Article

21.09.2017

How will retail stores look in the future?

Many commentators predicted that the advent of online shopping would spell the demise of the bricks-and-mortar store.

However, physical shops are still very much alive, though the rise of e-commerce has forced them to re-think their approach.

Over the next few years, the role of the retail store is likely to be redefined, improving the way they work through the application of new technologies.

Between the growth of online shopping, the appearance of futuristic stores without sales assistants, such as Amazon Go, and the introduction of robots, it’s clear that the retail business is in a radical transition phase right now. And over the next few years there is little doubt that the shop as we know it is set to undergo a profound transformation. However, if you want to predict what’s coming in the future it’s often useful to take a look into the past.

The retail business has seen three major innovations in recent years. The expansion of the drive-through phenomenon, which originated with fast food outlets in the United States some 50 years ago, to grocery stores, saw the foundation in France over a decade ago of the pioneering Chronodrive, which enables customers to order online and then drive to the store to have their groceries packed in the car boot while they remain at the wheel.  Meanwhile back in the US, Amazon set up two Amazon Fresh Pickup grocery outlets this year, with retail giant Walmart following suit in Oklahoma City.  The second phenomenon has been the come-back, in opposition to the hypermarkets and ‘shopping malls’, staged by local shops where customers can make their purchases without having to take their car along and then search between endless rows of shelves. The third revolution has been the rise of online shopping, which began in the apparel and electric appliances segments but has since spread to groceries and fast-moving consumer products, as illustrated by the Amazon Fresh concept. 

Re-thinking the role of the bricks-and-mortar store

Matthieu Jolly, Service & Innovation Manager at the Echangeur, an Innovation meeting-point run by BNP Paribas Personal Finance, underlines that this triple revolution has been driven by the retailers’ desire to adapt to the changing expectations of their customers, notably for greater efficiency.  “The customer wants to save time,” he points out, adding: “However, this new reality raises a fundamental question: if nowadays the customer wants to spend as little time as possible inside shops, what are the shops going to do about it?” Does that mean they’ll simply disappear? Jolly argues instead that sales outlets will have to introduce new formats and take an approach that goes beyond the purely utilitarian, with three main areas for improvement. “The first is about turning the shop into a venue for new experiences, a place where you can be amazed, where you can have a good time,” he says. This might well mean giving customers greater freedom. For instance, the Nike store in the SoHo neighbourhood of New York City offers customers the chance to try out its gear in realistic situations, shooting a few basketball hoops or going into a full sprint. Similarly, US store Pitch, which specialises in luxury furniture and appliances, everything in the shop can be tested out – for example taking a shower or drying your hair on the premises.

Another option involves using Virtual Reality (VR) and Augmented Reality (AR) technologies. Given that the cost of these technologies is still rather high for the general public, brands will be able to vaunt their dramatic effect, offering customers a truly immersive experience. For instance, during a promotional campaign in Autumn 2015, The North Face store in Seoul, South Korea rolled out an initiative whereby it invited customers to sit on a dog sled, put on an Oculus Rift headset and experience for a few moments the life of a ‘musher’, being pulled through a snowy landscape by huskies. In the meantime, a sales assistant attached real live huskies to the sled, and when the customer took off the headset the dogs took off on a real race through the store. Similarly, in November 2016, Chinese e-commerce giant Alibaba invited its customers to put on a VR headset and be teleported to Macy’s store in New York. This kind of dramatic spectacle gives stores a ‘raison d’être’, creating a meeting-point where you can have new, fun experiences. “We’re moving from a transactional mode to an approach based on experiences,” explains Nicolas Diacono, Digital Project Manager at the BNP Paribas Personal Finance Echangeur.

