ecommerce & client services€¦ · stock optimization ship from store carrier management...

ECOMMERCE & CLIENT SERVICES

SUMMARY

2

1. A STRATEGIC DECISION

2. REINTEGRATING ECOMMERCE WHILE

SETTING UP THE OMNICHANNEL

FOUNDATIONS

3. CLIENT SERVICES


IN 2012 WE CREATED A JOINT VENTURE WITH A WORLDWIDE PUREPLAYER

TO ACCELERATE OUR ECOMMERCE…

3

TECHNOLOGY

Back-end info-structure

Front-end development

Omnichannel services

LOGISTICS

In-bound & Out-bound

Packaging

INVOICING

Acquiring & Fraud

ROADMAP

MANAGEMENT

BUSINESS

INTELLIGENCE

USER

EXPERIENCE

MERCHANDISINGCOMMUNICATIONS

& MARKETINGCREATIVE DESIGN

… ACHIEVING GREAT RESULTS


…. AND NOW WE ARE EVOLVING FROM MULTICHANNEL TO OMNICHANNEL

EXPERIENCE

4

• Customers see multiple touch-points act independently

• Each channel is operated in a silo

• Customers experience a brand and not a channel

within a brand

• Brands leverage their “single view of the customer”

in a coordinated and strategic way

OMNICHANNEL

CLIENT

MULTI-

CHANNEL

ONLINE

STOREMARKET

PLACE

STORE

CLIENT

SERVICES

SOCIAL

MULTICHANNEL OMNICHANNEL


SUMMARY

5


2. REINTEGRATING ECOMMERCE WHILE


FOUNDATIONS

3. CLIENT SERVICES


72COUNTRIES

> 300STAKEHOLDERS

70EXPERTS

5BRANDS

A HIGHLY COMPLEX PROGRAM…

6

33EU

14APAC

19ROW

6AMER


… INCLUDING SETTING UP NEW SYSTEMS, PROCESSES AND TEAMS…

7

B2C &

OMNICHANNEL

OPERATIONS

ECOMMERCE

PLATFORM

INVOICING CHANGE CHINA

Central & local

warehouses

BtoC fulfilment

Stock optimization

Ship from store

Carrier management

Real-time integration

Customer 360° view

Ecommerce Platform

Order Management

System

New product referential

Digital asset

management

Secured payment

Tax management

Fraud management

Legal Compliance

Target organization

Impact analysis

Stakeholder

management

Communications

Training

Local Ecommerce

platforms

Local invoicing

processes

Local operations

1 2 3 4 5


… TO PROPOSE AN ENHANCED EXPERIENCE TO OUR CUSTOMERS VIA…

8

ORDER

IN STORE

CLIENT

SERVICES .COM WEBSITES

One omnichannel

account per customer

allowing a 360° data viewStore

Client

Services

Online store

Ship from store

DC fulfilment

Pickup

(DC inventory)

Pickup

(Store inventory)

Global DC

Inventory

Shops

Future

inventory

(pre-order) Local

DC

Local

DC

CONSISTENCY ACROSS CHANNELSFULL DATA INTEGRATION

BETWEEN ONLINE & OFFLINE

1 2

ACCESSING A WIDER

INVENTORY & ASSORTMENT

3

MORE DELIVERY SERVICES

4


9

LOCAL DISTRIBUTION CENTERSFulfil only to the country they are based in

GLOBAL DISTRIBUTION CENTERGlobal reach

…. LEVERAGING KERING DISTRIBUTION CENTERS AND STORE NETWORK…


Marketplaces

Social commerce

CHINA:

A DIFFERENT ECOSYSTEM REQUIRING DIFFERENT SOLUTIONS…

10

Local inventory

Local carriers to cover all tier cities

High service level expectations

LOCAL OPERATIONS

Social login:

integration to local solutions

Personal data:

must be stored in China (Cybersecurity law)

Product content

PLATFORM SPECIFICITIES

DISTRIBUTION LANDSCAPE

Specific payment methods

Invoicing

VAT Fapiao, VAT special Fapiao, e-Fapiao…

INVOICING/PAYMENT OPTIONS


….RESULTING IN PARTNERING WITH LOCAL SPECIALISTS

AND BUILDING A LOCAL TEAM OF EXPERTS

11

LOCAL

PAYMENT METHODS

& INVOICING

PROCESSES

LOCAL TEAM

OF EXPERTS

LOCAL

PLATFORM

HOSTED IN CHINA

INTEGRATED TO

MARKETPLACES

LOCAL INVENTORY

AND DISTRIBUTION

CENTER IN SHANGHAI

LOCAL

CARRIERS


ECOMMERCE INTERNALIZATION TIMELINE

12

2019 20202018

BRANDS GO-LIVES

OCT NOV Q2 Q3


Q1

Roadmap

Iterative implementation

Global designTest, Migration

& TrainingRollout

& Hypercare

OMNICHANNEL BOOSTING ECOMMERCE REVENUE

• Ship from store (larger assortment and faster delivery)

• Improving depth and breadth of assortments available for sale

• Inventory optimization to reduce shortages (inventory transfer, quicker replenishments etc.)

