How can retailers incorporate the concepts that underpin the sharing economy into their value chain when their model is based on the principle of acquiring goods? This slideshare enhances 4 types of collaborative models retail is experimenting with, through a selection of examples: co-creation, co-marketing, co-consuming and co-recycling.
4. A long-term trend
Collaborative consumption:
economic model in which usage is given priority over ownership.
The usage of a product, service or privilege can be enhanced by sharing, trading, exchanging, selling or leasing
it. (Wikipedia)
19%
"Firmly committed"
29%
"Persuaded"
32%
"Aware"
20%
"Resistant"
Nearly half of all people in France are collaborative consumption enthusiasts.
48% of people in France practise collaborative consumption on a regular basis
and 80% practise or are intending to practise collaborative consumption.
(TNS 2013 Confidence Monitor)
5. A range of different motivating factors
4 factors motivate consumers:
• Unprecedented economic constraints
• Rapid development and increased adoption of information and sharing systems
• Known ecological threats
• Unreasonable consumption has reached saturation point
63%
Less
expens
ive
55%
You can find
bargains
38%
Making objects
last longer,
giving them a
2nd lease of life
28%
A consumption
model that is
better for society
28%
Easy over
the
Internet
18%
A different
consumption model
that appeals to me
14%
I meet new
people through
it
8%
I like making
new discoveries
and
experimenting
with new things
6%
I trust other
people more
than I trust
retailers
Factors to do with
purchasing power
Factors that explicitly relate to the alternative nature of this
means of consumption
(source: TNS 2013 Confidence Monitor)
6. A wide range of applications
Use
Co-Produce
Exchange
Deliver
Distribute
Co-Finance
Share
Couchsurfing
Coinnovate
Purchase as a group
Cohabit
Coworking
Codevelop
Crowdfunding
Trading
Contributive production
Recycle
Lend
Exchange
Repair
Upcycle
Give
Economise
PARTICIPATE
&
SHARE
Participate
BEFORE use
AFTER usageUSAGE
Coaccommodation
Car-sharing
7. Collaborative & Retail:
Opportunism or revolution?
Co-Create
Co-Market
Co-Consume
Co-Recycle
Purchasing
HOW can retailers incorporate the concepts that underpin the sharing economy into their value chain
when their model is based on the principle of acquiring goods?
Have retailers put together the principles of collaborative consumption in an opportunistic and ephemeral
way, or is it a long-term trend that may profoundly alter the distribution of goods and services?
9. Co-Create
Potential benefits for business:
> Analysis of the customer's needs: understand, actively listen, anticipate
criticism
> Customer relationship: strengthen the link, bridge the gap between the
retailer and the customer, bring together a community of ambassador
customers
> Innovate: foster new ideas, create new products and services, experiment
with proposals for innovation
> Communicate: draw on a community of ambassador customers to maintain
an active presence – on social networks in particular.
Design
Invent
Participate
Finance
Promote
Support
Manufacture
Collect
10. IKEA has its paper catalogue recreated by its fans on
Instagram
In Norway, IKEA invited its fans to publish pages
from its paper catalogue on Instagram. In four
weeks, it was available in its entirety on the social
network.
To reproduce the contents of its famous catalogue on
the social networks, IKEA Norway – together with
advertising agency SMFB Oslo – used a competition to
call upon the brand's 160,000 Facebook and
Instagram fans.
The rule was simple: fans had to take a photo of a
page from the IKEA catalogue and publish it on
Instagram with the hashtag #IKEAKATALOGEN. They
also had to indicate which products they wanted to win
using a second hashtag.
11. An ING Direct Web Café, please
Will you have a little online co-creation?
At the end of 2013, ING Direct (900,000 clients in
France) launched its Web Café – an online discussion
and co-construction area featuring a forum, blog and
an ideas box known as the "Labo".
The Labo is a special area where participants can
leave their ideas. This way, the online bank is also able
to find out what they want and any criticisms they may
have. It is then better able to tailor its products to meet
their requirements and offer new services that provide
higher levels of satisfaction.
12. Auchan is involving its customers in product design
Auchan unveils its Quirky products – products invented
by Internet users.
The first French products bearing the Quirky stamp –
products designed by Internet users – will hit Auchan's
shelves in spring 2014. Ultimately, four products will go on
sale.
Earplugs with an integrated alarm clock, a bin that scans
whatever products you throw into it and then automatically
adds them to a shopping list, a hammock that weighs you,
etc.Since the Quirky collaborative platform was launched in
France in mid-September, more than 800 ideas have been
submitted by Internet users.