A place for interaction and socialising

The second area for improvement actually goes in the opposite direction, concentrating on what is unique about shopping in a bricks-and-mortar store – i.e. the material aspect, the customer’s ability to see and touch. “A store is also a place where you go to get hands-on contact with a product, to feel how it works,” Jolly underlines. He does not think that the general public has yet been entirely won over by e-commerce. Retail stores therefore still have a strong hand to play if they focus on their specific features. The recently-announced partnership between US startup Casper and nationwide discount retailer Target is a telling move. The hypermarket chain has invested $75 million in Casper, a high-end, exclusively online, direct-to-consumer mattress business. As a result of Target’s financial injection, Casper’s mattresses can now also be bought at Target hypermarkets. Despite enjoying fast growth, Casper has struggled to attract buyers beyond a rather select circle of people who are happy to buy expensive items online without first trying them out. Partnering with Target opens the door to a wider potential clientele, while Target benefits from having attractive products at its premises. Customers like to try them out in-store, and they now have a reason to go to the Target store to do so. Similarly, French home appliance and multi-media store Boulanger is setting up areas within its stores where customers can try out all its products.

The third area for development is turning the store into a place for interaction and socialising. “Many people go shopping as a way of getting out of the house. Shopping malls in the United States are now widely used as a place where young people can meet up,” points out Matthieu Jolly. Amazon showed that it has fully understood this phenomenon when it acquired natural and organic food company Whole Foods Market, a brand known for its community feel and its pleasant stores where people enjoy walking around, up and down the aisles. 

However, making customers feel welcome isn’t enough, you also have to teach them something", argues Jolly. Carrefour’s store in Villiers en Bière, in the Greater Paris region, now offers classes in cooking, wine-making and make-up. 

Meanwhile French postal service La Poste provides premises for would-be drivers to take the written part of their driving test, and other companies are setting up co-working facilities. 

The Virgin Megastore in London has combined these three trends. Customers are hailed in the street by a hologram of Richard Branson, and then welcomed inside the stores by hostesses. They can then go downstairs where they’ll find a bar, a café, a piano, a relaxing space with armchairs, TV screens, and even a real-life Virgin Atlantic business premium cabin where they can watch the sky go by through the porthole windows. Children can play on the consoles at the video games space. You can even rent part of the premises for events, and every Friday evening a film is screened.

More efficient, better-managed stores

The store of the future will therefore play a different role from the one we know today and will moreover provide customers with a more efficient shopping experience. In the medium term, there will no doubt be many AR-based experiences on offer. Using a future version of Google Glass or the Oculus headset, tomorrow’s consumers will be able to navigate around the supermarket aisles and see the products they are interested in highlighted in front of them. These might be food items corresponding to a diet – vegetarian, gluten-free, stone-age diet, and so on – or the products they need for a cooking recipe, suggested by their personalised virtual assistant, depending on what they already have in their connected refrigerator. Also highlighted might be the wines that go well with the dish a customer intends to cook. “We’re entering the era of ambient shopping, where everything will be interactive,” predicts Nicolas Diacono, who sees the advent of this technology in ten to fifteen years’ time.

Yet another area for potential improvement is the checkout process. “The checkout queue remains today the least enjoyable part of the in-store experience. Streamlining this process, reinventing the payment procedure, will be one of the most important innovations,” stresses Nicolas Diacono. This means allowing customers to leave the shop without first having to go through the checkout. The items in their trolley would be recognised and tallied up on the customer’s smartphone app. Says Diacono: “This is for instance what Amazon is aiming for with Amazon Go, but the technology isn’t yet sufficiently mature. The costs are still too significant for this to be a profitable approach for a shop.” So the right system still needs to be developed. Explains Matthieu Jolly: “There already exists a technology that enables a retailer to automatically recognise the items in your basket when you pass the checkout – RFID, which is used by for example Nespresso. So it’s technically feasible to scan your selected articles, pay with your smartphone and leave the shop. However, for this to work, all the products on sale would need to be fitted with an RFID chip, which is still far too expensive for all the items purchased at a grocery outlet.

