Batc New Retail Model

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    18-Dec-2014

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  • 1. Today, 2010 and beyond: a market perspective Presented by Tom Friedman President and Founder, Retail Systems Alert Group Inc.
  • 2. Agenda
    • Todays Market Dynamics
    • Todays Value Propositions
    • Todays Retail Process
    • Todays Limitations
    • Todays Best Practices
    • Tomorrows New Model
  • 3. Market Dynamics in 2004 Danger Quarter for Fashion Why? High Margin, High Expense Quarter Enough? High Volume, Low Margin Quarter Efficient? Price HIGH LOW Maslows Hierarchy of Needs (Sustainment Security Belonging - Esteem - Wisdom) COMPLEX Danger Quarter for Basics How? BASIC Squeezable Center
  • 4. Value Propostions in 2004 Convenience Exclusivity and Service Accessibility and Price Price HIGH LOW Maslows Hierarchy of Needs (Sustainment Security Belonging - Esteem - Wisdom) COMPLEX BASIC Balance Smart, Quick and Innovative
  • 5. Todays Retail Process
    • Marketing and merchandising
    • Buying, assortment, and allocation planning
    • Customer service
    • Returns and complaint resolution
    • Pricing and promotion
    • Inventory and shelf management
    • Warranty and rebate management
  • 6. Current data practices hindering the retail business process
    • Flood of POS data
    • Islands of data
    • Lack of data integration
    • Lack of access to data
  • 7. How to Return to Fundamentals
    • Customer Behavior
    • Key Performance Indicators (KPIs)
    • Basic Analytics
    • Operational Staff Support
    • Information Sharing
  • 8. How to Return to Fundamentals: CUSTOMER BEHAVIOR
    • Fundamental retailing lets customers tell retailers what they want through their actions in stores.
  • 9. How to Return to Fundamentals: BASIC ANALYTICS
    • Simple analysis of KPIs will enable retailers to quickly identify and resolve basic problems and inefficiencies in their strategy and execution.
  • 10. How to Return to Fundamentals: OPERATIONAL STAFF SUPPORT
    • Fundamental retailing enables easy access to the best and most appropriate information for all members of the retail team, enhancing the actions they take day in and day out.
  • 11. How to Return to Fundamentals: INFORMATION SHARING
    • The approach also turns suppliers and customers into partners in retailers success by sharing information that will increase their confidence in the business and encourage their active participation in its improvement.
  • 12. The New Fundamental Retail Model
    • BASIC RETAILING is the core function of the retail organization and includes such activities as merchandising, promotion, and pricing
    • NETWORK refers to the operational support required to execute the retail business process
    • FULL CYCLE encompasses the collaborative aspects of the retail business process
  • 13. The New Fundamental Retail Model: BASIC RETAILING BASIC RETAILING Sales/Store Ops Assortment Pricing Promotion Merchandising Marketing
  • 14. The New Fundamental Retail Model: BASIC RETAILING
    • Timely knowledge of customer behavior
    • Impact of promotional activity
    • Price adjustments
    • Overstock, stock outs
    • Need for rapid analytics
    INTEGRATION CHALLENGES
  • 15. The New Fundamental Retail Model: BASIC RETAILING
    • Bi-directional flow of data between functions
    • Rapid dissemination of data from checkout line to functions
    • KPI and analytics Exchange of information with Network and Full Cycle
    INFORMATION FLOW
  • 16. The New Fundamental Retail Model: NETWORK BASIC RETAILING Sales/ Store Ops Assortment Pricing Promotion Merchandising Marketing NETWORK Sourcing Logistics Receiving/Distribution Warehousing Product Planning
  • 17. The New Fundamental Retail Model: NETWORK
    • Lack of awareness of basic retailing initiatives
    • Lack of connection to customer activity
    • Lack of forward visibility
    INTEGRATION CHALLENGES
  • 18. The New Fundamental Retail Model: NETWORK
    • Timely access to KPIs
    • Advance alerts to changes and decisions taken on the fly
    • Exchange of information with vendors
    INFORMATION FLOW
  • 19. The New Fundamental Retail Model The Full Cycle Customer Service Store Management Supplier Collaboration Operational Improvement BASIC RETAILING NETWORK Assortment Pricing Promotion Merchandising Marketing Receiving/ Distribution Warehousing Logistics Sourcing Sales/ Store Ops Product Planning
  • 20. The New Fundamental Retail Model: FULL CYCLE
    • Distrust among parties
    • Resistance to change
    • Loss of customer focus
    • Lack of information
    INTEGRATION CHALLENGES
  • 21. The New Fundamental Retail Model: FULL CYCLE
    • Timely exchange of information between retailer and suppliers
    • Easy customer access to information
    • Access to appropriate KPIs and analytics
    INFORMATION FLOW
  • 22. The New Fundamental Retail Model The Full Cycle Customer Service Store Management Supplier Collaboration Operational Improvement BASIC RETAILING (Gross Margin) NETWORK (Expense) Assortment Pricing Promotion Merchandising Marketing Receiving/ Distribution Warehousing Logistics Sales/ Store Ops Sourcing Product Planning
  • 23. CONCLUSION: Fundamental Retailing Pays Off
    • enables retailers to focus on actual customer behavior by leveraging POS transaction data across the retail business process
    • extends data access and/or analysis to customers and suppliers
  • 24. CONCLUSION: Fundamental Retailing Pays Off
    • enables analysis with key suppliers for increased accountability and responsibility
    • enables customers to directly engage in the process
  • 25. CONCLUSION: Fundamental Retailing Pays Off
    • Serves as a strategic differentiator in the effort to compete and ultimately thrive in a challenging competitive environment
  • 26. For more information please visit: www.retailsystems.com
  • 27. Back Cover / Thank You