New Retail - The New Horizon of Retail
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China has the largest internet market in the world with over 800 million online users, and dominates sectors like e-commerce, mobile payments, and venture funding for internet companies; 'New Retail' aims to merge online and offline retail by using technologies like data analytics, IoT, and mobile payments to improve the customer experience; Examples of new retail in China include convenience stores that allow ordering through a mobile app for delivery within 30 minutes and wine stores that transformed their logistics model to directly ship products to stores.
New Retail - The New Horizon of Retail
- 1. CEO, Baidu Brasil President, CBIPA (China-Brazil Internet Promotion Agency) President, ABRIA (Brazilian AI Association) Yan Di NEW RETAIL THE NEW HORIZON
- 3. You Only Know Half of the Internet
- 5. CHINA –BIGGEST INTERNET MARKET China’s Online Population = US + India With This Size, China’s Online Economy Has a Presence in GDP Much Bigger than That of US
- 6. CHINA HAS 5 OF TOP10 COMPANIES OF INTERNET & 6 OF TOP10 UNICORNS World’s Top Unicorns of Internet Ranking Company Market Cap （U$ Billion） 1 Google 815 2 Amazon 707 3 Tencent 558 4 Facebook 546 5 Alibaba 524 7 Netflix 118 6 Priceline 92 8 Baidu 85 9 JD 70 10 NetEase 42 * Date: 31-01-2018 World’s Top Companies of Internet*
- 7. CHINA – BIGGEST E-COMMERCE MARKET 40% of World’s E-commerce is in China 2017 GMV: U$750Bi 11.11.2017 (Chinese Black Friday) Single Day GMV: U$40.3Bi = 3 Years of Brazilian E-Commerce
- 8. CHINA – BIGGEST MOBILE PAYMENT MARKET China Transacts U$9 Trillion via Mobile Payment, 80x Bigger than the US 80X Bigger than US! 166X Bigger than US!
- 9. CHINA IS THE WORLD’S BIGGEST VENTURE FUNDING POOL China became the biggest venture funding pool in the world raising over USD 100B in 2016 Year Asset Acquirer/Investor Amount （U$ Billion） 2016 Supercell Tencent 8.6 2016 Playtika Century River Cruises 4.477 2017 GrabTaxi Didi 2.5 2017 Ola Cabs Tencent 2 2017 Tesla Tencent 1.778 2016 Skyscanner Ctrip 1.77 2016 AppLovin East Willing 1.4 2017 Flipkart Tencent 1.4 2016 Opera GoldBrick Capital 1.259 2017 Go-Jek Tencent 1.2 Top 10 Overseas Investments/M&A by Chinese Internet Players 2016-17
- 10. CHINA’S INTERNET EVOLVING SURPRISINGLY FAST Driverless Car KITTI vehicular recognition accuracy rate: 90.13%, highest in the world. Voice & Facial Recognition 97% & 99.77%
- 11. CEO, Baidu Brasil President, CBIPA (China-Brazil Internet Promotion Agency) President, ABRIA (Brazilian AI Association) Yan Di NEW RETAIL THE NEW HORIZON
- 12. YOU MAY HAVE BEEN IMPRESSED BY CHINA – BIGGEST E-COMMERCE MARKET 40% of World’s E-commerce is in China 2017 GMV: U$750Bi 11.11.2017 (Chinese Black Friday) Single Day GMV: U$40.3Bi = 3 Years of Brazilian E-Commerce
- 13. NOW IMAGINE A POINT OF SALES, BUT NOT LIKE ANY POS Everything is Paid by App, Which You Will Use to Order at Home with More Frequency; More Importantly, Their ASPU (Average Sale per Unit Area) is 4 Times Bigger Than the Peers’ & Now ProfitableWith a Better Supermarket XP, As They Cook For You With a Better Restaurant XP, As They Deliver For Free in 30Min With a Better Logistics Efficiency, As They Use the Store for Storage All Logistics Data is Synched Online with Offline
- 14. WELCOME TO NEW RETAIL A User-Centric & Data-Driven Online-Merged with-Offline Retail Revolution
- 15. A FULL-SCALE WAR BEING WAGED ON NEW RETAIL Alibaba’s Warfare in New Retail JD’s Warfare in New Retail
- 16. NEW RETAIL THE TIP OF UNKNOWN ICEBERG, THAT WILL EVENTUALLY SINK YOUR TITANIC Take it as warning: In the near future, the biggest online & offline retail player will be the same. (Think WholeFoods) Kevin Kelly 10%
- 17. WHY NOW: THE RISE OF NEW CONSUMER
- 18. THE NEW GENERATION CONSUMERS DEMAND MORE & SUPERIOR EXPERIENCE BEFORENEW COSUMER Product Demand • Cost-effectiveness • High Quality & Professional • Personalization Product Demand • Cost-effectiveness • Functionalities • Durability Experience Demand • Service Delivery XP • Targeted Discount • Social Interaction • Cultural Identity Experience Demand • Purchase XP • After-sales XP
- 19. WHY NOW: THE WAR ONLINE VS. OFFLINE
- 20. THE WIND OF CHANGE INTO THE FACE OF OFFLINE World’s Largest Store, Macy’s Closed 100 Stores & Laid Off 10,000 Staff
- 21. IS OFFLINE RETAIL'S FUTURE DOOMED? Offline Retail Traffic Offline Retail Volume Offline Retail Cost Offline Retail Profit
- 22. ON THE OTHER HAND, CLICK IS EQUALLY EXPENSIVE AS BRICK China’s Leading B2C E-Commerce Now has Almost The Same Cost & Gross Margin of Leading Offline Retail! Online Cost of Traffic+Storage/Logistics = Offline Cost of Rental+Labor Average Online CAC R$50-75! Google CPC +36% Increase in 2017, & CTR -13% (All Platform), -25% (Mobile) ONLINE IS EXPENSIVE!
