customers that had never bought on fnac.com before.
What about mergers and acquisitions? Will we see more
“big pervasive” players or a multiplication of smaller ones?
Several consolidation moves have taken place in the past
years, which created a number of European-sized companies.
Mergers and acquisitions are positive when they bring together
complementary companies like Fnac and Darty, but they
are not an end in themselves. There are other options for a
company to increase its competitiveness. At Fnac Darty, for
instance, we firmly believe that strong partnerships with best-
in-class partners are a very smart and effective way to gain a
substantial competitive advantage.
Enrique MartinezChief Executive Officer, Groupe Fnac Darty
CONFERENCES
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 17
Ka i He rzbe rge r i s the Director DACH and EMEA f o r e C o m m e r c e a n d Transformational Retai l at Facebook. With his team across Germany and Europe he is responsible for all eCommerce and transformational retail partners that are growing their business and business value via Facebook. We asked him to tell us more about his work…
Central to this job is consulting our partners in relation to their transformation into the new mobile and video era, which the industry is undergoing at the moment. Another important area of our work in cooperation with our partners is establishing people-based measurements across all marketing channels. We are investing a lot to drive strong business outcomes for our partners and clients. I am excited about being at the forefront of what we call the “Digital Revolution” within the market, mainly caused by the mobile shift. People live their lives on mobile, and especially mobile video is getting more and more important. This changes how people discover products, as well as how they interact with companies, products and the things they love.
How is the role of Facebook changing when it comes to the purchasing public?Facebook's mission is to bring the world closer together and that includes connecting people and businesses.
Businesses can build and empower
communities, not only across Facebook
but also via Instagram, the Audience
Network and Messenger. All of these
platforms allow them to authentically
connect with the right people at the right
time, to build communities around their
mission and products. Today there are
more than 70 million business pages on
Facebook and over 15 million Instagram
business profiles. But there are still
more businesses that start their digital
transformation and it is our goal to connect
them with the people and community they
care about.
What will be the “key take away” from
your presentation on the future of
commerce at the TCG Summit?
Advertisers should not be afraid to embrace
mobile. The shift in consumer behaviour
that is connected with this new channel
is similar to when TV took the majority of
time spent from radio in the 1960s. It is
something we name as top priority when
we talk about marketing today.
On mobile, people discover and interact
with products, services and businesses.
It is the entry point and in most cases
also the end point of a customer journey,
and an important business value driver.
And: Mobile is changing the way of how
marketing works today. It is not about
looking at online vs. offline anymore, but
on how online activities induce offline
actions like sales and vice versa.
Know the Face… How Facebook works with eCommerce and transformational retail partners
FACEBOOK'S MISSION IS TO BRING THE WORLD CLOSER TOGETHER AND THAT INCLUDES CONNECTING PEOPLE AND BUSINESSES
Kai HerzbergerDirector DACH and EMEA for eCommerce and Transformational Retail, Facebook
CONFERENCES
18 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
The title of Markus Tuschl’s presentation at the summit is “How will electrical retail integrate disruptive technology at the point of sale?” We asked him how important this concept will be going forward.
Today’s retail landscape is constantly evolving and this is partly being driven by the mobile revolution and changing consumer preferences related to this. European consumers, for example, are seeking out large-screen smartphones for easier online shopping and the level of demand we’re seeing is now beginning to catch up with China, the leading market for these devices. Shoppers’ behaviours and attitudes are also fluctuating and retailers must understand what’s going on in order to respond and identify gaps in the market. With many opportunities requiring significant investment in technology, this is an important time for retailers. There is a real challenge when it comes to figuring out which areas will have the most impact. What kinds of trends will you be covering?The number one driver of change in retail globally, according to almost 90% of the
experts who took part in our 2017 study, is convenience. As this is a very general concept, we analysed what it actually means from a retailer’s perspective and how it can be operationalised in the real world. Convenience, followed by the internet and mobile communication (85% and 84% respectively) are considered the main trends which are impacting developments in today’s retail environment. However, with these trends being relatively obvious, I will also show that the most important insights come from areas that are expected to increase in relevance in the future. And the same is true for new technologies.
In brief, what are today’s retailers doing to leverage these technology opportunities at the point of sale?It’s clear that retailers have technological investment on their agenda, and priorities in this area are related to big data from
different angles and mobile capabilities. However, in order to bridge the gap between current and future relevance, we see the need for more advanced solutions like facial recognition, which are already on some retailers’ radar.
To manage the investments effectively, retailers need to keep one eye on understanding how new technologies can help them do this and another on ensuring they anticipate future innovations. By analysing technological developments in terms of their perceived relevance and the likelihood of them being the focus of future investment by retailers, it’s possible for businesses to pinpoint which technologies to invest in and how to differentiate in a very competitive environment.
Integrating Disruptive Technology at Point of Sale At GfK Markus Tuschl, Global Director of Digital Retail, tracks retail developments
THE NUMBER ONE DRIVER OF CHANGE IN RETAIL GLOBALLY, ACCORDING TO ALMOST 90% OF THE EXPERTS WHO TOOK PART IN OUR 2017 STUDY, IS CONVENIENCE
Markus TuschlGlobal Director of Digital Retail, GfK
CONFERENCES
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 19
Enrique MartinezChief Executive Officer, Groupe Fnac Darty
1.5 years after the acquisition of Darty by Fnac, the group now has common head offices in France and Belgium. We asked Enrique Martinez, CEO of Groupe Fnac Darty how the integration is coming along.
