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Redcats Workshop Redctas
 

Redcats Workshop Redctas

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Redcats Workshop Redctas Redcats Workshop Redctas Presentation Transcript

  • WELCOME
  • Workshop Redcats February 15th, 2001
  • A genda 9.30 - 9.45 Welcome (David Newhouse) 9.45 - 10.15 Strategic overview (Hartmut Krämer) 10.15 - 10.30 Financial highlights (Bertrand Vinot) 10.30 - 10.45 Q/A 10.45 - 11.00 E-commerce challenges & prospects at Redcats (Hartmut Krämer) 11.00 - 11.30 La Redoute on-line (Paul Delaoutre) 11.30 - 11.45 Coffee break 11.45 - 12.15 Optimization of international development (Pascal Bazin) 12.15 - 12.30 Q/A 12.30 - 1.30 Lunch
  • A genda 1.30 - 2.00 Catalog conception (Nicolas Bernard) 2.00 - 2.15 Q/A 2.15 - 2.45 Customer Relationship Management (Patrick Terrier) 2.45 - 3.00 Q/A 3.00 - 3.30 Bus transfer to Leers (Logistics Center) 3.30 - 5.00 Presentation and visit of the logistics Center (Patrick Terrier / Gérard Seulin) 5.00 - 6.00 Q/A with Redcats management 6.00 - 6.30 Bus transfer to train station
  • REDCATS
  • Strategic overview Hartmut Krämer
  • Outline
        • Redcats and its home shopping competition in key markets
        • Drivers of growth & profitability
          • Strategic focus
          • Existing brand mapping
          • Leveraging of common ressources
  • Main competitors - Home Shopping Net Sales 30 000 40 000 50 000 60 000 70 000 M FRF OTTO QUELLE Net Sales - 20 000 40 000 60 000 80 000 100 000 120 000 1996 1997 1998 1999 M FRF OTTO QUELLE REDCATS / NECKERMANN
  • Main competitors France Home Shopping Market Q UELLE- N ECKERMANN
  • Main competitors US Home Shopping Market Net Sales - 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 1997 1998 1999 M USD JC PENNEY SPIEGEL Group LANDS'END BRYLANE FINGERHUT/MACY/ BLOOMINGDALE
  • Main competitors UK Home Shopping Market Net Sales - 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 1996 1997 1998 1999 M GBP GUS LITTLEWOODS GRATTAN REDCATS UK
  • Main competitors Sweden Home Shopping Market
  • Strategic focus
    • Leader in customer satisfaction
    • An internationally well-positioned portfolio of current brands
    • Successful implementation of new organisation with shared services and infrastructure
    • Multi-channel retailer with emphasis on being a major e.commerce player : double digit % share of sales
    • Develop Home / Lifestyle business in Europe and USA
    • External growth in Europe and USA
  • Existing brand mapping Market Potential Competency Positioning GLOBAL EUROPE / USA LOCAL French Lifestyle La Redoute Scandinavian Lifestyle Redcats Nordic Lane Bryant Roamans/Jessica London Large Sizes Men KingSize Senior Apparel To be named Daxon - Edmée - Celaia Children Apparel T o be named Vertbaudet Home + Leisure Low income / credit Empire - Maison de Valérie Sportswear Modern Somewhere Sportswear Classic Cyrillus Budget / Off price Apparel To be named Chadwick's /Lerner /Empire /Josefson American Lifestyle Brylane Home Large Sizes Women
  • Leveraging of common ressources
    • New organisation
      • La Redoute
      • Redcats UK
      • Redcats Nordic
      • Brylane as one
      • Specialized Brands from France
      • Operational Center France
    • New top management team to improve competitive position and to shape future strategic portofolio development
    • Succesful development in E.commerce
    • Have the tools and the environment to develop, attract and retain the best people
  • New organization : Principles
    • STRONG FOCUS IN EACH
    • GEOGRAPHIC MARKET
    • To focus on the retailing business
    • To control customer satisfaction
    • To manage strategic mapping brands
    • TO CONCEIVE AND DEVELOP THE FORMATS OF TOMORROW
    • COMMON BACK OFFICE
    • INFRASTRUCTURE
    • To reach and exceed critical size
    • To generate economies of scale
    • To have a profit centre
