Unibail-Rodamco-Westfield SE · EURONEXT:URW
Unibail-Rodamco-Westfield — Unibail-Rodamco — Investor Day (May 2016)
43 slides from Unibail-Rodamco-Westfield's investor day presentation, May 12, 2016
Slide 1: Digital Strategy - 2016 Investor Days
Digital Strategy - Jean-Marie Tritant, Chief Operating Officer 2016 INVESTOR DAYS
Slide 2: Disclaimer
DISCLAIMER Unibail-Rodamco S.E., a Société Européenne à Directoire et Conseil de Surveillance incorporated under French law, is a listed closed end property investment company. Unibail-Rodamco is registered with the French Authority of Financial Markets (AMF). The value of your investment may fluctu
Slide 3: Digital Retail: From Threat to Opportunity
DIGITAL RETAIL: FROM THREAT TO OPPORTUNITY Polygone Riviera, Cagnes-sur-Mer
Slide 4: Digital Retail: From Threat to Opportunity
DIGITAL RETAIL: FROM THREAT TO OPPORTUNITY 1. NEW TRENDS IN DIGITAL RETAIL 2. THREE KEY CHALLENGES FOR DIGITAL RETAIL 3. OPPORTUNITIES FOR UR SHOPPING CENTRES 4
Slide 5: E-commerce in Europe: a growing market, but at a slowing pace
E-COMMERCE IN EUROPE: A GROWING MARKET, BUT AT A SLOWING PACE 331 Mn e-shoppers in Europe(1) € Estimated online sales in Europe in 2015: €477 Bn(2) +34.4% +17.0% CAGR 2003-2009(1) CAGR 2009-2015(1) (1) Ecommerce Europe 2015 (2) Ecommerce Europe. Forecast 2015 3
Slide 6: Deceleration expected to continue, like in the U.S.
… AND DECELERATION IS EXPECTED TO CONTINUE, LIKE IN THE U.S. E-commerce sales growth projection in the U.S.(1) 1,506 1,328 1,156 995 840 695 23% 21% 18% 16% 15% 13% 2013 2014 FY-2015 FY-2016 FY-2017 FY-2018 E-commerce sales ($ Mn) E-commerce sales growth (1) Source: AT Kearney: Global Retail E-Comme
Slide 7: Within e-commerce, the share of m-commerce is rising
WITHIN E-COMMERCE, THE SHARE OF M-COMMERCE IS RISING € 60% +93% 12% of online of Europeans growth of m-commerce purchases made own a smartphone(1) on smartphones in 2015(1) on mobile devices(2) Average annual spending basket for a mobile buyer: +50% in 3 years(3) (1) Estimation RetailMeNot for 2015
Slide 8: Physical retailers: from defensive to proactive approach to e-commerce
PHYSICAL RETAILERS: FROM A DEFENSIVE TO A PROACTIVE APPROACH TO E-COMMERCE Physical stores Transactional website @ Click-and-collect App SMARTPHONE Cross-channel REVOLUTION advertising Back in 2005… In 2016… Late and defensive entry Online and offline in e-commerce to avoid market customers are the
Slide 9: Growing interconnection between internet and physical retail
GROWING INTERCONNECTION BETWEEN INTERNET AND PHYSICAL RETAIL Fear of showrooming Capitalising on webrooming behavior Browsing products in store Buying items in store and purchasing online after researching online ONLINE BROWSING IN-STORE BROWSING Price comparison Immediacy Customer comments Product
Slide 10: Customers use smartphones to prepare purchase
CUSTOMERS USE SMARTPHONES TO PREPARE PURCHASE How smartphone owners are using their mobile devices for pre-shopping activities(1) 58% 57% 44% 44% 43% Find location Look up Make price Look for deals Browse or get directions store hours comparison the Internet 32% 31% 31% 30% 19% Find where specific L
Slide 11: Even online shoppers still prefer physical stores
BUT EVEN ONLINE SHOPPERS STILL PREFER PHYSICAL STORES! To the question “Which method do you prefer most for making purchases ?” 23,000 online shoppers around the world answered: Grocery 72% 20% 4% 5% Clothing 53% 37% 6% 3% & footwear Jewellery 50% 31% 5% 15% & watches In-store Online Others Do not r
Slide 12: Abundant offer of e-commerce websites
ABUNDANT OFFER OF E-COMMERCE WEBSITES… In 2015 715,000 e -commerce websites in Europe! (1) How to find the right one? (1) Source: Fevad 10
Slide 13: Composed of many very small players
… COMPOSED OF MANY VERY SMALL PLAYERS In France +100,000 e-commerce websites in 5 years (1) … But 67% of them don’t reach €30,000 in annual turnover (1) … While 0.5% of e-retailers represent 70% of digital retail turnover! (1) (1) Source: Fevad 11
Slide 14: Only very large online players can emerge
