Huawei Smart Retailing Solution

Author: Liu Jiangang (liujiangang@huawei.com), Cai Guanghong (caiguanghong@huawei.com)

Department: Enterprise Business Marketing & Solutions Dept, Huawei EBG

1
Trends and Challenges
(Source: getchee)
2
Rise of mobile commerce, eroding the existing grounds
of traditional retailers

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
201020132016201920222025
Percentage of
online sales (%)
Percentage of
offline sales (%)
Source: getchee
Estimates show that the online sales revenue will account for
about 50% of the total sales revenue by 2022.

By 2015, the sales revenue achieved by mobile commerce is
estimated to reach approximately US$119 billion around the globe.
By September 2013, about 37% of the e-commerce sales revenue will
be from mobile commerce.
Why traditional retailers are losing their
established grounds and customer bases?
Advantages of traditional retailers
Small coverage of their
promotion activities
Inconvenient for customers
since they have to compare
goods in different stores
No evaluation from customers
Store visit required
Visual perception of goods
Better quality guarantee
Small sales
volume
High profit
3
"Online+offline" retailing, helping traditional retailers
regain customers
Offline sales
Store
member
+
Online
promotion
Offline
promotion
Increase sales volume and maintain profit
Online promotion, regaining
customers offline
Online sales increase, maintaining
profit offline
4
Customer shopping experience and mobile retailer
connection, key to "online+offline" retailing
Mobile retailer connection Customer shopping experience
Information
Price comparison: 37% people use
intelligent terminals to compare prices.
Goods details: 43% people would like
to query detailed information about the
goods to buy.
Experience
Convenience
Information sharing: 39% people are
willing to share the information about the
goods they have bought over the network
platform.
Promotion information: 53% people
wish to receive promotion information about
the goods they are interested in.
Payment by mobile phone: 62%
people think payment by mobile phone is
more convenient.
Shopping navigation: 50% people
wish to quickly find the goods they want to
buy.
Information platform setup
Communication platform setup
Social network: 61% retailers want to
use social networks for goods exposure.
E-commerce network: 29% retailers
consider building their own e-commerce
networks.
Mobile APP: 34% retailers have set up
APP platforms for customers to visit their
online stores.
Information push: 47% retailers
push their promotion information in
various ways and they have obtained
feedback from customers.
Data source: getchee
5
Overview of retailing service scenarios
Regional center
HQ
Large store
(shopping mall)
Medium store
Small store
Online mall
Mobile checkout
Wireless mall
Store video
surveillance
Data center
Contact center
Note: The online mall part is not a focus in the Huawei Smart
Retailing Solution.
UC
POS checkout
Stock count
Promotion
information release
6
Solution
Helping customers confidently address
the industry's challenges.
7
Problems facing large stores (shopping malls)
Video surveillance
Office work
Central equipment
room: disorder
Too many devices such
as ERP servers,
switches, routers, video
surveillance devices,
and UPS devices

A separate equipment
room required
VIP customers:
unsatisfactory
experience
Lack of discount
information

Hard to find the desired
discount stores in large
shopping malls

Checkout: queuing
Labor costs

queuing required,
lowering customer
experience
Shopping mall Small store
8
LBS
: mobile commerce+LBS, attracting customers to shop offline again
Customer's work place
Shopping mall's website
Shopping mall
Specialty store
Release promotion
information
Go to the shopping mall
Navigate customers to
the desired stores
Post shopping experience
on the website
Store owners can increase the rent
fees because the LBS service brings
more customers back to offline
shopping.
Store owner: obtain more
rent fees
Store renter: improve sales
Customer: get discounts
Stores can attract target customers
thanks to the LBS service, helping
improve the sales.

Customer can quickly find the stores
that have promotion activities using the
LBS service.
Mobile commerce+LBS
Store owner/Store renter/Customer
three-win
LBS: Location Based Service
Shopping mall Small store
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LBS:
accuracy, key to LBS
Accurate and quick navigation, key to
LBS
Huawei LBS solution
Locating based on the
RSSI difference
Customer's APP
functions
Shopping mall
navigation
Promotion query
Coupon download
LBS server APP server
Huawei Vendor 1 Vendor 2
Locating
method
Based on
the RSSI
difference
Based on RSSI
fingerprinting
Based on RSSI
fingerprinting
Location
accuracy
47%
3 m; 67%
5 m
50%
5 m; 90% 10 m
35%
3 m; 65%
5 m
AP
AP
Huawei's LBS solution employs the
RSSI difference for location. Tests
show that Huawei's LBS accuracy is
over 30% greater compared with other
vendors' solutions in the industry.
Incorrect
destination
Correct
destination
Customers may be navigated to a wrong
place if the LBS accuracy is low.
Accurately locate the
customer's location
based on the strength
of three AP signals.
Locating
principle
Shopping mall Small store
Huawei's LBS accuracy, over 30% greater than
other vendors' solutions in the industry

