ECOMMERCE & CLIENT SERVICES SUMMARY 1. A STRATEGIC DECISION 2. - - PowerPoint PPT Presentation

ECOMMERCE & CLIENT SERVICES

SUMMARY

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• 1. A STRATEGIC DECISION
• 2. REINTEGRATING ECOMMERCE WHILE

SETTING UP THE OMNICHANNEL FOUNDATIONS

• 3. CLIENT SERVICES

ECOMMERCE & CLIENT SERVICES

IN 2012 WE CREATED A JOINT VENTURE WITH A WORLDWIDE PUREPLAYER TO ACCELERATE OUR ECOMMERCE…

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TECHNOLOGY

Back-end info-structure Front-end development Omnichannel services

LOGISTICS

In-bound & Out-bound Packaging

INVOICING

Acquiring & Fraud

ROADMAP MANAGEMENT BUSINESS INTELLIGENCE USER EXPERIENCE MERCHANDISING COMMUNICATIONS & MARKETING CREATIVE DESIGN … ACHIEVING GREAT RESULTS

ECOMMERCE & CLIENT SERVICES

…. AND NOW WE ARE EVOLVING FROM MULTICHANNEL TO OMNICHANNEL EXPERIENCE

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• Customers see multiple touch-points act independently
• Each channel is operated in a silo
• Customers experience a brand and not a channel

within a brand

• Brands leverage their “single view of the customer”

in a coordinated and strategic way OMNICHANNEL

CLIENT

MULTI- CHANNEL

ONLINE STORE MARKET PLACE STORE CLIENT SERVICES SOCIAL

MULTICHANNEL OMNICHANNEL

ECOMMERCE & CLIENT SERVICES

SUMMARY

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• 1. A STRATEGIC DECISION
• 2. REINTEGRATING ECOMMERCE WHILE

SETTING UP THE OMNICHANNEL FOUNDATIONS

• 3. CLIENT SERVICES

ECOMMERCE & CLIENT SERVICES

72

COUNTRIES

> 300

STAKEHOLDERS

70

EXPERTS

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BRANDS

A HIGHLY COMPLEX PROGRAM…

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33

EU

14

APAC

19

ROW

6

AMER

ECOMMERCE & CLIENT SERVICES

… INCLUDING SETTING UP NEW SYSTEMS, PROCESSES AND TEAMS…

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B2C & OMNICHANNEL OPERATIONS ECOMMERCE PLATFORM INVOICING CHANGE CHINA

Central & local warehouses BtoC fulfilment Stock optimization Ship from store Carrier management Real-time integration Customer 360° view Ecommerce Platform Order Management System New product referential Digital asset management Secured payment Tax management Fraud management Legal Compliance Target organization Impact analysis Stakeholder management Communications Training Local Ecommerce platforms Local invoicing processes Local operations

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ECOMMERCE & CLIENT SERVICES

… TO PROPOSE AN ENHANCED EXPERIENCE TO OUR CUSTOMERS VIA…

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ORDER IN STORE CLIENT SERVICES .COM WEBSITES

One omnichannel account per customer allowing a 360° data view

Store Client Services Online store Ship from store DC fulfilment Pickup (DC inventory) Pickup (Store inventory) Global DC Inventory Shops Future inventory (pre-order) Local DC Local DC CONSISTENCY ACROSS CHANNELS FULL DATA INTEGRATION BETWEEN ONLINE & OFFLINE

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ACCESSING A WIDER INVENTORY & ASSORTMENT

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MORE DELIVERY SERVICES

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ECOMMERCE & CLIENT SERVICES

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LOCAL DISTRIBUTION CENTERS

Fulfil only to the country they are based in

GLOBAL DISTRIBUTION CENTER

Global reach

…. LEVERAGING KERING DISTRIBUTION CENTERS AND STORE NETWORK…

ECOMMERCE & CLIENT SERVICES

Marketplaces Social commerce

CHINA: A DIFFERENT ECOSYSTEM REQUIRING DIFFERENT SOLUTIONS…

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Local inventory Local carriers to cover all tier cities High service level expectations LOCAL OPERATIONS Social login: integration to local solutions Personal data: must be stored in China (Cybersecurity law) Product content PLATFORM SPECIFICITIES DISTRIBUTION LANDSCAPE Specific payment methods Invoicing VAT Fapiao, VAT special Fapiao, e-Fapiao… INVOICING/PAYMENT OPTIONS

