Business-to-Consumer ( B2C) Training October 2012

1. Business-to-Consumer • (B2C) • Training • October 2012

2. Who’s who?

3. How expert in B2C do you feel?

4. What are your needs?

5. Objectives This course will introduce you GS1 Business-to-Consumer (B2C) so you can: • Understand market trends driving B2C • Align with the global GS1 Source Project • Make the right business and technical decisions to set up a local data aggregator • Engage your local stakeholders • Create an action plan to roll-out B2C in your country

6. Agenda • Introduction • Module 1: Understand your B2C market • Module 2: Develop your B2C value proposition • Module 3: Deliver value for B2C • Module 4: Action Plan • Conclusions

7. GS1 Marketing Framework

8. Module 1: Understand your B2C market

9. Who are B2C stakeholders?

10. Stakeholder List • Consumers • Manufacturers • Retailers • Application Developers • Governments • Data Pools • Associations: industry, consumer • …

11. Consumer Trends • Technology Adoption • Health and Wellness • Ageing population • Budget • Higher expectations: value, quality, novelty, service

12. Internet Broadband Adoption

13. Mobile Adoption

14. Consumers have become “digital consumers”… • 36% of the world’s population owns a smartphone(Nielsen, 2011) • 50% of all retail sales are web-influenced (Forrester, 2011) • 80%of consumers use social networks to research new products (IBM, 2012)

15. Consumer Research (1) Benchmark Category Most popular types of information

16. Manufacturer Trends • Rising commodity costs: raw materials, food, fuel • Growth: Supply chain vs. demand chain • Corporate Social Responsibility: ethical, sustainable

18. Retailer Trends • eCommerce • Omnichannel • Growth: Private label, store formats… • Inertia of physical stores

25. Source: OC&C Strategic Consultants

26. App Developer trend • Closeness to consumer needs • Innovation • Flexibility

30. Digital product data is often low quality

32. Digital product data is often low quality • 64% of consumer product webpages had problems with information completeness, presentation or accuracy(Clavis, 2012) • Only 29% of retailers and 40% of consumer product companies help customers find the exact products to fit their needs by offering specific search attributes (e.g. “non-lactose”, “organic”)(Capgemini, 2012)

33. Consumer Research (2) Consumer survey undertaken by GS1 - 7 countries, 1000 representative sample in each country - “what do consumers want?” 37% of consumers would never use an app again if it contained incorrect product information 73% of consumers consider it important that product information is trustworthy 38% of consumers would not purchase the product if they did not trust the product information displayed about it on their mobile phone 28% consumers would never use an app again if it contained no product information • Consumers want information that is: • Correct • Complete

34. Government Trends • Food safety • Food information for health and wellness

35. EU Regulation 169/2011 - Background • The law will come into force in December 2014 in all EU countries • Requires that a significant amount of food information be available to the consumer beforehe/she purchases pre-packed food on a website or other distance sale • This mandatory information must be available on or through the website without charge to the consumer • If the information is notavailable, the pre-packed food cannot be sold on a website • EU Impact Assessment completed by law firm Mason, Hayes & Curran. See http://www.gs1.org/docs/b2c/EU_FIR_Impact_Analysis.pdf

36. EU Regulation 169/2011 – GS1 Activity • Co-operation between the brand owner and on-line retailer will be required to ensure that accurate and complete mandatory food information is available to comply with the law • The TSD Framework can fulfill this responsibility being placed on the brand owner and website operator • Full gap analysis of the EU requirements v TSD Phase 1 Attributes being undertaken and the additional requirements will be proposed as Phase 2 Food & Beverage attributes for TSD • Separate one-pager produced spelling out how the GS1 B2C TSD can support brands and on-line sellers in complying with it. See http://www.gs1.org/docs/b2c/EU_Regulation_1-pager.pdf

37. Data Pool Trends • B2B  B2B2C • Consolidation

38. Key Targets …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… ……………………

39. “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker

40. Module 2: Develop your B2C value proposition

41. GS1 B2C Trusted Source of Data (TSD) GS1 aims to become the trusted source of data to support the communication of authentic product data provided by brand owners to consumers/shoppers,retailers and internet application providers using internet and mobile devices. 41

42. Governance: Project Board Co-chairs Brands Retailers Other Australia, Colombia, Europe, France, Germany, UK and US

43. B2C TSD – Project Overview • The vision of the B2C project is that: • Brand-owners can share relevant product information easily, thus building trust with consumers. • Internet application providers (IAPs) can ensure they are delivering authentic data. • Consumers can feel confident that the digital product information they access is accurate, no matter how or where they shop • 8 countries participating • 6 core attributes and 19 nutritional attributes

44. Project Scope Basic Product Information • Product Name • Brand Owner Name • Product Description • Product Image URL • Product URL Nutritional Product Information • Vitamins (Vitamin A - Vitamin C) • Calcium • Iron • Proteins • Calories - Energy (Total - Fat) • Carbohydrates (Total – • Dietary Fibre • Sugars) • Fat (Total - Saturated- Trans - Polyunsaturated - Monounsaturated) • Cholesterol • Sodium • Serving Size / Servings Per Container

45. Vision: GS1 Trusted Source of Data Happy Consumers Apps Websites Brand Owners Gooddata Good data TSDService Internet Application Providers Gooddata

46. Global Pilot • Countries: 8 • Aggregators: 5 • IAPs: 5 • Participating Brands: 30+ • Products: 900+

47. 47

48. Actions following pilot • Pilot report published Seehttp://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report_Summary.pdf • Project report written to address vision, roadmap, business participation, operating model and data management. See http://www.gs1.org/docs/b2c/GS1_TSD_Project_Report.pdf • GSMP group chartered to work on interoperability standards • New Business Information Needs Group chartered with joint GS1/CGF participation to ensure engagement and alignment with TCGF • “One-pager” produced for brand champions to engage with colleagues at local level to explain the GS1 B2C TSD

49. Global Groups • Project is a joint initiative with the Consumer Goods Forum (TCGF) • GS1 B2C Project Board: CEOs of active GS1 MOs, executives from active user companies, TCGF, and academia. Responsible for setting the global direction of the GS1 TSD project. • GS1/TCGF B2C Information Needs Group (BING): All stakeholders involved in the development the TSD and other related GS1 B2C projects. This is an industry engagement group which focuses on business needs and drives the adoption of global best practices and standards. More information at http://www.gs1.org/gsmp/community/working_groups/ie. • Global Standards Management Process (GSMP) B2C TSD Mission Specific Work Group: Developing the global interoperability standards supporting the phase 1 TSD data model and the architecture vision. More information at http://www.gs1.org/gsmp/community/working_groups/gsmp.

50. Solution Overview