1. Retail 4.0 – the Fundoo case
March 20, 2013
joeri@fundoo.eu sven@fundoo.eu
@joeridewaele @sven_dewaele @fundooshop

2. Joeri De Waele – background
FUN
DOO
▪ Managing partner at Fundoo (February
2012)
▪ Engagement manager and consultant at
McKinsey & Company (2008-12)
▪ Brand manager at Unilever (2005-08)
▪ McKinsey MBA ‘08
▪ Civil engineer electromechanics (2005)
▪ Industrial engineer (2002)
2

3. Sven De Waele – background
FUN
DOO
▪ Managing partner at Fundoo (February
2012)
▪ Partner at Doe Het Zelf mét De Waele
former Fundoo (2005-12)
▪ Consultant at Altran Europe (2001-04)
▪ FT International MBA aan Vlerick (2005)
▪ Master in Industrial management (2004)
▪ Civil engineer computer science (2001)
3

4. Topics of today
1. Who is Fundoo
2. Overview on how Fundoo sees retail 4.0
3. Best practices and typical pitfalls of retail 4.0
4

5. WHO IS FUNDOO ?
Fundoo, launched in September 2012 is the overarching brand name for
fun, outdoor and DIY e-tail shops
Fundoo shops today
Fundoo’s
▪ Benelux e-tailer
launched in
mission
2012
“Fundoo believes Zwembadstore.be
Tuinhuisstore.be
that everyone
Zwembadplanet.nl ▪ Started as
single site
earns it to create
zwembadstore.
small and big
be in ‘09
moments in its Trampolineplanet.be Strooizoutstore.be
free time. To Trampolinefun.nl ▪ Verticals shop-
make this really model like
easy for you we Quidsi.com,
therefore have Barbecueplanet.be Brandhoutstore.be coolblue.com
made speciali ▪ Today 13
zed shops and vertical sites
personal advise live, every
under 1 inspiring Jacuzzistore.be Vuurwerkstore.be Saunastore.be month 1-3
roof” additional
launched
Go-cartstore.be Speelhuisplanet.be
▪ By 2015 +60
sites will be live
“Fundoo time start after 5PM!”
SOURCE: Fundoo 5

6. WHO IS FUNDOO ?
Fundoo has 4 promises guaranteed in on- and offline
1 2
Excellent Quick delivery
customer at home or use
service online/ collect & go for
offline & pick up
expertise
3 4
Need help? Our
Online & offline service@ home
always there to team at your
inspire you! service
6

7. WHO IS FUNDOO ?
End of the month a unique experience center “Fundoo Village” will be
launched as extension of the online stores
Online and offline seamlessly Fundoo’s offline model covering
integrated 3 objectives
▪ Shop-in-shop concept per vertical 1 Touch, feel, and see – give
store customers opportunity to connect
with their products and inspire them
▪ Dynamic screen panels to shop on
the online shop (including payment) 2 Personal advice – get to talk with
▪ High level of shopper experience to expert advisors for your questions
touch & try 3 Pick-up point – reserve your
products online and pick-up offline
“Fundoo Village” = 2000m2 to
experience, test and get advice
SOURCE: Fundoo, Retail Office 7

8. WHO IS FUNDOO ?
The on- and offline Fundoo experience will be seamlessly integrated
▪ Shop will be
foreseen with
digital shopping
desks
▪ A specific offline
platform
developed on the
online interface
▪ Brand style offline
fully in line with
online
“Fundoo Village” = digtal interaction =
interactive screens, kiosks, QR codes,...
SOURCE: Fundoo, Retail Office 8

9. Topics of today
1. Who is Fundoo
2. Overview on how Fundoo sees retail 4.0
3. Best practices and typical pitfalls of retail 4.0
9

10. WHAT IS RETAIL 4.0?
Retail 4.0 is the new way of shopping in an omni-channel environment
3
2 4 Retail 4.0
Retail 3.0
1 Retail 2.0 Omni-channel:
online = offline
Retail 1.0
▪ Begin 20th ▪ ~1950 ▪ ~’1995 ▪ Now
century
▪ First retailers ▪ Opening of ▪ First modern e- ▪ Best practices
with self service hypermarkets eg. commerce: still in
Tesco, Walmart, – Amazon.com development
Auchan, …
– Ebay
– Zappos
10

11. WHAT IS RETAIL 4.0?
Today’s shopper only thinks and acts multichannel
Typical cross-channel scenario
Shopper
Research Shop/buy Collect Service Re-buy
need
Browse catalogue
Print/
Catalogue/ Buy Buy again
online
Search Check ▪ In retail 4.0
Online Check order
Read features there is no
shop/Mobile (mobile)
reviews online or
offline
Check with purchase
friends funnel
Social
Write review
G ▪ Customers
mix online
Collect in
Inspect and offline
Offline store/
products during
at home
different
stages of
Offline with the funnel
online
integration
Call center/
Query
customer Query installation
service specification instructions
SOURCE: google 11

