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Virtual Reality is a computer generated simulation of a three - dimensional image or environment that can be interacted with real or physical way by a person.

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Virtual Reality is a computer generated simulation of a three - dimensional image or environment that can be interacted with real or physical way by a person.

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Tesco developed its first virtual store, located in Seoul, South Korea, in 2011, which displays its products on metro station walls and bus stops. Consumers can download the app called the Homeplus app and scan QR codes of products they want. Customers can then schedule a time for home delivery.

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South Koreans have amongst the longest working hours in the world, with young, upwardly mobile executives often too busy to go shopping for grocery at a traditional store. The UK's giant retailer, Tesco, sought to turn this disadvantage to its benefit. It introduced "virtual stores", which are essentially a display of products on walls of metro stations and bus stops. Commuters, especially the tech-savvy, ultra-busy lot, could scan the QR codes of the products on display with their smartphones, and place their orders even as they waited for their trains or buses. This case study looks at how Tesco "virtually" created a new market based on a country's lifestyle.
In 2011, when domestic sales of the UK's retail giant Tesco slumped, it fell back on its second-largest market, Asia, which accounted for 30 per cent of its total profit. Tesco's success in Asia, and specifically in South Korea - currently its largest market outside the UK - is based on its ability to adapt to the local consumer.

Tesco's expansion into Asia has been an important focus for the company since the late 1990s. Following its acquisition of Thailand's Lotus in May 1998, the company announced a 142-million investment in South Korea in March 1999 by partnering with Samsung to develop hypermarkets. Through its tie-up with Samsung, Tesco made a localisation effort to adapt its Homeplus stores to the local consumer.

The latest example of this localisation was the launch in 2011 of its first virtual store, located in a Seoul subway station, an idea based on the observation that the typical Seoul commuter did not have the time to shop at her nearest brick-and-mortar Homeplus store.

The virtual stores are set up in public spaces, most often in subways and bus stops with high foot traffic and frequented daily by tech-savvy commuters. This is how such stores work:

- Interested customers download the Homeplus app into their smartphones.

- They then use their smartphones to scan the QR codes of the products they want to purchase. The posters in the virtual stores are designed to resemble the actual aisles and shelves of a regular Tesco store, making the experience very user-friendly.

- The scanned products are stored in the customers' online shopping basket, who pay online once their order is completed. Homeplus reported that the majority of the orders are placed at 10 am and 4 pm, when people are commuting to and from work.

- Customers schedule a time for home delivery. Same-day delivery is the norm, so that customers can get their products by the time they get back home from work.

The virtual store has been a huge success with commuters and drove over 900,000 app downloads in less than one year, making the Homeplus app the most popular shopping app in South Korea. Online sales increased 130 per cent since the introduction of the virtual stores and registered app users increased by 76 per cent. In February 2012, Tesco Homeplus announced it was extending the virtual store concept to 20 new locations across the country. Today, there are 22 Homeplus virtual stores in South Korea, and the brand is the country's No. 1 online retailer.
Understanding the Consumer
South Korea, a country of around 50 million people, is the fourth-largest economy in Asia and the 12th largest in the world. Compared to other Asian countries, South Koreans generally have higher levels of education, higher average household income, and better living standards. Over the past few decades, the country has built itself up with its largest resource - people - and has achieved rapid economic growth through exports of manufactured goods. It is now a major producer of automobiles, electronics, steel and high-technology products such as digital monitors, mobile phones, and semiconductors.

Over the past decade, South Korea has advanced tremendously and has been shaped by constant innovation, technology and westernisation. In today's world, shopping habits and behaviour of South Korean consumers are impacted by several key factors.

Extensive use of technology/connectivity: According to a report by McKinsey & Co., South Korea is one of the most advanced countries in terms of broadband penetration, and has more than 10 million smartphone users. In other words, one in five South Koreans use a smartphone. Additionally, according to Nielsen, households in South Korea are making six per cent fewer shopping trips. When they do shop for products, an increasing number of South Koreans go online.

