Presentatie 'The Fundoo Case' van Sven De Waele tijdens E-Shop Expo op 19 en 20 maart in Tour & Taxis Brussel.

1. Retail 4.0 – the Fun(doo) case
Omnichannel and multichannel are dead
March 19th, 2014
@joeridewaele
joeri@fundoo.eu
@sven_dewaele
sven@fundoo.eu

2. Who are we
Sven
▪ Partner at Fun & Fundoo
(February 2012)
▪ Partner at Doe Het Zelf mét De Waele
former Fundoo (2005-12)
▪ Consultant at Altran Europe (2001-04)
▪ FT International MBA aan Vlerick (2005)
▪ Master in Industrial management (2004)
▪ Civil engineer computer science (2001)
Joeri
▪ McKinsey MBA ‘08
▪ Civil engineer electromechanics (2005)
▪ Industrial engineer (2002)
▪ Partner at Fun & Fundoo
(February 2012)
▪ Engagement manager and consultant
at McKinsey & Company (2008-12)
▪ Brand manager at Unilever (2005-08)
2

3. 1. Who is Fun(doo)
2. Our core beliefs and challenges
Topics of today
3

4. From... To...
▪ DiY player launched in '80 -ies
▪ Pure offline
▪ Attracting mainly local shoppers
▪ Leisure concept launched sept '12
▪ Retail 4.0 omnichannel model
▪ BeNe business
▪ 28 online stores –
1 offline experience center
Fundoo, launched in sept '12, builds on the family DiY business
and zwembadstore.be („09)
4

5. Fundoo is the anchor of 28 specialised online leisure shops
5
28 shops =
18 in BE +
8 in NL + 1 in FR
+ 1 in DE

6. Fundoo Village launched as interactive experience center for shoppers
who want to touch, see and feel the products
“Fundoo Village” = 2000m2 to
experience, test and get advice
Touch, feel, and see – give
customers opportunity to connect
with their products and inspire them
1
Personal advice – get to talk with
expert advisors for your questions
2
Pick-up point – reserve your
products online and pick-up offline
3
Fundoo‟s offline model covering
3 objectives
6

7. ▪ Objective
– Set up 1 integrated multichannel concept in the market
with a seamless integration of online and offline
– Become leader in leisure in BE
NOTE – presentation today is about fundoo as is not about
the joint entity
Since dec „13 Fundoo has joined forces with Fun to extend our offline
presence and build 1 integrated multichannel leisure concept
7

8. By taking the jump, Fundoo started to play in the “retail 4.0” league...
8

9. We believe “Retail 4.0” is the new way of shopping in an omni-channel
environment
1
2
3
Retail 1.0
Retail 2.0
Retail 3.0
4 Retail 4.0
Total retail:
online = offline
▪ Opening of
hypermarkets eg.
Tesco, Walmart,
Auchan, …
▪ First modern e-
commerce:
– Amazon.com
– Ebay
– Zappos
▪ Best practices
still in
development
▪ First retailers
with self service
▪ Begin 20th
century
▪ ~1950 ▪ ~’1995 ▪ Now
9

10. Fun(doo) is positioned as mix of cross-channel shopping experience
and high customer service
10
Online
category
killer
Offline
shopping
experience
Price
Cross-channel
Shopping
experience
Unique
product
Customer
service
Digital
products
& service
Customizer
SOURCE: booz&co.

11. 11
Online
category
killer
Offline
shopping
experience
Price
Cross-channel
Shopping
experience
Unique
product
Customer
service
Digital
products
& service
Customizer
SOURCE: booz&co.
We believe this is the best positioning when Amazon would ever enter
Belgium

12. 3 core pillars in the Fundoo concept
1 Shopper centric –
Easy & convenient
We don‟t want you
to loose time to get to
the right information
and products @home
Specialist - expert2
We test the products
ourselves and if needed
we bring service@home
Experience in leisure3
We want you to be
inspired online
& offline
12

13. Our ambition
▪ Become a leading
leisure E-tailer in
Belgium
▪ Have ~60 online
shops live by 2015
▪ Expand our physical
network with multiple
stores across Belgium
13

14. Topics of today
14
1. Who is Fun(doo)
2. Our core beliefs and challenges

15. Fun(doo)'s core beliefs and challenges
15
OMNICHANNEL and MULTICHANNEL
are dead
Long live TOTAL RETAIL
▪ # 1 – “Shoppers don't think in channels
anymore – neither should our organisation”

16. The shopper defines the role of each channel and is depending
on the category and specific product (1/2)
16
Via which channel do you think these gocarts are most sold at Fundoo?
Online? Offline?

