Embracing Digitalization Accelerating New Retail Retail Industry Solutions

Embracing Digitalization, Accelerating New Retail

Retail Industry Solutions CONTENTS Retail Industry Trends 2 Success Stories

Retail Industry History 2 nd revolution The first department store Le Bon Marché was founded in Paris, France 4 th revolution Digitalization Michael Cullen founded the first supermarket, King Kullen in the USA 1852 New Retail New Model 1930 1859 1995 1962 2010 to 2016 Launched by consumers • Integrated revolution • Omni-channel, multimodel A&P in the USA was the first grocery chain store 1 st revolution 3 rd revolution 3 Omni-Channel Source: Yiou intelligence

New Retail: Consumer-Centric and Data-Driven Enable “consumers-goods-sites” digitalization Consumers n t rne n nte nitio e. I bil og Mo rec n ce tio Fa ec Goods on ne ctio nn co b e. C ile p om aym me ne rce t c • Connectivity is the basis: New technologies such as the Mobile Internet, the Io. T, and e. Commerce connect consumers, goods, and sites together to enable digitalization. AI and cloud computing mine and utilize the value of “consumers-goods-sites” data and ICT infrastructure resource to realize automation and intelligence of the whole retail business process. Mo • Sites connection Io. T Product recognition Goods Sites Consumer insights Customer segment analysis Omni-channel engagement …… E 2 E tracing Automatic accounting Requirements prediction …… Smart goods placement Intelligent navigation Intelligent checkout Automatic price updates Infrastructure cloudification …… Improve customer experience and enhance brand competitiveness Improve operational efficiency, reducing costs，increasing revenue 4

Retail Industry Solutions CONTENTS Retail Industry Trends 5 Success Stories

Retail Industry Solutions Customer Segment Analysis Digital Terminal (Electronic Shelf Label) Product AI Commodity Management Smart Store ERP/CRM/WMS … Store Intelligent Management Supply Chain Management Fusion. Bridge Server Public Cloud Storage Network Retail Cloud Platform 6 SAP HANA Fusion. ROBO

Customer Segment Analysis: Helps Optimize the Store Layout and Build High Quality Services Retail Cloud Platform Camera Data Webchat Wi-Fi Data No. and time of Customers Crowd flow Customer category / preference No. and time of stay 7 SMS …… TV Terminalt VIP Identification App … • Target customer segment to realize accurate information push • Analyze commodity attraction to optimize store layout Store Screen

ESL Improves Store Operational Efficiency Traditional way ESL: Converged deployment Huawei Wi-Fi and RFID Converged Network Paper Label AC/LSW Dedicated ESL + Dedicated Network • • • Paper label requires annual maintenance Slow manual price adjustment Additional ESL network, higher costs 8 ESL Management System (partner) ESL (partner) • • • No annual maintenance cost Network-wide price auto-adjustment, quick response Reduces Total Cost of Ownership (TCO) by 50%

Automated Commodity Management, Efficient Inventory and Reduces Losses Manual Management Automated Management Huawei Wi-Fi and RFID Converged Network AC/LSW Commodity Management System （Partner） Commodity Tag • • • Manual inventory, high costs, longer time Lack of means to track commodity location 9 • Automatic inventory, saves manpower, and achieves results in real time Real-time monitoring of commodity position to reduce losses

Store Intelligent Management Creates Optimal Shopping Environment, Saves Operational Costs Creates Optimal Shopping Environment Retail Cloud Platform Cloud Managed Wi-Fi Platform • Provides optimal shopping environment using intelligent control of a store’s temperature, humidity, brightness, and other factors, for the most ideal customer experience Store Management System (Partner) Internet Reduces Operational Costs Huawei Io. T Gateway Monitor Platform Huawei Io. T AP Zigbee/ RFID Store Terminal Wi-Fi Store Control Panel Environment Management Equipment Monitoring 10 Safety Protection • Monitors the energy consumption of large electrical equipment graphically, such as the store refrigerator, helping stores implement unified management and reduce operational costs. Reduces Store Loss • Store property can be effectively protected through invasion detection, alarms, and linkage video capture.

