trends in retail business, emerging trends in retail, contemporary trends for future of retail

2. Summary
IBM Vision
4
3
Challenges & Market insights
1. Consumers
2. Innovators
3. Technology
2
Market
1. Global MarketOverview
2. Marketfocus
3. Retail segmentfocus
1
Trends
1. In storeexperience
2. Build community
3. Retail forgood
4. High techstore
5. Intelligent supplychain
1. Digital Engagement andExperience
2. Intelligent SupplyChain
3. Digital EnterpriseOperations
2

3. THE MARKET
3

4. Global marketoverview
North America
 Retail sales hit a recordof
$5.5 trillion in2017
 3%CAGR (2017 - 2021)
Africa & MiddleEast
 Retail sales hit a recordof $1.1 trillion in 2017
 19%CAGR (2017 – 2021)
LatinAmerica
 Retail sales hit a recordof $1.9
trillion in2018
 5%CAGR (2017 – 2021)
Europe
 Retail sales hit arecordof $4.9 trillion in 2017
 2%CAGR (2017 – 2021)
WWretail market expectedto reach $32T in
2022 from $24T in 2018 (8.1% CAGR)
Asia-Pacific
 Retail sales hit a recordof $ 9.3
trillion in2017
 6% CAGR(2017-2021)
China
 $5.6 trillion sales in 2017
India
 $1 trillion sales in 2017
MARKET I Global
4 Source: IBM MDI

5. Total retailsales 24,000
Total online retailsales
13%
Total grocery retailsales
24%
Total online grocery retail sales
1%
5,700
3,000 150
Online retail sales represents only 13% of retail sales in 2018
Global retail sales in 2018($billions)
5
MARKET I Global
Source: Forrester2018

6. 517
124
106
104
74
69
42
31
27
0
China
US
UK
Japan
France
Germany
South Korea
Canada
Russia
Brazil
1330
200 400 600 800 1000 1200 1400
IBM MD&I
6
MARKET I Global
Source: Reuters2018
Global online retail marketsales in
2018 in $billions percountry
$3,000

7. China –Singles’ day–11/11/2018
in 1 day ie a 27% increase
$30 bn
Sales amounted to $30.8 billion:
• ⅓ of French e-commerce market yearly
• More than L’Oréal revenue in 2018
$10 bn in sales recorded inone hour
MARKET IChina
7

8. 8
USA
 Salesestimatedat $1,494.4 bn
 3% CAGR(2018-2023)
China
 Salesestimated at $1,395.7 bn
 5.5% CAGR(2018-2023)
India
 Salesestimated at $510.5 bn
 11.2% CAGR(2018-2023)
Japan
 Salesestimated at $459 bn
 1% CAGR(2018-2023)
Brazil
 Salesestimated at $328.4 bn
 7.4% CAGR(2018-2023)
France
 Salesestimated at $275 bn
 2.2% CAGR(2018-2023)
Global grocerymarket
MARKET IGlobal
Source: IGD 2018
Total global grocery sales: $5,700
billion ie 24% of total global retail
sales

9. Global onlinegrocerysales forecast($billions)
80
93
114
15
0
18
5
22
1
25
8
29
6
33
4
2014
Forrester 2018
2015 2016 2017 2018 2019 2020 2021 2022
Global online grocerymarket
is expected to experience a
growth of 80% in 4 years
9
MARKET I Grocery

10. The global luxury market grew to nearly€1.2
trillion in 2018, up 5% from 2017
Global
luxury
market
10
MARKET I Luxury
The personal luxury goods segment outperformed
other luxury segments in 2018 – expected to reach
365 billion in2025
> 6% global growth in 2018
By 2025, Chinese consumers = 46% of personal
luxury goods market (+14% vs2017)
> 50% of purchases will be made in China

11. CHALLENGES
&
MARKET INSIGHTS
11

12. 3 disruptionfactors
CONSUMERS
expectation is reshapingdemand
across theindustry
INNOVATORS
dictate the new standard &
transcend industryboundaries
TECHNOLOGY
is accelerating and enabling
innovation and disruption atscale
CHALLENGES& MARKETINSIGHTS
12

