INSTITUTDUCOMMERCE.ORG LA NOUVELLE PLATEFORME D’ECHANGE ET DE PROSPECTIVE I POUR ANTICIPER LES MUTATIONS

DU CONSOMMATEUR ET DU COMMERCE I NEE DE LA FUSION DES 3 ASSOCIATIONS PARITAIRES : ECR FRANCE - IFLS – IFMCopyright IDC 2017

OSA & Shrink ECR Meeting7th of February 2018

Emilie CHALVIGNACManager Projets ECR

Emilie.chalvignac@institutducommerce.org

Agenda

Institute of Commerce &

Activities

Keys figures of the French

Market

Demography

FMCG market

E-commerce

The French ECR OSA working

group

OSA evolution since 2014

(ECR-IRI barometer)

1st results of the omnichanelshopper reactions surveyregarding out-of-stocks

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Since 2017, l’Institut du Commerce manages the ECR initiative

(Efficient Consumer Response) in France.

The association supports its members (manufacturers, retailers and

service providers) to work together to better fulfill the consumers’

needs.

More precisely, it provides them with the perfect framework to build

collectively tomorrow’s businesses thanks to a better understanding of

the deep changes occurring for the shopper, the supply chain and

the retail (data, environment, technology…).

L’Institut du Commerce is born in January 2017 following

the merger of 3 associations : ECR France, IFLS et IFM.

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OUR ACTIVITIES

PROSPECTIVE WORKSHOP : decrypt trendsand weak signals

BAROMETERS : measure the consumptionevolutions and the implementation level ofthe best practices

WHITE BOOKS : synthetize a value creatingprocess detected so that is can be spreadfaster among our members

SURVEYS : evaluate how mature thecommunity is regarding a specific bestpractice

ECR WORKING GROUPS : producemethodology, tools and best practicesbetween manufacturers and retailers

STUDIES : understand the shoppers’ needson innovative thematic

BREAKFAST @ IdC (InnoLab & Expert) : aconvivial monthly rendez-vous to discoverstartups & innovations

CONFERENCES : share experiences, givevision, exchange with one’s peers

AWARDS : best industry-retail collaborations(Trophées ECR & Mètres) and rewardinnovative startups (Trophées InnoLaB)

RETAIL TOURS : live and decipher new

shopper experiences

TRAINING : assimilate best practices

Reserved to our members

THINK ANALYZE

FORMALIZE

SHARE

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The programme is built by its members All the dates

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THINK, ANALYZE & FORMALIZE

ECR WORKING GROUPS

BAROMETERS

PROSPECTIVE WORKSHOP

STUDIES

# Supply Chain 2025

# Blockchain

# Consumption needs in 2025

# Digital Supply Chain

# E-commerce

# Convenience stores

# Consumer studies and market follow-up

# Promotion et product activation

# Omnichannel Category Management

# Last mile / urban delivery

# Condition et quality of Delivery

# Tracking & IoT

# OSA

# Toys

# DIY

# Selective perfumery

# Future jobs in Retail

# OSA barometer

# Consumption barometer

# « Naturality »

# Omnichanel products availability

# Convenience 2017

# Direct to Consumer

# New payments methods (app, crypto…)

# Circular Economy

# What are the new stakes of merchandising ?

# Machine Learning & IA

# How to address the diversity of the senior population?

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O U R M E M B E R S ( D e c e m b e r 2 0 1 7 )

31 RETAILERSADEO Services, AUCHAN France, BRICO Belgium, BRICODEPOT, BUT INTERNATIONAL,CARREFOUR France, CASINO, CASTORAMA,CONFORAMA, COOP ATLANTIQUE, CORA, CULTURA, FCJPE, FRANCAP, ITM Alimentaire, ITM LEMI (Bricomarché, BricoCash, Roady),LAGARDERE TRAVEL RETAIL, MARIONNAUD PARFUMERIE, MBLOG (Mr Bricolage), METRO Cash & Carry, NATUREO, NOCIBE,PHARMACTIV / OCP, PICARD, SC GALEC, SCHIEVER, SCHMIDT GROUPE, SEPHORA, SYSTEME U, TOTAL MKG SERVICES, VENTE PRIVEE

