Product Content for Omni-Channel Retail
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1 Product Content for Omni-Channel Retail Ram Rampalli Director, Product Management EMI
2 WHAT are we discussing today? Shopper s View Retailer s View Discussion 2
3 3 CONTENT FROM A SHOPPER S VIEW
4 THE CHANGING RETAIL LANDSCAPE A linear world with a focus on the GOODS that moved from Supplier Retailer Shopper Media Has transitioned into 4
5 A NETWORKED world that centers around the SHOPPER Logistics Systems & Application Providers Formal Content Providers Supplier Shopper Omni Channel Retailer Traditional Media Product Information Repositories Social Media 5
6 SHOPPER S EXPECTATIONS TODAY 71% of the Shoppers expect to view in-store inventory online 1 62% of customers are expecting traditional retailers to become omnichannel 1 Within the Food & Beverage category, Nutritional data, List of Ingredients, Allergy Information, Certifications (Organic, Vegan, Halal), Environmental Impact & Ethical Accreditation are some of the key attributes consumers are looking for 2 Grocery, Health & Beauty, Personal Care top 3 product categories scanned using mobile apps 3 Most retailers report 14 to 28 days for item setup 4 50% buy a product online and pick up their purchase in-store 1 Sources: 1. A study by Forrester for Accenture & Hybris (Jan 2014), 2: B2C Consumer Survey, GS1, 3: Beyond the Label: Providing Digital Information Consumers Can Trust, 4: Are you Ready? How to Create an Always-On, Always-Open Shopping Experience, Capgemini Consulting and GS1 6
7 CONTENT FROM A RETAILER S VIEW As we continue to create a seamless shopping experience across online, mobile and stores, we rely on accurate and consistent product information. - Jeremy King, SVP & CTO, Walmart GeC 7
8 CONTENT FROM A RETAILER S PERSPECTIVE We can look at Content from several different perspectives For the purpose of this discussion, we will focus on:! Shopper s Expectations Product Classification Product Catalogs 8
9 WALMART: WHO ARE WE? Global Market- Place Brick & Mortar Walmart Mobile Online We are the World s Largest OMNI-CHANNEL retailer Key Stats Include: 2.2 M Employees (2013) $476B Revenues (2014) Over 11K locations worldwide (July 2014) Our Brands Include Walmart Stores Sam s Club VUDU ASDA 9
10 THE BASIC PRODUCT CLASSIFICATION ISSUE What would you call this item? Athletic shoes, running shoes, tennis shoes, sneakers or? 10 PCA
11 WHY SHOULD WE CLASSIFY ITEMS CORRECT? FLEXIBLE & INTUITIVE MERCHANDIZING + IMPROVED SEARCH & DISCOVERY = A BETTER CONSUMER SHOPPING EXPERIENCE 11
12 WHAT IS CLASSIFICATION? Classification is the process of determining the product type of an item and thereby identifying the attributes/values associated with that type of product to facilitate merchandizing Taxonomy Database Product Types Attribute Values Product Type = Hammer Attribute GTIN = Classification Methodology 12
13 STRUCTURED COMMERCE CLASSIFICATION Walmart has partnered with GS1 US and other industry leaders to develop a prototype reference model called Structured Commerce Classification for submittal to GS1 to become a global standard The goal of the model is to reduce friction for item setup by way of a flexible & intuitive taxonomy for the classification of product types More information about SCC can be obtained from GS1 US The Key Elements of SCC PRODUCT TYPE ATTRIBUTES ATTRIBUTE VALUES 13
14 THE GOAL IS A CLASSIFICATION MODEL THAT Easily gets products on the right shelf(s) in the physical or digital worlds Allows developers to build algorithmic systems (ex: classification or search) on top of the standard Complements rather than replaces existing internal taxonomies 14
15 KEY ELEMENTS - PRODUCT TYPE The primary classification block PRODUCT TYPE Product Example: Shoe Describes what an item is and not where it should be displayed on a site or how/where it should be placed on the store Groups items based on form, function and key attributes No rigid hierarchy as with existing classification systems 15
16 KEY ELEMENTS - ATTRIBUTES ATTRIBUTES The key characteristics used to describe the product Attributes provide additional information to help consumers find relevant content Attribute Examples: Brand Style Gender Color Size 16