13. 1 -CONSUMERS
expectation is reshaping
demand across theindustry
Millennials
Chinese consumers
The consumer =thechannel
Ethical retailing
3 disruptionfactors
13
CHALLENGES& MARKETINSIGHTS I CONSUMERS

14. Millennials: the most powerful consumer group on earth
2.3 Bn Millennials in the world - 44% in Asia
 Asia: >1Bn- China:415Mn, India 440Mn
 US: the largest demographic group > Baby Boomers in 2019
Millennial spending by 2020 =$1.4 trillion annually ie 30% of total
retail sales
 France: 16 Mn - 50% of the labour force in 2020
 Luxury consumer is getting younger
By 2025: Millennials & Gen Z=55% of the WWluxury goods market
Source: Pew Research Center - Bain & Company 2018 Global Luxury Market - Mckinsey – Reviving Grocery retail, 6 imperatives - Bloomberg
analysis of the UN World Population Prospects
CHALLENGES& MARKETINSIGHTS - CONSUMERS I Millennials
14

15. The best value for money
Originality, relevancy
Omnichannel: online shopping - store -mobile
1
2
Experience first
6
Low brandloyalty
Millennials: shoppingcharacteristics
Source – Mckinsey , Reviving Grocery retail, 6 imperatives – Forbes, What Millenials really want – La Tribune
4
Social media
Sharing with friends & Peer generated endorsements
3
5
Brand authenticity, healthconscious
7
European Millennials - Omnichannel shopping habits
 Webto store:68%
 Storeto web:56%
 In storepictures to collect friends/family’sopinion: 44%
 Comparing prices on internet while in store: 56%
15
CHALLENGES& MARKETINSIGHTS - CONSUMERS I Millennials

16. New retail consumers, used to the most advanced
consumerexperience in the world
 Tech savy
 Fan of Retail-tainment
enjoy a sociable and entertaining shopping experience
 M-shopper – 67.5% use smartphones to buy and pay
 Social media commerce – 64% of Chinese Millennials
buy on WeChat, QQ,Weibo and Youku
 Expect a fast and simple consumer experience
Chineseconsumers:the 2.0 shoppers
New retail: “the complete integration of online, offline, logistics, and technology and data for a single value chain
Source: Bearing point – Mintel, August 2018 New research rom the world’s leading market intelligence agency - Asia Briefing, Dec 2017 - China Briefing, Sept 2018 – LSA, Jan 2019
“The boundary between offline and online commerce
disappears as we focus on fulfilling the personalized
needs ofeach customer”
JackMa, Alibaba co-founder
16
CHALLENGES& MARKET INSIGHTS - CONSUMERS I China

17. Theconsumeris thechannel:prerequisites
Source: HUB Institute - LSA
“Consumers don’t think about the world online versus
offline, neither should brands and retailers.”
Michael Evans, Alibaba Group President
 Merge of online and store data for a 360°
customer view
 Empower & digitalize the store associates
 Provide high quality service to consumers
 Transform logistics: zero stock stores?
 Transform the wholeorganization
17
CHALLENGES& MARKETINSIGHTS - CONSUMERS I No channel

18. Ethical retailing:a growing demand from consumers
62%
of customers want companies
to take a stand on current and
broadly relevant issues like
sustainability, transparency or
fair employment practices.
 Consumers assess what a brand says, what it does, what it stands for
> sustainability, transparency, fair employment practices, waste management
 Gen Z and Millennials consumers drive shift to ethical buying
> 60% consider companies’ ethical values and authenticity before buying
their products
> 73% spend more if products come from a sustainable or socially conscious
brand
Shift in consumer expectations:ethics & brand purpose
 Product, price + ETHICS
> nearly 75% of global consumers list product origin as key purchase driver
Nielsen, Sustainability Sells, 2018 – Accenture strategy research report, From me to we, December 2018
18
CHALLENGES& MARKETINSIGHTS - CONSUMERS I Ethical Retailing

