How will we order, shop, buy and discover tomorrow? Leveraging digital disruption to provide more value to today's consumers and shoppers.

1. The Future
of FMCG:
The Great
Disruption
Hamutal Schieber’s
Export Institute
Presentation, Dec.
2015

2. First, a story:

3. The 1940’s: Car ownership 45%
penetration; refrigerator sales
in the US on the rise;
Supermarket sales 10% of
grocery sales
1954
Supermarkets: 41%
Car ownerships: over 50%
1960’s milkman services
penetration 30%
1975: The Supermarket Era
Milkman disruption is
complete
Car ownership: 85%,
Supermarket market share:
75%
Milkmen: 6.9%
How Cars and Refrigerators
Disrupted the Milkman

4. 2005
Modern convenience = store format + product format
0.4% milkmen service penetration rate (US)

5. The milkman disruption happened due to:
lack of consumer choice, rising penetration of enabling
technologies (cars, refrigerators) and as a result,
a profound change in retail formats.
You cannot prevent disruption from happening.
But you can leverage the next disruption to your benefit,
By focusing on the consumer, and
adding value through new models. Here’s how…

6. Where is the Disruption?

7. Internet Penetration on the Rise
(Columino, 2015)

8. Mobile Penetration on the Rise
Ericsson 2015

9. Connected Devices on the Rise
Ericsson 2015

10. Wearables on the Rise
IDC 2015

12. Stage 1: responding
to consumer needs
via products &
services mix
Stage 2: innovation in physical
retail; opening of online shops
Stage 3: from physical to digital to
omni-channel; virtual technology;
AR; VR; NFC and mobile payment
As a result, the retail environment
has changed radically

13. Followed by omni-channel commerce
Consumers expect a seamless experience

14. Electronics (SF, USA)

15. Fashion, USA

16. Facial Recognition

17. Peapod

18. House of Fraser
iBeacons Mannequins

19. 2012: more convenience through click & collect

21. 2014

24. Amazon Dash

25. Mobile payment
Apple Pay @ Best Buy

27. Be wherever the consumer is at (Diapers.com + Pampers)

28. Wanelo – Buy from Image

29. FlipKart Shop by Image

30. Shoppable Content

31. Mikmak

33. The Amazon “Treasure Truck”

35. Democratization
Designer furniture direct selling

36. New models: Rent it, Don’t buy it

37. New models:
Rent it, Don’t buy it

38. Fresh Organic Food “for everyone”

40. 1971
Insight
“Hilltop”

41. 2011
Activation

42. 2015
Shoppability

43. Added value: reviews  empowerment

44. Added value: convenience  empowerment
Nespresso Multi-Channel

45. Added value: Adidas – get it
before everyone else

46. Mondelez
Focuses on
online for X10
growth ($ 100
million to $ 1
Billion by
2020)…

47. For example: an
immediate
implementation d

48. Shoes of Prey:
online + point of sale shoe personalization

49. Online personalization: turning everyday goods
to something special

50. ‫פרסונליזציה‬

51. ‫הרפתקאות‬
Nestle Marktplatz:
Bringing global brands to German shoppers

52. Boxes added value: excitement

53. Premiumization
Maille (Unilever): products which are only available online

54. Added value: Trust
Amazon Elements

55. Trust
Google Cardboard + Nescafe Coffee Farmers 360

56. Try your jewelry before buying
fourmine.com

57. Warby Parker Home Try-On

58. B&Q in-store 4-Dimension experience

59. Carphone
Warehouse
In-store
personalization

61. Nielsen, Global, 2015

62. Meal Kits
Meal Kits

63. Subscriptions

64. Subscriptions

66. ‫מקור‬AT Kearney 2014
‫נתוני‬‫קטגוריית‬‫הטיפוח‬‫והיופי‬

67. Boxes
Consumer added value: excitement, trial
Brand added value: Data

68. Brand as coach
PlateJoy: manage your healthy lifestyle

69. The Brand as a Coach

70. Brand
as coach
Asos
Online Stylists

71. Let the brand do the buying: Bud

72. Loyalty

73. House Call

74. Betty Crocker Kitchens
focus on elderly special needs

75. ‫לסיכום‬
To sum up…

76. Digital Age Innovation
1. Enablers: the technology allows us to
accomplish much more than before
2. Immediacy: insight to action
3. Shoppability: make yourself available for
purchase where the consumers are
4. Democratization: the consumer sets the
stage and calls the shots. Brand should
consider platforms for participation
5. Flexibility: Adopt a start up mindset (or
adopt a start up)
6. Consumer focus: providing an added value is
still the key success factor

77. Opportunities
• Approaching micro-segments
• Collecting Data
• Introduce various commercial
offers (and test them)
• Build loyalty
• Offer exceptional service

78. Threats
• A crowded digital shelf
• Logistics challenges
• Technological challenges
• Competing with the retailers –
your customers

79. Innovation
is crucial
for
growth!
innovation
Reaching
new crowds
Consumer
involvement
Brand
building
Competitive
advantage
Efficiency
and cost
reduction