Market Trends

1 3
1. Global Market Overview 1. In store experience
2. Market focus 2. Build community

Summary 3. Retail segment focus 3. Retail for good

4. High tech store
5. Intelligent supply chain

Challenges & Market insights IBM Vision

2 4
1. Consumers 1. Digital Engagement and Experience
2. Innovators 2. Intelligent Supply Chain
3. Technology 3. Digital Enterprise Operations

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 THE MARKET

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 MARKET I Global
Global market overview WW retail market expected to reach $32T in
2022 from $24T in 2018 (8.1% CAGR)

Europe

▪ Retail sales hit a record of $4.9 trillion in 2017

▪ 2% CAGR (2017 – 2021) Asia-Pacific

North America
▪ Retail sales hit a record of $ 9.3
▪ Retail sales hit a record of trillion in 2017
$5.5 trillion in 2017
▪ 6% CAGR (2017-2021)
▪ 3% CAGR (2017 - 2021)

China

▪ $5.6 trillion sales in 2017

Latin America
India
▪ Retail sales hit a record of $1.9
trillion in 2018 ▪ $1 trillion sales in 2017
Africa & Middle East
▪ 5% CAGR (2017 – 2021)
▪ Retail sales hit a record of $1.1 trillion in 2017

4 Source: IBM MDI ▪ 19% CAGR (2017 – 2021) IBM MD&I

 MARKET I Global

Global retail sales in 2018 ($ billions)

Online retail sales represents only 13% of retail sales in 2018

Total retail sales 24,000 5,700 Total grocery retail sales

24%

Total online retail sales 3,000 150 Total online grocery retail sales
13% 1%

Source: Forrester 2018

5 Forrester 2018
 MARKET I Global

Global online retail market sales in

2018 in $billions per country

$3,000
Brazil 27

Russia 31

Canada 42

South Korea 69

Germany 74

France 104

Japan 106

UK 124

US 517

China 1330

0 200 400 600 800 1000 1200 1400

IBM MD&I
Source: Reuters 2018
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 MARKET I China

China – Singles’ day – 11/11/2018

Sales amounted to $30.8 billion:

• ⅓ of French e-commerce market yearly
• More than L’Oréal revenue in 2018

$10 bn in sales recorded in one hour

$30 bn in 1 day ie a 27% increase

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 MARKET I Global

Global grocery market Total global grocery sales: $5,700

billion ie 24% of total global retail
sales

France
Japan
▪ Sales estimated at $275 bn
▪ Sales estimated at $459 bn
▪ 2.2% CAGR (2018-2023)
▪ 1% CAGR (2018-2023)
USA

▪ Sales estimated at $1,494.4 bn

China
▪ 3% CAGR (2018-2023)
▪ Sales estimated at $1,395.7 bn

▪ 5.5% CAGR (2018-2023)

Brazil India

▪ Sales estimated at $328.4 bn ▪ Sales estimated at $510.5 bn

▪ 7.4% CAGR (2018-2023) ▪ 11.2% CAGR (2018-2023)

8 Source: IGD 2018 IGD December 2018

 MARKET I Grocery

Global online grocery sales forecast ($ billions)

Forrester 2018

334

Global online grocery market 296

is expected to experience a
growth of 80% in 4 years 258

221

185

150

114
93
80

2014 2015 2016 2017 2018 2019 2020 2021 2022

9 Forrester 2018
 MARKET I Luxury

Global
luxury The global luxury market grew to nearly €1.2
market trillion in 2018, up 5% from 2017

The personal luxury goods segment outperformed

other luxury segments in 2018 – expected to reach
365 billion in 2025
> 6% global growth in 2018

By 2025, Chinese consumers = 46% of personal

luxury goods market (+14% vs 2017)
> 50% of purchases will be made in China

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 CHALLENGES
&
MARKET INSIGHTS
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 CHALLENGES & MARKET INSIGHTS

