1. © 2012 GS1 1 Business-to- Consumer (B2C) Training October 2012

2. © 2012 GS1 Who’s who?

3. © 2012 GS1 How expert in B2C do you feel?

4. © 2012 GS1 What are your needs?

5. © 2012 GS1 Objectives This course will introduce you GS1 Business-to-Consumer (B2C) so you can: Understand market trends driving B2C Align with the global GS1 Source Project Make the right business and technical decisions to set up a local data aggregator Engage your local stakeholders Create an action plan to roll-out B2C in your country

6. © 2012 GS1 Agenda Introduction Module 1: Understand your B2C market Module 2: Develop your B2C value proposition Module 3: Deliver value for B2C Module 4: Action Plan Conclusions

7. © 2012 GS1 GS1 Marketing Framework 7 3. Deliver value 2. Develop the value proposition 1. Understand the market

8. Module 1: Understand your B2C market

9. © 2012 GS1 Who are B2C stakeholders?

10. © 2012 GS1 Stakeholder List 10 Consumers Manufacturers Retailers Application Developers Governments Data Pools Associations: industry, consumer …

11. © 2012 GS1 Consumer Trends 11 Technology Adoption Health and Wellness Ageing population Budget Higher expectations: value, quality, novelty, service

12. © 2012 GS1 Internet Broadband Adoption

13. © 2012 GS1 Mobile Adoption

14. © 2012 GS1 Consumers have become “digital consumers”… 14 36% of the world’s population owns a smartphone (Nielsen, 2011) 50% of all retail sales are web-influenced (Forrester, 2011) 80% of consumers use social networks to research new products (IBM, 2012)

15. © 2012 GS1 Benchmark Category Most popular types of information Consumer Research (1)

16. © 2012 GS1 Manufacturer Trends 16 Rising commodity costs: raw materials, food, fuel Growth: Supply chain vs. demand chain Corporate Social Responsibility: ethical, sustainable

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18. Retailer Trends 18 eCommerce Omnichannel Growth: Private label, store formats… Inertia of physical stores

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25. Source: OC&C Strategic Consultants

26. © 2012 GS1 App Developer trend 26 Closeness to consumer needs Innovation Flexibility

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30. Digital product data is often low quality

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32. Digital product data is often low quality 64% of consumer product webpages had problems with information completeness, presentation or accuracy (Clavis, 2012) Only 29% of retailers and 40% of consumer product companies help customers find the exact products to fit their needs by offering specific search attributes (e.g. “non-lactose”, “organic”) (Capgemini, 2012)

33. © 2012 GS1 Consumer Research (2) Consumer survey undertaken by GS1 - 7 countries, 1000 representative sample in each country - “what do consumers want?” 33 73% of consumers consider it important that product information is trustworthy 38% of consumers would not purchase the product if they did not trust the product information displayed about it on their mobile phone 37% of consumers would never use an app again if it contained incorrect product information 28% consumers would never use an app again if it contained no product information Consumers want information that is:  Correct  Complete

34. © 2012 GS1 Government Trends 34 Food safety Food information for health and wellness

35. © 2012 GS1 EU Regulation 169/2011 - Background The law will come into force in December 2014 in all EU countries Requires that a significant amount of food information be available to the consumer before he/she purchases pre-packed food on a website or other distance sale This mandatory information must be available on or through the website without charge to the consumer If the information is not available, the pre-packed food cannot be sold on a website EU Impact Assessment completed by law firm Mason, Hayes & Curran. See http://www.gs1.org/docs/b2c/EU_FIR_Impact_Analysis.pdf http://www.gs1.org/docs/b2c/EU_FIR_Impact_Analysis.pdf 35

36. © 2012 GS1 EU Regulation 169/2011 – GS1 Activity Co-operation between the brand owner and on-line retailer will be required to ensure that accurate and complete mandatory food information is available to comply with the law The TSD Framework can fulfill this responsibility being placed on the brand owner and website operator Full gap analysis of the EU requirements v TSD Phase 1 Attributes being undertaken and the additional requirements will be proposed as Phase 2 Food & Beverage attributes for TSD Separate one-pager produced spelling out how the GS1 B2C TSD can support brands and on-line sellers in complying with it. See http://www.gs1.org/docs/b2c/EU_Regulation_1-pager.pdf http://www.gs1.org/docs/b2c/EU_Regulation_1-pager.pdf 36

