BEST OF 2014English version

Thierry Strickler – Youmna Ovazza

January 2015

Pure players invest in

traditional trading

CONVENTIONS

PHYSICAL formats

are reinvented

SMART objects for a

new customer

experience

The triumphant

MOBILE, at the heart

of customer relations

PERSONALISATION,

between customer

service and big data

Towards a new era in

GLOBAL trade

1 2 3

4 5 6

1.

Towards a new era in GLOBAL trade

Towards a new era in GLOBAL trade

The battle of the

giants

2014 confirms the great shape global e-commerce is in (+23.6% in 2013 reaching €1,552

billion) and the major role of the Marketplaces, which have removed borders and extend to

all four corners of the globe.

The new giants setting the tone of global trade are pure players with pharaonic

ambitions: Amazon, Alibaba and Rakuten.

The Asian platforms are pitting their efficient economic and service-based model (shop in

shop for brands, for example) against Amazon's all-terrain innovation.

The game of

multichannel

retailer

partnerships

Traditional distributors are defending their positions by reinvesting in physical stores and

using their e-commerce for their multichannel and international development.

It is a global playing field and partnerships are being formed between complementary

players and competitors, which is reshuffling the decks in trade competition: price war

in domestic markets like in France, pooling of forces abroad.

The emergence

of Africa

In 2013, 70% of the economies with the highest growth rate in the world were in Africa.

Africa's middle class is expected to increase from 370 million people to over 600 million over

the next thirty or so years (IMF source). The major international retail groups and the

pure players have joined this new dimension and are positioning themselves to

expand and invest in these new growth drivers. The emergence of powerful pan-African

players seems imminent.

Amazon's marketplace has become a global trading tool

The world will soon no longer be enough for

Amazon, which is announcing some

extraordinary unverifiable results for this festive

period. Over 2 billion parcels were sent across

the planet - to 185 different countries to be

precise. And over 25 % of sales were made

using a mobile device – a mind-boggling

amount.

Fulfillment by Amazon is a real success, the

retailer has announced - the solution which

enables companies to use Amazon to sell their

products. There are currently 2 million sellers

across the world, accounting for 40% of unit

sales on Amazon. In other words, as a

Marketplace, Amazon is becoming a key global

solution.

(Source: actualitte.com)

Wall Street: Alibaba is filling up its cave

With 25 billion dollars, the Chinese on-line

retail giant is beating the fundraising record.

D-Day for the Chinese on-line retail giant

Alibaba and its charismatic founder Jack Ma.

The biggest stock market transaction in

history has taken place in New York.

The figures soon make your head spin.

Its marketplace is a mix between Amazon and

eBay, with Paypal for its payment system, and a

final touch of Google for its merchant search

engine. This ecosystem, one of its kind,

generates annual sales which exceed Greece's

GDP. That then is the infinitely great mammoth

company worth 168 billion dollars, just fifteen

years after it was created in Hangzhou in 1999.

(Source: liberation.fr)

The ogre Rakuten takes its slice of the American cake

The Japanese owner of PriceMinister has just

acquired the cash back shopping engine Ebates

for 1 billion dollars. This has shaken up the on-

line sales sector. Rakuten is seeking to bring its

international sales up to 50% as opposed to

its current 6%.

"We are going to enter the foreign markets with

Ebates, which has set up a partnership with

shops in a wide range of fields, all under our

umbrella," said Mikitani after the acquisition.

(Source: tech24.fr)

The new French retail chain deal

Carrefour has concluded a long-term

agreement with Cora/Supermarchés

Match with joint purchasing in mind from 1st

January 2015, each of the chains

nevertheless retaining its independence.

This partnership focuses on the purchase of

domestic and international brands, in both

the food and non-food segments.

This agreement does not involve their own

labels, SME products or fresh farm

produce.

(Source: retaildetail.be)

The effects of the price war between

retailers is felt beyond borders:

the French Auchan and the German

Metro announced their partnership for

purchasing foreign products.

The first object of the agreement, as of

November: joint negotiations for the

purchasing of foreign brands.

The idea? To place themselves in a

position of strength by pooling their

resources "in Hong Kong and Shanghai",

to deal with suppliers "situated in Asia" as

well as in Eastern Europe.

(Source: latribune.f)

The price war is blowing up the retail

landscape.

Système U and Auchan have

announced the teaming up of their

respective purchasing groups.

Together the cooperative group and

the family business will create the

French leader with 21.5% of the

market share as opposed to 21% for

Carrefour and 20% for Leclerc, while

Casino and Intermarché risk falling

behind.

(Source: challenges.fr)

Ikea and Marriott join forces to create a new hotel chain

Last year, Ikea announced its intention of

launching a budget hotel chain in Europe.

The brand has just found a partner for this

project. It is the Marriott Group, which sees this

as a way of diversifying, Marriott specialising in

luxury hotels.

