LaMercatique BY GREGORY POUY WITH
LOVE THE FUTURE OF SOCIAL HOW CAN BRANDS TACKLE THE COLLABORATIVE ECONOMY?

LaMercatique Gregory Pouy Marketing artisan
in a Digital age gregory.pouy@lamercatique.com @gregfromparis The Author! The Inspiration! CROWD COMPANIESJEREMIAH OWYANG

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LET’S AGREE ON SOMETHING

LaMercatique SOCIAL MEDIA WAS A
GREAT OPPORTUNITY FOR BRANDS TO (RE)CONNECT WITH PEOPLE

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BUT

LaMercatique REALITY CHECK FOR MOST
BRANDS, SOCIAL MEDIA JUST WAS DECEPTIVE

LaMercatique DON’T BLAME FACEBOOK I
TWITTER I INSTAGRAM ...

LaMercatique THE TRUTH IS MOST
BRANDS ARE NOT CONSUMER-FOCUSED (even if they say they are)!

LaMercatique AND EXPECTED SHORT TERM
RESULTS !

LaMercatique THEY’VE TREATED SOCIAL MEDIA
AS A MEDIA ONLY

LaMercatique THAT’S WHAT WE CALL
A F-O-U-L

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BUT MEANWHILE...

LaMercatique PEOPLE HAVE GOTTEN ORGANIZED
WITH THE HELP OF STARTUPS

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THE COLLABORATIVE ECONOMY HONEYCOMB

LaMercatique THAT’S THE EQUIVALENT OF
$50 BILLION IN 2014 Source: Price Water

LaMercatique THE FACTORS CONTRIBUTING TO
SUCH A RISE ARE SOCIETAL FACTORS ECONOMIC FACTORS TECHNOLOGICAL FACTORS Population density Mindset of sustainability Lifestyle trend among youth Altruistic Mindset Independent Mindset World population increase Strained resources Economic disparities Excess or Idle Inventory Inaccessible luxury Influx of VC Funding Social Networking technologies Mobile technologies Payment systems

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PEOPLE BYPASS
INEFFICIENT ORGANIZATIONS

LaMercatique DON’T FIGHT IT JUST
ACCEPT THAT “BUSINESS AS USUAL” HAS CHANGED

LaMercatique YOU MUST REACT THE
COLLABORATIVE ECONOMY IS HERE TO STAY

LaMercatique AND AS ALWAYS PEOPLE
ARE THE ONES SHOWING YOU THE WAY

LaMercatique If the rate of
change on the outside exceeds the rate of change on the inside, the end is near. Jack Welch, former Chairman and CEO of GE

LaMercatique PEOPLE WILL SWITCH TO
SHARING IF IT MEANS DEALING WITH A KNOWN BRAND ACCOMODATIONS GIFTS HOME FURNISHINGSTRANSPORTATION +48% +20,8% +48%+78% Source: Crowd companies and vision vertical

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SOUNDS LIKE
AN OPPORTUNITY

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READY?

LaMercatique THE COLLABORATIVE ECONOMY’S 6
MAJOR AREAS OF IMPACT

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LaMercatique WOULD YOU BE SURPRISE
TO SEE HIM IN A MOVIE?

LaMercatique WHAT YOU DO IS
LESS IMPORTANT THAN WHY AND HOW YOU DO IT

LaMercatique A COMPANY AS A
SERVICE CHANGE YOUR BUSINESS MODEL PRODUCTS SERVICES The collaborative economy is an economic model where ownership and access are shared between people, startups and corporations

LaMercatique AVIS HAS INVESTED $500
MILLION TO ACQUIRE ZIPCAR AND ENTER THE COLLABORATIVE ECONOMY THROUGH EXTERNAL GROWTH. Zipcar is a smart way to drive in NYC. With 3,000 unlocked cars in NYC that you can reserve by the hour or day, you can enjoy riding through the city without the hassle of owning a car in NYC. SHAREDECONOMY