37. © 2012 GS1 Data Pool Trends 37 B2B  B2B2C Consolidation

38. © 2012 GS1 Brand OwnersOther organisations Top 5 companies Other companies …………………… Key Targets ……………………

39. © 2012 GS1 “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” Peter Drucker

40. Module 2: Develop your B2C value proposition

41. © 2012 GS1 GS1 B2C Trusted Source of Data (TSD) GS1 aims to become the trusted source of data to support the communication of authentic product data provided by brand owners to consumers/shoppers, retailers and internet application providers using internet and mobile devices. 41

42. © 2012 GS1 Governance: Project Board Co-chairs Brands Retailers Other Australia, Colombia, Europe, France, Germany, UK and US

43. © 2012 GS1 B2C TSD – Project Overview  The vision of the B2C project is that:  Brand-owners can share relevant product information easily, thus building trust with consumers.  Internet application providers (IAPs) can ensure they are delivering authentic data.  Consumers can feel confident that the digital product information they access is accurate, no matter how or where they shop  8 countries participating  6 core attributes and 19 nutritional attributes

44. © 2012 GS1 Project Scope Basic Product Information Product Name Brand Owner Name Product Description Product Image URL Product URL Nutritional Product Information Vitamins (Vitamin A - Vitamin C) Calcium Iron Proteins Calories - Energy (Total - Fat) Carbohydrates (Total – Dietary Fibre Sugars) Fat (Total - Saturated- Trans - Polyunsaturated - Monounsaturated) Cholesterol Sodium Serving Size / Servings Per Container

45. © 2012 GS1 Vision: GS1 Trusted Source of Data Brand Owners Good data Apps Websites Internet Application Providers Good data Happy Consumers TSD Service Good data

46. © 2012 GS1 Global Pilot Countries: 8 Aggregators: 5 IAPs: 5 Participating Brands: 30+ Products: 900+

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48. © 2012 GS1 Actions following pilot Pilot report published See http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report_Summary.pdf http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report_Summary.pdf Project report written to address vision, roadmap, business participation, operating model and data management. See http://www.gs1.org/docs/b2c/GS1_TSD_Project_Report.pdfhttp://www.gs1.org/docs/b2c/GS1_TSD_Project_Report.pdf GSMP group chartered to work on interoperability standards New Business Information Needs Group chartered with joint GS1/CGF participation to ensure engagement and alignment with TCGF “One-pager” produced for brand champions to engage with colleagues at local level to explain the GS1 B2C TSD 48

49. © 2012 GS1 Global Groups  Project is a joint initiative with the Consumer Goods Forum (TCGF)  GS1 B2C Project Board: CEOs of active GS1 MOs, executives from active user companies, TCGF, and academia. Responsible for setting the global direction of the GS1 TSD project.  GS1/TCGF B2C Information Needs Group (BING): All stakeholders involved in the development the TSD and other related GS1 B2C projects. This is an industry engagement group which focuses on business needs and drives the adoption of global best practices and standards. More information at http://www.gs1.org/gsmp/community/working_groups/ie. http://www.gs1.org/gsmp/community/working_groups/ie  Global Standards Management Process (GSMP) B2C TSD Mission Specific Work Group: Developing the global interoperability standards supporting the phase 1 TSD data model and the architecture vision. More information at http://www.gs1.org/gsmp/community/working_groups/gsmp. http://www.gs1.org/gsmp/community/working_groups/gsmp

50. © 2012 GS1 Solution Overview

51. © 2012 GS1 Solution Components 51

52. © 2012 GS1 GS1 Source: Global Architecture Vision Under development for delivery with standards 52