17. The shopper defines the role of each channel and is depending
on the category and specific product (1/2)
17
Via which channel do you think these gocarts are most sold at Fundoo?
Online Offline

18. The shopper defines the role of each channel and is depending
on the category and specific product (2/2)
Online? Offline?
Via which channel do you think this wood box is most sold at Fundoo?
18

19. The shopper defines the role of each channel and is depending
on the category and specific product (2/2)
19
Via which channel do you think this wood box is most sold at Fundoo?
Phone
Online? Offline

20. Shopper
need
Re-buyResearch Shop/buy Collect Service
Print/
Catalogue/
Online
shop/Mobile
Social
Offline
Offline with
online
integration
Call center/
customer
service
SOURCE: google
▪ In retail 4.0
there is no
online or
offline
purchase
funnel
▪ Customers
mix online
and offline
during
different
stages
of the funnel
G
Browse catalogue
Search
Check with
friends
Inspect
products
Buy
online
Check order
(mobile)
Collect in
store/
at home
Query
installation
instructions
Write review
Check
features
Buy again
Read
reviews
Query
specification
Shoppers do not think in channels anymore
20
Typical omni-channel scenario

21. Our kiosks make it possible to bring a wide assortment
on the offline shopping floor
21
▪ Connecting the online with the offline makes it possible to
– Offer our long tail assortment
– Be a sales information guide during the sales process
▪ Sales process is completely different
▪ Strong category management is critical
650
4,400
Offline
x7
Online Offline
650
X20?
Online
Today Future
Number of SKUs online vs offline, today and future

22. SOURCE: Fundoo
We try to guide our shoppers along the customer journey from
the on to the offline...
Examples on how we guide our shopper to the offline
Shopper
need
Re-buyResearch Shop/buy Collect Service
Appointment module
– an appointment
module on our online
site to plan a visit
(mainly for expensive
products, e.g., sauna
Offer extra
services offline
Offer relevant extra‟s
for offline visits, e.g.,
collect and go in store
and get 10% rebate on
next online order
Create experience events
offline – e.g., cooking
classes, sauna expert
demo sessions, …
From the
online
funnel
Invited
to the
offline
Special promotions
only available in store –
communicated on the
site or via email
22

23. Shopper
need
Re-buyResearch Shop/buy Collect Service
From the
offline
funnel
Invited
to the
online
Receipt – put online
promotion on the
receipt, e.g., 5EUR
rebate on product
and online promo
code PRO123
Extended product
info – push shoppers to
online to give more info
Collect email address
– even if a customer
bought offline connect
with him for future offers
SOURCE: Fundoo research
But also from offline to online!
Reviews – foresee a
review process online
for offline buyers
Examples on how we guide our shopper to the online
23

24. Our online/offline shoppers have the highest value
Online/Offline comparison per fundoo shopper segment
Average
value/
buyer
x1
x3
Pure
online
shoppers
Online-
offline
shoppers
Pure
offline
shoppers
% repeat
x2
1,1
▪ Once the fundoo
shopper went offline
it is much easier
to start selling online
▪ Trust barrier
is gone and shoppers
go for the convenience
driver
▪ Fundoo frequency
for pure offline
shoppers is lower
due to low
network coverage
SOURCE: Fundoo data 24

25. Retail 4.0 still has a couple of challenges
25
Buy offline,
return online
2a
▪ What about the product stock?
Keep in offline stock or send
to online stock?
Buy online,
return offline
2b
▪ Who takes the revenue loss?
Online or offline?
Issues
Loyalty system1
▪ How will you use your loyalty
points online/offline?
Sell online items
in offline shop
3
▪ Who gets the revenue?
Online or offline?
▪ Who takes the handling cost?