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Collaborative & Retail - Altavia Watch - June14 - english version

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How can retailers incorporate the concepts that underpin the sharing economy into their value chain when their model is based on the principle of acquiring goods? This slideshare enhances 4 types of collaborative models retail is experimenting with, through a selection of examples: co-creation, co-marketing, co-consuming and co-recycling.

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Collaborative & Retail - Altavia Watch - June14 - english version

  1. 1. COLLABORATIVE & RETAIL Thierry Strickler - François Calzada June 2014 English version
  2. 2. 4 Co- Market Co- Recycle Co- Create Co- Consume
  3. 3. Collaborative & Retail?
  4. 4. A long-term trend Collaborative consumption: economic model in which usage is given priority over ownership. The usage of a product, service or privilege can be enhanced by sharing, trading, exchanging, selling or leasing it. (Wikipedia) 19% "Firmly committed" 29% "Persuaded" 32% "Aware" 20% "Resistant" Nearly half of all people in France are collaborative consumption enthusiasts. 48% of people in France practise collaborative consumption on a regular basis and 80% practise or are intending to practise collaborative consumption. (TNS 2013 Confidence Monitor)
  5. 5. A range of different motivating factors 4 factors motivate consumers: • Unprecedented economic constraints • Rapid development and increased adoption of information and sharing systems • Known ecological threats • Unreasonable consumption has reached saturation point 63% Less expens ive 55% You can find bargains 38% Making objects last longer, giving them a 2nd lease of life 28% A consumption model that is better for society 28% Easy over the Internet 18% A different consumption model that appeals to me 14% I meet new people through it 8% I like making new discoveries and experimenting with new things 6% I trust other people more than I trust retailers Factors to do with purchasing power Factors that explicitly relate to the alternative nature of this means of consumption (source: TNS 2013 Confidence Monitor)
  6. 6. A wide range of applications Use Co-Produce Exchange Deliver Distribute Co-Finance Share Couchsurfing Coinnovate Purchase as a group Cohabit Coworking Codevelop Crowdfunding Trading Contributive production Recycle Lend Exchange Repair Upcycle Give Economise PARTICIPATE & SHARE Participate BEFORE use AFTER usageUSAGE Coaccommodation Car-sharing
  7. 7. Collaborative & Retail: Opportunism or revolution? Co-Create Co-Market Co-Consume Co-Recycle Purchasing HOW can retailers incorporate the concepts that underpin the sharing economy into their value chain when their model is based on the principle of acquiring goods? Have retailers put together the principles of collaborative consumption in an opportunistic and ephemeral way, or is it a long-term trend that may profoundly alter the distribution of goods and services?
  8. 8. Co-Create
  9. 9. Co-Create Potential benefits for business: > Analysis of the customer's needs: understand, actively listen, anticipate criticism > Customer relationship: strengthen the link, bridge the gap between the retailer and the customer, bring together a community of ambassador customers > Innovate: foster new ideas, create new products and services, experiment with proposals for innovation > Communicate: draw on a community of ambassador customers to maintain an active presence – on social networks in particular. Design Invent Participate Finance Promote Support Manufacture Collect
  10. 10. IKEA has its paper catalogue recreated by its fans on Instagram In Norway, IKEA invited its fans to publish pages from its paper catalogue on Instagram. In four weeks, it was available in its entirety on the social network. To reproduce the contents of its famous catalogue on the social networks, IKEA Norway – together with advertising agency SMFB Oslo – used a competition to call upon the brand's 160,000 Facebook and Instagram fans. The rule was simple: fans had to take a photo of a page from the IKEA catalogue and publish it on Instagram with the hashtag #IKEAKATALOGEN. They also had to indicate which products they wanted to win using a second hashtag.
  11. 11. An ING Direct Web Café, please Will you have a little online co-creation? At the end of 2013, ING Direct (900,000 clients in France) launched its Web Café – an online discussion and co-construction area featuring a forum, blog and an ideas box known as the "Labo". The Labo is a special area where participants can leave their ideas. This way, the online bank is also able to find out what they want and any criticisms they may have. It is then better able to tailor its products to meet their requirements and offer new services that provide higher levels of satisfaction.
  12. 12. Auchan is involving its customers in product design Auchan unveils its Quirky products – products invented by Internet users. The first French products bearing the Quirky stamp – products designed by Internet users – will hit Auchan's shelves in spring 2014. Ultimately, four products will go on sale. Earplugs with an integrated alarm clock, a bin that scans whatever products you throw into it and then automatically adds them to a shopping list, a hammock that weighs you, etc.Since the Quirky collaborative platform was launched in France in mid-September, more than 800 ideas have been submitted by Internet users.