ECOMMERCE & CLIENT SERVICES

….RESULTING IN PARTNERING WITH LOCAL SPECIALISTS AND BUILDING A LOCAL TEAM OF EXPERTS

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LOCAL PAYMENT METHODS & INVOICING PROCESSES LOCAL TEAM OF EXPERTS LOCAL PLATFORM HOSTED IN CHINA INTEGRATED TO MARKETPLACES LOCAL INVENTORY AND DISTRIBUTION CENTER IN SHANGHAI LOCAL CARRIERS

ECOMMERCE & CLIENT SERVICES

ECOMMERCE INTERNALIZATION TIMELINE

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2019 2020 2018

BRANDS GO-LIVES

OCT NOV Q2 Q3

ECOMMERCE & CLIENT SERVICES

Q1

Roadmap Iterative implementation Global design Test, Migration & Training Rollout & Hypercare

OMNICHANNEL BOOSTING ECOMMERCE REVENUE

• Ship from store (larger assortment and faster delivery)
• Improving depth and breadth of assortments available for sale
• Inventory optimization to reduce shortages (inventory transfer, quicker replenishments etc.)
• Remote sales from stores and Client services order from ecommerce inventories
• Fraud and payment optimization (acceptance rules + new payment methods)

DIRECT INCREMENTAL SALES INDIRECT IMPACT ON SALES ADDITIONAL BUSINESSES ENABLED BY IMPLEMENTATION OF NEW TOOLS

• Integration within our ecosystem: customer centric approach in-house, single data lake
• Internalization of Roadmap allowing multiple enhancements and evolutions
• Unified omnichannel set-up across all brands and all CRM & communications activities
• Insourcing key ecommerce competencies
• China local business solution
• Marketplace integration facilitator

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LEVERS

ECOMMERCE & CLIENT SERVICES

FINANCIAL IMPLICATIONS

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NEUTRAL IMPACT ON EBIT AT GROUP LEVEL IN 2021 / ACCRETIVE TO EBIT MARGIN FROM 2022 GROUP IMPACTS Revenue Gross Margin (% of revenue) Fulfillment & Shipping costs (% of revenue) Marketing costs & Contact center (% of revenue) Direct operating expenses (% of revenue) Central costs (finance, technology, digital and media) Depreciation and amortization (% of revenue) EBIT (% of revenue) NEUTRAL IN 2021 ACCRETIVE FROM 2022 Direct Opex: Replacing variable revenue share with lower direct costs Central costs: Replacing independent JV structure with dedicated Kering Omnichannel team D&A: some depreciation vs. none in previous situation Revenue uplift and operating leverage will be accretive to Group EBIT margin from 2022 Replacement of revenue share by a combination

• f lower direct opex and fixed costs of dedicated
• mnichannel structure

ECOMMERCE & CLIENT SERVICES

IN A NUTSHELL…

FROM

UNINTEGRATED PLATFORMS & POINTS OF CONTACTS

TO

A SEAMLESS EXPERIENCE, FROM AWARENESS TO PURCHASE OMNI- CHANNEL EXPERIENCE

Differences in product assortment between online & offline Separate stock between online & offline Limited Multichannel services Smaller range of order & delivery methods Less customer data consistency Larger product assortment leveraging retail & online inventory Real-time inventory view in store across all channels Seamless integration across Web & Retail Broader range of order, payments (e.g. Alipay) & delivery methods Greater item return/exchange flexibility One global omnichannel account per customer Enriched and customizable online experience

