The Disrupted World of Multichannel Retail Maria Rua Aguete 19 June 2019 Maria Aguete
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The Disrupted World of Multichannel Retail Maria Rua Aguete 19 June 2019 maria_aguete #MCMS2019 Confidential. © 2019 IHS MarkitTM. All Rights Reserved. About us: Information, insight, and analytics across critical technology markets IHS Markit analysts are among the most respected, experienced, influential, and quoted in the business Automotive Displays Enterprise & IT Electronics • Electronic systems & semiconductors • Display manufacturing • Data center & cloud • Cost management & supply chain • Enterprise networks & communication • Connected car • Display materials & components • Enterprise IT security • Large displays • M2M, IoT & connectivity • Small & medium displays • Touch & interface Healthcare Manufacturing Media & Advertising Mobile & Telecom Technology Technology • Medical devices & equipment • Capital equipment & machinery • Advertising • Operators & services • Healthcare IT • Electric motor systems • TV media & content • Mobile innovation • Discrete & process automation • Video • Mobile networks • Digital media • Voice & data networks • Games • Service provider Broadband & video • Cinema • Managed services Mobile, Consumer Power & Energy Security Technology Semiconductors & Connected Devices Technology • Mobile devices • Smart grid & energy storage • Access control & fire • Semiconductor market • Consumer electronics • Power supplies & wireless charging • Video surveillance • Semiconductor components • Lighting • Solar • Cybersecurity & digital ID • Semiconductor manufacturing • Digital signage • Critical communications • MEMS & sensors • Smart home & appliances • Memory & storage Confidential. © 2019 IHS MarkitTM. All Rights Reserved. 1. State of the video market: The World has changed! Confidential. © 2019 IHS MarkitTM. All Rights Reserved. The world has already changed – Online video accounts for a 1/3 of global video subscriptions. GlobalGlobal: Pay PayTV and TV Online and online video subscriptions video subscriptions, 2018 2017 160 140 120 100 80 139 60 109 40 74 68 56 20 44 40 23 0 Netflix China Tencent Baidu Comcast Amazon AT&T China Unicom Youku Tudou Liberty Global Hulu Telecom Video Source: IHS Markit OTT video IPTV Cable Satellite Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Pay TV remains dominant in terms of revenues Global operator revenues 2018 USD m Global: Pay TV and online video subscriptions, 2017 50.000 45.000 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 AT&T Comcast Charter Dish Netflix Liberty Global Verizon FiOS Cox America Movil Cablevision TV Source: IHS Markit OTT video Cable IPTV Satellite Confidential. © 2019 IHS MarkitTM. All Rights Reserved. 2. State of the retail industry: The World has changed! Confidential. © 2019 IHS MarkitTM. All Rights Reserved. 7 How can retailers benefit from the new technologies and adapt to the chaging shopping behaviour? A. Everything is connected B. 5G implications C. Disruption from platform companies: Amazon, Alibaba, Google D.The role of Voice Assistants Confidential. © 2019 IHS MarkitTM. All Rights Reserved. A. Everything is connected Confidential. © 2018 IHS MarkitTM. All Rights Reserved. Growth in connected devices coming from the living room Connected devices installed by type by country (m) 300 250 200 150 100 50 0 2017 2018 2022 2017 2018 2022 2017 2018 2022 2017 2018 2022 2017 2018 2022 2017 2018 2022 Sweden UK Poland France Germany Spain PCs Smart TVs Pay TV STBs DMAs BD players Game Consoles Tablets Smartphones Source: IHS Markit Confidential. © 2019 IHS MarkitTM. All Rights Reserved. 9 Living room devices are driving growth in connected devices in the UK Confidential. © 2018 IHS MarkitTM. All Rights Reserved. Home as a computer. The role of telcos Global Pay TV and Online deo subscriptions 2018 Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Confidential. © 2019 IHS MarkitTM. All Rights Reserved. AI/ Machine Learnig/ Big Data New Advertising models Source: DIVE TV Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Private and confidential @ Dive 2019 New contextual ad and video commerce revenue stream Source: DIVE TV Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Private and confidential @ Dive 2019 Europe: Overall fixed broadband coverage 2018 Confidential. © 2018 IHS MarkitTM. All Rights Reserved. B. 5G is here: What does it mean for consumers and operators? Confidential. © 2018 IHS MarkitTM. All Rights Reserved. Consumers spend more time on their mobile devices: The demand for immediate content is greater than ever and 5G will facilitate capacity © 2019 IHS Markit. All Rights Reserved. But which content? Operators used video as the key content to drive data demand in the 4G era Available mobile operator content and services by