  13. 13. Club Med gets involved in co-creation Club Med gets its fans to vote for its new Val Thorens Village In the first week, fans stated a preference for the name "Val Thorens Sensations" over "Val Thorens Titanium"; in the second week, they selected a climbing wall with a pure, uncluttered design; and in the third week, they chose mountain biking on snow over ice driving. The operation, which began at the end of January, continued through to April. The new village is scheduled to open next December. To get fans to vote, every week Club Med will randomly select one person who will win a holiday for two at the village. This person will then be encouraged to get their friends to take part.
  14. 14. C’Vous, the Casino Group's customer relations platform Cvous.com is the result a dual-pronged concept that is completely new in the retail sector: a community approach combined with a co-creation strategy. The idea behind C'Vous is to give a voice to "active consumers" so that they can make suggestions and recommend examples of good practice for products and services. Consumers can vote for their favourite products, provide tips and share their good ideas, or support a producer in their particular region. The Casino group launched the C'vous project in order to "create links with consumers, as well as with other retailers and their customers".
  15. 15. At Crédit Agricole, customers are designing their own banking apps The cooperative bank has launched its own app site. It is now inviting its customers to send their ideas for mobile banking services to a group of outside developers. The aim was to find out from customers what kinds of mobile apps would help them out. "There are more ideas in the heads of our 21 million customers than in the heads of bankers". The way in which the CA Store works is very simple. By filling in a form on the website, any customer can submit their app idea and browse those that have been left by other Internet users. These ideas are then rated and comments are left about them, pushing the ones that people think are the most useful up the list. A group of developers has access to the features that people would like to see. This group is made up of 20 or so IT companies outside Crédit agricole working as part of a cooperative – "Les Digiculteurs" ("digital farmers"). If a particular idea appeals to them, they can start developing it.
  16. 16. A farm with a market encourages consumers to play an active role in food production The Farmery wants consumers to be able to monitor cultivated foodstuffs as they grow and get involved in the farming process. By selling farm products direct to consumers, farmers can increase their margin while at the same time developing closer relations with their customers. The Farmery in the US seeks to encourage consumers to monitor the growth of the foodstuffs that they purchase, and play a more active role. The final project should have four dispatch areas and a large warehouse where products will be on sale to the general public. The whole farm has been designed so that consumers end up with as sound and understanding as possible of the system used to produce foodstuffs. The aim is to encourage consumers to grow their own foodstuffs.
  17. 17. Co-Market
  18. 18. Co-Market Distribute Deliver Advise Potential benefits for business: Co-marketing is definitely one of the most delicate segments for retailers in the sharing economy. Indeed, the concept of the collaborative supermarket is an atypical business model that is very different from the standards involved in traditional retail. It involves the basic consumer evolving into the socially-responsible consumer. Having membership of a local community, being involved in or co-managing a collaborative supermarket means choosing not to buy into the market economy model. This is an opportunity to experience something different, to create links with the local community and to subscribe to social and ecological values.
  19. 19. New York's "socialist" supermarket Inexpensive, organic and smart: a New York supermarket managed by its own customers has been flourishing for forty years. The 16,200 people who shop at Park Slope's Food Co- op also work there for free for two and three-quarter hours every month to keep the store up and running. This means that 75% of its workforce is made up of volunteers. The 500 volunteers who run the store every day can choose from a range of different tasks. In the basement, next to where the stock is, there is a special place where raw materials are packaged. Volunteers cut cheese, weigh and wrap up condiments, herbal teas and spices. Those entrusted with cleaning the store – the most arduous task – have their working time cut down to two hours.
  20. 20. A zero waste supermarket in London In London, The People's Supermarket is a sustainable food cooperative based on a different kind of social and ecological model. Everything is reused so as to avoid wastage. For example, an unsold courgette may very well end up as a soup or even compost. Its main distinctive feature is its membership cost: membership is only £25 per year (around €31). Each member then gets 10% off everything in the store – provided they volunteer for four hours a month. Another of its distinctive features is the very different way in which it manages waste. For example, a courgette purchased from a small farmer (one based locally, preferably) which has still not been sold after a few days will end up being used by The People's Kitchen. This is the supermarket's very own kitchen which is used to prepare dishes for sale in the store.