Under the brand name Moxy Hotels, the two

partners plan to eventually open 150 hotels in

the major European cities.

The first hotel is expected to open next year in

Milan.

(Source: lemonde.fr)

Gap multiplies its international partnerships

Gap has become partners with JD, a local e-

commerce partner in China.

The American group Gap, the second largest

fashion retailer in the world, is strengthening its

presence in Asia with electronic commerce. The

company has signed a partnership agreement

with the Chinese e-commerce giant

JD to open a store within its platform.

(Source: fashionunited.fr)

Gap and Zalando announce online

pan-European partnership.

Gap brand and Zalando, Europe’s largest

online fashion web site, have announced a

partnership that will see Gap open its own

dedicated online shop within Zalando.

“This partnership represents Gap’s first

foray into multi-brand retailing in Europe.

Also for the first time, Gap’s collections will

be styled alongside other brands available

on Zalando, providing customers with new

looks to combine American and European

casual style”.

(Source : marketwatch.com)

.

Costco to launch online China

store with Alibaba

Costco Wholesale Corp. will enter China for the

first time through the opening of an online

flagship store on Alibaba Group’s Tmall Global

platform.

Tmall Global allows overseas brands and

retailers to establish presence on the Alibaba

third-party e-commerce platform Tmall.com

without the need for physical operations in

China.

Costco’s online store launch will extend its

offering to consumers in mainland China for the

first time.

(Source: chainstoreage.com)

Accor goes into partnership with Huazhu to speed up its

development in China

The French hotel group Accor has announced

that it is going to create a trading and capital-

intensive partnership with the Chinese group

Huazhu, which should allow it to gain ground in

China.

"The aim is to speed up development by

leveraging Huazhu's power, its relationships with

real-estate investors and its experience in

managing a huge hotel network in China."

(Source: lemonde.fr)

Fnac goes into partnership with Intermarché

Fnac has announced the opening of 7 stores in

France and abroad by the end of the year,

including the transformation of two "Culture and

Leisure" departments of the Intermarché chain.

This announcement is part of the "Fnac 2015"

strategic plan which aims to develop the

presence of the cultural products retail chain in

towns of fewer than 100,000 inhabitants with

store sizes between 300 m² and 1500 m².

(Source: lexpress.fr)

An African e-commerce company set to conquer new

markets

The on-line retailer Jumia, the aspiring Amazon

of the African continent financed by the German

venture capital firm Rocket Internet, is

establishing itself on three new markets -

Uganda, Ghana and Cameroon.

Jumia was launched in 2012 and is already

present in Nigeria, Morocco, the Ivory Coast,

Egypt and Kenya, offering over 100,000 items.

Launches in Cameroon and Ghana are planned

according to a company spokesperson.

Jumia, which already has over 1,500

employees, is hoping to create 100 extra jobs

with this expansion, with an initial team of 30

people in each country for customer support,

packaging, distribution and delivery.

(Source: fashionmag.com)

Carrefour and CFAO out to conquer the African consumer

The African continent is a land of opportunity for

the major foreign groups in retail and consumer

goods.

The French Carrefour has gone into

partnership with the Franco-Japanese group

CFAO to conquer the market in countries in

West and Central Africa.

The market outlook is attractive. The African

middle class is expected to increase from 370

million people to over 600 million in 2050. From

400 million in 2009, the urban population will

reach a billion in 2040. A country like Nigeria

already has 18 cities with over a million

inhabitants. According to a recent McKinsey

report, Africans might be spending over

1,000 billion dollars in consumer goods

industries in 2020.

(Source: laregionale.com)

2.

Pure players invest in traditional trading

CONVENTIONS

Pure players invest in traditional trading CONVENTIONS

The pure

players facing

the challenges

of growth

Competitive pressure is continually growing in on-line trade: there were 650,000 BtoC

shopping websites in Europe at the end of 2013 and this number is set to rise by 15 to

20% during the coming years (according to Ecommerce Europe).

The challenges facing the pure players to keep up and expand are many. A large

number of e-traders are developing multichannel-retailing in the opposite

direction and investing in traditional trading conventions.

Emerging

offline to drive

online sales &

engagement

Embodying the brand, acquiring new customers, creating a bond and engaging

consumers, standing out and increasing brand preference, the 2014 trend

shows us the players' capacity to leverage the traditional trading conventions

at all contact points in the customer journey:

> Physical sales in concept stores, and mobile sales via distributors

> Sales promotions and recruitment via street marketing campaigns

> Preparation for purchasing with printed catalogues

> Customer loyalty and experience renewed via technological devices (NFC, screens,

iBeacon…) or product concepts and innovative services.

Birchbox Soho uses machine learning

to bring the popular subscription service

While e-commerce has become a staple of the

modern retail experience, for many shoppers it

can’t replace the tactile experience of testing

products before a purchase.

