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eCommerce, The Big Challenge
@mercantiguerin - 2019
Agenda
• Introduction : Concept Centricity
• Retail is changing
Part 1. eCommerce Giants, America versus China
Part 2. New trends, Phygital and Smart Retail
Part 3. eLogistics
@mercantiguerin
Retail is changing
Basis concepts
ROPO
Programmatic
Conversion
rates
Funnel
Third Party
Data
Consumer
experience
Tracking
Brand touch points
Trigger
Marketing
Bounce Rate Persona
Call to Action
Landing Page
Brick and
clic store
Market Place
AI
@mercantiguerin
Dropshipping
Affiliation
Retail 2020, Black Mirror is in our stores
@mercantiguerin
Retail_2020_5_Technologies_that_will_change_the_way
_you_shop-iRvaWHk3A8
eCommerce Giants
Figures and trends
Source : https://www.digitalcommerce360.com/article/global-ecommerce-sales/
Marketplaces
Pure or
hybride
E-Commerce
Leaders
E-Commerce
Platform
New Entrants
Consumers worldwide purchased $2.86 trillion on the
web in 2018, up from $2.43 trillion the previous year,
according to our early projections.
This would be a slowdown from 2017, when global web
sales grew 21.3% year over year from $2.00 trillion in
2016, according to Internet Retailer’s estimates.
https://www.digitalcommerce360.com/article/global-ecommerce-sales/
A big part of the increase in online shopping in China
came from consumers living outside of China’s big
cities. Those shoppers increased their online purchases
by 39% in 2017 to 1.245 billion yuan ($199 billion),
representing more than 17% of total web purchases.
https://www.digitalcommerce360.com/article/global-ecommerce-sales/
Large retailers like eBay Inc. and Alibaba Group
Holding Ltd.’s Taobao and Tmall sites are excluded
from these rankings since they operate as pure
marketplaces in that they don’t own any inventory—
rather just offer up their platform for third parties.
https://www.digitalcommerce360.com/article/global-ecommerce-sales/
With $1.55 trillion sold in 2017 on just the top 75
marketplaces, according to Internet Retailer
estimates, companies operating with this business
model are blowing away other retailers across the
globe. China’s Alibaba Group reported that the value
of goods sold on its big Chinese marketplaces,
Taobao and Tmall, totaled $740.86 billion in 2017.
https://www.digitalcommerce360.com/article/global-ecommerce-sales/
eCommerce Giants are mostly chinese BUT less
profitable than Amazon
@mercantiguerin
At the moment
@mercantiguerin
@mercantiguerin
https://www.fact-finder.com/blog/2019/01/28/amazon-vs-alibaba/
@mercantiguerin
A fierce competition between actors
@mercantiguerin
Amazon failed because…
https://www.fact-finder.com/blog/2019/01/28/amazon-vs-alibaba/
@mercantiguerin
But game is not over…
Cross-border is
THE solution
Source :
TechCrunch
@mercantiguerin
https://services.amazon.com/global-selling/how-it-works.html/ref=asus_ags_snav_how
@mercantiguerin
Tencent, a global gaming
company, a social media
company but not an e-commerce
company
@mercantiguerin
New entrants
Pinduoduo is the C2S2B’s (customer
to supply chain to business) S
(supply chain) ring: it collects data
from customer side, and reflect to the
business, or so-called production
side, which leads to a simplified
goods distribution from business side
to customer side, reduce the financial
pressure generated from inventory
and information asymmetry, and
satisfy consumers with consumption
need. Pinduoduo is beyond a supply
chain. Being an e-commerce
platform, Pinduoduo is able to
reallocate resources and find the
optimized solution for commercial
activities for its users.
Source : Equalocean
Smart Retail, Phygital
New Retail, why not to leave near an hema store ?
Source : CNBC
@mercantiguerin
Store of the future
@mercantiguerin
Fast delivery = Key Success Factor
@mercantiguerin
Offline is changing Online and not the other way
around ? In China
@mercantiguerin
Online/ Offline…Night and Day…Mobile…Express
Orders
@mercantiguerin
Phygital experience in France (1)
Digital
transformation
@mercantiguerin
Phygital experience in France (2) = 4casino
Intended to amuse shoppers, this
showcase is an augmented mirror
on which are added characters
and animals that play with the
silhouette of walkers.
Source : Business
Insider France
@mercantiguerin
The labels on the shelf
display a lot of information.
You can see at a glance
whether the product is
organic or gluten-free, and
if so, its nutritional score.
A QR code to be scanned
allows you to obtain even
more information about the
product.
@mercantiguerin
To use the cashless
payment system, the
customer must scan his
own products, such as
this 900 ml bottle of
apple and mango fruit
juice at 3.11 euros.
