Current Scenario in

APAC

Percentage of shoppers who are using social media site to make their purchase

decisions

63%

37%

Use Don’t Use

Percentage of total research time spend on connected devices for each grocery

shopping activity

Category wise market share in overall online grocery in 2012

53%

24%

13%

10%

< 25% 26% - 50% 51% - 75% > 75%

Conduct Research Online

Purchase a Product

Comapre Prices

Look for Deals

Read the Retailer's News

Provide Feedback

0% 10% 20% 30% 40% 50% 60% 70% 80%

Percentage of shoppers who engage in different activities during household grocery shopping

43%

21%

16%

4%

17%

Food Beverages Personal Care Household CareOthers

Percentage increase in the online grocery spending over the last five years on a per capita basis ($)

Middle East

America

Asia Pacific

Europe

0% 5% 10% 15% 20% 25%

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Driv

ers f

or O

nlin

e Su

pers

tore

s in

Sing

apor

e Current

Scenario in APAC

Demographics Consolidated traditional retail market

Median age of a Singaporean is just 33 years suggesting that most of the population would be familiar with internet and its usage Unemployment rate is under 2% indicating the rise of ‘Cash Rich Time Poor’ population 40% of the residents in Singapore are foreigners who create a huge demand for different products from foreign countries High purchasing power and low availability of leisure time encourage the trend of easy and convenient shopping at online groceries stores

Two largest players, NTUC Fairprice cooperative and Dairy Farm International Holding, alone capture above 50% of traditional grocery outlets Very few hard discounters and hence less price competition Create an opportunity for online grocery retail to exploit the economies of scale and pass on the discount to consumers Provide a chance to store varied products to cater the need of a large customer base Reduces the cost of expanding into new territories and acquiring new customers

More than half of the population use social networking sites like Facebook Mobile penetration is extremely high at around 150%, most of them prefer smartphones With such a high connectivity, it is easier to extract customers insights and determine products and services future Social connectivity increases marketing efforts as it helps in customizing the advertisements as per the target preferences Most of the shoppers look for reviews and recommendations before buying a product

Broadband penetration is more than 100%, providing hi-speed service plans upto 1Gbit/s Majority of the population lives in large metros/cities which makes it easier to deliver online groceries in an efficient manner Due to lack of space, most of the cities have just one or two traditional stores, which creates a dire need for online grocery Strong infrastructure helps in creating a robust operation model throughout the system

Very high level of Social Connectivity Strong Infrastructure

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Current Scenario in

APACCo

mpe

titive

Ana

lysis

of t

op tw

o pl

ayer

s in

Sing

apor

e

Fairprice

Cheers

7-Eleven

Cold Storage

Shop N

Save

Giant

Value for Money Pricing Premium Pricing

Lim

ited

Rang

e

E

xten

sive

Ran

ge

Windows for Opportunity

Priceless

Dairy Farm International Holding

Opportunity 1 Opportunity 2 Opportunity 3

Expand Product Range

As evident from above fig., Priceless is currently having a limited range of products in supermarkets. With increase in the varied demand from the consumers, its high time that Priceless starts moving up in the 2nd quadrant

Expand into 1st Quadrant

With the rise in ‘Cash Rich Time Poor ’ population, there is an opportunity to launch stores with higher perceived value for consumers. Outlet concepts like the. Thai Street and Japanese corner can help in this transformation

Prevent Current Market Share

With more and more competition coming in, it is imperative for Priceless to tweak its business model to serve customers in a better manner

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Current Scenario in

APACBe

nefit

s and

Cha

lleng

es o

f O

nlin

e Gr

ocer

y St

ores

Infinite Product Offering Value for Money Shopping Convenient Shopping

Online supermarkets can have a large assortment of products catering to the demand of much larger user base

These online stores will act as demand aggregators, hence making it economically viable to store less frequently selling products

Delivery Services

Lack of truly flexible and optimized delivery system can undermine the online ordering convenience

Delivery charges (though can be charged) undermine the potential saving messages of online shopping. A robust back-end infrastructure is a must

Most of the online stores enjoy economies of scale, which in turn is transferred to end consumers through discounts and deals

The online stores also offer price comparisons. Hence, each store tries to provide the most competitive price

The online stores will reduce the overall time spend on the household shopping

With more and more customers using their smartphones to access internet, online store will provide an on-the-go shopping experience

