Omnichanel Last Mile | A last mile benchmark series ... · express delivery, which is in line with...
Transcript of Omnichanel Last Mile | A last mile benchmark series ... · express delivery, which is in line with...
Omnichanel Last MileA last mile benchmark series — Russian retail marketElectronics & Telecom industrySeptember 2018
Slide 2 of 26© 2018 Deloitte Consulting LLC Omnichanel Last Mile
A last mile benchmark series — Russian retail market. Electronics & Telecom industry
Content
Omnichannel Visibility
02Delivery Terms
03
Return Terms
04
Methodology
05Executive Summary
01
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Slide 3 of 26
Executive Summary
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Slide 4 of 26
Introduction
Executive summary
The last mile benchmark seriesThe report on Electronics & Telecom is the first publication in the «Last mile benchmark series», where 170 retailers are compared in in delivery & return services.
MethodologyIndustry segments are compared to Best-in-Class segments in Moscow and cross-retail average, resulting in a scoring model per service categoryBased on the scoring model, the companies were rated as follows:
Least Performing Lagging On par Leading Best-in-Class
Lowest cross-retail score
Less than cross-retail average
Similar to cross-retail average
Higher than cross-retail average
Highest cross-retail score
Electronics & Telecom
Food & Beverage
Home Fashion & Apparel
Beauty & Care
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Key findings
Executive summary
Return locations
Return time window
Card payment on delivery
Store stock visibility
Lead times
Delivery costs
Free deliverythreshold
Premium delivery
Delivery locationsReturn
costs
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Key performance
indicatorsfor the
industry
Strong lead time offerings
Electronics & Telecom scoresLeading and Best-in-class in delivery lead time and delivery options choice.
Low delivery costs
Average Electronics & Telecom delivery costs are below cross-retail average.
Short return time
Average Electronics & Telecom return time window is significantly shorter than in other industries.
Industry strengthOn par capabilityImprovement opportunity
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Three things electronics & telecom could do to bring last mile services to the next level
Executive summary
Increase service levels when returning goods
Implement the return of goods for the creation of new business opportunities and customer acquisition
There are opportunities for enhancing this service through increasing the return window of quality goods, as well as using returns from courier services as a way to replenish POS inventories. Further advancement of return services is key to industry success.
Maintain leadership on delivery
Use advantages stemming from well-known and high demand goods in order to maintain high delivery standards
Short lead time for high tech and high demand goods is a competitive advantage for Electronics & Telecom.
Industry players lead in terms of delivery lead time and choice of delivery options (courier delivery, self collection, pickup points, parcel lockers).
Provide delivery-related, value-added premium services
Maximize benefits through offering value-added services
In addition to leadership in offering premium delivery services (including unconditional free delivery and premium same-day delivery), there are many revenue generating opportunities such as fine tuning of devices, installation of applications in relation to courier delivery, sale of consumables by subscription, pre-ordering goods and release day delivery.
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Omnichannel visibility
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Omnichannel visibility | Store Stock Visibility
14% 15%28%
86% 85%72%
AverageElectronics & Telecom
Store stock visibility
No visibility
%of co
mpanies
% showing store stock to consumers
Best-in-Class1
1 Home goods
-14%
Only 14% of Electronics & Telecom retailers provide stock visibility online Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
On par
14% of Electronics & Telecom retailers provide precise and current store stock visibility, which is 1% below the cross-retail average.
Meanwhile, the industry has significant potential for improvement as it lags behind Home industry (Best-in-Class in terms of providing stock visibility) by almost twofold (14% compared to 28%)
Moreover, companies of all industries are well positioned to develop their store stock visibility provision capabilities.