New York-based Internet startup Birchbox

aimed to change this in 2010 by creating a

strategy for tapping into the persistently offline

beauty market, selling customized subscription

boxes filled with full-sized product samples,

which subscribers can then buy from their online

store

(Source: psfk.com)

Promovacances, from the Net to a physical agency

Launched on the Net in 1998, Promovacances

is an on-line travel agency and has been a brand

of the Karavel Group since 2001.

Promovacances has relied on a multichannel

development strategy and from 2005, began to

open physical agencies, in order to better meet

its customers' needs in terms of advice.

Today there are around forty of them in

mainland France and the brand plans to expand

this network to 75 agencies by 2017.

(Source: franchise-magazine.com)

Zalando: The online shopping giant

attracts offline customers

How can you boost your organic growth in e-

commerce? That is the problem facing Zalando.

The e-commerce giant is still not profitable and is

banking on profitability coming with economies of

scale, which can only be achieved by attracting

new customers.

But customers are hard to convince, so Zalando

must reach out to them.

(Source: evigo.com)

Welcome to Miliboo, the ultra-connected store

The furniture e-retailer is opening a store in Paris

which explores both the shopping experience

of the future and the future of furniture itself.

"Internet users regularly ask us where they can

see our furniture," the manager explains.

So we thought of the best way of complementing

our on-line presence, by providing 'something

more' so that people come and see us in store."

That something is a 600m² highly-connected

store.

(Source: journaldunet.com)

Spartoo opens its first store and launches

3 own brands in 2015

The first pilot point of sale will be launched in

Grenoble in the first quarter of 2015. And will be

followed by many others.

"Each store should be profitable after a year,"

clarifies the CEO. Like many pure players,

Spartoo is looking to get closer to its customers.

"We need to bring the human touch back into

trade to generate brand preference. It's a key

loyalty driver."

It plans to open outside the European area.

International trade already accounts for over

50% of the total turnover, estimated at 130

million Euros in 2013.

(Source: ecommercemag.fr)

ASOS invents the fitting room

… in the street

ASOS, the English on-line shopping site, is

incorporating the concept of automated parcel

distribution and adding on a fitting room.

This innovation would allow on-line retailers to

cut their product returns costs which drain their

accounts.

This new concept is a fitting room in a public

place which receives the parcel ordered by the

customer, enabling him or her to try on the

clothes and send them back straight away if they

are not suitable.

(Source: lefigaro.fr)

Amazon shifts to paper

The e-commerce champion has just published

a leaflet for the festive period, distributed all

over Europe.

There are 12 paper pages featuring around sixty

toys for Christmas (without any prices since

Amazon adapts them according to the

competition).Since 15 November, the e-commerce giant has

been sending

its European customers who shop in Amazon's

Toys, Children & Baby stores this "selection" of

toys in their letterbox. And when this on-line

sales icon is asked why it has decided to

produce a selection on paper, it replies that "it is

in Amazon's DNA to always try out new

solutions, new things and new techniques for

customers."

(Source: graphiline.com)

Yihaodian, the 3rd on-line distributor in China,

adopts the paper catalogue

Yihodian, the 3rd on-line distributor in China also

owned by Wal-Mart (51% since 2012), is adopting

traditional trading conventions to create traffic on

its website.

The 12-page catalogue is being distributed in high

footfall areas such as the Shanghai underground.

(Source: Altavia Group)

The Teleshopping paper catalogue, a factor in sales

development

Going against the tide of a large proportion of

distance sellers, Teleshopping, the leading

French telesales company and 100% subsidiary

of TF1, is demonstrating that its paper catalogue

is a factor in sales development.

Teleshopping relies on 4 product distribution

channels.

The television, which introduces almost 300

products per year, the stores, the websites and

the paper catalogue, with 6 million sent

annually.

The catalogue, which presents a much wider

range of products than the television, is a key

feature of our customer loyalty strategy

alongside our loyalty cards and our digital

levers.

(Source: complex-systems.fr )

Airbnb to launch

glossy magazine

Airbnb is moving beyond its internet roots into

the world of publishing with the launch of a

glossy quarterly magazine.

The apartment rental website – which sparked a

social media storm earlier this year when its new

logo was compared to genitalia – is launching

the first edition of the magazine this week. The

128-page magazine, called Pineapple, is a

glossy coffee table production of the same ilk as

i-D or Wonderland.

The magazine promises to take a “new and

inspiring look at travel through the lens of the

Airbnb community”.

(Source: theguardian.com )

3.

PHYSICAL formats are reinvented

PHYSICAL formats are reinvented

Brick & mortar

chains reinvent

their stores

90 to 94% of total trade in America is still conducted in stores (according to eMarketer

and Forrester). The development of the multichannel is forcing retailers to reinvent

their physical concepts. The in-store customer experience has become a genuine

mantra and there are multiple proposals. Customer focus and "customer-centric"

strategies are being renewed to appeal more to customers.