13. Club Med gets involved in co-creation
Club Med gets its fans to vote for its new Val Thorens
Village
In the first week, fans stated a preference for the name "Val
Thorens Sensations" over "Val Thorens Titanium"; in the
second week, they selected a climbing wall with a pure,
uncluttered design; and in the third week, they chose
mountain biking on snow over ice driving.
The operation, which began at the end of January, continued
through to April. The new village is scheduled to open next
December.
To get fans to vote, every week Club Med will randomly select
one person who will win a holiday for two at the village. This
person will then be encouraged to get their friends to take
part.
14. C’Vous, the Casino Group's customer relations platform
Cvous.com is the result a dual-pronged concept
that is completely new in the retail sector: a
community approach combined with a co-creation
strategy.
The idea behind C'Vous is to give a voice to "active
consumers" so that they can make suggestions and
recommend examples of good practice for products
and services.
Consumers can vote for their favourite products,
provide tips and share their good ideas, or support a
producer in their particular region.
The Casino group launched the C'vous project in order
to "create links with consumers, as well as with other
retailers and their customers".
15. At Crédit Agricole,
customers are designing their own banking apps
The cooperative bank has launched its own app
site.
It is now inviting its customers to send their ideas for
mobile banking services to a group of outside
developers.
The aim was to find out from customers what kinds of
mobile apps would help them out. "There are more
ideas in the heads of our 21 million customers than in
the heads of bankers".
The way in which the CA Store works is very simple.
By filling in a form on the website, any customer can
submit their app idea and browse those that have been
left by other Internet users. These ideas are then rated
and comments are left about them, pushing the ones
that people think are the most useful up the list. A
group of developers has access to the features that
people would like to see. This group is made up of 20
or so IT companies outside Crédit agricole working as
part of a cooperative – "Les Digiculteurs" ("digital
farmers"). If a particular idea appeals to them, they can
start developing it.
16. A farm with a market encourages consumers
to play an active role in food production
The Farmery wants consumers to be able to
monitor cultivated foodstuffs as they grow and get
involved in the farming process.
By selling farm products direct to consumers, farmers
can increase their margin while at the same time
developing closer relations with their customers. The
Farmery in the US seeks to encourage consumers to
monitor the growth of the foodstuffs that they
purchase, and play a more active role.
The final project should have four dispatch areas and a
large warehouse where products will be on sale to the
general public. The whole farm has been designed so
that consumers end up with as sound and
understanding as possible of the system used to
produce foodstuffs. The aim is to encourage
consumers to grow their own foodstuffs.
18. Co-Market
Distribute
Deliver
Advise
Potential benefits for business:
Co-marketing is definitely one of the most delicate segments for retailers in the
sharing economy. Indeed, the concept of the collaborative supermarket is an
atypical business model that is very different from the standards involved in
traditional retail.
It involves the basic consumer evolving into the socially-responsible consumer.
Having membership of a local community, being involved in or co-managing a
collaborative supermarket means choosing not to buy into the market economy
model. This is an opportunity to experience something different, to create links
with the local community and to subscribe to social and ecological values.
19. New York's "socialist" supermarket
Inexpensive, organic and smart: a New York
supermarket managed by its own customers has
been flourishing for forty years.
The 16,200 people who shop at Park Slope's Food Co-
op also work there for free for two and three-quarter
hours every month to keep the store up and running.
This means that 75% of its workforce is made up of
volunteers.
The 500 volunteers who run the store every day can
choose from a range of different tasks.
In the basement, next to where the stock is, there is a
special place where raw materials are packaged.
Volunteers cut cheese, weigh and wrap up
condiments, herbal teas and spices. Those entrusted
with cleaning the store – the most arduous task – have
their working time cut down to two hours.
20. A zero waste supermarket in London
In London, The People's Supermarket is a
sustainable food cooperative based on a different
kind of social and ecological model.
Everything is reused so as to avoid wastage. For
example, an unsold courgette may very well end up as
a soup or even compost.
Its main distinctive feature is its membership cost:
membership is only £25 per year (around €31). Each
member then gets 10% off everything in the store –
provided they volunteer for four hours a month.
Another of its distinctive features is the very different
way in which it manages waste. For example, a
courgette purchased from a small farmer (one based
locally, preferably) which has still not been sold after a
few days will end up being used by The People's
Kitchen. This is the supermarket's very own kitchen
which is used to prepare dishes for sale in the store.
21. In Paris, a collaborative purchasing group is striving to
make high-quality products affordable for everyone
Inspired by the Park Slope supermarket in New
York, the Louve is a cooperative purchasing group
which is gearing up to open a collaborative
supermarket
Currently, the purchasing group puts in orders for high-
quality products every four weeks. Because the initial
selling price is only slightly marked up, these products
are very affordable.