19. 3 disruptionfactors
2 -INNOVATORS
dictate the new standard&
transcend industryboundaries
Disruptors
New standards
Merges &Acquisitions
1
1
9
9
CHALLENGES& MARKETINSIGHTS I INNOVATORS

20. CPG &Retail market:
$2.95 Trillion over
the nextdecade
(2017-2026)
 New storeformats
 Partnership between traditional
retailers anddisruptors
 Additionalvalue arising from platforms
such as Amazon or Alibaba
 Strategic M&A
Source :IBMMD&I
Innovators
CHALLENGES& MARKET INSIGHTS – INNOVATORS I Disruptors, New standards, M&A
20

21. 3 disruptionfactors
21
3 -TECHNOLOGY
is accelerating andenabling
disruption at scale
Voice commerce
Visual recognition
Blockchain
AI
Mobile
21
CHALLENGES& MARKETINSIGHTS I TECHNOLOGY

22. CHALLENGES & MARKET INSIGHTS –TECHNOLOGYI Voice commerce
Voice commerce:a fast growingmarket
WW Voice-based commerce by 2023 = $83 Billion
 US & UKmarkets
> by 2022: 50% of the WWvoice commerce revenues
> 2017-2022: 2150% growth (x23) - CAGR:86%
 Digital voice assistants = 8 Billion globally by 2023
> 2018-2023 CAGR =25%
> the fastest selling consumer technology in 2018 outpacing
wearables andVR
 Voice Shopping: popular for Grocery, Entertainment and Electronics
> US:35% of voice based devices’ owners make toiletry and grocery
purchases
Voice commerce to play a significant role in eCommerce
Source: Comscore – Emarketer – Juniper Research - OC&C Strategy Consultants
Voice-based commerce revenue
US & UK market
22

23.  A growing market pushed by machine learning & big data
from $16 Billion in 2016 to $38.92 Billion by 2021
> CAGR of 19.2%from 2017 to 2025
 Retail applications
 Fraud management
 Payment
 Inventory
 Facial coding
 Customer experience
 Store maintenance
 ....
Source: Deloitte Image Recognition Market, Global Forecast to 2021 – MarketsandMarkets - McKinsey & Company, “The advantages of machine learning in replenishment”, Aug 2016
Visualrecognition:a game changingtechnology
reduction in out-of-stock
rates.
Image recognition & AI
technology is paramount
in evolving the retail
experience and boosting
operational performance.
80
%
23
CHALLENGES & MARKET INSIGHTS –TECHNOLOGYI Visual recognition

24. Blockchain:transparency, trust, operationalefficiency
Source : Blockchain in Retail Market - Global Forecast to 2023", MarketsandMarkets - Gartner 2018 CIO Survey
Retail is the 4th largest Blockchain market - $933 million by 2022
Supply chain management segment to dominate the Blockchain in retail market
1. Increasing transparency and consumer confidence
> create transparent and decentralized supply chain system
2. Guaranteeing authenticity and reducing counterfeits
> reduce fraud and errors, issues identification
3. Meeting with the new supply chain requirements
> improve efficiency andspeed
> speed up delivery and smooth logistics
> faster and reliableinventory management
4. Protecting consumer privacy
> increase data prevention andmanipulation
24
CHALLENGES & MARKET INSIGHTS – TECHNOLOGYIBlockchain

25.  1 retailer out of 4 are deploying AI - in 2018 28% retailers (4%in
2016)
 AI penetration by sector: Apparel and footwear followed by Food
& Grocery lead the pack
 3 out of 4 AI use cases are deployed in customer-facing area /
74% of projects
> Expected benefits in customer-facing areas
=
>#1:Enhanced customer satisfaction due to a better experience
 26% operations-focused initiatives
> Expected benefits in supply chain operations and logistics
=
>improved consumer experience, inventoryproductivity,
operational efficiency
Walmart has used AI-driven
image optimization and saved
$86Mn
Estimated savings of >$2Bnover
the next 5years
Artificial Intelligence:benefits in customer facing &
operations areas
25
Morrisons used AI for stock
replenishment to reduce shelf
gap by30%
Retailers are accelerating their AI deployments
Source : Cap Gemini Research institute , December 2018 – IBM IBV study, January 2018
CHALLENGES & MARKET INSIGHTS – TECHNOLOGYI ArtificialIntelligence

