19&20 MARS 2019
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Retailer strategy

Category : Distribution channel: strategy and new experiences

Published on 28/02/2019

image Retailer strategy

Biocoop, a leader in the distribution of organic products (€1.1 billion turnover), has invested €1 million in BioBurger, an organic fast food chain that has 4 restaurants in the Paris region and plans to open some 30 across France by 2022.

Monoprix settled on a name for its entry level brand: “P’tit prix.”


In the summer of 2019, Terracycle, Carrefour France, and leading FMCG brands will test Loop, an e-commerce distribution model based on deposits. The idea is to offer consumers an alternative to single-use packaging and move towards zero waste. The customer’s first purchase includes a deposit, and he can opt for an automatic renewal of the product’s delivery. The consumer pays a deposit on the packaging only once, which is gradually refunded with each return. The customer consumes his products, then the packaging is collected at his home, washed, and reintroduced into the circuit.


The Day-by-Day
brand now offers a range of 4 alcoholic beverages in bulk: Vodka, Cognac, Rum, and Gin.

Colruyt offers a free shuttle to its supermarket



Distribution channels: new shopping experiences


Deliveroo’s new ad campaign features a poster with 2,000 free hamburgers.



Auchan
will test Auchan-Minute, an unmanned container store that remains open 24/7, in Villeneuve d’Ascq in March. In China, there are already 750 such containers (18m2, 500 products in stock).

Linéaires reports that Carrefour will launch 3 concept hypermarkets in France this year, under the code names Essentiel, Rebonds, and Next.

Essential is a low-cost concept. It will be tested in Avignon. Customers will find discount prices, basic products displayed on pallets, and a self-service market area. The retailer believes this concept could enable it to save a dozen hypermarkets. However, Linéaires reminds us that others have already tested a similar concept without success: Géant Casino and Auchan .... As well as Carrefour’s Hyper Champion, in 2004.


Rebonds is inspired by how independent entrepreneurs manage to turn around an unprofitable site: more autonomy for the managing team. It will be tested in 5 outlets.


Finally, Next will be deployed in 4 hypermarkets. They will be smaller and focus on food, including catering options.


Source: Gondola

The first Eataly, an Italian food store, will open in the Paris Marais district in April 2019. It will consist of a large grocery store on the ground floor and 7 food outlets in the basement and on the 2nd floor.

IRI’s 8 e-commerce trends:

o Big data management: better understanding of purchasing behaviour to make recommendations and personalise offers.
o Geo-marketing: Attract on-the-go consumers in stores via geolocation, focus on impulse buying, ...
o One-click order: Amazon’s Dash-Button enables consumers to order a product in one click.
o S-commerce: More than half of British shoppers use the smartphone apps of retailers rather than their website, and this trend is growing.
o Targeted rewards to improve consumer loyalty.
o Conversational shopping enables you to order using your phone’s voice assistant
o Multi-channel experiences to offer the consumer a choice between click & collect or delivery
o From the producer to the consumer: brands are bypassing distributors and selling directly to consumers via personalised offers and rewards, ...

Consumer trends & changes in purchasing behaviours


84.3% of French people drink wine, but this figure drops to 77.8% for the under-35s, a sign that Millennials are less enthusiastic than their elders. The average buyer purchases 47.16 bottles per year, but Millennials only buy 14.99! The average buyer spends €128.38 per year, but Millennials only spend €49.82. On the other hand, Millennials spend an average of €3.32 per bottle, while the average spend is only €2.72.
Innova Market Insights reports that Americans consume meat or dairy substitutes due to health issues (50%), to vary their diet (36%), for the novelty factor (18%), and for sustainable development reasons (17%).

According to the agency’s latest figures:


69% of French people consume organic food for health reasons, 58% for the quality and the flavour, and 56% for the environment
88% of French people say they consume organic products. The number of daily consumers is 12%, -4% less than last year
81% of organic consumers buy mainly in supermarkets
Price remains the main drag on organic consumption (for 84% of consumers)