S RAVI KUMAR

2nd March 2017

DISRUPTIONS IN RETAIL

Source: Darrell Rigby & Julia Kirby, Harvard Business Review article Dec 2011

10 Connected Devices for Every Household by 2020

5 billion internet users by 2020

5 connected devices for every user by 2020

500 devices with unique digital IDs (Internet of things) per square kilometre by 2020

80 Billion Connected Devices By 2020

Source: Frost & Sullivan Research, New Mega Trends Macro to Micro Opportunities on Future Business, Cultures and Personal Lives, by Sarwant Singh . Macro to Micro Opportunities on Future Business, Cultures and Personal Lives

What do these mean to Retailers?

“Today's retailers are facing demands for convenience, value and connected solutions”.. Booz Allen Hamilton

Beyond BRIC : Next Game changers 2025

Source: Archana Vidyasekar and Akshay Gakhar, Visionary Innovation Research group, Frost & Sullivan, 23rd Jan’13

Indonesia – a compelling prospect

Indonesia – eCom Destination

Indonesia is where,

China was in 2009

Indonesia – eCom Potential

Today's retail landscape doesn't favor slow developing strategies. Retailers need an agenda to excel and win now

Indonesia – eCom Opportunity

Digital Revenues

130 bil $

by 2020 Source: Investvine 2014, Estimates for 2015 Source: Govt of Indonesia, Ecommerce estimates, 2016

A potential opportunity for

‘Digitailers’

eCom Fulfillment Essentials

Fulfillment Challenges

• Large Sku range, with long slow moving tail

• Unpredictable demand

• Complex logic for order processing

• Extreme peak seasonal volumes

• Higher returns

Future of Last Mile*

*Source: Parcel Delivery, McKinsey Sep 2016 – Dr Martin Joerrs & others Macro to Micro Opportunities on Future Business, Cultures and Personal Lives

Current delivery model

Drones

Crowd sourced delivery

Autonomous Ground vehicles Cycle Delivery

“Consumer choice has

increased from the times of Henry Ford’s

Model T. From Standardisation

to personalisation, now the future is ’mass

customisation’

The largest*

branded lifestyle

loyalty program

in Indonesia

* By number of retail brands

LoyaLty Program

S Ravi Kumar

2nd Mar’17

Thanks