17 KEY ELEMENTS ATTRIBUTE VALUES ATTRIBUTE VALUES Attribute Value Examples: White Blue The permitted values that a specific attribute may have Defined only in limited cases where standards are needed Provides the flexibility required for seller customization 17
18 BENEFITS OF SCC Seller Efficiency one way of listing and sharing inventory Streamlines data handling and systems interoperability Increased product exposure 18
19 CLASSIFICATION METHODOLOGIES We can use a team of human classifiers to classify the items MANUAL CLASSIFICATION Accuracy Quality Pros Speed Cost Cons Rules Based or Machine Learning AUTOMATED CLASSIFICATION Speed Cost Pros Accuracy Quality Cons 19
20 AUTOMATED CLASSIFICATION SYSTEMS Given the VOLUME of PRODUCTS, we have implemented (and continue to improve) our next generation product classification system using advanced technology including Machine Learning and Natural Language Processing For this system to work successfully we need excellent product content Every attribute Complete and Correct No Ad-Hoc/Non Standard Abbreviations or Short-hands (BLK SHRT, MNT BLU, CVR CSE) Consistent Data 20
21 HOW CAN WE PROVIDE THE BEST SERVICE TO THE SHOPPER? GS1 SUPPLIERS + RETAILERS APP & SYSTEM PROVIDERS SCC THE NEXT GEN OMNI CHANNEL PRODUCT TAXONOMY SUPPLIERS PROVIDE THE BEST (COMPLETE AND ACCURATE) PRODUCT CONTENT IN A TIMELY MANNER RETAILERS USE THIS DATA AS THE FOUNDATION TO BUILD THE NEXT GENERATION PRODUCTS TO EXCEED THE SHOPPER S EXPECTATIONS 21
22 CONTENT FROM A RETAILER S PERSPECTIVE We can look at Content from several different perspectives For the purpose of this discussion, we will focus on:! Shopper s Expectations! Product Classification Product Catalogs 22
23 WHY DO WE NEED PRODUCT CATALOGS? In preparation for his son s graduation, Joe buys a product online. When it arrives he finds out that it does not actually has the features stated on the website. Joe is frustrated and decides never to buy from this retailer In an online marketplace, Anna finds two products that looks similar but different prices. When she clicks the item pages there is not information for her to figure out why one is priced different from the other. Anna abandons this marketplace and moves on to do her shopping elsewhere. Tom checks out a product online and takes a printout of the product details to a physical store nearby. The store associates are unable to recognize the product. Tom is frustrated and goes to a competitor. 23
24 WHY DO WE NEED PRODUCT CATALOGS (CONTD.)?! Customers are looking for (and they deserve) the most up-to-date, accurate and complete product details! Complete, Consistent, Accurate Product Details forms the foundation for a seamless omni-channel experience! Selection, Pricing & Experience are the three key factors that power product sales 24
25 WHAT IS CONTENT? Definition of Content varies by Category Evolves over Time SUPPLIERS - Images, Videos, Descriptions, Dimensions, Allergens, Nutrition Facts, Compliance/Legal, Certifications, Recipes, Fabric Content, Care Instructions, Manuals, Guides, Awards, Official Endorsements. Merchant Portal Product Setup SHOPPERS Ratings, Reviews, Photos, Videos EXPERTS Blogs, Recipes Endorsements, Articles Portal Pages Actionable Analytics & Scorecards INDEPENDENT CONTENT PROVIDERS - Professional product content including images, videos, rating, reviews coming in from content service providers and catalog vendors Shopping Experience 25
26 WHERE DO WE GET PRODUCT CONTENT FROM? Core Non Core Consumer Electronics, Books, Music, Video Games, Auto Parts WMT Content Creation Services 3 rd Party Content Quality + Analytics CATALOG 1WorldSync WMT Spec GS1/GDSN DPs Content Service Providers Supplier 26
27 HOW CAN WE PROVIDE THE BEST SERVICE TO THE SHOPPER? GS1 SUPPLIERS + RETAILERS APP & SYSTEM PROVIDERS BUILD A STRONG FOUNDATION FOR CONTENT FLOW SUPPLIERS PROVIDE THE BEST (COMPLETE AND ACCURATE) PRODUCT CONTENT IN A TIMELY MANNER RETAILERS USE THIS DATA AS THE FOUNDATION TO BUILD THE NEXT GENERATION PRODUCTS TO EXCEED THE SHOPPER S EXPECTATIONS 27
28 QUESTIONS? Ram (Narasimhan) Rampalli Director, Product (W), (M) LinkedIn: 28
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