IDC: Top 10 predictions for 2014
Framingham, Mass. — Expect renewed investment in the transformative capabilities of PLM and sourcing, marketing and advertising, and big data and analytics according to IDC Retail Insights, which on Tuesday released its Top 10 Predictions for 2014.
Here are the IT consulting company’s top 10 predictions for 2014:
1. In 2014, fast-followers will chase the 50 global retailers already transforming store, mobile, and e-commerce channels, supply chains, merchandising, and marketing for the omni-channel customer experience
2. Business transformation will drive enterprise resource planning, core merchandising, and planning investment to a 9% compound annual growth rate through 2015.
3. By 2016, leading retailers will improve same-shopper sales with immersive commerce driving additional revenue growth of 1.5% and margin growth of an additional 3%.
4. By 2017, marketing and advertising technology investment will increase by 50%.
5. Retailers will narrow and enable big data and analytics projects in 2014 as 20%-30% of projects fell short in 2013.
6. Emerging consumer privacy concerns will force 50% of early adopters to revisit hyper-personalized promotions by 2015
7. E-commerce and store platform replacements that enable mobile, integrated and interactive experiences will support a 10% compound annual growth rate in commerce investment through 2017.
8. As product assortment refresh cycles quicken, 25% of mid-sized retailers will initiate new PLM or sourcing projects in 2014.
9. Retailers will double the rate of industry supply chain investments in 2014, as compared to 2013.
10. By 2016, 50% of national retailers, will invest in distributed order management, enterprise inventory visibility, and workforce management to enable same day fulfillment.
“In the next three years, retail will reinvent itself as omni-channel leaders reach for customer relationship, relevancy, and reciprocity. A new replacement cycle of enterprise, planning, and commerce systems will anchor complex company-wide business transformation for immersive experience and commerce. Quick-to-market leaders will improve same-shopper sales–fast becoming the most significant leading indicator of future performance," said Robert Parker, IDC Retail, energy and manufacturing VP and general manager. We expect renewed investment in the narrower but transformative capabilities of PLM and sourcing, marketing and advertising, and big data and analytics."
In 2014 grocery retailers will focus on food waste reduction by utilizing the new introduced GS1 DataBar standard. The large amount of food waste is a lose-lose situation for the environment, the struggling families in today’s tough economy and for the food retailers. We should address the food waste problem in every link in our food supply chain. For example, the excess inventory of perishable food items close to their expiration on supermarket shelves causes waste. The consumer “Last In First Out” shopping behavior might be one of the weakest links of the fresh food supply chain. Why not encourage efficient consumer shopping behavior by offering him automatic and dynamic purchasing incentives for perishables approaching their expiration dates before they end up in a landfill? The new emerging GS1 DataBar standard enables automatic applications that offer dynamic incentives for perishables approaching their expiration dates. The “End Grocery Waste” application, which is based on GS1 DataBar standard, encourages efficient consumer shopping behavior that maximizes grocery retailer revenue and makes fresh food affordable for all families while effectively reducing the global carbon footprint. You can look this application up at EndGroceryWaste.com Rod, Chicago, IL
CVS Caremark, Cardinal Health in generic drug joint venture
Woonsocket, R.I. — CVS Caremark and Cardinal Health have entered into an agreement to form the largest generic sourcing entity in the United States.
Both companies are contributing their sourcing and supply chain expertise to this 50/50 joint venture and are committing to source generic drugs through it. The companies separately announced a three-year extension through June 2019 of Cardinal Health’s existing pharmaceutical distribution agreements with CVS Caremark.
"Cardinal Health has been an outstanding strategic partner over many years, and we are excited to form this new venture with them," stated Larry Merlo, president and CEO of CVS Caremark. "This partnership will enable us to maintain our leadership role in navigating the dynamic U.S. generics market. With its combined volume and capabilities, the joint venture will develop innovative purchasing strategies with generic manufacturers and enhance supply chain efficiencies."
The U.S.-based joint venture, which is subject to customary closing conditions, is expected to be operational as soon as July 1, 2014, and will have an initial term of 10 years. Under the arrangement, the joint venture will source and negotiate generic supply contracts for both Cardinal Health and CVS Caremark. In order to reflect an equitable 50/50 joint venture, the agreement includes a quarterly payment of $25 million over the life of the agreement from Cardinal Health to CVS Caremark, the companies stated. The payments have an estimated after-tax present value of $435 million.
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The Wet Seal launches branded TV series on YouTube
Foothill Ranch, Calif. — The Wet Seal announced a partnership with AwesomenessTV on reality series, "The Intern." AwesomenessTV, one of the most subscribed to video destinations for teens on YouTube, debuted the series on Nov. 25 and will air four weekly installments throughout the month of December.
The Intern, a series created exclusively for Wet Seal, has the brand’s corporate headquarters as its backdrop; and episodes follow the experience of two interns during their time with the company. The series begins with the interview selection process, and each installment thereafter features challenges for the interns, who aspire to a future in fashion.
“In partnership with AwesomenessTV, we’re thrilled to introduce teens to ‘The Intern,’ and entertain viewers by giving them a behind-the-scenes look into the Wet Seal brand,” said John Goodman, CEO of The Wet Seal. “We’re sharing the passion it takes to deliver fashion to our customers, and our interns will experience various areas of that process.”
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