@mercantiguerin
Customer must be registered on
the Casino Max application and
pass his smartphone in front of
the reader to pass through the
gate and make night purchases.
@mercantiguerin
This wall of screens
allows you to complete
your shopping basket
with the 300 most
popular items sold by
Casino drive in Paris.
With a few clicks, you
can choose your
products, scan their
barcodes and add them
to a shopping cart via a
mobile application.
@mercantiguerin
Another gadget, a bright wall
to choose your bottle. You can
select a few characteristics on
a shelf, for example if it is
more for an aperitif or
digestive, if you like peated
whisky or not... and the
niches light up on the wall to
offer a selection of bottles.
@mercantiguerin
Smart phygital, illustrations
NFC TECHNOLOGY
Discount vouchers
Customer journey
• https://www.youtube.com/watch?v=NuovaeJLRo0
FRANPRIX
@touristtracking
CAPITALDATA
@mercantiguerin
Marketing is changing as consumers do (1)
@mercantiguerin
Media landscape is shaken by social media and web
(2)
@mercantiguerin
A mobile-first approach to marketing before AI,
IOT and Blockchain (3)
@mercantiguerin
Data everywhere
Source La
Tribune
@mercantiguerin
Omnichannel, customer acquisition and retention
Media
CTR and
communication
effectiveness
Sales
Web-to-Store
tracking
New
KPI Loyalty card program
DMP
Look alike modeling
@mercantiguerin
With the main role of DMP
Source : Programmatic
RTB
DMP, more than
40% of advertisers
@mercantiguerin
E-Logistics
https://www.alizila.com/alibabas-new-system-expedites-digital-transformation/
Consumer of the
future
https://www.alizila.com/video/this-is-how-chinas-largest-automated-warehouse-works/
Warehouse of the future
@mercantiguerin
A significative influence of New Retail on e-
logistics
• More than one billion parcels in France in 2020 compared to 500 million in 2017
(Fevad)
• Multiple constraints
• Shorter and shorter delivery times (AMAZON Prime Now in one hour)
• New practices such as product return or home fitting
• A store that is no longer used for its ability to sell but regarded as a place of delivery
@mercantiguerin
High degree of automation
Order management, a part of
customer experience
Higher shipping delivery costs
63% of buyers would be
willing to increase their
shopping cart to benefit
from free local delivery.
38% expect to be delivered
by drone in the near future.
33% have abandoned more
than a quarter of their
basket due to delivery
problems
@mercantiguerin
Autonomous car
@mercantiguerin
Delivery drone is ready but still expensive.
Retractable roof
Drone inside a truck, 2017
Amazon, october 2014,
Germany
@mercantiguerin
Collaborative delivery
@mercantiguerin
Delivery robots
Starship Technology founded
by the inventors of Skype,
2014
Scout, Amazon Robot,
2019
@mercantiguerin
Dash Robotic Shopping Cart
https://www.usine-digitale.fr/article/video-un-robot-chariot-vous-suivra-t-il-bientot-a-la-trace-pour-faire-les-
soldes.N400747
5elementsrobotics in
collaboration with
Wallmart
@mercantiguerin
The digitalization of warehouses under pressure of
e-commerce
43% of e-merchants will invest in 2020 to automate order preparation
New delivery standards, free of charge, less than 24 hours, free return
Warehouse robots, the most important growth sector in the professional services robots
market
175,000 robotics applications deployed by 2019
Facial recognition
Source : sitepronews
@mercantiguerin
Exotec for CDiscount https://www.exotecsolutions.com/
@mercantiguerin
Picking done by robots
Nomagic.ai
Machine Learning
@mercantiguerin
Integration with online store, Sendcloud,
https://www.sendcloud.com/how-it-works/
@mercantiguerin
Business Intelligence with Tableau
@mercantiguerin
Abercrombie and Tableau
• Timeliness is critical to compete in retail and Abercrombie now better understands its
merchandise product sales results, as Tableau Server facilitates nearly 6,000 queries
across at least 600 people weekly.
• The company can now more quickly identify customer purchasing preferences by selling
location.
• For any retailer, placing inventory before demand is tricky. Retailers must accurately
predict seasonal desired styles and features before a customer sees the product. If they
predict incorrectly, it may mean overstock on shelves and in distribution centers or having
product that doesn’t match customer preferences.
• Using Tableau, merchandising product teams can effectively track sales (size, color, and
style), which helps in planning where to place inventory, as well as see what product is in
or out of stock. There are shipped sales—sales that occur when a transaction is accounted
for—and then there are demand sales—when a customer indicates their intent to buy
online and creates demand. Tableau empowers the product teams to take a rear-facing
view and alternate between ship or demand sales.
