Tony D'Onofrio
Blog
In New York this past week, NRF 2015 set new records with 300 speakers and over 34,000 attendees from 85 countries. A much needed third day was added for visitors to tour the nearly 600 technology exhibitors. The retail show energy was high and time passed extremely quickly.
Following are the top three landmark topics from NRF 2015:
Retail ROI Super Saturday Delivers Pride to the Industry
For the first time, I had the pleasure of attending the Retail ROI (Retail Orphan Initiative) Super Saturday and the experience was both moving and insightful. One of the speakers was Katie Meyler, an "Ebola Fighter" featured in the Time Magazine Person of the Year" issue. She delivered a very powerful message on what it is like to step into "Hell on Earth"
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From Part 1, summarizing the initial five 2015 top 10 retail technology predictions: the internet of things in retail; omnichannel wave continues; inventory visibility & 
RFID; retail innovation deliver; and the mobile consumer journey.
Completing the top 10 list, following are the next five top 10 retail technology predictions for 2015.
The Rebirth of the Physical Store
In 2015, the role of the physical store will continue to evolve as a destination to experience the value of the brand. Much like a performance in a theater, the store itself will be a showcase for consumers to engage and understand the value of their purchase.
Technology will be a key driver of the continued store evolution. A recent study, pointed to the following four areas for transformation:
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2014 was another year of disruptive transitions for the global retail industry. Legacy brands in key western markets struggled to maintain their historical leadership.
New business models emerged including the biggest online retail IPO in history. Technology continues to be at the center of the ongoing retail transformation.
Following is Part I of the top 10 retail technology predictions for 2015. Part II will be posted at the same time next week.
The Internet of Things in Retail
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The greatest gifts in life are not material, do not need batteries, and are not the latest gadgets. The greatest gifts in life and this holiday season are family, lasting friendships, a passion filled career, cultural sensitivity, and endless curiosity.
Family
Italians stereotypically are considered passionate, having close-knit families, and loving food and wine. Guilty as charged.
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According to the latest Global Retail Theft Barometer 2013-2014, retailers lost $128.51 billion to retail theft. As indicated in the previously published video summary, the cost of retail crime to honest consumers averages $403 in USA, 184 Euros in Europe, 845 in Hong Kong Dollars in Asia Pacific, and $143 in Latin America.
The highest stolen categories included make-up products, fashion accessories, power tools, mobile accessories, wine and spirits. After multiple years of positive growth, can personally confirm that retailers are increasing the level of source tagging of high shrink consumer items. For apparel that source protection is extending to millions of dual technology EAS / RFID hard tags. One secure carrier for both shrink protection and inventory visibility. Welcome to the Internet of Things.
Top 10 Global Retail Shrink Takeaways - 2014 vs 2013 Infographic
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Several milestone events over the last thirty days have crystalized in my mind the three critical skills that will guarantee your future success.
Listen
Technology is leading to an explosion of ideas on which to build a solid business. Ninety percent of the world's data was generated in the last two years and this trend is accelerating. Every minute of the day, YouTube users upload 72 hours of new video, Facebook users share 2.5 million pieces of content, Twitter users Tweet 277,000 times, and email users send 204 million messages.
The information noise around us is endless and it will increase. Critical to progress is identifying the most important listening posts. In all careers, success starts and ends by closely listening to the customer.
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Is Technology Today's Answer?
A Lowe's video this week on their first deployment of a robot in a retail store to enhance customer service sparked this blog post. The 
narrator stated that shopping in a retail store has not changed in the past 100 years. On multiple levels he is correct.
Summarizing the fundamental changes to the retail industry in the last 100 years:
The invention of the supermarket which started the journey to retail sub-segmentation and self-service. The cash register which introduced data as an important element to measure the success of the business. Mass production and the computer which allowed manufacturers to drive production efficiencies, better information on what is selling, and lowered overall cost of goods. The bar code as the first item level visibility technology and the consequential explosion of retail chains in major industrialized countries. Globalization which proved that consumer markets do not have national boundaries.The Retail Paradox
The retail paradox is very simple.
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A World of Retail Opportunities Ahead
Attending the India Retail Forum (IRF) a few weeks ago, absorbing the vibrant energy of the attendees, and listening to the insightful 
presentations was a great reminder that these are exciting transformational times for the global retail industry. As summarized in the last post, driven by consumer technology, retail disruption will increase and will include a few surprises from emerging markets such as India.
