5 mega trends for retail

!1http://www.linkedin.com/in/laurentdeteneuille

2014, october 17

!2

WITHIN THE BNP PARIBAS GROUP, BNP PARIBAS PERSONAL FINANCE IS A PARTNER TO PRIVATE INDIVIDUELS FOR THEIR DAILY BUDGETING NEEDS (CONSUMER CREDIT, HOME LOANS,

SAVINGS AND INSURANCE PRODUCTS). THE COMPANY IS PRESENT IN MORE THAN 20 COUNTRIES ON 4

CONTINENTS AND EMPLOYS OVER 16,000 PEOPLE.

A PRIVILEGED PARTNERSHIP WITH RETAILERS

For more than 60 years, BNP Paribas Personal Finance has supported the growth of a number of small and large retail groups, together with their franchises, affiliates and incorporated companies, both in France and around the world.

Our partnership policy is geared towards offering the end customers of all our partners, in every country, the financing solutions that best suit their needs.

• Key figures as of 31 December 2012

• Outstanding loans under management: €122,9bn

• Earnings before tax: € 1.280bn as of 31 December 2012

• Net Banking Income: € 4.982bn as of 31 December 2012

• 12.75% of the BNP Paribas Group’s net banking income

• 20 million customers

5 mega trends for retail

!3http://www.linkedin.com/in/laurentdeteneuille

2014, october 17

1 Back to store

!4

According to Blake Nordstrom, offering a first rate experience in-store is even more important as a growing number of shoppers embrace m-commerce. Adding shops must respond by giving customers compelling reasons to shop in physical locations. Back to the store stream : the physical place a “first rate experience".

According to Rick Caruso, "It’s the experience around [in-store] that leads to connection and community, all wrapped up in glamorous service" “While online is still a critical part of the retail ecosystem, people forego online shopping in favor of the atmosphere created by the brick and mortar store"

Brick & Mortar : The place to socialize >Creating an experience that is magical and memorable, over the transaction. Need for community ›Relaxation ›Physical retail is crucial for fulfilling the need for connection and community People are looking for more human interaction ›Hospitality needs to be front and center and the store is the physical embodiment of who they are

!5

2 Mobile Commerce Comes to

the Store !6

Moving Beyond Omni-channel: “Be Channel Agnostic” Customers no longer recognize the existence of channels About 7% of U.S. retail spending is online… the rest is offline. About 40% of that —to the tune of almost $2 trillion —is influenced online and in mobile

"I have never understood why we call a s tore a non-d ig ital channel, because there is quite a lot of digital technology in a store.” —John Davison, Gartner, NRF 2014

" I d o n ’t u s e t h e w o r d omnichannelretail. If you have to call it something, maybe channel agnostic is best.” —Jeff Roster, Gartner

!7

3 Personalization

!8

"We are here not just for a great retail experience, but to make sure it’s a lasting company that’s going to survive a long time.” —Julie Bornstein, Sephora, SVP of Digital

Color IQ is a shade matching service that takes a photo of the skin with a special tool that reveals the true skin tone and assigns it a Color IQ number •By using the ID number the customer can find the perfect shade match in a wide variety of goods (makeup, …) from different brands that Sephora has already indexed.

"Me-Ality is taking its consumer offerings to the next level by syncing our techno logy to recommend the expertly curated d e n i m s t y l e s o f f e r e d a t Bloomingdale’s” T. Shaw, CEO Me-Ality Me-Ality is a complimentary service that helps shoppers find what fits, fast. After a quick scan in a Size-Matching Station, shoppers can find their best fitting styles from over 150 brands with categories including tops, sweaters, pants, jeans, skirts and more. Each of the personal recommendations is selected to fit and flatter the customer unique shape

Provide unique, personalized experiences both online and in-store ›Combine the conveniences of online shopping with a personalized and contextualized in-store experience Combine the experience : Mobile devices will give retailers another channel to deliver more personalized, contextualized and targeted loyalty promotions to their customers > Combining mobility and loyalty will shape and enhance the future customer experience

!9http://m.youtube.com/watch?v=B3MTRXM6Clw

4 Empowering the work force

for success !10

Va r i e t y o f d e v i c e s t o c o m m u n i c a t e , t o s h a r e -information in real-time, in-store, while a customer face-to-f a c e c o n t e x t , t o a c c e s s productivity-enhancing Apps > Task management tools > Push-to-talk > Price look-up > Stock availability > Up/Cross sell proposition, ....

The Connected Vendor (sales Associates) : > a real player in the omnichannel s trategy > Connects Retail Teams to Each Other and Customers is a way to empower vendors–Importance of t r a i n i n g – I n v o l v e m e n t –Reassurance–Advice, expertise, ...

New applications put real-time customer data into the hands of store vendors, which can lead to greater in-store conversion, increased cross/upselling & improved customer experience

!11

5 Analytics in Retail

!12

Fortunately, the acknowledgment of the potential for leveraging this data to predict and prepare for potential future purchases is very significant. But retailers are still in a learning curve phase, for most of them.

In a step-by-step approach, i m p r o v e m e n t s i n d a t a segmentation is a key driver. Helping to decode the behavior and the (hidden) needs of customer, it allows retailers - for a start - to deliver a better customer experience, through, for instance consistent, contextual and personalized offers.

Analytics in Retail are a key lever to predict and prepare for future purchases Retailers began to realize that consumer intelligence is every bit as useful in understanding purchasing behavior as usual transactional data. Above all, mobile, tablets and social media has accelerated the growth of customer data new stream. Then, Omnichannel issue is one of the greatest challenges of high-volume retailers in the next years.