Trading methods

are merging

The antagonism between digital and physical is no longer an issue. The synergies

between the Brick & Click are well-known. "When Fnac sets up a store in a place

where it wasn't present, its website sales jump from 15% to 20% in the region (source

Le Monde). Digital technology is now used in-store to get to know customers better and

help them in their choices.

Trade must now use all retail channels together - it is an obligation driven by consumer

needs.

Creativity and

disruption in the

new proximity

formats

Proximity formats are highly coveted.

The major retailers' latest weapon is fresh produce in the food sector.

New entrants are innovating through the offer or the mobile formats.

Intermarché unveils its new hypermarket concept

Intermarché's new showcase store is in… Gironde,

where the chain's new hypermarket concept

measuring over 6 000 m² has been unveiled. It is

very brightly-lit, with a whole section of the store in a

bow window.

First surprise: the fresh produce area, which starts

with a spectacular delicatessen, stands out very

clearly.

Its positioning is very clearly more premium, with

a really wide variety of choices.

The non-food departments have not been left out,

particularly the multimedia department located at the

store entrance, where you can handle the products

at your leisure.

In the clothing department, a lot of work has been

done too on presentation, with eye-catching red

podiums and dark display units.

(Source: zepros.fr)

Benetton undergoes its revolution

The Italian clothing group has revealed a new

store concept in Milan, radically changing its

market approach.

"In 2012, and especially in 2013, we embarked

on a new path by rethinking our business along

the lines of a break, a renewal, yet without

forgetting our history. The revamped flagship is

radically different compared to traditional

Benetton stores.

The products are no longer set out according to

different types, but organised by style and

theme, and follow on from each other along a

smooth and varied path composed of small

sections gathered together. Each one is

characterised by a theme and precise set of

colours, offering a total look and different

possible combinations, together with

accessories.

(Source: fashionmag.com )

Nespresso Cube: Nespresso's new high-tech store

3 metres by 3 metres. Size-wise, the new

Nespresso store at the BHV Marais, is not very

impressive.

Its interest lies elsewhere: fully automated, it is

the first store of its type in France. Reserved

exclusively for Nespresso Club members.

Fully automated, this store is designed as the

fulfilment of a "promise" that Nespresso

represents in the eyes of its consumers. A

vision of customer relations which has

constantly guided its development strategy since

its beginnings in France 23 years ago.

(Source: relationclientmag.fr )

Gémo: A new connected store concept

After the recent opening of its new Follow

Me format, Gémo is continuing on its path of

modernising its image by unveiling, on 31st

October, a new connected store concept.The chain is offering a fashionable layout of

collections in this new "connected" format,

with low furniture, flattering lighting and in

particular a large number of digital screens

like the Mobile Mirror and the Shoe Mirror,

which are being trialled here before being

rolled out in the future new Gémo formats.

(Source: fr.fashionmag.com)

Walmart opens first

Walmart to Go convenience store

After more than a year of planning, the Walmart

to Go convenience-store format quietly

opened in Bentonville on Saturday (March 15),

with the grand opening set for March 19.

The small store is a hybrid format — part

traditional convenience store, part grocery, part

quick serve restaurant. Walmart partnered with

Bentonville Butcher & Deli, one of the more

popular names around in terms of quality meat,

to operate a quick serve meat counter in the

back of the store.

(Source: thecitywire.com )

Waitrose develops new store format

to meet future shopping needs

Shoppers can now try on their click and collect

orders, learn cooking skills and use tablet

computers to place online orders in Waitrose’s

latest new format store.

Mark Price, managing director of Waitrose,

says the new Food & Home format represents

the supermarket’s strategic response to the way

food retailing is changing.

“Food retail is undergoing huge structural

change – driven by lifestyle changes and an

increased use of technology”, said Price. “It is

essential that our shops are at the forefront of

our strategic response to these changes,

preparing us for the future of retail and retaining

our leadership in innovation and customer

service in the grocery sector.”

(Source: internetretailing.net)

Colruyt Group tests a brand new concept: Cru

Colruyt Group is testing a new concept,

named Cru.

The concept caters for "those who love to eat

well and who are in search of pure flavours and

authentic products."

Cru intends to recreate a real market

atmosphere at a permanent site. Customers will

find a selection of fresh produce as well as

bread baked on-site.

The aim is for the concept to evolve gradually.

The first Cru in Overijse will build its own identity

with its partners, customers and employees and

will endeavour to root itself in the region's

culture and specific customs. Each new point of

sale will therefore bring its own touch according

to the region it is in.

(Source: retaildetail.be)

A new proximity concept to be seen at Tesco

Tesco unveiled a new and original small urban

proximity concept on Wednesday 3 September.

Situated in the heart of the City of London,

the Philpot Lane Tesco Express is smaller than

the chain's average store at just 100 m².

To save space, the congestion caused by self-

service checkouts has been reduced to a

minimum. The checkouts are lined up against a

wall.