A collaborative food cooperative – whose members
volunteer at it – is scheduled to open in 2015, in north-
east Paris.
Every aspect of the Louve is collaborative: it is in the
process of finalising its finance campaign through the
KissKissBankBank crowdfunding platform so that it can
purchase equipment, pay a temporary project
coordinator, find an initial venue for welcoming its
members and sympathisers, fund the purchase of a
lorry and other equipment, develop a sophisticated
website, increase the frequency of distributions,
accelerate the diversification of its product range, etc.
23. Co-Consume
Use
Maintain
Consume
Potential benefits for business:
Co-consumption is the segment of the collaborative economy that gets the most media
coverage – increasing numbers of consumers are getting involved in it (Autolib, Blablacar,
etc.)
Retailers are increasingly factoring in consumers' aspirations and new modus operandi,
making use of the increased adoption of information technologies which can easily create
links between people.
Retailers are aware that their model is losing (some of) its appeal. They have the assets
(customer database, physical network, logistics, etc.) in order to play a key role in driving
this main trend. And this is also clearly an opportunity for them to create new offers and
play a central role in the changes affecting our modern companies.
24. Citroën Multicity
gets your feet moving
Citroën has just launched a new travel website that
includes all available modes of transport –
including walking.
How can a car manufacturer like Citroën become a
travel agency and bolster its car hire business along
the way? Needless to say, the answer involves the
Internet. Multicity – Citroën's new website – does much
more than simply working out the best door-to-door
route for Internet users. Interestingly, the system
makes use of all available modes of transport – car
(obviously), as well as metro, tramway, bus and (for
Paris) the regional express train network.
Nor does it forget air, train, boat, bike hire or even
walking.
25. Mercedes is inviting its customers to share their cars
Mercedes has unveiled an on-board application
that drivers can use to select a car-sharing
passenger via Facebook.
In his presentation of the new CarTogether car-sharing
system, Mr. Zetsche did not hide the fact that this was
an unexpected move, somewhat out of step with
Mercedes' strategy: "Some people still see car-sharing
as communism. And if it is, then long live the
revolution!"
This telematics application makes car-sharing easier
by helping drivers find someone to share their journey
with. And thanks to social networks such as Facebook,
drivers can decide which hitch-hikers to pick up based
on their personality and tastes.
Mercedes is buying into the car-sharing trend – and in
France, 3 million people are already experiencing it.
26. In Sweden, drop by to pick up some nails
and leave with a drill!
At the Malmö Hardware Store, as well as picking
up nails, screws, pots of paint and other
consumables, customers can borrow a range of
tools for their DIY work.
An economical, ecological, collaborative and – most
importantly – a useful initiative – particularly when you
know that the average time that a drill is used for is
only 12 minutes and that 50% of all of them are never
used at all.
The Malmö Hardware Store has developed ToolPool –
an original scheme for lending out these machines
(sales of which are only very small) for free.
Consumers can book the tools via Facebook: they first
need to register before they can book the equipment
that they want to borrow. And then the reservation is
reflected in a status update on the store's Facebook
wall.
27. The SNCF transport group has purchased a specialist site
to complete its environmentally-friendly transport offering
The SNCF group has confirmed – by acquiring Green
Cove, a start-up company in which it had already
acquired a stake in 2009 – that it wants to provide its
customers with a complementary mobility offering.
The SNCF group is going to roll out its car-sharing
service via the Internet, a service that will bear the SNCF
name and which will be aimed at two types of users:
companies offering their employees the option to share
their vehicles with several other people for the journey
between where they live and where they work, as well as
individuals who have to drive longer distances.
In doing this, the group is developing initiatives which are
helping to establish it as a European "eco-mobility"
leader. After iDBus (which operates coach services over
long distances) and iDCab (a pre-booked taxi service),
the SNCF is now completing its range of transport
services by taking advantage of a new environmentally-
friendly trend with an initiative aimed at very
environmentally-aware passengers as well as companies
and local authorities involved in sustainable development.
28. MU, mobility according to Peugeot
Peugeot has developed "MU" – a new mobility
offer. It's a hire service that people can also use for
weekends away with everything they need, or for
moving house without having to call professionals.
Not having a car can make life very awkward. How do
you get around when you're not in a big city? How can
you go away for a weekend or take your children to
ride their bikes?
MU is an account that you can top up with units for
hiring mobility services at Peugeot dealers. These
services include cars, scooters, bicycles, utility
vehicles, accessories and house move kits.
30. Co-Recycle
Recycle
Eliminate
Repair
Trade
Redistribute
Potential benefits for business:
Creating a virtuous circle for recycling clothes, collecting old pairs of shoes in order to
fund an association or arranging an exchange of expertise between consumers… such
initiatives are on the increase. This is an excellent way for retailers to commit and establish
themselves as economically-responsible players.
