The Issues Foot traffic: Worldwide smartphone sales -3.6% YoY in - PowerPoint PPT Presentation

The Issues • Foot traffic: • Worldwide smartphone sales -3.6% YoY in U.S. (Sept.) is expected to grow 11.5% CAGR from • U.S. Q2 e-commerce sales: 2014 – 2018 +15.7% YoY (June, estimates) • M-commerce exploding: one-third of Holiday 2013 on • Thinking about Holiday mobile, up from 20% in 2014, just remember Holiday 2012; but social commerce traffic in 2013 was -14.6% did NOT as it was flat in YoY 2013 at 2%

Physical Store Traffic is Falling Sales Traffic Trans. Conv. %Return ATV SPS (%@points) (%@points) )2.4% )3.6% )3.6% 0.4% )1.1% 1.4% 1.5% September )4.0% )7.9% )5.9% 0.4% )1.0% 2.0% 4.2% August )4.5% )7.8% )9.5% )0.05% )1.1% 6.7% 3.5% July )5.8% )10.8% )12.0% )0.1% )0.8% 7.6% 5.5% June )5.7% )8.0% )11.6% )0.2% )0.6% 7.1% 2.6% May @

! Conquering the Omni-channel Arena • Retailers want a "single customer interaction platform" but have almost no idea how to get there • Creating a single brand identity across channels is the most important goals for retailers • Retailers should designate a single owner of the customer experience journey

The Future of Retail • Digital information is influencing more than 50% of our purchases • Retailers can create value by integrating retail channels with social media, online, and mobile channels • Omni-channel shoppers spend 50% more than single channel shoppers

Big Trends Changing Retail Marketing Today • Human connections are the only real metric for building institutional trust • Better storytelling is the secret weapon for when products are easily replicated • The best value from digital tactics comes by educating instead of trying to have a "dialogue"

The Future of Retail Marketing • 77% of consumers prefer email for permission-based promotional messaging • 39% of retailers used in-store signage to convert customers to digital • 44% of retailers do email acquisition at point-of-purchase

Recasting the Retail Store in Today's Omni-channel World • The majority of consumer shopping time is still spent in store at 61% per AT Kearney • Consumers spend more money when shopping in brick-and-mortar stores • There are multiple ways to research, verify, and purchase products

What is Cyber Crime? • Crime committed using a computer and the internet to steal a person’s identity or illegal imports or malicious programs • Cybercrime is nothing but where the computer used as an object or subject of crime

Types of Cyber Crime Types of Cyber attacks, by percentage (source- FBI) • Financial fraud: 11% • Sabotage of data/networks: 17% • Theft of proprietary information: 20% • System penetration from the outside: 25% • Denial of service: 27% • Unauthorized access by insiders: 71% • Employee abuse of internet privileges: 79% • Viruses: 85%

Cyber Security • Cyber security will defend us from critical attacks • It helps us to browse the safe website • Internet security process all the incoming and outgoing data on our computer

How Do Retailers Compete US!Customer!Sa-sfac-on!Index!2013 # FY!13!(ended!January!2014)!EBIT!Margins # # # 12.0%# COMPANY! SCORE! Amazon# 88# 10.0%# Nordstrom# 83# 8.0%# Kohl’s# 81# 6.0%# Dollar#Central# 80# JC#Penney# 79# 4.0%# Target# 77# 2.0%# Macy’s# 76# 0.0%# Walmart# 71# Amazon# Kohl's# Macy's# Walmart# FY14#P/E# 122.0X# 13.6X# 13.0X# 15.2X# FY15#P/E# 67.3X# 12.3X# 11.3X# 14.3X# Source:(SPCapitalIQ( 12#

Industry P/Es Average!P/E! Median!P/E! Current!Fiscal! Current!Fiscal! Average!P/E! Median!P/E! Year! Year! Next!Fiscal!Year! Next!Fiscal!Year! Apparel,!Accessories!and! 29.0! 18.5! 23.8! 16.2! Footwear!Brands! Convenience,!Discount,! 20.1! 18.5! 17.5! 15.9! Drug!Stores! EWCommerce! 48.6! 39.6! 33.0! 30.7! Major!Dept!Store! 18.6! 13.6! 14.1! 12.3! RetailWApparel/Shoe! 24.5! 19.4! 18.1! 16.6! 13#

Q & A