Lastly, the store of the future will be optimally organised through the use of advanced technologies. It will be equipped with robots set up to answer basic questions – this is what Pepper does already – or to direct customers to the products they are looking for, while human sales assistants focus on giving more sophisticated advice and on building the customer relationship. Robots will also no doubt have a role to play at the store’s warehouses. Supplying and restocking will be made easier through the use of AI and image recognition technology. As they move along the shelves, robots will be able to scan products and identify those that are out of stock, a task that could equally be carried out by connected trolleys equipped with cameras. Overall, sophisticated data management will enable retailers to get a better grip on what lies ahead. Nicolas Diacono foresees: “The store will be optimised by drawing on a threefold data input based on the customer’s needs, the environment – i.e. the weather, events that are taking place in the town, etc. – and the store itself. They will thus be able to make more accurate stock forecasts, taking into consideration seasonal factors, and will therefore be more efficient at restocking. A Decathlon store would for example be able to predict three or four days in advance how many bicycles it will sell during the coming weekend.”. So at the end of the day, this well-established social institution that we know as a ‘retail store’ still appears to have a bright future.

Source: L’Atelier

Article

31.05.2021

Optimise your working capital with factoring

How can you keep your working capital healthy while incorporating the requisite financial flexibility? Factoring helps you to finance your cash requirements in a proper, timely and suitable way.

Securing liquidity is the key to financing your working capital requirements and keeping your business running smoothly at all times. That's exactly what factoring offers.It is a structural solution for optimising working capital. In the video below (in Dutch) in less than half an hour you will gain a clear picture of what factoring has to offer.

If you prefer to watch the video in French, click here.


Factoring: a tailored structural solution

In exchange for transferring your invoices to an external factoring company, you can count on fast, flexible financing, monitor the collection of your invoices, and protect yourself against potential bankruptcy among your customers. Each factoring solution is tailored to fit the needs of your business. This includes companies operating at international level. In Belgium, one in six companies currently outsource their invoices to an external factoring company. The same trend is evident in other European countries.

Do you have any questions, or would you like to discuss how factoring can help you? Contact your relationship manager or send us your details via the contact form and we will get in touch with you.
Article

27.04.2021

Will you be Entrepreneur of the Year 2021?

Will you succeed Stow and I-care as the Entrepreneur of the Year for 2021? Why shouldn't you? Apply before mid-May and your company may just win this prestigious award.

A dazzling event honoring the very best companies

This annual award ceremony is an EY initiative in collaboration with De Tijd and BNP Paribas Fortis. Last year the event had to be celebrated online. The advantage was that the general public was able to live stream the event and watch Prime Minister Alexander De Croo present the Onderneming van het Jaar® award to Stow and Entreprise de l'Année® award to I-care. Jan Jambon presented the Flemish government's Scale-up of the Year award to Robovision and David Clarinval the French version tot Proxyclick. The new winners will be announced on 6 and 7 December, 2021.

Big picture and little picture

The coronavirus pandemic is still affecting businesses this year. The new Entrepreneur of the Year and Scale-up of the Year will have undoubtedly shown excellent growth, innovation and governance as well as a sound approach to the pandemic. Bill Schley's book The Unstoppables calls this the big picture and the little picture. Successful entrepreneurs always keep a close eye on their core business and the financial side of things as well as on the little picture. This is the right emotional mechanism for properly dealing with obstacles, failure and risks.

From an entrepreneurial viewpoint

Didier Beauvois, Head of Corporate Banking at BNP Paribas Fortis, is proud that his company has been a partner of this event right from the start. “Alongside the current pandemic, two major challenges that businesses have to address in 2021 are new technologies and sustainability. Companies that want to remain relevant need to be flexible and creative and must keep reinventing themselves. Our mission is to guide them through this transformation process in the best way possible, because those entrepreneurs are the driving force behind the Belgian economy. Therefore, we like to put these innovators in the spotlight every year and is why we encourage Belgian companies to apply."

Why take part?

Winning the Entrepreneur of the Year award or Scale-up of the Year award offers your company many benefits. These awards have a strong national and international reputation that will help you to strengthen your company's brand awareness. The awards ceremony attracts a great deal of media interest in the winners and finalists, and offers excellent networking opportunities. A place in the finals is also a great way to boost employee motivation at your company.