3 disruption factors
CONSUMERS INNOVATORS TECHNOLOGY
expectation is reshaping demand dictate the new standard & is accelerating and enabling
across the industry transcend industry boundaries innovation and disruption at scale

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 CHALLENGES & MARKET INSIGHTS I CONSUMERS

3 disruption factors

Millennials
1 - CONSUMERS Chinese consumers
expectation is reshaping
demand across the industry The consumer = the channel
Ethical retailing

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 CHALLENGES & MARKET INSIGHTS - CONSUMERS I Millennials

Millennials: the most powerful consumer group on earth

2.3 Bn Millennials in the world - 44% in Asia

▪ Asia: >1Bn - China: 415Mn, India 440Mn

▪ US: the largest demographic group > Baby Boomers in 2019

Millennial spending by 2020 = $1.4 trillion annually ie 30% of total
retail sales

▪ France: 16 Mn - 50% of the labour force in 2020

▪ Luxury consumer is getting younger

By 2025: Millennials & Gen Z = 55% of the WW luxury goods market

Source: Pew Research Center - Bain & Company 2018 Global Luxury Market - Mckinsey – Reviving Grocery retail, 6 imperatives - Bloomberg
14 analysis of the UN World Population Prospects
 CHALLENGES & MARKET INSIGHTS - CONSUMERS I Millennials

Millennials: shopping characteristics

1 The best value for money
European Millennials - Omnichannel shopping habits

2 Low brand loyalty ▪ Web to store: 68%

▪ Store to web: 56%
▪ In store pictures to collect friends/family’s opinion: 44%
▪ Comparing prices on internet while in store: 56%
3 Experience first

4 Omnichannel: online shopping - store - mobile

5 Social media
Sharing with friends & Peer generated endorsements

6 Originality, relevancy

7 Brand authenticity, health conscious

15 Source – Mckinsey , Reviving Grocery retail, 6 imperatives – Forbes, What Millenials really want – La Tribune
 CHALLENGES & MARKET INSIGHTS - CONSUMERS I China

Chinese consumers: the 2.0 shoppers

New retail consumers, used to the most advanced

“The boundary between offline and online commerce
consumer experience in the world disappears as we focus on fulfilling the personalized
needs of each customer”
Jack Ma, Alibaba co-founder

▪ Tech savy

▪ Fan of Retail-tainment
enjoy a sociable and entertaining shopping experience

▪ M-shopper – 67.5% use smartphones to buy and pay

▪ Social media commerce – 64% of Chinese Millennials

buy on WeChat, QQ, Weibo and Youku

▪ Expect a fast and simple consumer experience

New retail: “the complete integration of online, offline, logistics, and technology and data for a single value chain
16 Source: Bearing point – Mintel, August 2018 New research rom the world’s leading market intelligence agency - Asia Briefing, Dec 2017 - China Briefing, Sept 2018 – LSA, Jan 2019
 CHALLENGES & MARKET INSIGHTS - CONSUMERS I No channel

The consumer is the channel: prerequisites

“Consumers don’t think about the world online versus

offline, neither should brands and retailers.”
Michael Evans, Alibaba Group President

▪ Merge of online and store data for a 360°

customer view

▪ Empower & digitalize the store associates

▪ Provide high quality service to consumers

▪ Transform logistics: zero stock stores?

▪ Transform the whole organization

Source: HUB Institute - LSA

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 CHALLENGES & MARKET INSIGHTS - CONSUMERS I Ethical Retailing

Ethical retailing: a growing demand from consumers

Shift in consumer expectations: ethics & brand purpose

▪ Product, price + ETHICS

> nearly 75% of global consumers list product origin as key purchase driver

▪ Consumers assess what a brand says, what it does, what it stands for
> sustainability, transparency, fair employment practices, waste management
62%
of customers want companies
to take a stand on current and
broadly relevant issues like
▪ Gen Z and Millennials consumers drive shift to ethical buying sustainability, transparency or
fair employment practices.
> 60% consider companies’ ethical values and authenticity before buying
their products
> 73% spend more if products come from a sustainable or socially conscious
brand

