Tag Archives: TCG Summit

TCG Summit – innovate to accelerate…and collaborate!

We meet in Berlin, in the shadow of the Brandenburg Gate, archetype of 20th Century history, with its memories of terrible conflicts but also the place of a remarkable peace which flowered in the ruins of the grim wall. Are we still in the war of technology retail? Or are we establishing a peace where the key players across the industry lay down their arms and look for ways to collaborate, and build an enduring omnichannel retail space in Europe?

Collaboration has been an important theme of the TCG Summit in the last 5 years. It is an aspiration waiting to be turned into reality. Alessandro Stanzani of Canon gave an impassioned plea for more data sharing – he gave statistics showing that 51% of online shoppers leave the Canon website and head straight for a retailer. If the manufacturer and retailer shared this customer information, the retailer could welcome the arrival on their website with a Canon banner, prepared and ready with precious browsing information from the customer’s previous online visit. This model exists already – it is called Amazon. As Henk de Jong, EVP at Philips put it “Amazon teaches us that data sharing is an important practice which we should do.” However, the internet giant has an advantage of being an integrated company, whereas retailers and manufacturers are frenemies. They collaborate most of the time, but in those activities where they compete – manufacturer online sales being the most flagrant example – the trust disappears and the motivation to build a powerful technology ecosystem withers.

Small trust building projects is the way forward. This is the Amazon approach – innovate quickly, assess and then progress. Some retailers retort that, before they share data, they need consistent support from all suppliers. This may happen, but it won’t happen quickly enough and by that time, the innovation and acceleration which were the themes of the conference, will have eaten up more traditional retailers who have not adapted fast enough to the new realities. As Enrique Martinez, CEO of Fnac Darty said in his opening remarks “yes, there will be more consolidation of retailers in the market.”

“Let’s start with sharing product availability data,” was the suggestion of Rick Londema, SVP at Sony Europe. “By sharing data there is so much space to gain cash and optimise inventory.”

Some are already collaborating with different partners to combine datasets, as mentioned by Helmar Hipp, CEO of Cyberport, the German etailer who are “using data and algorithms to predict customer trends.”

Chen Zhang, the CTO of China’s JD.com, the third largest internet retailer in the world, stretched our horizons beyond Europe and reminded us how digitally advanced the Chinese are. He shared JD’s progress in unmanned warehouses, customised manufacturing, dynamic pricing, drones and even delivery robots. And returning to the theme of collaboration – by working closely and sharing data with Nestle, they have reduced delivery times from 5-8 days to 2-3 days and increased on-shelf availability from 73% to 95%.

CONTEXTTCG

Martin Wild, CTO of MediaMarktSaturn, speaking at the TCG Summit

As in previous years, the TCG Summit has the power to surprise, motivate and enthuse its attendees about the future of technology retail. Martin Wild, a relative newcomer to the industry (Chief Innovation Officer of MediaMarktSaturn since 2011) resonated with urgency and a call to action to innovate and accelerate. “We are just at the beginning of change – we have to be open to transform everything in order to remain relevant.” And he proceeded to show us the depth of innovation at MediaMarktSaturn – from renting products to customers as part of the shared economy and outsourcing this to a 3rd party, piloting AR (70% of customers in the pilot said they liked it and wanted more), and building collaboration with other retailers (notably Schwarz group) to invest in start-ups for smart retail technology.

The future of technology retail is indeed to innovate in order to accelerate, but also to collaborate – this means sticking to your knitting – “the biggest instore experience is through the motivation of the 6,000 people who work in Fnac now” said Enrique Martinez. But it also means investment as MediaMarktSaturn is doing, all this against a background of Amazon’s spend of $18bn on IT and $27bn on R&D, and similar or maybe even greater sums by the Chinese retailers.

by AS

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Technology retail – darkest hour or rebirth?