53. © 2012 GS1 2D bar codes for B2C

54. © 2012 GS1 GS1 Source: Value Proposition Brand Owners (Product manufacturers and private-label retailers) Data Users (Online retailers, app developers, governments) Data Aggregators (GDSN Data Pools and specialised aggregators) Digital Consumers Provide real-time access to accurate product information authorised by brand- owners Sell more products and protect the brand by being accurately represented in a widespread way for digital consumers Get single-source access to product data authorised by brand-owners Comply to EU distance-selling regulations from 2013 Use authentic product data in apps and on websites

55. © 2012 GS1 Value Proposition: Brand-owners For ……………………………………….. who ………………………………………. our ………………………………………... provides ………………………………… Unlike ……………………………………. our ……………………………………….. ensures …………………………………. because ………………………………….

56. © 2012 GS1 For ……………………………………….. who ………………………………………. our ………………………………………... provides ………………………………… Unlike ……………………………………. our ……………………………………….. ensures …………………………………. because …………………………………. Value Proposition: Internet Application Providers

57. Module 3: Deliver value

58. © 2012 GS1 Are you ready for B2C? Here’s what you’ll need: A data aggregator Product data authorised by brands Data users

59. © 2012 GS1 Running a pilot 59 Build a committed team Brand-owners Solution providers Other stakeholders e.g. universities Keep focused on business needs not on technologies Define scope but encourage experimentation Create visibility Demo Press conference … Plan for success: what will be your next step when the pilot is successfully completed

60. © 2012 GS1 Working with a specialised solution provider

61. © 2012 GS1 MO approaches 61 GS1 Belgilux GS1 France GS1 Canada GS1 Australia

62. © 2012 GS1 62 2009: Nestle uses GDSN to sync item data via 1Sync & GS1net to Australian retailers (price data locally) 2010: local B2C work group formed incl. support for GoScan iPhone app development Mar 2011: Local B2C data requirements confirmed based on GDSN food & beverage data extension. May 2011: Ext Labelling ‘call to action’ launched asking retailers & brand owners to provide data for GS1 GoScan 2012: Nestle signs up to GoScan service and also uses 1Sync for B2C data incl. nutritional, ingredient & dietary, information, allergen declarations & batch number advice Example: Nestle Australia’s B2B2C Journey

63. © 2012 GS1 63 Nestle aligns internal processes to meet & sustain GoScan data requirements Some local retailer req’ts not aligned to GDSN GDD B2C data is extracted from Nestle “Nutribank” to supplement B2B data via 1Sync/GS1net Nestle B2C data published to GS1 Australia’s aggregator - “DataBank” Product images supplied by Nestle via 3 rd party media company loaded in DataBank Nestle must validate all GoScan data and images in DataBank for completeness and accuracy before release to consumers Example: Nestle Australia’s B2B2C Process

64. © 2012 GS1 Global Project: next steps 64 Standards Certification Marketing Phase 1  Phase 2 Digital Coupons

65. © 2012 GS1 Standards 65 B2C TSD phase 1 standards published by Q1 2013 Prototype planned to trial TSD Standard Specification to improve the quality of the final standard Prototype Participants: 1WorldSync, epcSolutions, GS1 Colombia, GS1 France, GS1 Italy, GS1 Russia

66. © 2012 GS1 Certification 66 Objective: Ensure data aggregators follow standards correctly Benefits: Brands and IAPs know which aggregators are participating in the TSD framework / Reinforces credibility of the TSD framework Timeline Beta certification (8 pilot countries) – circa June 2013 Full certification (all interested – target 14 countries) – circa Dec. 2013 Details: see Data Aggregator requirements in Project Report

67. © 2012 GS1 Marketing 67 GS1 Marketing launch in Q1 2013 in partnership with data aggregators –Use global umbrella name for framework: GS1 Source –Global website explains framework –Webinar series Data aggregators Declaring that service is “powered by GS1 [name]” part of terms and conditions for accredited data aggregators User companies Support overall awareness and adoption via relevant contacts/channels

