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The Impact of The Impact of Technology on the Technology on the Retail EnvironmentRetail Environment
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The Impact of The Impact of Technology on the Technology on the Retail EnvironmentRetail Environment
bringing market driven solutions to companies bringing market driven solutions to companies with significant property portfolioswith significant property portfolios
operational strategists at the cutting edgeoperational strategists at the cutting edge focus on infrastructure integrationfocus on infrastructure integration specialists in retail property and e-commercespecialists in retail property and e-commerce value adding to property portfoliosvalue adding to property portfolios expertise with telco’s and financial institutionsexpertise with telco’s and financial institutions setting performance measurements and setting performance measurements and
benchmarks for CRE and IRE , who are each benchmarks for CRE and IRE , who are each examining new ways of doing business and examining new ways of doing business and setting up more flexible infrastructuressetting up more flexible infrastructures
bringing market driven solutions to companies bringing market driven solutions to companies with significant property portfolioswith significant property portfolios
operational strategists at the cutting edgeoperational strategists at the cutting edge focus on infrastructure integrationfocus on infrastructure integration specialists in retail property and e-commercespecialists in retail property and e-commerce value adding to property portfoliosvalue adding to property portfolios expertise with telco’s and financial institutionsexpertise with telco’s and financial institutions setting performance measurements and setting performance measurements and
benchmarks for CRE and IRE , who are each benchmarks for CRE and IRE , who are each examining new ways of doing business and examining new ways of doing business and setting up more flexible infrastructuressetting up more flexible infrastructures
OutlineOutlineOutlineOutline
The Retail environmentThe Retail environment
US and Australian experienceUS and Australian experience
Impact of technology and the Retail quandImpact of technology and the Retail quandaaryry
Convergence implicationsConvergence implications
Business models - from Place to SpaceBusiness models - from Place to Space
Impact on property and business managementImpact on property and business management
The Retail environmentThe Retail environment
US and Australian experienceUS and Australian experience
Impact of technology and the Retail quandImpact of technology and the Retail quandaaryry
Convergence implicationsConvergence implications
Business models - from Place to SpaceBusiness models - from Place to Space
Impact on property and business managementImpact on property and business management
What’s happening now in AustraliaWhat’s happening now in AustraliaWhat’s happening now in AustraliaWhat’s happening now in Australia
Retailing accounts for > 30% of Aust. economy($120b)Retailing accounts for > 30% of Aust. economy($120b) 50% of Aust. families own computers and half on net50% of Aust. families own computers and half on net Australians 5th largest internet users in worldAustralians 5th largest internet users in world 3.5 m. users; predicted to double by 20023.5 m. users; predicted to double by 2002 Internet generated revenue $2.1b to grow to $16b by Internet generated revenue $2.1b to grow to $16b by
20022002 63% of internet users are>30 year old bracket63% of internet users are>30 year old bracket US market growing at an annualised rate of 190%; US market growing at an annualised rate of 190%;
Australian market 18 months behindAustralian market 18 months behind Recent ACRS report showed:Recent ACRS report showed:
42.5% of retailers have an e-commerce strategy, with a 42.5% of retailers have an e-commerce strategy, with a focus on information and brand building;focus on information and brand building;
specialty retailers’ internet sales to increase from 15.8% this specialty retailers’ internet sales to increase from 15.8% this year to 61.9% in 2002year to 61.9% in 2002
Retailing accounts for > 30% of Aust. economy($120b)Retailing accounts for > 30% of Aust. economy($120b) 50% of Aust. families own computers and half on net50% of Aust. families own computers and half on net Australians 5th largest internet users in worldAustralians 5th largest internet users in world 3.5 m. users; predicted to double by 20023.5 m. users; predicted to double by 2002 Internet generated revenue $2.1b to grow to $16b by Internet generated revenue $2.1b to grow to $16b by
20022002 63% of internet users are>30 year old bracket63% of internet users are>30 year old bracket US market growing at an annualised rate of 190%; US market growing at an annualised rate of 190%;
Australian market 18 months behindAustralian market 18 months behind Recent ACRS report showed:Recent ACRS report showed:
42.5% of retailers have an e-commerce strategy, with a 42.5% of retailers have an e-commerce strategy, with a focus on information and brand building;focus on information and brand building;
specialty retailers’ internet sales to increase from 15.8% this specialty retailers’ internet sales to increase from 15.8% this year to 61.9% in 2002year to 61.9% in 2002
Why the Net? ... InformationWhy the Net? ... Information
Historic trade-off Catalogues
REACH(Customers contacted)
RICHNESS(amt. of info,degree of interaction)
INTERNET(rich info at zero management cost)
LO
HI
HI