    • To raise expertise
    • To open up the activity to third parties within the Group and possibly outside the Group
    • TO STRENGHTEN COMPETITIVE ADVANTAGE
    • Provide all companies with a complete and competitive order preparation / dispatching service
      • Eveil et Jeux
    • Add to e-commerce offering remote selling distribution services
      • Fnac.com
    • Develop network pick-up points ; complement available functionalities (sales / credit card payment)
    Pooling logistics and distribution infrastructures for out-of-store sales businesses
  • E-commerce challenges and prospects at Redcats Hartmut Krämer
  • Redcats: one of the three main business models of PPR’s e-commerce strategy
    • A strategy to gain market share on current competition
      • Increased flexibility of the offering: frequent renewal of the product range
      • More efficient direct marketing
    • An important productivity gain potential
      • Cost reduction in terms of catalogs, call-centers, mailing
  • Redcats: e-commerce
    • Major competitive advantages for Redcats
      • A strong expertise in selling through pictures
      • Infrastructure for home delivery and return management
      • Important customer database
      • Know-how in CRM and one-to-one marketing
      • Strong presence on high usage Internet markets (Scandinavia, US)
      • 40 e-commerce sites
      • (15% to 20%) of internet customers are not standard mail order customers
  • Major challenges and opportunities
    • Adapting product dimension (conception/sourcing) to the rythm possibilities of the web
    • Scalability of technical infrastructure
    • Mutualisation of development costs
  • E-COMMERCE : KEY ACTIVITY DATA 1999 2000 % of sales through internet La Redoute 0.2% 1.5% Ellos 2.9% 5.2% Brylane 0.2% 3.8% Chadwicks 0.2% 7.0% Brylane Home - 8.0% Dec-00 2.7% 5.8% 6.6% 12% 11.5%
  • Financial highlights Bertrand Vinot
  • in million Euros NET SALES 4 355 EBITDA 270 CAPEX (Operational, non-financial) 75 ROCE (total) 14 % ROCE (excluding Brylane (1) ) 28 % HEADCOUNT 22 900 (1) A two stage acquisition (1997 & 1999) 1999 Key financial data
  • (1) Denmark, Estonia, Finland, Norway, Sweden (2) Austria, Belgium, Germany, Portugal, Spain, Switzerland A worldwide home shopping company In million Euros 2000 Figures % France 1 973 41 UK 620 13 Scandinavia (1) 285 6 Other Europe (2) 205 4 Total Europe 3 083 64 USA 1 738 36 Asia 13 0 Total 4 834 100
  • A sustained international development through acquisitions In billion Euros 1996 1997 1998 1999 2000 Redcats North America Redcats Nordic 1996 Perimeter 2.4 2.7 4.1 4.4 4.8 2.8 2.8 3 2.6
  • A multichannel distribution group 1999 2000 Catalogs 95.2% 94.5% Retail 4.5% 3.4% E.Commerce 0.3% 2.1% 100% 100%
  • A retail group dedicated to its customers’ well-being through a large variety of products % net Sales 2000 Apparel 69 Home 23 Services & Other 8 100
  • The most internationally diversified group in the home shopping world Net Sales (Billion Euros) % of Sales Outside home country 1 Otto Versand 20.5 39 2 Quelle / Neckermann 7.4 17 3 Redcats 4.8 59 4 JC Penney 4.2 0 5 Gus 3.2 17 6 Littlewoods 1.9 15 (1999 data, except redcats 2000)
  • Key operational factors
    • Present in 17 countries
    • 18 global or local catalogs
    • 93 billion of catalog pages
    • 85 million parcels / year
    • 60 million customer addresses worldwide
    • 100 million phone calls
    • 40 Web sites
    • More than 100 stores
    • 22 900 associates
  • La Redoute E-commerce Paul Delaoutre
  • La Redoute 2000 Web sites’ sales
        • 4.6 Millions single visits (3.5 Millions in France)
        • 250 000 clients bought on our sites (161 000 in France)
        • 5 % of visitors placed an order (9% in Dec)
        • 338 000 orders (172 000 in France )
        • More than one million articles sold on the line (604 000 in France)
        • 120 000 catalog demands in France.