26. Shopping is going mobile, in-store and out
Mobile payment is the world’s largest and fastest-growing market
By 2021 inEurope:
 59% of adult mobile phone owners use their phones to research
physical products beforepurchase.
 60% use their phones in brick-and-mortar stores
 Share of mobile in online retail sales: 25%
 56% of online adults expect companies to make their websites
mobile-friendly
Source: Forrester, Digital And Mobile Touchpoints Are Driving Offline Sales In Europe - iVend Retail’s 2018 Global Path to Purchase
Mobile:impact on shopping and payment
50%
of digitally influenced in-
store sales will be driven
by mobile in2021.
,
26
CHALLENGES & MARKET INSIGHTS – TECHNOLOGYIMobile

27. Mobile:disruptive payment options in China
Source : Baine & Caompany - Consumption in China: Ten Trends for the Next 10 Years - Asia Briefing – Dec 2018 - Technode, Sept 2018
 Mobile payment
 98.3% of Chinese netizens use a mobile device
 Payment market dominated by AliPay and WeChat Pay
 E-retail via mobile influenced by popularity of smartphones and
5G connections for China in2019
 QR Code payment: the mainstream offline payment option
Holds 70% of the Chinese mobile payment device market
 Smile to Pay: Facial recognition payment system
 Cashierless store: Alibaba’s Futuremart and Hemma stores
27
CHALLENGES & MARKET INSIGHTS – TECHNOLOGYIMobile

28. RETAIL TRENDS
28

29. Trends
Overview
3 Trends
1. Instore experience
 DIY
 Product customization
 Extendedservices
 Entertainment
 New storeconcept
 Innovativemerchandising
2. Buildcommunity
 Create sociallink
 Share& developexpertise
3. Retailfor good
 Transparency &traceability
 Sustainability
 Makingthe world a better place
4.High tech store
29
 Personalized experience
 Visual recognition& Cashierless store
 Mobile apps
 AR/VR & Voicecommerce
 Robots & Empoweredstoreassociates
5.Intelligent Supply Chain
 Last milefulfillment
 Omnichannel capabilities
 Supply Chainefficiency
 Demandforecasting

30. Innovative merchandising
30
3.1 IN STOREEXPERIENCE
Extended services
Product customization
Do ItYourself
Entertainment
New storeconcept

31. AromaZone
• Display with instructionsto
makingourselves
• Workshops and specialized
trainer to create homemade
cosmetics
• Personalized content
Innisfree
• “My Palette”installation
consists of 137 colors
and shades ofmake-up
• Creating his ownface
mask
Dresden
• Shoppers create their own
pair of eyeglasses or
sunglasses
• For 49$, customers getlenses
and frames madeup
• Choose the frame styles and
color combinations
Nike
• Nike By You:workshopto
customize sneaker
• Sneaker Bar Createunique
products
Do ItYourself
03-1
31
RETAIL TRENDS I Instore experience

32. • Workshop to create Chuck
Taylors from scratchwitha
sneaker design
• Customerchoose fabric,soles,
color of the logo
• A dedicatedfloorfor
personalization
Salomon
• S/Lab ME:sh to measure
consumersand find the best size
• Digital co-creation merging
SalomonDNA& expertise with
needs and preferences of the
customer
Converse
Covergirl
• Customization stationsto
personalizemake-up
• 3Dprinterfor makeup
bags
Levi’s
• Tailor shop:Self-deskfor
customize t-shirt,jeans
• Integrateyourowncreation,
logo
Product customization
03-1
32
RETAIL TRENDS I Instore experience

33. CarrefourBio
• Digitallockers for Airbnb keys
• Space to drinka coffeewith
sharedlibrary
• Neighborhood conciergedesk
service
• Concierge deskservice
• Same-day hoteldelivery
service
• NYC guide to discoverthe city
• Guest kiosk with healthy juices
& fitnessconsultants
Adidas
• Free laundryservice
• Jeans Galleryfeaturing an in-
store maker’sshop
• DigitalconciergeiPads in
dressing rooms
• Collaborationspace
American Eagle
• Developmentof an ecosystem
with start-ups Steedy and
Trusk specialized in home
delivery
• Interior decorationcoaching
withLittleworker
• Reparation servicewith
Bob’depannage
LeroyMerlin
Extendedservices
03-1
33
RETAIL TRENDS I Instore experience

