Omnichannel retail allows traditional retailers to connect their existing channels such as brick and mortar or call centers to digital channels - online store, mobile app, social shopping channels and others. This presentation focuses on how this came to be, what are the bottlenecks in implementing omnichannel retail and why should retailers switch to this new approach. Probably the most compelling reasons to adapt to omnichannel retailing are today's customer demands. The customer wants 24/7 service and the same experience on all sales channels, whether it is the offline store, the mobile app or the brick and mortar outlet.

2. WE LIVE IN A CONNECTED WORLD
A WORLD CONNECTED THROUGH
THE INTERNET AND MOBILE DEVICES:

3. THEY’RE PRETTY
USEFUL WHEN
SHOPPING ALSO …
WE USE MOBILE DEVICES
TO CONNECT DIGITAL AND
PHYSICAL EXPERIENCES.
THOUGHTS, IDEAS,
PEOPLE.

4. INSTEAD, A NEW
MODEL EMERGES,
COMBINING THE BEST
OF BOTH WORLDS.
THOUGH ECOMMERCE WAS
EXPECTED TO REPLACE
OFFLINE SHOPPING,
THAT’S PROBABLY NOT
GOING TO HAPPEN.

5. MILLENNIALS PREFER SHOPPING IN STORES AS
OPPOSED TO SHOPPING ONLINE
LET’S HAVE A LOOK AT
THE NUMBERS:
Source: "Who are the Millennial shoppers? And what do they really want?" from Outlook 2013, No. 2, an Accenture publication.

6. YET ECOMMERCE IS
BOOMING
Source: http://www.statista.com/statistics/272391/us-retail-e-commerce-sales-forecast/

7. AND AMAZON’S BUSINESS MODEL
SEEMS LIKE A BETTER FIT FOR
GROWTH…
Source: http://netonomy.net/2014/06/23/amazon-vs-walmart-comparison-in-one-essential-chart/

8. SO WHAT IS HAPPENING?

9. WELL, CUSTOMERS LIKE TO PURCHASE
IN STORES, BUT THEY DON’T ALWAYS
DO THAT.
BORDERS EMPLOYED 19.500 PEOPLE
AND OPERATED 511 SUPERSTORES. IT
FILLED FOR BANKRUPTCY IN 2011.

10. PEOPLE LOVED THE BORDERS
EXPERIENCE, THEY LIKED TO TOUCH
AND BROWSE THE BOOKS…
BUT THEN THEY WENT ONLINE AND
PURCHASED ON AMAZON.
Source: http://netonomy.net/2014/02/06/biggest-retailers-closing-stores-important/

11. WE CALL THAT
“SHOWROOMING”. HERE’S
WHY PEOPLE DO IT:

12. IN THE FUTURE, THAT’S
WHAT STORES WILL BE:
SHOWROOMS. PLACES
WHERE CUSTOMERS CAN
EXPERIENCE PRODUCTS
WHICH CAN BE EITHER
PURCHASED IN STORE OR
SHIPPED HOME.
UNTIL THAN,
TRADITIONAL RETAILERS
FACE TODAY’S
CHALLENGES:

13. CONNECTING SILO-ED
CHANNELS:
- STORES
- ONLINE STORE
- CALL CENTERS
- MOBILE APPS
- SOCIAL SHOPPING APPS
… AND MORE
LET’S SEE HOW DID THEY
GET HERE:

14. THE COMPANY BUILT THE FIRST WALMART IN 1962 AND
STEADILY DEVELOPED INTO WHAT IT IS TODAY BY OPENING
STORES NEAR ITS CUSTOMERS.
TODAY IT HAS MORE THAN 11.000 STORES, IN 27 COUNTRIES
AND EMPLOYS MORE THAN 2.2 MILLION PEOPLE. THE
COMPANY IS THE BIGGEST RETAILER IN THE WORLD WITH A
REVENUE OF $485 BILLION.
TO SUPPORT THIS GROWTH THEY’VE BUILT PROBABLY THE
MOST INNOVATIVE SUPPLY CHAIN IN THE WORLD.
LET’S LOOK AT WALMART’S
PHILOSOPHY:
“GET CLOSE TO THE
CUSTOMER”

16. AND THEN AMAZON CAME
ALONG AND BET ON
DIVERSITY.
“PROVIDE THE CUSTOMER
WITH LOTS OF CHOICES”

17. Amazon offered more products than any of the typical brick
and mortar stores could, because of the economies they had
NOT actually stocking up on products.

18. NOR DID THEY HAD TO. THEIR BRAND WAS
STRONG, THEY WERE CLOSE TO A LARGE MARKET
AND HAD ADVANTAGES ONLINE PURE PLAYS DID
NOT.
MOST OF THESE HAD TO DO WITH BETTER
PARTNERSHIPS, BETTER SUPPLY CHAINS, A
BETTER DISTRIBUTION POLICY, AND MORE
MONEY TO SPEND ON ADVERTISING AND
MARKETING.
BUT THE LIKES OF
WALMART COULD NOT
JUST CLOSE STORES AND
OPEN ONLINE STORES
ONLY.

