Unified Commerce

Strategy | CX Design | Digital Carson McKelvey Managing Partner

Retail

Why are we still talking about Digital?

Digital Commerce contributed 45% of retail revenue in 2016

Gartner, 2017

Retail Executives when asked to rate their company’s Digital Maturity

51% 0

1

2

3

4

5

6

7

Newborn

1%

84%

of retailers say they struggle to deliver a consistent customer experience

8

9

10

Sophisticated of consumers feel their expectations are actually being met by retailers consistently

Forrester, 2016; Forbes, 2016

2.3 Billion

Smartphone Users Worldwide

Statista, 2017

24% Retailers

actually have a mobile strategy

BRP, 2016

77% CONSUMERS

use their mobile device while in-store

KPMG, 2017

5% RETAILERS

have the capability to engage and service customers through mobile while in-store

BRP, 2016

85% CONSUMERS

buy more when provided a personalized experience by store associates

Accenture, 2016

13% RETAILERS

use clienteling tools to identify customers and personalize staff engagements with customers

BRP, 2017

#1

CONSUMER disappointment is outof-stock merchandise

Cognizant, 2015

12% RETAILERS

have the ability to save sales lost due to out-ofstock merchandise

BRP, 2017

Every customer is a

DIGITAL CUSTOMER

None of this is Revolutionary

RETAIL TABOO The Reality of Executing a Digital Transformation

3 PILLARS

of Digital Transformation in Retail

#1

Channels Don’t Matter

The inherent problem with Omnichannel is that it is still a channelbased strategy

BRP, 2017

Let’s rewind 15 years…

VS

the year was 2003… Best Buy realized they could not compete with Walmart’s consumer electronics on price…

COMPETITIVE Paradigm Shift

Pure Price

Customer Experience

Omnichannel was born!

Register

Web Shop

4P’s

Solutions

Took store staff from behind the register and brought them to the floor

O2O

Made their web shop more than just another shop, but a portal to all stores, online and offline

Service

Looked beyond traditional marketing and focused on providing excellent service

BestBuy mastered the most important tenant of omni-channel…

CUSTOMER CENTRICITY

BEAT

Better Service

Stronger Knowledge

WITH…

More Convenience

Fast forward back to today…

CONNECTED Mobile

SMART AI

GLOBAL Cloud

Today, retailers need to provide an ecosystem for their customers by providing a platform that is built to cater to their lifestyle

BRP, 2017

VIRC Framework Consumer Thinking for Retail Tofugear uses this framework to measure the 4Cs outcomes and the business implications of implementing new Unified Commerce services or experiences. 1. Customer Value Proposition Does it drive engagements? New streams of value? Better experience? More convenience? 2. Data Capture Capability Are we able to learn more about customer preferences? Gain insights into customer behavior? Measure value of the engagement? 3. Build Stronger Relationships Can we use newly captured insights to offer a better customer experience? Provide personalized products/services? Enhance the customer relationship?

CONVENIENCE

INCREASE QUALITY OF CUSTOMER EXPERIENCE

COMMUNITY

COMMERCE

LEVERAGE EMOTIONAL BRAND PURPOSE

INCREASE EFFICIENCY AND REDUCE COMPLEXITY

CONNECTIVITY

IMPROVE CUSTOMER DATA AND ANALYTICS

4. Business Value Will we increase sales? ROI? Reduce CAC? Reduce cost of retention? INCREASE SALES AND PROFIT

Understand how your customers are using technology in day-to-day life, not just for shopping.

Become indispensable

#2

It’s not just for CIOs

CIOs are not the superheroes of the digital transformation story of your business

IT budgets for Digital Initiatives are Increasing… Increase

80

Stay the Same

19

Decrease

1

Don't Know

0

0

10

20

30 40 50 60 Percentage of Respondents

70

80

90

Gartner, 2017

they are increasing on average by 21% 40%-50%

5

30%-39%

13

20%-29%

32

10%-19%

40

Less than 10%

10

Don't know

0 0

5

10


35

40

45

Gartner, 2017

47% of Digital Initiatives are led by IT… CIO and/or CTO

32

CEO or company owner

26

Chief Digital Officer

14

EVP, SVP, VP of e-Business or e-Commerce

12

Chief Digital Marketing Officer

7

CMO

6

Chief Innovation Officer

1

CXO

1

Others

2 0

5

10

15 20 Percentage of Respondents

25

30

35

Gartner, 2017

yet 65% of Digital Initiatives are funded by business units CEO or company owner

39

CIO and/or CTO

26

EVP, SVP, VP of e-Business or e-Commerce

15

Chief Digital Officer

9

CMO

4

Chief Digital Marketing Officer

4

Chief Innovation Officer

1

CXO

1

Others

2 0

5

10


35

40

45

Gartner, 2017

Digital initiatives often get stuck due to lack of digital business capabilities

Digital teams are only part of the answer

BUSINESS

OPERATIONS

“CIOs must become trusted advisors to senior management in the digital business transformation journey. MARKETING

EXPERIENCE

They must guide the business on how to deploy a modernized technology foundation to create new streams for competitive advantage in a volatile, unpredictable and industry blurring business environment.” - Robert Hetu, Gartner, 2016