The India Retail Opportunity
The retail sector in India has reached more than $500 billion in industry sales. Organized retail which today is at 8% penetration will grow at more than 20% during 2012-2020. The retail industry has contributed consistently 18%-20% to the country's GDP. Food and grocery is the largest category with the retail sector with 60% share, followed by apparel and telecom.
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Last week had a chance to speak to a large audience at the India Retail Forum in Mumbai. Chairing an industry panel discussion, my 
contributions included an opening presentation to a session titled "8th WONDER IN RETAIL - FUTURE PARADIGMS AND TECHNOLOGIES THAT HAVE THE POWER TO CARRY OUT DISRUPTIVE INNOVATIONS". Summarizing key insights from the opening presentation:
4th Megatrend Reshaping Global Retail
Post World War II, retail has been re-shaped by four megatrends. Technology has been the driver of retail power shifts through each of four megatrends. The fourth retail megatrend had its origins in 1992 when IBM released the first smartphone. It started transforming retail with Apple's smartphone around 2010.
Complementing smartphones are emerging deployments of smaller / smarter store sensors that will lead to customized, higher value, improved shopping experiences. All four megatrends have been about the availability of data and its effective utilization. The fourth megatrend places retail power in the hands of the consumer.
The Pace of Change is Accelerating
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A recent Forbes article highlighted the following key takeaways from Tesla's latest quarterly results which beat expectations:
Battery Breakthrough
Major improvements are expected in batteries, including a pure lithium anode that might triple battery capacity in the future. The new Gigafactory batteries will have 10%-15% better capacity due to improved chemistry. The new factory will also reduce costs by at least 30%, allowing Tesla to deliver the much less expensive $35,000 Model 3 by 2017. CEO Alan Musk expects that within the next 10 years electric cars will reach cost parity with combustion engines.
Car Production
Car production continues to increase and Tesla expects to deliver 35,000 cars during the current financial year. Tesla's goal is to reach a run rate of 100,000 cars per year by the end of 2015. Next spring, Tesla will release the Model X crossover SUV. Musk expects selling as many units of the new model as the current Model S. The CEO noted that they already had a lot of orders for the Model X, despite buyers having not seen the vehicle.
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Harvard Business Review
It is a Small World
"To succeed in life, you need three things: a wishbone, a backbone and a funnybone." – Reba McEntire
Continuing our global journey to learn something new, our next stop is the Trevi Fountain in Rome. The name "Trevi" comes from the Italian words tre, meaning "three", and vie, meaning "roads". The fountain is located where three roads meet.
A fountain has been located at the Trevi Fountain site for over 2,000 years. The current fountain was designed by Nicola Salvi and built between 1732 and 1762. It's the largest Baroque fountain in Rome.
The Trevi Fountain's water comes from the Acqua Virgo aqueduct, the only functioning aqueduct from ancient Rome. Local lore says that throwing a coin into the fountain will ensure you return to Rome. Other lore says that throwing two coins will lead to love, and throwing three coins will lead to marriage.
Wishes aside, since 2006, a Roman Catholic charity called Caritas has collected the roughly €3,000 a day thrown into the fountain and used it to provide food and social programs worldwide.
Life is one sweet ride. Time flies way too fast. Take a moment. Sit at your favorite place. Imagine the history before you. Live each moment as it was your last. One day, it will be.
Categories
Brilliant Research
Unlocking Shopper Reactions to Secured Products
60% of shoppers report seeing locked-up merchandise on a regular basis. More than a quarter of shoppers say a retailer loses their purchase when items are locked up. 62% of shoppers say they typically wait for assistance when they encounter locked up merchandise, and 9% say they order the item online from that same retailer. - From Numerator.com Read more
Smart Infographic
Retail Media: An Evolving Growth Opportunity that Won't Wait
Retail media is still surging. Ad spending with US retailers is growing 9X faster than traditional point-of-sale shopper marketing. - From Bain & Company
Insightful Videos
Why EV Leases Are So Cheap Right Now In The U.S. -CNBC
Automakers are offering steep discounts on electric vehicles, and especially on leases. In the first three months of 2024, less than a quarter of car buyers leased vehicles, but more than a third of EV buyers did. Read more