Sensory Factors

Even most of the regular online shoppers are not frequent grocery shoppers. Inability to see/touch the real product hampers the purchasing decisions

This trend is amplified in perishable food items

Trust

Chances of wrong product selection/ substitution decreases the credibility. Customers don’t trust others’ choices on their behalf

Customers might be reluctant to share their personal data before making an grocery purchase

Benefits

Challenges

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Busin

ess M

odel

for

Onl

ine

Groc

ery

Stor

es in

Sin

gapo

re

Current Scenario in

APAC

Store to Home Click and Collect

Warehouse to Home Drive Through

Home Delivery Pickup

In

-sto

re P

icki

ng

War

ehou

se P

icki

ng

AdvantagesQuick to adopt Can leverage your existing business model

Disadvantages High Delivery Cost Unavailability of ordered product in nearby stores Interfere with the daily operation of supermarket Customer has to be present at the time of delivery

Advantages Easiest to implement Can leverage your existing retail network

Disadvantages Customer sees little difference in offline and online channels, hence unwilling to pay any premium Unavailability of ordered product in nearby stores

Advantages Benefits of scale economies Infinite number of product offering

Disadvantages High level of customer service required can make it quite expensive for grocers

Advantages Highly efficient pickup processes, could take even less than 5 mins Economies of scale benefits Convenience to customers

DisadvantagesHigh level of customer service required

Clearly, ‘Store to Home’ and ‘Click and Collect’ model seems to be most appropriate for Priceless to start its journey in the online grocery retail

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Mobile, Social & PC growth

Evolving consumer behavior

Retailer’s Goal

Connect Interaction

Gain actionable

insight

Optimize operations

Web Commerce

Customer Relationship

Loyalty management

Business intelligence

Merchandise planning

Pricing strategy

Inventory planning & forecasting

Supply chain/cross channel fulfillment

Merchandizing

Goal Action Points

Build

ing

Bloc

k of

Onl

ine

Supe

rmar

ket

Create a customer experience Platform

Measure satisfaction across touch points

Re-focus for measurable results

Embrace advanced analytics in the era of big data

Focus on cross-channel capabilities

Optimize operations in real time

Leverage one version of truth

Gain visibility into product availability

Improve the back-end to perfect the front-end

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Organization’s Problem – Unable to scale when needed

Experiences consumer do not want

Unhappy consumer

Unpredictable consumer

Traditional Retailing

Missing big opportunities

Nee

d fo

r Agi

lity

to

Configure

Optimize

Scale Expe

rienc

es

Need for system to retrieve most relevant

info in real time

Adaptive experience

Dynamic merchandizing

Content targeting

Product intelligence

Experience optimization

Happy user

Modern online retailing Create a customer experience

PlatformDeliver targeted user-centric experiences in a scalable wayAllow business users to guide and influence customers without having to predict their path, set up scenarios, or engage ITIntegrate with technologies like Web analytics , recommendations , and user reviews to automatically drive elements of the experienceMix and match data-driven , dynamic content and static contentLess no. of clicks to buy a productEasy to register & avail promotional offers

Engage More Convert More

Connect InteractionGain Actionable Insight

Optim

ize operations

Web commerce

Measure satisfaction across touch points

Collect and analyze customer data across all channelsMeasure customer satisfaction at all touch pointsGive customer ownership of channel experienceShare up-to-date fulfillment, planning and execution information across channels

Customer Relationship

Build

ing

Bloc

k of

Onl

ine

Supe

rmar

ket

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Consumer orders Recipe X basket

Customer Loyalty

Cost effective purchase for consumer

Added to cart

Recipe Recommendation

Loyal customer Repeat purchase

Connect InteractionGain Actionable Insight

Optim

ize operations

Refocus for measurable results

Improve customer profitability by rewarding the "right" customer behaviorReduce costs by automating loyalty management business processesMaximize the effectiveness of customer interactionsReduce expenses by having members update information onlineIntegrate loyalty programs with complementary partner programsDevelop consistent loyalty program, where customers can register, check loyalty balance, redeem rewards and access specials across channelEmploy personalization recommendations i.e. recipe ingredient recommendation, monthly shopping recommendation

