This presentation identifies what's driving the digital transformation and the four ways you can leverage these changes for growth.

1. Digital influence is changing retail: How can you leverage these changes Page 1
Copyright © 2017 Brick Meets Click.
Digital influence/eCommerce is
changing retail
How can you leverage these changes?
November 13, 2017
Bill Bishop
Chief Architect, Brick Meets Click
Bill.Bishop@brickmeetsCcick.com
847.380.8880

2. Digital influence is changing retail: How can you leverage these changes Page 2
Copyright © 2017 Brick Meets Click.
Digital = Disruption
Digital is
eclipsing
traditional
media

3. Digital influence is changing retail: How can you leverage these changes Page 3
Copyright © 2017 Brick Meets Click.
1. More aggressive
competition led by
tech giants and the
biggest players in
each sector
✓ Tech giants have
the resources and
the imperative
✓ Biggest players
have the resources
and most risk
✓ There is an almost
unlimited supply of
digital innovation
What’s driving digital transformation?
Can the Tech Giants Be Stopped? WSJ – July 14,2017

4. Digital influence is changing retail: How can you leverage these changes Page 4
Copyright © 2017 Brick Meets Click.
2. Customer expectations are rising rapidly for greater speed and
convenience
What’s driving digital transformation?

5. Digital influence is changing retail: How can you leverage these changes Page 5
Copyright © 2017 Brick Meets Click.
Expected to continue to grow
1. Impact of digital natives
2. An expansion of ordering methods including voice activated speakers
What’s driving digital transformation?

6. Digital influence is changing retail: How can you leverage these changes Page 6
Copyright © 2017 Brick Meets Click.
Most traditional retailers aren’t
keeping up with this trend
They are focusing on the competition, not the customer and are in a
bit of denial

7. Digital influence is changing retail: How can you leverage these changes Page 7
Copyright © 2017 Brick Meets Click.
To show you how eCommerce and digital are
influencing different retail verticals and what you
can do about it
What we’ll cover
• Relationship between digital influence and eCommerce
• Growth of eCommerce
• How leading retailers are responding
Today’s Objective

8. Digital influence is changing retail: How can you leverage these changes Page 8
Copyright © 2017 Brick Meets Click.
Happens when a
customers use any
digital device to
shop/buy or to make
decisions about
shopping
What is digital influence?
Extends beyond traditional eCommerce transactions
The
NEW
Information
Environment

9. Digital influence is changing retail: How can you leverage these changes Page 9
Copyright © 2017 Brick Meets Click.
Main categories
1. Greater transparency into product choice & price
2. Increased availability of info about products
3. Shared product experience; e.g. ratings and reviews
What is the new info environment?

10. Digital influence is changing retail: How can you leverage these changes Page 10
Copyright © 2017 Brick Meets Click.
The result of
Why has digital influence exploded?
Easier access to
info via the
internet/mobile
Increasing expectations
by customers to know
more about the products
they are considering

11. Digital influence is changing retail: How can you leverage these changes Page 11
Copyright © 2017 Brick Meets Click.
Generally greater for infrequently purchased products that typically receive
more consideration - but that can change
When is digital influence most important?
Food &
Groceries
Clothing
Electronics Automotive

12. Digital influence is changing retail: How can you leverage these changes Page 12
Copyright © 2017 Brick Meets Click.
Q. How much of each $100 spent in
retail is subject to digital influence?

13. Digital influence is changing retail: How can you leverage these changes Page 13
Copyright © 2017 Brick Meets Click.
According to Deloitte – 2016 research
A. 56% of
every dollar
spent in-store
is subject to
digital
influence

14. Digital influence is changing retail: How can you leverage these changes Page 14
Copyright © 2017 Brick Meets Click.
Overall growth of eCommerce

15. Digital influence is changing retail: How can you leverage these changes Page 15
Copyright © 2017 Brick Meets Click.
By end of 2017
$889 billion
(11% of total US B2B sales)
By 2021
$1.2 trillion
(13% of total US B2B sales)
B2C is big, B2B is huge
Source: Forrester estimate
B2B sales

16. Digital influence is changing retail: How can you leverage these changes Page 16
Copyright © 2017 Brick Meets Click.
Growth of Online shopping & buying
Since 2006, global
eCommerce has
grown annually 20%
while brick & mortar retail
has stayed flat
And more growth is
projected by 2021

17. Digital influence is changing retail: How can you leverage these changes Page 17
Copyright © 2017 Brick Meets Click.
Growth of Online shopping & buying
Alibaba’s sales =
$25+ billion
The greatest amount
ever spent in 1 day
Source: TheEconomistSpecialReport – October 2017
New marketing to create demand
“Singles Day”
Nov 11, 2017

18. Digital influence is changing retail: How can you leverage these changes Page 18
Copyright © 2017 Brick Meets Click.
What’s pacing the growth of eGrocery?
Growth of Online shopping & buying
4 market
level
factors
Availability
Adoption
Profitability
Fulfillment
options

19. Digital influence is changing retail: How can you leverage these changes Page 19
Copyright © 2017 Brick Meets Click.
Years
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8 9
Atl NYC Chi
Market Share Projections
Growth of Online shopping & buying

20. Digital influence is changing retail: How can you leverage these changes Page 20
Copyright © 2017 Brick Meets Click.
Source: Brick Meets Click Competitive Assessments, June 2017
‘97 ‘17
MODEL
RANGE
Amazon is learning what it takes to win at
grocery!
Growth of Online shopping & buying

21. Digital influence is changing retail: How can you leverage these changes Page 21
Copyright © 2017 Brick Meets Click.
1. Price matching
2. Focusing on customer service
3. Turning the store into a
showcase and shipment
center
4. Cutting costs quietly

22. Digital influence is changing retail: How can you leverage these changes Page 22
Copyright © 2017 Brick Meets Click.
Growth of online shopping & buying
Not evenly distributed
Reasons
✓ Bytes vs. Atoms
✓ Cost/benefit to
buying online
✓ Need to see/touch
the product

23. Digital influence is changing retail: How can you leverage these changes Page 23
Copyright © 2017 Brick Meets Click.
1. Track customer activity in terms of what
• They’re doing online
• Business pressures and what they want/need to do
What you can do: How are leading retailers responding?

24. Digital influence is changing retail: How can you leverage these changes Page 24
Copyright © 2017 Brick Meets Click.
2. Gain experience from short term
partnerships
What you can do: How are leading retailers responding?

25. Digital influence is changing retail: How can you leverage these changes Page 25
Copyright © 2017 Brick Meets Click.
3. Begin to rebalance your business in ways
that build on your strengths
What you can do: How are leading retailers responding?

26. Digital influence is changing retail: How can you leverage these changes Page 26
Copyright © 2017 Brick Meets Click.
4. Collaborate to grow sales
What you can do: How are leading retailers responding?

27. Digital influence is changing retail: How can you leverage these changes Page 27
Copyright © 2017 Brick Meets Click.
Start the process for digital transformation
Your next step
“Test & learn”