    1999 Budget 2000 2000 Sales International France Total 17 14 31 48 65 113 63 84 147 (In million FF)
  • laredoute.fr’s 2000 monthly sales Demand Sales
    • AN EFFICIENT WAY TO REACH NEW CUSTOMERS
    • 10% of new customers
    • 16 000 new web buyers in France = 3% of La Redoute new buyers (against 1.1% of total sales)
    Market share  : La Redoute’s share of the French e-commerce market (approx. 4 bn FF in 2000) is in excess of 4% vs a 1.2% global share of the French retail market. - 5 000 000 10 000 000 15 000 000 20 000 000 25 000 000 JAN FEBR MARCH APRIL MAY JUNE JULY AUG SEPTEMB OCT NOVEMB DÉCEM - 2 000 000 4 000 000 6 000 000 8 000 000 10 000 000 12 000 000 14 000 000 Initial Dem. Sales
  • Internet: a rising part of sales Austria 5.4 8.3 Switzerland 4.9 8.2 UK 4.3 9.2 USA 3.7 13.3 Spain 2.0 4.4 Belgium 1.6 1.9 Portugal 1.0 1.8 France 1.1 3.0 % of total sales in 2000 % of sales in December 2000 (in %)
  • Our e-commerce approach E-commerce E-business E-CRM 100% dynamic web platform – Customization of contents and services – integrated production workflow Deep integration into mainframes and legacy functionalities and databases Commercial Intelligence Knowledge Management Rules engines No e-commerce without e-business No e-CRM without e-business No e-commerce without client intelligence France’s first fully web enabled call center, alloweb is a multi-content, multi-access, relationship tool dealing with entering and outgoing 14 000 monthly contacts
  • E-Marketing : a clear territory and positioning
    • Competitive field : The leading site in people and home equipment
    • Positioning : laredoute.xx, evolves as fast as fashion and is always up to date
    • Client Promises :
      • Product offers :  frequent update. Additional offers to the catalogue
      • Services : map locator, search tools, Style Advisor, all in one order, secured payment ...
      • Prices : variable prices and dynamic merchandizing
  •  
  • An ambitious « net-chandizing »
    • 27 « Daily Bargains »
    • 9 daily « Coups de Cœur »
    • 50 specials web commercial events / year
    • A product policy involving the whole company through a Web Commitee
    • 5% of Novelty products specific to the web
    Nouveautés Nouveautés Nouveautés Nouveautés Nouveautés Nouveautés B.A du jour Offre personnelle Chronofolies ... Coup de cœur B.A dans chaque boutique Nouveaux prix Exclusivités ... Fête des pères Offre Grand froid Rentrée scolaire Les invités de la saison ... Produits associés Conseils d’achat Dossiers tendance Conseil en style Recherche par marque, couleur... alloweb, ... Mise en ligne progressive dans la saison Ventes rapides de 1 heure à 7 jours 10 à 100 codifs produits e-mailing & offres promos Merchandising de 1 à 7 jours 100 à 1.000 codifs produits Quinzaines commerciales de 1 à 3 semaines 1.000 à 5.000 codifs produits Fonds de rayon référencement permanent 40 à 100.000 codifs env. 8 mois Femme Lingerie Enfant Homme Sport Maison Image &Son Jeux & Micro Electro- ménager
  • What’s going on ?