The integration of Fnac and Darty is unfolding at high speed, according to our motto “one group, two brands”. We have launched numerous business initiatives, be it a common gift card, the development of a cross-brands click-and-collect service, or the creation of Darty corners within Fnac stores... From an economic standpoint, we are committed to generating 130M€ synergies by end-2018. Last December, we presented a strategic plan that will allow us to continue this integration.
What has changed for the employees and the customers?I think I can say that we are all proud of belonging to a leading European group, composed of two beautiful brands that have been able to reinvent themselves and look to the future with confidence! Our first Fnac Darty convention in September in Paris was a seminal moment: employees of the two brands were able to meet and
share their experiences. Our customers now benefit from greatly increased range of services. For example, subscribers to Fnac and Darty’s loyalty programs enjoy unlimited delivery across both. We still have a long way to go to consolidate our referring brands towards our customers and employees.
How will be the strategy moving forward?Our vision of the group for the coming years is that of an omni-channel player with a strong digital presence, that has developed a complete range of products and services around its brands and partners. Will both brands remain in the market? Will you start opening stores with dual branding?The whole project of bringing together Fnac and Darty finds its meaning in the brands’ power. Both have unique strengths that are
recognised and complementary. We are still testing different dual-branding formats with great success. What is remarkable with Fnac and Darty is that they are even more powerful when brought together, within the same selling space, where each one benefits from the other’s strengths.
What has the recent change in ownership of the group changed for the way it’s running?Fnac Darty has been an independent company since its IPO in 2013. Since the 1990s, the Pinault family has supported the digital and international development of our group, which has more than 60 years of history. Today, we welcome Ceconomy into our capital. It is a proof of confidence in our company and in the relevance of our consolidation project in France.
One Group – Two Brands Fnac Darty CEO Enrique Martinez updates us on integration progress
SUBSCRIBERS TO FNAC AND DARTY’S LOYALTY PROGRAMS ENJOY UNLIMITED DELIVERY ACROSS BOTH.
CONFERENCES
20 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
MediaMarktSaturn Retail Group’s Chief Digital Officer, Martin Wild is responsible for innovation and digital transformation at the group – from the customer experience over business operations to new business models. We asked him to tell us more about how his team operates.
We constantly scan the market for new technologies and trends. And as soon as we’ve discovered an exciting new technology or concept that is relevant to us, we start testing it. A good example is the introduction of our virtual reality store. We were quick to spot the potential of virtual and augmented reality and began testing it in various scenarios. The result is now the first VR discovery world for consumer electronics in Europe. Or take our Retailtech Hub accelerator. Together with other retail partners, we’re now helping develop start-ups’ innovative business ideas for a much greater reach and are integrating them into our own business or participating in new business models.
How are things like robots, virtual reality and in-store navigation going to change
the way people shop, and what are the time lines on these? The digitisation of retail has already completely changed the shopping behaviour of our customers. Technologies such as robots, VR and in-store navigation systems will reinforce this trend. Whereas previously, customers had the choice between ordering a product online and waiting one or two days for it to be delivered, or visiting a store with the risk that the desired item was out of stock, these two channels and our customers’ homes are now so well integrated that these channels perfectly combine their respective advantages. Customers can now order products in store from the online range, or for instance reserve the desired product in a particular store using an app for collection later on. Service robots that guide them to
the item they’re looking for, virtual reality stores enabling them to directly explore the product world from home and make purchases, and even in-store navigation systems continue to expand the options for our customers. Over the next ten years, retail looks set to change significantly, and thanks to digitisation it will probably undergo ‘hyperpersonalisation’.
What will be the “key take away” from your presentation at the TCG Summit?True to the motto “Try fast, fail fast and adjust even faster”, my recommendation to the industry is to try out and test as much as possible! That’s why, together with our retail partners, we’re working closely with startups at our Retailtech Hub accelerator. We want to gain experience while others are still busy talking.
Towards Robots, Virtual Reality and In-Store Navigation On the cutting edge of the digitalisation of retail – with MediaMarktSaturn
TRY FAST, FAIL FAST AND ADJUST EVEN FASTER
Martin WildChief Digital Officer, MediaMarktSaturn Retail Group
CONFERENCES
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 21
Turkey ’s re ta i l i ndus t r y continues its growth while changing its shell in line with deve lop ing techno log ies, changing customer habits, and socioeconomic trends, embracing many innovations in a very short time. We asked Bülent Gürcan, CEO of Teknosa, to tell us how his company fits in.
Embracing the philosophy “Technology for Everyone”, Teknosa is the leader and most widespread technology retailer in Turkey with more than 200 stores across 69 provinces. This network also strengthens our omnichannel strategy. With our stores and online channels, we are the most accessible, closest technology market to the customer and host more than 200 million visitors yearly.
Your talk is about “Leading Customer-Centric Transformation in Retail”. What do you mean by this? The rise of digitalisation has led to remarkable transformation of the retail industry. Consumers today expect a seamless, connected experience across multiple channels including web, mobile, social, and in-store as part of the shopping journey. According to a survey by Simon-Kucher, consumers’ mobility between sales channels during shopping reach as high as 65%. The changing needs of consumers have also impact on business models. Retailers need to gather and analyse data through a variety of channels and platforms to understand the needs,
preferences, and attitudes of diverse
consumers, as well as personalised offers
on a one-on-one basis.
