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Duck-bill New Impulse-50

Company

3000 employees in 2019

Assets

"The duck-bill Online" is the delivery service of products of the next generation combining traditional and modern technologies retail trade.

For December, 2019 the range of online store contains 40,000 SKU. In Duck-bill more than 3,000 employees work, there is a distribution center of 61,500 sq.m with different temperature storage areas, an automated system of quality control at all stages of the movement of goods and also the park of the cars equipped with special refrigeration chambers. The system of delivery allows to provide two-hour intervals of obtaining the order and different payment methods.

Performance Indicators

2019

45% of all sales volume of the Russian online stores of food

According to the research agency Data Insight, Duck-bill with turnover of 10.2 billion rubles is the leader of the online market of food and as of December, 2019 occupies 45% of sales volume of the Russian online stores of food.

In August 51% of all orders are issued in the application and on mobile version of the website

On September 2, 2019 it became known that the Utkonos online hypermarket announced a record share of orders via mobile sales channels. In August, 2019 more than 51% of all orders of the retailer were issued in the official application and on mobile version of the website.

Duck-bill

The application of the Duck-bill is adapted not only for smartphones, but also for all tablets running iOS and Android and allows to make purchases in one click. Since launch users installed the application more than 820 thousand times, at the same time, 52% and 48% of installations respectively are the share of iOS and Android. Monthly growth of orders through the application is more than 20% for the period January-July, 2019 in comparison with the same period of 2018. For the beginning of September, 2019 the monthly audience of mobile application totals over 100 thousand users, and mobile version of the website of online hypermarket more than 600 thousand people.

Duck-bill the adapted online show-window, a synchronized personal account and also an opportunity to select a time frame of delivery even before order placement is available to users of the application. In comparison with the website the application has enhanced capabilities, and the most demanded functions among users are: repetition of the order, tracking of the courier on the card, voice search and search of goods in a barcode.

As note in the company, the behavior of users in the application rather strongly differs from behavior on the website. For example, on the website buyers use "listings" for adding of goods in a basket more often and only in 20% of cases click "purchase" directly on the page of goods. At the same time, more than a half of all clicking of the purchase button in the application happens on the page of a card of goods.

«
For us mobile application is one of the key directions of client experience and the most important driver of sales. We are very glad that buyers even more often select the Duck-bill application as shop "on a palm". An appreciation and sales growth say that we move in the right direction, staking on mobile sales channels, regularly improving the application and mobile version of the website,
noted the marketing director and to customer service of Utkonos online hypermarket, Mikhail Morozov
»

Information technologies

2019

As of February, 2019 the company provides the product delivery, products for children and also household chemicals, goods for animals and many other across Moscow and a number of areas of the Moscow region. More than 30000 names of goods can be ordered, without leaving the house, with delivery at any time and any place. For years of work the company simplified process of the order of goods, balanced the range according to preferences of buyers, developed and implemented an automated system of quality control at all stages of the movement of goods. More than 2,000 employees and a huge warehouse over 40,000 sq.m provide delivery of several tens of thousands orders.

CDO of Duck-bill Danila Naumov - how the company prevents outflow of clients and creates the prices using Big Data

Speaking at the TAdviser SummIT conference on November 27, 2019, Chief Data Officer (Chief Data Officer) Duck-bill Danila Naumov told what role is played by data in digital transformation of the companies and as work with them in their shop is based, in particular.

The separate division by data was selected in Duck-bill in 2019. Danila Naumov joined the company in March, having headed this direction. As of November in its command of 25 people from whom 7 employees are analysts of data, 6 employees – engineers of data, and the others – business analysts. According to Naumov, he passed a long way on a set of a command, and it is not fully completed yet. In the market deficit of specialists in the field of data science.

Danila Naumov at the TAdviser SummIT conference<i> (a photo - TAdviser)</i>
Danila Naumov at the TAdviser SummIT conference (a photo - TAdviser)

One of contractors of Duck-bill who works with universities and recruits trainees not only to himself, but also for the clients helped to find talented trainees in a new command of the company. One more method of attraction of talents in the field of data are hackathons which the company organizes.