Long working hours/busy lifestyle: Although the average annual hours worked per person in South Korea is declining, the country still comes out top among OECD countries with 2,193 hours. This is perhaps unsurprising, as the work ethic and lifestyle of South Koreans get shaped at a young age. According to the BBC, South Korean parents spend thousands of pounds a year on after-school tuition on an industrial scale. There are just under 100,000 hagwons or private academies in South Korea and around three-quarters of Korean children attend them.

Travel time on public transportation: South Koreans spend a significant amount of time on public transportation, predominantly between home and work. What has helped is that public transportation is reliable and inexpensive, and is the fastest and most efficient way to get around.

The introduction of Tesco's virtual stores in subways made use of time spent by commuters waiting for public transportation, allowing buyers to use the little time they have available for grocery shopping. Not only did this change the way buyers shopped, it also increased the potential market for Tesco. These buyers may not have otherwise had time to go grocery shopping between their personal and professional lives, opting to buy take-out instead.

All of this implies that grocery customers in South Korea are more time-poor and less price-sensitive. They value convenience and technology to accommodate their busy lifestyle.
Tesco's Value Proposition
Globally, Tesco's customers are price-driven buyers who look for value and/or convenience. According to its corporate website, Tesco's customers care about the following areas: (1) price and value (2) multichannel and convenience, and (3) trust. Typically, therefore, the company's value proposition is to provide customers with the products that they want at a low price. Tesco executes this proposition through multiple channels, including hypermarkets, grocery stores, convenience stores and online. When Tesco first entered South Korea, it offered this value proposition for the local customer: to provide the variety of products that the South Korean customer wants at a low cost in a beautiful store environment.

As the economy progressed and South Koreans invested more time and money into their careers and high-tech devices, Tesco adapted its value proposition to fit its on-the-go customers. By introducing the virtual store, Tesco Homeplus is able to execute its new localised value proposition: provide the variety of products that the customer wants in a convenient location and at a low cost.

In South Korea, it can be argued that Tesco's customer values multichannel options (for example, online and mobile), and convenience much more than price. According to a March 2013 research from MasterCard, around 40 per cent of online shoppers in South Korea used their smartphones to make a purchase in the previous three months.
Image-value-experience Triangle
In addition to the virtual store's strong value proposition, Homeplus has also developed a strong image and experience that mutually reinforce this value proposition. The Homeplus virtual stores attract their customers through their quick, tech-savvy, and cool image. They sell to their customer by offering the value of extreme convenience that the customer requires. And they are able to keep their customers by offering them the satisfying experience of easy-to-use technology, on-time delivery and quality products.

Given that the South Korean on-the-go customer places much greater value on convenience than on low prices, Tesco Homeplus may have been enticed to increase product prices through their virtual store channel. However, we believe that Homeplus decided not to increase prices in order to maintain its overall Homeplus value proposition, which hinges on providing desired products at low prices.

This case study highlights important learnings that can be applied, generally, to other businesses:

Customer-based marketing: A "real-world" application of the new marketing paradigm, in which the process starts with the consumer and his or her needs, as opposed to with the product.

Customer segmentation: When you enter a new market/geography, companies need to understand and analyse consumer behaviour trends, including shopping habits and purchasing behaviour, to identify who the valued customers are and how they behave.

Adaptation of value proposition: If the needs, attitudes and lifestyle of the company's "value customer" are different in the new market/geography, the company needs to adapt its value proposition and value network across the entire supply chain.

Power of technology in traditional industries: Technology has a disruptive power in traditional industries, such as retailing. In this case, the predominance of smartphones in Korea allowed Tesco to boost its revenues through an innovative approach.

Innovative marketing: The way marketing can be used innovatively to target captured audiences (such as commuters waiting for the next train in a station).

