How Leclerc collects Nutri-Score on all products thanks to Alkemics?

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par Emilie Schaefer17 December 20200 commentaires

How Leclerc collects Nutri-Score on all products thanks to Alkemics?

In France, retail groups and the FMCG industry have already taken a step forward in Nutri-Score labelling on packaged food. This is because France has already successfully introduced Nutri-Score on a voluntary basis in 2017. For politicians, retailers, and the FMCG industry, this is due to the changing habits of consumers who want more information about food.

E.Leclerc demands Nutri-Score on all products 

According to the study Food Transparency by OpinionWay and Alkemics from 2019: 83 percent of shoppers look for information before buying a product. At the same time, however, more than 60 percent of consumers perceived the labels on products as incomplete, not precise and transparent enough. This is one of the reasons why the French retail company E.Leclerc has committed itself to making the Nutri-Score visible on all products. The retailer has started this process with its private-label products.

For E.Leclerc, up-to-date, consistent and accurate product data are an important factor in this process. In the past, the French retail primus had issues collecting product data from thousands of suppliers and to provide them consistently, always up-to-date and without mistakes. Due to their poor quality, the data often had to be enriched in a time-consuming process. In order to solve this critical problem in the long term, E.Leclerc now relies on the Alkemics solution.

Within only six months, the retailer has managed to get 2,000 suppliers of all company sizes to consistently provide their product and price information on the Alkemics platform, even those who are still in the early stages of digitising their processes. The manufacturer fills in more than 150 fields for each product.

The Nutri-Score-Label can be automatically identified for each individual product in the Alkemics platform and shared directly with the retailer. In this way, Alkemics also helps small and medium-sized manufacturers to calculate the Nutri-Score. 68 percent of all brand manufacturers included in the Alkemics platform use the field Nutri-Score and share this information with E.Leclerc. In this way Alkemics helps the French retail primus to achieve its goal of labelling all products with the Nutri-Score. For the shopper in E.Leclerc’s physical and online distribution channels, this will create real added value through transparency in food selection.

“Best Solution Enterprise” Award by EHI  

March 8th 2021, RETA Awards

In the wake of E.Leclerc’s implementation of Alkemics to collect Nutri-Score from all brand manufacturers, EHI rewarded both of us with the “Best Solution Enterprise” Award – as one of the RETA Awards 2021 winners!

Alkemics is proud to be granted the TOP SUPPLIER RETAIL 2021 label

Contact Alkemics for more info

Nutri-Score also boosts other French retailers 

In addition to E.Leclerc, 12 other French retail companies collect Nutri-Score data from their suppliers using the Alkemics platform. As soon as a desirable Nutri-Score becomes visible to the consumer when shopping in a physical store or online shop, this boosts sales, a Nielsen study shows. If manufacturers can show a Nutri-Score in the range of A and B on their product, this will increase sales: by 1,0 percent, with a score of A and by as much as 0.8 percent with a score of B.

The positive impact on the turnover of a product with a desired Nutri-Score is even higher in e-commerce than in physical shops, proves another Nielsen study. This will further motivate the FMCG industry and retail groups to produce healthy products and should further boost the use of the nutrition label in France and Germany.

Full article - Retail Optimiser

Data exchange: how data sharing needs to be “parallelized”

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par Emilie Schaefer6 July 20200 commentaires

Data exchange: how data sharing needs to be “parallelized”

Life used to be easy... Let’s just say that life had sequences, order, and clear outlines, with time for each different step. Suppliers were first chosen by retailers, then entered into negotiations, with products being listed at the end of the process. Almost a ritual, this procedure enabled each person to complete a specific set of tasks. However, the past few years have seen this process become increasingly complex, and step by step, they have started to find it constraining.

Unsurprisingly, this is due to changes in the business world and the development of new channels. This transformation affects every department:

  • Supply teams now need additional data to optimise their warehouse operations (stacking information, safety notices, etc.)
  • Marketing teams have begun to develop advertisements that require new types of information to be shared (images, pictograms, etc.) These ads are now weekly, and are regionally or even locally-focused, and have recently even become personalised.
  • CSR and quality teams have been assembled to address consumer expectations. They are developing increasingly detailed requirements, requiring new data to be exchanged (specifications, hygiene certifications, licenses, etc.) This is occurring even faster due to an increasingly strict regulatory context (in terms of allergy information, composition, etc.)
  • Category managers have had to reorganise their operations to adapt to an increase in the number of product launches, as well as shorter and shorter product lifecycles.
    Moreover, the internet has shaken up the status quo. Online product listings have led to the need for new elements such as such as visuals, descriptions, view angles, and synonyms, a need that is often managed on an ad-hoc basis by e-commerce teams.
  • Stores have started taking an interest in digital technologies, launching screens, electronic labels, and more recently, tablets. Each of these require a great deal of product content (such as user guides, tips, etc.) in order to provide comprehensive information to collaborators and consumers.

