My study of Big Data and its impact on Retail Sector

1. Big Data Analytics In Retail
Industry
-- By Vivek Chutke
Jan 29 2017

2. Agenda--
 What is Big Data
 What is Retail Industry
 Facts and Figures from Retail sector
 Big Data in Retail Industry
 Future of Retail Using Big Data
 Investments by Major Retailers
 Big Data Challenges in Retail Sector
 Q & A

3. What is Big Data?
 Any voluminous amount
of structured, semi-
structured and unstr
uctured data that has the
potential to be mined for
information
 Large/complex data sets
that traditional data
processing applications
cannot deal with
Cont...

4. Data is Exploding – 40 ZettaBytes by 2020!
DATA DRIVERS:
More Companies – Implementing ERP and CRM
Mergers & Acquisitions – duplication of data
Legislation Changes to retain data
SMARTER WORLD adding more data:
Social Media – FB/Twitter/WhatsApp/LinkedIn etc.
IOT – Internet of things
Infrastructure & Software Improvements
Hardwarecosts
DataGrowth
Will fill 1,000
datacenters or
about 20% of
Manhattan, NY.
Will fit 200,000
photos or mp3
songs on a single
1TB hard drive
Will fit in 2,000
cabinets and fill a 4
story datacenter
that takes up a city
block.
Will fit the states of
Delaware and
Rhode Island with
million datacenters.
Will fit on 16
Backblade storage
pods racked in two
datacenter cabinets
*

5. Data Collected is Big!
What book they like on Facebook ?
What book they tweet ?
What blog they read ?
 Name
 Age
 Date of Birth
 Transaction history
 Store visit frequency
 Things that attract you
 Point of sale data
 3rd party demographic & psychographic data
 Geo-location data
 Product inventory and placement data
 Advertising impression data across media;
 online, TV, radio, print, email
This is Big
data
Cont...

6. Big Data Overview
Cont...

7. What is Retail Industry ?
 The retail industry is defined as the selling of
consumer goods or services to the end buyer.
 Retailers purchase merchandise from
manufacturers in large quantities for resale
to consumers at a profit.
 The domestic Retail Store industry, is mature
and highly competitive
 Many retailers have been in business for the
better part of a century and thus, have had
time to fully cover targeted markets.
Cont...

8. Total retail sales worldwide
Cont...
InTrillionU.S.dollars

9. Retail - eCommerce
Cont...

10. Retail – From India Perspective

11. How is Retail Leveraging Big Data?
Retail data is increasing exponentially in Volume, Variety,
Velocity, Veracity and Value with every year. Smart
retailers are aware that each one of these interactions
holds the potential for profit. Follow on…
 Changing how retailers approach customer personalization and
assortment planning
 Identifying product attribute drivers
 Collecting customer sentiment and social media data
 Uncovering influential customers through social media
 Analyzing loyalty(Plenti) programs to identify profitable
customers
 The Omni-Experience
 Free Returns
Cont...

12. How is Retail Leveraging Big Data?
Recommendation Engines
 Based on a customer’s purchase history, what is he/she
likely to purchase next?
Path to Purchase
 Analyzing a purchase or the path to purchase
Customer 360
 Customers expect companies to
• Anticipate their needs
• Have the products wanted on-hand
• Communicate in real time(via social media/mobile)
• Adapt to their needs as they change
Cont...

13. How is Retail Leveraging Big Data?
Price Optimization
 The right price on a product can mean the
difference between making a sale and losing a
customer
Forecasting
 Demand forecasting
 Trend forecasting
 Sales forecasting
 Inventory forecasting
 Timely Offers

14. Future of Retail Using Big Data
Big Data and IoT
 Stores will be enabled with
sensors that detect a nearby
shopper with the app on their
phone or tablet
Flights of Fantasy
 Too optimistic, But that day is
not far when Big data would
help retailer zoom drones
through the skies to deliver
consumers packages that they
haven’t even ordered yet.

15. Investments by Major Retailers
Wal-Mart
 The world’s biggest retailer with over 20,000 stores in 28
countries, is in the process of building the world’ biggest
private cloud, to process 2.5 petabytes of data every hour
Amazon
 Amazon is planning to invest big in Big Data to combine
artificial intelligence with customers buying patterns,
purchase history to create a zero-click retail experience. By
doing this they would just ship stuff without customers
even ordering them. (Prime Customers first Target)
 Big Data Analysis suggest Amazon to have their own fleet
of ships for shipping goods from various merchants to U.S.
to have consistency and thereby increase there profits

16. Big Data Challenges in Retail
The Perils of Using Consumer Data
Equal Opportunities for Equal Credit
If the SOX fits…
The Danger of Predictive Analytics
Complexities in finding patterns because
of the ever changing data patterns

17. Questions ???