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Get receipts
Payment
Fetch goods
Get invoices
Problem 2: queue for
checkout
Problem 1: move a lot
Problem 3: low efficiency
(receipts and invoices used)
Medium-range and high-end shopping malls require a mobile checkout
solution to tackle the problems of fixed checkout.
Mobile checkout:
against poor customer experience by fixed
checkout in medium-range and high-end shopping malls
Shopping mall Small store
11
Mobile checkout:
simplifying the checkout process and improving
customer experience
Huawei mobile checkout solution Customer challenges

Ability to interwork with the

purchase-sales-inventory system

Large-screen of the intelligent

POS terminals, and support for
direct payment for the selected
goods

Mall's own Wi-Fi network, with

no costs charged by telecom
carriers

Problems of traditional POS machines:
Checkout only
Low end
Unable to interwork with the purchase-
sales-inventory system
High traffic cost charged by telecom
carriers

The card swipe service is carried over
the mobile network in the shopping mall.
Various terminals such as mobile phone,
tablet, and handheld terminals are
supported.
AP
ERP server
Mobile phone
terminal
Bank
Shopping mall LAN
Tablet
terminal
Handheld
terminal
Security
access server
Customer benefits
Shopping mall Small store
12
Integrated device:
integrated retailing device for quick deployment
and simplified O&M
Huawei's integrated device solution Customer benefits Customer challenges
Long deployment period: 2-3 months for 3-4 IT
engineers
Complex O&M: more than 10 types of devices in
each store
Equipment room required: a lot of facilities such
as air conditioning, heat dissipation, and power supply
Network devices for retailing stores
Pre-integrated with software
such as retailing ERP system and
OA software
Quick deployment:
deployment period reduced from 3
months to 1 week
Unified O&M: workforce
reduced by 50%
Standard device:
Compatible with devices of
mainstream vendors

Note: This solution is
recommended for shopping
malls, medium and large stores,
and HQ of small chain stores.
Internet
/WAN
PSTN
Shopping mall
surveillance
PDU
UPS
Battery
Shopping mall router
Service server
Store security
Shopping mall switch
Voice
OA
Shopping guide
Surveillance
POS
Free of equipment room, and customizable device
integrated with the surge protector, UPS unit, heat
dissipation device, and power supply unit
Shopping mall Small store
13
Terminal security:
security access control of retailing
terminals, ensuring mobile service security
Customer challenges
Huawei's retailing terminal access
control solution
Huawei's solution, more powerful than
other vendors' solutions in the industry
Unauthorized
terminals can
access the service
system.
Mobile service
system
Authorized
terminal
Unauthorized
terminal
Employees use
mobile terminals to
do stuff that is not
related to their work
at the work time.
Unauthorized AP
access causes Wi-
Fi channel
interference and
DHCP resource
consumption.
The retailing ERP
system is linked with
AC to manage and
authenticate retailing
terminals.
AC whitelist
Binding of port
and MAC
address for
connecting to
the switch
Level-1
protection
Level-2
protection
Level-3
protection
Access control
device
NAC server
MDM server
Terminal
MDM manages
terminals.
NAC
authenticates
terminals.
Unauthorized AP
Authorized AP
AC
whitelist
ERP system
AC
Joint
authentication
Huawei Vendor 1 Vendor 2
Level 3
AC provides an
SNMP interface
for the ERP
system to
implement joint
authentication.
No such solution.
No such
solution.
Level 2
MAC address
binding
VLAN+ACL
Same level as
Huawei.
Same level as
Huawei.
Level 1
1. MDM manages
intelligent
retailing terminals.

2. NAC controls
terminal access,
ensuring high
security.
1. No product is
provided to
manage intelligent
retailing terminals.
2. NAC uses portal-
based
authentication,
featuring low
security.
1. No product is
provided to
manage
intelligent
retailing
terminals.
2. No terminal
access control
is provided.

Shopping mall Small store
14
Problems facing small stores
Small store
Diversified
services lead to
various devices.
Router
POS machine
Wireless AP
...

Select store
Customers have
higher requirements.
Traditional commercial
POS machines take large
space and are not pleasing
to eyes.
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Branch store
HQ
Branch store
The store number
increases quickly.
Long network deployment
period
Large number of devices
Complex configuration
High maintenance costs

Shopping mall Small store
15
Huawei Store Box Solution, multi-service access
Huawei solution Customer benefits Customer challenges
Multifarious information sources
Various devices, such as ADSL
modems, wireless routers, and
Ethernet switches
Multiple fault-prone points that
increase maintenance costs
Note: You are advised to deploy the Store
Box solution in stores whose areas are
within 500 square meters.
Unionpay POS
machine
ADSL

One device enables the integration

and access of multiple services.