18 Nielsen, Sustainability Sells, 2018 – Accenture strategy research report, From me to we, December 2018
 CHALLENGES & MARKET INSIGHTS I INNOVATORS

3 disruption factors

2 - INNOVATORS Disruptors
dictate the new standard & New standards
transcend industry boundaries Merges & Acquisitions

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 CHALLENGES & MARKET INSIGHTS – INNOVATORS I Disruptors, New standards, M&A

Innovators

CPG & Retail market:

$2.95 Trillion over the
next decade (2017-2026)

▪ New store formats

▪ Partnership between traditional

retailers and disruptors

▪ Additional value arising from platforms

such as Amazon or Alibaba

▪ Strategic M&A

20 Source : IBM MD&I

 CHALLENGES & MARKET INSIGHTS I TECHNOLOGY

3 disruption factors

Voice commerce
3 - TECHNOLOGY Visual recognition
is accelerating and enabling Blockchain
disruption at scale
AI
Mobile

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 CHALLENGES & MARKET INSIGHTS – TECHNOLOGY I Voice commerce

Voice commerce: a fast growing market

Voice commerce to play a significant role in eCommerce Voice-based commerce revenue

US & UK market

WW Voice-based commerce by 2023 = $83 Billion

▪ US & UK markets
> by 2022: 50% of the WW voice commerce revenues
> 2017-2022: 2150% growth (x23) - CAGR: 86%

▪ Digital voice assistants = 8 Billion globally by 2023

> 2018-2023 CAGR = 25%
> the fastest selling consumer technology in 2018 outpacing
wearables and VR

▪ Voice Shopping: popular for Grocery, Entertainment and Electronics

> US: 35% of voice based devices’ owners make toiletry and grocery
purchases

Source: Comscore – Emarketer – Juniper Research - OC&C Strategy Consultants

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 CHALLENGES & MARKET INSIGHTS – TECHNOLOGY I Visual recognition

Visual recognition: a game changing technology

▪ A growing market pushed by machine learning & big data

from $16 Billion in 2016 to $38.92 Billion by 2021
> CAGR of 19.2% from 2017 to 2025
80%
reduction in out-of-stock
▪ Retail applications
rates.
✓ Fraud management
✓ Payment Image recognition & AI
technology is paramount
✓ Inventory
in evolving the retail
✓ Facial coding experience and boosting
✓ Customer experience operational performance.
✓ Store maintenance
✓ ....

23 Source: Deloitte Image Recognition Market, Global Forecast to 2021 – MarketsandMarkets - McKinsey & Company, “The advantages of machine learning in replenishment”, Aug 2016
 CHALLENGES & MARKET INSIGHTS – TECHNOLOGY I Blockchain

Blockchain: transparency, trust, operational efficiency

Retail is the 4th largest Blockchain market - $933 million by 2022

Supply chain management segment to dominate the Blockchain in retail market

1. Increasing transparency and consumer confidence

> create transparent and decentralized supply chain system

2. Guaranteeing authenticity and reducing counterfeits

> reduce fraud and errors, issues identification

3. Meeting with the new supply chain requirements

> improve efficiency and speed
> speed up delivery and smooth logistics
> faster and reliable inventory management

4. Protecting consumer privacy

> increase data prevention and manipulation

24 Source : Blockchain in Retail Market - Global Forecast to 2023", MarketsandMarkets - Gartner 2018 CIO Survey
 CHALLENGES & MARKET INSIGHTS – TECHNOLOGY I Artificial Intelligence