And it's also a strategy that they can use to establish themselves as major players
facilitating the circular economy – reselling objects to give them a 2nd or 3rd life.
Retail brands also enhance their image by becoming involved in issues to do with
responsible consumption and the virtues of recycling.
31. The Halle aux Chaussures and Chaussland join forces
with the Relais to collect old shoes
The Halles aux Chaussures and Chaussland have
set up initiatives to collect shoes in their stores.
The initiative has been a huge success: in barely two
years, nearly 6 t of shoes have been collected – the
equivalent of around 100,000 pairs.
Employees from the Relais organise the donation,
sorting and then re-sale of shoes (provided they are in
good condition) in order to finance its initiatives. The
Relais sells 5% to 10% of the items donated in its sixty
second-hand Ding-Fring boutiques and exports 30% to
35% of them to Africa where they are then sold by local
merchants.
Clothes and shoes that are in too poor a state are
recycled (transformed into cloths or insulation, for
example) and the rest is destroyed (around 15%).
32. Burton of London relaunches its major dressing room
clear
Burton of London has renewed its commitment
alongside the Restos du Cœur and is relaunching
its major Dressing Room Clear campaign in 130 of
its stores between 13 and 25 November.
In 2012, 177,860 items of clothing were donated as
part of the first Major Dressing Room Clear. This
redistribution of clothing worked so well because the
service was as similar to the one provided in the
brand's actual boutiques as possible (presentation,
advice, marking alterations, option to try items on in a
fitting room, bags, etc.), and the system was
implemented in 70 Restos du Coeur centres. The
voucher system itself was a success, with nearly
40,000 hot meals served.
For each item of warm clothing that they donate,
customers will get a booklet of 4 vouchers worth a total
value of €50. They can then use these in any of the
Burton of London stores in France.
The ready-to-wear brand then commits to providing a
meal for every voucher used.
33. Troc'Heures: a website for swapping DIY hours developed
by Castorama
"You need a hand with some work you're doing
and you have some time and/or a certain skill that
you can provide: then join the Troc’Heures
community, sign up and off you go!", as the
retailer states on the homepage of its new
service.
Castorama is breaking new ground in community and
collaborative services.
It's likely that – beyond the positive impact on its image
– Castorama sees this as a way of encouraging people
to start DIY work that they did not feel able to do
before (for both technical and financial reasons), and
so ultimately of boosting its sales of materials and
tools.
Each person who signs up is asked to fill in a short
presentation, provide their address (essential for geo-
locating adverts and exchanges) and specify the skills
they have from a range of 25 different categories.
34. Patagonia recycles clothes
In 2005, Patagonia launched its clothing recycling
programme.
The aim was to make all of its products recyclable by
the end of 2010.
Since the start of the programme, Patagonia has
recycled more than 13,200 pounds of clothing, and has
collected much more.
Today, more than 41,000 second-hand products are
on sale via the Common Threads store on eBay.
35. Décathlon wants to train people in collaborative
consumption with Trocathlon
A forerunner – for 28 years. Décathlon actually
launched the Trocathlon in 1986.
The aim: Help people sell their unused or little-used
second-hand sports equipment – bicycles, skis, fitness
or horse-riding equipment, etc.
Twice a year, Décathlon gets its customers to drop off
their unwanted second-hand sports equipment. If what
they drop off then gets sold, they receive payment in the
form of Décathlon vouchers. The service is completely
free and Décathlon does not receive any commission.
So sellers receive the whole value of their product and
the buyer, who gets equipment, does not have to pay
any commission. Customer and user satisfaction can be
attributed to the fact that the retailer uses its specialist
employees for the operation – they showcase the
equipment as best they can, help work out a price for it
and then drive the sales – as well as checking the
equipment's various safety points before it goes on sale.
36. Conclusion
• Retail is an intermediary profession: it involves a number of assets (customers, retail outlets, information
systems, etc.) and it would be legitimate for it to position itself as a link between consumers' new aspirations
and these new value proposals.
• Retailers are taking collaborative consumption seriously. The initiatives that are already under way have the
virtue of already existing, but the various challenges with which they are faced suggest that their deployment
should be accelerated – and quickly.
• That said, these strategies are not without consequences for retailers' purchasing, marketing and innovation
departments. The risk of value being eroded in the event of integration practices being poorly managed
should not be overlooked.
So does this trend for collaborative consumption in retail represent a
marketing/communications opportunity? Or will it have a long-term impact on
the economic retail model?
Watch this space...
Managing Director, Castorama