- 23. OFFLINE IS ABOUT EXPERIENCE, LAST MILE CAN NEVER BE REPLACED The Nature of Certain Goods Limits Further Penetration of Online E-CommerceOffline is Always About Experience FMCG – Fast Moving Consumer Goods (water, chewing gum, juice, beer, softener…)
- 24. HOW IT WORKS
- 25. KINDLY REMIND YOU The New Retail is To Make Consumer Willing to Pay the EXPERIENCE Beyond Product Functionalities
- 26. NEW RETAIL KEY ELEMENT: PEOPLE User Data Should be Omnipresent/Visualizable/Trackable/Optimizable, Through All Elements “Lead, Purchase, User Loyalty, Feedback” Blur Group Silhouette • Location • Gender • Age • Income Level • …… Holographic Segmentation • Actress • In Her 30’s • Mother of 2 Sons • Social Celebrity • …… Find Your Most-Valuable Users that Self- Organize & Self-Produce Content/Products NEW RETAILBEFORE
- 27. NEW RETAIL KEY ELEMENT: PLACE Place Definition Supermarket/Shopping Mall/Convenience Store/E-Commerce Live Streaming/Event/Smart Devices/VR+AR… Data Collection Online (via App) + Offline (In-Store IoT) Security Real-time Customer Tracking Layout Optimization Based on User Segmentation Real-time Promotion Through Digital Tag & Based on User Behavior Auto Checkout Automatic Checkout (via Mobile Payment or Facial Recognition) Stock Optimization Real-time Stock & Logistics Management
- 28. NEW RETAIL KEY ELEMENT: PRODUCT OEM/ODM BRAND WHOLESALE/RETAIL/CONSUMER C2B: Consumption Leads Manufacture Product Does Not Only Refer to Tangible Goods, But Goods + Content + Service! 1 2 Smart Logistics
- 29. WHO LEADS THE NEW RETAIL REVOLUTION: ONLINE OR OFFLINE? • FINANCIAL RESOURCES (Alibaba Invested R$200MM in a Single Pilot Project, More Than the Margin of Some Traditional Offline Retail Players) • TECHNOLOGY RESOURCES (Big Data, IoT, AI…) In China It is Online that Leads Offline, But Taking into Consideration that No Consolidated Leader in Brazilian Market & Possible Technology Transfer from China, We Never Know.
- 30. CASES
- 31. CASE 1: HEMA SUPERMARKET Highlights Obligatory Use of App to Sync Online & Offline Data Flow Cultivate User Habit to Use App to Order at Home of a Much Higher Frequency (Free Within the Range of 3Km in 30 Min) User Experience “Buy & Eat” via In-Store Restaurant Use App for Better Mobile Payment Logistics Use Store for Storage for Unified Online & Offline Stock Management In-Store Pick-up by Staff & In-Store Conveyer Belt Staff Equipped with Smart Device for Indoor Navigation, Facilitated by RFID Digital Tag to Update Real-time Price & Promotion
- 32. CASE 2: KIDSWANT MOTHER & BABY CHAIN STORES Highlights From Product to Value-Added Service Sale: 100 Stores with 10MM Active Service Membership Sold to Drive Highest User Interactivity & Loyalty. Aggregate Value through Services Turn 50% of In-Store Staff to a Mix of Service Specialists: Nutritionist, Nursing Personnel, Children Growth Trainer Besides Online Activities, +700 Offline Events Organized per Year
- 33. CASE 4: 1919 WINE CHAIN STORES Highlights China’s Biggest Wine Direct Sale Platform, 100x Rev. Increase in 6 Years! Transform Typical Costs of “Storage + Logistics + Rental + Labor” to Costs of “Rental + Labor” Only Logistics Omnichannel of Online & Offline Factory Direct Shipment to Stores Build Store Density to Ease Logistics Store Staff = Delivery Team, Turn Typical E- Commerce Logistics Cost of 10% into a 0.5% Delivery Commission
- 34. CASE 4: BINGOBOX, WORLD’S FRIST SCALABLE UNMANNED STORE Wechat Bundled to Understand User Preference; RFID-Enabled Goods; AI (Facial Recognition) for Security; Mobile Payment; Cost-Effective Operation; High Mobile/Close to You
- 35. GO EAST START THE PILOT
- 36. 2017 Brazil Roadshow Beijing THE ONLY INTERNET REPRESENTATIVE ENTITY BETWEEN &
- 38. Contact Our Team Felipe Zmoginski Whatsapp: +11-972458059