Tony D'Onofrio
Retail
Every year, the National Retail Federation (NRF) trade event in New York seems to get bigger and more global. 2014 did not disappoint with over 30,000 retail professionals listening to 300+ industry experts and visiting a record 200,000 square feet of exhibit space showcasing the latest technologies. Brazil had once again the largest contingent of attendees outside the United States.
NRF is a great stage on which to reflect the " Big Ideas " that are reshaping retail. The top 10 from NRF 2014 include:
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Product or service differentiation has always been a strategy adopted by the retail industry towards finding that winning formula for 
growth. Differentiation can take many forms and include price, product quality, store decor, targeted consumer audience, and the business model itself. Two recent examples of successful retail differentiation:
Zara and Fast Fashion
Forbes Magazine recently recapped the successful Zara business model. A team of designers and product managers in Spain oversee design, sourcing and production of specific apparel categories. These individuals monitor closely the sales process of each apparel collection -- from the time the merchandise reaches the stores to the real time customer response.
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-- How Piggly Wiggly Built Today's Self-Checkout Legacy --
"An invention acts rather like a trigger, because, once it's there, it changes the way things are, and that change stimulates the 
production of another invention, which in turn causes change, and so on. Why those inventions happened between 6,000 years ago and now, where they happened, and when they happened , is a fascinating blend of accident, genius, craftsmanship, geography, religion, money, ambition..." (1) -- James Burke
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Fortune magazine recently published the 100 fastest growing companies. (1) Analyzing this year's list:
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"James Nesmeth...was an average golfer consistently shooting in the mid-90's, until he developed a unique way of improving his golf 
game. It came while he spent seven years in North Vietnam as a prisoner of war. During those tortuous seven years, Nesmeth lived in a solitary confinement....To keep from losing all hope, he realized that he needed to do something to occupy his mind. So every day he played 18 holes of golf in his mind. He imagined everything in vivid detail...the country club...the smell of the fresh cut grass...the grip of the clubs...practice his swing many times until he perfected it....Upon returning to the actual golf course, he found that he had shaved 20 strokes off his game! By visualizing a perfect game every day for seven years he literally brought his score down to a 74." (1)
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Around the world RFID continues to be piloted in hundreds of retailers. By far the vast majority of the activity is centered in the specialty
soft lines verticals. A handful of major retailers primarily in Europe and North America are post the pilot phase and in full deployment. Retail RFID industry adoption had multiple starts and it is finally coalescing around item level visibility as the foundation to transformational onmichannel retailing. For all the activities and discussions, much more needs to be done to speed up the adoption of this high potential retail technology.
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This week a video from the IHL Group and a couple of IT posts sparked some thoughts on the evolution of retail as it is accelerating on a
technology shoestring budget.
According to the latest 2013 "State of the CIO" survey from CIO Magazine, the average IT budget as a percentage of revenue is 5.2%, and it was up from 4.7% the previous year. Contrast this to the retail industry where according to Jerry Sheldon from the IHL group, the average IT spend as a percentage of total sales ranged from 1.1% to 1.2%.
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The latest BrandZ Top 100 Most Valuable Global Brands survey has insightful data for both technology companies and the retail 
industry.
For the retail industry, the brand value data projects continued economic recovery especially in the United States and in luxury brands.
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New technologies such as RFID, NFC, augmented reality and gamefied retail apps will directly interact with consumers based on predictive
behaviors identified by "Big Data". - Tony D'Onofrio
This month RIS News published a great post on 12 key takeaways from a recent Onmichannel Merchandising Symposium.
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"Retail IT is being transformed. CIOs are shifting from proprietary systems to package solutions and from an emphasis on cost 
reduction to a solid bump in IT capital spending. A strong customer focus means CIOs are fixing their attention on channel integration and analytics that will help them spot and anticipate shopper preferences more quickly." (5) - NRF Stores Magazine, April 2013
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It is a Small World
“Even monkeys can fall from their trees.” – Japanese Proverb
Continuing our global learning journey, our next stop is Tokyo Japan. Founded, in 1603, this city was once a small fishing village called Edo. In 1890, it became Tokyo which means Eastern Capital in English.
In Tokyo, you will find the world’s busiest intersection, the Shibuya crossing where 2,500 people cross the intersection, every time the lights turn green. This city also holds the record for the most Michelin starred restaurants at 212 places to enjoy amazing food.
Tokyo is the most populous city in the world with 37 million people. Uniqueness is everywhere, even in vending machines, where you can buy hot meals, fresh produce, and even umbrellas. There is one vending machine in the city for every two people.
Have lost count on the many times I visited Tokyo to experience their modern retail industry. This picture is from the New Otani Hotel gardens, a favorite during multiple visits.
As the Japanese proverb that opened this summary reminds us, no matter how accomplished we become, you can always make a mistake. Overconfidence can lead to missteps. Life is one sweet ride and Japan provides many reminders on how to enjoy it.
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Brilliant Research
Deloitte Global Retail Outlook 2024
After a prolonged period of suppressed consumer spending, macroeconomic and geopolitical uncertainty, and rapid changes in consumer behavior (among other things), the global retail industry stands at a crossroads; forced to make decisions about long term investments in new technology and business models while at the same time managing the rising cost of doing business and a decline in the spending power of consumers. - From Deloitte Insights Read more
Smart Infographic
The World's Top Flight Routes by Revenue
In 2024, a record 4.7 billion people are projected to travel by air—200 million more than in 2019. While revenues surged to an estimated $896 billion globally last year, airlines face extremely slim margins. On average, they made just $5.44 in net profit per passenger in 2023. Today, the industry faces pressures from high interest rates, supply chain woes, and steep infrastructure costs. - From Visual Capitalist
Insightful Videos
The World Ahead 2024: five stories to watch out for
From the biggest election year in history, to how to control AI and even taxis that fly, The Economist offers its annual look at the world ahead. Read more
