Click and Collect â delivering online shoppers in-store
Paolo Rangoni, Supply Chain Director, Carrefour Italia Click and Collect – delivering online shoppers in-store • • • • Carrefour Italy – Overview eCommerce scenario in Italy “Clicca e Ritira” in Carrefour Conclusions Carrefour, a key player in Italy retailing 20.000 Employees 2014 Turnover 5 BL€ 1.100 Multi format Stores A multi format network of more than 1.100 stores 10 241 Ipermarkets 57 3 300 145 4 Supermarkets 431 28 12 1 2 9 179 3 84 3 2 3 20 74 Cash & Carry 19 Convenience 617 Click and Collect – delivering online shoppers in-store • • • • Carrefour Italy – Overview eCommerce scenario in Italy “Clicca e Ritira” in Carrefour Conclusions The 20-20, 50-50 rule In 2020 50% of the sales could be Online.. ..and 50% will be Offline With total usage of smartphone P.6 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy E-Commerce adoption as percentage of population 70% 64% 63% 62% 60% 56% 51% 50% 49% 49% 46% 45% 45% 44% 40% 39% 39% 40% 38% 37% 37% 36% 33% 30% 30% 25% 24% 24% 23% 18% 20% 10% 0% Source: global Webindex O4, 2014 P.7 21% Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy 16% 14% Social media and mobile adoption Social Media Use 70% 66% 59% 60% 53% 46% 50% 46% 40% 35% 29% 30% 20% 10% 0% Singapore UK USA Italy China Germany Source: global Webindex O4, 2014 P.8 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Global Average E-Commerce and Mobile commerce adoption as percentage of population 70% 64% 63% 62% 60% 56% 51% 49% 50% 49% 46% 45% 45% 44% 40% 40% 39% 39% 38% 37% 37% 37% 36% 33% 30% 30% 27% 27% 25% 23% 23% 18% 19% 18% 17% 15% 13% 23% 16% 19% 18% 17% 15% 14% 15% 12% 8% 6% 0% Ecommerce Mobile commerce Source: global Webindex O4, 2014 Administration, Finance and S.I. Digital Innovation Direction 15% 16% 14% 14% 11% 10% P.9 24% 21% 20% 20% 24% Carrefour Italy Business Revue Italy 11% 11% 9% 9% Which is the future for brick & mortar retailers, are they loser, competitor or potential partner for ecommerce pure players ? WEBROOMING From RoPo • Research Online • Purchase Offline SHOWROOMING To ToPo • Try Off-line • Purchase Online To avoid the “Showrooming Effect”, traditional retailers must develop a complete omnichannel Strategy. The competition with ecommerce pure players could be supported by a “visible” supply chain. Pure players could be potential partner even because they offer complementary products & services P.10 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy The target is to increase the total sales (new clients) and not to change the channel share P.11 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Click and Collect – delivering online shoppers in-store • • • • Carrefour Italy – Overview eCommerce scenario in Italy “Clicca e Ritira” in Carrefour Conclusions Carrefour in Italy: number one social retailer in 2014 55,6 pt CARREFOUR #1 SUI SOCIAL “Carrefour è l’ insegna più social… grazie a un presidio intensivo di tutte le piattaforme e un numero elevato di interazioni, che conferma la strategia di utilizzare i social media in modo attivo...” 43 pt 39 pt 23 Settembre 2014 “Carrefour is the more sociale brand in 2014… due to an intensive use of all social platforms, high level of interactions confirming the strategy to use actively social media...” P.13 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Many point of entry for client relationship 24/24 7/7 Services / Interaction Click & Collect / Drive Lockers Time Saved P.14 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Our digital strategy leverages on 6 Pillars integrated by the 7th Pillar to provide Unique Customer Experience Unique Customer Experience Empower Sales Channels Innovate Store Image In Store Communication Exploit Preferred Touch Points Customer Engagement & Acquisition Empower IT Backbone HQ Carrefour BOD Anagrafica Clienti Internet Cliente Sito SIR Store Information GPV Astra PdV EasyStore Sc4 Easy Assortimenti Mandala REMA Storeline R10 Catalogo Prodotti Order manag. Shopping List Clicca e Ritira FO Facebook Cliente Digitale Cliente PDV App Promozioni Promo DigitaliSocial Funzioni App (SS,etc..) Immagino Notification 16 25/03/2015 Evoluzione Digitale - Draft 15 “Clicca&Ritira”: The O2O solution 1 2 3 ORDER ONLINE COLLECT IN STORE WITHOUT ADDITIONAL COSTS 4 P.16 SAVING TIME Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Clicca e Ritira P.17 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy “Click and collect” is a typical first step to enter the online channel for brick & mortar retailers to get client satisfaction Reduction of the time to shop Limited “cluttering effect” Order everywhere and everytime No additional Costs Reduction of the impulse purchase P.18 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Even though the additional preparation costs, click & collect is beneficial to brick & mortar retailers Single merchandising management Same pricelist and promotions of the traditional store Same stock of the traditional store Optimization of operations for picking activities along the day No additional fixed cost for logistics Strengthen the client relationship P.19 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Drive, in-store picking and lockers: 3 methods to satisfy different customers’ needs. Alternative or complementary ? Order Online Pick and Pay in: Instore Drive - Opportunity to add items (fresh, items not available online) - Also without car - In store payment P.20 Lockers - High volumes - Car - No opportunity to add items - No parking required - In store payment Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy - H24 delivery - Delivery in transit areas - Single delivery point for online purchases - Online paying The ROI of click and collect vs pure ecommerce Investments Labor Cost Logistic cost Advertising Margin Investment Incremental Revenue Activity Contribution P.21 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy ROI in C&C and Pure E-commerce ROI Max productivity Investment required E-commerce Dedicated WH Dark stores / Drive Volume Optimization Click and collect High Investment Sales P.22 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy Click and Collect – delivering online shoppers in-store • • • • Carrefour Italy – Overview eCommerce scenario in Italy “Clicca e Ritira” in Carrefour Conclusions Key messages Online retail pure players are a threat for traditional retailers Traditional retailers are developing omni-channel strategies to survive Supply chain is a critical success factor to delivery consistent service level to final clients Traditional retailers use stores as delivery points developing click and collect strategy Home delivery could be an option for customer willing to pay for last mile Giving more delivery options to customers represent a distinctive factor The target is to expand sales and not to convert current offline shoppers in online shoppers. A strong CRM on prospects is a key area of investments required to succeed P.24 Administration, Finance and S.I. Digital Innovation Direction Carrefour Italy Business Revue Italy
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