So don't wait any longer: apply for the Onderneming van het Jaar® 2021 award, Entreprise de l’Année award or Scale-up of the Year award via the Dutch EY website or the French EY website before mid-May. All information on the criteria, selection procedure and registration process are available there. The finalists will be selected in June.

Article

27.04.2021

Our bank's experts help advance energy transition via Solar Impulse Foundation

Two specialists from our bank are among the top experts in this international foundation, which collects profitable solutions for a faster transition to sustainable energy.

Sustainability has been an important pillar for our bank for many years. For example, we have been carbon neutral since 2017, accompany companies in their energy transition and support start-ups and organisations that work with renewable energy. The Solar Impulse Foundation therefore has been benefiting from the sponsorship of the BNP Paribas Group from its inception.

Reconciling ecology and economy

The Solar Impulse Foundation was founded by the Swiss psychiatrist and pioneer, Bertrand Piccard, who makes it his life’s mission to demonstrate the opportunities of sustainable development. In 1999, he was the first to make a non-stop balloon journey around the world and, in 2016, he completed that journey again with a solar-powered aircraft. Since then, Piccard has used his popularity to publicise solutions that can protect the environment profitably. The ultimate goal? Motivate decision-makers and companies to set more ambitious environmental targets and better energy policies in order to achieve carbon neutrality.

1,000 sustainable solutions

Four years ago, Solar Impulse Foundation announced that it was looking for 1,000 sustainable solutions worldwide to accelerate the energy transition. That unique portfolio of solutions should then become an essential part of all environmental decisions, debates and political negotiations. Specifically, these are solutions that companies already have or will introduce to the market and that are economically profitable and technologically feasible, but do not yet have the visibility they deserve.

The targeted 1,000 solutions were reached on 13 April 2021. But because innovation never stops, the Foundation continues to add solutions.

Expertise from our bank

To gather as many innovative solutions as possible, the Foundation receives help from many partners and an extensive pool of more than 300 experts from companies around the world. Since any company may present its product on the Foundation’s website, these experts must assess the registered solutions objectively and in detail in three areas: profitability, environmental impact and technical feasibility. For a few years now, BNP Paribas Fortis employees have also devoted themselves to this task.

Quentin_Nerincx_2

One of them is Quentin Nerincx, Senior Advisor Cleantech at our Sustainable Business Competence Centre, who advises companies on becoming more sustainable. “I didn't hesitate to apply," says Quentin enthusiastically. “It’s an exciting project with a wonderful and ambitious goal. Every month, the Foundation sends me a file for analysis. Each solution is studied by two different experts and, if they both make a positive judgement, the solution is labelled by the Solar Impulse Foundation. This quality feature can help to accelerate the implementation of the proposed solution - for example, a new technology or a product.” 

Gunther_Brems

Gunter Brems, Sustainability Expert Housing & Sourcing Services, also lends his expertise: “It is an honour to be part of this prestigious project. I have assessed several files in 2020, which was an enriching experience not only to share knowledge but also to acquire new knowledge. It is great to see how innovative some companies are dealing with a changing world, just as our bank does, and how to look for sustainable alternatives together.”

 

Helping our corporate customers with their energy transition

“This project is also interesting for my job as a sustainability advisor at the bank, because I keep up to speed on new solutions that are being developed worldwide. This allows me to expand my expertise continuously and to contribute broadly to corporate clients looking for solutions for their energy transition", adds Quentin.

At the end of last year, Quentin was informed that he is one of the top 20 experts providing expertise to the Solar Impulse Foundation. Gunter even made it to the top 10. These rankings are mainly based on the number of solutions analysed and the quality of the reports. “We are delighted that our input is appreciated”, the two experts say.

Government guides

The collection of more than 1,000 approved solutions can be found on the Solar Impulse Foundation website. This summer, the Foundation is also publishing a Solutions Guide that will enable governments, companies and individuals to find and implement concrete solutions on a large scale. With this tool, everyone can find solutions to problems in specific geographical, industrial or financial environments in just three clicks.