Also inside the sales area is a counter serving

food to go, operated by a partner chain: Fred’s

Food Construction. It also delivers to the offices

in the vicinity.

(Source: lineaires.com )

Daily Wagon:

Leading food truck brand

Mobile catering is now structured as a format.

Daily Wagon is the leading mobile catering

chain in France.

One of the original features of the concept is

offering a different type of cuisine per truck: So

British, Burger, Vegetarian and soon “Chtis” or

Corsican.

We have a dual development strategy. We are

aiming for both recurring locations like offices

and private or public events like fairs and

exhibitions."

(Source: e-marketing.fr)

Day by Day:

A new bulk grocery chain

Day by Day has just opened its third store in the

Paris region.

This new package-free grocery concept is a

franchise system for expansion.

The chain already has a genuine bright and

colourful concept defined in its three shops. With

an assortment which does not include fresh

produce, Day by Day is only designed for staple

purchases, but simplifies point of sale

management considerably.

(Source: lineaires.com)

Birchbox installs vending machines

in the Gare Montparnasse

For five months, Birchbox has had a cosmetics

vending machine, Birchbox On the Go, in the

centre of Paris' Montparnasse train station.

The machine has a selection of beauty products

in packs of two miniatures. Each pack is

designed to be used immediately (unexpected

weekend away, evening spent with friends, etc.)

with the aim of developing a new purchase

channel and discovering beauty products.

"The train station is a place where you pass

through, wait, meet people and set off on long

and short journeys. More practical and simpler,

beauty according to Birchbox now comes in

packs which you slip into your handbag before

catching your train."

(Source: premiumbeautynews.com)

4.SMART objects for a new

customer experience

SMART objects for a new customer experience

Smart objects are

becoming

increasingly

accessible

According to the European Commission, a European had on average 2 smart

objects in 2012 and will have 7 in 2015 for a global turnover of 400 million Euros.

Of the 3,200 exhibitors at the Las Vegas Consumer Electronics Show in January

2015, over 70% are presenting a smart object, tracker, sensor, smart home

equipment, etc.

Retail combines

smart objects in

every imaginable

way for the

customer

experience

It is a genuine revolution and Retail has integrated its many challenges, such as

establishing itself in a highly promising market, distinguishing itself through

innovation, building its brand image and collecting data on customer behaviour.

The scope of smart objects is huge - they can support the consumer through

his entire journey, from the shopping list to in-store advice, sales promotion and

after-sales service.

The emerging new

channel for

information and

customer relations

By building up precise customer data, smart objects bring unprecedented added

value. The analysis of this data gives retailers the opportunity to fine-tune

themselves to their customers and offer them new services.

A new channel for consumer/retailer interaction (after-sales service,

logistics, marketing, etc.) is emerging.

The American hardware store OSH hires a sales-robot

At San José, in the United States, a new type of

salesman has made his appearance in the OSH

hardware store.

Customers are now greeted and given

information by a human-sized robot which can

speak.

The robot, christened OSHbot and developed by

American company Fellow Robots, has actually

been helping the store's employees since the

beginning of November 2014.

(Source: chefdentreprise.com)

Drones put on a fashion show for "Black Friday"

Brazil, the Sao Paulo business district - the place

where men's clothing retailer Camisaria Colombo

flew these model-drones to announce Black

Friday 2014.

The drones were dressed in sale outfits and

stopped to greet potential customers working in

the offices.

(Source: golem13)

With Apple's iBeacon technology, Macy’s tries out

ultra-targeted ads at the point of sale

Consumers who visit Macy's department stores

are actually the first to try out a new mobile

application on Apple, which enables the

advertiser to send them ultra-targeted messages

according to their behaviour on-site and what is

known about their purchasing preferences.

The terminals currently installed in two Macy's

stores (New York and San Francisco) are able to

send signals to customers in the department

nearby. They will receive promotional messages

in relation to the departments and floors where

the iPhone users are.

(Source: ad-exchange.fr)

7-Eleven taps beacons

to chase runners into stores

Convenience store retailer 7-Eleven is working

with Japanese soft drink manufacturer Pocari

Sweat on a beacon campaign in Singapore that

tracks runners’ progress and offers rewards

when they pass one of the chain’s locations.

The retailer’s stores will be marked in the app

as hydration points, where runners can

purchase Pocari Sweat.

When users pass by a store, complete a running

course, or make a Pocari Sweat purchase, they

will receive participation points.

(Source: mobilecommercedaily.com)

Darty creates a department for the "smart home"

Darty is approaching the smart home at full tilt

and already has a lot to say on the subject.

Particularly as winter approaches with the first

smart heating management devices.

And to persuade its customers of the value and

usefulness of these smart products, the brand

has even created a "smart home"

department split into three distinct areas:

Electricity (lighting, saving energy, smart plugs),

Security (alarms, detection, protection, video-

surveillance) and Comfort (heating).