Top 5 Challenges of Digital Transformation 63% Changing company culture

59% Thinking beyond a “campaign mentality”

56%

56%

Cooperation between departments and silos

Resources and budget allocation

53% Understanding the connected consumer

Transformation of relationships within the business

RIDER – Rational Brain

ELEPHANT – Emotional Brain

THE PATH – Our Environment

To deal with change, the Rider and the Elephant must be in sync with each other

Establish a

Dream Team

Sales Marketing

Management

Operations

Cross-Functional Team

Store Associates

IT

Finance Customer Relations

What we have in common: • Goals • Objectives • KPIs

Change Culture

Greater Collaboration

Outcomes

Effective Allocation

Lasting Results

Make digital initiatives aligned not only with the customer experience, but digital business capabilities as well.


#3

”Innovation is Now”

Your customers won’t be buying data, innovation or technology

They don’t think in terms of channels, systems or touch points

Then why do you?

43% RETAILERS

develop software in-house

Why Retailers Still Build In-House Software Vendor-client relationships between technology providers and businesses are hampering agility and effectiveness of digital initiatives We have the resources in-house

62

Less expensive to develop in-house

60

Packaged has too many functions that we do not require

47

Packaged does not have the functionality required

36

Unable to obtain management buy-in and support

24

We are unaware of the benefits of utilizing an external software provider

23

We are anaware of who provides digital commerce platform software and services

19

Other reasons not listed above

6 0

10

20

30 40 50 Percentage of Respondents

60

70

Gartner, 2017

Innovation is inherently collaborative

Work with an Innovation Partners

Tofugear partnered with Wacoal Taiwan and Peach John to see what having Unified Commerce means to them as a new entry to the Taiwan market

Within 1 week of their grand opening in Taiwan, Peach John sold 3 months worth of top SKU inventory

How did they do this?

EQUATION FOR RETAIL ECOSYSTEM SUCCESS

Store + CX + Education = Lifestyle x Unified Commerce

Coupon Marketplace enabled Peach John to dynamically control the value of loyalty rewards Managing liability and providing a more personalized experience for their customers All centered Peach John ecosystem, seamlessly connected by a Peach John Lifestyle App

Sales by Channel

App Downloads

As of Dec, 2017

As of Dec, 2017

~38,774

App 28%

(~6 months)

In-Store 51%

~10,000

Web 21% (~4 years)

Japan

Taiwan

App

App

Create an ecosystem that not only enables, but enhances a branded customer lifestyle.


About Us We offer solutions tailored for…

Fashion

Accessories

Beauty

Jewelry

Home

Electronics

50+

engineers, developers and retail industry experts

40+

countries and regions across Asia, NA, and Europe

20+

partners & collaborators

Reimagined in 2014, our passionate team of experts all come from the retail industry, specializing in store operations, supply chain, digital commerce and most importantly, the connected consumer.

Our Services

Commerce Solutions Fill the gaps and complete your unified commerce technology ecosystem.

Unified Commerce End-to-end Unified Commerce package tailored to your business, ready to scale.

Incite Transformation Start your Digital Business Transformation journey the right way.

Modules • Omnitech OS • Digital Commerce (eComm/WeChat) • Mobile Commerce (Mobile App) • Store Commerce (POS) • Clienteling Tools • IoT Solutions • RFID Inventory Management

Platform • Omnitech OS with full Unified Commerce Suite (Web/Mobile/Store) • Digital Customer Experience Design • Custom IoT Solutions • Pilot-based Implementation • Integration with CRM/CMS/ERP/etc…

Services • Tofugear Incite Partner Program • Digital Business Transformation Accelerator • Stakeholder Workshops and Consultations • Digital Customer Experience Design • Concept Store(s) / Innovation Labs

Pricing Initial setup + customization Monthly license fee (fixed or % of sales) Includes Cloud Hosting & Maintenance Hardware billed separately

Pricing Initial setup + customization Monthly license fee (fixed or % of sales) Includes Cloud Hosting & Maintenance Hardware billed separately

Pricing Billing based on deliverables and partner fees Standard billing for Commerce Solutions and/or Unified Commerce as provided

Additional Services • Custom UI/UX Design • CRM/CMS/ERP/integration • API connectors for existing modules

Additional Services • System integration • Custom module design • Commerce Solutions additional services

Additional Services • Unified Commerce Pilot • Vendor Selection and Management • Unified Commerce additional services

STRATEGIC

ACCELERATED

UNIFIED

We partner with our clients to create greater value and maximize business results

Rapid experimentation, constant teration, endless innovation

360 view of your customers and your business, a fullyAPI integrate-able platform

WHY TOFUGEAR?

SCALABLE

TAILORED

LICENSED

From pilot to full implementation, solutions that scale with your business

Platforms configured for your customers, stakeholders and your business

Flexible Software-as-a-Service model that fits any business size

THANK YOU! Tofugear Limited, 4/F Fuk Wo Industrial Building, 5 Sheung Hei Street, San Po Kong, Kowloon, HK

(852) 5478 8853 [email protected] www.tofugear.com