«
Look for talented specialists of an average and the senior level is even more difficult task. With only one financial motivation of such specialists it is impossible to attract. For data scientists very important point is the business result from their work, embedding of their results in business processes. They have a real impact on development of the company. Therefore, in addition to financial motivation we attract them with responsibility and interesting business challenges, - Danila Naumov explained.
»

One of the first tasks for which in Duck-bill the Data-office was founded is connected with demand forecasting. Being based on data analysis, the daily forecast for all range of shop for two weeks ahead is issued. As of November this task is started in produktiv on a half of the range of shop.

For the forecast many factors are used, mainly it is derivatives from a sales history on specific goods. For example, average sales in a quarter, in 30 days, etc. The company created a polygon on which all hypotheses on improvement of forecast accuracy are tested.

One more task – forecasting of number of orders. Here are considered seasonality trends, calendar holidays, a margin which is put by business, marketing budgets, etc. Here the factors connected with weather enter. Business long time felt that in bad weather Duck-bill of orders has more, but it was unclear as far as. In an analysis result it became clear that 1 mm of rainfall brings in addition 18 orders a day, and temperature deviation from regulation by 1 degree down – in addition 7 orders a day.

These data are used, for example, that on a sales history to calculate the periods of surge in demand and also at the forecast for short intervals.

Slide from Danila Naumov\'s presentation
Slide from Danila Naumov's presentation

From the point of view of target marketing the company as much as possible applies the data on buyers which are available for it. At the expense of it each purchase is personalized, Naumov noted. One of key sources is the history of interactions of the buyer with shop. The company can build the recommendatory system on the website, based on statistics of purchases and create a recommendatory basket for the buyer.

«
The client should not remember that else he needs to purchase, Duck-bill should make it for it and create a relevant basket, - Danila Naumov explained.
»

Along with target marketing data help Duck-bill of a message work with outflow of buyers – builds the models predicting outflow and optimizes campaigns which can return them. By default Duck-bill had one campaign – a discount of 10% to order of 3 thousand rubles and a free delivery. At the same time in the history of purchases there was information and on use of the promo codes offering discounts of the bigger size at the order for larger amounts.

Having analyzed data, the company understood that deeper promo codes can return some segments of clients, a field of what constructed model and carried out A/B-testing. It showed a margin gain in a check group then Duck-bill continued work in this direction.

Slide from Danila Naumov\'s presentation
Slide from Danila Naumov's presentation

One more of important tasks for which data analysis is used - pricing, Danila Naumov told. Process is constructed as follows. Every day in Duck-bill monitor the websites of competitors on different goods. For each goods in the company the price segment (bonus, average or low) and the strategy of development for this segment is set. At the same time there is an understanding on each of them from what competitors it is necessary to build up. Also there are purchase prices which limit the total price. As a result for each goods in Duck-bill there is an interval of the possible prices among which it is necessary to select optimal.

Slide from Danila Naumov\'s presentation
Slide from Danila Naumov's presentation

Further in the company started a problem of calculation of elasticity. A lot of work on "cleaning" of demand of an absence period of goods, of the periods of promotion actions, seasonality, etc. was carried out. As a result the elasticity managed to be calculated for 59% of assortment positions. For other goods of it it was not succeeded to make. Among the reasons of it is on some goods price range very short.

Calculation of elasticity allows to select the prices which will maximize different KPI, for example, revenue and a margin. At the expense of it in Duck-bill expect to gain effect in the form of 4.1% of an increase to revenue.

Danila Naumov designated three main directions where the company within digital transformation moves: it is focused on increase in flexibility of development and an output of new products to the market, attraction and deduction of talents and also satisfaction of business need for data and embedding of advanced algorithms in business processes.

Slide from Danila Naumov\'s presentation
Slide from Danila Naumov's presentation
«
First of all, we decided to be focused on a supply chain, on pricing for commercial directorate, on target marketing. And further my strategic objective – to implement advanced analytics in work of each department. It, including, the analysis of videos in a warehouse for identification of a fraud, text recognition for accounting and highlighting of the key moments, embedding of the analysis of sound recording about the running engine in the application of the freight forwarder for forecasting of breakdowns to optimize repair costs, - Danila Naumov explained.
»

О TAdviser SummIT

TAdviser SummIT took place in Moscow on November 27, 2019 and attracted more than 700 participants - heads and experts of IT departments of the largest companies and the state departments of Russia, representatives of IT developer and contractors. During the action the prospects of digital transformation of business and state agencies, development of technologies, products and services were discussed. In a plenary part and five thematic sections about 60 reports were heard. The action took place in 5 Radisson Blu Olympiyskiy halls.

