Arun Gupta, Customer Care Associate and Group Chief Technology Officer, Shoppers Stop presented at the Premier Business Leadership Series 2010, http://www.sas.com/theserieshk.
With many retailers worldwide struggling to maintain revenues, how do you grow in such a tough competitive landscape? As a leading Indian retailer and pioneer in using technology, especially business analytics, Shoppers Stop is not only thriving but has helped revolutionise the retail sector. Gupta will share insights on using analytics to drive business value, reduce operational costs and provide better products and customer experience.
Interoperability and ecosystems: Assembling the industrial metaverse
Revolutionising Retail with Business Analytics Insights
1. Business Analytics Insights Session
Revolutionising Retail with Business Analytics
Arun O Gupta
Customer Care Associate and Group Chief Technology Officer
Shoppers Stop
3. K Raheja Corp and Shoppers Stop
• A large and well established real estate developer, with several decades of experience in India
• Expertise across different major real estate formats. Pioneering role in India in development of
concepts such as self contained townships and modern business parks
self-contained
• Ranked as “Best Developer” in India in 2007 and 2nd in 2008 & 2009 by Euromoney (Real
Estate Awards)
• Also ranked 7th amongst real estate developers globally by Euromoney (Real Estate Awards –
2009)
Commercial Malls Residential Hospitality Retail
IT Office SEZ
IT-Office-SEZ
Renaissance(1)
Mumbai Hotel & Convention Centre
JW Marriott Hotel(1) (2)
Mumbai
Marriott (1) Executive Apts
(4) Lakeside Chalet, Mumbai
( )
(1)
(1) Run under management agreements by third parties Vashi, Navi Mumbai
(2) K. Raheja Corp is one of the shareholders
(3) Licensing arrangement Real estate businesses
(4) Franchise arrangement with Servcorp
Non-real estate business
4. Retail presence
Presence in 18 Cities Over 2 million square feet of retail space
O f f
– Shoppers’ Stop 32 Amritsar
– Home Stop 4 Delhi(3)
Gurgaon
g Noida
– Mother Care 24 * Ghaziabad
– MAC (13) +
Jaipur (2) Lucknow
Clinique (3) 19
Estee Lauder (3)
– Crossword 61 ** Bhopal
– Time Zone 6 Kolkata(3)
– Airport [Nuance] 2
– HyperCity 7 Mumbai (8)
Pune ( )
(2)
Hyderabad (3)
* Including 13 Shop in Shops
** Includes 24 Franchisee Stores Bangalore (4)
Chennai
As of August 2010 1.7 million First Citizen Members
5. Retail in India
Consumption to exceed $ 1.5 trillion by 2025
Organized retail is estimated 6% of total in 2010
6. To B or not to B, it’s scary
Source: Gartner report 2009
Because of lack of information,
processes,
processes and tools through
tools,
2012, >35 % of the top 5,000
global companies will regularly
l b l i ill l l
fail to make insightful decisions
about significant changes in their
business and markets
markets.
That’s 8 million results !
10. Current reality helps assess way forward
Are reports ineffective now ?
Do you spend a lot of time with spreadsheets ?
Unable to correlate different dimensions ?
Need to integrate external data ?
N dt i t t t ld t
Response time a challenge ?
Question is “Is Analytics the answer ?”
Is ?
11. Euphoric expectations from monolithic projects
Enterprise Datawarehouse is complex
Multiple sources lead to conflicts
Most data warehouses are Orphans
Starting point is always reports
Tool adequacy remains a challenge
q y g
Analytics to insights can take eons
12. Our tryst with analytics
Began in 2004 to analyze First Citizen behavior
Low budget exercise, limited impact felt by 2005
Retail boom started in 2006; pressure on growth
Netezza appliance based EDW in 2007
Investments in SAS tools in 2008
2009, explored alternative engagement models
2010,
2010 we are here !
13. Data, data everywhere, where to begin ?
• Transactional systems
Data • Financial transactions
sources
• Customer loyalty
• Market Basket Analysis
Dimensions • Customer segmentation
• Inventory optimization
Even when everything works, data quality issues exist
14. Customer Segmentation, a journey
• R li i
Religious F ti l
Festivals
Indian shopping
revolves around • Birthdays, Weddings and
Anniversaries
Multitude of
f • S ll community i th east
Small it in the t
communities create • Traders linked to market
pp
opportunities movements
• U t k higher with extended
Uptake hi h ith t d d
Customers like deals, timelines
but …
• Sometimes you also fall flat
15. Operational efficiency takes time (intuitive analytics)
Intuitively there is a lot that can be done
Customers do not buy based on our intuition
Segment slow movers; focus on Out Of Stock
Category analysis improves fill rates
Availability drives sales
y
Beyond what, knowing why is important
17. A Paradigm Shift
Is your Analytics
Team willing to take
on revenue target ?
Are you ready to accept the challenge ?
y y p g
18. One view of the customer ?
All of us are multi-faceted
Privacy concerns pose challenges
Pi h ll
Demographic data gaps
Business model defines correlations
After you have the 1-view, what changes ?
For you and the customer !
19. How have we benefited
Consistent quality of data
Information time to market improvements
Statistical trend analysis
Higher realization from First Citizens
Segment-wise targeted marketing
g g g
Influence in store merchandise
20. Way forward
Leverage • Operational efficiency
insights to • Exclusive Merchandise sell through
• Customer Service
improve
• Net Margins
Financial
Fi i l • Average Ticket Value and Net
Weeks Cover
metrics
et cs • R
Revenue growth
th
Revolution ? Evolution has higher possibility of success
21. Lessons learnt
Find at least one business ally
Vendors have SMEs too, get them
All solutions work look at scalability
work,
Invest a lot in usability
Be prepared for data quality surprises
p p q y p
Spreadsheets are here to stay
22. Questions ?
Q ti
Oh I See: htt // i i
S http://cio-inverted.blogspot.com
t d bl t
arun.gupta@shoppersstop.com
g p @ pp p
Thank you