(Source: itrnews.com)

Waitrose cooperating with Hiku

to introduce smart shopping solutions

British supermarket chain Waitrose has started

cooperating with U.S. startup company called

Hiku.

The innovative technology startup has created a

smart-shopping device that can change the way

we buy groceries online as well as how we create

our grocery shopping list.

The Hiku devices let users create a smart list of

groceries to buy online.

(Source: evigo.com)

Nestlé "recruits" a thousand Pepper robots in Japan

Capable of engaging in conversation with

customers, these robots will be deployed in

superstores and specialist stores where

Nespresso coffee machines and sachets are

sold.

A thousand robots will be attempting to beat

human salespeoples' sales targets for

Nespresso coffee machines and sachets.

They will be deployed in superstores and

specialist stores from December… in Japan, the

most robot friendly country on the planet.

(Source: lefigaro.fr)

With the Button, Darty's trust agreement

enters the era of smart objects

On Thursday 5th of June, the company

presented a Made in France smart object

which enables it to easily keep in touch with its

customers: the Button. By simply pressing the

device, its users will be called back by an advisor

able to answer their questions.

"With the Button, the consumer has permanent

access to the equivalent of a concierge service

which identifies someone in-house who is

qualified to answer the question asked."

(Source: usine-digitale.fr)

5.The triumphant MOBILE, at the heart of

customer relations

The triumphant MOBILE, at the heart of customer relations

Anglo-saxon

retailers on the

mobile front

Consumer mobile usage is exploding: 3.6 billion people own a mobile (+5% vs

2013), and payments on mobiles account for 20% of global transactions in 2014

(+66%). As regards Retail, m-commerce (mobile & tablet) has become a key

sales channel.

Anglo-saxon distributors are leading the market as regards mobile

investment and strategy, and their strategic vision is producing real

trading results. French brands are lagging behind, remaining tactical and

shallow in their application approach and favouring responsive design for their

websites.

Service features

which rely on

multichannel

platforms

Loyalty programmes, sales promotions, payment - multichannel services are

central to a satisfactory and repeated customer experience.

Mobile payment is a strong trend which few have yet to integrate successfully.

The Starbucks application is one of the most used apps in the USA, with 5

million payments made each week.

There is great consumer demand for these services which are the fruit of large

investments in multichannel applications and databases, and in-store Wi-Fi.

Zappos tests a

Digital Personal Assistant

Online retailer Zappos has unveiled a new

service that aims to help shoppers find specific

products by taking item requests in the form of

images.

The new service, aptly called Ask Zappos, is like

a digital personal assistant who will help

customers track down specific items even if the

retailer doesn’t have the items in their online

store.

(Source: psfk.com)

Neiman Marcus makes it easier for

mobile shoppers to buy items

Neiman Marcus went omni-channel a few

months ago, merging its online and offline

shopping divisions for a seamless experience,

and now it added search technology to its

mobile app. Shoppers can take photos and find

similar items from Neiman Marcus with a single

click.

The retailer also added a new feature to its e-

commerce site, MyNM, showing shoppers what

changed since their last visit to the site, what the

current trends are and what is being pinned

most on Pinterest at the moment. MyNM works

like a sales associate would, replicating the

instore experience online. The feature is not yet

mobile. Customers find MyNM helpful during

their shopping trip to neimanmarcus.com.

(Source: internetretailer.com)

Fnac makes its new app a bridge

between the Web and stores

The chain's new mobile app is packed full of

features for

m-commerce and cross-channel

use.

The app stands apart, primarily through its

simple, intuitive use, and also through the

strong relational aspect and the concern for

customising the experience which governed its

design.

"The database on which it is based is

multichannel, the result of the integration of all

our data bases three years ago," explains Katia

Hersard.

(Source: journaldunet.com)

Tablets for boosting customer experience

in Buffalo Wings restaurants

The Buffalo Wild Wings restaurant chain is

going to install tablets in all the tables in its

restaurants.

Objectives:

Attract more customers: tablets provide an

opportunity to improve customer retention during

quiet periods.

Increase loyalty: tablets offer games for all

customers to enjoy.

Increase the turnover: more customers, more

retention, more loyalty…

tablets let you order, play and pay.

(Source: siecledigital.f )

Walmart builds an in-store mobile experience

What is unique about Wal-Mart's position on the

subject is that there is a strong mobile

component based on an application considered

to be an important strategy for innovating the in-

store experience.

Their long-term vision is to use technology to

improve the in-store experience. The mobile is a

key element in helping customers have a better

in-store experience.

(Source: servicesmobiles.fr)

Macy’s:

Mobile Retailer of the Year 2014

The Macy’s department store chain has

received the highest distinction which each year

honours a retailer in the United States for its

strategic vision in Mobile Marketing.

But it isn't just Macy's progress with the only

Mobile channel which is being celebrated here.