Brand Extension: One option that Tesco Homeplus may have considered in order to take advantage of is to create a new brand for the virtual stores that would have remained independent from the Homeplus brand and, therefore, limited the risk to the Homeplus brand by increasing prices.

EXPERT VIEW RETAILERS STRUGGLING TO DEVELOP COMPETENCIES TO SUCCEED GLOBALLY
" Despite Tesco's many problems, it has been a leader in developing multichannel solutions"

Nirmalya Kumar
Visiting Professor of Marketing, London Business School, and Member, Group Executive Council, Tata Sons
One of the most dramatic changes in retailing over the past two decades is its rapid globalisation. As a result, what used to be a local, unsophisticated, "mom and pop" business is being transformed into a global and technology-intensive growth sector. In support of this thesis, consider premier global retailing brand names - such as ALDI, Body Shop, H&M, IKEA, Marks & Spencer, Toys R Us, Walmart, and Zara - who are adorning the streets of several countries. They combine their finely-tuned value proposition with superior retailing skills, global sourcing, and access to capital to create value for both their customers and shareholders. Going international is one of the primary growth strategies available to a retailer when its domestic market is saturated.

Despite the popularity of globalisation in retailing, most retailers are still struggling to develop competencies to succeed in global markets. To what extent should the "original" format and merchandise be adapted is a major issue. Walmart learnt this the hard way when its initial entry into China had the wrong merchandise. On the other hand, Mexican customers were disappointed when they did not find enough imported US merchandise in the Walmart stores. Toys R Us has learnt that there are differences in consumption patterns. The Japanese demand electronic toys, other Asian consumers demand educational toys, Europeans favour traditional toys, while American kids prefer television- and movie-endorsed toys.

The Tesco case in South Korea demonstrates that despite the company's many problems, it has been a leader in developing multichannel solutions. With consumers preferring the convenience and selection of e-commerce, traditional brick-and-mortar retailers are challenged to address how to serve this customer profitably. The home-delivery option is much valued by consumers but cannot be as profitable as the traditional store. Therein lies the dilemma.
VIRTUAL STORES COULD SEE ACCEPTANCE LARGELY FOR TOP-UP OR IMPULSE PURCHASES

" Virtual stores would offer the convenience of online retail and the experience of brickand-mortar stores"
Nandini Chopra MD, Corporate Finance Group, Alvarez & Marsal India
Virtual retail, such as Tesco Homeplus in South Korea, is an innovative concept that has witnessed success in various forms across developed markets. Today, we can be optimistic about the acceptance of new concepts by Indian consumers with the recent success of e-commerce and increasing penetration of smartphones - online shoppers have grown to 35 million from 8 million in 2012, and smartphone users have climbed four-fold to over 110 mn in the same period. A virtual store would offer consumers the 'convenience' of online retail and the 'experience' of brick-and-mortar stores. However, we can expect significant challenges in implementation in India.

The target segment would be very niche - young, urban, middle class, time-strapped, convenience seekers, whose needs are fulfilled by either neighbourhood mom-and-pop stores, or e-commerce sites like BigBasket.com and LocalBanya.com. To reach this niche target consumer with virtual stores would be different in every Indian city. Mass public transport transit areas, such as local train stations in Mumbai, are unlikely to be successful given the high traffic and quick movement, while tier-I city airports may be ideal given the audience and transit time.

Also, common areas in residential, commercial and shopping complexes could potentially thrive.

The success of virtual retail would also hinge on a strong back-end for order fulfilment and a supply chain enabling timely delivery. An extension by online retailers or organised neighbourhood retail chains such as Godrej's Natures Basket or Reliance Fresh, who have an existing set up could prove successful. However, such a concept may not be viable on a standalone basis. A hybrid model could be a marketplace aggregator who could use the existing kirana stores for delivery.