Availability of delivery to the day across all Moscow and an entry in Tula

On September 9, 2019 it became known that the representative of the online market of Duck-bill food expands an area of coverage of service of fast delivery which is available in the territory of all Moscow within MKAD now. The capitals inhabitants in day of order placement will be able to receive from 7 p.m. till 11 p.m. the purchases, and the orders issued till 1 a.m. to buyers will deliver in the morning.

Besides, the retailer announced that also residents of Tula can make out orders in online hypermarket now. Thus, delivery from Duck-bill outside the Moscow big ring is available already in four localities including Kaluga, Tver and Zavidovo.

Representatives of the company announce further plans for reduction of a period of time between registration and obtaining orders till 4 o'clock and also consider the possibilities of an exit to other cities outside the Moscow region.

«
In Duck-bill it is important to us to correspond to requests of clients, and the speed of obtaining orders is one of key factors when choosing our online hypermarket. In the development strategy of the company further improvement of logistic opportunities, including service of fast delivery and expansion of geography of presence is put. Tula is among the most economically developed cities of the center of Russia with high purchasing power and an advantageous geographical location. We are glad to offer inhabitants of the region a hi-tech delivery service of the wide range of qualitative products which will allow to get positive consumer experience and to save time,
commented Elena Obraztsova, the director of operations of Utkonos online hypermarket
»

Resuming of delivery in produktomata

On August 19, 2019 it became known that the Duck-bill - the product online hypermarket, resumes work of service for obtaining orders from produktomat. Earlier the delivery service in points of issue was suspended in connection with transfer of warehouse transactions and logistic capacities on other distribution center of the company.

Resuming of delivery in produktomata

Produktomata – one of important and interesting projects for the retailer as such format of food-shopping is very demanded among the young buyers of online hypermarket appreciating the time. Points of issue of orders are located in large trade and business centers, residential complexes that allows active residents of the megalopolis in convenient time without binding to the courier to take away the order. It should be noted that nearly 50% of orders in produktomata are made out via mobile sales channels of the company.

«
Having completed process of migration of warehousing capacit on other platform and also having adjusted all processes, we can offer clients service for delivery of orders in produktomata again. Our buyers are loyal to such delivery type therefore for us it was important to return as soon as possible this service with the high level of service,
noted Mikhail Morozov, the marketing director and to customer service of Utkonos online hypermarket
»

Produktomata of Utkonos online hypermarket are the automated points of issue of orders equipped refrigerating and freezing chambers for preserving of freshness of the products requiring special temperature conditions.

CIO of Duck-bill Maria Artamonova – about large-scale transformation of IT and plans of technology development

In August, 2019 Maria Artamonova, the CIO of Utkonos online hypermarket, in an interview of TAdviser told about the new IT strategy, transformation of work of department and about how the company uses the latest technologies for deduction of advantages in the market in the conditions of approach of competitors. Read more here.

2017: The first produktomata

The first produktomata in Russia appeared 2017 when the Duck-bill set the branded points of issue of orders in business centers, fitness clubs, parkings and also in common areas of residential complexes of Moscow.

2012

As earlier the former Deputy CEO for IT and innovations of Duck-bill Sytin Dmitry characterized business of the company is something between online store and retail network selling products. Business infrastructure — an Internet show-window with the sufficient range and product quality at the level of hypermarket (about 25 thousand positions), convenient technology of the order, rather wide retail network on places (in Moscow — 95 shops), the round-the-clock timely product delivery in the four-hour interval designated by the client (vehicle fleet of the company — more than 500 cars), a possibility of payment of the order by different methods and a partial failure (data of 2012).

The core of information infrastructure of the company is SAP R3 v.4.7 which works more than six years and, Dmitry emphasized, and then transition to new versions was not planned as the available customized version arranged business. A self-written system worked at a warehouse, employees have universal terminals of the picker (UTP) of own development based on PDA in which collected orders 'pour'. At the same time Dmitry Sytin emphasized that the hypermarket works not from the client's wishes, and from existence of products in a warehouse of the company, and it is connected first of all with the Russian realities — suppliers, unfortunately, are not capable to provide the timely goods delivery in hypermarket yet, he said.

Among the main problems the representative of Duck-bill designated two — the prejudiced relation of the population to the order of products on the Internet and the complexity of the logistic mechanism of mass service aggravated by complexity of a situation on roads of Moscow and the Moscow region.