In addition, consumers themselves have changed. And quickly! Consumer preferences have evolved — and continue to evolve — meaning retailers need to search more actively for new products in order to add variety to the product range.
An undeniable consequence of this complex new landscape is that products’ time to market has become excessively long: up to 120 days for certain retailers. Nonetheless, other retailers have stated they are able to achieve this in a mere 2 days, with some pure players even stating that they can list 1 million products per week. This gap is a clear example of how the existing sequential operational method is no longer adapted to, and does not address, these new challenges.

Of course, teams at both manufacturer and retailer companies are already aware of this. Some have begun to parallelize tasks using an empirical approach, without completely overhauling the entire process. Others have tried a different strategy: collecting all the necessary data at once. This can present challenges, as certain content (like visuals for a pack created for an event) doesn’t exist prior to the product being listed. All of these approaches have led to the same result: a significantly longer time to market, which is unsustainable in a market landscape centered on new innovations.

In order to reduce the time to market while addressing both consumer needs and regulatory requirements, a new collaboration strategy is needed, based on a parallel – rather than sequential – approach to tasks. Especially because communications have increased among teams who, up until recently, rarely spoke to one another. 

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This saga is based on our Supplier Relations 3.0 white paper which analyses retail transformation and propose some insights on organizational models to answer to the new challenges of this industry.


Data exchange: New expectations for data sharing in retail industry

THE LASTEST NEWS ABOUT ALKEMICS

par Emilie Schaefer19 June 20200 commentaires

Data exchange: New expectations for data sharing in retail industry

From consumer expectations and regulatory requirements to new applications, data plays a role in addressing each new challenge. In terms of data managed on its own platform, Alkemics has seen a 16% increase in the number of suppliers per year, a 30% increase in products per year and a 20% increase in data per year, a 66% increase in data volume per year, sourced from an ever-increasing number of collaborators.

The result: Retailers, both in their roles as collectors and producers of data, accumulate a “debt” in the product data they require to meet consumer needs.
This is further amplified by a sharp increase in the number of local products. These days, local products sometimes outnumber those from national brands and own-brands combined. In order to develop and market a product range that is is consistent across all channels, including at a local scale, retailers need to collect high-quality product data. Own-brand products are included in this: these need to offer exemplary levels of transparency regarding production methods in order to provide consumers with all of the information they need.
This is just one aspect of the “data shock” that mass-market retailers are encountering. One example is the extensive offering of marketplace Alibaba, and the abundance of product information provided by its food subsidiary, Hema Fresh.
Referring to this phenomenon as “data shock” is not an exaggeration. The growth of data, as well as its extreme importance for the entire product lifecycle and sales cycle, is transforming collaborator needs, timelines, professions and the very nature of the supplier-retailer relationship.

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This saga is based on our Supplier Relations 3.0 white paper which analyses retail transformation and propose some insights on organizational models to answer to the new challenges of this industry.


How consumers are driving retail transformations: More quality

THE LASTEST NEWS ABOUT ALKEMICS

par Emilie Schaefer4 June 20200 commentaires

How consumers are driving retail transformations: More quality

We tackled it in our 2 first articles of this saga, data is fuelling operations throughout the entire company and it proves to be a challenging resource to manage. With data in high demand, it is not only the amount of data that is important, but also its quality.

Data quality directly affects the user experience

Discrepancies in product data across different channels, such as differences between product packaging displayed online and in-store or nutritional information on a product’s packaging that contradicts the information in a consumer app, can lead to the loss of both sales and consumer trust. Data needs to be consistent, whether on store shelves, e-commerce sites, or apps. This consistency can no longer be considered simply “nice to have” — it’s become an essential prerequisite for effective customer relations, in a context where consumer journeys are a blend of the offline and online interactions.

Data quality plays a key role in addressing traceability and regulatory requirements

Whether for food, household products or cosmetics, regulatory pressure in terms of labelling has increased sharply over the past few years. INCO regulations have made nutritional declarations on food products mandatory since December of 2016, and European legislation has defined specific rules for food labelling: consumers must have access to the same information online as they do in stores. The Nutri-score system, while not (yet) mandatory, also requires high-quality data.
Monitored by the General Directorate for Fair Trading, Consumer Affairs and Fraud Control (DGCCRF), it is imperative for retailers to maintain extremely rigorous standards. Since manufacturers are still the experts on their products, retailers need to work in close collaboration with them to streamline the process of sharing data as regulations become increasingly strict.

