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01 | ROUND TWO FOR EXPERIENCE DAY 02 | STATUS QUO OF OMNICHANNEL

RETAIL – NEW STUDY PUBLISHED

03 | OMNICHANNEL WEBINAR WITH IBUSINESS ON DECEMBER 1ST

04 | MARC O‘POLO RECEIVES NEO AWARD

05 | THREE PHASES OF CHRISTMAS BUSINESS

06 | WHICH DEVICE DOMINATES ONLINE TRAFFIC?

07 | GERMANY’S BEST ONLINE SHOPS IN 2016

08 | ARVATO-NEWSTICKER

CONSUMER PRODUCTS NEWS

5THREE PHASES OF CHRISTMAS BUSINESS

Updates from our Fashion, Beauty and FMCG division

Contents2

STATUS QUO OFOMNICHANNEL-RETAIL

EDITORIAL

The Arvato eXperience Day 2016 was

undoubtedly one of the highlights this

autumn. Over 100 guests from leading cor-

porations of fashion, cosmetic and FMCG

sectors met at the Berlin Bertelsmann loca-

tion in September to discuss current trends

in retail. Among others, the presentation by

12 year old Henry Patterson, Great Britain’s

youngest entrepreneur, will surely remain

in the participants’ memories.

One of the central themes of eXperi-

ence Day 2016 was Omnichannel. Coope-

ratively with WHU – Otto Beisheim School

of Management and Salesforce Commerce

Cloud (formerly Demandware), we publis-

hed a study about „Is Omni everything?“

The study results indicated that a lot of

retailers have some catching up to do when

it comes to IT. Further information can be

found in our top issues.

Moreover, our Consumer Products

News has a study available about the

development of daytime traffic in Germany,

France and Great Britain, and which types

of tools dominate during certain periods.

This is especially interesting in view of the

pending Christmas business. Ensuring this

becomes a success story for you, we have

prepared an overview of the Christmas

business phases. This way, you can gear

up for the most important shopping time

of the year.

Before you commence browsing

through our article, I would like to take this

opportunity to congratulate our clients

Brax, Douglas, Gerry Weber and Fressnapf,

who have been awarded “Germany’s Best

Online Shops 2016!“

These and many others facets can be

found in the current issue. We wish you a

lot of fun while reading this.

All the best!

Niels Weithe

Managing Director Consumer Products –

Arvato SCM Solutions

3

Round two for eXperience Day

Again this year, Arvato eXperience Day

managed to entice more than 100 respected

representatives of leading corporations from

the fashion, cosmetic and FMCG industries

to Bertelsmann’s stunning location in Berlin.

True to the motto „Be inspired, boost your

business,“ participants discussed current

trends in e-commerce with industry experts.

Speakers from Douglas, LVMH, Triumph and

Zalando and others provided insights into

strategies, plans and innovations.

Arvato eXperience Day aimed to provide

a platform for exchanging current industry

issues between the participating corpora-

tions. Frank Schirrmeister, CEO of Arvato

SCM Solutions, kicked off the day by present-

ing future innovations in e-commerce and

logistics business based in Guetersloh. The

next, very special speaker was Henry Patter-

son, a 12 year old Brit, who founded his own

children’s brand, „Not before Tea,“ two years

ago, and boasts a fast-growing online mail-order business [http://

www.notbeforetea.co.uk/]. After a report from Britain’s youngest

entrepreneur, Dr. Joerg Wallner, of the Leipzig Think Tank 2b AHEAD,

presented an overview of current innovation drivers. Professor Gerrit

Heinemann, Director of eWeb Research Center of Niederrhein Uni-

versity of Applied Sciences, concluded the morning programme by

interpreting his vision of the future of retail. Marc Sondermann, Chief

Editor of the Italian publication „Fashion Magazine“, was the moder-

ator.