    • In France, 23% of sales is additional « pure web » turnover
    • 77% of the web sales is transferred from the paper catalogs
    • Average Purchase of 128 Euros (15% higher than average) and of 152 Euros + for « pure e-boutique » orders
    JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC Direct orders Additional orders Web & mail order : additional sales through the clicks
    • A high end market and a specific product mix
    • 61 % of e-boutique sales through Housing and technical products (vs 35% overall)
    In million FF 0 2 4 6 8 10 12 14 16 18 20
  • Web impacts on P&L
    • Extra turnover in 2001
      • 25% of additional sales
      • 13% new customers
      • better satisfied clients lead to improved sales ratios
    • Industrialization of sales allow economies of scale and productivity gains
      • Gains through strong decrease in cost of order processing (1/6 ratio or 8 F saved FF per order in 01 )
      • Lighter and faster Customer relationship
      • Economies on commercial spending through cheaper and fewer mailings and on cost of boutique per customer
  • 2001 highlights
    • Additional growth will be searched through
      • An increased coordination between Paper & Web marketing plans and commercial pressure
      • Launch of multi-channel sales campaigns using retail – catalogs – paper mailings – web marketing
    • New paths to the customer will be explored through
      • Sales of innovative products well adapted to internet channel and to high level and fidelity-prone clients
      • Keep leading CRM expertise and develop high-return services
  • Catalog conception Nicolas Bernard
  • Catalogue creation
    • Focus on the global process
    • From the database to paper catalogue printing
  • 16 million addresses THE CUSTOMER FILE 8 million buyers in the last 4 seasons 4 million buyers in woman apparel
  • MAPPING OF SECTIONS IN WOMAN APPAREL liz claiborne la mode sans se ruiner créateurs,marques images références active wear marques junior tipster softgrey couleur bain moderne côté femme laura clément marques jeans double page chaussures prix mini junior édéis prix mini mode best bain classique linéa moda la boutique prix mini classique impeccables tabliers 4ème de couverture romantique=derhy stop aff mode on n'est pas des anges la city Axe 2 Axe 1 SENIOR JUNIOR SOPHISTICATED CASUAL
  • Positioning of the section Laura Clement
    • Target
    • Her needs
    • Competitors
    • Life style
    • Communication codes
    • Casting
  • Assortment of the section Laura Clement
    • Category of items
    • Price level vs Market
    • Level of Quality /
    • Size range vs Redoute
  • Collection creation Laura Clement
    • Double pages
    • Internal designers
    • Coherence with assortment
  • Technical specifications
    • Fabric
    • Washing instruction
    • Size specification
    • Packing instruction
  • Proposal of layout
  • Fitting before photo
  • Photos
    • Fast move from Argentic to digital photography
    • External
    • photographers
    • Various photo locations
  • Text implementation
  • Photo combinations
  • Artwork and printing
    • Syquests given to photograveurs for Artwork
    • Rotogravure printing in Europe
    • Big book of La Redoute 20.000.000.000 printed pages / year
  • Final page
  • Optimization of international development Pascal Bazin
  • Redcats: a unique combination of competitive advantages
    • A portfolio of 18 brands / catalogs with
      • a strong positioning on their customer target / market
      • a significative and constant growth
      • professional and ambitious teams
    • A “Customer megabase” per country
      • with high level of customer qualification
      • easy multibrands access
      • powerful analysis tools
    • Powerful back-office internal organizations and systems
      • well established in the main markets : USA - the UK - FRANCE - SCANDINAVIA
      • offering very competitive costs
      • able to handle multi brands activities with a common tool
    Redcats: a unique combination of competitive advantages
    • This unique combination of competitive advantages gives REDCATS very strong opportunities of optimized international development organized around 3 models
    • First model : “Full exportation”
      • Full concept & product offer
      • Same catalog
      • Central buying
      • Similar direct marketing technics with local support and back office Vertbaudet UK
    Optimization of international development
    • Second model : “Exportation”
      • Selection in product assortment
      • Different catalog
      • Central buying
      • Potential different marketing technics with local support and back office La Redoute USA Chadwicks UK
    Optimization of international development
    • Third model : “Licence”
      • Integration in a brand / catalog of a product know-how developed by an other brand / catalog Vertbaudet Sweden Daxon Christmas Offer UK
    Optimization of international development
  •  
    • A real optimization of our international development based on a very strong and international know-how on
      • Development of offers / buying capacities
      • Realization of catalogs
      • Deep local market know-how
      • Competitive internal back-offices
    In conclusion
  • Customer Relation Management at REDCATS How Redcats’ order-takers are becoming TELEMARKETEERS Patrick Terrier
  • VIDEO: The Customer Relationship at MOVITEX
  • Redcats Customer Relation Departments The strategic, operational interface of our Services to the Customer
    • Main functions
      • Order-taking
      • Before and after sales advice
      • Payment processing
      • Answering customer queries
      • Claims management.