• Remote sales from stores and Client services order from ecommerce inventories

• Fraud and payment optimization (acceptance rules + new payment methods)

DIRECT

INCREMENTAL

SALES

INDIRECT IMPACT

ON SALES

ADDITIONAL

BUSINESSES

ENABLED BY

IMPLEMENTATION

OF NEW TOOLS

• Integration within our ecosystem: customer centric approach in-house, single data lake

• Internalization of Roadmap allowing multiple enhancements and evolutions

• Unified omnichannel set-up across all brands and all CRM & communications activities

• Insourcing key ecommerce competencies

• China local business solution

• Marketplace integration facilitator

13

LEVERS


FINANCIAL IMPLICATIONS

14

NEUTRAL IMPACT ON EBIT AT GROUP LEVEL IN 2021 / ACCRETIVE TO EBIT MARGIN FROM 2022

GROUP IMPACTS

Revenue

Gross Margin

(% of revenue)

Fulfillment & Shipping costs

(% of revenue)

Marketing costs & Contact

center (% of revenue)

Direct operating expenses

(% of revenue)

Central costs (finance,

technology, digital and media)

Depreciation and amortization

(% of revenue)

EBIT (% of revenue)

NEUTRAL IN 2021

ACCRETIVE

FROM 2022

Direct Opex: Replacing variable revenue share

with lower direct costs

Central costs: Replacing independent JV

structure with dedicated Kering Omnichannel team

D&A: some depreciation vs. none in previous

situation

Revenue uplift and operating leverage will be

accretive to Group EBIT margin from 2022

Replacement of revenue share by a combination

of lower direct opex and fixed costs of dedicated

omnichannel structure


IN A NUTSHELL…

FROMUNINTEGRATED PLATFORMS

& POINTS OF CONTACTS

TOA SEAMLESS EXPERIENCE,FROM AWARENESS TO PURCHASE

OMNI-

CHANNEL

EXPERIENCE

Differences in product assortment

between online & offline

Separate stock between online & offline

Limited Multichannel services

Smaller range of order & delivery methods

Less customer data consistency

Larger product assortmentleveraging retail & online inventory

Real-time inventory view in store across all channels

Seamless integration across Web & Retail

Broader range of order, payments (e.g. Alipay)

& delivery methods

Greater item return/exchange flexibility

One global omnichannel account per customer

Enriched and customizable online experience

15

OMNICHANNEL


CLIENT

MULTI-

CHANNEL

ONLINE

STOREMARKET

PLACE

STORE

CLIENT

SERVICES

SOCIAL

CLIENT SERVICES HAVE BEEN INTEGRATED

AS THE FIRST STEP TO SUPPORT OMNICHANNEL

16

CLIENT SERVICES

OMNICHANNEL


SUMMARY


2. BRINGING BACK ECOMMERCE WHILE


FOUNDATIONS

3. CLIENT SERVICES

17ECOMMERCE & CLIENT SERVICES

CLIENTEXPERIENCE

INCREMENTALSALES

CLIENTENGAGEMENT

CLIENTQUALITATIVE

FEEDBACK

CLIENT SERVICES - A STRATEGIC MEETING POINT

18

CONTRIBUTE to the omnichannel experience

GUIDE and answer clients along their journey

ENHANCE the long-term relationship

Provide to all our customers around the world a direct

connection to Kering Houses – seamless, always

accessible and personalized

CLIENT

SERVICES

MISSION

A “CLIENT FIRST” STRATEGY


CREATING A DIGITAL RETAIL STORE

19

CLIENT BENEFIT

Retail staff stay

focused on client-

facing activities

Extend the client

experience out

of the store

Provide a 360°

client experience

across all

touchpoints


MAIN REASONS FOR CONTACT

20

40%Product enquiry

50%Purchase

10%Brand Information

ALL

CHANNELS


A CORE MODEL DEVELOPED ON A SCALABLE AND SUSTAINABLE APPROACH

21

CLOSE TO OUR

CUSTOMERS

UNIQUE

MANAGEMENT

CULTURE

BEST-IN-CLASS

TECHNOLOGY


CLOSE TO OUR CUSTOMERS

22

Live

6REGIONAL HUBS

8BRANDS

>12LANGUAGES

>300DIGITAL ADVISORS

2017 2018 2019 2020

EUROPE AMERICAS APAC KOREA JAPANMAINLAND

CHINA


BEST-IN-CLASS TECHNOLOGY

23

CRM

MANAGEMENT

INTELLIGENT

TELEPHONY

SYSTEM

INTELLIGENT

LIVE CHAT

360° CUSTOMER

VIEW TO ENGAGE

WITH AUTHENTICITY

LUCE & RETAIL

SYSTEMS


360° CUSTOMER VIEW

aaaa


INTELLIGENT LIVE CHAT

25

See the customer journey

See the Brand website and its activity as in a store Visualize client data


INTELLIGENT LIVE CHAT DEMO


INTELLIGENT LIVE CHAT

27

• Client recognition

• Client navigation data

• Digital retail store, act as a SA /

Proactive engagement

• Enriched KPIs

• Immersion into brand universe

• Digital tailored advice in real time

• Intimacy & proximity

• Client & website enriched insights

for all departments

• Higher opportunities to convert

• Enhanced activity tracking

KEY VALUABLE FEATURES CLIENT BENEFITS BRAND BENEFITS

ConversionService & InsightsKnowledgeVisibility

HOW IT WILL TRANSFORM THE WAY WE DO BUSINESS

• Possibility to address specific clients & trigger journey with chat

• Increase conversion

• Ensure real-time assistance wherever the client is on website

AROUND THE CORNER

• Bot, AI

• Messenger

• Conversational commerce development

• Digital in store


3MCONTACTS

96%PICK UP

RATE

8.9/10CLIENT

SATISFACTION

ADDITIONAL

SALES DRIVER

8BRANDS

4REGIONAL HUBS

OPENED SO FAR

> 300DIGITAL

ADVISORS

>12LANGUAGES

KEY ACHIEVEMENTS IN 18 MONTHS

28

DELIVERING POSITIVE PERFORMANCE ACROSS KPIS


ecommerce & client services€¦ · stock optimization ship from store carrier management...

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