82 MANUFACTURERSAKZO NOBEL, ANDROS, ARLA FOODS, AXIANE MEUNERIE, BACARDI, BEIERSDORF, BIC, BLEDINA, BOLTON SOLITAIRE, BONDUELLE,BONNETERRE, BPI (SHISEIDO), CANDIA, CHANEL SAS, COCA COLA European Partners, COLGATE PALMOLIVE, CRISTAL CO,CROUSTIFRANCE BENELUX, DANONE EAUX, DANONE PF, D'AUCY, DAUNAT, DELICA AG, DELIFRANCE (NUTRIXIA), ECKES GRANINI,ESTEE LAUDER, EURIAL, FERRERO France, FINDUS, FJP, FLEURY MICHON, FLORETTE, FRANCAISE DES JEUX, FROMAGERIES BEL S.A.,GIBSON, GOUTERS MAGIQUES, HANES, HARIBO, HEINEKEN ENTREPRISE, HENKEL France, INTERSNACK, JACOBS DOUWE EGBERTS,Johnson & Johnson Santé Beauté, LA FOURNEE DOREE, LABORATOIRES M&L (L'Occitane), LBD MAISON, LINDT, L'OREAL, MARIEBRIZARD WINE & SPIRITS, MARS CHOCOLAT, MARS PETCARE FOOD, MARTINIQUAISE, MATERNE, Mc CORMICK France S.A.S,MERISANT, MOET HENNESSY DIAGEO, NESTLE France S.A., ORANGE, ORANGINA SCHWEPPES France, PANZANI, PARFUMS CHRISTIANDIOR, PARMENTINE, PEPSICO, PERNOD S.A., PETIT NAVIRE (THAI UNION), PHILIPS LIGHTING, PLADIS (UNITED BISCUITS), PUIG, RAYNAL ETROQUELAURE, RIANS, RICARD, SAINT HUBERT, SAVENCIA BONGRAIN, SCA TISSUE, SODEBO, SOLINEST, SONY InteractiveEntertainment, TEISSEIRE, TEREOS, TRIBALLATNOYAL, UNIBAL, UNILEVER France

75 PARTNERSA3 DISTRIBUTION, ACO DESIGN (MANO), AGOV (LaComDigitale), AGRO DEVELOPPEMENT, AKDV, ALKEMICS, ARMADA,ATMOSPHERES, BEMYEYE, BONIAL, BUDGET BOX, CA.COM, CAMELEON GROUP, CARNET DE VOL, CATALINA, CCI PARIS IDF, CHEP,CONTAINER CENTRALEN, COSPIRIT, CPM France, DATA IMPACT, DIAMART, DIAM INTERNATIONAL, DISTRIPLUS, DS ANALYSIX, DSDISTRIBUTION NORD, EMNOS, ESSEC, EXTERNIS, FM LOGISTIC, HAVAS, HIGHCO, IER, IMPACT (IFMG), IMPP, INTERLOG SERVICES, IRI,KANTAR, KLEE COMMERCE, LA POSTE, MARKETING SCAN, MEDIA PERFORMANCES, MOBEYE, MUTUALLOGISTICS, NEFAB, NIELSEN,OKALYS, PARABELLUM, PECLERS PARIS, PICXYZ, PILOTES PLV, POOLING PARTNERS, REED MIDEM MAPIC, RETAIL AND DETAIL, SAGUEZPARTNERS, SEGMENTS, SES IMAGOTAG, SHOPPERMIND, SIMON et ASSOCIES, SIMPLIFIELD, SITOUR,, SOFRILOG, SORAP, SPI, STEF,STORETAIL MKG SERVICES, STRADA, TCC, TEEMO, TRANSALLIANCE SERVICE, TVS ETUDES, UNIBAIL RODAMCO, VIRAGE CONSEIL, WEILLROBERT PLV, XPO SUPPLY CHAIN France