34. Casper
• Design likea camp
• A nap “survivalkit” for
customers
• Giant playground forkids
• “Secret movingwall”
• New theme thatrotates
every 8–12weeks
• Activities daily, includingarts
and craftsworkshops
BuzzFeed Camp
Gucci Wooster
Bookshop
• A cinemain the middleof the
store
• Celebrate Soho’screative
heritage
• A libraryarea
StarbucksReserve
Roastery
• Celebratetheheritageof
roasting
• Journeyfrom bean to cup
through tubes
• Stagingof coffeemaking
Entertainment
03-1
34
RETAIL TRENDS I Instore experience

35. Glossier
Showroom
• Tintedwindows almost private
• No purchase without aseller
• Open space, minimalist price
• Purchase viaautomated
conveyerbelt
IKEA
Smaller isbeautiful
• No apartment showroom,no
in-store course
• Selectionof mainlydecorative
and space-savingitems
• No stock,no big furniture
• Partnership with MondialRelay
New storeconcept
03-1
Facebook@Macy’s
Pop-up
• Small e-commercebrands
exposure
• Growingbrick-and-mortar
presencefor online players
Auchan minute
Automatic format
• 500 self-service references,
without staff, accessible24/7,
without cashregister
• QR code for virtualshopping
cart
• Online paiement
RETAIL TRENDS I Instore experience
35

36. • Preferences oflocal
customers
• Onthe shelvesonlythe most
popular articles (4-5 stars)
from the e-commercesite
• Rotating inventoryon a
weeklybasis
Amazon4Star
Bestsellermerchandising
• Selectionof the most popular products in NYC
• Seasonal products and Nike Sneaker Bar
• The space designed in the spirit of New Yorkers (blackand white)
Nike Speedshop
Local offer
• Design, theme and
productsreneweverytwo
months
• Create surpriseand delight
• Howto getthecustomer
back
Story
Editorialmerchandising
Innovative merchandising
03-
1
36
RETAIL TRENDS I Instore experience

37. 37
Create sociallink Share and developexpertise
3.2 BUILD COMMUNITY

38. Salomon
• Test of shoes & group running
sessions
• Free and self-servicelockers
• App to connectwithothers
runners
• Build social link around
same passion
• Rapha CyclingClub
• App to be in the loop with
rides, events,news
Rapha
ThePhluid Project
• Value of sidestepping
conventional genderdivisions
• Instagram-worthing corner&
33% of hang-outspace
• No paid marketing to keep safe
the authenticity
• Social Club: community
around personalgrowth
• “Be amission witha company”
• Eventswithlocalleaders
(Sweat LifeFestival)
• Ambassadorprogram
Lululemon
Create sociallink
03-2
RETAIL TRENDS I Buildcommunity
38

39. • Sewing andembroidery
workshops
• Dedicatedteamfor clothes
repair
• Awareness torecycling
clothes
• Tipson clothing care
AromaZone
• Dedicated workshopspace
for home-made product
courses
• Presence of professional on-
site
H&MTakeCare
• Cooking lessons &cheese
discovery
• Creationof acommunity
around cheese
• Features event andexhibits
Apple
• Free workshopsfor peoplewho
want to learn more about their
devices
• Programs available for kids,
include Apple campand field
trips
• Sessions in Photography,Art &
Design, Music, andmore
FrenchCheese
Board
Share & developexpertise
03-2
39
RETAIL TRENDS I Buildcommunity

