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Markus Mueller, Director Industry Engagement Apparel & General Merchandise, GS1 Global Office
21st century retailing
Global challenges & global opportunities
September 14th, 2017
© GS1 2017
Overview
1. Sector specific challenges and opportunities2. Industry & Standards Event3. Questions & Discussion
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1. Sector specific challenges and opportunities
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The competitive landscape changesdramatically
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Brand owners andretailers have beenconcentrating onb2b efficiencies inthe past – as thecompetitivelandscape changesdramatically theyhave to look at theentire supplychain frommanufacturer toconsumer
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Long and complex supply chains
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UPSTREAM
DOWNSTREAM
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6 major sector challenges
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Consumersdemanding “Always
On” shoppingexperience
Stock efficiencythrough increased
visibility data
New fulfilmentstrategies constitutenew sales channels
Consumer returnsdirectly affectprofitability
Traceability alongincreasingly
complex supplychains
The common issue:master product data
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Customers are demandingthe “Always On” shopping experience
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• The modern consumer expects to be served whereshe wants, when she wants, how she wants
• Technology and connectivity has created an arenathat drives customer purchases from a variety ofsources, both in store and through electronicvenues
• A strategic retailer will use the entire inventory tosatisfy demand
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Stock efficiency
• To be able to compete with online shops and marketplaces like Amazon,Alibaba, ebay, Flipkart etc. retailers have to be reactive and improveproduct availability.
• Keeping high levels of stock to guarantee on-shelf availability and onlineavailability causes excessive costs.
Shorter lead times, more efficiency along the supply chain andbetter stock or merchandise visibility!
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Fulfilment strategies constitute new saleschannels
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• Shop In Store• Shop at Home, Ship to Home• Shop Online at Home, Ship to Store• Shop Online from Store, Ship to Home• Shop Online from Store, Ship to Store• Hold at Store• Shipping to Home from Online Distribution Center• Shipping to Home from Store Distribution Center• Store to Store Transfers
New Channels REQUIRE Higher Inventory Accuracy !
traditional
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Consumer returns directly affect profitability
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• Online/Omni-channel retailers face returnratios of up to 50 % huge cost driver
• Issues to be handled efficiently- Is returns shipment complete?- Do shoes pertain to the same pair?- When and where were the shoes bought?- Are returns legitimate?- Is there an attempt to defraud?
© Market Watch
© New York Times
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Traceability along the supply chain
• Traceability, Sustainability and Corporate Social Responsibility areincreasingly important across Apparel & General Merchandise sub-sectors,due to
- Existing or future regulation
- Increasing consumer interest
- Pressure from NGOs
- Awareness programs and frontrunners
- Scandals and their consequences
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The common issue: master product data
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Rapanuiclothing.com & The North Faceoutstanding examples for online & offline product information
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The North FaceRapanui Clothing
70% of all salesare influenced by informationconsumers find on the web.
87% of consumers sayaccurate, rich, and completeproduct content is veryimportant when decidingwhat to buy.
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Projecting challenges into GS1 world –How we intend to help the sector!
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Extended masterdata & dataquality
• Automated production and packaging• Component identification, e.g. organic cotton fabrics• Visibility Data within Supply Chain
• Anti-counterfeit• Product safety• Sustainability & Corporate Social Responsibility
EDI & RFIDDownstream & Upstream
Traceability & Sustainability
• Product images• Attributes & marketing texts• Big data, cursed shopping, chat bots
Unique identification & SmartSearch
• Products sold online need unique ID keys• Content on the web cannot be removed• Product lifecycle extends (ThredUp etc.)
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October 9th – 12th in Brussels
2. Industry & Standards Event
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Apparel & Omni-channel Tracks
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Why attend?Speakers, user companies, industry associations,academia, solution providers as well as memberorganisations, covering a wide range of innovativetechnologies and best practices.
Who should attend?Business leaders, trading partners and technicalexperts interested in the evolving landscape ofOmni-channel retail.
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3. Questions & Discussion
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Contact Information
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Markus Mueller
Director Industry EngagementApparel & General Merchandise
[email protected]+49 151 27554445
GS1ME
www.gs1.org
