SAP is increasing its presence in the Asia-Pacific markets, with sales of its software suite for retailers increasing in India and China.
SAP said revenue from customers in the region using its mySAP retail specific software has more than tripled over the past two years. The announcement was made at the SAP Global Leadership meeting being held this week in Shanghai, China.
The battle for market leadership against rival Oracle Corp. has spread to the Asia-Pacific markets where spending on IT and business software has increased. Oracle, Microsoft and SAP have increased staff at research and development centers and added sales executives throughout the region.
Among the customers SAP is highlighting is Pantaloon Retail India Ltd., which chose SAP's mySAP Business Suite of enterprise applications and retail-specific software for its headquarters and 60 retail stores.
Sino United Publishing Holdings Ltd., a Hong Kong-based retailer and distributor, also recently finished an implementation of the mySAP ERP software. The company also installed applications for materials management, sales and distribution, business intelligence and retail-specific processes.
SAP is looking to show strength in the Asia-Pacific markets as Oracle is forming an aggressive retail industry strategy, which began with its recent acquisition of Retek Inc., a Minneapolis-based retail software vendor, according to analysts at AMR Research Inc. Oracle is also acquiring privately held ProfitLogic, a retail software vendor focused on merchandise optimization technology, in a deal announced last month.
"While Retek's enterprise footprint established a powerful retail foundation for Oracle in its hyper-competitive battle with SAP, the ProfitLogic technology significantly enhances Oracle's core merchandising and demand analytic abilities," said Alexi Sarnevitz, a research director at AMR.
ProfitLogic has planning and allocation capabilities that leverage its demand analytics platform. The features complement Oracle's retail software technologies it acquired from Retek by adding to the demand intelligence platform, Sarnevitz said in an alert to AMR clients, "Oracle Acquires ProfitLogic: The drive to lead in retail software continues."
SAP sees its wins as a sign that its retail software suite is on the rebound. Historically, SAP has had success in the Asia-Pacific region, but in North America, the vendor has struggled with its retail software. SAP recently highlighted several wins in the U.S., including Home Depot, which is upgrading its systems onto mySAP ERP.
"During these times of consolidation in both the retail and IT sectors, more and more Asia-Pacific retailers have been turning to SAP as a trusted adviser and to SAP for retail as a secure business investment for the long run," said Leo Apotheker, a member of the SAP executive board in a statement.