-1%
1 Home
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Delivery terms
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Last mile deliveryA last mile benchmark series — Russian retail market Electronics & telecom retailers
© 2018 Deloitte Consulting LLC
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Delivery terms | Delivery Times
% o
f co
mpanies
5%
62%
24%
5% 5% 0%13%
49%
21%
7% 4% 7%
< 1 дня 1-2 дня 2-3 дня 3-4 дня 4-5 дней > 5 дней
27hours
Average Best-in-Class2
1 Moscow 2 Food & beverage
The average Electronics & Telecom lead time1 is 42 hours, which is below cross-retail average
Leading
Electronics & Telecom retailers demonstrate high delivery standards. On average, consumers receive goods within 42 hours after ordering, faster than the cross-retail average (47 hours).
90% of Electronics & Telecom retailers deliver goods within 3 days. At the same time, lead time of all Electronics & Telecom retailers does not exceed 5 days.
Average lead times
42hours
Average Electronics & Telecom
47hours
Cross-retail average
Electronics & Telecom
Average
<1 day 1-2 days 2-3 days 3-4 days 4-5 days >5 days
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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19%14%
48%
19%
0%
13%
44%
32%
8%2%
RUB <150
RUB 150-300
RUB 300-500
RUB 500-1000
RUB >1000
14%
2%
1 Beauty & care
Delivery terms | Delivery costs
Average delivery costs for Electronics & Telecom is RUB 381, on par with cross-retail average
On par
The average delivery price for Electronics & Telecom is RUB 381, which is only 6% below the average delivery price for all industries (404 RUB).
At the same time, 14% of Electronics & Telecom retailers offer free delivery irrespective of the good price, which is the highest share in the retail industry.
% offering free delivery Average delivery costs in case of paid delivery
%of co
mpanies
Electronics & Telecom
Average
RUB 381
Average Electronics & Telecom
RUB 240
Average Best-in-Class1
RUB 404
Cross-retail average
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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91%
43%
73%
13%
38% 38%
0%
13%12%
44%
26%
8% 9%
RU
B <
1000
RU
B 1
001-
3000
RU
B 3
001-
5000
RU
B 5
001-
10000
RU
B >
10001
1 Beauty & care%
of co
mpanies
Average Best-in-Class1
Delivery terms | Free Delivery Threshold
Only 43% of Electronics & Telecom retailers set thresholds for free delivery, which is the ‘worst’ level in the industry
Least Performing
Electronics & Telecom retailers with free delivery thresholds account for 43%, which is significantly ‘worse’ than the cross-retail average for other industries (73%).
The average Electronics & Telecom free delivery threshold exceeds cross-retail average by 20% amounting to RUB 6,156 per purchase.
% offering free delivery above a
threshold
Average threshold for free delivery
Electronics & Telecom
AverageBest-in-Class
RUB 3,077
Average Best-in-Class1
RUB 6,156
Average Electronics & Telecom
RUB 5,105
Cross-retail average
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Slide 13 of 26© 2018 Deloitte Consulting LLC Omnichanel Last Mile
A last mile benchmark series — Russian retail market. Electronics & Telecom industry
Electronics & Telecom retailers ensure fast delivery to clients
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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19% 19%36%
81% 81%64%
Electronics &telecom
Cross-retailaverage
Best-in-Class
0.0
0.5
1.0
1.5
2.0
2.5
0 300 600 900
Additional costs, RUB
Lead tim
e reduct
ion, days
1 Home
1
Average Electronics & Telecom
Cross-retail average
Delivery terms | Premium Delivery
Nearly 20% of Electronics & Telecom retailers offer express delivery
On par
Almost 20% of Electronics & Telecom retailers offer express delivery, which is in line with cross-retail average. At the same time, the price that consumers pay for the reduction in delivery time is the highest for the industry and amounts to RUB 185 per each saved day.