As the concept is fascinating to consumers, virtual stores could see acceptance largely for top-up or impulse purchases.
(This case study is from the Aditya Birla India Centre of London Business School)

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How Tesco virtually created a new market on a country's lifestyle

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South Koreans have amongst the longest working hours in the world, with young, upwardly mobile executives often too busy to go shopping for grocery at a traditional store. The UK's giant retailer, Tesco, sought to turn this disadvantage to its benefit.

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The UK's biggest grocery stores; ASDA, Tesco and Morrisons (and many more), have succeeded in applying the option for customers to use online shopping for their convenience and getting their products delivered to their homes. Mintel reports that in April 2016 29 percent of UK grocery shoppers use online shopping.

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The days of heading to the supermarket are over for some Brits as they trade trolleys for home delivery. Indeed, new research from Mintel reveals that 29% of UK online grocery shoppers are shopping for their groceries more online now* than 12 months ago.

And online tills are ringing as a result, with online grocery sales forecast to reach £9.8 billion in 2016, up 13% from an estimated £8.6 billion in 2015. What's more, sales are forecast to grow a further 73% to reach £15 billion by 2020. Online-only grocery retailers are particularly benefiting from sofa surfing, with sales increasing 110% from £1.1 billion in 2010, to an estimated £2.3 billion in 2015. Currently, online grocery shopping accounts for 6% of total grocery sector sales in 2015, up from 3% in 2010.

Today, as many as half (48%) of Brits are current online grocery shoppers. One in ten (11%) do all of their grocery shopping online, with a further 12% doing most of their grocery shopping online. And it is younger consumers that are shunning the supermarket trip: one fifth (19%) of 25-34 year olds now doing all of their grocery shopping online, with 36% of this group shopping for groceries online more often now than 12 months ago.

The main reason consumers cite for shopping online more is convenience, with 60% of Brits who are shopping more online doing so because it is more convenient than visiting stores. This is followed by the fact that online shopping allows consumers to keep better track of how much they're spending (33%) and the wider variety of delivery slots available (32%).

Online grocery shopping accounts for 6% of total grocery sector sales in 2015

Nick Carroll, Retail Analyst at Mintel, said:

"The online grocery market continues to grow in double digits, but remains small in the context of the wider grocery market. However, the shift away from superstores to more convenient shopping channels is certainly benefiting the market with the majority of consumers now doing some grocery shopping online and almost a third saying that they now shop online more than a year ago. The majority of online shoppers still mix online shopping with store-based shopping, but consumers are becoming increasingly comfortable shopping at online-only retailers with growth outpacing the total market."

Not all consumers are ditching the trip to the shops however, with as many as one quarter (24%) of Brits having never bought groceries online and having no interest in doing so, rising to 38% of over 55s. Additionally, 11% of UK online grocery shoppers are shopping online less now than 12 months ago.

Two fifths (38%) of those who are shopping for groceries online less or who have stopped shopping for groceries online have done so because of the lack of control when choosing fresh products, while one quarter are put off by high delivery charges (26%) or have begun shopping more at discount grocery retailers (25%).

" The lack of control when selecting fresh food and drink products remains one of the biggest issues for online grocery retailing and not one that is easy to address. All of the major players now offer some form of freshness guarantee but this is still not a substitute for picking your own. Inevitably, due to the volume of orders the major retailers now have to process, not all products or orders live up to expectations. Additionally, the discounters have obviously been a disrupting force in the grocery sector for a number of years, and it seems that online grocery retailers are not immune to the impact discounters are having on the market." Nick continues.

Finally, it seems that Brits are responding to delivery passes from retailers, entitling them to discounted delivery rates. As many as one fifth (21%) of those who shop for online groceries at retailers that offer a delivery pass currently own one and a further 29% don't, but would be interested in having one in the future.

"As we see Brits turning away from the main weekly shop and towards fluid, when-needed shopping, it is important for online grocery retailers to find a way to engage with these consumers. A wider proliferation of delivery passes may be one way in which retailers can do so as it makes more frequent online grocery shops viable." Nick concludes.