  21. 21. In Paris, a collaborative purchasing group is striving to make high-quality products affordable for everyone Inspired by the Park Slope supermarket in New York, the Louve is a cooperative purchasing group which is gearing up to open a collaborative supermarket Currently, the purchasing group puts in orders for high- quality products every four weeks. Because the initial selling price is only slightly marked up, these products are very affordable. A collaborative food cooperative – whose members volunteer at it – is scheduled to open in 2015, in north- east Paris. Every aspect of the Louve is collaborative: it is in the process of finalising its finance campaign through the KissKissBankBank crowdfunding platform so that it can purchase equipment, pay a temporary project coordinator, find an initial venue for welcoming its members and sympathisers, fund the purchase of a lorry and other equipment, develop a sophisticated website, increase the frequency of distributions, accelerate the diversification of its product range, etc.
  22. 22. Co-Consume
  23. 23. Co-Consume Use Maintain Consume Potential benefits for business: Co-consumption is the segment of the collaborative economy that gets the most media coverage – increasing numbers of consumers are getting involved in it (Autolib, Blablacar, etc.) Retailers are increasingly factoring in consumers' aspirations and new modus operandi, making use of the increased adoption of information technologies which can easily create links between people. Retailers are aware that their model is losing (some of) its appeal. They have the assets (customer database, physical network, logistics, etc.) in order to play a key role in driving this main trend. And this is also clearly an opportunity for them to create new offers and play a central role in the changes affecting our modern companies.
  24. 24. Citroën Multicity gets your feet moving Citroën has just launched a new travel website that includes all available modes of transport – including walking. How can a car manufacturer like Citroën become a travel agency and bolster its car hire business along the way? Needless to say, the answer involves the Internet. Multicity – Citroën's new website – does much more than simply working out the best door-to-door route for Internet users. Interestingly, the system makes use of all available modes of transport – car (obviously), as well as metro, tramway, bus and (for Paris) the regional express train network. Nor does it forget air, train, boat, bike hire or even walking.
  25. 25. Mercedes is inviting its customers to share their cars Mercedes has unveiled an on-board application that drivers can use to select a car-sharing passenger via Facebook. In his presentation of the new CarTogether car-sharing system, Mr. Zetsche did not hide the fact that this was an unexpected move, somewhat out of step with Mercedes' strategy: "Some people still see car-sharing as communism. And if it is, then long live the revolution!" This telematics application makes car-sharing easier by helping drivers find someone to share their journey with. And thanks to social networks such as Facebook, drivers can decide which hitch-hikers to pick up based on their personality and tastes. Mercedes is buying into the car-sharing trend – and in France, 3 million people are already experiencing it.
  26. 26. In Sweden, drop by to pick up some nails and leave with a drill! At the Malmö Hardware Store, as well as picking up nails, screws, pots of paint and other consumables, customers can borrow a range of tools for their DIY work. An economical, ecological, collaborative and – most importantly – a useful initiative – particularly when you know that the average time that a drill is used for is only 12 minutes and that 50% of all of them are never used at all. The Malmö Hardware Store has developed ToolPool – an original scheme for lending out these machines (sales of which are only very small) for free. Consumers can book the tools via Facebook: they first need to register before they can book the equipment that they want to borrow. And then the reservation is reflected in a status update on the store's Facebook wall.
  27. 27. The SNCF transport group has purchased a specialist site to complete its environmentally-friendly transport offering The SNCF group has confirmed – by acquiring Green Cove, a start-up company in which it had already acquired a stake in 2009 – that it wants to provide its customers with a complementary mobility offering. The SNCF group is going to roll out its car-sharing service via the Internet, a service that will bear the SNCF name and which will be aimed at two types of users: companies offering their employees the option to share their vehicles with several other people for the journey between where they live and where they work, as well as individuals who have to drive longer distances. In doing this, the group is developing initiatives which are helping to establish it as a European "eco-mobility" leader. After iDBus (which operates coach services over long distances) and iDCab (a pre-booked taxi service), the SNCF is now completing its range of transport services by taking advantage of a new environmentally- friendly trend with an initiative aimed at very environmentally-aware passengers as well as companies and local authorities involved in sustainable development.
  28. 28. MU, mobility according to Peugeot Peugeot has developed "MU" – a new mobility offer. It's a hire service that people can also use for weekends away with everything they need, or for moving house without having to call professionals. Not having a car can make life very awkward. How do you get around when you're not in a big city? How can you go away for a weekend or take your children to ride their bikes? MU is an account that you can top up with units for hiring mobility services at Peugeot dealers. These services include cars, scooters, bicycles, utility vehicles, accessories and house move kits.
  29. 29. Co-Recycle
  30. 30. Co-Recycle Recycle Eliminate Repair Trade Redistribute Potential benefits for business: Creating a virtuous circle for recycling clothes, collecting old pairs of shoes in order to fund an association or arranging an exchange of expertise between consumers… such initiatives are on the increase. This is an excellent way for retailers to commit and establish themselves as economically-responsible players. And it's also a strategy that they can use to establish themselves as major players facilitating the circular economy – reselling objects to give them a 2nd or 3rd life. Retail brands also enhance their image by becoming involved in issues to do with responsible consumption and the virtues of recycling.