LaMercatique BMW PARTNERED WITH SIXT
TO CREATE DRIVENOW, A RENTAL SERVICE THEY HAVE ENTERED THE ON-DEMAND ECONOMY Cars are one of the items people are the most willing to share. Why? Because a car is costly. And because a car is often not in use, and loses value even when it’s not used. The program is profitable for BMW. SHAREDECONOMY

LaMercatique DELL WAS ONE OF
THE VERY FIRST COMPANIES TO EMBRACE CO-CREATION SO SERIOUSLY Dell created Ideastorm in 2007, almost 10 years ago, in order to gauge which ideas were most important and relevant to the public. Amongst the 24,000 ideas proposed (550 were implemented), the most popular suggestions were: offer Linux software in Dell product, base technical support in the U.S. and renew the Dell website. CO-CREATE

LaMercatique GENERAL ELECTRICS ENCOURAGES ITS
COMMUNITY TO CO-CREATE THE NEW WORLD OF HOME APPLIANCES GE has invested $30 million in Quirky and has now launched FirstBuild – a co-creation platform where ideas are getting evaluated, produced and eventually sold. IDEATE EVALUATE MAKE PRODUCE SELL CO-CREATE

LaMercatique WHOLE FOODS PARTNERED WITH
INSTACART TO PROVIDE FOOD DELIVERY They have partnered in 15 U.S. cities so far, offering customers the convenience of online grocery shopping, delivery and pickup without having to handle the logistics. More than $50 million in sales from 160 stores have been generated. COLLABORATION

LaMercatique WEST ELM HAS PARTNERED
WITH ETSY TO WIDEN ITS OFFER AND THEN CREATE MANY OFFERS West Elm has partnered with Etsy since 2010. Both want to elevate handmade products and help manufacturers, artists and craftsmen grow their business. Etsy sellers are in stores, catalog and website. West Elm also sources local products. The retailer has created Etsy pop-up stores inside its own stores. PARTNER

LaMercatique BARCLAYS HAS LAUNCHED THE
WORLD’S FIRST COMMUNITY- DESIGNED CREDIT CARD. Barclaycard’s Ring is a new type of credit card. Cardholders are in control, because they influence benefits, rates and penalties. They even receive a share of profits generated by the business. Barclaycard has reduced its support expenses by $50 million and has improved customer retention (25%) by reducing customer complains by 50%. REVENUESHARE

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LaMercatique ANASTASIA, A MAKE-UP BRAND,
HAS ASKED CONSUMERS TO CREATE CONTENT ON YOUTUBE AND INCENTIVIZE THEM WITH CASH TO DO SO. Anastasia of Beverly Hills is a beauty brand with a strong community of creators. ABH licensed Create It software to amplify Community Driven Content designed to raise brand awareness, engagement and increase online sales. As a result, 330 videos were created, reaching 6M people with a 3% engagement rate. 20,000 users produced $250,000 of value in earned media and user data, a ten-fold return on investment. COCREATE

LaMercatique LANCASTER, LIKE MANY OTHER
BRANDS, UNDERSTOOD THE IMPORTANCE OF PARTNERING WITH BLOGGERS TO DEVELOP NEW RANGES OR PRODUCTS. Since bloggers like Betty Autier have a very strong follower base, it is clever to use them not only to showcase products, but also to take advantage of their creativity and co-create products with them. Bloggers will love this initiative, so will fans, and the brand will come out a winner, from both an image and a business perspective. COCREATE

LaMercatique H&M HAS PARTNERED WITH
MANY LUXURY BRANDS, RECENTLY INCLUDING BALMAIN. The “co” universe also means having your shakras open to new and very different partnerships. H&M has greatly benefitted from this masstige operation, both from an image/positioning perspective but also in terms of business. This partnership has attracted a lot of clients, including new customers who will take advantage of being at H&M to buy other things COLLABORATION

LaMercatique BONOBOS USED KICKSTARTER TO
MAKE SURE PEOPLE REALLY WANTED THAT SHARK COSTUME After Kate Perry’s appearance, a lot of people were asking about those costumes on Twitter. First the designer tested the idea on Twitter and got amazing feedback. So it decided to launch a Kickstarter campaign to crowdfund the project and make it happen. COFUND