19. MOST TRADITIONAL RETAILERS UNDERSTOOD
THE IMPORTANCE OF ECOMMERCE. THEY DID NOT
UNDERSTAND HOW IMPORTANT IS AND HOW TO
MIX IT WITH THE OTHER CHANNELS.
SO THEY’VE BUILT ADDITIONAL DIGITAL
CHANNELS ON TOP OF EXISTING STRUCTURES.
KIND OF LIKE THIS:
WHAT THEY DID NOT HAVE
WAS A CLEAR DIGITAL
STRATEGY

20. THE RETAIL SILOS
Brick and
mortar silo
Ecommerce
silo
Social
media silo
Call center
silo
Brand

21. HOW DO CUSTOMERS INTERACT
WITH RETAIL SILOS?
Brick and
mortar silo
Ecommerce
silo
Social
media silo
Call center
silo
Brand

22. THE OFFLINE STORES COMPETED WITH THE ONLINE STORES,
THE ONLINE STORES REFUSED TO IMPLEMENT PICK UP IN
STORES POLICIES AND …
• EACH HAD ITS OWN INDIVIDUAL INVENTORY
• EACH HAD ITS OWN PRODUCT AND CUSTOMER DATABASE
• EACH WORKED WITH DIFFERENT MARKETING POLICIES
FOR EXAMPLE IT TOOK WALMART 11 YEARS TO IMPLEMENT A
SITE TO STORE PICK-UP POLICY:
HTTP://NETONOMY.NET/2015/04/22/3-STRATEGY-MISTAKES-BY-BIG-ONLINE-RETAILERS/
THE BIGGEST PROBLEM:
MOST OF THESE SILOS
WORKED INDEPENDENTLY
AND OFTEN, ONE AGAINST
THE OTHER.

23. THE CONCEPT OF
OMNICHANNEL RETAILING
WAS USHERED IN:
IT PROPOSES AN
UNIFICATION OF ALL
SALES CHANNELS IN ONE
SINGLE INTERFACE
AROUND THE CUSTOMER

24. A NEW WORLD – MACY’S
BET ON OMNICHANNEL
“GROW THE BUSINESS
AROUND THE CUSTOMER”

25. CROSS-DEVICE/
CROSS-CHANNEL

26. SHOPKICK GREETS CUSTOMERS
AND OFFERS PERSONALIZED
OFFERS

27. INTERACTIVE KIOSKS
PROVIDE PERSONAL
RECOMMENDATIONS

28. IN-STORE
FULFILLMENT

29. RESULT

30. THE REASON MACY’S
SUCCEED:
THE CUSTOMER WANTS A
360 O EXPERIENCE

31. CONSUMERS LIVE IN A
CONNECTED WORLD

32. CONSUMERS LIVE IN A
CONNECTED WORLD

33. HERE’S WHAT A TYPICAL
CUSTOMER JOURNEY MAP
LOOKS NOWADAYS:

35. TO CATER TO SUCH NEEDS,
RETAILERS NEED TO
THINK BEYOND THE
PRESENT SUPPLY CHAIN
MODEL

36. OMNICHANNEL DEMANDS ADVANCED SUPPLY
CHAINS, OPERATIONS AND PROCESSES

37. THE OMNICHANNEL
SUPPLY CHAIN IMPROVES
ON THE TRADITIONAL
SUPPLY CHAIN:

38. Source: https://payhip.com/b/eiW4

39. WHERE CAN YOU
START?

40. CHALLENGES IN
ADAPTING IN AN
OMNICHANNEL WORLD

41. MOBILE DEVICES AND MOBILE
EXPERIENCES ARE CRUCIAL TO
IMPLEMENTING OMNICHANNEL
RETAILING

43. MOBILE DEVICES BRIDGE THE ONLINE/
OFFLINE DIVIDE, WORK GREAT FOR
PERSONALIZATION, PAYMENTS,
PURCHASES BARCODE SCANNING AND
MORE:

44. Source: http://www.nielsen.com/content/dam/corporate/uk/en/documents/Mobile-Consumer-Report-2013.pdf

45. BEACONS WILL BE INSTRUMENTAL FOR
RETAILER-CUSTOMER INTERACTION IN
THE PHYSICAL WORLD

46. OMNICHANNEL
PAYMENTS
EXPECT OMNICHANNEL PAYMENTS TO
HAPPEN WITH THE USE OF NFC-ENABLED
DEVICES, ENABLING PAYMENTS ONLINE, IN
MOBILE APPS AND IN-STORE

47. BIG DATA ANALYTICS /
PREDICTIVE ANALYTICS
By gathering data from
all channels, it systems
will shift from data
gathering and analyzing
to predictive analytics
and prescriptive courses
of action

48. QUESTIONS?
CONTACT ME AT
MIHAI.DRAGAN@GMAIL.COM
DOWNLOAD THE PRESENTATION AT
WWW.NETONOMY.NET