Our priority is to enrich customers’
shopping experience at Teknosa. To this
end, we launched the “Connected Store”
project, first for the Turkish retail industry,
in late 2015. We have connected all our
stores, tens of thousands of products
and our entire sales team through tablets.
Our store staff can now easily access all
product information, inventory data and
training programs. They can also process
payments through their tablets.
As a first in the sector, Teknosa gives
mobile communication services – MVNO
with its own brand Teknosacell. We are
offering our 24-month payment plans for
any technology products of their choice.
Hence, our customers can now purchase
their mobile devices and mobile lines at a
single point, on a single invoice.
We made another first move in our sector by
launching smart products with private label
"Preo". Teknosa offers advance technology
with affordable prices to customers and
now is continuing to expand Preo range
with new products and accessories.
What will be the “key take away” from
your presentation on the future of
commerce at the TCG Summit?
The future of commerce lies in providing
innovative shopping models tailored
according to customers’ expectations.
Companies’ success will depend on their
ability to analyse the change in consumers
behaviour and provide appropriate services.
Teknosa differentiates from its competitors
with this customer centric sustainable
business model.
Talking Turkey It’s “technology for everyone” as the retail industry evolves in leaps and bounds
THE FUTURE OF COMMERCE LIES IN PROVIDING INNOVATIVE SHOPPING MODELS TAILORED ACCORDING TO CUSTOMERS’ EXPECTATIONS
Bülent GürcanCEO, Teknosa
CONFERENCES
22 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
After working as CEO in major Tech & Media companies in Italy, from Microsoft to RCS MediaGroup, Pietro Scott Jovane is now the CEO of ePRICE, the local e-Commerce leader in Italy. We asked him to tell us more about his presentation at this year’s summit.
My presentation will describe the strategy path and development of the Italian e-Commerce market and that of ePRICE. Indeed, Italy’s e-Commerce market is now accelerating and closing the digital gap vs. countries like UK, Germany or France. Italy expects to add 6 million new additional e-Commerce customers by 2021, totalling by then 25 million.
Furthermore, I will illustrate ePRICE’s market strategy versus both international platform players and traditional retailer efforts, highlighting how our growth derives from the development of our marketplace, the product + service strategy and a unique Pick&Pay last mile platform.
How will ePRICE be able to combat Amazon in Italy?It’s all about understanding the specific Italian customer needs when they buy online and providing smart easy solutions.A couple of examples: We are the leaders in higher ticket sales – think of them as the “Family Capex” – because we help customers in making the right choice amongst a complex product offering, accessing the right price, and having their TV or Fridge delivered and installed at home in a very simple and friendly way.
This is what the customer expects from an
online platform and that’s what makes us
market leaders on MDA category online in
Italy.
Another example is our unique last mile
delivery network: ePrice over the years
has developed an offline network of
134 Pick&Pay and about 300 lockers
across 109 Italian cities, which combine
the advantages of buying online and the
convenience and security of a proximity
shop with the option for customers to pay
cash.
Tell us something about your ambitious
growth plan in Italy
Our growth strategy is based on 2 pillars.
On one hand, we aim to consolidate our
revenues and leadership in first party sales
on the so called ‘family capex’ (white
goods and TV) leveraging our relevance
with key vendors and drive our premium
installation and financial sales services
offer. On the other hand, we will drive
traffic and sales on mass market and low-
ticket tech products, empowering the
role of our third party marketplace, which
today represent a significant portion of our
business: 1,400 sellers and about 15% of
ePRICE’s total GMV.
Riding the e-Commerce Wave in Italy ePRICE CEO Pietro Scott Jovane outlines strategy & development plans in summit presentation
ITALY EXPECTS TO ADD 6 MILLION NEW ADDITIONAL E-COMMERCE CUSTOMERS BY 2021, TOTALLING BY THEN 25 MILLION.
Pietro Scott JovaneCEO, ePRICE
CONFERENCES
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 23
Miya KnightsHead of Global Retail Technology practice, PlanetRetail RNG
Miya Knights, Head of Global Retail Technology practice at PlanetRetail RNG is delivering a presentation at the summit entitled, “What TCG stakeholders should learn from Amazon”. We asked her to give us a little foretaste of what we’ll be hearing…
My presentation will examine the huge impact of Amazon on the retail industry, and the TCG sector, in particular. This is because the reasons for Amazon’s success are emblematic of several technology-enabled drivers. I will outline these drivers because they are precisely those that traditional retail and manufacturing models fail to accommodate: namely related to customer engagement, ecommerce and digital ecosystem development, supply chain strategy & seamless fulfilment, and what this all means for the store of the future.
Are there things Amazon could learn from some of the retailers present?Of course, yes. I believe retailers, and manufacturers too, could learn a lot from each other, just as traditional bricks and mortar operators can learn from online-only pureplay specialists and vice versa.
Amazon’s acquisition this year of Whole Foods is evidence of this, proving that even it recognises the importance of having a physical retail presence. There are certain customer-facing and operational advantages the retail store has over online that it needs if it is to sustain its current rate of growth.
This is why the concept of “omnichannel” retailing has retained its relevance for so long, beyond being just a buzzword – it captures the fact that consumers do not see channels, they are “channel blind”. Whether it is online or instore, customers only see the product or service, its brand and the retailer selling it. So, retailers have an advantage over Amazon in understanding the efficiencies of scale that can be gained from managing a multichannel supply chain to serve omnichannel customers.