Guests could choose between two modules during the second

phase of the event. Panel e-commerce consisting of LVMH, Triumph,

as well as Professor Tu-Lam Pham of the International School of Man-

agement in Munich, informed participants about the issues of brand-

ing and innovation in marketing. Therein, they addressed how shops

could increase their conversion rates. Simultaneously, the logistics

area focused on all encompassing issues from Omnichannel logistics

and RFID with experts from Zalando, Tailorit and Douglas. eXperience

Day was rounded off with dinner wherein participants had the oppor-

tunity to exchange outcomes of the conference. eXperience Day will

be continued in 2017 due to its huge success. You can find all infor-

mation about former events here. http://bit.ly/2g6zF4Q

4

Status Quo of Omnichannel Retail – New Study Published

Nowadays, everyone is talking

about Omnichannel. Last year, mul-

tichannel online shops increased their

turnover in Germany from appro-

ximately 11 billion euros in 2014 by

27 percent to nearly 13.9 billion as

per the Federal Association and Mail

Order Retail e.V. (Bundesverband

E-Commerce und Versandhandel

e.V.) What do the retailers think about

the issue of Omnichannel? And what

are the next steps in reaction to this

development? These were some of

the probing questions for the WHU

– Otto Beisheim School of Manage-

ment, Salesforce Commerce Cloud

(formerly Demandware) and Arvato

in a collaborative study.

The study results indicated that

retailers view Omnichannel as an

essential instrument in which they

can increase their turnover and net

sales by interfacing the marketing

channels. Furthermore, a key moti-

vation is to enhance both custo-

mer satisfaction and loyalty. Hence,

many surveyed have already begun

blurring the borders between online

and offline retail. Cross channel pro-

motions, as well as the possibility to

pick-up merchandise in stores (Click

& Collect) are pervasive. Retailers are

struggling with offering online orders

at retail stores, and returns anywhere,

independent of which channel order

was placed.

Retailers and experts agree on

the significance of uniform pricing

for seamless shopping experiences.

As a result, consistent communica-

tion plays a key role across all chan-

nels wherein the public image is

important. In order to successfully

implement the Omnichannel con-

cept, corporate culture needs to be

lived accordingly as per those sur-

veyed. The aim is to break through the

tunnel vision methods from the past:

The sales channels cannot be viewed

as competitors any longer, fighting for

customers, rather they need to work

hand in hand.

IT remains, still, the greatest

challenge for most retailers on the

road to Omnichannel companies.

While some retailers are more advan-

ced with system interfaces, many

others are still playing catch-up.

Essential obstacles are the legacy sys-

tem structures which stem from an

era when Big Data or interfaced sales

channels were not even on our radar.

A central Order Management System

is the most important requirement in

order to both connect with customers

personally and reach them locally.

Furthermore, many who were sur-

veyed believe it is particularly key to

offer payment and return systems in

phases and across channels. The pre-

requisite for this is that all employees,

whether in stores or online shops can

access the same data base.

Complete results from the

study can be found in the current

Omnichannel Status Report.

http://bit.ly/2f4aJIx

5

Omnichannel-Webinar with iBusiness on December 1st

„Is Omni everything?“ This question will be addressed on Thursday, December 1st at 2pm

CET in a free Webinar from iBusiness.de, Arvato and Salesforce. Aimed at decision makers in retail

corporations who are already implementing Omnichannel or planning to in the future. Florian

Moser (Salesforce), Franziska Stallmann (Arvato) and, Dennis Schmitz (WHU – Otto Beisheim

School of Management) will be focusing on how to deal with the various challenges arising on

the road to successful Omnichannel retail strategies and how to manage them. Paying particu-

lar attention to IT infrastructure, the organisational structure and Change Management. This

Webinar is based on a recent collaboration and published study from Arvato, Salesforce and the

WHU. If this captures your interest, you can register for this webinar in German immediately at

iBusiness.de [http://www.ibusiness.de/webinar/]

Congratulations to our client MARC

O’POLO, awarded the “NEO Excellence in

Multichannel“ at this year’s NEOCOM, Trade

Fair and Congress for Digital Commerce on

11th October 2016.