Artificial Intelligence: benefits in customer facing &

operations areas
Retailers are accelerating their AI deployments

▪ 1 retailer out of 4 are deploying AI - in 2018 28% retailers (4% in

2016)
Walmart has used AI-driven
▪ AI penetration by sector: Apparel and footwear followed by Food image optimization and saved
& Grocery lead the pack $86Mn
Estimated savings of >$2Bn over
▪ 3 out of 4 AI use cases are deployed in customer-facing area / the next 5 years
74% of projects
> Expected benefits in customer-facing areas
=> #1: Enhanced customer satisfaction due to a better experience

▪ 26% operations-focused initiatives

> Expected benefits in supply chain operations and logistics Morrisons used AI for stock
=> improved consumer experience, inventory productivity, replenishment to reduce shelf
operational efficiency gap by 30%

25 Source : Cap Gemini Research institute , December 2018 – IBM IBV study, January 2018
 CHALLENGES & MARKET INSIGHTS – TECHNOLOGY I Mobile

Mobile: impact on shopping and payment

,
Shopping is going mobile, in-store and out
Mobile payment is the world’s largest and fastest-growing market

By 2021 in Europe:

✓ 59% of adult mobile phone owners use their phones to research

physical products before purchase. 50%
of digitally influenced in-
✓ 60% use their phones in brick-and-mortar stores store sales will be driven
by mobile in 2021.
✓ Share of mobile in online retail sales: 25%

✓ 56% of online adults expect companies to make their websites

mobile-friendly

Source: Forrester, Digital And Mobile Touchpoints Are Driving Offline Sales In Europe - iVend Retail’s 2018 Global Path to Purchase
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 CHALLENGES & MARKET INSIGHTS – TECHNOLOGY I Mobile

Mobile: disruptive payment options in China

▪ Mobile payment

✓ 98.3% of Chinese netizens use a mobile device

✓ Payment market dominated by AliPay and WeChat Pay

✓ E-retail via mobile influenced by popularity of smartphones and

5G connections for China in 2019

▪ QR Code payment: the mainstream offline payment option

Holds 70% of the Chinese mobile payment device market

▪ Smile to Pay: Facial recognition payment system

▪ Cashierless store: Alibaba’s Futuremart and Hemma stores

Source : Baine & Caompany - Consumption in China: Ten Trends for the Next 10 Years - Asia Briefing – Dec 2018 - Technode, Sept 2018
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 RETAIL TRENDS

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 3 Trends
1. In store experience
▪ DIY
▪ Product customization
▪ Extended services
▪ Entertainment
4. High tech store
▪ Personalized experience
▪ Visual recognition & Cashierless store
▪ Mobile apps
▪ AR/VR & Voice commerce

Trends ▪
▪
New store concept
Innovative merchandising
▪ Robots & Empowered store associates

Overview 2. Build community

5. Intelligent Supply Chain
▪ Last mile fulfillment
▪ Create social link ▪ Omnichannel capabilities
▪ Share & develop expertise ▪ Supply Chain efficiency
▪ Demand forecasting
3. Retail for good
▪ Transparency & traceability
▪ Sustainability
▪ Making the world a better place

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 3.1 IN STORE EXPERIENCE

Do It Yourself Extended services New store concept

Product customization Entertainment Innovative merchandising

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 RETAIL TRENDS I In store experience

03-1 Do It Yourself

AromaZone Dresden
• Display with instructions to • Shoppers create their own
making ourselves pair of eyeglasses or
sunglasses
• Workshops and specialized
• For 49$, customers get lenses
trainer to create homemade
cosmetics and frames made up

• Personalized content • Choose the frame styles and

color combinations

Innisfree Nike
• “My Palette” installation • Nike By You: workshop to
consists of 137 colors customize sneaker
and shades of make-up
• Sneaker Bar Create unique
• Creating his own face products
mask

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 RETAIL TRENDS I In store experience

03-1 Product customization

Converse Levi’s
• Workshop to create Chuck
Taylors from scratch with a • Tailor shop: Self-desk for
sneaker design customize t-shirt, jeans
• Customer choose fabric, soles, • Integrate your own creation,
color of the logo logo
• A dedicated floor for
personalization

