Impact of e-commerce on perishables industry

Gerrit Enthoven | Director Sales EMEA

© Intershop Communications
Impact of e-commerce on perishables industry

x Introduction
x Changing customer behavior
x Disruption
x Perishables supply chain
x Digital Transformation

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Founded in 1992, eCommerce pioneer
Public Company
German engineering with global footprint (EMEA, US, APAC)
370 employees
€ 34,2m revenue in 2016
17% of revenue invested in R&D
Extensive network of Business Partners
500
Customers
CMS PIM
Create a compelling Provide the
shopping experience information your
customers
look for

ORDER MANAGEMENT COMMERCE

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journey processes with ease

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What the analysts say
One of the leading Enterprise E-Commmerce Platforms for B2C and B2B

B2C B2B
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Income growth and population growth are shifting the PER trade
growth from developed to developing countries

Source: OECD Development Centre

Lucas Vos, CEO Royal Flora Holland:

“New players on the market profile themselves as marketplaces

for flowers and plants. Don’t know if we're ready, but I'm not
afraid of it. We must be afraid of other parties like Amazon or
Alibaba. As soon as they have their cool chain in order, they can
eat the cheese of our bread. "
New competitors enter the B2B market
Amazon Business to create record 15,000 new full-time jobs across Europe in 2017
“Your Margin is my opportunity”
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The Amazon world

x 100 Petabyte truck

x Amazon Go – Checkoutless supermarkets
x Amazon Wardrobe
x Purchase of Wholefoods
x PrimeNow including anticipatory stock management
x Prime Music
x Amazon Pantry
x Amazon Fresh
x Amazon Prime Video (commissioning and producing)
x (Almost) bought German Hahn airport
x Oh.. and Alexa, Echo & Dot..

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Jeff Bezos flywheel concept

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An American online floral marketplace with about 2,000 florists delivering to
nearly 3,000 cities across the country.

The florists upload their own real photos of their floral design as no stock
catalog images are allowed.

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 Supermarket chains will
become bigger
facilitating the year round
supply of fresh produce,
-
thus supporting
international PER trade, also
by air.
"We believe the future of New Retail will be a harmonious integration of online and
offline, and Hema is a prime example of this evolution that's taking place,"

“ China's online retail market is still under-penetrated at the rate of 15 percent of

total retail market size, and Alibaba has an 11 percent market share of China's retail
sales.”

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Alibaba – 18 years

By investing directly in or partnering with companies that provide services for

his online buying platforms -- from payment systems to delivery companies --
Ma and his Alibaba Group Holding Ltd. have minted a network of people
whose combined fortunes total more than $52 billion.

According to the Bloomberg Billionaires Index this collective net worth is

larger than the economies of 136 countries.
The Food Shopping Experience is being disrupted

Source: Kurt Salmon’s Retail and Consumer Goods Group

Online Shares:

The consumer expects

the largest relative growth
to happen within food,
health and home & garden
It doesn’t seem like anyone is making any money
Estimates in the UK are that each delivery loses £3-5.

Some exceptions:

Ocado, a pure online UK grocer, had 2016 pretax profit of just over 1%.

In the U.S., Instacart claims to have a positive gross margin in 10 of its

19 U.S. markets, but that is before factoring in considerable marketing
and IT costs.
 A perishables e-commerce supply chain
Producer Click & Collect

Line haul Processor Line haul

Distribution Pick from store

Retail.com
Distribution
Last Mile

Brand.com
Line haul Distribution Last Mile
Marketplace supply concepts
Producer

Producer
Marketplace

Producer
Distribution

Producer Brand.com
Distribution
The rise of same day delivery
Digital Transformation

Engaging your Transforming

customers your products

Empowering Optimizing your

employees operations
.
End-to-end eCommerce
Taking care of goods’ motion and e-motion

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Managing and Optimizing Logistics and Supply Chain

https://www.youtube.com/watch?v=ONW1kYBhf_M

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The world of commerce is changing.
Unlock your potential with the exciting possibilities
of Intershop omni-channel commerce.

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Furthermore Intershop is represented in Austria, Belgium,

China, Denmark, Finland, India, Italy, Norway, Russian
Federation, Spain, Sweden, Switzerland, and Turkey.

For a full overview, as well as for contact details please consult

our website: www.intershop.com/offices-and-subsidiaries

intershop.com
info@intershop.com
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