The U.S. National Retail Federation annual conference began this week, and software vendors in the retail business segment tend to make announcements during this time. Oracle has already released the news of two new retail customers: Australian footware manufacturer and distributor Deckers Outdoors, which owns such brands as UGG and Teva, and one of the largest Russia-based consumer electronics retailers, M.Video. Besides the shared industry vertical, these two companies may not have much in common. Nevertheless, they both have opted for Oracle’s product suite for a number of reasons.
As the vendor’s press releases state, both companies currently operate a large number of stores—280 for M.Video and 70 for Deckers Outdoors—needing all the necessary logistics and supply chain management. Both retailers have aggressive business growth plans—M.Video is to open 35 new stores in 2013 alone, and Deckers Outdoors plans to open three times as many stores as it currently has in the near future.
Another thing that probably unites these retail businesses is their customers’ characteristics. Certainly, people who came to an electronics store expect to use the latest retail technologies, such as mobile access; they expect an adequate Web site, and to be able to check for an item’s availability and other information quickly and independently. Buyers of Uggs aren’t that different—these are mainly young and highly mobile people who share good ar bad experiences with friends instantly, so there is no room for a retailer to make a mistake or or evidence a problem of any type.
These companies have ambitious strategies that require an adequately powerful and highly scalable retail management software. The size of these clients and their plans imply Tier 1 or so software requirements. The fact that these companies have selected Oracle Retail demonstrates that the software product fits the flexibility and scalability requirements of these retailers.
In fact, the Tier 1 retail applications market isn’t as full as the Tier 2 segment, so to create a short list of vendors and solutions isn’t a big problem. The issue is to thoroughly research your company’s requirements for current and future business models, estimate and match all available offerings to those requirements, and finally make the right desicion.