Enabling Intelligent Retail
Today’s Agenda
Transformational
Forces
Our Strategy Partnering in
Action
The evolution of Retail
Traditional big box stores see mass closures
Amazon.comopens for business
The number of malls in the US reaches 4,500
2016
19951960
Consumers begin receiving catalogues at home
1920
Major mobile paymentapps launch
Selfridge’s promotes
shopping for leisure
over necessity
20151909
BIG BOX STORES E-COMMERCE OMNICHANNELDEPARTMENT STORES INTELLIGENT RETAIL
The first cashier-less store, Amazon Go, launches
2017
AI continues toinfluence the retail value chain
2018
The first “category
killer”, Toys “R”
Us, opens
1957
Internet penetrationtops 50% in most developed retail markets
20001970
Barcode scanners are introduced at major retailers
The first Walmart opens in Rogers, Arkansas
1962
The first iPhone is released
2007
Customer Centric Intelligent Retail Shift from selling goods to new Personalized shopping experiences
46%percentage of
consumer using retail
mobile apps on a
weekly basis
150Number of
sensors-enabled
devices consumers
will interact with
daily by 2020
Digital
World
PhysicalWorld
In-storemovement
ConnecteddisplaysBlogs
Ecommerce
Ad views& clicks
App download
Social media
Geolocation
Personalizedoffers
Smart kiosks
60%device interactions are
passive as users will
accept information
surfaced from
intelligent systems and
machine learning
Source: Microsoft IDC Retail Study, ASIA, 2018
30%percentage more
spend from an
omnichannel
shopper
Coupang Rocket Delivery Order before midnight, get your order the next day
Rocket Wow Subscription-based free delivery
11st Direct Order
(바로오더)
Seamless, one-click check out (Simple payment service)
Naver Smart Store One-stop, easy to manage, shopping mall solution for small
business owners
Daum
Kakao
Kakao Talk Gifts An option to send gifts to Kakao friends from a selection of brands
via messaging app, using Kakao Pay
Kakao Shopping Shopping platform on Kakao messaging app
Lotte
Shopping
Smart Pick Order goods on-line, pick up in store
Scan Shopping Customers scan QR codes of goods in store, check out using mobile
application, goods are delivered within 3 hours
Shinsegae
+ Emart
SSG.COM Emart and Shinsegae online malls merged under one domain
Fast Delivery If customer orders goods from Emart before 3 PM, the goods are
delivered by the end of the day
Daybreak Delivery The goods are delivered starting with 6 AM
New product features and services added by Korean off/online retailers in 2018
Digital/
internet
companies
Traditional
retailers
Increase in numbers of single households & households with working parents stimulating the growth of online grocery shopping
Current market size, offline+online: USD 19.3 billion / 22조7000억원Online only: 10% or USD 1.7 billion / or 2조원
2016: Market Kurly and
Baemin Fresh were the first
to start fresh produce
delivery. Emart, Lotte Mart
and Homeplus followed in
their footsteps.
2017: Coupang, We Make
Price and Hello Nature
(acquired by SK Planet)
started produce delivery
• Market Kurly raised USD 84.9 million/1000억원 from
Sequoia Capital and other investors in 2019.
• Market Kurly investing in Coldchain, warehouse and
mobile refrigerator system, that keeps produce fresh. The
company is a trend setter for produce delivery
Premium segment
• Emart launched daybreak delivery in June 2019; the groceries
are delivered starting 6am (Coupang and Market Kurly have
similar offerings)
• SSG.COM has capacity to process 131,000 orders daily
• As a big box retailer, Emart continues to focus on volume
sales and low price
Low-cost segment
Nextgen logistics
Industry convergence New retailers
Commerce anywhereCustomer loyalty
Responsive product development
AI revolution
Intelligent systems
Health, home, hospitality
Regulatory & tariffs
Data security
Reinvention brick & mortar
China innovation
Transformational Forces in Retail
Sustainability
Marketplaces
Artificial Intelligence: the world runs on software AI
Retailers will spend $7.3 billionon AI by 2022,
Brick & Mortar Reinvention
Over 78% of consumers would choose to spend money on an experience or an event
“The possibilities of mixed reality are endless, and we will continue to explore and push the boundaries to make our customers fall in love with Natuzzi”
—Pasquale Junior NatuzziCreative Director
Our Strategy
Retail & Consumer Goods
Democratizing AIEnabling
Digital Transformation
—Healthcare Dive
—The Wall Street Journal
—Bloomberg
—VentureBeat
—Reuters
Walgreens & Microsoft
partner to develop digital
healthcare services
—Reuters
—The Wall Street Journal
—Bloomberg—Forbes
Your customers. Your employees. Your data.