  31. 31. The Halle aux Chaussures and Chaussland join forces with the Relais to collect old shoes The Halles aux Chaussures and Chaussland have set up initiatives to collect shoes in their stores. The initiative has been a huge success: in barely two years, nearly 6 t of shoes have been collected – the equivalent of around 100,000 pairs. Employees from the Relais organise the donation, sorting and then re-sale of shoes (provided they are in good condition) in order to finance its initiatives. The Relais sells 5% to 10% of the items donated in its sixty second-hand Ding-Fring boutiques and exports 30% to 35% of them to Africa where they are then sold by local merchants. Clothes and shoes that are in too poor a state are recycled (transformed into cloths or insulation, for example) and the rest is destroyed (around 15%).
  32. 32. Burton of London relaunches its major dressing room clear Burton of London has renewed its commitment alongside the Restos du Cœur and is relaunching its major Dressing Room Clear campaign in 130 of its stores between 13 and 25 November. In 2012, 177,860 items of clothing were donated as part of the first Major Dressing Room Clear. This redistribution of clothing worked so well because the service was as similar to the one provided in the brand's actual boutiques as possible (presentation, advice, marking alterations, option to try items on in a fitting room, bags, etc.), and the system was implemented in 70 Restos du Coeur centres. The voucher system itself was a success, with nearly 40,000 hot meals served. For each item of warm clothing that they donate, customers will get a booklet of 4 vouchers worth a total value of €50. They can then use these in any of the Burton of London stores in France. The ready-to-wear brand then commits to providing a meal for every voucher used.
  33. 33. Troc'Heures: a website for swapping DIY hours developed by Castorama "You need a hand with some work you're doing and you have some time and/or a certain skill that you can provide: then join the Troc’Heures community, sign up and off you go!", as the retailer states on the homepage of its new service. Castorama is breaking new ground in community and collaborative services. It's likely that – beyond the positive impact on its image – Castorama sees this as a way of encouraging people to start DIY work that they did not feel able to do before (for both technical and financial reasons), and so ultimately of boosting its sales of materials and tools. Each person who signs up is asked to fill in a short presentation, provide their address (essential for geo- locating adverts and exchanges) and specify the skills they have from a range of 25 different categories.
  34. 34. Patagonia recycles clothes In 2005, Patagonia launched its clothing recycling programme. The aim was to make all of its products recyclable by the end of 2010. Since the start of the programme, Patagonia has recycled more than 13,200 pounds of clothing, and has collected much more. Today, more than 41,000 second-hand products are on sale via the Common Threads store on eBay.
  35. 35. Décathlon wants to train people in collaborative consumption with Trocathlon A forerunner – for 28 years. Décathlon actually launched the Trocathlon in 1986. The aim: Help people sell their unused or little-used second-hand sports equipment – bicycles, skis, fitness or horse-riding equipment, etc. Twice a year, Décathlon gets its customers to drop off their unwanted second-hand sports equipment. If what they drop off then gets sold, they receive payment in the form of Décathlon vouchers. The service is completely free and Décathlon does not receive any commission. So sellers receive the whole value of their product and the buyer, who gets equipment, does not have to pay any commission. Customer and user satisfaction can be attributed to the fact that the retailer uses its specialist employees for the operation – they showcase the equipment as best they can, help work out a price for it and then drive the sales – as well as checking the equipment's various safety points before it goes on sale.
  36. 36. Conclusion • Retail is an intermediary profession: it involves a number of assets (customers, retail outlets, information systems, etc.) and it would be legitimate for it to position itself as a link between consumers' new aspirations and these new value proposals. • Retailers are taking collaborative consumption seriously. The initiatives that are already under way have the virtue of already existing, but the various challenges with which they are faced suggest that their deployment should be accelerated – and quickly. • That said, these strategies are not without consequences for retailers' purchasing, marketing and innovation departments. The risk of value being eroded in the event of integration practices being poorly managed should not be overlooked. So does this trend for collaborative consumption in retail represent a marketing/communications opportunity? Or will it have a long-term impact on the economic retail model? Watch this space... Managing Director, Castorama
  37. 37. Contacts Thierry Strickler: t.strickler@altavia-group.com Youmna Ovazza: y.ovazza@altavia-group.com Sarah Gaïsset: s.gaisset@altavia-group.com @AltaviaWatch

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