*December 2015
Press review copies of the Online Grocery Retailing UK 2016 report and interviews with Retail Analyst Nick Carroll are available on request from the press office.

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29% of UK online grocery shoppers are shopping for groceries more online now than a year ago

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The days of heading to the supermarket are over for some Brits as they trade trolleys for home delivery. Indeed, new research from Mintel reveals that 29% of UK online grocery shoppers are shopping for their groceries more online now* than 12 months ago.

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As Amazon is a continuously growing market, it is now offering Amazon Fresh, which extends their services from just retail based to grocery based, as well. Amazon has bought over Whole Foods, which subsequently means that Amazon products will be in every Whole Foods store, and the local communities that used to be supported by smaller companies are being taken over by large corporations.

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Amazon Fresh | Online grocery shopping in UK

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Buy fresh groceries, organic food, and everyday essentials online on Amazon.co.uk ✓ Same day delivery possible on eligible orders

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- As VR is becoming more accessible to business globally it makes it possible for consumers to have a more convenient option and/or alternative for grocery shopping.

- At the comfort of your own home you are able to have the products from your shopping list delivered at your door step for the time you need.

- Some products may be more available online than in stores, since some products may run out of stock.

- No need to stand in a queue waiting to be served, online shopping gives you the easy-to-use self-service option.

- There are more deals available online than in-store.

- It is easy to compare prices of certain products when shopping online.

- Customers can leave and read reviews of products, which helps in decision-making.

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There are tons of online shopping sites where you can buy everything from plane tickets and flat-screen TVs to food, clothes, furniture, office supplies, movies, and lots more. While shopping online is convenient and fun, there are some disadvantages. Know the cons to realize the benefits of shopping at a traditional store.

The Pros of Shopping Online

There are, of course, distinct advantages of online shopping:

Time Convenience

In comparison to a brick-and-mortar store with fixed hours, online shopping venues are available any time, day or night. This is especially useful for parents with small children, anyone who works throughout the day, and during times of inclement weather.

Shopping Apps

Shopping from an app is a convenient luxury. Whether you're homebound or able to visit a store, shopping from your phone is a uniquely awesome experience.

Price Comparisons

When you visit a store, you most likely settle for whatever price the vendor has placed on a particular item. With online shopping, you can compare prices from hundreds of different vendors. Grocery store price comparison apps are a great option if you're not interested in doing this manually.

Discounts and Notifications

Online stores want to keep you as a customer, so they may offer deep discounts, rewards, and cash back if you sign up for their newsletters. This can keep you updated on all the best upcoming sales. Coupon codes-like the ones you can get from coupon code sites -are also extremely popular when shopping online.

Infinite Choice

Shelf space in a physical store is limited, which means the variety of goods is limited. This isn't true with online stores, where choices are abundant. If you don't see what you want at one store online, move on to the next one. As the consumer, you have the power to do that.

No Size Limitation

Another benefit is when the product you want to buy is too big to haul in your vehicle. Buying a boat from an auction site or ordering a tiny home online are just two examples of situations where your car just won't do the job.

Private Shopping

Ordering online is the preferred way to get something discreetly. Nobody has to see what you're filling your cart with, and some places even offer inconspicuous packaging so your delivery person is also none the wiser.

Zero Parking Struggles

Finding a parking spot can be a big reason you don't stop at a store. Especially around the holidays, there's a major benefit of no congestion when shopping online. When it's really busy, you might not even remember where you parked your car!

Home Delivery for the Disabled

Buying oversized items and not having to worry about parking are benefits everyone can take advantage of, but if you're physically disabled to the point that you can't drive or walk through a store, online shopping might be your only solution to ordering food, essential items, and other goods.

Easy Access to Consumer Reviews

It's easy to access consumer reviews for pretty much any product you can think of online, which makes for informed purchases. If you're not sure if you're up to buying something, conduct a little research by checking out customer reviews.