The retail quandThe retail quandaaryryThe retail quandThe retail quandaaryry how to open new distribution channels without losing old how to open new distribution channels without losing old
ones (replacing bricks and mortar with digital assets)ones (replacing bricks and mortar with digital assets)
direct to consumers via web, or protect traditional channelsdirect to consumers via web, or protect traditional channels the new consumer mantra - my time, my placethe new consumer mantra - my time, my place successfully tying together digital and physical commerce is successfully tying together digital and physical commerce is
not easily replicable by online firmsnot easily replicable by online firms managing the supply chain to meet increased demandmanaging the supply chain to meet increased demand the delivery chain that runs forwards towards customers has the delivery chain that runs forwards towards customers has
hardly changed at all in the past 100 years …until nowhardly changed at all in the past 100 years …until now inadequacy of online ordering unless linked with real world inadequacy of online ordering unless linked with real world
fulfilmentfulfilment
how to open new distribution channels without losing old how to open new distribution channels without losing old ones (replacing bricks and mortar with digital assets)ones (replacing bricks and mortar with digital assets)
direct to consumers via web, or protect traditional channelsdirect to consumers via web, or protect traditional channels the new consumer mantra - my time, my placethe new consumer mantra - my time, my place successfully tying together digital and physical commerce is successfully tying together digital and physical commerce is
not easily replicable by online firmsnot easily replicable by online firms managing the supply chain to meet increased demandmanaging the supply chain to meet increased demand the delivery chain that runs forwards towards customers has the delivery chain that runs forwards towards customers has
hardly changed at all in the past 100 years …until nowhardly changed at all in the past 100 years …until now inadequacy of online ordering unless linked with real world inadequacy of online ordering unless linked with real world
fulfilmentfulfilment
Impact of technology - US trendsImpact of technology - US trendsImpact of technology - US trendsImpact of technology - US trends Online US chains (Wal-mart, GAP, Nordstrom) are Online US chains (Wal-mart, GAP, Nordstrom) are
considering a multi-channel approach that includes considering a multi-channel approach that includes aggressive global expansion policies including major on-aggressive global expansion policies including major on-line strategiesline strategies
stores are creating effective feedback loops:stores are creating effective feedback loops: store - website - catalogue - storestore - website - catalogue - store
physical retailers are setting up effective feedback loops physical retailers are setting up effective feedback loops between stores and websitesbetween stores and websites
bricks and mortar sites become the best advertisements bricks and mortar sites become the best advertisements that online brands can buythat online brands can buy
big box retailers on the movebig box retailers on the move:: Kmart with YahooKmart with Yahoo Wal-Mart with AOLWal-Mart with AOL Microsoft and Best BuyMicrosoft and Best Buy
Online US chains (Wal-mart, GAP, Nordstrom) are Online US chains (Wal-mart, GAP, Nordstrom) are considering a multi-channel approach that includes considering a multi-channel approach that includes aggressive global expansion policies including major on-aggressive global expansion policies including major on-line strategiesline strategies
stores are creating effective feedback loops:stores are creating effective feedback loops: store - website - catalogue - storestore - website - catalogue - store
physical retailers are setting up effective feedback loops physical retailers are setting up effective feedback loops between stores and websitesbetween stores and websites
bricks and mortar sites become the best advertisements bricks and mortar sites become the best advertisements that online brands can buythat online brands can buy
big box retailers on the movebig box retailers on the move:: Kmart with YahooKmart with Yahoo Wal-Mart with AOLWal-Mart with AOL Microsoft and Best BuyMicrosoft and Best Buy
From Market Place to From Market Place to Market SpaceMarket Space
From Market Place to From Market Place to Market SpaceMarket Space
value creation has moved from Place to Spacevalue creation has moved from Place to Space currently, retail chains have value creation distributed through both Place and Space:currently, retail chains have value creation distributed through both Place and Space:
Place (mfg, packaging, distn, mktg)Place (mfg, packaging, distn, mktg) Space (e-payment, EDI from mfrs, info on purchasing patterns)Space (e-payment, EDI from mfrs, info on purchasing patterns)
value creation has moved from Place to Spacevalue creation has moved from Place to Space currently, retail chains have value creation distributed through both Place and Space:currently, retail chains have value creation distributed through both Place and Space:
Place (mfg, packaging, distn, mktg)Place (mfg, packaging, distn, mktg) Space (e-payment, EDI from mfrs, info on purchasing patterns)Space (e-payment, EDI from mfrs, info on purchasing patterns)
manufacturer wholesaler retailer consumer
Impact on PropertyImpact on Property Impact on PropertyImpact on Property