Salomon Covergirl
• S/Lab ME:sh to measure • Customization stations to
consumers and find the best size personalize make-up
• Digital co-creation merging
Salomon DNA & expertise with • 3D printer for makeup
needs and preferences of the bags
customer

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 RETAIL TRENDS I In store experience

03-1 Extended services

Adidas Leroy Merlin

• Development of an ecosystem
• Concierge desk service
with start-ups Steedy and
• Same-day hotel delivery Trusk specialized in home
service delivery
• NYC guide to discover the city • Interior decoration coaching
• Guest kiosk with healthy juices with Littleworker
& fitness consultants • Reparation service with
Bob’depannage

Carrefour Bio American Eagle

• Free laundry service
• Digital lockers for Airbnb keys • Jeans Gallery featuring an in-
• Space to drink a coffee with store maker’s shop
shared library • Digital concierge iPads in
• Neighborhood concierge desk dressing rooms
service • Collaboration space

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 RETAIL TRENDS I In store experience

03-1 Entertainment

Starbucks Reserve
Buzz Feed Camp
Roastery
• “Secret moving wall”
• New theme that rotates • Celebrate the heritage of
every 8–12 weeks roasting
• Activities daily, including arts • Journey from bean to cup
and crafts workshops through tubes
• Staging of coffee making

Casper Gucci Wooster

• Design like a camp
Bookshop
• A nap “survival kit” for • A cinema in the middle of the
customers store

• Giant playground for kids • Celebrate Soho’s creative

heritage
• A library area

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 RETAIL TRENDS I In store experience

03-1 New store concept

Glossier Facebook @Macy’s

Showroom Pop-up
• Tinted windows almost private
• Small e-commerce brands
• No purchase without a seller
exposure
• Open space, minimalist price
• Growing brick-and-mortar
• Purchase via automated
conveyer belt presence for online players

IKEA Auchan minute

Smaller is beautiful Automatic format
• No apartment showroom, no
• 500 self-service references,
in-store course
without staff, accessible 24/7,
• Selection of mainly decorative without cash register
and space-saving items
• QR code for virtual shopping
• No stock, no big furniture cart
• Partnership with Mondial Relay
• Online paiement

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 RETAIL TRENDS I In store experience

03-1 Innovative merchandising

Amazon 4 Star Story

Bestseller merchandising Editorial merchandising
• Preferences of local • Design, theme and
customers products renew every two
• On the shelves only the most months
popular articles (4-5 stars) • Create surprise and delight
from the e-commerce site
• How to get the customer
• Rotating inventory on a back
weekly basis

• Selection of the most popular products in NYC

Nike Speed shop
• Seasonal products and Nike Sneaker Bar
Local offer
• The space designed in the spirit of New Yorkers (black and white)

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 3.2 BUILD COMMUNITY

Create social link Share and develop expertise

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 RETAIL TRENDS I Build community

03-2 Create social link

Rapha Lululemon
• Social Club: community
• Build social link around around personal growth
same passion
• “Be a mission with a company”
• Rapha Cycling Club
• Events with local leaders
• App to be in the loop with (Sweat Life Festival)
rides, events, news
• Ambassador program

Salomon The Phluid Project

• Value of sidestepping
• Test of shoes & group running
conventional gender divisions
sessions
• Free and self-service lockers • Instagram-worthing corner &
33% of hang-out space
• App to connect with others
runners • No paid marketing to keep safe
the authenticity

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 RETAIL TRENDS I Build community

03-2 Share & develop expertise

H&M Take Care French Cheese

• Sewing and embroidery Board
workshops
• Cooking lessons & cheese
• Dedicated team for clothes discovery
repair
• Creation of a community
• Awareness to recycling around cheese
clothes
• Features event and exhibits
• Tips on clothing care