category games Video music Apps/Other Cloud Commerce & Payments Games Health Music News, Magazines & Books Payments & Commerce Source: IHS Markit Productivity Security Social Video © 2018 IHS Markit Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Future mobile video drivers: 5G will be driven in part by consumer video and media Service provider 5G upgrade drivers : Uses cases (2018) Extreme/ enhanced mobile broadband Real-time gaming HD and UHD video Massive IoT Tactile low latency touch and steer Fixed Wireless Access AR or VR Autonomous driving Factory Automation Disaster alerts Medical emergency situations 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: IHS Markit © 2018 IHS Markit © 2019 IHS Markit. All Rights Reserved. Global 5G subscriptions forecast: almost 3bn by 2025 5G regional subs 3.000 2.500 2.000 1.500 Millionsof 5G subs 1.000 500 - 2019 2020 2021 2022 2023 2024 2025 Source: IHS Markit 2019 Confidential. © 2019 IHS MarkitTM. All Rights Reserved. 20 More 5G smartphones are coming to market globally Global Smartphone Demand Forecast by Standard 100% 90% Samsung Samsung Huawei 80% Galaxy Fold Galaxy S10 5G Mate X Q2’19 Q2’19 Q3’19 70% 60% 50% 40% 30% LG ZTE Xiaomi V50 ThinQ Axon 10 Pro Mi Mix 3 5G 20% Q2’19 Q2’19 Q2’19 10% 0% 2018 2019 2020 2021 2022 2.5G 3G 4G 5G Oppo Motorola 5G Prototype Moto Z3 5G MOD TBD Q2’19 Confidential. © 2018 IHS MarkitTM. All Rights Reserved. 21 C. Disruption from platform companies: Amazon, Alibaba, Google Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Platform companies have asymmetrical business models: Alibaba Alphabet Amazon Apple Baidu Facebook Tencent Communications & Retail Advertising Retail Devices Advertising Advertising Content 1999 1998 1994 1976 2000 2004 1998 Ads AI Cloud Commerce & Pay Communications Content Devices/OS Health Home Location & Transport VR & AR Confidential. © 2019 IHS MarkitTM. All Rights Reserved. Their strategy is to offer content, apps and services across a broad range of consumer sectors to reach, engage and monetise their users Global: Platform reach (active customers / devices) in 2018 Platform reach (bn) 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Google - active Android devices Facebook - MAUs Apple - active devices WeChat (Tencent) - MAUs Baidu - search users Alibaba - active buyers Amazon - active shoppers Twitter - MAUs Snapchat - MAUs Line - MAUs Kakao - MAUs Global Pay TV © 2019 IHS Markit. All Rights Reserved. 24 Alibaba Alphabet Amazon Apple Baidu Facebook Tencent Communications & Retail Advertising Retail Devices Advertising Advertising Content 1999 1998 1994 1976 2000 2004 1998 Ads Various Various Amazon ads App store search ads Baidu ads Facebook ads Tencent social ads Dingdang, AI Lab, AI / Digital Assistant Fashion AI Google Assistant Alexa Siri Raven H Messenger bots YouTu Lab Cloud Alibaba Cloud Drive, Photos Amazon Drive iCloud Baidu Cloud Workplace Tencent Cloud WeChat Pay, Tenpay, Commerce & Payment Tmall, Taobao, Alipay Android Pay Amazon.com Apple Pay, Apple Card Baidu Wallet Various QQ Wallet Communications Ding Talk, Wangwang Hangouts, Allo, Duo Alexa messaging iMessage, FaceTime Baidu Hi WhatsApp, Messenger WeChat, QQ, Momo Tencent Video, Sports, YouTube, Play, Play iTunes, App Store, TV, Facebook Live, Instagram, Prime Video, Twitch, Games, Pictures, QQ Content Youku Tudou, Xiami Games, Play Music, Music, iBooks, News+, iQiyi, PPStream Video, Gameroom, App Music, Penguin e-Sports, Channels Centre, Watch Books, Movies & TV Arcade, TV+ Now Live, Interest Tribe Pixel, Nexus, Chrome, iPhone, iPad, Mac, TV, Tencent OTT set-top Devices/ Software Yun OS Fire TV, Kindle, Echo Raven H, Duer OS Oculus Android Watch, Beats, iOS box Health Ali Health Google Fit - Apple Health - Various initiatives WeDoctor Home TmallGenieX1 Google Home Echo, Ring HomeKit, HomePod Raven H - - Location & Transport Various Maps, Waze, Waymo - Maps, CarPlay Baidu Maps Check-In Tencent Maps, iSpace AR in commerce, VR & AR DayDream, ARCore Amazon AR View ARKit DuSee Oculus, 360 Video QAR games Confidential. © 2019 IHS MarkitTM. All Rights Reserved. D. Is Voice Ordering the next ” Shopping” Trend ? Confidential. © 2018 IHS MarkitTM. All Rights Reserved. After the service driven boom of 2017 Baidu Raven Kakao AI speaker Line Wave Line Clova Tencent Tencent 2018 was all about new form factors DingDang Smartspeaker Bixby for Galaxy Samsung Bixby for existing assistants watch Telefonica Aura Galaxy Hub Orange Djingo Movistar Home Deutsche Telecom Cortana integration with Tinka Microsoft web services Cortana for Cortana for Xbox Cortana in car Amazon Echo Alexa expanded form Microsoft Cortana Cortana Harmon Kardon Alexa for Kind Fire factors (i.e. Microwave Invoke Smart speaker for windows 10 and clock) Google Assistant for Amazon Echo Alexa for Windows Baidu DuerOS Pixel show & Plus 10 PC Alexa hosting