MARC O’POLO convinced the jury not

only with its successful market positioning

across all channels, but also with all its inno-

vative, multi-channel functions systemati-

cally developed with Arvato’s support during

the past years. This includes, for example, the

programme „MARC O‘POLO for Members“,

launched in 2015, wherein registered users

can reserve products online and pick them

up in retail stores. Moreover, employees in

the stores are equipped with Tablets allowing

direct access to customer’s account ensuring

tailored consultations. The customer loyalty

programme entails additional special ser-

vices wherein certain clothing items can be

tried on at preferred stores selected by cus-

tomer. These locations are independent of

order channels – independent of location and

order channels for exchange service. Moreover,

they provide a free of charge tailor service for

customers who have achieved a certain status.

[http://bit.ly/2fVV4sx]

MARC O‘POLO Receives NEO-Award

6

Christmas business is the highlight of every year for e-commerce. Indeed competition is fierce and there are various sales to woo the customers. The essential thing is to be prepared! Our tips can provide a reason to look forward to the mad dash into shops. We can divide the Christmas business into three general phases. The „high volume phases“ beginning mid-October – ideally retailers have already determined how they will be positioned for their Christmas business.

Three Phases of Christmas Business

1THE PREPARATION

As per a current survey by Forsa, 83 % of Germans purchase their Christmas presents

after the beginning of November. „Of course, this is based on customers already

knowing which presents they wish to buy,“ explained Peter Buse, COO of Consumer

Products at Arvato SCM Solutions. „They are searching in advance for inspiration

and good deals.“ Hence, you should begin targeting your sales and marketing pro-

motions for Christmas business already in mid-October. This includes, for instance

special discounts, current gift trends and extending timeframes for exchanges.

2THE MAD DASH

Beginning of November, customers start to actively compare prices and search

for discounts. Take care that your web shop technology is functioning optimally

and the most important search engines should be optimised. Your Christmas pro-

motions should be prominently advertised at the latest by November. Therein,

it is key to remain flexible in order to adapt your sales to customers’ demands:

„Buyers’ purchasing habits are erratic until Christmas“, according to Peter. „Me-

anwhile, special promotions, such as ‚Black Friday‘ or ‚Cyber Monday‘ have

gained a foothold in Europe as well. These include the latecomers, who place

their purchases at the last minute before the holiday, year after year.“

3THE FINALE

Essentially, it is key that the customer receives merchandise by Christmas Eve,

regardless of how great the deal was. Optimise your logistics well in advance so

that you can offer the greatest possible window for ordering. Your customers are

expecting to order and receive the delivery just before Christmas which means

you are also dependent on service providers: „Carrier Management informs us

in due time before Christmas when a parcel needs to be dispatched in order to

reach its recipient by Christmas Eve,” states Peter. Nothing stands in the way of

successful Christmas business and happy customers ordering again next year,

when your logistics processes are synchronised.

7

Which Device Dominates Online-Traffic?

PPCs, Notebooks, Smartphones, Tablets

– customers use a wide range of various

devices. Which device dominates the online

shop traffic during certain time periods? Our

Arvato eCommerce Competence Center has

researched this in Germany, France and Great Britain.

The results support shop operators in planning their

marketing measures more precisely.

Basically, it is important to distinguish between days

during the week and weekends. During the week, daily life

is driven by work, school and university studies. Before

their day starts, most Germans check their cell phones.

After 7am, they use office PCs or laptops to access online

shops. Desktop devices dominate during this time. Just

the opposite is the case around 7pm as mobile devices

begin to dominate again. Viewed over the entire day, PCs

and Smartphones have similar traffic: Both devices lead

over twelve hour periods. The same situation applies in

Great Britain, except that the change from PCs to Smart-

phone occurs already at 5pm. Contrarily, PC use in France

is much more pronounced: During a normal week day,

PCs dominate for more than 15 hours. The French, on the other hand, increasingly

purchase online with their Smartphone first after 10pm.