% offering express delivery
Cost of express delivery versus lead time benefit
Express delivery
No express delivery
-17%
Electronics & Telecom
Average
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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38%
98%
57%
24%
100%
100%
Pick-uppoint
Store
Home
%of co
mpanies
1 Best-in-class per delivery location type
0%
76%
24%24%
59%
17%
Delivery terms | Delivery Locations
Electronics & Telecom retailers are Best-in-Class by the number of offered delivery location types
Best-in-class1
All reviewed Electronics & Telecom retailers offer at least two delivery location types.
The number of Electronics & Telecom retailers offering store delivery exceeds the cross-retail average by 23% (ranking second after Home industry).
Electronics
Average
1 2 3
Average number of location types
% offering location types
1.9
Cross-retail average
2.2
Average Electronics & Telecom (Best-in-
Class)1
# of location types
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Leading
The percentage of Electronics & Telecom retailers offering a card payment on delivery option for home delivery (71%) is bellow cross-retail average.
In the Leading segment (Home industry) 76% of retailers offer such option.
Card payment for home delivery option
71% 66%76%
29% 34% 24%
Electronics &
Telecom
Cross-retail
average
Best-in-Class
1 Home
% o
f co
mpanies
1
Delivery terms | Card payment on delivery
71% of Electronics & Telecom retailers provide an option of paying by card for home delivery
-5%
-5%
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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Return terms
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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5%-
9%5%
17%13%
Return terms | Return time window
48%
33%
14%
23%
40%
23%
38%
29%
4%
<7 days 7-14 days 15 -30 days
% o
f co
mpanies
1 Excluding food & beverage as well as beauty & care
2 Home
31-180 days >180 days
…
Electronics & Telecom retailers significantly lag behind in terms of the return time window with respect to quality goods
Electronics & Telecom has the shortest average return time window (15 days) among the reviewed industries, excluding the Food & Beverage as well as the Beauty & Care segments where the return of goods is subject to legal restrictions.
An average time of 15 days is due to the fact that the return time window for 19% of Electronics & Telecom retailers equals or exceeds 15 days.
Least Performing
Return time window for quality goods
Electronics & Telecom
Average1 Best-in-class
15 days
Average Electronics & Telecom
38 days
Cross-retail average1
72 days
Average Best-in-Class2
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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38%45%
56%
62%55%
44%
Electronics &Telecom
Cross-retailaverage
Best-in-Class1
Return terms | Return point selection option
38% of Electronics & Telecom retailers allow consumers to decide where to return
Least performing
38% of Electronics & Telecom retailers allow consumers to decide where to return, which is 7% bellow cross-retail average
Electronics & Telecom industry is far behind Fashion & Apparel (Best-in-Class) in terms of return point selection option, but still is 6% above Home industry.
Companies offering a return point selection option
1 Fashion & apparel
%of co
mpanies
Return point selection is available
Return point selection is not available
-7%
-18%
Executive Summary
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Delivery Terms
Return Terms
Methodology
Slide 20 of 26© 2018 Deloitte Consulting LLC Omnichanel Last Mile
A last mile benchmark series — Russian retail market. Electronics & Telecom industry
