An insight session for retailers ahead of Amazon's imminent launch into Australasian markets. Developed for leading supply chain specialist software developers - CIN7
2. C I N 7 . C O M
TODAY'S
SESSION
1
NZ retail sector
market dynamics
2
Learnings - Amazon's
progress & future strategy
3
Interpreting opportunity -
how can retailers benefit?
5
Summary & Question time
Importance of readiness
Embracing disruption
Value in marketplaces
How to lead - not follow
Uncover growth opportunities
Working smarter - not harder
4
Managing risk - adapting
now to minimise impact
OUTCOME GOALS
3. C I N 7 . C O M
DISRUPTION IS THE NEW CONSTANT
'Retail has changed
more in the past
decade, than in the
entire last century'
4. C I N 7 . C O M
DECADE OF
DISRUPTION
Shoppers no
longer geographically
limited
The GFC refocused
consumer wants &
expectations
Consumers have
become empowered
and purposeful
5. C I N 7 . C O M
ONLINE
SALES
0
50
100
150
Jan
2010Jan
2011Jan
2012Jan
2013Jan
2014Jan
2015Jan
2016
200
250
Jan
2017
Domestic
59%
International
41%
Source: Marketview
6. C I N 7 . C O M
DIGITAL
INFLUENCE
0
20
40
60
80
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: Delloite - The Digital Divide
Digital influenceis inspiring anddriving decisionsin over 70% of alltransactions
7. C I N 7 . C O M
CATEGORY
TRENDS
Source: Marketview
8. C I N 7 . C O M
REGIONAL
PERFORMANCE
Source: Marketview
9. C I N 7 . C O M
SUMMARY
Online Growth Continues. Retailers must have strong online visibility
and functionality in order to be part of consumers' consideration set.
Offshore Attrition Continues. Consumers are hungry for choice and
differentiation that's not being demonstrated by retailers locally.
Underlying Strength Remains. The retail sector continues to deliver
opportunities for growth and profitability for those that can balance
bricks and mortar stores with a compelling online proposition.
10. C I N 7 . C O M
AMAZON
DOWN-UNDER
SOME BUSINESS MODELS WILL BE VULNERABLE
'Amazon will eat our
breakfasts, lunches
& dinners'
Wesfarmers (KMART, Coles & Bunnings) group managing director Richard Goyder
11. C I N 7 . C O M
QUICK FACTS
65 MILLION
People in the US are Amazon
Prime customers
USD2,500
Average amount an Amazon Prime
user spends on Amazon annually
44%
Of all households in the US are
Amazon Prime members
USD540
Average amount a non-Prime user
spends on Amazon annually
6.4 BILLION
Amazon Prime revenue for 2016
49%
Year on year Amazon Prime growth
Source: Amazon USA
12. C I N 7 . C O M
MAJOR MOVES
Source: Amazon USA
13. C I N 7 . C O M
SUMMARY
Here to Stay. Amazon will become a key part of peoples lives so
businesses need to develop an understanding and participation.
Get Amongst. Retailers must be a part of the Amazon Marketplace to
increase visibility, reach and relevance. This will be as vital as Google.
Start Now. Businesses need to start adapting immediately, aligning
their organisations with best practice and opportunity.
14. C I N 7 . C O M
ENABLEMENT
'Retailers must re-prioritise
e-commerce - reflecting its
influence on performance across
all sales channels'
THE SILENT INFLUENCER & SELLER
15. C I N 7 . C O M
RETAIL VITALS
Digitally Visible &
Capable
Convenient Competitive &
Achievable
16. C I N 7 . C O M
RETAIL VITALS
Immersive &
Experiential
Differentiated Aspirational
17. C I N 7 . C O M
RETAIL VITALS
Digitally Visible &
Capable
Search priority & content quality
Link-driven traffic driving visitation
Competitor awareness and edge
Full e-commerce functionality
18. C I N 7 . C O M
RETAIL VITALS
Immersive &
Experiential
Products people feel a belonging with
Store environments delivering escapism
Activities that go beyond the transaction
Inspiring discovery and delight
19. C I N 7 . C O M
RETAIL VITALS
Convenient
Empowering customers
Removing any barriers
Delivering beyond competitors
Focus on user experience
20. C I N 7 . C O M
RETAIL VITALS
Competitive &
Achievable
Pricing that meets its market
Ensemble pricing demonstrating value
Stepping stones of value
Customer succession
21. C I N 7 . C O M
RETAIL VITALS
Differentiated
Products that set your brand apart
Attention & service that's memorable
In-store experiences people return for
Deserving of advocacy
22. C I N 7 . C O M
RETAIL VITALS
Aspirational
Brand values consumers identify with
Products people love and want to own
Experience that drives advocacy
A relationship shoppers are proud of
23. C I N 7 . C O M
WHAT ARE YOUR KEY
PRIORITIES NOW?
Get an Amazon account set up to
understand and master the system
Interpret where your competitive
advantage may lie (such as unique
products, or better shipping prices)
Enhance digital content and capability so
your offer differentiates & gains priority.
Find your fit within other local or category
specific marketplaces too.
24. C I N 7 . C O M
SUMMARY
Integrated Approach. Businesses must approach the opportunity
strategically - deploying integrated initiatives to achieve success.
Leverage Collective Strength. Visibility and reach are vital. Amazon
and other marketplaces help smaller scale retailers achieve this.
Focus on the Vitals. Create and demonstrate differentiation that will
set your business apart in what will become an even more crowded
market.
25. C I N 7 . C O M
QUESTIONS
firstretailgroup.com
cin7.com