This means that data accuracy has become a key criteria for evaluating manufacturer performance, just as consequential as business competitiveness. A criteria that needs to be carefully managed over time, as well as updated regularly. The reason is clear: why list products from a commercially appealing brand if penalties due to non-compliant labelling will later cut into the margins? For example, INCO regulations include criminal penalties and fines of several hundred euros per point of sale for each non-compliant label. This risk falls on retailers, who are seen, in this case, as the providers of this information, and therefore responsible for it.

Note that the food industry is not the only sector affected by these regulations. For household cleaning products, the CLP (Classification, Labelling, Packaging) regulation was implemented gradually, before completely replacing the existing European system in June of 2015. As for cosmetics, a new regulatory framework entered into force in 2013, notably including an annual audit.

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This saga is based on our Supplier Relations 3.0 white paper which analyses retail transformation and propose some insights on organizational models to answer to the new challenges of this industry.


How consumers are driving retail transformations: More data

THE LASTEST NEWS ABOUT ALKEMICS

par Emilie Schaefer20 May 20200 commentaires

How consumers are driving retail transformations: More data

The OpinionWay - Alkemics study shows that 83% of people in France seek out information about food products. This stems from a desire to choose quality products that are better for their health, as well as those made in France when possible. How can consumers navigate and find information in an era of hyper-choice? And how can retailers rethink shopper experience in-store?

For greater transparency

One thing is for sure: they won’t necessarily wait to be in a store to seek out this information, and not all the information they need can necessarily be found there. For 64% of people in France, packaging is still the classic way to find product information. However, a new resource has emerged: consumer apps are now used by nearly 2 out of 10 people in France. These are excellent numbers for these apps, which had not yet been developed 3 years ago. The star among them, Yuka, was created in 2017, and now sees 14 million downloads and 2 million products scanned per day.

Manufacturers have become aware of the importance of sharing product information through these apps. “Our job is to assist the shopper throughout the entire customer journey, and transparency is no longer optional. This is because consumer apps are a point of contact that is seeing increasing use.” Explained Emmanuelle Orgogozo, Director of Omnichannel Development with Labeyrie Fine Foods. “We no longer ask ourselves whether or not it is necessary — it’s our job to coordinate our operations to provide the required nutritional information about our products via these apps.”

This means that complete and accurate product data is essential, not only to ensure regulatory compliance but also to attract consumers and gain their trust. Brands, well beyond the food industry, are making transparency a key aspect of their business.

For a new in-store experience

In a data-oriented landscape, stores have a greater role to play than ever. In order to differentiate themselves from pure-player competitors, these retailers need to become product experts, able to offer true added value with the advice they provide. In addition to the classic descriptive information on products, retailers also need access to manuals, technical specifications, guidelines, etc. In practice, salespeople are now facilitating an “augmented retail” environment, with a variety of digital resources at hand to support them in selling their products: catalogs, configurators, express check-out solutions, etc. These resources enable them to focus on addressing questions from consumers, who are also connected and well-informed.

Stores themselves are also undergoing transformations to create an information-rich customer experience. Among these cutting-edge new projects is “4 Casino”, featuring a series of in-store innovations that include a “wine chart” that suggests food and wine pairings when a bottle is scanned, electronic SES-imagotag labels displaying Nutri-score and quality ratings, etc.
“In our store Le 4 Casino, we have developed a concept where digital innovations serve the customer experience and new consumer needs. We felt it was essential to be able to offer a new type of product range, as well as to promote product transparency,” explained Cyril Bourgois, Director of Strategy, Digital Transformation and Innovation for the Casino Group. “To do this, electronic labels, whose data is supplied automatically via Alkemics, display both prices and information such as organic certifications, Nutri-scores, allergy information, etc. Through this new collaboration, we can also improve the efficiency of our customised marketing tools thanks to increased product knowledge.”

For new applications

Of course, data has always played an essential role in retail operations. Nowadays, all departments and processes also rely on the quality of the available data. These include:

  • Logistics: in the past, only palletising information and parcel dimensions were needed to successfully deliver products to warehouses (and prevent the goods from being returned or refused). Nowadays, various different types of information are needed: product weight for self checkout scales, along with product dimensions to optimise online order preparations, fill delivery bags, organize upstream transport (to massify transport between small producers and warehouses), parcel integrity specifications for robotic handling, etc.
  • Stores: data about exact dimensions, down to the millimetre, as well as high-quality visuals are required to create planograms in an automated manner.
  • Quality & CSR: As retailer requirements are becoming increasingly strict, it is now necessary to possess health and safety certificates, production charters, commitments regarding working conditions, information on materials and the recyclability of packaging, Bcorp and PME+ certifications, etc.
  • E-commerce: this data not only includes basic information that must provided in stores (composition, allergy information, nutritional information, origins and production methods for fruits and vegetables, fishing zones and practices, etc.) but also engaging content on the product’s origins and uses (recipes, product tutorials, etc.)
  • Customizing the product range: The objective here is to adapt in-store product ranges to local customers, as well as customising how products are displayed online based on customer buying habits and lifestyles. To do this, retailers need to base their approach on the attributes that are most important to their customers: gluten-free or organic labelling, product origin, cheese strength, shelf life of wine, etc.