12. WHAT IS RETAIL 4.0?
Consumers using all channels seamlessly are the most Multichannel
attractive customers
Average annual expenditure by customers of a US multi-channel player, USD
Catalog, store,
887
and internet
Catalog and store 608
Internet and store 485
Internet and
446
catalog
Catalog 201
+150%
Store 195 +354%
Internet 157
SOURCE: (N)Onliner Atlas 2012; McKinsey analysis 12

13. WHAT IS RETAIL 4.0?
Depending on the category, multichannel can be more or less important
SOURCE: Iconsumer EU 13

14. WHAT IS RETAIL 4.0?
Multichannel shoppers expect a broader assortment online vs ofline
US example, number of SKU’s online vs offline
SOURCE: McKinsey 14

15. WHAT IS RETAIL 4.0?
Transforming to retail 4.0 multichannel model requires teaching a
succesfull athlete new disciplines
15

16. Topics of today
1. Who is Fundoo
2. Overview on how Fundoo sees retail 4.0
3. Best practices and typical pitfalls of retail 4.0
16

17. BEST PRACTICES AND TYPICAL PITFALLS
What do you think about this one …
SOURCE: Cisco 17

18. BEST PRACTICES AND TYPICAL PITFALLS
Multichannel best practices are hard to find whilst a lot of theory has been
discussed
Selected examples
Examples of multichannel
Store Business setup approach
▪ Photo/video e-tailer ▪ Will Launched recently
1 “Polaroid bars” as experience
and service center
▪ Grocery retailer ▪ Experimented with “Tesco”
2 virtual walls in train stations
▪ Click and collect model
▪ Electronics e-tailer ▪ Online platform and offline
3 100m2 service points (4 in NL,
2 in BE)
▪ Pure online player ▪ Launch of Amazon lockers
4 ▪ Potential plans for own Amazon
offline store for kindle readers
▪ Clothing player ▪ Digital concept store launched
5 Burberry in London
▪ Actually very limited multichannel
SOURCE: Fundoo research examples exist in Belgium 18

19. New technologies at source of retail 4.0
Virtual show up of what’s inside the Flexible pricing to react on pure players
Lego Box and own online platform
Multichannel
retail 4.0
Virtual shopping walls to shop with your In – store movies with reviews
smart phone offline (coolblue)
SOURCE: Fundoo research 19

20. BEST PRACTICES AND TYPICAL RETAIL 4.0 CHALLENGES
Retail 4.0 has some tricky pitfalls
Issues
▪ How will you use your loyalty points
Loyalty online/offline?
1
system
▪ What about the product stock? Keep in
Buy offline, offline stock or send to online stock?
2a
return online
▪ Who takes the revenue loss? Online or
Buy online, offline?
2b
return offline
Sell online ▪ Who gets the revenue? Online or offline?
3 items in ▪ Who takes the handling cost?
offline shop
20

21. BEST PRACTICES AND TYPICAL RETAIL 4.0 CHALLENGES
Once your retail 4.0 model is live it is critical to pull your shopper from
online to offline…
Examples on how to guide your shopper to the offline
From the Shopper
online Research Shop/buy Collect Service Re-buy
need
funnel
Appointment module –
have an appointment Offer relevant extra’s
module on your online for offline visits, e.g.,
Invited site to plan a visit collect and go in store
to the and get 10% rebate
offline on next online order
Special promotions Create experience
only available in store events offline –
e.g., cooking
Offer extra services classes, expert
offline, e.g., style demo sessions, …
advice (clothing), body
measurement (bikes),
…
SOURCE: Fundoo research 21

22. BEST PRACTICES AND TYPICAL RETAIL 4.0 CHALLENGES
But also from offline to online!
Examples on how to guide your shopper to the online
From the Shopper
offline Research Shop/buy Collect Service Re-buy
need
funnel
Extended product
info – push
shoppers to online Reviews – foresee a
to give more info Receipt – put online review process
Invited
promotion on the online for offline
to the
receipt, e.g., 5EUR buyers
online
rebate on product
and online promo
code PRO123
Collect email address
– even if a customer
bought offline connect
with him for future offers
SOURCE: Fundoo research 22

23. BEST PRACTICES AND TYPICAL RETAIL 4.0 PITFALLS
10 golden retail 4.0 rules
1 Strategy – decide on your online/offline channel strategy
2 Online and offline look and feel should be closely in line with brand perception
3 Assortment – customers expect to find a broader range of products online
vs. offline and make sure you can order online in your store!
4 Price – a completely synchronized pricing would be most convenient for
retailers, but is hard to achieve
5 Service – bring the same customer service online and offline (e.g., live
chat vs. talking to a sales employee)
6 Logistics and systems – online and offline systems seamlessly integrated
e.g., buy online, return offline
7 Product return rates – offline often negligible, for e-commerce one of the key
cost drivers
8 Traffic – invite your customer from online to offline and vice versa
9 Loyalty – set up a cross-channel loyalty system
10 Organization – multichannel requires a new organisation – you cannot just
add online or offline
SOURCE: Fundoo research 23

24. BEST PRACTICES AND TYPICAL RETAIL 4.0 PITFALLS
And lastly …
#11 Make sure you visit the Fundoo site and Fundoo village
@fundooshop @joeridewaele @sven_dewaele
24