Woolworths Group Limited

ASX:WOW

Woolworths Group Limited

ASX:WOW
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Forum Topics WOW WOW Woolworths Group General Discussion
jwrostagno27
Added 5 years ago

@Hands

Very good points! Definitely the most powerful and comprehensive collection of consumer data in Australia. Also, don't forget that Woolworths owns a massive portion of Quantium, a data science and artificial intelligence company that has partnerships with some big brands. Woolworths and Quantium have created a new business unit called Q-Retail that will bring together advanced analytics and retail capabilities across the two businesses. Q-Retail will focus on delivering Woolworths’ advanced analytics plan and commercialising retail products globally. So not only do they have the data, they have a sophisticated and advanced way of analysing and using that data to their advantage. That's incredibly powerful!

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Hands
Added 5 years ago

Would love to see more of Q-Retail in action.  I believe we have barely even started the journey on 'a personalised marketing experience'.  

There's limited money in groceries - bulky, low cost, price sensitive items that have EXPIRY dates!

Much better off getting a clip for selling a mobile phone / laptop / shopping voucher.  Or an ongoing clip for selling an insurance or mobile plan.

 

Anybody know the 'clip' they could possibly get?

My uneducated guess would be 2-5% for a laptop; possibly up to 10-15% for a coffee machine/garden shed or a shopping voucher. 

Anything small enough for their own trucks to ship, I believe they would bring it in by the pallet load and sell it off themselves (eg airfryers, heaters) a bit like ALDI one-off specials.  Or they could cannibalise their partner resellers just like they do with their woolworth range of generic groceries and earn maybe 30-40%.

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Hands
Added 5 years ago

Consumer spending is not only limited to goods either.  There are services and experiences too that intellient data could use to segment the market to their advantage.  They know where I live (pandemic delivery) and how I spend (breakdown of premium vs generic goods; regularity; rough household composition).

Eg

* pet/child friendly holidays to those with kids; pet minding services; romantic holidays to small high-spend households

* optometry discounts to those who buy contact lens solution; hairdressing services to those who buy perm shampoos

* multi-pack grocery items for share houses

* even rental/housing advertisements (eg family living in an apartment, starts buying nappies, maybe you need a bigger place?)  

Big W investment I see as a hub for services - eg photoshop/printing, optometry, party supplies/hire.  Potential future for travel agents, tuition services, chemist, new banking hub?

And add to this the possibility of augmented reality shopping experience.  Perhaps gamified even - complete your grocery shop in 30seconds tossing items into your electronic trolley?

So my biggest question for the brain trusts would be then.... which comapnies are in the data intelligence space? Which companies are in the augmented reality space for consumer retail?  Which ASX companies sit in BOTH these areas

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