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OMNICHANNEL

ECOMMERCE & CLIENT SERVICES CLIENT

MULTI- CHANNEL

ONLINE STORE MARKET PLACE STORE CLIENT SERVICES SOCIAL

CLIENT SERVICES HAVE BEEN INTEGRATED AS THE FIRST STEP TO SUPPORT OMNICHANNEL

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CLIENT SERVICES

OMNICHANNEL

ECOMMERCE & CLIENT SERVICES

SUMMARY

• 1. A STRATEGIC DECISION
• 2. BRINGING BACK ECOMMERCE WHILE

SETTING UP THE OMNICHANNEL FOUNDATIONS

• 3. CLIENT SERVICES

17 ECOMMERCE & CLIENT SERVICES

CLIENT EXPERIENCE INCREMENTAL SALES CLIENT ENGAGEMENT CLIENT QUALITATIVE FEEDBACK

CLIENT SERVICES - A STRATEGIC MEETING POINT

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CONTRIBUTE to the omnichannel experience GUIDE and answer clients along their journey ENHANCE the long-term relationship

Provide to all our customers around the world a direct connection to Kering Houses – seamless, always accessible and personalized CLIENT SERVICES MISSION A “CLIENT FIRST” STRATEGY

ECOMMERCE & CLIENT SERVICES

CREATING A DIGITAL RETAIL STORE

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CLIENT BENEFIT

Retail staff stay focused on client- facing activities Extend the client experience out

• f the store

Provide a 360° client experience across all touchpoints

ECOMMERCE & CLIENT SERVICES

MAIN REASONS FOR CONTACT

20

40%

Product enquiry

50%

Purchase

10%

Brand Information

ALL CHANNELS

ECOMMERCE & CLIENT SERVICES

A CORE MODEL DEVELOPED ON A SCALABLE AND SUSTAINABLE APPROACH

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CLOSE TO OUR CUSTOMERS UNIQUE MANAGEMENT CULTURE BEST-IN-CLASS TECHNOLOGY

ECOMMERCE & CLIENT SERVICES

CLOSE TO OUR CUSTOMERS

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Live

6

REGIONAL HUBS

8

BRANDS

>12

LANGUAGES

>300

DIGITAL ADVISORS

2017 2018 2019 2020 EUROPE AMERICAS APAC KOREA JAPAN MAINLAND CHINA

ECOMMERCE & CLIENT SERVICES

BEST-IN-CLASS TECHNOLOGY

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CRM MANAGEMENT INTELLIGENT TELEPHONY SYSTEM INTELLIGENT LIVE CHAT

360° CUSTOMER VIEW TO ENGAGE WITH AUTHENTICITY

LUCE & RETAIL SYSTEMS

ECOMMERCE & CLIENT SERVICES

360° CUSTOMER VIEW

a a a

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INTELLIGENT LIVE CHAT

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See the customer journey See the Brand website and its activity as in a store Visualize client data

ECOMMERCE & CLIENT SERVICES

INTELLIGENT LIVE CHAT DEMO

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INTELLIGENT LIVE CHAT

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• Client recognition
• Client navigation data
• Digital retail store, act as a SA /

Proactive engagement

• Enriched KPIs
• Immersion into brand universe
• Digital tailored advice in real time
• Intimacy & proximity
• Client & website enriched insights

for all departments

• Higher opportunities to convert
• Enhanced activity tracking

KEY VALUABLE FEATURES CLIENT BENEFITS BRAND BENEFITS

Conversion Service & Insights Knowledge

Visibility

HOW IT WILL TRANSFORM THE WAY WE DO BUSINESS

• Possibility to address specific clients & trigger journey with chat
• Increase conversion
• Ensure real-time assistance wherever the client is on website

AROUND THE CORNER

• Bot, AI
• Messenger
• Conversational commerce development
• Digital in store

ECOMMERCE & CLIENT SERVICES

3M

CONTACTS

96%

PICK UP RATE

8.9/10

CLIENT SATISFACTION ADDITIONAL SALES DRIVER

8

BRANDS

4

REGIONAL HUBS OPENED SO FAR

> 300

DIGITAL ADVISORS

>12

LANGUAGES

KEY ACHIEVEMENTS IN 18 MONTHS

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DELIVERING POSITIVE PERFORMANCE ACROSS KPIS

ECOMMERCE & CLIENT SERVICES