What will be the key “take-aways” from your talk?Your question about Amazon learning from the retailers that attend the event is very apt here. The TCG retailers and manufacturers that attend my talk will hopefully learn a lot more about Amazon’s retail strategy through an examination of its strategic ambitions, and successes and failures, as well as how to apply the same thinking where relevant to their own businesses. This will also help highlight those areas where Amazon’s ambitions are most likely to impact their own business strategies into the future, as well as how they can and should respond in shaping their digital transformation strategies now.
The Amazon Experience What TCG stakeholders should learn …
(…) CONSUMERS DO NOT SEE CHANNELS, THEY ARE “CHANNEL BLIND”
CONFERENCES
24 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
Alessandro Stanzani was appointed Executive Vice President of Consumer Imaging for Canon Europe in January 2014. We asked him what’s changing in the way Canon is working with the public in the imaging sector.
Canon implemented several digital platforms in the past 3 years, cloud services, CRM with consumers and professionals, a B2C eCommerce platform and several apps with a goal to provide an advanced experience for anyone interested in imaging, regardless the device they use, from smartphones to professional cameras or video cameras. We all speak through images today, the amazing number of a trillion images captured globally was achieved already two years ago. We are a leading imaging company and want to play a role in every image taken.
How are you working with electronics retailers? How are your sales channels evolving? Given the products we manufacture and sell, we need a high-quality experience in the channel, both, online, with extensive and appropriate content, and obviously, a high quality offline experience where we
expect our channel partners to offer touch & try of our products with a high level of knowledge from sales representative on store floor. Another key element required by Canon from channel partners is the expertise to sell services, from cloud services, to training, learning modules. Last, but not least, any opportunity to use data in a strategic partnership with the common goal to create more traffic, interest, and ultimately, sales.
Why did Canon decide to sponsor the summit?The TCG summit is a very good initiative. Now more than ever, manufactures and channel players need to meet and face some of the hot topics relevant for everyone, regardless the industry or channel we come from. Hence, the first reason to be a sponsor is to support it. Second, Canon is a brand selling products from €49 euros like printers, to several
thousands of euros like professional cameras or lenses. Like any other brand, we need to be closer to consumers, talk to them, provide an outstanding content quality, because today content is as important as the product itself. We need to be fully digital in all our media tools. The risk might be that manufactures and retailers are confrontational on these subjects and easily fall into questions like: “who’s owning the consumers relationship?” The risk is real, but given the enormous resources and cost that these platforms, knowhow and implementations require, there’s no other way than through collaboration.
A Strategic Player in a World of Images Canon shows true leadership values as a key sponsor of the TCG summit
NOW MORE THAN EVER, MANUFACTURES AND CHANNEL PLAYERS NEED TO MEET AND FACE SOME OF THE HOT TOPICS RELEVANT FOR EVERYONE, REGARDLESS THE INDUSTRY OR CHANNEL WE COME FROM.
Alessandro StanzaniExecutive Vice President of Consumer Imaging for Canon Europe
CONFERENCES
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 25
Thierry Gadou, Group Chairman & CEO, SES-imagotag will be addressing the summit on the topic of “Enhancing Brand-Retailer digital collaboration at the shelf”. We asked him exactly what he means by this.
On the Internet, getting a consumer to click on a page that displays a product brings in money. The real-world equivalent – getting a shopper into the store and in front of a product – does nothing for the retailer. Where is the logic in that? And yet the rate of converting a store visit to a purchase is much higher than in e-commerce.That is going to change quickly. Advertising spending by brands will continue to move closer to the act of purchase, i.e. the store, for more precision and effectiveness. If retailers digitize their gondolas, they will make each shelf an advertising platform like JC Decaux did for bus stop shelters. Retailers are going to become large-scale precision broadcasters for brands.But it does not end there: by developing connectivity with shoppers at shelves, retailers will become a significant source of consumer data. The next major digital battle will play out in stores.
How far have we come in this respect and what’s the future?Brands and retailers can now design, manage and deploy fully synchronised digital advertising campaigns in-store. Leveraging a Cloud based collaborative platform (AdShelf) connected to digital labels now makes it possible to relay a campaign at the point of sale with a single click.Indeed, digital labels are no longer just a simple, passive mechanism for displaying prices. They play a much bigger role in giving information to customers. They
are extremely effective advertising tools, positioned in front of every product in the store and remotely actionable.Brands and retailers can now engage directly to the consumer at the shelf, at the precise moment of purchase. They can display rich and targeted information, a “call to action” message, etc. when it counts the most. And there are no limits on content they can communicate to consumers’ smartphones leveraging NFC tap or QR code scan.
What will be the “key take away” from your presentation on the future of commerce at the TCG Summit?Physical stores are a rich source of contacts and customer interactions. Each of these opportunities must be fully exploited in the store and help retailers implement proactive, omnichannel management of the customer relationship.More than 90% of retail sales around the world still occur in physical stores. Therefore, although store traffic is declining gradually, it is still a formidable asset for retailers when it comes to connecting and better understanding consumers.
However, this asset is vastly underutilized right now: consumers in stores are rarely identified (unless they make a purchase and present their loyalty card). Furthermore, no information is captured about what they are looking for in the store, what category or product they stopped by but didn’t purchase, and so on.
This information is critical, however, all retailers must transform their physical stores into connected interactive environments so they can better know, inform and serve their customers. In the session, we will present how digital marketing tools developed for the web can now be triggered by in-store behaviours.