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E C R m e m b e r s ’ r o a d m a pO f f e r / d e m a n d p r i o r i t i e s

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More info

6 major stakes to adapt the consumer

offer to the 2025 way of life

#1 Products and service with a positive impact

on environment and health (circular economy)

#2 Better know and take into account the future

expectations of the senior population, in all the

diversity they cover

#3 A sufficient, healthy, local and tasty food

offer (cf. increase of the population)

#4 Have direct, easy, and reliable access to the

products/services/home information (more transparency throughout the value chain)

#5 An offer adapted to the new moments of

consumption which will be offered by an

increased individual and collective multimodal

mobility and autonomous transportation

#6 Retail jobs to be reinvented : service, holograms, social link, coworking with robots…6

Circular Economy

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E C R m e m b e r s r o a d m a pS u p p l y C h a i n p r i o r i t i e s

# 1 Truck drivers shortage : how to reduce demand?

#2 Artificial Intelligence and predictive analysis

#3 New best practices in data sharing

#4 Reverse logistic

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# 5 Update of the ECR blue book on traceability (withdrawal and recall) + blockchain – cf. Lactalis Crisis

# 6 Retail jobs’ mutation

# 7 Tracking & IoT

# 8 Product data exchange

Supply chain

Committee,

January 2018

Agenda

Institute of Commerce &

Activities

Keys figures of the French

Market

Demography

FMCG market

E-commerce

The French ECR OSA working

group

OSA evolution since 2013

(ECR-IRI barometer)

1st results of the omnichanelshopper reactions surveyregarding out-of-stocks

France demography in 2025… beyond the clichés

• 67.3 Million inhabitants in 2025 (+4,3% vs 2015)

• Rising Life expectancy & ageing population

• 22% of the population over 65 years old (18,6% in 2017)

• Less couples in 2025

• 46% of couples in 2025 vs 52% in 2014

• Less and less household with 2 adults (more women living alone)

• Less and less family with more than 3 kids

• 90% of the population living in cities

• 60 % of the population is concentrated in 8% of the territory

Dynamic of the ChannelsSource : Nielsen

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+ new other touchpoints : + 70 % of shoppers are also buying directly to producers (farms, on Internet)

41,50%

34,10%

8,30%

11,20%

4,90%

Market share per channel

HM SM

CONVENIENCE BANNERS SMPL BANNERS

DRIVE BANNERS

FMCG retailers Market shareSource : Kantar, december 2017

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Number of click & collect per retailer

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Drive/ pick & collect

• Market share : 4,9% off total sales of fast-moving consumer goods (FMCGs). In Europe, only the UK had a larger share, at 6.9%, while countries such as the US and Germany lagged France considerably.

• Dynamism : Online grocery retailing in France expanded rapidly due to the early introduction of clickand-drive. French hypermarket retailers introduced click-and-drive as early as 2004. The model was successful and expanded rapidly.

• Click-and collect models adopted by the retailers. Over the 4025 click-and collect sites in France, 2900 have a dedicated platform with specific stock or common stock (picking), the others welcome the shopper insidetheir stores. It impacts the number of Skus proposed

• 1/ Cora Drive : 25 000 références2/ Intermarché Drive : 14 000 références3/ Carrefour Drive : 8 600 références4/ Chronodrive : 8 400 références5/ Casino Drive : 8 300 références6/ Auchan Drive : 8 200 références7/ Leclerc Drive : 6 900 référence

• Click-and-drive pushed up shopping frequency. The expansion of click-and-drive encouraged French consumers who buy groceries online to shop more frequently than consumers in other countries, as French shoppers see click-and-collect as a real alternative to in-store shopping. As a result, France has a larger online grocery retailing market than many other countries, even though the proportion of consumers buying groceries online remains relatively low in France.