!13

!14

Some case studies

!15

•Macy’s is the first large retailer to launch a limited pilot of an indoor positioning, with the solution called ShopBeacon” •Macy’s is installing Beacon transmitters throughout 2 stores.

“ShopBeacon” can : •Welcome a shopper when she enters a store and show her location-specific •Push special offers and recommendations: discounts, recommendations and rewards without her having to remember to open the app

!16

•Me-Ality is a complimentary service that helps shoppers find what fits, fast. •After a quick scan in a Size-Matching Station, shoppers can find their best fitting styles from over 150 brands with categories including tops, sweaters, pants, jeans, skirts and more. •Each of the personal recommendations is selected to fit and flatter the customer unique shape

http://www.me-ality.com/fit-solutions

BRAND - ldentifying fit lines/body types targeted by a brand STYLE - The fit line within a brand (eg. slim, regular, etc.) SKU - The fit line within a style (eg. skinny low rise, skinny mid-rise, etc.) FABRIC - Fabric blends and overall stretches (eg. cotton, nylon, viscose, etc.) COLOR - Rinses and finishes

http://www.huffingtonpost.com/2013/04/13/me-ality-machine-perfect-fit-jeans-video_n_3076359.html

Reduced returns rates by much as 84%

!17

« MySephora » App’ Vendors scan client’s loyalty card and access to all client’s information •Purchase historic, average basket,

•Preferred Brands/Goods, type of the

skin, with the Color IQ system

•Loyalty offer : promotion, points,

coupons..

→Vendors have more information to push personalized offers to the client →Vendors can add the customer’s on proposed product Vendor can also fill up client’s missing information (e-mail, phone

!18

Darty ‘Click & Connect’ • Book on darty.com • Receives a specific SMS code • Go to the click& collect booth, Dial the code and Get back the goods

‘GoMcDo’ solution 0. Enrollment 1.Order and payment initiated on the website or on mobile •Payment by bank card or PayPal .Reception of the dedicated # Order or QR code 2. Go to the ‘Easy Check-in’ Kiosk dial ‘# Order’ or Flash the QR Code 3. Get back order at the dedicated booth

New Fnac’ App •Buy product on mobile •Geolocator tool •Search Engine •Wishlist •Online order historic •Goods follow-up

•An App’ which scan all product’s bar code (in store) to obtain more information

E.Leclerc - Flashiz in App A first pilot in France with Leclerc hypermarket • A grey label mobile app «flash payment», part of their global brand Apps ecosystem : “Mon Leclerc” • This solution already tested in six hypermarkets and on the website , possibility to scan a QR code to pay via mobile (Remote/ Proximity)

!19

Retailer’s business stakes

Traffic in store: Offers to attract the customer in. store…whatever the customer path (agnostic channel)

Repeat business: Services and solutions to bring the customer back: •Loyalty programs •Convenience usage •Memorable experiences

Keep the client in his business eco system: Add new models to keep the client in his eco system, Goods delivery models (home, store, drive,…), Mobile Payment and Mobile wallet, etc

!20

Useful mapping of the positive and negative emotions and sensory cues. Interesting method of mapping the touchpoints against the phases.

CONCLUSION Back to the Store It seems anachronic! But, after the era of sole store and then the era of the full Digital shift, the market positions the store at the heart of the customer experience, lever to create social and local experiences that are magical & memorable Customer is nowadays Channel Agnostic Mobile comes to invite the customer experience, but customers no longer recognize the existence of channels The issue is no longer “omnichannel”, it is “to be channel agnostic" Personalization of the customer experience Provide tailored services & personalized experiences both online and instore, is a key driver and a way to deliver consistent, contextual and personalized offers in order to keep the customer more and more loyal and engaged. Create emotional cus tomer exper ience is a key factor of your Brand Differenciation & Brand Unique Selling Proposition

!21

Illustration inspiration, in particular : How Arts and Design can influence Retail industry driving 21st-century innovation, fostering and embodying a new way to shop and to live new emotional experiences http://www.madmuseum.org/ The Museum of Arts and Design (MAD) in NY, champions contemporary makers across creative fields, presenting artists, designers, and artisans who apply the highest level of ingenuity and skill to their work. Sculptures de l'artiste japonais Tomoaki Suzuki, musée d'art contemporain de Bordeaux

My own decoding after attending NRF 2014 Retail's BIG Show, NY. http://bigshow14.nrf.com/ Retail’s BIG Show, is the flagship industry event of the National Retail Federation (NRF). It is the world's leading annual retail event -a 102-year history event -bringing together 27,000 retail professionals and vendors from more than 80 countries for educational and networking opportunities The convention includes 125 education sessions, nearly 300 speakers, and more than 500 exhibitors Worldwide

!22

Laurent De TENEUILLE, is a payment industry executive focused on customer experience and innovation in retail, and marketing/financial/payment services. Nowadays, Laurent is Head of Retail Innovation, in a personal finance company, owned by a global banking group. Also, he contributes to several forum and innovation ecosystem networks, in order to change the consumer way to shop by fostering innovation, in payment and retail industries. Prior to that, Laurent joined the Galeries Lafayette Group - at LaSer, a financial and marketing services branch - where he developed his skills in the areas of B2B2C partnership, business development, innovative customer relationship and experience practices... Focus: Innovation in action, Business Development, Customer experience in Retail industry, BtoBtoC business model in Payment/Financial & Marketing Services. http://www.linkedin.com/in/laurentdeteneuille

!23