LaMercatique CITIGROUP SPONSORED THE NEW
YORK CITY BIKE Citigroup invested $41 million to take over the bicycle- sharing system in NYC. Its name is used in countless everyday conversations and thousands of people are riding around, advertising for it. Pretty good for the top of mind. SHARINGECONOMY

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LaMercatique HOME DEPOT PARTNERED WITH
UBER TO DELIVER CHRISTMAS TREES In December 2013, Home Depot partnered with collaborative app Uber to have Christmas trees delivered, thus avoiding clients the struggle with a hard-to-carry item. A special hashtag for this collaboration was created, to use as a communications tool. SHARINGECONOMY

LaMercatique DODGE ENABLED PEOPLE TO
CROWDFUND THEIR FUTURE CAR WITH THEIR FAMILY AND FRIENDS A car is always a very costly purchase, and rarely can someone buy you a brand new car. But your our friends and family could help you buy bits and pieces of a car, very much like a wedding registry. COFUND

LaMercatique COCA-COLA ENABLES PEOPLE TO
WORK LOCALLY Coca-Cola has bought Wonolo, which allows people to work in the supermarket while doing their grocery- shopping. For example, they can help fill Coke display shelves and earn a few dollars doing so. COLLABORATION

LaMercatique NORDSTROM USE PINTEREST CHOICES
TO ENHANCE ITS MERCHANDISING Nordstrom is one of the strongest brands on Pinterest, with more than 4.4 million followers. The retailer decided that its community should influence its displays in every store. Pinterest-popular items are displayed with a red tag identifying them as such. COPICKING

LaMercatique NIKE WAS THE FIRST
SHOE BRAND TO OFFER CLIENTS WIDESCALE PERSONALIZATION OF THEIR SHOES Mass personalization is a way to co-create with clients, to make them feel unique, even when they all have the same product. Nike tackled this insight at a very early stage and now many brands have developed the same strategy. COCREATE

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LaMercatique PATAGONIA ENCOURAGES ITS CLIENTS
TO WEAR USED PRODUCTS First Patagonia created a partnerships with Ebay, to encourage second-hand trade, without making any profit. With 100,000 members and thousands of products sold, it answers a real customer need. The brand has now launched the Worn Wear project, which includes a touring clothing-repair truck and client stories told on Youtube. SUSTAINABLE

LaMercatique VIRGIN ATLANTIC ENHANCES THE
CUSTOMER EXPERIENCE UNTIL THE VERY END OF THE JOURNEY Flying is always stressful and quite expensive. Virgin Atlantic has partnered with Taxi2 web, to enable passengers to link up easily with other travellers who may be on their flight and travelling to a similar part of the city, so they can share the taxi ride. The scheme is not limited to VA customers, passengers on other airlines can also share rides. SHARE

LaMercatique CARHARTT ADDED REAL-TIME CHAT
FOR CUSTOMER SERVICE ON THE WEBSITE,THANKS TO ITS ADVOCATES Carhartt is very much focused on its consumers and wants to provide the best service. The brand was doing all the classic stuff (800 number, Facebook & Twitter) but it decided to deliver real-time answers on its website. It has turned to Needle to match clients and brand advocates. The results are great: +12% conversation rate and 9+ CSAT average COLLABORATION

LaMercatique SWISSCOM HAS LAUNCHED “SWISSCOM
FRIENDS” - A CROWD- BASED CUSTOMER SERVICE THAT ENABLE NEIGHBOURS TO COME AND HELP YOU Swisscom has partnered with Mila, a startup specialized in the collaborative economy and customer service. Anyone can propose their services to Swisscom and earn money for it. And customers pay a cheaper price for the service. So far, the results include offloaded customer requests, enhanced self-care and increased customer satisfaction. COLLABORATION

LaMercatique IKEA HAS ORGANIZED AN
ONLINE FLEA MARKET This was clearly a communications tactic from the brand. Nonetheless, for a brand that refuses to sell most of its items online, this was a smart move. But it’s not comparable to Patagonia’s initiative. SUSTAINABLE

