Beyond the Label. Providing Digital Information Consumers Can Trust

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1 Beyond the Label Providing Digital Information Consumers Can Trust

2 Digital Consumer Information in the Context of the Future Value Chain 2020 Future Value Chain Building Strategies for the New Decade 2

3 12 Main Future Value Chain Trends Are Characterizing the Next Decade Increased Urbanization Aging Population Increasing Spread of Wealth Increased Impact of Consumer Technology Adoption Increase in Consumer Service Demands Increased Importance of Health of Health and Wellbeing and Wellbeing Shoppers continue to become more empowered using technology This drives significant changes in consumers behavior and buying behavior and new levels of service demands Shoppers want more healthy products and a healthier lifestyle Growing Consumer Concern about Sustainability Shifting of Economic Power Scarcity of Natural Resources Increase in Regulatory Pressure Rapid Adoption of Supply Chain Technology Capabilities Impact of Next- Generation Information Technologies 3

4 Four Common Strategic Objectives Have Jointly Been Defined Make our business more sustainable From niche to norm Optimize a shared supply chain Collaborate differently, compete differently Engage with technology-enabled consumers The consumer in the driver s seat Serve the health and wellbeing of consumers Focus on quality of life 4

5 Engage with Technology-Enabled Consumers: The Consumer in the Driver s Seat Consumer technology... Changes lives of consumers Changes shopping journey Increases marketplace transparency Consumers... Demand personalized dialogues and offerings anytime, anywhere Embrace technology quicker than the industry Digital natives are increasingly big consumer base Digital immigrants also heavily use consumer technologies The industry... Needs to figure out how to effectively interact Needs to be viewed as a trusted source for information Successful companies engage consumers in new product and service development Success will come when we understand how to maintain a true dialogue with consumers via their preferred channels and technologies 5 5

6 Serve the Health and Wellbeing of Consumers: Focus on Quality of Life Health and wellbeing of consumers Physical, emotional, spiritual, intellectual and sustainable wellbeing Positive changes in consumer behavior Healthy choices available for all budget levels Information/education to make informed choices To be established via a new way of working together Governments, consumer goods companies, pharmaceutical companies and NGOs Enabling new business models Enabling a dialogue to collaboratively work on concrete solutions Success will come when we focus on better lives through better business 6 6

7 Focus on Consumer s Cross-Channel Shopping Journeys 7

8 Brand Communication is Changing! 8

9 Current Digital Information is Bad! 9

10 Everybody Loses With Bad Digital Information Consumers need information they can trust Brand owners risk loss of brand equity and sales Application providers face lost usage Providing accurate information about our products is a critical part of building trust with our consumers Werner Geissler, Vice Chairman, Global Operations, Procter & Gamble 10

11 Consumers Want Nutrition and Ingredient Information 11

12 Consumers Increasingly Demand Mobile Functionalities Source: Mobile Commerce Report 2011: Mobile in Retail, GS1 Sweden, ECR Sweden, Ericsson 12

13 Future Success! I just started my diet and by scanning products during my grocery shopping, I was able to find low-calorie options and plan my meals accordingly. I have improved my ability to reach and satisfy one of my target consumer groups, whom I call the misinformed target. Since I began extending our own accurate data to serve this user, consumer complaints have gone down and the former misinformed target segment has become a loyal group of shoppers who have now increased their positive comments to peer consumers. Brand Owner Consumer on a Diet My son has a life-threatening peanut allergy, so I have to be a careful shopper. I now feel more confident that I can pick a product off the shelf, scan the barcode with my mobile device, and get allergen information I know I can trust. Parent of Son with Severe Allergy My husband has high blood pressure and has been instructed by his doctor to reduce his saturated fat intake. Shopping with my tablet helps me quickly choose products that are healthier options, without sacrificing the foods he likes. Spouse with High Blood Pressure 13

14 Moving Towards Good Digital Information for Consumers Focus on authoritative consumer information Core, master product data, including product descriptions, ingredients and nutritional information, as provided by the brand owners (manufacturers or retailers) or other authorized sources Improve B2C data quality Data integrity Data authenticity Data accuracy Data completeness Achieve consensus on a business-driven solution Global Scalable Real-time Multi-sourced 14

15 Call to Action Accept joint responsibility Commit to improving digital product information NOW! Embark on business-led journey with a pivotal role for The Consumer Goods Forum and GS1 15

16 Everybody Wins With Good Digital Information Consumers can make better and more informed buying decisions Brand owners can build trust with consumers Application providers and datapools bring more value against lower costs The big picture: Helping to achieve the industry s strategic objectives 16

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