The document discusses Swarovski's digital transformation strategy. It outlines why digital transformation is important given trends in the Middle Eastern market. It describes Swarovski's approach to transforming stores into more digital experiences. Finally, it explains how Swarovski will empower employees, engage customers, and transform products and operations to deliver personalized omnichannel experiences across websites, mobile, stores, and social media.

1. DIGITAL
ROADSHOW
SWAROVSKI

2. DIGITAL TRANSFORMATION
Market
Consumer
Chalhoub
Strategy
Swarovski
Strategy
Swarovski
Stores
Why?
What?
Who?
How?

3. DIGITAL TRANSFORMATION
Why?

4. DIGITAL IN THE GCC 2017
Total
Population
246
Million
Urbanization
68%
Internet
Penetration
147
Million
Penetration
78%
Active
Social users
93
Million
Penetration
38%
Mobile
Subscription
312
Million
Penetration
228%
Active Mobile
Social Users
83
Million
Penetration
34%
vs. World 41.4% vs. World 81.4%
YouTube
Watch Time
#
2
After US,
before Brazil

5. A NEW RETAIL REALITY
PurePlayOmni
LUXURY FASHION FAST FASHION

6. CUSTOMER BEHAVIOUR - MILLENNIUMS
Are people born between
1980 and 1999, today
they’re 19 to 38 years old
84% use their phone to
assistance & research
while shopping in a store
82% of Millennials prefer to
shop stores
Get influenced by friends and
70% by bloggers/ Youtubers
vs the “rich and famous”
Price is #1 concern for millennials
over quality, brand, store and
availability
Values experiences over stuff. Wants
memories to show on social. 82%
select a brand due to the buying
experience
Supports brand that care about
causes. 48% that actively support
social causes, 45% on environmental
stewardship

7. CUSTOMER BEHAVIOUR TRENDS
75%
of ME consumers
believe their
interactions with
brands on social
media results in them
purchasing.
85%
of Middle East
customers would
rather pay COD, while
15% opt in to use
credit cards
42%
of Middle East
consumers say that
checking availability
of products in store
stock via online would
greatly improve their
experience.
89%
Of customers stay
engage with a brand
if there is a seamless
experience between
stores and online
82%
Of consumers
turn to google
during to start
their research
stage
51%
Of consumers
research online
and then
purchase in
stores.
17%
of Middle East
consumers visit a
store first, and the
purchase online

8. 70%
57%
55%
Mobile share of Shopping
Search queries
(2017)
47%YoY growth in
local search queries
80%
MOBILE FIRST & LOCAL WINS

9. CUSTOMER JOURNEYS – MANY CUSTOMERS, MANY JOURNEYS
Website
Contact
Centre
Mobile
Store
Social
RESEARCH BUY USE ENGAGE

10. CUSTOMER JOURNEYS – MANY CUSTOMERS, MANY JOURNEYS
Website
Contact
Centre
Mobile
Store
Social
RESEARCH BUY USE ENGAGE

11. CUSTOMER JOURNEYS – MANY CUSTOMERS, MANY JOURNEYS
Website
Contact
Centre
Mobile
Store
Social
RESEARCH BUY USE ENGAGE

12. DIGITAL TRANSFORMATION
What?

13. DIGITAL AT CHALHOUB – SHIFT
We see digital adding value to our customers and we believe in a future where
digital enables us to grow and to remain market leaders.

14. TRANSFORMATION IS NOT NEW TO US

15. DIGITAL TRANSFORMATION – STORES OF THE FUTURE
Electric Runway – Store of the Future
Synergy between online and offline becoming even stronger

16. DIGITAL TRANSFORMATION – STORES OF THE FUTURE
CISCO: The Future of Shopping
Shop via a screen & touchpad

17. DIGITAL TRANSFORMATION – STORES OF THE FUTURE
Zara AR Studio Collection
Launched April 2018
Objective : Pull traffic to stores by making the store engaging

18. DIGITAL TRANSFORMATION
How?

19. DIGITAL AT CHALHOUB – GUIDING PRINCIPLES
The customer is at the heart
We empower employees :
Make it happen
We start small, we scale fast
Failure and success are
sharing moments
We think hybrid & global from
the start
Startups will be our allies
We play on the offense. We
will be chefs, not cooks

20. DIGITAL TRANSFORMATION – ENABLERS
Empower
Employees
Engage
Customers
Optimize
Operations
Transform
Products
Deliver personalized,
rich, connected
experiences
(Emarsys)
Provide tools to
employees meet
customer demands.
(Xstore)
Increase the flow of
information
(Axonify)
(eMac)
(Shift Community)
(eLearning)
Expand the reach of
your business
(Expand Ecom)
(Digital in Stores)

21. SWAROVSKI – GOING OMNI-CHANNEL
SINGLE CHANNEL
(TRADITIONAL)
MULTI-CHANNEL
(COMPETING – BUSINESS FOCUS)
OMNI-CHANNEL
(COMPLIMENTING – CUSTOMER FOCUS)

22. CHANNEL STRATEGY : OMNI-CHANNEL RETAILING PRINCIPLES
• Increase conversion rate
• Reduce Returns
• Improve shopping Experience
• Rapidly Implement new
marketing initiatives and
promotional offer types in all
channels.
• Provide consistent pricing
across all channels.
• Buy, fulfill, return anywhere
• Rea-time inventory visibility
• Flexible use of Inventory
• Reduce Delivery time and
cost
• Reduce zero picks and
cancelled orders.
• Consolidate customer data
• Track all customer
interactions
• Connect Interactions across
touchpoints
• Understand preference,
customer profiles
• Provide contextual,
personalized, and consistent
experience across channels
• Online and in-store
Increase sales Drive Revenue/Margin Reduce Cost Customer Insight Differentiate
Product Data
Quality
Consistent
Pricing
Inventory
Availability
360 View of
Customer
Personalized
Experience

23. CHANNEL STRATEGY : COMPLIMENTING NOT COMPETING
5,892
Of users coming
online looking for
their closest
physical store.
(Nov ’17 – Feb ‘17)
Since the launch of
Ecommerce, all
customer queries /
complains are
coming via the
online call Centre.
New Xstore POS
will allow digital
invoices to be
send to
customers.
New Xstore “POS
upgrade” will
enable mobile
devices for
payment
14th of Feb
MCC completed
our first unofficial
click and collect
journey

24. DIGITAL TRANSFORMATION
Who?

25. WHO WILL MAKE THIS HAPPEN?
YOU!
Our awesome team!

26. WE CAN DO THIS TOGETHER
We are aligned and daring merchants who
overcame multiple transformations and we will
thrive in this digital world too.