Aroma Zone Apple

• Free workshops for people who
• Dedicated workshop space
want to learn more about their
for home-made product
devices
courses
• Programs available for kids,
• Presence of professional on-
include Apple camp and field
site
trips
• Sessions in Photography, Art &
Design, Music, and more

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3.3 RETAIL FOR GOOD

Transparency & Traceability Making the world a better place

Sustainability
 RETAIL TRENDS I Retail for good

03-3 Transparency & Traceability

Everlane Naadam Cashmere

• Radical transparency via
storytelling
• Ethical production practices at
each step of the process
• Helmets to listen the silence of
factories
• Informative queue
management
Carrefour
• Trace different stages of
product transformation
• QR code on the finish product
(origin, producer…)
• Scalability facilities
• History of Mongolian family
that provides raw material
• Translating transparency
into sustainability
Lush
• Suppliers: local, organic, fair-
trade
• Products are hand made
• Manufacturer’s name on each
product
• Clear message against animal
testing

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 RETAIL TRENDS I Retail for good

03-3 Sustainability

Patagonia Allbirds
• Certified B-corp
• ”the world’s most comfortable
• Assessment of fabrics in their shoe”
line to determine pollution • Edible shoes made of wool and
causes eucalyptus fiber
• Shifted entire cotton line to
• ZQ & Forest Stewardship
organic & incorporate Council certification
sustainable materials

Rent the Runway H&M Take Care

• Renting is the new buying • Sewing & embroidery
workshops
• Rotating selection of clothes &
accessories rental • Customer involvement in the
product lifecycle
• No selling product, only
services • Certified cleaning products
• Recycling service & Repair
space

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 RETAIL TRENDS I Retail for good

03-3 Making the world a better place

Lego Ben&Jerry’s
• Only toy company named a • Certified B-corp
WWF Climate Savers Partner • Promoter of fair trade, world
• Minimising the impact of their peace and equality
footprint • Ben & Jerry’s Foundation:
• Using their own wind farm engage employees in
• Employee engagement is at a philanthropy & social change
96% work

Kroger
TOMS • Reduce food waste by
promoting the option of buying
• 1 pair of shoes bought = 1 pair
imperfect produce that is still
offered to a child in need
wholesome and safe to eat.
• For other TOMS products, a
part of the income goes to • Launched an “ugly produce”
help others (pair of glasses = brand in 2018 to encourage
help people in need of eye consumers to buy imperfect
care) fruits and vegetables.

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3.4 HIGH TECH STORE

Personalized experience Cashierless store AR & VR Robots

Visual Recognition Mobile Apps Voice Commerce Empowered Store

Associates
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 RETAIL TRENDS I High tech store

03-4 Personalized experience

Mystor-e Klepierre
• Artificial intelligence and • Klepierre supports retailers in
predictive analysis to improving their business
identify the customers age, model by providing them with
gender and "style" in order data on traffic volume like
to suggest products that stores visited, duration of
may appeal to them. visit.

Cali Burger L’Occitane en

• Facial recognition technology
Provence
with AI self-ordering kiosks • Personalized experience
to provide cutomers the through mobile with
option of immediately personalized recommendation
activating their loyalty feed and mix of popular
accounts eliminating the products and items based on
need of swiping a card. recent viewing history
45 45 updated every few minutes.

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 RETAIL TRENDS I High tech store

03-4
Visual recognition Cashierless store

Aifi Caper
• Offers an experience similar to • Autonomous Checkout with
Amazon Go Smart Carts
• All you have to do is present • Once you have completed
your credit card or mobile app shopping, pay directly on the
cart, with mobile payment

Smart Shelf
Zippin • Connected shelves, algorithm to
prevent fraud.
• Visual recognition and
• Cameras located within the store
computer vision
interpret the entire shopping
technologies combined with
basket before debiting the final
sensors
amount from customers’
• Credit card linked to the App electronic wallet when they leave
46 the store.
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 RETAIL TRENDS I High tech store