Recent months have seen technology and consumer goods retail under pressure. In the last 12 months the stock market valuation of Dixons Carphone is down by 43%, Carrefour by 25%, Maplin is in administration, the combined valuation of Ceconomy and Metro AG is below its equivalent last year, whilst Amazon’s value has shot up by a staggering 84%, borne up by the bull market but once again benefiting from the high valuation accorded to successful ecommerce companies. The stock market is saying simply – this is where the future lies. Continue reading

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TCG Retail Summit – Top Themes for Future Retail Success

Guest blog by Chris Petersen, IMS

The TCG Summit represents a very unique gathering of top European Executives from across Europe. This year’s TCG summit, which was held at the end of March in Berlin, was particularly noteworthy in terms of the dominant recurring themes for future retail success, not only for technology, but all categories of retail. Even though the audience was primarily technology retailer and vendor leaders, innovations highlighted were less about the application of technology in the retail store, and much more about adapting to the most disruptive force in retail today – the omnichannel consumer.

Omnichannel is the New Normal
The underlying theme present in most of the presentations and panel discussions was omnichannel.   The TCG Summit in fact kicked off with Christophe Biget’s presentation focused on “innovation throughout the customer’s journey”.   From “walking in the customers shoes” to “customer centricity”, thought leaders were squarely focused on today’s consumer as a driving force of change in today’s retail.

If anyone had any doubts about omnichannel, it was key topic in almost every presentation and follow up panel discussion. The consensus in many discussions seemed to be that retailing is now moving beyond “omnichannel”.

“Experience is your product”
A top theme of both the presentations and panel discussions was focus on the customer experience as a key differentiator.   Jeffrey Sears from the Modernist group perhaps captured it best with his concept that “your [retailer] experience is your product”.   For traditional bricks and mortar retailers, the DNA now required is creating exceptional store experience as the new differentiator producing disruptive results. Despite all of the disruption from omnichannel, no one was predicting the demise of the retail store anytime soon. Many of the discussion panelists called out the need for new levels of partnership between vendors and retailers to “bring products to life”, particularly in stores.

Indeed, smart home products were frequently mentioned as the “poster child” for requiring hands on customer experience in store.   Smart home products are the growth category of the future that technology retailers are poised to lose … IF retailers don’t deliver an exceptional experience that connects products to the consumer’s life style.

Engagement – Yes we can!
The other underlying theme for future retail success is that retailers must develop internal DNA focused on customer engagement.   In the product centric past, it was enough to build stores, run ads and wait for consumers to come shop.   In today’s omnichannel world, consumers are very proactive and in control of their journey.   To be successful, retailers must focus on innovative ways to move from a passive display to proactive ways to engage customers where they are and how they want to purchase.

Perhaps the highlight presentation of the TCG 2017 Summit was from Nilesh Khalkho, CEO of Sharaf DG. Khalkho provided an amazing visual journey of Sharaf DG’s mantra of “Growing through Differentiation” in an omnichannel environment.   This journey included numerous examples of how retailers, especially technology retailers, will survive and prosper by truly differentiating on customer experience, engagement, and service.   The Sharaf DG story was a highlight that became a “Yes we Can!” rallying cry for what is possible in transforming technology retailing.

The Bottom Line – Results still Count
It is one thing for an executive team to say they are transforming to omnichannel, it is quite another to be able to execute omni-presence, experience and service 24/7/365.   There were a number of speakers and commentaries on the tremendous investments required to be able to create the experience and engagement demanded by today’s consumers.ETCG-Flashback-2017-43-2

As Adam Simon from CONTEXT highlighted, investors in tech retail are still looking for a return on their investment.   But achieving that return will require more than fiscal, operational expertise.   The successes, and the future of technology retail will require innovation on how to leverage talent in new ways that generate connected, customer relationships based upon a differentiated customer experience.

The bottom line for the future retail success – future success will not depend upon the sales transactions made today, but rather upon the customer relationships earned through engagement and services that will generate customer lifetime value.

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