Enhancing Brand-Retailer Digital Collaboration at the ShelfDesigning, managing and deploying fully synchronised digital advertising campaigns in-store
MORE THAN 90% OF RETAIL SALES AROUND THE WORLD STILL OCCUR IN PHYSICAL STORES
Thierry GadouGroup Chairman & CEO, SES-imagotag
CONFERENCES
26 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
The world is changing rapidly, driven by digital, data and analytics, leading to high impact opportunities. We asked Markus Hepp, Partner & Managing Director, The Boston Consulting Group, what he sees as being the coming trends in this respect, and how retailers can benefit…
Traditional retailers generate and capture a deluge of data -- most notably, customer transaction histories that can reveal detailed product affinities and promotional and marketing response rates. Now the emergence of big data and advanced analytical tools and techniques can put data in a larger context. Big data can explain the who, what, when, where, why, and how of retailing.
Although some leading companies have gained a reputation for deft data handling, most retailers have not yet built the analytical capabilities and internal processes necessary to take advantage of the deep well of information accessible to them. Merchants and marketers often rely on tactics that worked last year, with only slight modifications. Sometimes their promotions end up discounting the wrong items and hurting rather than helping sales. Too frequently, they simply
rely on consumer goods companies or suppliers, with their different incentives and motivations, to tell them what to do.
In the end, many retailers have not figured out where and why they are winning and where and why they are losing. They struggle to discover which prices, promotions, and store locations are working best, and have a hard time taking advantage of all the contextual information around transactions that could make a difference in sales. In effect, they know the outcomes of millions of real-time experiments, but they are not able to look at and learn from them.
All this leads to missed opportunities and ultimately opens doors to online and direct sellers, who often have better data and more sophisticated analytics.Big data can help turn this situation around. In our work with retailers across a range of
market segments, we have identified three opportunities that offer high potential in the near term: boosting the effectiveness of promotions, targeting pricing precisely, and understanding the value of a network. Exploit ing these opportunit ies can generate a significant increase in revenues and profits for retailers.
You will be giving some examples during your presentation. Can you give us a little foretaste?We will describe examples of our recent project work with retailers who are leading in advanced analytics and who have started to see significant benefits from tapping into these new capabilities, exploiting this opportunity and sharing concrete ideas for next steps.
Big Data: The “How To” Guide The best ways for top retailers to leverage customer transaction histories
EXPLOITING THESE OPPORTUNITIES CAN GENERATE A SIGNIFICANT INCREASE IN REVENUES AND PROFITS FOR RETAILERS.
Markus HeppPartner & Managing Director, The Boston Consulting Group
INNOVATION ZONE
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 27
Brick-and-mortar retail is still the most popular way of shopping. To keep it that way, digital tools have to become an integral part of the customer journey. AMERIA develops digital solutions and transforms the point of sale to the point of experience. We asked the company’s Head of Sales & Chief Evangelist, Johannes Troeger, why the point of sale is becoming a “point of experience”.
People today expect experience – usually involving digital tools. In brick-and-mortar retail, customers are looking for excitement and surprising moments. The strength of physical retail allowing customers to experience the real product has to be enhanced digitally. And more than that: the real and digital worlds have to be connected creating seamless pathways for customers. The goal is a combination of interactive and personalized content as well as futuristic human-machine interaction.
What’s different about how AMERIA addresses this issue?AMERIA’s approach is based on three insights. First, we understand the different paradigms of stationary digital vs. online digital. The stationary context is very specific making a transfer of online digital technology, forms of interaction and content difficult. Second, AMERIA strongly believes in providing benefits for retailers,
manufacturers and consumers alike in order to ensure success. Third, AMERIA’s product development doesn’t focus on solitary solutions with a single benefit but a system, customizable to the needs of different industries. This is what we call Connected Experience, an end-to-end solution run via a single platform.
How does it work?Connected Experience combines digital touchpoints in brick-and-mortar retail and creates a seamless integration with online and mobile channels. With digital products, such as the interactive Virtual Promoter, AR installations, Beacons and Mobile Apps, AMERIA delivers a connected customer experience. An extensive set of cloud services allows for management, content creation, data analytics and integration with existing software systems.
What is important to keep in mind when implementing these kinds of systems?The first thought always has to be the customer. If a solution doesn’t work for them it’s not going to work for anyone. This means content, mode of interaction and the seamless connection to the digital world are extremely important. At the same time the needs of retailers and brand manufacturers have to be considered at all times. Retailers need an easy to run system that increases traffic and maximizes sales over all channels. Manufacturers need new ways to win customers’ attention, create brand loyalty and upselling opportunities.
The Connected Experience Connecting digital touchpoints in brick-and-mortar retail for a “supreme customer experience”
IN BRICK- AND-MORTAR RETAIL, CUSTOMERS ARE LOOKING FOR EXCITEMENT AND SURPRISING MOMENTS
Johannes TroegerHead of Sales & Chief Evangelist, AMERIA
INNOVATION ZONE
28 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
KPMG is a network of professional firms around the world. In Germany too, KPMG is one of the leading auditing and advisory firms. We asked Stephan Fetsch, Head of Retail in Germany, which challenges the retail world has to face and how Geo Analytics can help in shaping the future of retail.
CE online volume in Germany is catching up. Slowly though, at least when compared to Asia, North America or the UK as Europe’s leading online country. Online challenges retailers in two specific ways. Firstly, online requires CE retailers to drive their multichannel business models forward. Secondly, online requires a new formula to manage physical retail space in the era of shrinking productivity per space unit.