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LaMercatique MOBIVIA GROUP HAS DECIDED
TO BECOME A “LIBERATED COMPANY” Entrepreneurship has always been in the company’s values, but a year ago, internal management policies changed, enabling each employee to become an actor. Each employee of one of the company (Norauto) can propose a project, and project teams are structured by skill, not by hierarchical level. COLLABORATION

LaMercatique GOOGLE IS PROBABLY THE
MOST WELL KNOWN COMPANY TO IMPLEMENT INTERNAL CO-CREATION One of the stories at Google is that each week, employees are given free time to develop new projects and ideas. If the project is relevant, it will be developed at Google X, Google’s semi-secret research and development facility. CO-CREATION

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LaMercatique AMERICAN APPAREL RECRUITS BRAND
ADVOCATES TO REPRESENT THE BRAND The brand works with a company call Needle whose mission is to help companies define shoppers and match them with brand advocates who love the brand and use its products. USEYOURFANS

LaMercatique GAP AND DIVVY HAVE
PARTNERED TO SHARE THEIR SEASONAL WORKERS. Since the two companies have very different high seasons, they thought they could share their workforce. From March to October with Divvy and from October to February at Gap. Very interesting for each party. PARTNERSHIPS

LaMercatique WALMART TRIED TO USE
ITS CLIENTS TO HELP WITH LOCAL DELIVERIES. The idea was simple: since you are at Walmart, why not deliver groceries to your neighbors and make some extra dollars. The idea didn’t work out because the cold chain couldn’t be maintained. USEYOURCLIENTS

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SO NOW!

LaMercatique HOW CAN YOU GET
ORGANIZED?

LaMercatique DECISION MATRIX WHY 1
WHAT 2 HOW 3 WHICH PROJECTS FIT IN WITH YOUR SENSE OF PURPOSE? WHAT DO YOU WANT TO HELP PEOPLE WITH? WHAT IS THE BEST WAY TO DO SO? TEST 4 PROTOTYPE AND LEARN LAUNCH 5 WHAT IS THE BEST WAY TO DO SO? Please put a note from 1 to 5 for each element RELEVANCY COST SPEED BUSINESS MODEL INTERNAL COMPETENCIES EXTERNAL ACQUISITION PARTNERSHIPS CONSTRAINTS COLLABORATIVE ECONOMY DECISION FRAMEWORK NEW ACTIVITY EXTERNAL ACQUISITION ORNEW ACTIVITY IMPROVEMENT OF AN EXISTING ACTIVITY

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NEED AN EXAMPLE?

LaMercatique THE MOBIVIA GROUP IS
THE EUROPEAN LEADER IN MULTI-BRAND AUTOMOTIVE EQUIPMENT (NORAUTO, MIDAS...) The group has completely changed its business perspective and is working to address new mobility means. It has built a global plan and methodology using the framework NEW ACTIVITIES (EX: DRIVY) IMPROVE EXISTING ACTIVITY (EX: ELIOCITY) CHANGE THE MINDSET

LaMercatique THE MOBIVIA GROUP EXAMPLE
NEW ACTIVITIESIMPROVE EXISTING ACTIVITYCHANGE THE MINDSET INTRAPRENEURSHIP The company culture encourage a lot employees to take initiative and propose projects GOOGLE PLUS GROUPS The group is using Google + for internal purposes in their brand (Norauto) – there are multiple internals groups addressing specific subjects MADE IN CLIENTS Each time they are about to deliver a new product or make an evolution in an existing one, they test on clients and really co create with them the best service possible ELIOCITY Trying to change urban mobility by transforming the car into a connected vehicles through a box. The box allow clients to have a connected car and be part of a community. But also the box allow the clients to have a better revision of their car. DRIVY Drivy allows anyone to rent their own car. It’s a peer to peer service. With 700,000 members and 35,000 cars in Europe, it is one of the leader in the market. GREEN ON Specialized of professional 2 wheels vehicles – those vehicles can be access freely. It has 3000 users WAYZ UP Wayz up is an app that enable people to share their ride to go working It has more than 10 000 people sharing their ride

LaMercatique READY? JUST FOLLOW THE
LEADERS

LaMercatique THANK YOU GREGORY POUY
/ LAMERCATIQUE