Wall-mounted installation features

small space occupation and easy
maintenance.

POS machine, cash register, voice,

and video services are processed
based on their priorities.
DVR
Cash
register
PC
Camera
IP phone
Store box device Mobile cash
register
Intelligent service
identification and
QoS
Provides sufficient interfaces to
integrate all information sources (such
as data, video, and control signal
sources) in the store.
Uses the intelligent service
identification and QoS policies to
ensure priority-based service
processing.
Shopping mall Small store
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Tablet-based checkout for better shopping experience
Huawei solution Customer benefits Customer challenges
Note: You are advised to deploy the
tablet-based checkout solution in
select stores.
Users can use a tablet to provide
checkout services.
The system uses boards on the
store box device as background
program server.
The solution takes smaller spaces
and enjoys better appearance.
Uses a tablet to replace all traditional
checkout devices.
The store box device has dedicated
boards to process POS background
programs, back up store data, and
periodically synchronize data to the
server in the HQ.
The traditional checkout solution has
multiple devices.
Devices take considerable space and
are not pleasing to eyes.
LED display
PC display
Keyboard
Cash
register
Host
Printer
Store box device
HQ
Server
Store
ADSL
Cash register
Tablet
On the desk
Under the desk
POS
machine
Board
Shopping mall Small store
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Automatic network configuration, shortening configuration time
and reducing maintenance costs
Huawei solution Customer benefits Customer challenges
Frequent travel brings high expenses. Each
IT maintenance personnel cost an average
of CNY3000 in 2012. The total travel cost
reached CNY1.5 million.
Various network devices lead to difficult
and isolated network configuration.

The HQ sends the configuration files to all
branch stores.
Branch stores complete the configuration.
HQ
Store
...
Automatic
configuration
server
Store Store
...
SNMP
Store box
device
Store box
device
Store box
device
In 2012, the China Resources Vanguard
opened 782 new stores in China. Among these
stores, 500 are chain convenience stores.
HQ
Store
A
Store
B
The automatic installation,
simplified configuration, and easy
operation reduces the system fault
rate.
The HQ can send the
configuration files to stores using
the SNMP.
The solution reduces the
configuration time by 90%,
maintenance costs by 75%, and
travel costs by 30%.
Configuration
files in mobile
storage devices
Shopping mall Small store
eSight remote maintenance
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System architecture
AR2240
ERP
POS machine
BI
CRM ERP POS server
IP PBX U1980 E1 eSpace NVR
Large-screen display
Video decoder Wireless AC
Core switch
Voice
Wireless
Video surveillance center
Partner
ISV
Conference platform
Meeting
NMS
SCM
Data center
China
Unionpay
AR1220
VPN
Contact center
NVR
H
Q

LBS server
UAP CTI IVR
E1
Store box device
Cash register
Table
On the desk
Under the desk
POS machine
Board
Receipt printer
CRM
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VPN
VPN
VPN
NVR
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Video
conference
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Precise
marketing
APP
ERP LBS POS software
Partners in the Solution
Huawei Smart Retail solution
Integration vendor
Video surveillance
IPC, NVR, and codec
Video conference
Conference terminal, web camera, and microphone
IPTV
Streaming media server and STB
Network infrastructure
Switch and router
Wireless
AP, AC, and tablet
Security
Firewall
Converged voice
Voice network, IAD, and IP phone
NMS
eSight
Mobile
cash
register
20
Successful stories
Cooperating with partners to develop the
Smart Retail solution
21
Alshaya network development project
Alshaya: a leading retailer in the Middle East area

Huawei develops an advanced, high-end, and highly

reliable and secure IP network for Alshaya. Each desktop
terminal enjoys 1 Gbit/s bandwidth, which can meet the
service requirements of new stores in the next five years.

The system enjoys integrated network infrastructure,

refined network management, and unified management,
security, and storage devices, which simplifies network
device management and reduces the overall maintenance
costs by 20%.
Huawei works with Alshaya to develop the advance network infrastructure.

22
Huawei provides large-capacity and multimedia contact center to facilitate
Suning's service quality improvement.
Suning: China's No.1 electrical appliance retailer

The system uses the UAP8100 as the core to provide services

for a maximum of 3000 agents, which can meet Suning's
service requirements in the next five years.

Huawei also provides the video contact center that supports

video communications based on web pages and 3G networks.
The solution enables Suning to offer face-to-face "sunshine"
services, which significantly improves user experience.

The system supports the integration with the existing contact

center, which improves the Suning's return of investment.
Suning contact center project

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Customers of Huawei's Smart Retailing Solution
Customers outside China Customers inside China
Copyright2012 Huawei Technologies Co., Ltd. All Rights Reserved.
The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product
portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive
statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time
without notice.
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