Connected Shoppers are revolutionizing retail, and that’s true whatever sector you operate in. For consumer goods, the spotlight is on omnichannel. We believe the time is right for the complex grocery sector to be digitized. At the CGF Global Summit, together with REWE Digital, we discussed how you can maximize omnichannel today and tomorrow, profile different shopper segments, explain where to discover and reach them, and predict future trends. If you want to see if you are equipped to conquer the connected shopper in grocery, take a look at our presentation.

1. 1© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Conquering
the connected
shopper
The 61st Global Summit
of the
Consumer Goods Forum 2017
Jean Jacques Van Oosten | Gerhard Hausruckinger

2. 2© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
RobotsMachine Learning
Webrooming
AugmentedReality
ArticialIntelligence
Showrooming
Automation
Virtual Reality
Smart Home Tech
3DPrinting
Intelligent
Loudspeakers
Drones
Internetof Things
RobotsMachine Learning
Webrooming
AugmentedReality
ArticialIntelligence
Showrooming
Automation
Virtual Reality
Smart Home Tech
3DPrinting
Intelligent
Loudspeakers
Drones
Internetof Things

3. 3© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
At its center is the
connected
shopper

4. 4© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
They do not listen –
for long
5 minutes
sustained attention
span, down from
12 minutes
in 1998
8.25 seconds
focused attention
span, down from
12 seconds
in 2000
9 seconds

5. 5© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
The mobile
device is quickly becoming
their most important
shopping tool
Global
41%Germany
29%
India
77%
China
72%
Britain
36%
Source: GfK Future Buy 2016

6. 6© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Digital natives
Goodenough=OK
Savvycynics
Trusting only peers
Iwantitnow!
Hyper Connected
Multi social media platforms
Expectconstant
innovation
Visuals
Sociallyandbrand
conscious
Sharing > using
Concrete and control
Privacysceptic
Tech
dependent
Virtual > physical
Constant partial attention
© GfK 2017 | Power to the iBrains
Impulsive
Feedback
fanatics
iBrains drive the
Future of
Shopping

7. 7© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
iBrains love their
smart phone
Source: GfK Future Buy 2016
and of course, they use it a lot to shop
47%
66%
iBrains
GenX
41%
65%

8. 8© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
And quite
a few of them
already…
… prefer using their mobile to pay for groceries
27%
39%
iBrains
Gen X
9%
21%
Source: GfK Future Buy 2016

9. 9© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Source: GfK Crossmedia Link Germany, March 2017
iBrains Gen X
8:28:32
10:48:32
20:40:33
6:19:54
0:35:25
1:29:07
9:02:12
10:19:17
2:20:07
10:02:08
0:52:49
0:42:13
0:54:21
0:26:07
Average
hours
per month
per unique user
This is where
you find them
online

10. 10© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
How to engage with
a new kind of shopper,
who pays less
attention but with a
sharper and hyper-
informed eye?
Shift from offering
new things to buy,
to inspiring new
things to do.
1
Shift from telling
your story to starting
an individual
conversation
2
Shift from
perfection to making
it better with
their input.
3

11. 11© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Source: GfK Retail Panel – Jan 16-Dec 16 Sales Value in % | europanel – E-Commerce Update 2016
IT
43.3 32.7 31.5 26.5 21.9 17.8
1.7
Small Domestic
Appliances
Photo Telecommu-
nications
Consumer
Electronics
Major Domestic
Appliances
FMCG
Share of
online purchases
in Germany

12. 12© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Source: europanel – E-Commerce Update 2016
The state of e-food
globally
7.7 7.3 5.7 5.7 5.5
69.4 27.3 49.3 54.6 26.2
3.2
30.4
2.2
11.8
2.6
22.1
2.3
33.2
2.0
24.5
1.7
24.7
1.7
19.4
1.7
18.4
e-commerce
penetration (%)
Share of online
revenue

13. 13© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Exclusive -
buyers offline
83%
Source: GfK ConsumerPanel (CP+) 30.000 Households Germany, FMCG, 2016, analysis based on continuous sample
The spotlight is on
the omnichannel
shopper
Omnichannel
buyers online
and offline
17%
Represent Represent
of all expenses
21%79%
of all expenses

14. 14© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum

15. 15© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Supply chain
Basket
Margins
Local Products
Grocery is a
complex
business

16. 16© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
The conditions
are right for the
grocery sector to be
digitalized
Technology EfficienciesCustomers

17. 17© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Perfect
warehouse
Worldwide
15,000 stores
are an asset
Close to
customers USP

18. 18© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
UK benchmark:
Omnichannel
customers
increase the
average basket
ø basket
×2

19. 19© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Path of
omnichannel
Big Data
Content
Loyalty

20. 20© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Secret of
omnichannel
Combine DNA
of stores and online
to create the perfect
omnichannel
experience

21. 21© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Omnichannel
at REWE

22. 22© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Ready for
what’s ahead?

23. 23© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
When it comes
to omnichannel –
what are your
most burning
topics?
Implementing
economically
viable new ideas
Recruiting
and retaining
top talents
Moving fast
enough with
innovative
concepts
Understanding
shoppers, esp.
generational
differences
Spotting big
global market
trends
Understanding
and leveraging
new technologies
1 2 3
4 5 6
Please
vote!

24. 24© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Please vote!
How ready
are you for the
Connected
Shopper?
1
Not at all
10
Fully prepared
in all areas
Scale from 1 – 10

25. 25© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Results from the
audience

26. 26© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
Conclusion
Think
long-term
Move fast
No
compromises

27. 27© GfK June 21, 2017 | The 61st Global Summit of the Consumer Goods Forum
THANK YOU