@mercantiguerin
And the futur of eCommerce is BLOCKCHAIN
• To read
• https://hackernoon.com/blockchain-will-kill-traditional-e-commerce-heres-why-4cc07a2f4c06
• https://www.appseconnect.com/blockchain-affect-on-ecommerce-industry/
What do you think about this vision of eCommerce with Blockchain ?
How would Blockchain disrupt eCommerce ?
@mercantiguerin

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E commerce, the big challenge

  • 1. eCommerce, The Big Challenge @mercantiguerin - 2019
  • 2. Agenda • Introduction : Concept Centricity • Retail is changing Part 1. eCommerce Giants, America versus China Part 2. New trends, Phygital and Smart Retail Part 3. eLogistics @mercantiguerin
  • 4. Basis concepts ROPO Programmatic Conversion rates Funnel Third Party Data Consumer experience Tracking Brand touch points Trigger Marketing Bounce Rate Persona Call to Action Landing Page Brick and clic store Market Place AI @mercantiguerin Dropshipping Affiliation
  • 5. Retail 2020, Black Mirror is in our stores @mercantiguerin Retail_2020_5_Technologies_that_will_change_the_way _you_shop-iRvaWHk3A8
  • 6. eCommerce Giants Figures and trends Source : https://www.digitalcommerce360.com/article/global-ecommerce-sales/
  • 8.
  • 9. Consumers worldwide purchased $2.86 trillion on the web in 2018, up from $2.43 trillion the previous year, according to our early projections. This would be a slowdown from 2017, when global web sales grew 21.3% year over year from $2.00 trillion in 2016, according to Internet Retailer’s estimates. https://www.digitalcommerce360.com/article/global-ecommerce-sales/
  • 10.
  • 11.
  • 12. A big part of the increase in online shopping in China came from consumers living outside of China’s big cities. Those shoppers increased their online purchases by 39% in 2017 to 1.245 billion yuan ($199 billion), representing more than 17% of total web purchases. https://www.digitalcommerce360.com/article/global-ecommerce-sales/
  • 13. Large retailers like eBay Inc. and Alibaba Group Holding Ltd.’s Taobao and Tmall sites are excluded from these rankings since they operate as pure marketplaces in that they don’t own any inventory— rather just offer up their platform for third parties. https://www.digitalcommerce360.com/article/global-ecommerce-sales/
  • 14. With $1.55 trillion sold in 2017 on just the top 75 marketplaces, according to Internet Retailer estimates, companies operating with this business model are blowing away other retailers across the globe. China’s Alibaba Group reported that the value of goods sold on its big Chinese marketplaces, Taobao and Tmall, totaled $740.86 billion in 2017. https://www.digitalcommerce360.com/article/global-ecommerce-sales/
  • 15.
  • 16. eCommerce Giants are mostly chinese BUT less profitable than Amazon @mercantiguerin
  • 20. A fierce competition between actors @mercantiguerin
  • 22. But game is not over… Cross-border is THE solution Source : TechCrunch @mercantiguerin
  • 24. Tencent, a global gaming company, a social media company but not an e-commerce company @mercantiguerin New entrants
  • 25. Pinduoduo is the C2S2B’s (customer to supply chain to business) S (supply chain) ring: it collects data from customer side, and reflect to the business, or so-called production side, which leads to a simplified goods distribution from business side to customer side, reduce the financial pressure generated from inventory and information asymmetry, and satisfy consumers with consumption need. Pinduoduo is beyond a supply chain. Being an e-commerce platform, Pinduoduo is able to reallocate resources and find the optimized solution for commercial activities for its users. Source : Equalocean
  • 27. New Retail, why not to leave near an hema store ? Source : CNBC @mercantiguerin
  • 28. Store of the future @mercantiguerin
  • 29. Fast delivery = Key Success Factor @mercantiguerin
  • 30. Offline is changing Online and not the other way around ? In China @mercantiguerin
  • 31. Online/ Offline…Night and Day…Mobile…Express Orders @mercantiguerin
  • 32. Phygital experience in France (1) Digital transformation @mercantiguerin
  • 33. Phygital experience in France (2) = 4casino Intended to amuse shoppers, this showcase is an augmented mirror on which are added characters and animals that play with the silhouette of walkers. Source : Business Insider France @mercantiguerin
  • 34. The labels on the shelf display a lot of information. You can see at a glance whether the product is organic or gluten-free, and if so, its nutritional score. A QR code to be scanned allows you to obtain even more information about the product. @mercantiguerin
  • 35. To use the cashless payment system, the customer must scan his own products, such as this 900 ml bottle of apple and mango fruit juice at 3.11 euros. @mercantiguerin