40. Transparency &Traceability
Sustainability
Making the world a better place
3.3 RETAIL FORGOOD

41. • Radical transparencyvia
storytelling
• Ethical productionpractices at
each step of the process
• Helmetsto listen the silenceof
factories
• Informative queue
Carrefour
• Tracedifferentstagesof
producttransformation
• QRcode on the finish product
(origin,producer…)
• Scalabilityfacilities
management
Everlane
• Suppliers: local,organic, fair-
trade
• Products are handmade
• Manufacturer’s name oneach
product
• Clearmessage against animal
testing
Lush
• Historyof Mongolianfamily
that provides raw material
• Translatingtransparency
into sustainability
NaadamCashmere
Transparency &Traceability
03-3
41
RETAIL TRENDS I Retailfor good

42. • CertifiedB-corp
• Assessment of fabrics in their
line to determine pollution
causes
• Shiftedentire cotton line to
organic & incorporate
sustainable materials
Rentthe Runway
• Renting is the new buying
• Rotating selection of clothes&
accessories rental
• No selling product,only
services
Patagonia
• ”the world’s mostcomfortable
shoe”
• Edibleshoesmade of wool and
eucalyptus fiber
• ZQ & ForestStewardship
Council certification
H&MTake Care
• Sewing &embroidery
workshops
• Customer involvement inthe
productlifecycle
• Certified cleaningproducts
• Recyclingservice& Repair
space
Allbirds
Sustainability
03-3
42
RETAIL TRENDS I Retailfor good

43. Lego
• Only toy company named a
WWF Climate SaversPartner
• Minimising the impactof their
footprint
• Using their own wind farm
• Employeeengagementis at a
96%
TOMS
• 1 pair of shoes bought =1 pair
offeredto a child in need
• For other TOMS products, a
part of the income goes to
help others (pair of glasses=
help people in need of eye
care)
Ben&Jerry’s
Making the world a better place
03-3
• CertifiedB-corp
• Promoter of fair trade,world
peace andequality
• Ben & Jerry’s Foundation:
engage employees in
philanthropy& social change
work
Kroger
• Reduce food waste by
promoting the optionof buying
imperfect produce that is still
wholesomeand safe to eat.
• Launched an “ugly produce”
brand in 2018 to encourage
consumers to buy imperfect
fruits andvegetables.
RETAIL TRENDS I Retailfor good
43

44. Personalized experience Cashierless store
Mobile Apps
AR &VR
Voice Commerce
Robots
EmpoweredStore
Associates
44
3.4 HIGH TECHSTORE
Visual Recognition

45. Personalized experience
Mystor-e
03-
4
CaliBurger
• Facial recognitiontechnology
with AI self-ordering kiosks
to provide cutomers the
option of immediately
activating their loyalty
accounts eliminating the
need of swiping acard.
• Artificial intelligence and
predictive analysis to
identifythecustomersage,
genderand "style"in order
to suggest products that
may appeal tothem.
Klepierre
• Klepierresupportsretailersin
improving their business
modelbyproviding them with
data on traffic volume like
stores visited, duration of
visit.
L’Occitaneen
Provence
• Personalized experience
through mobile with
personalizedrecommendation
feed and mix of popular
products and items based on
recent viewing history
updated every fewminutes.
45 45
45
RETAIL TRENDS I High techstore

46. Visual recognition
• Offersanexperiencesimilar to
Amazon Go
• All you have to do is present
yourcredit cardor mobileapp
Aifi Caper
• Autonomous Checkoutwith
Smart Carts
• Once you have completed
shopping, paydirectlyon the
cart,with mobilepayment
SmartShelf
• Connectedshelves,algorithm to
prevent fraud.
• Cameras located within thestore
interpret the entire shopping
basket before debiting the final
amount from customers’
electronic wallet whentheyleave
the store.
Cashierless store
Zippin
• Visual recognition and
computer vision
technologies combinedwith
sensors
• Creditcardlinked to the App
46
03-
4
46
RETAIL TRENDS I High techstore

47. Mobile Apps
Nike
• Shopping entire looks on in-
storemannequins
• Scan barcodes
• Scan totry
• Instant Checkout
Amazon4Star
• Scan a QRcode that’s shown
throughout thestore.
• An unique-to-you QRcode is
created and linked to your
paymentinfo on Amazon,the
cashier scans it and you are
done
Le4Casino
• Designedto be open 24
hours aday
• Simplypresent the app
barcode toenter
• Instant paymentdirectly
from theApp
• Takewhat youwant
• Textwhat youtook
• Paywhat youtook
• Get on withlife
DirtyLemon
47
47
03-
4
RETAIL TRENDS I High techstore