Product AI: More Convenient Shopping, Reduces OPEX Smart Cabinet Unlock by mobile App scanning Checkout Audit Goods information and picture input Model and goods updated information push Open and take goods Pay by mobile App scanning Place goods in designated area Retail Cloud Platform Close, App takes auto payment (Model training, updates, application services) Camera identifies goods and generates the bill Product Identification terminal — Enabled by G 1500 Semi-closed area • Convenient shopping, shortens checkout time. • Saves store manpower allocation and reduces OPEX. Public area 11 Shopping mall Convenience store

Fusion. Cloud Builds Safe, Open Retail Cloud Platform Optimal Experience ERP CRM Supply Chain Management Container WMS • Unified architecture of public cloud and private cloud • Unified services, APIs, and experie Middleware Application platform Resource/Manage/Application Service Driven Resource/Manage/Application VDC 1 • Enhances Iaa. S services GPUs, bare metal servers, and SAP HANA cloud servers to support cloud-based key services. • Paa. S services, adapting to application data innovation Resource/Manage/Application VDC 2 VDCn Resource pool Virtualization Bare metal SAP HANA GPU pass-through Docker Hadoop Public cloud Huawei Cloud VMware KVM Amazon Remote disaster recovery DC 1 Intra-city HA Hybrid cloud DC 2 12 SDN … DC 3 DC n Reliable and Safe • Chips and hardware support highperformance cloud services. • Provides multi-dimensional and reliable disaster recovery services based on storage devices.

Smart Store: Improves Shopping Experience and Operation Efficiency Store Intelligent Management Customer Segment Management AR WAN/Internet HQ High-Density Wi-Fi Fusion. ROBO Product AI Electronic Shelf Label Commodity Management 13 Plan >> Install >> Optimize >> Inspect

Retail Industry Solutions CONTENTS Retail Industry Trends 14 Success Stories

Vmall: High-Performance Cloud Platform Facilitates Business Development Business Challenges • • Platform reliability; disaster recovery and backup System security, preventing hacker attacks Data visualization, monitoring platform status in real time Excellent customer experience, even during traffic surges Huawei Solution for Public Cloud • • Internet Typical visits AZ 1/Langfang Ordering Vmall platform-1 (public cloud) Typical visits Impulse buying AZ 2/Langfang Vmall Impulse-buying cluster (public cloud) VPN Ordering Impulse buying • Vmall platform-2 (public cloud) Intra-city Active-Active Deployment and Remote DR Solution Anti-Distributed Denial of Service Attacks (DDo. S), security groups, and Web Application Firewall (WAF) ensure network access security. Cloud. Eye can customize the monitoring parameters in the background, send notifications by SMS message or email, while monitoring the platform status in real time. VPN DC Customer Benefits Vmall (DR, Guangzhou) Customer Background • Huawei Vmall is Huawei’s proprietary e. Commerce platform intended for its end users, providing terminal products and services, such as Huawei phones, wireless network access devices, tablets, and other related components. • • 15 300 Virtual Machines (VMs) can be created within 5 minutes during peak business hours, delivering excellent customer experience. Sharply improves the network access security, preventing hacker attacks. Reduces O&M and labor costs through customized performance data and alarm data.

Uni. Euro: Wi-Fi-based Precision Marketing Business Challenges • • Uni. Euro is always committed to providing consumers with stable, high-quality free Wi-Fi services, including: Ø 100% Wi-Fi signal coverage Ø Easy access to the Wi-Fi network to enjoy high-speed Internet services, even in densely populated areas Using the Wi-Fi network to provide accurate terminal location information Huawei Solution • • • Customer Background Uni. Euro is the largest omni-channel distributor of consumer electronics and household appliances by number of stores in Italy. Uni. Euro operates through 225 directly operated stores, 267 affiliated stores, its e. Commerce platform unieuro. it, as well as through B 2 B operations. 16 High-density Wi-Fi, full coverage against anti-interference signals Customized portal Wireless positioning solution that provides open APIs for third-party professional retail data analysis platforms Customer Benefits • • Optimizes consumers’ shopping experience. Improves advertisement placement efficiency, marketing quality, and enables the free Wi-Fi service to become a Value-Added Service (VAS) for Uni. Euro.

SAP HANA Supports ECI’s Real-Time Business Decision-Making Business Challenges • • ECI has a tremendous amount of data. It was a huge challenge for ECI to drive faster time-to-value from the data in order to increase profitability. ECI planned to build a new platform to meet the Big Data analytics requirements of its internal departments for its Enterprise Data Warehouse (EDW). Huawei Solution • • Customer Benefits Customer Background • El Corte Inglés (ECI), headquartered in Madrid, is the biggest department store group in Europe and ranks fourth worldwide. It is Spain’s only remaining department store chain. 17 Huawei provides a brand new platform for integrating data from all of ECI’s information systems, enabling centralized data processing and analysis. Huawei provides the Kun. Lun SAP HANA appliance, which supports 16 TB and a maximum of 32 TB memory through expansion. • Based on in-memory computing, Kun. Lun SAP HANA appliance delivers up to 1, 000 times higher performance than the original system. Based on the new platform, ECI develops operation analytics applications for real-time analysis of live and historical data, to make better, more timely business decisions while improving operational efficiency.

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