68. © 2012 GS1 Phase 1  Phase 2  Phase 1  From May 2012 - Local services in multiple countries  From July 2012 - Prototype Global Service (interoperability) in some of the 8 pilot countries  From September 2012 - Agree TSD name and marketing strategy  From Jan 2013 - Full Production (global interoperability)  Phase 2  Country expansion into 2nd wave of countries (6 new by June 2013)  Company expansion of other categories – core attributes only  Agree new attributes with CGF sub-group 68

69. © 2012 GS1 DRAFT Work in progress or plannedWork finalised or near closure 2013 2012 JUNE JULY TSD GLOBAL INTEROPERABILITY STANDARDS DEVELOPMENT: Messages, Data Model POC Ph. 1 Pilot Work Proposed for Approval GS1/CGF Phase 2 Proposal Version 001 – Dec 2011 DRAFT B2C TSD Timeline LOCAL TSD SERVICES Using Global Data Model Global TSD Services: Certified Interoperable 69 Prototype Global Interoperability Implementations Draft Spec for Prototype Submit learnings Project Report (incl. Op. Model) Vision without action is a daydream. Action without vision is a nightmare

70. © 2012 GS1 Today’s Digital Coupon Landscape Consumers 70 Retailers Brands

71. © 2012 GS1 GS1 Enabled Coupons Multinational Brands can execute offers in the same way in multiple countries and with multiple retailers Mobile Industry and Solution Providers need a baseline and one standard to implement rather than multiple Multinational Retailers can accept offers in the same way in multiple countries Consumers will have more commonality and better experience at POS Takes costs out of the coupon supply chain at all levels Digital Coupons can be better integrated with other digital applications/solutions (Extended Packaging, Self Scanning, Shopping lists, mobile payment) 71

72. © 2012 GS1 GS1 Standard Digital Process

73. Module 4: Action Plan

74. © 2012 GS1 "Vision without action is a daydream. Action without vision is a nightmare"

75. Conclusions

76. © 2012 GS1 Review objectives & expectations

77. Resources to help you

78. © 2012 GS1 Global Office Team Malcolm Bowden, President Solutions malcolm.bowden@gs1.org malcolm.bowden@gs1.org Cameron Green, Director B2C cameron.green@gs1.org cameron.green@gs1.org Dipan Anarkat, B2C Technology dipan.anarkat@gs1.org dipan.anarkat@gs1.org Joe Horwood, B2C Marketing joe.horwood@gs1.org joe.horwood@gs1.org Contact us if you have questions!

79. © 2012 GS1 Resources: Background 79 GS1 Capgemini Beyond the Label Report http://www.gs1.org/docs/b2c/Beyond_the_Label.pdf http://www.gs1.org/docs/b2c/Beyond_the_Label.pdf Legal impact analysis of EU Food Information Regulation http://www.gs1.org/docs/b2c/EU_FIR_Impact_Analysis.pdf http://www.gs1.org/docs/b2c/EU_FIR_Impact_Analysis.pdf

80. © 2012 GS1 Resources: Pilot & Project 80 Project Report http://www.gs1.org/docs/b2c/GS1_TSD_Project_Report.pdf http://www.gs1.org/docs/b2c/GS1_TSD_Project_Report.pdf Pilot Report (Summary) http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report_Sum mary.pdf http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report_Sum mary.pdf Pilot Report (Full) http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report.pdf http://www.gs1.org/docs/b2c/GS1_TSD_Pilot_Report.pdf

81. © 2012 GS1 Resources: Marketing 81 Why share your digital product information? 1-pager for brand-owners http://www.gs1.org/docs/b2c/GS1_Trusted_Source_of_Dat a_1-pager_for_brand-owners.pdf http://www.gs1.org/docs/b2c/GS1_Trusted_Source_of_Dat a_1-pager_for_brand-owners.pdf Selling online? Digital product information essential to meet EU Food information Regulation http://www.gs1.org/docs/b2c/EU_Regulation_1-pager.pdf http://www.gs1.org/docs/b2c/EU_Regulation_1-pager.pdf

82. © 2012 GS1 Help us build GS1 Source