DIGITAL'S ONGOING REVOLUTION L'Oreal capital markets presentation

Transcription

1 DIGITAL'S ONGOING REVOLUTION L'Oreal capital markets presentation 9 / 15 1

2 Chris Rittenmeyer GETTING OLD 15 years experience founding, leading and advising high tech and digitally focused companies across the globe FELT DIGITAL DISRUPTION Former CEO of 1B Technology and services company that needed to transform to a digital product led portfolio LIKE BUILDING THINGS BCG Digital Ventures is a corporate venture capital firm with services we build disruptive businesses across multiple industries CO-FOUNDER, PARTNER AND MANAGING DIRECTOR BCG DIGITAL VENTURES 2 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 2 SEPTEMBER /

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4 1 Change is accelerating Winners don't invent they uncover Both Start-Ups and incumbents are winning Winning is about the right mindset 5 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 5 SEPTEMBER /

5 1 Change is accelerating 6 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 6 SEPTEMBER /

6 Consumer behaviour is changing rapidly 7 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 7 SEPTEMBER /

7 More than a third of ecommerce transactions are now mobile Mobile share of retail ecommerce transactions Japan UK South Korea Netherlands Germany US Spain Italy France Russia Brazil Global average = 34% SEPTEMBER / 2015 Q septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Source: Portfolio Criteo Approach 8 (%) 8

8 Online is increasingly a critical part of consumers' purchase decisions Discovery Search Locate Buy Post-purchase US deep dive Offline activity Online activity Global average = 34% SEPTEMBER / 2015 Source: Phase 1 of BCG/GMA "The Q Digital Future A Game Plan for CPG" (July 9 septembre 14, 2015 The New Face of Innovation: 2014) PGMA/IRI Corporate AttitudeLink Ventures, online A Portfolio grocery survey, Approach April (%) 9

9 Technology is enabling unprecedented innovation in digital commerce & BEYOND CATALOG + CART MULTICHANNEL SOLOMO PLATFORMS PERSISTENT + CONTEXTUAL virtual Internet of Things Augmented/Virtual reality Big data => Contextual experiences Apps + services + content+ devices Wearables Social content & community Mobile research & commerce Vertical integration Data-driven personalization New fulfillment models 3D printing Virtualized, on-demand supply chains Biometrics Breadth of assortment + price Site + Store Local offers Relationship-based commerce Marketplaces International expansion New commerce models Subscription models Persistent connectivity New shipment platforms and drones 10

10 Success requires companies to realign across their entire value chain ASPIRATION 1 BUSINESS MODEL 2 CHANNEL STRATEGY BRAND ARCHITECTURE ORDERING RETENTION AVAILABILITY 3 VALUE PROPOSITION DELIVERY DIGITAL PLATFOR M 4 MARKETING MERCHANDISING MOBILE & ONLINE UI/UX FEATURES ORDER MGMT. & FULFILLMENT SERVICE & RETURNS CAPABILITIES 5 ORGANIZATION COMMERCIAL MARKETING OPERATIONS IT ECOSYSTEM 6 DIGITAL PUBLISHERS SOCIAL NETWORKS WHOLESALE PARTNERS RETAIL STORES TECHNOLOGGY PARTNERS ADVOCATES 11

11 2 Winners don't invent they uncover 12 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 12 SEPTEMBER /

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32 33 33 SEPTEMBER septembre 14, 2015 / 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 33

33 3 Both Start-Ups and incumbents are winning 34 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 34 SEPTEMBER /

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38 The incumbents have the right to win $3.7T in corporate capital waiting to be ventured Hidden wealth of talent and resources waiting to be let loose Scale of operations and heavy marketing muscle 39 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 39 SEPTEMBER /

39 4 Winning is about the right mindset 40 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 40 SEPTEMBER /

40 That won't happen in our industry - FAMOUS LAST WORDS 41 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 41 SEPTEMBER /

41 Successful digital change requires a customer focus and a VC like portfolio approach BE RELENTLESSLY CUSTOMER FOCUSED THINK LIKE A VC Continuously interact and learn from consumers and ecosystem Solve for consumer pain points Focus core corporate assets to solve them Execute against this customer centric vision Set out to have a portfolio of options Test and learn at pace don't leave ideas on the shelf Quickly determine whether worth it, if not stop Set rigorous KPIs for incremental funding Invest in the team and go to market plan as much as the idea 42 septembre 14, 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 42 SEPTEMBER /

42 small empowered team unmet human needs test and learn think in weeks create a product SEPTEMBER septembre 14, 2015 large slow committee market research fear of failure think in years create a PowerPoint / 2015 The New Face of Innovation: Corporate Ventures, A Portfolio Approach 43

43 Change will come, those with the right culture and mindset will ride the wave of change SEPTE septembre 14, 2015 COMMERCIAL IN CONFIDENCE This document contains proprietary information that is protected by copyright. This document must not be reproduced, transcribed, stored, translated or transmitted in part or in M B E R / 2015 whole, without the prior written approval of BCG Digital Ventures. The New Face of Innovation: Corporate Ventures, A Portfolio Approach Copyright BCG Digital Ventures