Naturally, these circumstances partially shift on the weekends. Since more

time is spent for leisure activities and users are less stationary, more of them shop

on their Smartphones. In Germany, Smartphones dominate for 11 hours, namely

before 11am, and after 5pm reducing timeframe for PC use accordingly. Likewise

in France, Smartphones are more often in use during weekends; PCs lead by 14

hours. On the contrary, Brits love their Smartphones, as they are primarily respon-

sible for the online shop traffic on the island during the weekend.

Online shops can reach their customers even more effectively with this infor-

mation. A case in point was verified by the study, namely the push message to

mobile end devices. They are much more effective in Germany than previously

after 7pm. Beforehand customers are still at work and primarily use their compu-

ters. Shops can, nevertheless, reach their customers already after 5pm with push

messages in Great Britain. Online shops without a „responsive design,“ should

quickly catch up and transition to this web design. Obviously, the days wherein

PCs dominated internet traffic are over. For detailed results of the study, click here

http://bit.ly/2ggJ4G0

Germany’s Best Online Shops in 2016

8

„Congratulations“ to our clients Brax, Douglas,

Gerry Weber and Fressnapf, who made it to the winners‘

podium of „Germany’s Best Online Shops in 2016!“ The

German Institution for Service Quality and n-tv in Berlin

hosted the awards ceremony in September.

In an online panel, the German Institution for Ser-

vice Quality and n-tv conducted an extensive survey of

35,000 customers to determine the winner. In each of

the 37 total categories, three online shops received an

award for best performance based on six core service

areas: Value for money, product selection, customer ser-

vice, internet presence, shipping and returns, as well as

order and payment conditions. Consequently, around

50 subcategories were addressed, primarily focused on

product quality or processing returns.

Launching its online shop in spring, Brax Leinewe-

ber GmbH & Co. KG from Herford won over customers

in the category Fashion Women & Men (with branch

offices). Arvato’s client, Douglas also won in the category

Cosmetics & Drug Stores with their popular Douglas Web-

shop. This was, nonetheless, just the beginning of the suc-

cess streak during the award ceremony at Bertelsmann’s

Berlin location on 13th September. Online Shop Gerry

Weber triumphed in the category Fashion Women (with

branch offices) and Fressnapf.de won hands down in the

pet supplies sector. Hence, Fressnapf and Douglas could

maintain their title from the previous year. Keep it up!

You can retrieve the entire list of champions here.

http://bit.ly/2fhX5jI

+++ Der Arvato-Newsticker: Fashion Designer Tests New Sales Model +++ Terry Norman Supporting Arvato +++ Arvato SCM

Solutions Also Now on LinkedIn +++ Digital Returns Slip +++ Customer Loyalty in E-Commerce +++

How the Germany, British and French Shop +++ US Retailers Invest in Social Media +++

NEWS

FASHION DESIGNER TESTS NEW SALES MODEL The fashion industry has a timing challenge: Collections are shown during

the big Fashion Weeks which are for sale in stores months later. Meanwhile,

so-called „fast fashion shops“ manufacture ready-made fashion based on Cat-

walk creations. Customers do not have any reasons to purchase these original

creations when they are offered later on for sale in stores. After the industry

has observed this trend for some time now, attempts to turn this around are

under way. During the New York Fashion Week beginning of September, fashion

designers will test new sales models: For some shows, only currently available

collections will be modeled. For others, the audience can buy select items

directly thereafter. In this way, designers and retailers would like to approach

customers by granting their wishes for current and available fashion. You can

read the entire online issue in the Economist.

TERRY NORMAN SUPPORTING ARVATO Terry Norman is the new Senior Director of Development for Arvato SCM

Solutions. He is dedicated to further expansion of the Dutch market in

this capacity. Norman is from the Dutch Supply Chain Special, Bleckmann,

where he has worked in various position since 1993. In the past two deca-

des, he has made his name as an expert for supply chain outsourcing for

fashion and lifestyle corporations, developing solutions for more than 40

international fashion corporations at Bleckmann Logistics.

