global supply chain innovation summit, shanghai

PowerPoint Presentation

Global Supply Chain Innovation Summit, ShanghaiKiril PopovManager, Fung Global Retail & [email protected]: 347.607.5060 HK: 852.9312.0819April 28, 2016

FUNG GLOBAL RETAIL & TECHNOLOGYABOUT THE FUNG GROUPABOUT FUNG GLOBAL RETAIL & TECHNOLOGYRetail Landscape Overview 8 Supply Chain DISRUPTIVE TECHNOLOGIESagenda

FUNG GLOBAL RETAIL & TECHNOLOGY#

TRADING

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RETAILINGLi & Fung LimitedListed on SEHKGlobal Brands GroupListed on SEHKFung Retailing LimitedPrivately Held EntityConvenience RetailAsia LimitedListed on SEHKTrinity LimitedListed on SEHKBranded Lifestyle Holdings LimitedLiFung Kids (Holdings) LimitedToyrs R Us (Asia)Suhyang NetworksUCCAL Fashion GroupPrivately Held EntitiesFung Holdings (1937) Ltd. A privately held entity and major shareholder of the Fung GroupABOUT FUNG GROUP


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ABOUT THE FUNG GROUPABOUT FUNG GLOBAL RETAIL & TECHNOLOGYRetail Landscape Overview 8 Supply Chain DISRUPTIVE TECHNOLOGIESagenda

FUNG GLOBAL RETAIL & TECHNOLOGY#The knowledge bank for the Fung GroupFocuses on emerging retail and tech trends, specializing in retail and technology, intersections, and building collaborative communitiesBased in New York, London and Hong KongPublishes thematic and global market research on topics such as the Internet of Things, digital payments, omnichannel retail, luxury and fashion trends and disruptive technologies.FUNG GLOBAL RETAIL & TECHNOLOGY


ENTREPRENEURSROUNDTABLEACCELERATOR

OUR PARTNERSHIPS WITH ACCELERATORS


Alchemist Accelerator is an accelerator exclusively for startups whose revenue comes from enterprises, not consumers.

CoCoon is a coworking space where entrepreneurs, creative talent, successful leaders and investors meet, collaborate and deliver results together. Member companies get access to networking opportunities, work space, a photography studio and mentors.

Entrepreneurs Roundtable Accelerator (ERA) provides participant companies with an intensive four-month program, with the goal of helping early-stage companies progress rapidly into exciting, viable businesses.

New York Fashion Tech Lab is an accelerator that is a result of a collaboration between the Partnership Fund for New York City, Springboard Enterprises and major fashion retailers. It focuses on early- and growth-stage companies.

Plug and Play is a global innovation platform. It connects startups to corporations, and invests in over 100 companies every year. Its 360 ecosystem allows for remarkable innovation to take shape on an international scale.

Techstars is a global ecosystem that empowers entrepreneurs to bring new technologies to market wherever they choose to build their business.

ABOUT THE FUNG GROUPABOUT FUNG GLOBAL RETAIL & TECHNOLOGYRetail Landscape Overview 8 Supply Chain DISRUPTIVE TECHNOLOGIESagenda

FUNG GLOBAL RETAIL & TECHNOLOGY#The Consumer Retailers & Brands

FUNG GLOBAL RETAIL & TECHNOLOGY#US Personal Consumption Expenditure (PCE) Source: Bureau of Economic Analysis *Annual, Not seasonally adjusted Spending per category as % of total personal expenditure 1960 2014

#FUNG GLOBAL RETAIL & TECHNOLOGY

In 2015, low gas prices added approximately $700 to the budget of the average US household.Where was it spent?

#FUNG GLOBAL RETAIL & TECHNOLOGYThe Consumer Retailers & Brands

FUNG GLOBAL RETAIL & TECHNOLOGY#Experiential Retail: A Way to Bring Shoppers Back to StoresUrban Outfitters acquired the Vetri Family group of restaurants in 2015Club Monaco collaborated Caf Myriade to open an in-store coffee shop in MontrealFood & Beverage

In-StoreTechnologyRebecca Minkoff offers interactive mirrors as well as virtual reality headsets in storesTommy Hilfiger stores have virtual reality headsets that allow visitors to experience runway showsPersonaliza-tionIn March of 2016, Nike revealed its app, Nike+, that gives shoppers the ultimate customized experience


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Experiential Retail: Making the Experience Engaging Urban Outfitters acquired the Vetri Family group of restaurants in 2015Club Monaco collaborated Caf Myriade to open an in-store coffee shop in MontrealFood & Beverage

In-StoreTechnologyRebecca Minkoff offers interactive mirrors as well as virtual reality headsets in storesTommy Hilfiger stores have virtual reality headsets that allow visitors to experience runway shows

Personaliza-tionIn March of 2016, Nike revealed its app, Nike+, that gives shoppers the ultimate customized experience


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Experiential Retail: Customization and Personalization Urban Outfitters acquired the Vetri Family group of restaurants in 2015Club Monaco collaborated Caf Myriade to open an in-store coffee shop in MontrealFood & Beverage

In-StoreTechnologyRebecca Minkoff offers interactive mirrors as well as virtual reality headsets in storesTommy Hilfiger stores have virtual reality headsets that allow visitors to experience runway showsPersonaliza-tionIn March of 2016, Nike revealed its new app, Nike+, that gives shoppers the ultimate customized experienceUnder Armour launched the Health Box in April 2016


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Evolving Pure Plays (Number of Actual/Planned Physical Stores)AMAZON

ATHLETA

CASPER

AYR

YOGIBO

HARRYS

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AmazonThe online giant has opened its first Brick & Mortar store in Seattle and has been considering opening more.