ONLY VERY LARGE ONLINE PLAYERS CAN EMERGE Top 10 favorite retail brands(1) 1 Amazon Online pure-player 1 dm Physical retailer 2 Picard Physical retailer 2 Amazon Online pure-player 3 Yves Rocher Physical retailer 3 IKEA Physical retailer 4 Grand Frais Physical retailer 4 Thalia Physical retailer 5 D
Slide 15: Digital Retail: From Threat to Opportunity
DIGITAL RETAIL: FROM THREAT TO OPPORTUNITY 1. NEW TRENDS IN DIGITAL RETAIL 2. THREE KEY CHALLENGES FOR DIGITAL RETAIL 3. OPPORTUNITIES FOR UR SHOPPING CENTRES 13
Slide 16: Three key challenges for digital retail
THREE KEY CHALLENGES FOR DIGITAL RETAIL Difficulty to raise Low loyalty Competition awareness in a fiercely on price and acquire competitive and convenience customers environment 14
Slide 17: Difficulty to raise awareness and acquire customers
DIFFICULTY TO RAISE AWARENESS AND ACQUIRE CUSTOMERS Main barriers to entry in e-commerce: credibility / reputation Need to raise awareness and build reputation through huge marketing expenses Advertising Referencing (43% of marketing spending in 2015 of digital retail brands(1)) Marketing budget as
Slide 18: Even Amazon fights hard to recruit
EVEN AMAZON FIGHTS HARD TO RECRUIT N°1 in sector N°1 in sector Global scale Global scale Marketing budget: $5.3 Bn Marketing budget: $1.8 Bn Amazon spends 3 times more than Apple! 16
Slide 19: Going offline to recruit
GOING OFFLINE TO RECRUIT Lots of online ads pushed to the customer, but Not to the right person Not at the right place Not at the right moment Low efficiency due to low contextualization Brands diversify the media on which they advertize to favor more contextualized advertising Netflix on Digital Dr
Slide 20: Online retailers compete on price and convenience
ONLINE RETAILERS COMPETE ON PRICE AND CONVENIENCE Main influencers for buying online(1) Convenience & efficiency Price #1 #2 Products are always available, 24/7 Easier to compare and find the cheaper product 35% 43% 43% 47% FRANCE 47% 56% GERMANY 51% POLAND 48% SPAIN 9% 7% 6% 9% I buy online because
Slide 21: Most products sold online are functional
MOST PRODUCTS SOLD ONLINE ARE FUNCTIONAL, WITHOUT ANY EMOTIONAL LINK WITH THE CUSTOMER #1 #2 #3 Amazon top 3 sales in France Amazon top 3 sales in “Men’s Fashion” Amazon top 3 sales in “Women’s Fashion” products in France products in France #1 #2 #3 #1 #2 #3 (1) Source: Amazon, May 2016 19
Slide 22: Create engagement and loyalty in a fiercely competitive environment
CREATE ENGAGEMENT & LOYALTY IN A FIERCELY COMPETITIVE ENVIRONMENT Customers placing at least N orders in their first year(1) 100% 32% 17% 11% 8% 6% Number of orders 1 2 3 4 5 6 (1) Sources: 2015 Ecommerce Buyer Behavior, RJ Metrics 20
Slide 23: We believe in physical retail: Customer experience
WE BELIEVE IN PHYSICAL RETAIL CUSTOMER EXPERIENCE 21
Slide 24: Digital Retail: From Threat to Opportunity
DIGITAL RETAIL: FROM THREAT TO OPPORTUNITY 1. NEW TRENDS IN DIGITAL RETAIL 2. THREE KEY CHALLENGES FOR DIGITAL RETAIL 3. OPPORTUNITIES FOR UR SHOPPING CENTRES 22
Slide 25: Destination shopping centres: large audience
DESTINATION SHOPPING CENTRES: A MEDIUM LIKE NO OTHER LARGE AUDIENCE ~800 Mn visits a year 58 Mn Individual customers 23
Slide 26: Destination shopping centres: large potential customer base
DESTINATION SHOPPING CENTRES: A MEDIUM LIKE NO OTHER LARGE POTENTIAL CUSTOMER BASE 82% of total awareness in the 0-30 min catchment area A potential of 53 Mn additional customers 24
Slide 27: Destination shopping centres: high potential to recruit
DESTINATION SHOPPING CENTRES: A MEDIUM LIKE NO OTHER HIGH POTENTIAL TO RECRUIT Net Promoter Score from +7 to +16 in 5 years 25
Slide 28: A qualitative direct audience
DESTINATION SHOPPING CENTRES: A MEDIUM LIKE NO OTHER A QUALITATIVE DIRECT AUDIENCE: PEOPLE SPENDING TIME… AND BUYING Average Conversion dwell time 62 min 83% 26
Slide 29: Direct access to the end customer
DIRECT ACCESS TO THE END CUSTOMER What the landlord – tenant – customer relationship used to be: Unibail-Rodamco Tenant Customer What it is today Customer Unibail-Rodamco Tenant 27
Slide 30: How to convert an anonymous visitor into a qualified customer?