ARVATO SCM SOLUTIONS ALSO NOW ON LINKEDIN You can find current news about Arvato on the new LinkedIn focus page for

Consumer Products, as well as information about current trends moving the

fashion, beauty, luxury and FMCG industries. This includes, for example, current

Omnichannel trends and the burning question how retailers can optimally

implement it. With more than 100 million active users, LinkedIn is by far and

away the largest business network worldwide. Reason enough for Arvato SCM

Solutions to also be present here. Check it out! We are looking forward to your

digital visit! http://bit.ly/2eSlien

DIGITAL RETURNS SLIP Shop online, track your parcel online, and pay via online. E-commerce can almost

forgo paper with one exception: Returns slips. Up to now, for several retailers, it

has to be completed by hand and affixed to the parcel. Even that could be much

simpler with, for instance a QR code, connected to an App and then scanned. This

variation is advantageous for both sides. The customer can simply return the item

which in turn increases customer loyalty. After all, according to a customer survey

conducted by ECC Cologne, 70% said that an uncomplicated returns process is the

most important reason for repeat purchases. Furthermore, shops benefit as well. The

handwritten returns slips still need to be digitalised which is a complex process. This

step is no longer necessary with the mobile variation.

You can find an explanation of precise functionality and examples at e-tailment

(Article in German).

CUSTOMER LOYALTY IN E-COMMERCE Oliver Bohl, Director Digital Business of Payback, at Internet World Business

wrote that many online shops focus too much on new business, and therein

neglect their repeat customers. While loyalty programmes have been in exis-

tence for 30 years as part of a sales schemes, online retailers need to catch up

along these lines. Amazon Prime and eBay Plus illustrate therein that customer

loyalty also functions in e-commerce provided the incentives add up.

You can find the entire article in the online issue of Internet World Business

(Article in German).

HOW THE GERMANY, BRITISH AND FRENCH SHOP

A German e-commerce customer can select on average 3.6 shipping options, i.e.

Standard, Express, Collect & Click or Same Day Shipping. In contrast, the British

are offered 4.8 possibilities. Despite this German buyers actually receive their

products the quickest, for instance via standard shipping within 3.1 days! Never-

theless, they have an average of 26 days to return items, whereas the French get

40 days and the British even more at 42 days. What is more, the costs are borne

by the corporations as a rule, hardly any carriers over here have adapted their

delivery conditions despite the amended laws. Customers in France and Great

Britain are actually used to paying for returns or taking them to the nearest store,

in France this cover approximately 66%, and in Great Britain even over 80%, of

the retailers. On the contrary in Germany, 42% offer free returns which indicates

that many corporations actually need to catch up with respect to Omnichannel

in comparison to the other giant markets in Western Europe.

You will find further information and background at e-tailment (Article and

Report in German).

US RETAILERS INVEST IN SOCIAL MEDIA Roughly three-quarters of US retailers invested in social media marketing in the

past year. Supporting these results, is a current study by Forrester Research. Thus,

social networks could convince marketing experts of new advertising options com-

parably priced and cost-effective. The cost per order at social media marketing was

on average 16 USD while online advertising in search engines was reflected at 36

USD. Therein 68% of those surveyed, stated Facebook ads particularly boosted

sales, followed by Instagram, Pinterest, Youtube and Twitter.

You can find the complete article at Internet Retailer.

HERAUSGEBER: Consumer Products – Arvato SCM Solutions | An der Autobahn 22 | 33333 Guetersloh | GermanyREDAKTIONSLEITUNG: Katharina Manns, ADHOC PR | REDAKTION: Arvato SCM Solutions KONTAKT: info-consumer@arvato.com | LAYOUT/PRODUKTION: Elisabeth Rier, HOTSUSHI

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