Business-toConsumer (B2C) Training October 2012 © 2012 GS1 1 Who’s who? © 2012 GS1 How expert in B2C do you feel? © 2012 GS1 What are your needs? © 2012 GS1 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 © 2012 GS1 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 © 2012 GS1 GS1 Marketing Framework 1. Understand the market 2. Develop the value proposition 3. Deliver value © 2012 GS1 7 Module 1: Understand your B2C market Who are B2C stakeholders? © 2012 GS1 Stakeholder List • • • • • • • • © 2012 GS1 Consumers Manufacturers Retailers Application Developers Governments Data Pools Associations: industry, consumer … 10 Consumer Trends • • • • • © 2012 GS1 Technology Adoption Health and Wellness Ageing population Budget Higher expectations: value, quality, novelty, service 11 Internet Broadband Adoption © 2012 GS1 Mobile Adoption © 2012 GS1 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) © 2012 GS1 14 Consumer Research (1) Benchmark Category Most popular types of information © 2012 GS1 Manufacturer Trends • Rising commodity costs: raw materials, food, fuel • Growth: Supply chain vs. demand chain • Corporate Social Responsibility: ethical, sustainable © 2012 GS1 16 © 2012 GS1 Retailer Trends • • • • © 2012 GS1 eCommerce Omnichannel Growth: Private label, store formats… Inertia of physical stores 18 © 2012 GS1 © 2012 GS1 © 2012 GS1 © 2012 GS1 © 2012 GS1 © 2012 GS1 Source: OC&C Strategic Consultants © 2012 GS1 App Developer trend • Closeness to consumer needs • Innovation • Flexibility © 2012 GS1 26 © 2012 GS1 © 2012 GS1 © 2012 GS1 Digital product data is often low quality © 2012 GS1 © 2012 GS1 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) © 2012 GS1 Consumer Research (2) Consumer survey undertaken by GS1 - 7 countries, 1000 representative sample in each country - “what do consumers want?” © 2012 GS1 73% of consumers consider it important that product information is trustworthy 37% of consumers would never use an app again if it contained incorrect product information 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 33 Government Trends • Food safety • Food information for health and wellness © 2012 GS1 34 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 before he/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 not available, 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 © 2012 GS1 35 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 © 2012 GS1 36 Data Pool Trends • B2B B2B2C • Consolidation © 2012 GS1 37 Key Targets Brand Owners Top 5 companies Other companies © 2012 GS1 Other organisations …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… …………………… “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker © 2012 GS1 Module 2: Develop your B2C value proposition 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 © 2012 GS1 Governance: Project Board Co-chairs Brands Retailers Other © 2012 GS1 Australia, Colombia, Europe, France, Germany, UK and US 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 © 2012 GS1 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 © 2012 GS1 Vision: GS1 Trusted Source of Data Happy Consumers Brand Owners Good data TSD Service Internet Application Providers © 2012 GS1 Apps Websites Good data Good data Global Pilot • • • • • © 2012 GS1 Countries: 8 Aggregators: 5 IAPs: 5 Participating Brands: 30+ Products: 900+ 47 © 2012 GS1 Actions following pilot • Pilot report published See http://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 © 2012 GS1 48 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. © 2012 GS1 Solution Overview © 2012 GS1 Solution Components © 2012 GS1 51 GS1 Source: Global Architecture Vision Under development for delivery with standards © 2012 GS1 52 2D bar codes for B2C © 2012 GS1 GS1 Source: Value Proposition Brand Owners Data Aggregators Data Users (Product manufacturers and private-label retailers) (GDSN Data Pools and specialised aggregators) (Online retailers, app developers, governments) Sell more products and protect the brand by being accurately represented in a widespread way for digital consumers © 2012 GS1 Provide real-time access to accurate product information authorised by brandowners Get single-source access to product data authorised by brand-owners Comply to EU distance-selling regulations from 2013 Digital Consumers Use authentic product data in apps and on websites Value Proposition: Brand-owners For ……………………………………….. who ………………………………………. our ………………………………………... provides ………………………………… Unlike ……………………………………. our ……………………………………….. ensures …………………………………. because …………………………………. © 2012 GS1 Value Proposition: Internet Application Providers For ……………………………………….. who ………………………………………. our ………………………………………... provides ………………………………… Unlike ……………………………………. our ……………………………………….. ensures …………………………………. because …………………………………. © 2012 GS1 Module 3: Deliver value Are you ready for B2C? Here’s what you’ll need: • A data aggregator • Product data authorised by brands • Data users © 2012 GS1 Running a pilot • Build a committed team • Brand-owners • Solution providers • Other stakeholders e.g. universities • Keep focused on business needs not on technologies • Define scope but encourage experimentation • Create visibility • Demo • Press conference • … • Plan for success: what will be your next step when the pilot is successfully completed © 2012 GS1 59 Working with a specialised solution provider © 2012 GS1 MO approaches • • • • © 2012 GS1 GS1 Belgilux GS1 France GS1 Canada GS1 Australia 61 Example: Nestle Australia’s B2B2C Journey • 