03-4 Mobile Apps

Nike Dirty Lemon

• Shopping entire looks on in- • Take what you want
store mannequins • Text what you took
• Scan bar codes • Pay what you took
• Scan to try • Get on with life
• Instant Checkout

Amazon 4 Star Le 4 Casino

• Scan a QR code that’s shown • Designed to be open 24
throughout the store. hours a day
• An unique-to-you QR code is • Simply present the app
created and linked to your barcode to enter
payment info on Amazon, the
• Instant payment directly
cashier scans it and you are
done from the App

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 RETAIL TRENDS I High tech store

03-4
AR & VR Voice commerce
Covergirl Jumbo
• Virtual greeter. Say hi to Olivia • Vocal Shopping List App
when you walk through the • Innovative & flexible
door. customer experience
• Olivia can direct you to your • Increase customer brand
favorite product, share beauty loyalty
trend advice or answer a
question. Just ask!

Macy’s Starbucks
• Use a virtual reality headset • Voice ordering capabilities
to see how your space looks within the Starbucks mobile
with furniture in it iOS app and Samsung’s
• You can do it at home too, voice assistant: Bixby
using augmented reality on
the Macy’s app

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 RETAIL TRENDS I High tech store

03-4
Robots Empowered store associates

Freshippo Orvis
• Orvis associates can engage
• The restaurant combines
with shoppers via Aptos Mobile
mobile applications, smart
Store on tablet devices and
screens, conveyor belts,
select and locate items of a
mechanical arms and robot
particular size, color, style online
carts.Orders and payments
or at another store and arrange
through the application
to have items shipped directly to
the customer’s home.

Walmart Mulberry
• Mulberry's store associates can
• Walmart is testing robots, built
access the entire product
by Bossa Nova Robotics, to see
catalog, check out customers
if they can monitor store
anywhere in the store, see
inventory more cheaply than
customer profiles, send
human workers.
personalized messages, and
connect with backroom
49 employees.
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3.5 INTELLIGENT SUPPLY CHAIN

Last mile
Supply chain efficiency
fulfillment

Omnichannel capabilities Demand forecasting

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 RETAIL TRENDS I Intelligent Supply Chain

03-5 Last mile fulfillment

Hema JD.com
• Customers can place orders • The 211 promise available to
through the mobile app 99% of the Chinese people
• Delivery in less than 30min for • White-glove delivery
those living in a 3km radius • 40,000 deliveries using
• Some people move to live near drones
a Hema location • Retail-as-a-service

Takeoff Amazon key

• Allows customers to have
• Hyperlocal grocery micro- their packages delivered
fulfillment center powered by inside their home, garage,
robots and AI car, without having to be
• Faster and cheaper assortment there
of orders • Eventually, the scope of
• Reduction of carbon footprint services offered will extend

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 RETAIL TRENDS I Intelligent Supply Chain

03-5 Omnichannel capabilities

Target & Shipt Walmart

• Target leads the way in • Network of numerous
omnichannel grocery outlets, online capabilities
• Stands as the “Anti-Amazon” • Pick-up Towers: order
online, pick-up in store very
• Innovative omnichannel
easily and quickly
capabilities

Eileen Fisher Decathlon Lab

• Objective : Build a unified and • 5,000 m2 outlet in Singapore
omnichannel inventory open 24h/24
• Develop SFS and BOPIS • Web to store very quick
capabilities • Store to web very fast
• Boost accuracy and trust in • Mobile paiement exclusively
inventory data

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 RETAIL TRENDS I Intelligent Supply Chain

03-5 Supply chain efficiency

Ocado DHL and AR

• Automated logistic solutions • Introduces AR glasses for
for retailers employees within its
• 36,000m2 of automated warehouses
warehouse for Monoprix • 15% increase in productivity
• 50-item order ready in 5 • Faster and more simple
minutes onboarding process