HOW TO CONVERT AN ANONYMOUS VISITOR INTO A QUALIFIED CUSTOMER? Pain point killer Desirable services services Systematic creation of personal accounts of our users through Individual and qualified information on each user of these services 28
Slide 31: 3 main pain points of visitors identified and addressed
3 MAIN PAIN POINTS OF VISITORS IDENTIFIED AND ADDRESSED Identified Services offered Learning more pain points to kill them about our customers Your app automatically Finding one’s way Frequency Smart Park memorizes the location is stressful of your car and duration of stay Shopping Find your friends
Slide 32: What have we learned from our first initiatives?
WHAT HAVE WE LEARNED FROM OUR FIRST INITIATIVES? 60% of our customers connect to our Apps using their social network account Meet My Friends Smart Park Products Click & Services catalogues What do they like? What transportation means Which products are they looking for? Which types of products do th
Slide 33: Deploying partnerships to increase reach of our services
DEPLOYING PARTNERSHIPS TO INCREASE REACH OF OUR SERVICES Click & Services: Receive parcels in our centres, test our products and, if not satisfied, return them to the online retailer Success factor Developing the right partnerships… … Through which we introduce new retailers in our shopping centres
Slide 34: Deploying partnerships to add new types of desirable services
DEPLOYING PARTNERSHIPS TO ADD NEW TYPES OF DESIRABLE SERVICES Partnership with on Click & Eat Collect without queuing @ OR Open Select a restaurant Order and pay your App in the shopping centre through the App Choose delivery by local partner 32
Slide 35: Deploying partnerships with startups to explore new concepts
DEPLOYING PARTNERSHIPS WITH STARTUPS TO EXPLORE NEW CONCEPTS Identify startups in relevant fields Implement relevant initiatives Amano makes mobile apps. Progressive apps. This means apps that don’t need to be downloaded. Users don’t need to go to an app store to get them Select the best Learn mutua
Slide 36: Improving our infrastructure and organization to support digital effort
IMPROVING OUR INFRASTRUCTURE AND ORGANIZATION TO SUPPORT OUR DIGITAL EFFORT WiFi system 100% of our shopping centres, and upgrading Beacons 30 centres equipped today, 41 by end-2016 Content Management System Just deployed Data Management Platform By end-2016 Improve in-house digital skills Ongoing r
Slide 37: Digital: an opportunity to enhance our business model
DIGITAL: AN OPPORTUNITY TO ENHANCE OUR BUSINESS MODEL Toison d’Or, Dijon
Slide 38: Enhance our business model thanks to data
ENHANCE OUR BUSINESS MODEL THANKS TO DATA 1 Better understanding of customers’ needs for more business opportunities 2 Better operate our assets 3 Grow our audience and gain market share 36
Slide 39: Enrich customer knowledge
ENRICH CUSTOMER KNOWLEDGE Collect information and extrapolate KPI… Dwell time Frequency … etc Origin of customers Meet My Smart Park Click Counting Distinguish crossing / commuters / unique Friends & Services system visitors… … To improve our customer understanding and create business opportunities
Slide 40: Optimize operations: understand drivers of brand appeal
OPTIMIZE OPERATIONS: UNDERSTAND DRIVERS OF BRAND APPEAL Retailer cartography of a jumbo asset Main output: Shop front traffic Shop front conversion rate Shop front traffic in k visitors 1,000 Destinations High traffic & high 800 conversion rate 600 Mitigating information dissymmetry with retailers 4
Slide 41: Optimize operations: better merchandising mix
OPTIMIZE OPERATIONS: UNDERSTAND DRIVERS OF BRAND APPEAL Better merchandising mix: Enrich understanding of retailers interaction to set proper diagnosis and define right activity at the right location Less cold areas Better footfall spread 39
Slide 42: Grow our audience and gain market shares
GROW OUR AUDIENCE AND GAIN MARKET SHARES 1 Increase customer knowledge Qualified data Higher footfall Better offer and services FOOTFALL drives SALES 3 2 Increase Increase recruitment satisfaction and loyalty Higher NPS 40
Slide 43: www.unibail-rodamco.com
unibail-rodamco www.unibail-rodamco.com