The Foundation will also provide various public authorities with a Cleanprint, a kind of report and plan for governments and companies to achieve their climate goals using the solutions collected, in accordance with the Paris Climate Agreement. The report will also indicate where public authorities can modernise their legal frameworks for the ambitious implementation of these solutions. The first Cleanprint will be presented by Bertrand Piccard at COP26 Climate Summit in Glasgow in November 2021.

Jean-Laurent Bonnafé, CEO of BNP Paribas: “There will be no future for society without a successful, long-term energy transition. This transformation can only be undertaken collectively and requires technical and technological service solutions. In taking up the challenge to select 1,000 solutions which encourage environmental protection while also being profitable, the Solar Impulse Foundation is helping us to reach this goal in a very practical way and in line with the aims of the Paris Agreement.”

Seeing that the solutions collected are actually followed up by government leaders and other decision-makers will be the crowning glory of our work", conclude Quentin and Gunter.

Need advice on how to make your business more sustainable?
Contact our experts at the Sustainable Business Competence Centre
Article

25.02.2021

How can the blue economy make a difference?

What if the future of sustainable business is at the bottom of the ocean for once? Marine biodiversity contains resources that can meet the environmental challenges of many sectors. Perhaps yours, too. Find out more during an online event about the promising blue economy on 11 March 2021.

Blue is the new green

71% of our planet consists of water. Seas and oceans play a crucial role in our climate, and coastal areas can capture up to five times more CO2 than tropical forests. The blue economy wants to benefit from all these advantages to improve both the environment and our well-being,

With local being the keyword. And that's where the difference lies with the green economy, which also focuses on the environment and health, but not always in such a sustainable and smart way. Eating organically grown quinoa from Ecuador, for example, is healthy and eco-friendly, but transporting it here is expensive and creates high amounts of pollution.

Offshore sustainability

What does the underwater world have to offer that can be reused, recycled or converted into new sustainable products? A lot, it turns out, as the unique properties of organisms such as algae, starfish, jellyfish or sea cucumbers can be transformed into sustainable products with high added value. This is a process that requires creativity and innovation, and is already with us today.

For your sector, too

The blue economy is expanding rapidly and could bring about a revolution in a wide range of sectors such as healthcare, food, the plastics industry, cosmetics, energy and even aerospace. It is fully capable of helping companies transform their traditional activities into a sustainable model. And in Belgium's ports, the country already has a huge advantage and excellent access to coastal and offshore areas.

Another scoop of microalgae?

Microalgae, for example, offer a lot of promise, as they can renew themselves and thrive both in the desert and in the ocean. They contain many healthy components, such as proteins, that can be used to develop food products.

Sustainable plastics

When discussing the oceans, the plastic problem is never far away. Human beings are producing more and more plastic as the world's population grows, yet the problem with the existing plastic is that it's nigh on impossible to recycle as its components are hard to separate. By making a completely different type of plastic from biomass, its recycling is already considered at the design stage. A large amount of biomass remains unused in the oceans, and using smart, natural polymers could revolutionise plastic production, for example. These polymers are capable of self-renewal and can adapt to their environment.

Who will pay for it?

Great ideas, you think, but who will pay for them? The financial sector certainly wants to play a role in this revolution and is prepared to take risks and invest in new technologies, production systems and R&D.

This commitment was formalised in various ways during the climate week in New York at the end of September 2020. BNP Paribas signed the Principles for Responsible Banking (PRB) and joined the UNEP FI's Collective Commitment to Climate Action, a partnership between the United Nations Environment Programme and the financial sector. In terms of the maritime sector, the Bank committed to working with customers to preserve and sustain the oceans. Read more about this commitment here (only available in French).

Would you like to find out whether the blue economy could make a difference to your sector?
Sign up here for a free online event on this subject on 11 March 2021 (in English only), organised by BNP Paribas Fortis Transport, Logistics and Ports Chair.

Several experts will share their insights, while our experts from the Sustainable Business Competence Centre will also take part. They can advise you on innovations and guide you through your sustainable transition. Feel free to get in touch.

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