Marketplaces & Innovation Trends · Source: Google Trends 0 10 20 30 40 50 60 70 80 90 100 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020

Marketplaces & Innovation Trends

Industry & Standards event 2020

Darren Edels & Kevin Stark

2 December 2020

© GS1 2020

Anti-trust caution

• GS1 operates under the GS1 anti-trust caution. Strict compliance with anti-trust laws is

and always has been the policy of GS1.

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refusals to deal, or market share.

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entirety: http://www.gs1.org/gs1-anti-trust-caution.

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http://www.gs1.org/gs1-anti-trust-caution

© GS1 2020

Darren Edels

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Director Marketplaces EngagementGS1 Global Office

Past roles:

eBay: Head of Partnerships, UK & EU

Volo Commerce: Senior Manager Partner ServicesHead of Implementations and Training

Unibooks4u.com: Founder and CEO

© GS1 2020

Sr. Director InnovationGS1 Global Office

Past roles:

NineSigma: 15+ years leading Open Innovation and Crowdsourcing Consulting services

Goodrich: R&D Aerospace Sensor Design (MEMS)

3 (mostly useless) degrees in Electrical Engineering

Kevin Stark

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https://www.linkedin.com/pulse/reflections-20-years-innovation-kevin-stark/

https://www.linkedin.com/pulse/reflections-20-years-innovation-kevin-stark/

© GS1 2020

Topics for today

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Innovation TrendsMarketplace Introduction

Marketplace Program Update

Polls & Q&A!

© GS1 2020 7

Poll 1 (anonymous):

How well was industry prepared for the disruptions of 2020?

(5) Great – digital strategy investments paid off big time!

(4) (3) Ok – experienced some disruption, but adapted pretty well(2)(1) OMG this was AWFUL…we’ve all had a hard time this year…

[Select only one answer]

© GS1 2020

5.66.4

7.28

8.89.7

10.711.8

13.214.4

16

33

0

5

10

15

20

25

30

35

Years of digital transformation…in weeks

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q2-20

10 years’ growth

in 3 months

Source: McKinsey

E-commerce as a % of

total US retail sales2009 - 2020

https://www.mckinsey.com/business-functions/marketing-and-sales/solutions/periscope/our-insights/surveys/reinventing-retail

© GS1 2020

Winner: Online Grocery

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Source: Google Trends

0

10

20

30

40

50

60

70

80

90

100

12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020 10/1/2020 11/1/2020 12/1/2020

online grocery grocery pickup grocery delivery Indexed Google Search Volume

for Grocery Delivery Terms

(fast moving consumer goods)

© GS1 2020

Other trends from 2020

> 50% +of consumers have placed a higher

importance on locally sourced foods

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60% + of global consumers

changed their

shopping behaviour

50% +of Gen Z and Millennial

consumers will pay more for

sustainable products

Online grocery sales grow 33% in 2020 as shopping habits shift permanently

© GS1 2020

McKinsey – plenary from yesterday - Jessica Moulton

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© GS1 2020

McKinsey – plenary from yesterday

13https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/what-

got-us-here-wont-get-us-there-a-new-model-for-the-consumer-goods-industry

https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/what-got-us-here-wont-get-us-there-a-new-model-for-the-consumer-goods-industry

© GS1 2020

2020: Impact of COVID

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5years

46%American

59%European

© GS1 2020

Amazon’s fastest growing markets during the pandemic

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© GS1 2020 16

Phenomenal growth

1 700 000 000 000 000 000 BytesAlibaba’s technology infrastructure

+++hiring workers in the wider Marketplace space

Alibaba’s November Singles Day festival GMV surpassed

US$ 74 Billion

25-30%sale surge, during Covid-19 pandemic, for most of the major marketplaces

© GS1 2020 17

Poll 2 (anonymous):

How engaged are you with the Marketplace community [platforms, integrators, solution providers]?

1) We’re an MO, and we have dedicated (full or part time) people working with the Marketplace ecosystem //OR// I’m in Industry and we have a dedicated Marketplace strategy and people in place

2) We don’t have dedicated people working on this, but we’re doing a lot of work on “online retail”

3) We plan to add capabilities in the next 1-3 years4) Still figuring it out! (that’s why we’re here today!)

[Select all answers that apply]

© GS1 2020 19

What is a Marketplace?

© GS1 2020

What is a Marketplace?

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Marketplaces are technology platforms, who do not own any inventory, that connect sellers and consumers by creating an ecosystem that facilitates transactions between them.