Electronics & Telecom significantly lags behind other industries in terms of the return time window for quality goods
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
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MethodologyOmnichanel Last Mile
A last mile benchmark series — Russian retail market. Electronics & Telecom industry© 2018 Deloitte Consulting LLC
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Slide 22 of 26
25 Companies
Sub industries
• Furniture
• Out-of-town Leisure and Gardening
• Tools and other equipment
• Decoration
Benchmarked industries
Methodology
Last mile performance of 170 retailers is benchmarked
48 Companies
Sub industries
• Groceries
• Food
• Beverage
43 Companies
Sub industries
• Apparel
• Footwear
• Sports
• Accessories
33 Companies
Sub industries
• Cosmetics
• Beauty and Health
• Care
21 Companies
Sub industries
• Consumer Electronics
• Telecommunications Companies
Electronics & Telecom
Food & Beverage
Home Fashion & Apparel
Beauty & Care
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Omnichanel Last MileA last mile benchmark series — Russian retail market. Electronics & Telecom industry
© 2018 Deloitte Consulting LLC
Slide 23 of 26
Benchmarked companies
Methodology
0 calories
101 Tea Sorts
220 Volt
Azbuka Vkusa
AKSON
Alyonka
Ambassador manufactura
Auchan
Beeline
Vernost kachestvu
VkusVill
Voskresnaya Yarmarka
Vse instrumenty
Cosmetics Gallery
Delikateska
Yves Rocher
Italyanskiye Traditsii
Kantata
Karusel
Key
Kofael
Kofemanych
Kupi orekh
Kupi oreshki
Lavka Coffey-Chay
Lenta
Letoile
M.Video
Marinel chay
MegaFon
Miratorg
More ryby
Moskhoztorg
MTS
Muzhik i myaso
Myasnoy No.1
Nastoyaschiy Syr
Perekrestok
Petrovich
Pirozhenka
Planeta chaya
Podruzhka
Pult
RAYT
Regard
Remit
Rive Gauche
Rybnyokean
Ryboedov
Salonnayakosmetika
Santekhnikaonline
SaturnStroyMarket
Sakhalinsky ikornydom
Svyaznoy
Severnyemoreprodukty
Semferm
Semchashek
Snow Queen
Sozvezdiye Krasoty
Sportmaster
Stolplit
StroitelnyDvor
SyrnyBoutique
SyrnySommelier
SyryMira
TvoyDom
Tekhnopark
Untsiya (Ounce)
Utkonos
Funduchok
Kholodilnik
TSUM
Chip and Dip
Chef Orekh
Pobeda Chocolate Plant
Eldorado
Yulmart
003.Ru
1001parfums.ru
Adidas
Agent Provocateur
Articoli
Askona
Beauty boutique
Beauty Discount Center
Beauty Home
Bershka
Bobbi Brown
BONPRIX
Butik.ru
Calvin Klein
Calzedonia
Castorama
Chicberry
Citilink
Clarins
Clinique
Columbia
Converse
Crocs
Decathlon
Deoshop.ru
DNS
Ecco
ePool.ru
Estee lauder
Expert Professoinal
Farfetch
French Kiss
H&M
Henderson
Hoff
HolySkin
Homеme
Ikea
Ile de Beaute
Incanto
Inglot
Intimissimi
Isolux.ru
Kiehl's
KikoMilano
KupiVip.ru
Kuvalda.ru
Lamoda
Leroy Merlin
L'Occitane
Lush
MAC
Makeup
MANGO
Marks&Spencer
Mascotte
Massimo Dutti
mebelvia.ru
Meb-Online.ru
Media Markt
Metro Cash & Carry
mnogomeb.ru
NEXT
Nike
NYX
OBI
Onlinetrade
Orexland
Oriflame
Ostin
Oysho
Ozon.ru
Pazolini
PUDRA
Pull&Bear
Quelle
Re store
Reebok
roskosmetika
Samsung
Sony
Stradivarius
Tasty Coffee
Tezenis
The Body Shop
TJ collection
Tom Tailor
TVOE
United colors of Benetton
Wildberries
ZARA
Zarina
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Slide 24 of 26© 2018 Deloitte Consulting LLC Omnichanel Last Mile
A last mile benchmark series — Russian retail market. Electronics & Telecom industry
Contacts
Methodology
Research participants
• Diana Kuzmicheva
• Dmitrii Ermolaev
• Elizaveta Shramkova
Irina Biryukova
Andrey Semenov
Stanislav Kim
Vladislav Chechetkin
Vardan Gasparyan
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
Slide 25 of 26© 2018 Deloitte Consulting LLC Omnichanel Last Mile
A last mile benchmark series — Russian retail market. Electronics & Telecom industry
Become the best-in-class retailer, Today
Thank you.
Executive Summary
Omnichannel Visibility
Delivery Terms
Return Terms
Methodology
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