BEYOND OMNICHANNEL STRATEGY, BUILD A OMNICHANNEL STRATEGY, BUILD A UNIQUE EXPERIENCE TO ENHANCE ... Case Study: Nordstrom Expansion ... Poor marketing message with highlights

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  • BEYOND OMNICHANNEL STRATEGY,

    BUILD A UNIQUE EXPERIENCE TO ENHANCE

    THE CUSTOMERS WAY OF LIFE

    (gun-il.son@accenture.com)

    Copyright 2015 Accenture. All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture

  • Korean Retail Market Trends

    106 103 104

    28 30 31

    42 45 49

    32 36 38 9

    12 13 9 11 13 22 22 18 1 6

    22

    0

    50

    100

    150

    200

    250

    300

    2011 2013 2015F

    Traditional Market Department Store Hypermarket Supermarket

    Convenience Store TV Home Shopping Online Shopping Mobile Shopping

    Market Size by Retail Category m-Commerce Characteristics

    Mobile Shopping

    CAGR

    180%

    Continuous growth due to the convenience

    - Anytime, Anywhere

    - Ease of use: Payment, search, VOD

    - Most Personalized Device : Easy to identify customer and provide targeted offer

    Mobile revenue has already surpassed EC revenue in 2014 Client Interview

    Recommended to establish strategy and design operating model for mobile business of high growth potential and profitability

    (Unit: Billion Won)

    Copyright 2015 Accenture All rights reserved.

    Source: Bureau of Statistics (2014) , accenture research

  • Mobile Commerce War

    200

    300

    400

    500

    600

    700

    800

    Coupang

    WeMP

    Tmon

    GS SHOP

    11th

    G Market

    Auction

    Top 5 Players Mobile Marketing Expense2) # of e-Commerce Mobile App Users1)

    14 1-2Q (Unit: Million Won)

    2,060

    384

    1,070

    734

    444

    (Unit: 10 thousand)

    Source: 1) Nielsen Korea (2014) , 2) Research Ad (2014)

    Copyright 2015 Accenture All rights reserved.

  • Exploring Retail Trends

    @ Global Level

    Copyright 2015 Accenture All rights reserved.

  • Personalization @ Scale

    Superior Customer Service

    Commerce 360

    Digital Empowerment

    Social Wave

    Context Retailing

    Copyright 2015 Accenture All rights reserved.

  • Personalization @ Scale

    Nervus System an Shapeways Foldable 3Dprinted dress was made with nylon powder-based 3D printer

    and designed with computer simulation and physics algorithms

    Adidas mi ZX Flux The app enables people to design their own Adidas shoes using their

    phones photo library.

    LOreal Makeup Genius It allows potential customers to virtually see themselves wearing

    makeup that isnt applied in real life..

    December 9, 2014

    Copyright 2015 Accenture All rights reserved.

    http://www.youtube.com/watch?v=B3UW5AXwWUQhttps://www.youtube.com/watch?v=OMh2icRuncA

  • Commerce 360

    Michael Kors shoppable Instagram posts

    #InstaKors asks consumers to sign up, linking their Instagram handle with an email address, and then sends them an email when they like a shoppable image on the

    brands Instagram feed.

    ASAP54 App ASAP54 is an image recognition app that can match photos of

    clothing and accessories to identical or similar products stored

    in its database. Marc Jacobs Pay with a Tweet

    The designer opened a Daisy fragrance pop-shop in New

    York, where customers could post on Twitter, share photos on

    Instagram or spread the news on Facebook to complete their

    purchases.

    Copyright 2015 Accenture All rights reserved.

    https://www.youtube.com/watch?v=lIQ48lFcMfs

  • Commerce 360

    Google Shop the Hangout

    Retailers can present their products while customers browse catalogue and purchase through the Hangout

    Neiman Marcus Snap. Find. Shop.

    Customers can snap a photo of an item they like and the app can

    search for similar item sold by the retailer.

    French Connection Youtique Brand FCUK created a series of interactive clips feature a stylist

    providing suggestions for different occasions.