48. AR &VR
Macy’s
• Use a virtual reality headset
to see how your space looks
with furniture in it
• You can do it at home too,
using augmented realityon
the Macy’sapp
• Virtual greeter
.Sayhi to Olivia
when you walk through the
door.
• Olivia can direct you to your
favoriteproduct,share beauty
trend advice or answer a
question. Justask!
Covergirl
Voice commerce
Starbucks
• Voice ordering capabilities
withinthe Starbucks mobile
iOS app and Samsung’s
voice assistant:Bixby
• Vocal ShoppingList App
• Innovative & flexible
customerexperience
• Increase customerbrand
loyalty
Jumbo
03-
4
48
48
RETAIL TRENDS I High techstore

49. Robots
Walmart
• Walmart is testingrobots, built
byBossa NovaRobotics,to see
if they can monitor store
inventory more cheaply than
human workers.
Empowered storeassociates
select and locate items of a
particularsize,color,styleonline
or at another storeand arrange
to haveitems shipped directlyto
the customer’shome.
Orvis
• Orvis associates can engage
withshoppersviaAptos Mobile
Storeon tabletdevicesand
Freshippo
• The restaurant combines
mobile applications, smart
screens, conveyor belts,
mechanicalarms and robot
carts.Orders andpayments
through theapplication
Mulberry
• Mulberry'sstoreassociatescan
access the entire product
catalog, check out customers
anywhere in the store, see
customer profiles, send
personalized messages, and
connect withbackroom
03-
4
RETAIL TRENDS I High techstore
employees.
49
49

50. 5
0
3.5 INTELLIGENT SUPPLYCHAIN
Demand forecasting
Omnichannel capabilities
Last mile
fulfillment
Supply chainefficiency

51. Last milefulfillment
• Customers can place orders
through the mobileapp
• Deliveryin less than 30min for
those livingin a 3km radius
• Somepeople moveto live near
a Hemalocation
Takeoff
• Hyperlocal grocery micro-
fulfillment centerpoweredby
robots andAI
• Faster and cheaperassortment
of orders
• Reductionof carbon footprint
Hema
• Allowscustomersto have
their packages delivered
insidetheir home, garage,
car, without having to be
there
• Eventually, the scope of
servicesofferedwill extend
oj
Amazonkey
• The 211 promise availableto
99%of the Chinesepeople
• White-glovedelivery
• 40,000 deliveriesusing
drones
• Retail-as-a-service
JD.com
03-5
51
51
RETAIL TRENDSI Intelligent Supply Chain

52. Omnichannel capabilities
Target&Shipt Walmart
• Network of numerous
outlets, onlinecapabilities
• Pick-up Towers: order
online,pick-up in storevery
easily andquickly
• Targetleads the wayin
omnichannelgrocery
• Stands as the“Anti-Amazon”
• Innovativeomnichannel
capabilities
EileenFisher
• Objective:Build a unified and
omnichannelinventory
• Develop SFS andBOPIS
capabilities
• Boost accuracyand trust in
inventorydata
DecathlonLab
• 5,000m2 outlet in Singapore
open 24h/24
• Web to storeveryquick
• Storeto web veryfast
• Mobile paiementexclusively
52
52
03-5
RETAIL TRENDSI Intelligent Supply Chain

53. Supply chainefficiency
Ocado
• Automated logisticsolutions
for retailers
• 36,000m2 ofautomated
warehouse for Monoprix
• 50-item order ready in 5
minutes
Undiz
• Innovative and efficientorder
fulfillment: delivery of the
order in acapsule (pneumatic
tubes)
• Optimization of theoutlet’s
surface
• Very easy returnpolicy
DHLandAR
• IntroducesAR glassesfor
employees within its
warehouses
• 15% increasein productivity
• Faster and moresimple
onboarding process
Lenovo
• Uses cognitive capabilities to
getinsights out of internal and
externaldata
• Reduces response time to
supply chain disruption by
90%
• Reducesits operational costs
03-5
53
53
RETAIL TRENDSI Intelligent Supply Chain

