10 th February, 2016 Retail in the era of the connected customer Retail Leadership Summit 2016 Principal, A.T. Kearney Subhendu Roy

2 A.T. Kearney | RAI True or False … India’s GDP > US India’s per capita income > US Number of internet users in India > US  India’s population > US 

3 A.T. Kearney | RAI Indian customers have entered an era of unprecedented technology pervasiveness 400 million internet users Increasing Internet Penetration 160 million online customers by 2017 Increasing Smartphone Usage Increasing Social Media Presence 132 million on Facebook in million subscribers on WhatsApp in million smartphone users by FY17 50% of Google searches on mobile today

4 A.T. Kearney | RAI Connected customers = connect to the internet at least once a week Interpersonal Connection Self-expression Exploration Convenience

5 A.T. Kearney | RAI Our study shows … … there are 7 steps to win in connected retail

6 A.T. Kearney | RAI Step 1: Consistent communication Source: A.T. Kearney 1 Communicate consistently across all channels Inform Browse Buy Fulfill Service >70% of customers expect complete alignment in pricing across all channels

7 A.T. Kearney | RAI Step 2: Personalized marketing campaigns Source: A.T. Kearney Inform Browse Buy Fulfill Service Average increase of 20% in sales when using personalized marketing campaigns 2 Design personalized & interactive marketing campaigns

8 A.T. Kearney | RAI Step 3: Customize assortment and promotions Source: A.T. Kearney Inform Browse Buy Fulfill Service 100% of retailers agree … but how many of us really leverage data ? 3 Customize assortment and promotions based on customer needs and shopping history

9 A.T. Kearney | RAI Step 4 & 5: Technology enabled buying experience Source: A.T. Kearney Inform Browse Buy Fulfill Service 93% of customers using digital wallet prefer to shop without carrying cash 4 Enhance customer shopping experience via technology 5 Deliver seamless shopping experience across channels 25% of customers who have never ‘bought’ online prefer online for ‘discovery’

10 A.T. Kearney | RAI Step 6 & 7: Partner across ecosystem and engage two-way with customers Source: A.T. Kearney Inform Browse Buy Fulfill Service 6 Expand ecosystem partnerships to interact with connected customers 7 Increase two-way engagement with customers through digital channels Global retailers have partnered with big data companies to get 15% increase in online sales Over 50% of online Indian customers expect two-way engagement with their retailers

11 A.T. Kearney | RAI Indian Retailers need … Big Data Analytics Organization Flexibility Agile Systems  

12 A.T. Kearney | RAI Americas Atlanta Calgary Chicago Dallas Detroit Houston Mexico City New York San Francisco São Paolo Toronto Washington, D.C. Asia Pacific Bangkok Beijing Hong Kong Jakarta Kuala Lumpur Melbourne Mumbai New Delhi Seoul Shanghai Singapore Sydney Tokyo Europe Amsterdam Berlin Brussels Bucharest Budapest Copenhagen Düsseldorf Frankfurt Helsinki Istanbul Kiev Lisbon Ljubljana London Madrid Milan Moscow Munich Oslo Paris Prague Rome Stockholm Stuttgart Vienna Warsaw Zurich Middle East and Africa Abu Dhabi Dubai Johannesburg Manama Riyadh A.T. Kearney is a global team of forward-thinking, collaborative partners that delivers immediate, meaningful results and long-term transformative advantage to clients. Since 1926, we have been trusted advisors on CEO-agenda issues to the world’s leading organizations across all major industries and sectors. A.T. Kearney’s offices are located in major business centers in 38 countries.