David J Smith GS1 Director, Omni-Channel IE

How GS1 is enabling its members to meet the needs of the 21st Century shopper Transforming business together

Tuesday November 29th 2016

© GS1 2015 2

Introduction to GS1

© GS1 2015

The global language of business

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Serving over

one million companies

2,500 people

helping us to achieve our vision

Across

150

countries

Over

20

sectors 112

Member Organisations

More than

6 billion barcodes read all over the planet

every day

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The commerce graph

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Retail from a consumer perspective: standards make it possible

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Providing a seamless consumer experience across physical and digital channels

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Omnichannel - a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.

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GS1 standards for Omni-Channel Retail

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Why do we need global omni-channel standards?

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Grow the Business

Reduce Costs

Leverage Consumer Insights

Manage Risk

GS1 standards make it easy for people to discover and purchase products wherever they are so that you can…

© GS1 2015

What is your biggest challenge?

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Web-Ready Products

Inventory Visibility

Fulfilment Strategy

Business Intelligence

Risk & Compliance

Grow the Business

Reduce Costs

Leverage Consumer Insights

Manage Risk

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How GS1 helps

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Grow the Business

Reduce Costs

Leverage Consumer Insights

Manage Risk

Better Search Results

Improved Product Information

Optimised Consumer Fulfilment

Smarter Analytics

Safer Products, Fewer Counterfeits

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Source: Internetworldstats, 2015

Internet penetration

Up to 10%

Up to 20%

Up to 30%

Up to 40%

Up to 50%

More than 50%

www.ecommercefoundation.org

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Global Internet Penetration

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Global B2C E-commerce Report 2016

Ecommerce Foundation Raadhuisstraat 22 1016 DE Amsterdam, the Netherlands

Website: www.ecommercefoundation.org Information: info@ecommercefoundation.org Twitter: @Ecomfound

In cooperation with: Executed by:

Ecommerce data provided by….

© GS1 2016

E-Commerce today

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• 70% of all sales are influenced by information consumers find on the web.

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Where buyers shop

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Consumers shop Internationally

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1,006000 1,101000 1,150000 1,183000 1,193000 1,185000 1,171000

,309000 ,361000

,451000 ,571000

,715000 ,848000 ,943000

2014 2015 2016 2017 2018 2019 2020Domestic Online Shoppers (Billions) Cross Border Shoppers (Billions)

Source: Alizila 2015

MORE THAN 900 MILLION CONSUMERS (45% OF ALL ONLINE SHOPPERS) WILL PURCHASE PRODUCTS

INTERNATIONALLY BY 2020

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Marketplaces globally

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Marketplaces globally

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Global market places are expected to own nearly 40% of online retail market in 2020. * Source: Rise of the Global Market Places research conducted by Ecommerce Foundation and Nyenrode Business University

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Two big name Marketplaces

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• 162 million active buyers

• 800 million listings worldwide

• 314 million mobile app downloads

• 244 million active customer

• 54 million Prime customers

• 44% of buyers start their search on Amazon*

• 48% products sold by marketplace retailers

* http://venturebeat.com

© GS1 2016

Local Marketplaces are becoming the go-to destination for online shoppers

• 60% of Polish ecommerce transactions take place on Allegro

• 80% = Alibaba’s share of the Chinese ecommerce market

• 83% of ecommerce in India is represented by the big three

marketplaces

• Amazon.de

- Over 31 million users but 20% of sellers are from the UK

• La Redoute.fr

- 50% of French online shoppers looking for fashion visit La

Redoute

- 35% of online shoppers in France are La Redoute’s clients

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Unique Product Identification: GTINs

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Marketplaces want Product GTINs…

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For many years From 2015 From 2016

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Reasons to believe: Top retailers rely on GS1

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The GS1 US GTIN Validation Guide is an important tool for improving the quality of product data and the relevance of online and mobile search results. — Walmart

The GTIN Validation Guide will help eBay find and resolve incorrect, duplicate and conflicting product information, improving visibility for merchant offers and enhancing the consumer search experience. — eBay

GS1 standards have been very valuable in our efforts to improve the online shopping experience by harmonising product data and eliminating inaccuracies. — Google

0 100 200

Amazon

eBay

Apple Sites

Walmart

Target

Best Buy

Sears

Etsy

The Home Depot

Macy's

Online Audience (in millions)

Source: comScore, Inc., March 2014

Amazon, eBay, Walmart, Apple iTunes and Google require or endorse GS1 identification for product listing.

Better Search

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eCommerce integrators

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• Industry players, especially those in e-commerce, are increasingly

asking their suppliers to use GTINs on their products.

• The GTIN and associated information about the supplier provide

retailers with a tool for assessing the authenticity of suppliers and

their products.