Undiz Lenovo
• Innovative and efficient order • Uses cognitive capabilities to
fulfillment: delivery of the get insights out of internal and
order in a capsule (pneumatic external data
tubes) • Reduces response time to
• Optimization of the outlet’s supply chain disruption by
surface 90%
• Very easy return policy • Reduces its operational costs
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 RETAIL TRENDS I Intelligent Supply Chain

03-5 Demand forecasting

Afresh Hovis
• Aims at reducing food waste • Leverage data to get insights
• AI-based demand
on the quantity of bread it
forecasting should produce and where to
ship it

Conad Mr.Bricolage
• Price optimization solution • Avoids stock-out and over-
• Faster reaction time stock
• Improved competitive • Supply automation depending
positioning on demand scenarios
• Increased return on • Vekia’s client for 5 years
promotions • Ambition to deploy it in all
outlets in France
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 IBM VISION 0

5555
 IBM VISION

IBM platforms & offerings: DISCO

Digital Experience & Engagement Intelligent Supply Chain Digital Enterprise Operations

Design & Execute Enhanced Experiences Greater supply chain visibility Next Generation Enterprise Architectures
Watson Customer Engagement, iX, Watson Blockchain, Watson Customer Engagement, Watson IoT S4/HANA

Cloud Product and Asset

Customer Data Product Data Platforms Enhance Demand Forecasting Migration Optimization
and Insights Innovation (MetroPulse) (MetroPulse, Weather) (ICP, Hybrid Cloud) (MetroPulse, Watson IoT)
(Advanced Customer Engagement) (Watson)

Re-Platform The Store Intelligent Processes & Apps Optimized Operations

(re:Store) (Watson Customer Engagement, Services) (Services, Security, Mobile)

56 56
 Digital Experience & Engagement

1-800 flowers Leroy Merlin Brazil

Uses a AI-powered chatbot GWYN (Gifts When You Need) Uses IBM Watson for the Consumer Chatbots
• Finding the perfect gift, delivered quickly and within budget • Optimize customer service through digital platforms
• Manage multi-brands (Flowers but also chocolates, fruits etc.) • The virtual assistant takes questions about store addresses, trading
• 80% of users say they will use GWYN again system, services and opening hours

57
 IBM VISION

Intelligent Supply Chain

Unilever
Unilever uses IBM Metro Pulse, using internal and hyper-localized external
data, to get actionable insights and use it to act with agility (truly
personalized offers, assortments, more responsive supply chains, targeted
services and much more)
Walmart
Walmart now uses IBM FoodTrust to trace its lettuce, spinach and mangos to :
• Avoid contamination in the supply chain
• Enable customers to know in details where their food come from but also
how it was produced and shipped

58
 IBM VISION

Digital Enterprise Operations

COFCO 4 Casino
Having done major acquisitions in recent years, COFCO International is 4 Casino uses Watson IoT and Watson capabilities to
looking to build a global platform for its growing business and has selected • Better master the cold chain
SAP S/4 HANA to be a catalyst for the organizational transformation • Monitor out of stock
• Ultimately improve operational efficiency and take better care of

59 customers’ health
 IBM VISION

IBM platforms & offerings

Business Digital Experience & Intelligent Supply Chain Digital Enterprise Operations
Transformation
Engagement Build trust by reliably delivering with Re-invent the model for efficient associates
Imperatives Seamless brand experience at Home - On
agility anywhere and continuously funded innovation
the Go - In the Store

IBM Food Trust

Watson IoT
Selected Watson Assistant
Technology &
IBM TradeLens
Industry
Platforms
Advanced Customer AI / Watson Mobile
Watson Supply Chain Insight
Engagement

MetroPulse

Architecture Data Cloud Security

Industry expertise CPG Retail Agribusiness

6

60
Contact :

Sandrine Lebouc
Consumer Industry, Marketing Leader
IBM France

sandrinelebouc@fr.ibm.com
Linkedin
@SLebouc

March 2019