1. >>APMG 8119: DIGITAL ENTERPRISE REPORT PREPARED FOR: (Mariia, Dipthi, Alexey & Shri) POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE 2015

2. >>APMG 8119: DIGITAL ENTERPRISE Heading Here Indent once for subheading Indent twice for body text Body text continues Outdent back to subheading Indent to continue body text Defining an Interactive Space

3. >>APMG 8119: DIGITAL ENTERPRISE CONTENT Return of the milk man - Global Trends in Retail Market Space New Zealand’s Retail market spaceInside CountdownConclusion & Innovation

4. >>APMG 8119: DIGITAL ENTERPRISE Global Trends in Retail Market Space  Online is much less profitable than in-store retailing  Even in developed e-commerce markets, online grocery is a very small contributor to total grocery sales  UK leads in online grocery shopping yet internet sales is just 6% of the grocery spending in 2014.  Yet in value terms 6% of UK grocery sector is equivalent to $13.9 billion  Figure is <3% in other major markets such as US, France & Germany  YOY growth in established Internet grocery markets (UK & France) averages 31%,  In emerging markets China and the US, it averages a huge 97%. IBIS World quantifies it is an $11 billion industry in US.

5. >>APMG 8119: DIGITAL ENTERPRISE Global Trends in Retail Market Space

6. >>APMG 8119: DIGITAL ENTERPRISE Society Technology Space Place Real Virtual 2 Way 1 way According to Castells, 2000  This change is brought about by us & that’s how Online retail is slowly but steadily flourishing

7. >>APMG 8119: DIGITAL ENTERPRISE Global Trends– Survey by Nielsen 2015.

8. >>APMG 8119: DIGITAL ENTERPRISE Global Trends – Survey by Nielsen 2015.

9. >>APMG 8119: DIGITAL ENTERPRISE Opportunities created by E-market place:

10. >>APMG 8119: DIGITAL ENTERPRISE  As highlighted by Rayport & Sviokla,1994 place is being replace by space online food retail too is feeling the change.  Actual super market is replace by virtual one  Information & pictures about the product is replacing the product itself  Smart phones and laptops replace the counters  Already developed markets are adapting to the changechange Retail Market Space

11. >>APMG 8119: DIGITAL ENTERPRISE New Zealand Retail Market Space – BNZ Market Review

12. >>APMG 8119: DIGITAL ENTERPRISE  Offering online shopping for 2 decades, an average spend of $206 per shop, brings in >$4 million a week.  Countdown, Tony Petrie, says by mid-2016 online grocery shopping will have grown to be the equivalent of 5 supermarkets if forecasts are achieved.  Click and collect, which costs $5 more for a customer, is growing at 15 % a year. Receives 20,000 online orders from 80,000 customers weekly. Against a foot count of 2.7 million.  It has self service kiosk at all its outlets.  The plan, according to Petrie, is for Countdown to partner with other businesses like clothing retailer EziBuy to create what amounts to an online shopping mall.  Countdown has launched its IPhone and Android Apps. Countdown’s app has been selected as the top disruptive service for IPhone.  Its FB page has >255k followers with “call to action button” of Start Shopping!

13. >>APMG 8119: DIGITAL ENTERPRISE Countdown virtual super market at bus stops Auckland, Wellington & Christchurch

14. >>APMG 8119: DIGITAL ENTERPRISE ENABLERS

15. >>APMG 8119: DIGITAL ENTERPRISE BARRIERS

16. >>APMG 8119: DIGITAL ENTERPRISE Interactive Home Shopping  As highlighted by Alba et al, countdown gained advantage in IHS by: Distribution efficiency - Countdown can deliver to 99% of the population Assortment of complementary merchandise - With its presence in the digital space Countdown can further improve on its assortment Collection & utilization of customer information -  Facebook  One card  Countdown App  Countdown website Presentation of information through electronic format  Over and above its normal electronic medium it has also stepped into the virtual supermarket world Unique Merchandise – Using digital space countdown can promote huge number of merchandise.

17. >>APMG 8119: DIGITAL ENTERPRISE CONCLUSION & INNOVATIONS The key to success in retail is to combine both online and offline shops and keep innovating. Automated Re-ordering Customized Retailing

18. >>APMG 8119: DIGITAL ENTERPRISE CONCLUSION & INNOVATIONS Multi-sensory bus stop advertising McCain Foods Using GPS Nestle

19. >>APMG 8119: DIGITAL ENTERPRISE CONCLUSION & INNOVATIONS Smartphone App Blippar Holographic Packaging

20. >>APMG 8119: DIGITAL ENTERPRISE Booz Allen&Hamilton Inc. (2001). The e-Marketplace revolution: creating and capturing the value in B2B e-commerce. Retrieved from http://www.boozallen.com/media/file/e-marketplace_revolution.pdf http://www.boozallen.com/media/file/e-marketplace_revolution.pdf Countdown. (n.d.). Retrieved from www.countdown.co.nzwww.countdown.co.nz InsideRetail (2015). Online continues growth. Retrieved from https://insideretail.co.nz/2015/02/26/2914/ https://insideretail.co.nz/2015/02/26/2914/ Lawrence, A. (2013, March 19). Ten innovative ideas from the around the world. Retrieved from https://www.igd.com/Research/Retail/Innovation-digital/17557/Ten- innovative-ideas-from-the-around-the-world1/ Nielsen (2015, April 29). More than half a global consumers are willing to buy groceries online. Retrieved from http://www.nielsen.com/us/en/press-room/2015/more-than- half-of-global-consumers-are-willing-to-buy-groceries-online.html Stock, R. (2015, July 20). Click and collect flourishes at Countdown. Retrieved from https://insideretail.co.nz/2015/07/20/countdowns-online-and-click-and-collect- services/ REFERENCE LIST

21. >>APMG 8119: DIGITAL ENTERPRISE REFERENCE LIST Tesco PLC. (2012). UK’s first interactive virtual grocery store. [Video]. Retrieved from https://www.youtube.com/watch?v=7JItU05mjCk https://www.youtube.com/watch?v=7JItU05mjCk Weinswig, D. (2015, May 20). Global grocery retailing. New York: The Fung Group. Retrieved from http://www.deborahweinswig.com/wp- content/uploads/2015/05/FBIC-Featured-Report-on-Global-Grocery-Retailng- May-20.pdfhttp://www.deborahweinswig.com/wp-

22. >>APMG 8119: DIGITAL ENTERPRISE Thank You