• However, industry and GS1 face challenges related to our keys:

• Resellers,

• Data Quality,

• Speed of GEPIR response,

• Poor omni-channel seller behaviours,

• Need for a single view/interface.

• All of these challenges can be addressed, in part, by a simple

Global Key Authentication Service.

GS1 MemberCheck

Why do we need a Key Authentication service?

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Users that require a flat file for their internal validation

systems. (some major ecommerce

companies)

Users that are currently happy with GEPIR

performance.

Users that will benefit from a basic Authentication service that provides a feedback loop to GS1 MOs, helps drive

membership growth, and raises relevance for GS1 around the world.

SUPER-USERS CASUAL USERS OMNI-CHANNEL BUSINESS USERS

Who is the GS1 MemberCheck Service designed for? It is focused toward Omni-channel business users

GS1 MemberCheck

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How do consumers search the web today?

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Type words into search

Apps

Speak into device

Use location-based searching

TV content provider

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What about searching for products?

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“red ballet shoes size 6

Retailer app

“Add carrots To my online order”

Nearest shop selling…

Latest “Star Wars”

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Amazon Echo video here https://www.youtube.com/watch?v=sulDcHJzcB4

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© GS1 2016

E-Commerce today

70% of all sales are influenced by information consumers find on the web.

Whether you’re a brand or a retailer, now is the time to make the information about the products you sell visible and accurate.

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© GS1 2015

What people are saying

“GS1 standards have been very valuable in

our efforts to improve the online shopping

experience by harmonising product data

and eliminating inaccuracies.”

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— Eric Tholomé, Google Shopping

Better Search

© GS1 2015

People struggle to find products, especially as

they move from home to mobile device to store.

When products are uniquely identified and when

structured data is used on web pages to describe

products, search engines deliver better results and

consumers find what they want more quickly.

What we mean

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Better Search

© GS1 2015

The problem: Does your product speak search engine?

• Shoppers are frustrated by inconsistent search results; sales are lost

• Products have poor or no positioning on the digital shelf

• Difficult and expensive to find and aggregate product data

• Challenges linking social media to products

• Need for control over how the brand is seen by the consumer across channels

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No data detected on your product pages...

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Why GS1 Smart Search was launched

It is difficult for companies to keep information about the

products they make or sell visible across the web because

products are not consistently accurately identified

in a common machine-readable format.

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Search engines Manufacturer and retailer websites

Other digital channels such as:

Websites that contain product information (price

comparison, etc.) and social media

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Reasons to believe: More efficient search

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Answers:

a)Amazon.de

b)Ebay.it

c)Footlocker (UK)’ AliExpress

What is the adidas ZX Flux Prism?

a) Sneakers

b) Athletic Shoes

c) Classic Running/Running Shoe

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How GS1 SmartSearch works

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By adding structured

product information

to your web pages... … you help search

engines display more

relevant search

results to your

consumers...

… which leads to

more click-throughs

to product pages and

more sales.

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Endorsement of schema.org

First schema.org

external extension

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© GS1 2016

How does it really work?

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Google and structured data

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Google and structured data

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GS1 SmartSearch Technical Evidence

Links to recreate examples.

(If you use a browser where you are logged into a Google account, or you use a site other than

google.co.uk, results may differ).

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• https://ezakupy.tesco.pl/

• https://potravinydomov.itesco.sk/

• https://shoponline.tescolotus.com/

• https://eshop.tesco.com.my/

• https://nakup.itesco.cz/

• https://bevasarlas.tesco.hu/

© GS1 2015

GS1 SmartSearch benefits

Increased sales - Better search results

- Products are more easy to find in other digital channels

Better brand image in the digital world - Better consumer experience when shopping online

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GS1 SmartSearch summary

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• Consumer Promise • Trust • Confidence

• Business Case • Search engine friendly

web site • SEO relevance &

accuracy • Low risk • Front end development • Increase sales • Reduce returns

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Optimised consumer fulfilment

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In the global supply chain, many different players

take part in moving products from the

manufacturer through suppliers and retailers/

e-tailers and finally to consumers.

Consumers discover, evaluate, purchase and interact

with products through many physical and digital

channels. When products are uniquely identified,

described by trusted information and tracked across

the supply chain, consumers receive the right product,

in the right place, at the right time for less cost.

What we mean

© GS1 2016

Disruption of Value Chains Last Mile impacts the entire Value Chain.

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Manufacturer

Logistics Service Provider

Manufacturer Store

Retail Distribution Centre

Wholesaler Manufacturer

Manufacturer

Manufacturer

Manufacturer

E-Store Consumer

E-fulfilment centre

Parcel service

Pick up point

The Consumer is in Power

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Disruption of Value Chains Challenges for fulfilment and returns

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• Very small deliveries (Parcels)

• Explosion of Delivery Points (Millions to Billions)

• Huge numbers of SME e-Retailers

• Ever shorter order fulfilment lead times.