2009: Nestle uses GDSN to sync item data via 1Sync & GS1net to Australian retailers (price data locally) • 2010: local B2C work group formed incl. support for GoScan iPhone app development • Mar 2011: Local B2C data requirements confirmed based on GDSN food & beverage data extension. • May 2011: Ext Labelling ‘call to action’ launched asking retailers & brand owners to provide data for GS1 GoScan • 2012: Nestle signs up to GoScan service and also uses 1Sync for B2C data incl. nutritional, ingredient & dietary, information, allergen declarations & batch number advice © 2012 GS1 62 Example: Nestle Australia’s B2B2C Process • Nestle aligns internal processes to meet & sustain GoScan data requirements • Some local retailer req’ts not aligned to GDSN GDD • B2C data is extracted from Nestle “Nutribank” to supplement B2B data via 1Sync/GS1net • Nestle B2C data published to GS1 Australia’s aggregator - “DataBank” • Product images supplied by Nestle via 3rd party media company loaded in DataBank • Nestle must validate all GoScan data and images in DataBank for completeness and accuracy before release to consumers © 2012 GS1 63 Global Project: next steps • • • • • © 2012 GS1 Standards Certification Marketing Phase 1 Phase 2 Digital Coupons 64 Standards • B2C TSD phase 1 standards published by Q1 2013 • Prototype planned to trial TSD Standard Specification to improve the quality of the final standard • Prototype Participants: 1WorldSync, epcSolutions, GS1 Colombia, GS1 France, GS1 Italy, GS1 Russia © 2012 GS1 65 Certification • Objective: Ensure data aggregators follow standards correctly • Benefits: Brands and IAPs know which aggregators are participating in the TSD framework / Reinforces credibility of the TSD framework • Timeline • Beta certification (8 pilot countries) – circa June 2013 • Full certification (all interested – target 14 countries) – circa Dec. 2013 • Details: see Data Aggregator requirements in Project Report © 2012 GS1 66 Marketing • GS1 • Marketing launch in Q1 2013 in partnership with data aggregators – Use global umbrella name for framework: GS1 Source – Global website explains framework – Webinar series • Data aggregators • Declaring that service is “powered by GS1 [name]” part of terms and conditions for accredited data aggregators • User companies • Support overall awareness and adoption via relevant contacts/channels © 2012 GS1 67 Phase 1 Phase 2 Phase 1 From May 2012 - Local services in multiple countries From July 2012 - Prototype Global Service (interoperability) in some of the 8 pilot countries From September 2012 - Agree TSD name and marketing strategy From Jan 2013 - Full Production (global interoperability) Phase 2 Country expansion into 2nd wave of countries (6 new by June 2013) Company expansion of other categories – core attributes only Agree new attributes with CGF sub-group © 2012 GS1 68 B2C TSD Timeline 2012 JUNE JULY 2013 POC Ph. 1 Pilot Project Report (incl. Op. Model) LOCAL TSD SERVICES Using Global Data Vision without action is a daydream. Action Model without vision is a nightmare TSD GLOBAL INTEROPERABILITY STANDARDS DEVELOPMENT: Messages, Data Model Draft Spec for Prototype Submit learnings Prototype Global Interoperability Implementations Global TSD Services: Certified Interoperable GS1/CGF Phase 2 Proposal Work finalised or near closure © 2012 GS1 Work in progress or planned Work Proposed for Approval Version 001 – Dec 2011 DRAFT 69 Today’s Digital Coupon Landscape Retailers © 2012 GS1 Brands Consumers 70 GS1 Enabled Coupons • Multinational Brands can execute offers in the same way in multiple countries and with multiple retailers • Mobile Industry and Solution Providers need a baseline and one standard to implement rather than multiple • Multinational Retailers can accept offers in the same way in multiple countries • Consumers will have more commonality and better experience at POS • Takes costs out of the coupon supply chain at all levels • Digital Coupons can be better integrated with other digital applications/solutions (Extended Packaging, Self Scanning, Shopping lists, mobile payment) © 2012 GS1 71 GS1 Standard Digital Process © 2012 GS1 Module 4: Action Plan "Vision without action is a daydream. Action without vision is a nightmare" © 2012 GS1 Conclusions Review objectives & expectations © 2012 GS1 Resources to help you Global Office Team • Malcolm Bowden, President Solutions malcolm.bowden@gs1.org • Cameron Green, Director B2C cameron.green@gs1.org • Dipan Anarkat, B2C Technology dipan.anarkat@gs1.org • Joe Horwood, B2C Marketing joe.horwood@gs1.org Contact us if you have questions! © 2012 GS1 Resources: Background • GS1 Capgemini Beyond the Label Report http://www.gs1.org/docs/b2c/Beyond_the_Label.pdf • Legal impact analysis of EU Food Information Regulation http://www.gs1.org/docs/b2c/EU_FIR_Impact_Analysis.pdf © 2012 GS1 79 Resources: Pilot & Project • Project Report http://www.gs1.org/docs/b2c/GS1_TSD_Project_Report.pdf • Pilot Report (Summary) http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report_Sum mary.pdf • Pilot Report (Full) http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report.pdf © 2012 GS1 80 Resources: Marketing • Why share your digital product information? 1-pager for brand-owners http://www.gs1.org/docs/b2c/GS1_Trusted_Source_of_Dat a_1-pager_for_brand-owners.pdf • Selling online? Digital product information essential to meet EU Food information Regulation http://www.gs1.org/docs/b2c/EU_Regulation_1-pager.pdf © 2012 GS1 81 Help us build GS1 Source © 2012 GS1