All of this new data can also be used in artificial intelligence (AI) algorithms, and contribute to sustaining on overall dynamic of continuous improvement. From operational optimisation to addressing new consumer expectations, AI systems (and the data needed to operate them) has launched the “augmented retail” era. In other words, retail that has a greater ability to self-evaluate and respond to market feedback, as well as offer newer, more intelligent services. This is notably the case with automated and personalised promotions, which use an analysis of buying history and predictive models to offer the right product to the right person at the right time. Mass promotions are over!

Given that data now needs to be used in an omni-channel context with a largely automated supply chain, Casino decided to centralise their data management approach in order to ensure that the entire organisation has access to the information they need. “Product data can, and must, have a wide variety of applications within the company. It’s no longer the domain of just a few professionals. Data needs to play a role in all areas: marketing and promotions, logistics, listings, merchandising, CSR, etc. This means it is necessary to use a single tool to collect this data, then use it in an omni-channel manner, in each different context”, explained Clément Lubin, Supply Chain and Data Director with the Casino Group.

This saga is based on our Supplier Relations 3.0 white paper which analyses retail transformation and propose some insights on organizational models to answer to the new challenges of this industry.

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How consumers are driving retail transformations: more suppliers and products

THE LASTEST NEWS ABOUT ALKEMICS

par Emilie Schaefer4 May 20200 commentaires

How consumers are driving retail transformations: More suppliers and products

Whether in the interest of their own health or that of the environment, more and more consumers are seeking out information about product origins and composition, with a clear objective in mind: prioritise the most “natural” products, as well as those from short distribution channels and locally-made products.

This demand, along with a decrease in the cost of production tools, has led to a direct increase in the number of small businesses offering domestically or regionally-made products.
According to data from the French National Association of Food Industries (ANIA), small and medium-sized businesses are seeing dizzying growth. In 2013, the agri-food sector had 11 852 businesses, a figure that rose to 17 647 in 2017.

Even more significantly, very small businesses (those with a turnover below 2 million Euros), as well as small businesses (with a turnover between 2 and 50 million Euros) and medium-sized businesses (with a turnover between 50 and 250 million Euros) accounted for 70% of the growth of hypermarkets and supermarkets over the past 5 years. This contribution is even more notable in that these businesses represented “only” 21.9% of market shares in 2018. In addition, decreases in logistical costs and customs restrictions are opening the French market to more and more European and international suppliers.

The result is that the 10 businesses who saw the greatest sales revenue growth in 2019 in France includes 9 businesses with a turnover below 200 million euros. Some of the actors emblematic of this trend, Ethiquable, Novamex and Swania, saw 10% to 20% sales turnover growth.

More and more products

“For years, and despite statements made by retailers that they were looking to reduce their product range, we have observed the growth of these ranges, notably to the benefit of small brands, though the phenomenon has been slowing down over the past few months”, explained Sébastien Monard, Marketing and Communications Director at Nielsen. While retailers are indeed tending to concentrate on a “common foundation” of product ranges, stores are more and more frequently choosing to highlight what makes them unique by focusing on their local presence: very small businesses have seen their listings increase by 7%, small businesses by 9% and medium-sized businesses by 6%. Meanwhile, large companies are seeing an increase of only 3%, with increases around 1% for private labels.

 

Local products are leading these fast-growing categories — along with organic products, of course, which grew by 15.7% between 2017 and 2018, earning a global sales revenue of 9.7 billion. On retail store shelves, the number of certified organic products are increasing. Private labels, SMEs and national brands are expanding their offering by developing new organic products. Very small, small and medium-sized businesses are currently very well represented when it comes to organic products, accounting for 44% of the offering, while representing 26% of fast-moving consumer goods and self-service prepared meals. “The number of products is, nonetheless, growing faster than the sales turnover”, added Nielsen’s marketing and communications director.  

Nonetheless, it has become imperative for stores to differentiate via their product range. Food policy laws in France have made it more challenging to differentiate through pricing, so the variety of products in a range is now a key draw for customers. Especially given that the size of a product range is directly linked to store performance: the top-performing hypermarkets are those with the most products in their range. 

This saga is based on our Supplier Relations 3.0 white paper which analyses retail transformation and propose some insights on organizational models to answer to the new challenges of this industry.

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