• Very high level of Returns (for some types of Product)

• Non-transparent market for Delivery Options

• Fragmentation causing huge Supply Chain Inefficiencies

• Identifying Whom to & Where to deliver increasing difficult

• Increasing restrictions on (urban) delivery options

• Real-time Integrated View of Inventory across ALL locations

• Need for Collaboration enabling Bundling Flows

• Sharply rising T&L costs compared to value per order/product

© GS1 2016

Disruption of Value Chains Emerging landscape

• Marketplaces (Amazon, Alibaba) currently dominant;

adding Transport & Logistics services.

• Large LSP compete on Delivery Capability;

adding Web-shop/marketplace services.

• Other stakeholders joining forces in Open Collaboration Platforms;

Combining independence and economies of scale.

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© GS1 2016

Industry addressing the Challenges Innovations & Best practices

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• Simplifying identification and labelling for Delivery (CEN)

• Urban consolidation centres

bundling flows into congested areas (and back)

• Parcel Lockers / Parcel Shops; Consumers

collecting Orders when and where they prefer

• Import Consolidation services

reducing delivery costs for Consumers

• Collaborative Routing Centres: bundling flows from multiple shippers

• Rethinking Utilisation: Max. Weight AND Max. Volume

• Mix-Move-Match: Build Deliveries close to the Consumer;

Enabling massive merge-in-transit; increase delivery size

• Physical Internet: Manage Packages (LU) first then shipments;

Dynamic Routing optimising next leg using latest available info

© GS1 2016

Opportunity for GS1 standards Value Networks need Extensive Collaboration

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HOT WARM COLD

• Cross Carrier Tracking of Anything from Anywhere to Anywhere (real-time)

• CEN standardisation across Parcel & Postal; Removing barriers to Carrier selection. • Common Parcel ID • Common EDI

• Collaborative Routing Centres

• Cross Border challenges (On-Line Retail)

• Inventory visibility across the Last Mile

• Finding Delivery Options (CEP Carrier, Postal Services, PUDO service providers)

• ID Keys for multitude of Delivery Options

• Returns management challenge

• Urban Consolidation Centres

• Consumer managing her preferences & data.

• Import Consolidation Services support.

© GS1 2016

The problem: We need a breakthrough

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High fulfilment costs,

especially in last leg

Negative impact on

communities

Total volume of goods transported

Efficient use of space in shipping trucks

Total number of shipments =

© GS1 2016

How to solve the problem

• Use GS1 standards to identify products, actors and locations across the supply chain

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• Verify information about products, actors and locations

• Automate the exchange of data between business partners using a trusted exchange

• Invest in data quality to optimise fulfillment processes, enable collaboration and reduce overall costs

• Use product tags with electronic product codes based on GS1 Standards

Trusted Information

Real-Time Inventory

Quality Data

Unique Identification

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How to solve the problem

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Delivery management

Get goods in, out and to the consumer accurately and quickly

Warehouse management

Move beyond storage to value-added services

Transport management

Plan knowledgeably, execute efficiently

Border procedure management (Customs)

Move products across borders with greater visibility and efficiency

Inventory visibility

Improve inventory productivity and consumer fill rates

© GS1 2016

Reasons to believe: Proven success

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Business process

Manufacturing Logistics Store Time

savings

Goods in and out quantity check X X X Up to 100%

Picking/packing control X X Up to 100%

Stock take/cycle count X X X 80%-95%

Check out process X 60%

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Conclusion

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© GS1 2015

Be a part of the solution

• Good content is the main ingredient to a reliable, expanding and profitable relationship with the consumer

• Leveraging GS1 standards results in higher-quality data at a lower overall cost and a better shopping experience for consumers

• High quality data is increasingly important across organizations, it is important that all functions (Marketing, Operations, Supply Chain, Sales, IT) work together to identify opportunities to leverage synergies to ensure the data is for the intended purpose

• Get cross-functional resources engaged now to understand opportunities to improve all aspects of the consumer experience

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© GS1 2015

Collaboration fuels commerce

Collaborate on quality data sharing standards so that you can…

• Keep up with consumers, instead of chasing bad data

• Free resources for turning big data into insights

• Focus on competitive advantage

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© GS1 2015

The Solution?

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Grow the Business

Reduce Costs

Leverage Consumer Insights

Manage Risk

GS1 standards making it easier for people to discover and purchase products wherever they are so that you can…

© GS1 2016

Questions

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© GS1 2016

David J Smith

Director, Omni-Channel Industry Engagement

D: +32 2 788 7829

E: david.smith@gs1.org

GS1 Global Office

Blue Tower, Avenue Louise 326, bte 10

B-1050 Brussels, Belgium

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