Retail Trends Impact On Supply Chain.

Retail Trends - Impact on Supply Retail Trends - Impact on Supply Chain.Chain.

APCON’2002, Vadodara

12th Oct’2002.

Raghuraman.CDirector, IRMC

Integrated Retail Management Consulting Pvt. Ltd.,Integrated Retail Management Consulting Pvt. Ltd.,

www.integratedretail.comwww.integratedretail.com

The Secret of RetailingThe Secret of Retailing

People buy things most they don’t need ! !

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Retailing challengeRetailing challenge

Retaining existing customers Acquiring new customers Creating word-of-mouth advocacy Improving customer loyalty Unique and exclusive merchandise Building Brand, local and global.

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Retail characteristicRetail characteristic Retail is Detail. Retailer’s Paradigm- Large, Huge, Mass,

High Volume..yet razor thin profits. Retail Channels- Stores, e-tailing, mail

orders and door-to-door. High risk and high reward. Influence of VCs.

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RRETAIL.ETAIL... US .. US economyeconomyConsumer spending represents two-thirds of

the US economy - borrow and spend consumers

Retail trade – US$ 900 billion to GDP in 2001

Retailers will commit 2.5% of revenues to IT in 2002 as against 1.5% in 2001 (AMR)

SCM, an ongoing effort – a $1 bn retailer to spend US $6.5 mn on SCM.

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Retailing in IndiaRetailing in India

Moving out of control economy paradigm. Mostly in visioning stage. Auto retailing, most matured. Apparel & white goods retailing, most visible,

high profile. Commodity retailing, largely still “ mandi”

methods. Jump start on B2C retailing.

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Retailing in IndiaRetailing in India

Corporate retailing - infancy. Earn -Save consumers. Youngest member of FARA. Plastic money - almost negligible. Regulatory support- Long way to go. Credit rating systems- Yet to evolve. Create bulk and then break it.

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Retail Trends.Retail Trends.

Event retailing Profiling BPO Micro retailing Technology sweep

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1a. 1a. Event RetailingEvent Retailing - US/EU- US/EU Valentines Day Independence Day Easter Mothers Day Thanksgiving to Christmas Eve Columbus day Brand Specific Region Specific

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1b. 1b. Events.. Round the Year in IndiaEvents.. Round the Year in India

Traditional mile stones round the year Infused from US - Valentine’s Day etc.. Hyper pitch - Gold retailing on “

Akshaya Truthiya” - Chennai. Killer Discounts - Versa, IA , Jet, Sahara.

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2. 2. Profiling the customerProfiling the customer

Value oriented customers - Sam’s Club/BJs.

Casual attire. Precision shopping - 2 adults. Ethnicity. Traditional demographic data.

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3. 3. BPO -BPO - RetailRetail Retailer’s core focus

* Brand* Supply Chain/ Logistics * Fin/HR.

Managed Services - Outsourcing IT Infrastructure E-tailing Store operations & security Visual Merchandising & Store design Payment systems /gateways

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4. 4. Micro RetailingMicro Retailing

One-on-One retailing Give away Add-on Survey based services Mystery Shopping

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5. Technology sweep5. Technology sweep Wireless revolution - devices within the

store...part of shopping cart Voice over IP IVR RF identification Chips replacing bar codes Simulators

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Retail Retail to to Supply chainSupply chain C-commerce CPFR Reverse Logistics Sale per sq.ft. e-fulfillment Commodity retailing - rural connectivity,

ITC, EID Parry.

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Retail Retail to to Supply chainSupply chain

Last mile access- speed Convergence of Retail and logistics-

Webvan, Kya Mangta Hai.com Going where customers are - Gap

Inc/Banana Republic-Fortune 500. “Never Stop Buying” policy

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NEW PARADIGMSNEW PARADIGMS Relationship Size of Supply Chain Transportation QA Communication Order Qty. Inventory Pricing Contracts

Partners Does Not Matter Smart Logistics!! Zero Inspection Electronic & Instant Small, flexible Multiple T/A Volume Based Long, 5+ Years

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NEW PARADIGMNEW PARADIGMSS

Annual Price Revisions

Delivery Design Process Number Of Suppliers Warehouse

Protocol

Reduction, Innovation. Daily & Hourly !! Seek Ideas. Could Be Anything Small, Several ,Flexi &

Connected. Co-maker..Not

“Supplier”

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“I can attribute our success largely to the fact that, starting in ignorance, we were able to learn our business from our customers…many a business may be ruined because the proprietors knew their trade too well and lacked the incentive to learn”

-Alfred Dunhill

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Moving doesn’t always win… Moving doesn’t always win… butbut it beats standing still it beats standing still!!

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Contact detailsContact details

You may contact us at:

Integrated Retail Management Consulting Pvt. Ltd.,C-2, Casa Lavelle 6 12/6 Lavelle Road, Bangalore-560025Ph: 080-212-7042/43; 212-7225/26Email: [email protected]: www.integratedretail.com

IRMCIntegrated Retail Management Consulting

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Thank you!

IRMCIntegrated Retail Management Consulting

Thank You

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