  • 36. Customer must be registered on the Casino Max application and pass his smartphone in front of the reader to pass through the gate and make night purchases. @mercantiguerin
  • 37. This wall of screens allows you to complete your shopping basket with the 300 most popular items sold by Casino drive in Paris. With a few clicks, you can choose your products, scan their barcodes and add them to a shopping cart via a mobile application. @mercantiguerin
  • 38. Another gadget, a bright wall to choose your bottle. You can select a few characteristics on a shelf, for example if it is more for an aperitif or digestive, if you like peated whisky or not... and the niches light up on the wall to offer a selection of bottles. @mercantiguerin
  • 39. Smart phygital, illustrations NFC TECHNOLOGY Discount vouchers Customer journey • https://www.youtube.com/watch?v=NuovaeJLRo0 FRANPRIX @touristtracking CAPITALDATA @mercantiguerin
  • 40. Marketing is changing as consumers do (1) @mercantiguerin
  • 41. Media landscape is shaken by social media and web (2) @mercantiguerin
  • 42. A mobile-first approach to marketing before AI, IOT and Blockchain (3) @mercantiguerin
  • 44. Omnichannel, customer acquisition and retention Media CTR and communication effectiveness Sales Web-to-Store tracking New KPI Loyalty card program DMP Look alike modeling @mercantiguerin
  • 45. With the main role of DMP Source : Programmatic RTB DMP, more than 40% of advertisers @mercantiguerin
  • 49. A significative influence of New Retail on e- logistics • More than one billion parcels in France in 2020 compared to 500 million in 2017 (Fevad) • Multiple constraints • Shorter and shorter delivery times (AMAZON Prime Now in one hour) • New practices such as product return or home fitting • A store that is no longer used for its ability to sell but regarded as a place of delivery @mercantiguerin
  • 50. High degree of automation Order management, a part of customer experience Higher shipping delivery costs 63% of buyers would be willing to increase their shopping cart to benefit from free local delivery. 38% expect to be delivered by drone in the near future. 33% have abandoned more than a quarter of their basket due to delivery problems @mercantiguerin
  • 52. Delivery drone is ready but still expensive. Retractable roof Drone inside a truck, 2017 Amazon, october 2014, Germany @mercantiguerin
  • 54. Delivery robots Starship Technology founded by the inventors of Skype, 2014 Scout, Amazon Robot, 2019 @mercantiguerin
  • 55. Dash Robotic Shopping Cart https://www.usine-digitale.fr/article/video-un-robot-chariot-vous-suivra-t-il-bientot-a-la-trace-pour-faire-les- soldes.N400747 5elementsrobotics in collaboration with Wallmart @mercantiguerin
  • 56. The digitalization of warehouses under pressure of e-commerce 43% of e-merchants will invest in 2020 to automate order preparation New delivery standards, free of charge, less than 24 hours, free return Warehouse robots, the most important growth sector in the professional services robots market 175,000 robotics applications deployed by 2019 Facial recognition Source : sitepronews @mercantiguerin
  • 57. Exotec for CDiscount https://www.exotecsolutions.com/ @mercantiguerin
  • 58. Picking done by robots Nomagic.ai Machine Learning @mercantiguerin
  • 59. Integration with online store, Sendcloud, https://www.sendcloud.com/how-it-works/ @mercantiguerin
  • 60. Business Intelligence with Tableau @mercantiguerin
  • 61. Abercrombie and Tableau • Timeliness is critical to compete in retail and Abercrombie now better understands its merchandise product sales results, as Tableau Server facilitates nearly 6,000 queries across at least 600 people weekly. • The company can now more quickly identify customer purchasing preferences by selling location. • For any retailer, placing inventory before demand is tricky. Retailers must accurately predict seasonal desired styles and features before a customer sees the product. If they predict incorrectly, it may mean overstock on shelves and in distribution centers or having product that doesn’t match customer preferences. • Using Tableau, merchandising product teams can effectively track sales (size, color, and style), which helps in planning where to place inventory, as well as see what product is in or out of stock. There are shipped sales—sales that occur when a transaction is accounted for—and then there are demand sales—when a customer indicates their intent to buy online and creates demand. Tableau empowers the product teams to take a rear-facing view and alternate between ship or demand sales. @mercantiguerin
  • 62. And the futur of eCommerce is BLOCKCHAIN • To read • https://hackernoon.com/blockchain-will-kill-traditional-e-commerce-heres-why-4cc07a2f4c06 • https://www.appseconnect.com/blockchain-affect-on-ecommerce-industry/ What do you think about this vision of eCommerce with Blockchain ? How would Blockchain disrupt eCommerce ? @mercantiguerin