In order to invent a new formula for space management, transparency is needed more than ever. Transparency in this respect can only mean a spicy cocktail of catchment area and traffic analytics, prognostic macro- and sociodemographic data as well as the good old e-journal. Shop owners can only tip into the so far unaddressed shop potential if they understand two fundamental things: 1. the real catchment area potential of every single POS in comparison to its today's estimated potential and 2. today’s archetype mix and contrasting it against the potential archetype mix resulting from catchment area analytics. This is real, dedicated, and comprehensive retail analytics at its best.
And this is where KPMG’s Geo Analytics comes into play: it provides data-based answers to acute questions of the CE
sector: Who are my customers? Which location is profitable? How do I compete with competitors? What is my shop value? How do I design the sales space? The POS is a hugely important touch point in the overall client journey and needs to be much better understood.
Can you give us an example how KPMG supports retailers in their day-to-day POS decisions?We had a retailer who approached us with a list of shops, a refurbishment budget and the question how to best allocate it. We used our KPMG retail analytics suite to simulate scenarios which scored the shop potential, NPV, IRR and payback period of the investment as well as other indicators of refurbishment scenarios between 100 and 700 €/m². And all this on the basis of realistic catchment areas, proven traffic, future demographics, brand loyalty etc. The use case resulted in three shop types: invest now, invest doubtful and cash out or rather move out. If you want to know more about our solutions, we will have a live demo running at our stand at the TCG Retail Summit. Come along and test it yourself.
Better Understanding Your Customer with Geo Analytics KPMG tackles a number of key challenges in the electronics retail sector
THE POS IS A HUGELY IMPORTANT TOUCH POINT IN THE OVERALL CLIENT JOURNEY AND NEEDS TO BE MUCH BETTER UNDERSTOOD
Stephan FetschHead of Retail in Germany, KPMG AG Wirtschaftsprüfungsgesellschaft
INNOVATION ZONE
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 29
Markus RöseManaging Director, Commerce Connector
What are the advantages or disadvantages of brands selling direct online? Is it better for them to lead customers to retailers’ sites? We put the question to Markus Röse, Managing Director, Commerce Connector.
T h e r e ' s a m a s s i v e concentration of touchpoints where consumers shop online. This can be seen in dynamic markets like the US and China, but also in Europe. Most of the ecommerce turnover is generated by large retailers or platforms. The mobile shift will foster that development even more. Accordingly, I don't believe that consumers are going to start buying products from a brand's online store when they've been trained to buy them at retail. In my view, only a few CE brands are able to scale direct sales significantly. Brand websites remain an important piece of the puzzle, as consumers will use the link to retail simply for the sake of convenience.
In terms of the digital customer journey, how can brands strengthen their impact?The classic digital journey has moved from a linear journey into a non-linear, unpredictable, and shared one. Consumers are interacting constantly with brands across multiple dev ices, channels and platforms. Brands need to connect the dots across this landscape. Watching, listening and interacting on a multitude of channels like Instagram, Facebook and WeChat is key to building engaging insights for the consumer who is always online. Putt ing customer-centr ic thinking at the heart of each channel’s strategy will help build meaningful relationships and thus make a difference.
Rik Esselink, Managing Director Europe, Ring, tells us a little more about his star product — the video doorbell — and how / why it stands out in the market…
Ring was the first of its kind and the Ring Video Doorbell is the first – and still only – battery-operated video doorbell available. The product lets the user monitor and protect his or her home from a smartphone, tablet or PC. Each doorbell has a built-in microphone, speaker and one-way video, so the user can see, hear and speak to wanted – or unwanted – visitors from anywhere.
With major sales in the USA, how are your product sales evolving in Europe, and which zones are the “sweet spots”?We’ve seen great enthusiasm as home security awareness grows. We’re already a top player in the UK’s connected
home security space and we launched in France and Germany earlier this year. Our mission is to reduce crime in neighbourhoods and help neighbours stay informed about local crime. There is a huge need for this across Europe. We make it easy and accessible with the right products at the right time, so anyone can create a Ring of Security around their home.
Consumer electronics and DIY channels are our top two channels. All our products are available to buy from Ring.com, as well as selected online retailers.
Retail Dominates Over Online Brand Stores
Now You See Me…
Rik EsselinkManaging Director Europe, Ring
30 International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018
Canon Europe is the EMEA arm of Canon Inc., a global provider of imaging technologies and services, and one of the world’s most well-recognised and loved brands. Canon Europe has operations in around 120 countries, employs approximately 19,000 people across the region, and contributes about a third of Canon’s global revenues annually.
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Electrolux shapes living for the better by reinventing taste, care and wellbeing experiences, making life more enjoyable and sustainable for millions of people. As a leading global appliance company, Electrolux place the consumer at the heart of everything we do. Its brands include Electrolux, AEG, Anova, Frigidaire, Westinghouse and Zanussi.
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Tech Data connects the world with the power of technology. Its end-to-end portfolio of products, services and solutions, highly specialized skills, and expertise in next-generation technologies enable channel partners to bring to market the products and solutions the world needs to connect, grow and advance.
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SES-imagotag, a fast-growing retail tech company, is the world leader in Electronic Shelf Labels (ESL) and digital solutions for retail. SES-imagotag serves over 100 retailers in 54 countries with an installed base of over 14,000 hypermarkets, supermarkets, CE, DIY and furniture stores. It has installed 150 million ESL which manage over 8 billion price updates annually.