Loyalty Management

All Ingredients of Recipe X

Ingredient Quantity

A 100gm

B 150gm

C 50gm

Monthly basket Recommendation

Consumer makes a monthly grocery purchase

Information recorded in system

Item list

Item Quantity

A x

B y

C z

Next month consumer

orders monthly basket

Last month’s items are added

to basket

Next month co

nsumer

makes some ch

ange

and then orders

Updated items are added to

basket

Very convenient, time saving and addictive shopping

Build

ing

Bloc

k of

Onl

ine

Supe

rmar

ket

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Merchandise planning issue

No over-stock, solid markdown strategy, solve

allocation issue

Structured data

Synchronization issue, data unstructured

Cut-throat competition in retail

Tailored Solution Increased Revenue

Connect InteractionGain Actionable Insight

Optim

ize operations

Embrace advanced analytics in the era of big data

Allows retailers to determine which items to promote to which customers using which methodsProvides insight into how products are selling across various customer behavioral attributesPerforms customer segment analysis based on demographics, customer value (recency, frequency, monetary analysis), lifetime/potential value, behavior, and item importance.Determines product affinities by performing market basket analysisDelivering personalized, tailored offerings to individual customers can derive improved revenue conversion

Business intelligence

ERPPOS CRM

Business Intelligence

Focus on cross-channel capabilities

Connecting siloed source of data and embed science and analytics Delivers workflow and a decision framework that allows for what-if scenarios and comparisonsMaximizes margins over the item's entire lifecycle, not just during the full-price selling periodEnables retailers to monitor performance of past and ongoing markdown activities against financial and operational goalsProvides visibility into below-chain-level forecast recommendations, recommended new retails, and gross margin costs of delayed decisions

Merchandise planning

Build

ing

Bloc

k of

Onl

ine

Supe

rmar

ket

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Accurate Demand Perfect service

Connect InteractionGain Actionable Insight

Optim

ize operations

Better Demand

forecasting

Optimize operations in real time

Sell through of each assortment improved, resulting in better margin and inventory turnMore effective quarterly transitions to new assortmentsReduced in-store capacityEffective price laddersNo of markdowns increased from monthly to bi-weekly

Leverage one version of truth

New planning system-from pre-seasonal analysis to strategic assortment analysisLine plan and buying plan moved to store level rather than basing the plans on the total chainCustomer demand forecast drives time-phased inventory replenishment calculations

Gain visibility into product availabilityDirect to consumer fulfillmentAgility driven by simplicity , visibility and velocityRetailers gain visibility into current and projected orders, inventory, and supply-chain performanceStore inventory needs are aggregated into associated warehouse’s replenishment plan

Improve the back-end to perfect the

front-endSplit offers and ship more effectivelyStreamlining merchandizing and pricingManages key foundation data: hierarchies, suppliers, locations, and itemsEasily handles multiple brands, countries, and/or channels

Pricing strategyInventory planning &

forecastingSupply chain/cross channel fulfillment

Merchandizing

Accurate Replenishment

planning

Inventory Optimization

Low inventory holding cost

Better service level

Secure, reliable & scalable

Build

ing

Bloc

k of

Onl

ine

Supe

rmar

ket

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Futu

re R

oadm

ap fo

r Pric

eles

s Current

Scenario in APAC

Current Scenario in

APAC

Strategic Options for Priceless

Customer Management

Optimizing Operations

Future Roadmap

Basics Features

Increasing Traffic

Advanced Features

Branding/ Community

Convenient is the biggest factor for which customers opt for online grocery store

This feature should be considered in all the aspects of online store

Some of the must have features should be: Aesthetic design, security, robust server, easy payment processing, service call centre, basic survey

Once basic features are done, focus should shift towards increasing the user traffic to the store

With the increase in smartphone usage, it has become necessary that the online store is optimized for the mobile version

Several features like SEO, shopping feeds, ads, discounts, etc. can help in this area

Next Priceless should consider about creating a fruitful engagement with the customers

Such kind of engagement will lead to customer loyalty which in turn will help in repeat purchase

Features like: product reviews, stories/testimonials, recommendations, personalization, online chat, etc will help in this regards

Finally company should look towards creating a Brand value for the online store

This can be achieved through mobile widgets, wikis, loyalty program, product videos, etc

Creating a brand will help attracting new customers at a lower cost and retaining them

Currently, Priceless has just basic features in its online endeavour. Looking at the current market conditions, online grocery retail is bound to increase in coming future. Best part all this problem is that there are tools available to solve this issue. Several technology company like Oracle provide retail solution to handle these situations. All that ‘Priceless’ needs is to collaborate with a trusted consulting partner with a good track record, to help them implementing those solutions