substantial changes are taking place - most visible in substantial changes are taking place - most visible in finance and services - up to 50% space under stress - finance and services - up to 50% space under stress - which will progressively alter the ‘face of offer’ of shopping which will progressively alter the ‘face of offer’ of shopping centres as consumerscentres as consumers become ‘connected consumers’become ‘connected consumers’
harness change by business mix planning, taking care not harness change by business mix planning, taking care not to take a historical ‘set’ on shopping centre design and mixto take a historical ‘set’ on shopping centre design and mix formulate strategies to mirror centre management formulate strategies to mirror centre management
approach to manage the new economyapproach to manage the new economy policies to encourage non-commodity lifestyle retailers:policies to encourage non-commodity lifestyle retailers:
Borders coffee/bookshopBorders coffee/bookshop BMW café - SouthbankBMW café - Southbank
substantial changes are taking place - most visible in substantial changes are taking place - most visible in finance and services - up to 50% space under stress - finance and services - up to 50% space under stress - which will progressively alter the ‘face of offer’ of shopping which will progressively alter the ‘face of offer’ of shopping centres as consumerscentres as consumers become ‘connected consumers’become ‘connected consumers’
harness change by business mix planning, taking care not harness change by business mix planning, taking care not to take a historical ‘set’ on shopping centre design and mixto take a historical ‘set’ on shopping centre design and mix formulate strategies to mirror centre management formulate strategies to mirror centre management
approach to manage the new economyapproach to manage the new economy policies to encourage non-commodity lifestyle retailers:policies to encourage non-commodity lifestyle retailers:
Borders coffee/bookshopBorders coffee/bookshop BMW café - SouthbankBMW café - Southbank
Impact on managementImpact on managementImpact on managementImpact on management creating an e-commerce business culture creating an e-commerce business culture ensuring staff own the projectensuring staff own the project treating the website as a separate businesstreating the website as a separate business reduction of inventory costsreduction of inventory costs ensuring efficient physical distributionensuring efficient physical distribution database management, application of direct marketing database management, application of direct marketing
skills to capture knowledgeskills to capture knowledge simple, reliable technologysimple, reliable technology branding to achieve consumer qualitybranding to achieve consumer quality no duplication of high labour costs or physical facilitiesno duplication of high labour costs or physical facilities commitment to e-commerce by all stakeholders - commitment to e-commerce by all stakeholders -
suppliers, manufacturers and retailerssuppliers, manufacturers and retailers
creating an e-commerce business culture creating an e-commerce business culture ensuring staff own the projectensuring staff own the project treating the website as a separate businesstreating the website as a separate business reduction of inventory costsreduction of inventory costs ensuring efficient physical distributionensuring efficient physical distribution database management, application of direct marketing database management, application of direct marketing
skills to capture knowledgeskills to capture knowledge simple, reliable technologysimple, reliable technology branding to achieve consumer qualitybranding to achieve consumer quality no duplication of high labour costs or physical facilitiesno duplication of high labour costs or physical facilities commitment to e-commerce by all stakeholders - commitment to e-commerce by all stakeholders -
suppliers, manufacturers and retailerssuppliers, manufacturers and retailers
Clicks and Bricks Pty LtdClicks and Bricks Pty Ltd-advisors to CRE and IRE managers-advisors to CRE and IRE managersClicks and Bricks Pty LtdClicks and Bricks Pty Ltd-advisors to CRE and IRE managers-advisors to CRE and IRE managers
tailored property and technology solutions for tailored property and technology solutions for CRE and IRE managersCRE and IRE managers
property infrastructure planning (CIR) and property infrastructure planning (CIR) and associated systems integrationassociated systems integration
development of on-line/offline business development of on-line/offline business strategies, with a focus on retail propertystrategies, with a focus on retail property
venture creation within new economyventure creation within new economy
business developmentbusiness development
tailored property and technology solutions for tailored property and technology solutions for CRE and IRE managersCRE and IRE managers
property infrastructure planning (CIR) and property infrastructure planning (CIR) and associated systems integrationassociated systems integration
development of on-line/offline business development of on-line/offline business strategies, with a focus on retail propertystrategies, with a focus on retail property
venture creation within new economyventure creation within new economy
business developmentbusiness development
PropertyPropertyTechnologyTechnologye-Businesse-Business
operational strategiesoperational strategies
PropertyPropertyTechnologyTechnologye-Businesse-Business
operational strategiesoperational strategies
459 Collins Street, Melbourne VIC 3000Collins Street, Melbourne VIC 3000Ph: (03) 9613 9945 Fax: (03) 9532 8550Ph: (03) 9613 9945 Fax: (03) 9532 8550
e-mail: [email protected]: honeyl@ozemail.com.auwww.clicksandbricks.com.auwww.clicksandbricks.com.au
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