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World reference in small domestic equipment, Groupe SEB operates in nearly 150 countries with a unique portfolio of top brands including Tefal, Rowenta, Moulinex, Krups, Lagostina, All-Clad, Supor, and WMF marketed through multi-format retailing. Selling some 286 million products a year, it deploys a long-term strategy focused on innovation, international development, competitiveness and service to clients.
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Intel is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Intel’s products include microprocessors, chipsets, other semiconductor products and software which are integral to computers, ultra-mobile devices, data centers powering the Cloud and Big Data, as well as the Internet of Things.
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GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries.
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2018 STRATEGIC PARTNERS
STRATEGIC PARTNERS
International TCG Retail Summit SMARTreport / Special Issue N° 4 / january 2018 31
WE HAVE UNDERGONE A FUNDAMENTAL SHIFT AS WE ARE EVOLVING FROM A PRODUCT-BASED COMPANY INTO AN EXPERIENCE-BASED COMPANY
Dan ArlerHead of Electrolux Major Appliances Europe, Middle East and Africa
How is business evolving for Electrolux and how does the company differentiate its key products / brands in the market today? We put the question to Dan Arler, Head of Electrolux Major Appliances Europe, Middle East and Africa.
At Electrolux, we have undergone a fundamental shift as we are evolving from a product-based company into an experience-based company. By putting consumer experiences at the heart of what we are doing we make people’s lives more enjoyable. This is about enabling you to make great tasting food, to take care of your clothes so that they last longer and to make you clean, breath and rest better. The positive development of our business in the last years proves that this is a powerful value proposition and thus also the right way to differentiate ourselves in the market.
Can you be a bit more specific on what “Better Consumer Experiences” really means?Let me illustrate this with an example. Imagine you have bought a new steam oven from us. You can look at the tasks involved in cooking as experiences. Features like oven cavity volume do not enhance an experience, they are only the basics. Experiences are determined by factors such as intuitive use and design quality (which includes look, feel, finish) as well as by surpassing your expectations regarding the results you’ll achieve. Ultimately this is about truly experiencing how great that steamed chicken or salmon tastes with your new oven.
You’ve recently launched an innovative marketing campaign leveraging lifestyle bloggers. Please tell us more about this and why you’ve chosen to communicate this way rather than through “classic” advertising.Our general approach in marketing is to focus on digital storytelling and engaging people rather than only informing them. So by for example working together with lifestyle bloggers who are important influencers within the areas of taste and care we can through them get in touch with audiences that we normally would not reach. As the industry leader in the area of sustainability, digital storytelling also helps us to address issues together with consumers that affect us all, for example that the care labels in our clothes are driving truly unsustainable behaviour through over-washing.
How is connectivity progressing? How important is it now, and how important will it be in years to come?Connectivity is important and will become even more important in the years to come, especial ly considering new possibilities with voice control and artificial intelligence. When we talk about creating great experiences this of course already now includes the digital experience.
A Strategic Partner with a Solid Mission Electrolux aims at creating “better consumer experiences”
STRATEGIC PARTNERS
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In 2016 SEB reached the five-billion-euro figure for the first time, posting high growth. At the same time, in 2016, Groupe SEB acquired the German companies EMSA and WMF. We asked the group’s Executive Vice-President EMEA Cyril Buxtorf to tell us more.
EMSA is specialised in the design, manufacture and sale of kitchen products and accessories. Its core business focuses on three categories: vacuum jugs and flasks, kitchen utensils and food storage containers. EMSA holds a very strong position in Germany in vacuum flasks and food storage products, where it has forged the position of clear leader. EMSA is also present in the rest of Europe and the Middle East. The acquisition of EMSA is of key strategic interest to the Group, allowing it to pursue its growth in the highly promising market of kitchen utensils and accessories as a complement to our global leadership position on pots and pans. We are leveraging EMSA team expertise, which has become Group’s kitchenware centre of expertise, developing offer for our brands EMSA but also Tefal.WMF is a German industrial flagship with three major business lines: professional automatic coffee machines, small domestic equipment (cookware and small electrical appliances) and hotel equipment. Through this strategic acquisition, Groupe SEB acquires a solid worldwide leadership in the very attractive professional coffee machine market characterised by strong growth, good profitability and significant recurring revenue given the existence of after-sales service activities. This will also allow us to further build our expertise on coffee,
both for professional and consumer lines. It considerably strengthens our position in cookware by becoming the number one in Germany, notably through high-end stainless-steel product range. It consolidates our portfolio by adding strong new brands including iconic WMF as well as Schaerer, Silit, Kaiser and HEPP. The WMF premium brand will open opportunities in the high end of cookware and SDA markets. Which geographic markets are growing the fastest and why? The strong dynamic is nurtured by our key strategic pillars: innovation, the strength of our brands, our international presence and a broad-based distribution network, including traditional points of sales, mass retail, electro specialists and, expanding rapidly, e-commerce.Representing 22% of Group revenue and growing by more than 20% organically, China continues to be the major growth driver for the Group and this dynamic is based on both a promising Chinese market and Supor’s ongoing “outperformance” on its domestic market. But other areas also contribute to the Group’s robust like-for-like sales growth, with strong gains of market shares in Europe. This leads to strong growth in Germany, Eastern Europe, Turkey, and good like for like growth in western Europe.