    • Through various media :
    • Telephone Mail Minitel (France) Internet
  • Organisation
    • The departments are ‘services to customer’oriented and take into account the ever-increasing ratio of phone calls.
      • Approx. 100 M calls / year to Redcats .
      • 85% of orders are by phone at Brylane.
      • 65% at Redcats Nordic.
      • 55% at La Redoute.
      • At Vertbaudet phoned-in orders increased from 12% in 1992 to 55% in 2000.
    • Extended call center opening-hours.
      • 24H a day, 7 days a week at Brylane
      • 7 days a week at La Redoute, Redcats Nordic, Vertbaudet, Empire Stores
    • Before and after-sales advice development
      • La Redoute, LMDV,
      • Advice from a specialised technician on specific products.
    • Capacity pooling
      • Dedicated teams (sharing a common infrastructure) or complete cross-brand adaptability
        • Mail / phone versatility (Redcats Nordic)
        • Multi-lingual operators (Cyrillus, Brylane)
        • International development (USA, the UK, Sweden, Portugal)
    • Objectives : Increase service rate
      • Uphold brand particularities
  • New developments in Customer Relations
    • For CR operations, internet development generates:
      • e.mail activity
      • web call centers
    • E.mails
      • A new development in the operator’s job
        • Learning to use new tools
        • Written contact but not quite the same as a letter
        • Quick, precise replies expected by customers
        • More numerous contacts generated
    • Web Call Center
      • 100% interactivity with the Web-surfer
        • chats
        • voice on IP, voice button, call-back...
    • REDCATS NORDIC / BRYLANE
      • Specialised structure for answering e.mails
      • Ellos: 25000 emails/year
      • Brylane: 45 000 emails/year
      • 2 teams covering 15 hours / day
      • Objectives to answer within 2 hours
      • 2001: the set-up of real Web call centers
    • Effective Web call centers.
      • La Redoute: today nearly 500 contacts daily  65% = e.mails
      • objectives = answer within 4 hours
      • Interactive contact : different options used
        • 1. the chat
        • 2. the call-back (using normal telephone - 2nd line or GSM)
        • 3. the voice on IP is rarely used
      • Areas for development
        • Optimise organisation to be able to adapt to volume growth
      • January 2000 - 3000 contacts / month
      • December 2000 - 12000 contacts / month
        • Specialisation of operators according to the medium used
        • Help in answering e.mails.
    REDOUTE / CYRILLUS
  • New developments in Customer Relations
    • Different types of pro-active sales
      • Substitution: suggest a replacement article when item not available: another colour, similar product...
      • Services: promote services associated with the products:
        • extend a guarantee
        • open a credit account
        • subscribe to a magazine
    Take advantage of customer contacts to generate additional sales
  • At Redcats Nordic and Brylane, the procedure is highly developed At La Redoute , the procedure is in full boom as well At the Specialised Brands , currently tested and implemented New developments in Customer Relations
    • Different types of pro-active sales
      • Additional sales:
        • suggest a complementary item
        • e.g. batteries for a game, cassettes for video recorders, ties for shirts etc.
        • promote the ‘offer of the day’
        • e.g. highly visual, low priced sales offer
        • suggest other items from the catalogue
    • Net perception
    This tool will return a list of upsell items to the associate for offer to the customer
    • Realtime recommendation engine
    • Using past buying history of the customer and knowledge gained from a similar taste community
    • Combination of statistical or neural net modeling, trending and filters
        • - Liquidation of inventory
        • - Selling staple items
        • - Promoting new trends
        • - …..
    • BRYLANE: Tested this past FW 2000 with associates from Roaman’s
    • 2% lift in sales
    Generalisation this Spring
    • Information system support
    • Permanent dialogue between the product, Marketing and CR sectors
    • Support and training of operators
    • Training of management to motivate sales staff
    • Put into place instruments measuring activity
    A real change of the tele-operators job