54. Demandforecasting
• Aims at reducingfood waste
• AI-baseddemand
forecasting
Afresh Hovis
• Leveragedatato getinsights
on the quantity of bread it
should produceand whereto
ship it
Mr.Bricolage
• Avoids stock-outandover-
stock
• Supply automationdepending
on demandscenarios
• Vekia’s client for 5 years
• Ambition to deployit in all
outlets inFrance
03-5
Conad
• Price optimizationsolution
• Faster reactiontime
• Improved competitive
positioning
• Increased returnon
promotions
54
RETAIL TRENDSI Intelligent Supply Chain
54

55. 0
IBM VISION
5555

56. Digital Experience & Engagement Digital EnterpriseOperations
Intelligent SupplyChain
56
IBMplatforms&offerings: DISCO
56
Greater supply chainvisibility
Blockchain, Watson Customer Engagement, WatsonIoT
Data Platforms
(MetroPulse)
Intelligent Processes & Apps
(Watson Customer Engagement,Services)
Enhance DemandForecasting
(MetroPulse, Weather)
Next Generation Enterprise Architectures
S4/HANA
Hybrid Cl
Cloud
Migration
(ICP
, oud)
Optimized Operations
(Services, Security,Mobile)
Product and Asset
Optimization
(MetroPulse, Watson IoT)
Design & ExecuteEnhanced Experiences
Watson Customer Engagement, iX,Watson
Re-Platform TheStore
(re:Store)
Customer Data
and Insights
(Advanced CustomerEngagement)
Product
Innovation
(Watson)
IBM VISION

57. 1-800 flowers
Uses a AI-powered chatbot GWYN(Gifts WhenYou Need)
• Finding the perfect gift, delivered quickly and within budget
• Manage multi-brands (Flowers but also chocolates,fruits etc.)
• 80% of users say they will use GWYNagain
Leroy MerlinBrazil
Uses IBM Watsonfor the ConsumerChatbots
• Optimize customer service through digital platforms
• The virtual assistant takes questions about store addresses, trading
system, services and openinghours
DigitalExperience&Engagement
57

58. Unilever
Unilever uses IBM MetroPulse, using internal and hyper-localized external
data, to get actionable insights and use it to act with agility (truly
personalized offers, assortments, moreresponsive supply chains, targeted
servicesand much more)
Walmart
Walmart now uses IBM FoodTrust to trace its lettuce, spinach and mangosto :
• Avoid contamination in the supply chain
• Enable customers to knowin details where their food come from but also
how it was produced and shipped
IntelligentSupplyChain
58
IBM VISION

59. COFCO
Having done major acquisitions in recent years, COFCO International is
looking to build a global platform for its growing business and has selected
SAP S/4 HANA to be a catalyst for the organizational transformation
4 Casino
4 Casino uses Watson IoT and Watson capabilities to
• Better master the cold chain
• Monitorout of stock
• Ultimately improveoperational efficiency and take better care of
customers’health
59
DigitalEnterpriseOperations
IBM VISION

60. 6
Business
Transformation
Imperatives
Selected
Technology &
Industry
Platforms
Architecture
Industry expertise
Digital Experience&
Engagement
Seamless brand experience at Home - On
the Go - In the Store
Watson Assistant
AdvancedCustomer
Engagement
Intelligent SupplyChain
Build trust by reliably delivering with
agility anywhere
IBM Food Trust
IBM TradeLens
Watson Supply Chain Insight
MetroPulse
Digital EnterpriseOperations
Re-invent the model for efficient associates
and continuously funded innovation
Watson IoT
AI / Watson Mobile
Data Cloud Security
CPG Retail Agribusiness
IBMplatforms&offerings
IBM VISION

61. Contact :
Sandrine Lebouc
Consumer Industry, MarketingLeader
IBM France
sandrinelebouc@fr.ibm.com
Linkedin
@SLebouc
March2019