Major Growth for SEB – Organically, and Through Acquisitions
THE STRONG DYNAMIC IS NURTURED BY OUR KEY STRATEGIC PILLARS: INNOVATION, THE STRENGTH OF OUR BRANDS, OUR INTERNATIONAL PRESENCE AND A BROAD-BASED DISTRIBUTION NETWORK
Cyril BuxtorfExecutive Vice-President EMEA, Groupe SEB
STRATEGIC PARTNERS
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WHAT WORKED YESTERDAY WILL NOT NECESSARILY WORK TOMORROW!
Stuart BlanchEMEA Retail Sales Strategy Director, Intel Corporation
Intel – a strategic partner of the summit – is known primarily as a processor supplier to the PC industry. In this regard, the company works very closely with retailer, OEM and ecosystem partners across the globe to deliver cutting edge products for every segment of the market -- from casual users to high end gamers. We asked EMEA Retail Sales Strategy Director, Stuart Blanch, to tell us more about this, and other ways Intel works with retailers.
We’re driving programmes and tools to support retailers’ sell-through, training our retail partners’ staff on the benefits they deliver. We draw on our broad market position to share market insights, trends, opportunities and best practices, and organize/sponsor events to help generate opportunities and leads for our customers. We also work with retail as a vertical industry, facilitating solutions for a unified commerce approach to what many refer to as omnichannel sales, including instore customer activity tracking, intelligent digital signage and implementing big data analytics which share workloads across advertising, CRM and external data sources such as weather, events or traffic flow.
So technology is disrupting the traditional retail model? Please tell us more. The move to mobile is well documented, this is happening at every stage of the shopper journey from research to purchase. As we seek to understand more about our customers, using the data they trust us with to create customer-brand affinity, we must honour that trust with security. Additionally, consumers are looking for flexible models to finance and
take delivery of their purchases, so we need to establish the services and supply chains to enable that.
As time goes on, how important will it be for retailers to leverage technologies in this way? Darwin suggested it is not the strongest of the species that survives, nor the most intelligent - it is the one that is most adaptable to change. That’s true here too: those who do not make the pivot over to a truly omnichannel approach and who do not understand their customers and cannot predict their behaviour will not be in business in the long term. It’s an existential challenge: we are in a highly competitive business where we typically differentiate on price or service, and those that are able to adapt most nimbly by using customer insights will win.
How does Europe differ from other regions in this respect? Our retail channels are more established than Asia’s, which has its advantages but also means we need to be ready to shake off old habits and adapt. What worked yesterday will not necessarily work tomorrow!
Success Inside Intel works with retail on multiple levels
STRATEGIC PARTNERS
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Tech Data has recently undergone a “facelift”. We asked Stephen Nolan, Senior Vice President, Endpoint Solutions, Europe, Tech Data what has changed, and why.
Well, our logo and name have stayed the same, but we have made some structural changes to our go-to-market branding in order to better reflect the full range of our capabilities since Tech Data acquired Avnet’s Technology Solutions business earlier this year. This acquisition has been transformational for the company, expanding our footprint in Europe and the Americas, establishing us in the Asia Pacific region and adding significant technical expertise and capabilities, especially in next generation technology. Following this, we decided to establish Tech Data as the single global brand for our company to capitalise on the full reach, efficiency, and technical expertise of its new combined organisation. In order to maintain our specialist focus, we have grouped our offerings into two primary solutions portfolios under the single Tech Data brand: Endpoint Solutions and Advanced Solutions. Tech Data’s Endpoint Solutions portfolio, previously known as the broadline offering, primarily includes PC systems, mobile phones and accessories, printers, peripherals, supplies, software and consumer electronics. The Advanced Solutions portfolio includes primarily data centre technologies such as storage, networking, servers, advanced technology software and converged/hyperconverged infrastructure. This portfolio also includes next-generation technologies such as cloud, IoT, mobility, security and analytics solutions.
How do you help retailers?
Tech Data has a full range of services to
support retailers at every point in the supply
chain. For example, as e-commerce is now
standard, Tech Data’s advanced abilities to
procure, hold and deliver stock, mean that
we are able to handle the whole process
from order to end-customer delivery. We also
support retailers with digital products, as our
digital transaction platforms enable retailers
to sell a code in-store which the customer
can use to download the software product at
home. Tech Data also has a well-developed
offering of device lifecycle services, where
we leverage our logistic, transaction and
configuration capabilities to enable retailers
to offer affordability services such as
leasing, rental or subscription models and
also to handle device recycling and return to
the marketplace with our support.
What’s next?
The great thing about our industry is that
there is always something new, whether
that is a new product type or a business
model for the marketplace. Next generation
technology is of course making an impact on
the consumer segment and Tech Data will
leverage its partnerships with leading and
emerging vendors to cater for the growing
demand for smart-home solutions or virtual
reality products for example. With our newly
combined organization and reinforced end-
to-end strength, Tech Data is looking forward
to leading from the front in the coming year.
Tech Data: New Organisation, New Ideas, New Solutions Endpoint Solutions and Advanced Solutions come together under one roof
TECH DATA’S ADVANCED ABILITIES TO PROCURE, HOLD AND DELIVER STOCK, MEAN THAT WE ARE ABLE TO HANDLE THE WHOLE PROCESS FROM ORDER TO END-CUSTOMER DELIVERY
Stephen NolanSenior Vice President, Endpoint Solutions, Europe, Tech Data