    Copyright 2015 Accenture All rights reserved.

    https://www.youtube.com/watch?v=QLLMJPeclj8https://www.youtube.com/watch?v=dGvdv8scy4s

  • Digital Empowerment

    Amazon Dash

    Amazon brought a device to help customers make a shopping list by

    voice called amazon dash

    Flying Catwalk Italian fashion house Fendi live streamed its 2014 - 15 fashion show through a flying "Drone

    Cam"

    H&M H&M store in Times Square, enables customers to pay for items in the dressing room

    Copyright 2015 Accenture All rights reserved.

    http://www.youtube.com/watch?v=a9FKZ-zqKHQ&list=UUWpf8dFplG_k7HTTQBVllsA&index=1http://www.google.it/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=_lShv-LVPjSCCM&tbnid=_pcreueAv2-MAM:&ved=0CAUQjRw&url=http://www.style.com/stylefile/2014/02/fendis-drone-logic/&ei=z8MyU_KzD4KN0AWTi4DQCQ&bvm=bv.63738703,d.d2k&psig=AFQjCNHgzEM339YfD3-dEqKSSjZ0sEzT4A&ust=1395922172977632

  • Social Wave

    Adidas NEO Label tweet-powered fashion show

    Prior to the show, teens had the power to decide everything from music, lighting, and the set design

    to styling

    Topshop social catwalk hits Facebook and Instagram

    Five Instagrammers have been handpicked to curate Topshop channels for the duration of

    London Fashion Week.

    All Clothing Public

    Artists and everyday people get together on an online social platform to create clothing and share their creations with friends.

    Copyright 2015 Accenture All rights reserved.

    https://www.youtube.com/watch?v=EWD9GQ-iufM#t=72https://www.youtube.com/watch?v=U_9OCkWnJQI

  • Context retailing

    Amazon Prime Air

    Octocopter drones that fly products directly from an Amazon warehouse to your doorstep in 30

    minutes.

    Trunk Club

    A remote personal stylist is assigned to the customer. By creating a personal customer

    profile, a selection of clothing is delivered directly to the

    customers home.

    Shopping through the window at Kate Spades

    Shopping takes place through a large touch screen display on

    shop windows.

    Copyright 2015 Accenture All rights reserved.

    https://www.youtube.com/watch?v=n-3K2FVwkVAhttps://www.youtube.com/watch?v=98BIu9dpwHUhttps://www.youtube.com/watch?v=hXTZow98ZSI

  • Case Study: Nordstrom

    Expansion of Value Chain

    Company

    Overview

    Founded in 1901: Prestigious department store in US Operating 119 stores across 38 states (290 including

    department stores and outlets)

    Expand

    to

    Related

    field

    Growth strategy through expansion of Multi-channel

    Revenue Growth

    Outlet store (established in 73)

    Currently 167 stores in US (number of stores expected to

    increase up to 230 by 2016)

    Online outlet shopping mall (Acquired in 11) Every morning at 8am newly discounted products are uploaded, and deleted after certain time. Promoting instant purchase by limiting hold time.

    - Main products: clothing, accessories, cosmetics etc.

    63% 62% 57%

    23% 23% 24%

    14% 16% 19%

    2012 2013 2014Nordstrom Nordstrom Rack Online*

    11.8 12.2

    13.1

    Customized mens clothing shopping service (Acquired in 14) Stylist selects and sends out 8 customized products and

    allows 10 days for making a decision of whether to purchase or not

    *hautelook.com, nordstrom.com,

    nordstromrack.com, trunkclub.com

    Create synergy effect through M&A of various channels

    such as outlet, online, and mobile channels

    [Unit: Billion USD]

    Copyright 2015 Accenture All rights reserved.

  • Superior Customer Service

    Amazon MayDay The support service

    available on Kindle is a single-click support

    solution that lets users work with a remote tech support representative to solve problems with their

    tablets

    Neiman Marcus app for shopper recognition

    NM Service allows you see which sales associates are

    in store, message and make have many other

    benefits.

    The Zegna Digital Store

    It is a virtual 3D store and mobile application that imitates the feeling of

    being inside a retail location.

    Amazon MayDay

    The support service available on Kindle is a single-click support solution that lets users work with a remote

    tech support representative to solve problems with their

    tablets

    Neiman Marcus app for shopper recognition

    NM Service allows you see which sales associates are

    in-store, send them a message and has many

    other features to enhance the customer experience.

    The Zegna Digital Store

    It is a virtual 3D store and

    mobile application that imitates the feeling of

    being inside a retail location.

    Copyright 2015 Accenture All rights reserved.

    https://www.youtube.com/watch?v=X40j57v5g6I

  • 14 Copyright 2015 Accenture All Rights Reserved.

    Store Office

    Gym

    Concert

    Pub

    /Lounge

    Parking lot

    Library

    School

    Web

    Hairstylist

    Mobile

    Airport Station Hotel

    In the street

    Home

    Restaurant / Caf

    Museum

    Outdoor

    Gas station

    Theatre Cinema

    Catalogue

    Newspaper

    Flyer

    Store

    window Vending

    machine

    Sales

    Assistant Loyalty

    card

    Kiosk

    Contact

    center

    E-mail Social