AthletaThe Gap brand now has retail stores of its own.

AYRThe online womens clothing line opened a Guideshop, a studio, showroom, and retail store in one.

Bauble BarThe jewelry website has begun wholesaling and getting its brand into physical locations.

Blank LabelThe custom menswear site has opened up physical locations in the Boston and DC areas.

Blue NileThe jewelry website partnered with Nordstroms to open webrooms in stores

BonobosThe mens e-tailer has opened up stand-alone guideshops while also partnering with Nordstrom.

CasperThe online mattress startup has showrooms in NYC and LA to let customers take a test nap.

HarrysThe shaving supply company has opened its own neighborhood barbershop in NY.

IndochinoThe online seller of custom menswear has opened a NYC showroom.

Rent the RunwayThe online dress and accessories rental company now has 4 stores.

Warby ParkerThe glasses e-tailer has created multiple experiential showrooms.

YogiboThe beanbag company has gone from online only to 24 physical locations

YogaSmogaThe online Yoga outfitter now has 2 retail stores and 2 R&D locations.

Gilt GroupeAfter being acquired by Hudsons Bay, Gilt Groupe will start being integrated with Saks off 5th.

Retailers & Brands Moving to OmniL Brands moved to integrate its Victorias Secret direct-sales business online into the store businessesVictorias Secret discontinued catalogs in 2016, saving $100 million annually Aim to offer a seamless shopping across mobile, online and in stores

The Seamless ExperienceSame-day DeliveryFrom test phase to full-scale operations:Kohls expands same-day delivery to 7 new markets with Deliv (April 2016) Best Buy expands same-day delivery to 13 new markets with Deliv (April 2016)Macys already in 17 markets with Deliv Click & Collect Amazon UK has partnered with Barclays to use its outlets as collection points for deliveries

#FUNG GLOBAL RETAIL & TECHNOLOGYAnd Supply Chains Need to Evolve Sourcing the right products Achieving speed-to-market Planning and managing inventory Maintaining supply-chain agility Achieving supply-chain visibilitySustainability

#FUNG GLOBAL RETAIL & TECHNOLOGYABOUT THE FUNG GROUPABOUT FUNG GLOBAL RETAIL & TECHNOLOGYRetail Landscape Overview 8 Supply Chain DISRUPTIVE TECHNOLOGIES agenda

FUNG GLOBAL RETAIL & TECHNOLOGY#Collaborative Platforms

#FUNG GLOBAL RETAIL & TECHNOLOGYUse of Data Analytics Accenture: While companies understand the value of big data analytics, they have yet to figure out the best way to use it to improve their overall business.Embedding big data analytics in operations leads to a 4.25x improvement in order-to-cycle delivery times, and a 2.6x improvement in supply chain efficiency of 10% or greater.

#FUNG GLOBAL RETAIL & TECHNOLOGYThe Industrial Internet of Things Industrial IoT Global Yearly Financing History 2011 2015 In the next five years, we are expected to go from 4 billion to 30 billion Internet connected physical devices.Source: CB Insights

#FUNG GLOBAL RETAIL & TECHNOLOGYThe Sharing Economy: Last-mile Delivery

The on-demand economy has driven growth of delivery start-ups that provide innovative ways for consumers to ship or receive goods The new delivery companies can be categorized by: courier services, specialty delivery, and general delivery

#FUNG GLOBAL RETAIL & TECHNOLOGYStarship Technologies

#FUNG GLOBAL RETAIL & TECHNOLOGYRobots & Drones April 2016: An aviation policy bill, which passed the US Senate demands that the Federal Aviation Authority (FAA) authorize package deliveries by drones within two years.

#FUNG GLOBAL RETAIL & TECHNOLOGY3D Printing

The 3D printing industry was valued at $11 billion in 2015, and is expected to grow to $26.7 billion by 2019, a CAGR of 27%.

#FUNG GLOBAL RETAIL & TECHNOLOGYCloud Computing An enabler for the digital operation of supply chains and networks: ConnectivityIntelligenceScalabilitySpeed

#FUNG GLOBAL RETAIL & TECHNOLOGYThe BlockchainApplications:

Supply Chain Finance Product Tracking and Tracing Inventory Visibility

#FUNG GLOBAL RETAIL & TECHNOLOGYQ & A