While the retail sector as a whole is seeing a

drop in store traffic, this title pays tribute to the

energy, work and investment deployed by

Macy's to inject mobile technology into the

whole shopping experience. The target: the

growing number of consumers who come into a

Macy’s with a smartphone in their hand.

(Source: mobilecommercedaily.com)

Starbucks France launches a mobile payment

and rewards app

The American brand is rolling out its mobile

application, combining payment and a loyalty

programme, in France and Germany.

It enables customers to save time at the till and

Starbucks to get to know them better to

eventually customise its products.

“The payment and loyalty card, My Starbucks

Rewards, which we rolled out last June, has

met with some success: 35,000 people have

created their loyalty account on-line.

That is why we are launching the mobile app,

which is simpler, more fun and includes other

features.

It is used by customers who want to pay quickly:

28 % of them opt to pay by card in Starbucks

cafés.”

(Source: relationclientmag.fr)

ASOS supports US expansion with

new commerce-enabled app

British online retailer ASOS is making a harder

push into the United States market with a new

application that lets consumers shop and

access additional brand content.

The app includes many of the basic features

that have become table stakes for retailers,

such as cross-device log-ins and shopping cart

editing features. “The rapid increase in mobile

traffic means it’s important for brands to

keep investing in and evolving their mobile

offering”.

“We wanted to make the app reflective of our

Web experience which offers a wide range of

features, such as runway videos, to give

shoppers as much insight into our products as

possible before making a purchase”.

(Source: mobilecommercedaily.com )

Sainsbury’s wants to link the on-line and in-store

experience more closely

The British retailer is currently trying out a new

mobile app which will facilitate the link

between on-line purchasing and store visits.

This app will allow Sainsbury's customers to fill

their basket via their smartphone at home or on

the move, by scanning the barcodes of the

products they want or by selecting them on-site.

Once in-store, the app guides them through the

departments so they can find their products

more easily and simply scan the label. Once the

trolley is full, they just have to pay using the

mobile. The management maintains that, thanks

to this app, check-out has been reduced to

under a minute.

(Source: internetretailing.net)

Kohl’s leverages mobile loyalty program

to drive customer engagement

Kohl’s is leveraging its new loyalty program,

optimized for mobile and Web, in a bid to

continue driving customer engagement and

build deeper relationships with consumers.

The Yes2You rewards program will offer earning

points for every purchase made at Kohls.com or

in-store, and will serve as a two-way dialogue to

help deliver meaningful experiences, according

to the retailer.

“Loyalty programs serve two major functions: to

enable the collection of critical consumer

contact and purchase history data and to

encourage consumers to give that brand a little

bit bigger share of their wallet over a longer

period of time.”

(Source: mobilecommercedaily.com)

How does Dunkin’ Donuts fill its restaurants on Mondays?

Dunkin’ Donuts launched a new mobile app in

2012. A real success, as to date it has been

downloaded 8.6 million times.

"The speed with which our customers have

adopted our mobile app represents unique

opportunities for the brand, such as soon being

able to order and pay from your mobile, or as of

now conducting one-to-one promotions."

Last year, Dunkin’ Donuts offered the inhabitants

of Philadelphia the following deal: if the local team

- the Eagles - won the match the previous

evening, each customer presenting his “free

coffee coupon” on his mobile app would receive a

free coffee the next day.

"It creates traffic on a Monday, which is

traditionally a quiet day in our restaurants. And it

increases the adoption of the mobile app by our

customers."

(Source: customer-insight-consulting)

Lacoste boosts in-store shopping experience

with AR app for new trainer range

French clothing company Lacoste is the latest

brand to bring digital into its bricks and mortar

stores with the launch of a new 3D augmented

reality (AR) app that lets consumers try on its

new range of LCST trainers.

In what the brand is claiming as ‘the first’ AR

experience to combine 3D product scanning,

the mobile app is designed to use in-store POS

to trigger interactive 3D product models of the

new range. To use the app, shoppers must place

their foot on the in-store floor graphic and scan it

with a smartphone to view the trainers

superimposed around their foot.

(Source: thedrum.com)

6.PERSONALISATION, between

customer service and big data

PERSONALISATION, between customer service

and big data

Product

personalisation

Like luxury brands, commodities (fizzy drinks, trainers, confectionery, etc.)

are becoming available in custom-made versions to create emotional brand

attachment.

The consumer succumbs through a need to be different and to belong. He wants

to be unique. Personalisation produced by "co-design" pushes the experience up a

notch. The consumer is a player, adding his own personal touch to the product as

he wishes.

Personalisation of

marketing

activation

Point of sale digitalisation (tablets, iBeacons, etc.) gives retailers the

opportunity to individualise and personalise customer relationships.

Offering personalised offers on smartphones according to customers' buying

habits, and/or making customer purchase histories available to salespeople,

enables a buying situation which is generally anonymous in-store to be

personalised.