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Retail Market TrendsSource : FEVAD

(French E-commerce federation

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Other sources of information

• Snapshot of Consumer Goods Trends in Western Economies IRI Q3 2017

• Nielsen insights

• Kantar insights

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Agenda

Institute of Commerce &

Activities

Keys figures of the French

Market

Demography

FMCG market

E-commerce

The French ECR OSA working

group

OSA evolution since 2013

(ECR-IRI barometer)

1st results of the omnichanelshopper reactions surveyregarding out-of-stocks

French OSA Working groupSince 2002..

• Objectives

• Better know the reactions of shoppers facing out of stock

• Improve the measurement of availability in store and online

• Create new collaborative tools

• Share an active watch on the new solutions/technologies

• Companies involved

• ADEO, AUCHAN, CARREFOUR, CORA, LUDENDO

• BEL, CANDIA, DANONE EAUX, GIBSON, L’OREAL, MARS, NESTLE, UNILEVER

• cochairs

• Lionel BADO Supply Chain Synergy Director (ADEO SERVICES)

• Alexandra BERTET Responsable développement service client (MARS)

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French ECR-IRI OSA barometer(110 catégories – hypermarket)

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Annualaverages

7,1

6,7

6,56,4

6,2

Periods

OOS %

Total OOS = Real OOS + potential OOS (day without sales calculated)

3% + 4%

French ECR-IRI OSA barometer(110 catégories – hypermarket)

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Total OOS = Real OOS + potential OOS (day without sales calculated)

3% + 4%

OO

S (%

)

Retailers 4, 5 and 8 suffer from more OOS since 2013

SHOPPER RESEARCHOfficial results to be published in March 2018

• Our needs

• Update of our first survey (2010)

• Lack of information for the specialist retailers

• Lack of information on online availability

• Omnichanel shopper = omnichannel comparison

• Objectives

• Understand what is the most frustrating for the shopper when facing an out of stock

• Identify best practices to minimise insatisfaction by types of products/channels/sectors

• Perimeter

• All the touchpoints

• On/offline

• Food & Non food (DIY, culture, toys, electronics, small apparels)

• December 2016 – December 2017

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SHOPPER RESEARCHOfficial results to be published in March 2018

• 3000 online interviews (recruitment / shopping trends and general reaction when facing an OOS)

• 3354 specific out of stock declarations encountered by the 1155 participants recruited (vs 2000 expected)

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• OOS vs Recurrence of the unavailability of a product, particularly in one’s usual food store• OOS vs No information, no substitution• OOS vs Length

• OOS vs Number of products of the same categories concerned by OOS• OOS vs day/ moment of the day: worst Saturday/midday OOS vs famous brand• OOS vs private label• OOS vs seasonal product / event

SHOPPER RESEARCHOfficial results to be published in March 2018

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Dissatisfaction increases when the shoppers is faced with

an illogical situation that he doesn’t understand

in March 2018

SHOPPER RESEARCHOfficial results to be published in March 2018

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SHOPPER RESEARCHOfficial results to be published in March 2018

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Substitution

suggested?

Change of site?

More expectation

Less information?

More understanding?

More human advice?

SHOPPER RESEARCHOfficial results to be published in March 2018

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Total FOOD DIY

Culture (books,

music, back to school

supply…)

House

equipment,

Electronic

Care,

Beauty,

OTC

Toys Textile

Base ruptures 3 354 2381 165 122 114 257 61 98

Product of the same brandbought in the same store/site

11% 10% 7% 13% 10% 11% 11% 12%

Product of another brandbought in the same store/site

17% 20% 10% 7% 13% 14% 3% 5%

The same product bought in another store/site

13% 12% 21% 17% 25% 14% 28% 11%

Product purchaseabandoned/postponed

55% 55% 55% 59% 41% 58% 44% 60%

Left-over of the total shopping basket 4% 3% 6% 3% 11% 3% 13% 11%

Immediatereaction