No Pressure Sales

If you don't want to experience awkward approaches by eager salespeople, you don't have to put up with that online. While you could consider pop-up ads a similar experience, they're a bit easier to suppress. Car auction websites are a great example of this.

Fewer Impulse Buys

This one depends on your shopping habits. If you find it easier to buy things you see in passing as you walk through a store's aisles, online shopping could save you money and even help you make healthier choices.

More Payment Methods

Another benefit of online shopping is that you can pay for things differently than you can at a physical store. Some retailers support PayPal, Bitcoin, or zero-interest payment plans, for example.

The Cons of Shopping Online

Here are a few disadvantages of internet shopping that might deter you from making your next purchase online:

No Inspection Ability

Things you order online could be larger or smaller than how they appear in the pictures, or the measurements listed for the product could have been written down incorrectly. And when you buy clothes online, you can't feel the material, see how it fits around your waist, or notice how it's made. Most online stores make it easy to return items for this reason.

Can't Always Talk to Someone Immediately

If you have a question about what you're about to order, or what you just ordered, you can't just walk up to an employee. You might instead have to wait a full day or longer to get your question answered. This situation is improving, however, as many sites have added an instant chat service or automated bot-answering screen to address concerns and answer questions on the spot.

Must Wait for Delivery

Need something no later than this afternoon? Not many online shopping sites have same-day delivery, and none of them offer the on-the-spot, take-home advantage that a physical store does. Some online shopping sites take weeks to deliver your order (though, they're in the minority).

Shipping Problems

You're more likely to have your package arrive broken, wet, melted, etc., or not arrive at all, when you're not the one who picked it up yourself. Even packages that do arrive could sit outside long enough for theft to occur.

Shipping Costs

Depending on what you buy, you could spend the same amount on just shipping costs, or sometimes even more. In-store shopping has no need to charge extra for shipping. Plus, depending on where you live, you might pay a bit more due to special taxes for online shopping.

Privacy and Security

Privacy and security are legitimate concerns for any online shopper. Your payment information could get stolen from the site, or someone who works there could copy your bank details and use them later on their own purchases. It's also hard to immediately recognize whether an online store is real or just there to scam you.

Legality Concerns

While this isn't a widespread problem, you could accidentally buy something that's illegal where you live. The product might very well be available from the website you're on, but it could also be illegal to order in your area. It's much easier for a website to offer these kinds of products than a store because websites can be created quickly and hosted all over the world with less oversight or concern for international shoppers.

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Shopping Online: Why It's So Incredibly Popular

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You should know the pros and cons of online shopping if you like to buy things online. More people than ever before are shopping online... should you?

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- You don't get to choose the 'quality' of the products, e.g. some avocados may look and feel better than others, and as an online shopper you do not decide which one to take.

- It is extremely difficult to get same-day delivery, especially on weekends when most people are at home and available.

- There may be some damage during the delivery process.

- If you require assistance you will not get it immediately.

- Online shopping means you agree to having your data collected by these services. By the use of your data, companies can target advertisements including offers on products within their store by e-mail or pop-ups on websites based on your shopping list.

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Benefits: Reaching a wider audience. Information spreads faster. Receives feedback & free way to access a large consumer market. Allows the business to be more creative. 

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Benefits: Reaching a wider audience. Information spreads faster. Receives feedback & free way to access a large consumer market. Allows the business to be more creative. 

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Mistakes are harder to fix because of the vast audience that have instant and easy access to social media. 'crisis PR'. it is essential to stay relevant because social media makes it so easy for your audience to 'switch-off' (up to date and on-trend)

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social media q.3

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social media is an outlet for businesses or organisations to engage and learn about their customers. It is a free and easily accessible platform to: advertise, promote and sell products or services.

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social media is an outlet for businesses or organisations to engage and learn about their customers. It is a free and easily accessible platform to: advertise, promote and sell products or services.

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social media is either website or apps that allow people to connect, creat and share content globally.

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social media is either website or apps that allow people to connect, creat and share content globally.