© GS1 2020 21

A retailer versus Marketplaces

Retailers

• Retailers own the inventory they sell.

• They sell products online and in store.

Marketplaces

• Marketplaces don’t own inventory. They match buyers and sellers.

• Online Marketplaces are platforms that facilitate shopping from multiple sources.

© GS1 2020

Marketplace composition and commissions

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• A typical Marketplace provides:

- An online account

- Digital catalogue of products and services

- Catalogue search engine

- Feedback / review mechanism to rate

sellers and products

- Shopping cart and payment gateway

- Customer support

© GS1 2020 23

The endless aisle of digital shelves

© GS1 2020 24

Marketplace ecosystem engagement: The journey so far…

© GS1 2020 25

GS1 Global Marketplaces Strategy:Our journey

Listened to stakeholders online and in person –

Marketplaces / Integrators / Sellers

10GS1 Member Organisationsand Global Office formedthe Marketplaces Team

20voice of the marketcustomer statementscaptured

2020 GS1 Global Marketplaces Strategy approved - recommendations prioritised

© GS1 2020

GS1 Global Marketplaces Strategy:Focus areas

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Brand Development

& Education

(Market positioning)

Industry Engagement(Marketplace Advisory Team)

Solution Development

(Data requirements, Verified by GS1

& local services)

GS1 Business

Transformation

(Our people, governance,

membership)

© GS1 2020 27

GS1 M

ark

etp

laces E

ngagem

ent

Kit

Bookmark me nowhttp://mozone.gs1.org/

marketplace-engagement-kit-

overview/

http://mozone.gs1.org/marketplace-engagement-kit-overview/

© GS1 2020

GS1 Marketplace Advisory Team

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• GS1 Marketplace Advisory Team brings together a global community of Marketplace stakeholders for open collaboration and to advise the Marketplace programme team

• GS1’s objective is to serve the Marketplace sector and ensure a better consumer experience

• Work program is currently under development with high level “Pillars” of work identified

© GS1 2020 29

Bringing value to the Marketplace community

Marketplaces

• GTINs better enable catalogue quality and reduce duplication meaning an improved buyer experience, and the potential for less returns

• Verifiable GTINs reduce the risk of counterfeit as Marketplaces can verify to whom the product is attributed

Integrators

• Helping customers (sellers) understand Marketplace product identification requirements

• Access to tools and services to verify customers’ data before listing on Marketplaces ensuring a faster and smoother listing process

Sellers

• Higher rates of purchase conversion when GTINs are provided

• Product feeds with GTINs are eligible for Googleshopping ads and organic search

• GTINs enable the connection of all product information, photos, videos, consumer reviews

© GS1 2020 31

• GS1 Global Marketplaces Strategy –continue to implement recommendations

• Expand Marketplaces Engagement Kit • Stakeholder engagement guides• Training for Sellers

• Launch Marketplaces MO Interest Group

• Grow Marketplace Advisory Team

• Prepare for Global Forum 2021

© GS1 2020 32

Poll 3: What are the biggest challenges in the move towards the “digitalisation of everything”?

1) Innovation is moving too fast…and it’s becoming harder to pilot, test, measure and adapt quickly enough

2) IT infrastructure…connecting systems together to solve new problems is hard, takes too long and is always too expensive

3) Too much data…and not enough information4) Engaging consumers is more difficult in a fragmented world5) Lack of internal alignment on our “digital transformation”6) It is ALL hard!

[Select top 3 answers]

© GS1 2020 37

GS1 Trend Research

https://www.gs1.org/docs/innovation/GS1-Trend-Research-2nd-edition-101320.pdf

https://www.gs1.org/docs/innovation/GS1-Trend-Research-2nd-edition-101320.pdf

© GS1 2020

Marketplaces & Innovation: Take action and get involved

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Industry: Engage with your local GS1 Member Organisation

Everyone: Download the GS1 Trend Research Report 2020/21

GS1 MOs: Use the Marketplaces Engagement Kit in your MO:

• Assess your MO’s readiness with the Readiness Checklist

• Review the value proposition for each Marketplace stakeholder

© GS1 2020

Thank you!

Darren Edels [email protected]

Kevin Stark [email protected]

www.gs1.org
mailto:[email protected]:[email protected]

Documents

Marketplaces & Innovation Trends · Source: Google Trends 0 10 20 30 40 50 60 70 80 90 100 12/1/2019 1/1/2020 2/1/2020 3/1/2020 4/1/2020 5/1/2020 6/1/2020 7/1/2020 8/1/2020 9/1/2020