Personalisation of

the relationship

The challenge for the brands is to obtain a 360° view of the customer: getting to

know their target better in order to build a long-lasting, personalised relationship

with him/her, using all of this data in the various channels of communication,

sending the right messages at the right time and on the right channel/device, etc.

The Big Data challenge becomes above all a Small Data challenge: being

able to draw from it good insights into consumers for value-added actions

and services.

Le Coq Sportif duplicates its customised clothing service

Flocking was used on the French brand's very

first sports jerseys and is an integral part of Le

Coq Sportif's identity and know-how.

The brand is offering its customers the chance to

see the flocking method step by step on-line. The

French artist Tyrsa has been commissioned for

the occasion to create graphics showcasing the

sports for which the brand has become famous

throughout its history - cycling, tennis and

football.

(Source: fashionunited.fr)

In New York, the United Nude brand prints your custom-

made shoes

United Nude has a 3D printer in its NoHo store

which you can use to design your shoes and

print them.

The shoes are tailor-made.

In the style capital, competition is fierce. Faced

with the Big Apple's great iconic shoe designers,

brands are playing the innovation card to stand

out.

(Source: ideeslocales.fr)

Who A U: An American brand which rides on

personalisation

WhoWho A U ( Who are you ! ) is a Californian

casual-wear brand.

Situated in the heart of Soho, its New York

flagship store is offering a unique "patch it" retail

concept.

The brand offers a personalisation concept on

every one of its products. It has a wide range of

top-quality badges which allow you to express

your personality on your clothes.

They allow your imagination to run wild to turn

your clothes into unique objects.

The product therefore reflects who I am

(resulting in the Who are you concept…).

(Source: nouveaux-concepts.com)

Longchamp installs tablets in-store

for customising its bags

To celebrate the twentieth anniversary of its

iconic Le Pliage handbag, Longchamp has

decided to innovate by enabling its customers

to customise their model using a tablet directly

in points of sale.

With this new service, the brand is giving

customers the opportunity to choose their model

in real time using a tablet. The order is then

placed and charged directly at the point of sale.

The Le Pliage handbag will be available at the

retail outlet or sent a few weeks later.

(Source: internetretailing.net)

Louis Vuitton unveils its new store which focuses on the

bespoke and personalisation

The bland and impersonal in-store experience is

no more: the luxury sector is in a way returning

to its roots and now considering ways to inject a

lifestyle, which may in some cases become a

genuine creative process, in the act of

purchasing.

But the change is really making itself felt in the

way the company is really highlighting the

personalisation and bespoke manufacturing

services it is offering. In this spirit, the Haute

Maroquinerie salon, devoted to customised

handbags, is offering a huge range of shapes,

materials, colours, linings and finishes - initials

and hand-painted motifs are available on trunks

and metal stamping is available for certain

leather or canvas items and accessories.

(Source: fashionunited.fr)

Les Galeries Lafayette wish to offer their customers a

more personalised service

Les Galeries Lafayette are now offering their

customers a more relevant and personalised

shopping experience through all sales channels.

Les Galeries Lafayette will be able to draw on

data in real time to suggest suitable

recommendations to every buyer and help them

find what they need quickly and easily when

they are shopping on the brand's website.

The use of recommendations should allow Les

Galeries Lafayette to take their first steps

towards cross-channel personalisation.

Les Galeries Lafayette will operate the solution

to help the consumer go up-market in his

purchases (up-sell) and to recommend to him

complementary products (cross-selling).

(Source: internetretailing.net )

BrandAlley concentrates its marketing initiatives around

personalisation

With 4.5 million unique visitors per month and 7

million members, BrandAlley appears in the top

20 retail websites.

BrandAlley has restructured its databases in

order to make use of all the data, centralise it

and perfect one-to-one marketing initiatives,

and above all optimise the e-mail

implementation process.

For a good number of retailers, e-mailing

remains the most effective channel at 95%, as

the opening rate of e-mails sent, the rate of

clicks and subscription cancellations help to

calculate the ROI of the campaigns. In fact, the

technological solution will deliver contextualised

messages or set up personalised scenarios for

each customer through all channels.

(Source: marketingperformer.fr)

House of Fraser:

iBeacon mannequins to mobilize in-store shopping

Retailers are looking for ways to lure their

customers to store instead of just to their online

or mobile site with hands-on technology that

works only in the real world, not the virtual world.

House of Fraser is testing beacon-enabled

mannequins from Iconeme to mobilize the

instore shopping experience.

Beacon technology uses low-energy bluetooth to

communicate with users’ phones, resembling wi-

fi a bit. Each mannequin can be programmed

differently to send out different information to

users.

(Source: evigo.com)

Thank you.

Thierry Strickler: t.strickler@altavia-group.com

Youmna Ovazza: y.ovazza@altavia-group.com

Sarah Gaïsset: s.gaisset@altavia-group.com