KNOW YOUR
CUSTOMERS
EMPOWER YOUR
EMPLOYEES
DELIVER INTELLIGENT
SUPPLY CHAIN
REIMAGINE
RETAIL
Enable intelligent
customer journey
Enable your brand
ambassadors to delight
your customers
Close the gap between
demand and fulfillment to
delight your customers
Reimage the customer
experience in Online &
Offline Retail
Our Vision: Enabling Intelligent Retail
AN INTELLIGENT RETAIL CUSTOMER JOURNEY
Deliver intelligent
supply chainKnow your customers
Unified Customer
Unified Commerce
Empower your employees
Productive workforce
Reimagine retail
Reimagine AdvertisingIntelligent Supply Chain
Intelligent Fulfillment
Intelligent Inventory
Intelligent Warehouse
Reimagine Stores
Microsoft Retail Scenarios & Solutions
Enable your brand ambassadors
to delight your customers
Close the gap between demand
and fulfillment to delight your
customers
Imagine the impossible and then
make it happen
Enable customer first retail
Retail Data Workbench
Microsoft Intelligent Retail Data PlatformBuilding Customer Centric Intelligent Retail Organization
Know your Customer
Unified Customer
Unified Commerce
Reimagine Retail
Reimagine Stores
Reimagine Advertising
Empower Employees
Workforce Enablement
Deliver Intelligent Supply Chain
Intelligent Inventory
Intelligent Supply Chain
Intelligent Fulfilment
Intelligent Warehouse
RETAIL DATA
Workbench
RETAILER’S AZURE DATA LAKE
RETAIL DATA MODEL
IoT Edge & Azure Digital Twins
Azure Databox Edge
D365 for Perception Analytics
Azure Cognition Services
Dynamics 365 for Commerce
Dynamics 365 for Customer Insights
Retail Solution
Data Share
Azure Blockchain
IoT Edge & Azure Digital Twins
Azure Databox Edge
Microsoft Teams
DIGITAL SHELVES ENABLE REAL TIME PRICING UPDATES AND PRODUCT INSPIRATION AT THE POINT OF PURCHASE REDEFINING THE SHOPPING EXPERIENCE
Reimagine retail.
Unlock new opportunities and capture new business
CONNECTED DEVICES IN STORE ENABLES PREDICTIVE MAINTENCE, REDUCED WASTE AND PRODUCT CONSISTENCY THAT DELIGHTS CUSTOMERS
Deliver Intelligent
Supply Chain.
Right product, right price,
right time to right customer
APPLYING NEW INTELLIGENCE ACROSS EVERY ENDPOINT TO ENABLE EMPLOYEES TO DELIVER A WORLD CLASS SHOPPING EXPEREINCE
Empower your people.
Empower all employees to delight your customers
CONNECTING ONLINE AND INSTORE DATA ENABLED SELECTION OPTIMIZATION TO BETTER SUIT THEIR CUSTOMER AND DROVE +38% SALES
Know your customers.
Superior, relevant service
increases loyalty
Delivering eCommerce
enablement, Platform
Transformation &
Global Collaboration
Co-Innovation
Increased App usage,
Online Transactions,
Loyalty & Margin,
Supply-chain
transparency bean-to-
cup
Delivered Smart Edge
solution; New business
models to reinvent the
store
Driving additional
Energy Savings /
Optimization through
IoT
Unilever teams with
Microsoft to deliver AI
assisted decision-
making
Empowering a mobile
workforce with data-
fueled insights
New and transformative
experiences to
customers & employees
Customer Partnerships in Retail
Cloud & AI partnership
.
Powering a circular
fashion initiative &
reinventing store
experiences
Transformation of
health care delivery