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E commerce, the big challenge

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Trends of eCommerce 2019, New Retail, Phygital and delivery robots.

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E commerce, the big challenge

  1. 1. eCommerce, The Big Challenge @mercantiguerin - 2019
  2. 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
  3. 3. Retail is changing
  4. 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. 5. Retail 2020, Black Mirror is in our stores @mercantiguerin Retail_2020_5_Technologies_that_will_change_the_way _you_shop-iRvaWHk3A8
  6. 6. eCommerce Giants Figures and trends Source : https://www.digitalcommerce360.com/article/global-ecommerce-sales/
  7. 7. Marketplaces Pure or hybride E-Commerce Leaders E-Commerce Platform New Entrants
  8. 8. 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/
  9. 9. 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/
  10. 10. 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/
  11. 11. 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/
  12. 12. eCommerce Giants are mostly chinese BUT less profitable than Amazon @mercantiguerin
  13. 13. At the moment @mercantiguerin
  14. 14. @mercantiguerin
  15. 15. https://www.fact-finder.com/blog/2019/01/28/amazon-vs-alibaba/ @mercantiguerin
  16. 16. A fierce competition between actors @mercantiguerin
  17. 17. Amazon failed because… https://www.fact-finder.com/blog/2019/01/28/amazon-vs-alibaba/ @mercantiguerin
  18. 18. But game is not over… Cross-border is THE solution Source : TechCrunch @mercantiguerin
  19. 19. https://services.amazon.com/global-selling/how-it-works.html/ref=asus_ags_snav_how @mercantiguerin
  20. 20. Tencent, a global gaming company, a social media company but not an e-commerce company @mercantiguerin New entrants
  21. 21. 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
  22. 22. Smart Retail, Phygital
  23. 23. New Retail, why not to leave near an hema store ? Source : CNBC @mercantiguerin
  24. 24. Store of the future @mercantiguerin
  25. 25. Fast delivery = Key Success Factor @mercantiguerin
  26. 26. Offline is changing Online and not the other way around ? In China @mercantiguerin
  27. 27. Online/ Offline…Night and Day…Mobile…Express Orders @mercantiguerin
  28. 28. Phygital experience in France (1) Digital transformation @mercantiguerin
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35. Smart phygital, illustrations NFC TECHNOLOGY Discount vouchers Customer journey • https://www.youtube.com/watch?v=NuovaeJLRo0 FRANPRIX @touristtracking CAPITALDATA @mercantiguerin
  36. 36. Marketing is changing as consumers do (1) @mercantiguerin
  37. 37. Media landscape is shaken by social media and web (2) @mercantiguerin
  38. 38. A mobile-first approach to marketing before AI, IOT and Blockchain (3) @mercantiguerin
  39. 39. Data everywhere Source La Tribune @mercantiguerin
  40. 40. 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
  41. 41. With the main role of DMP Source : Programmatic RTB DMP, more than 40% of advertisers @mercantiguerin
  42. 42. E-Logistics
  43. 43. https://www.alizila.com/alibabas-new-system-expedites-digital-transformation/ Consumer of the future
  44. 44. https://www.alizila.com/video/this-is-how-chinas-largest-automated-warehouse-works/ Warehouse of the future @mercantiguerin
  45. 45. 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
  46. 46. 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
  47. 47. Autonomous car @mercantiguerin
  48. 48. Delivery drone is ready but still expensive. Retractable roof Drone inside a truck, 2017 Amazon, october 2014, Germany @mercantiguerin
  49. 49. Collaborative delivery @mercantiguerin
  50. 50. Delivery robots Starship Technology founded by the inventors of Skype, 2014 Scout, Amazon Robot, 2019 @mercantiguerin
  51. 51. 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
  52. 52. 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
  53. 53. Exotec for CDiscount https://www.exotecsolutions.com/ @mercantiguerin
  54. 54. Picking done by robots Nomagic.ai Machine Learning @mercantiguerin
  55. 55. Integration with online store, Sendcloud, https://www.sendcloud.com/how-it-works/ @mercantiguerin
  56. 56. Business Intelligence with Tableau @mercantiguerin
  57. 57. 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
  58. 58. 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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