Month: June 2014

Simon Walker (pictured) tracks the progress of the barcode since it was first adopted in June 1974.

Across the world, barcodes are an integral part of retail technology. With five billion beeps a day a familiar part of the high street shopping experience, this is one retail innovation that has stood the test of time.40 years ago, on June 26, 1974, a pack of Wrigley’s Juicy Fruit chewing gum in the US became the first item to be scanned at a supermarket checkout, a year after the retail industry adopted the GS1 barcode as a single unified standard for identifying and tracking products.

Prior to the introduction of the barcode, retail staff used label guns and the only product information it could produce was the price. While there was some resistance at first, GS1 UK, the not-for-profit company that administers the current system, claims that barcodes have improved the accuracy of product identification by a factor of 10,000 and now deliver a range of measurable benefits beyond reduced waiting time for consumers at the checkout.

Indeed, it goes on to claim that the efficiencies that the barcode has created in the supply chain have also enabled 21 per cent shorter lead times for warehouse operators, 42 per cent lower costs for distribution centres and 32 per cent fewer out-of-stocks for retailers, ultimately saving the UK retail industry £10.5 billion every year.

With branches now in 111 countries, and its standards applied in 150, GS1 now has 27,000 members in the UK alone, with 300 more signing up each month. However, 60 per cent of these new members are online retailers, requiring GS1 to consider adapting the design and function of its barcode to meet the product information demands of the multi-channel consumer.

The demands of multi-channel retail 

From stock, location and supplier data, to digital and marketing assets, retailers are faced with managing more product information than ever before, across multiple domains, countries, languages and channels. Managing this wealth and variety of information means that more sophisticated systems are needed to ensure that supply chain operations keep running efficiently.

Additionally, the growing world of multi-channel retail means that the way in which consumers are purchasing products is changing. The advent of new channels means that accurate and consistent information across consumer touchpoints is becoming ever more important. The issues for manufacturing and supply organisations are now how to maintain brand consistency and perception in order to grow revenue and drive sales.

Industry leaders, including GS1 UK, have discussed in the last year how different forms of barcodes are needed to represent these new requirements for product information. A new system could soon mean that a barcode will inform retailers about everything from package variation to expiry dates, ensuring that product information management is made as simple, accurate and effective as possible. However, its introduction is like to cause operational problem and high implementation costs in its initial stages.

Mastering the data

With a Master Data Management (MDM) solution integrated into their workflow, and configured with GS1’s product information specifications, manufacturers and suppliers will be able to easily, regularly and accurately provide the required information, saving both time and money.

By allowing manufacturers and suppliers to provide detailed product information to retailers, along with additional supporting content, the use of an MDM platform will see a reduction in time and cost across the supply chain, as well as an increase in the accuracy and timeliness of the information.

We don’t know yet what the next generation of barcode will look like, and it’s practically impossible to predict what form retail will take in the next 40 years’ time. What we do know is that a change is required and, to ease the transition MDM technology will enable manufacturers, suppliers and retailers alike to equip themselves for the growing demand for information from the multi-channel consumer.

Simon Walker is director of innovation at Stibo Systems

 

 

 

 

Your customer needs to respect your business, says Richard Rosen (pictured).

We are in the midst of a major revolution in business. Consumers today are more aware than ever that their purchasing decisions have an impact on the planet, both socially and environmentally. They now pay attention to your company’s values and are looking to buy from companies they respect.

According to Simmons OneView, 73% of consumers agree: “it is important that a company behaves ethically”. A whopping 88% of consumers buy green products. And the proportion of green products they buy increases significantly year after year.

Those businesses that successfully engage this concerned consumer will gain greater numbers of loyal customers, but the benefits don’t end there. According to a recent survey by Deloitte LLP, companies with a strong sense of purpose establish more trust with their clients, instil greater confidence in investors, receive more support from their communities, and have more engaged employees.

As a marketer, it’s essential that you get on board and consider how your brand is going to fit into this changing landscape. And you have to consider it in a real way. The days of smoke and mirrors are long gone. It’s time to ask: “What does my brand really stand for?” and then give careful consideration to the message you want to send to your customers.

Over the last decade we’ve seen plenty of examples of companies who have tried to continue business as usual by covering their less savoury practices with a heartfelt message and some beautiful window dressing. However, when those unpleasantries surface—be they corporate scandals, unfair labour practices, or environmental degradation— they leave their customers in a state of mistrust, ultimately destroying any chance of building long-term relationships. Whether it’s through their own efforts or through the social media grapevine, consumers will know if a brand’s behaviour aligns with their own personal values.

As marketers, it’s not enough anymore to tell consumers that our companies and products are good. We have to prove it.

B Corporations (B Corps) are committed to successfully addressing the needs of this new consumer. Using business as a force for good, B Corporations are leading a global movement that by redefines our success in business. Beyond being the best in the world, B Corporations compete to be the best for the world. And so far, more than 1,000 businesses from 32 countries have become certified, including Patagonia, Etsy and Ben & Jerry’s.

These companies voluntarily uphold performance and legal requirements by balancing the triple bottom line – people, planet, and profit. By taking a stand for genuine values, B Corps are engaging consumers as partners in creating a brighter future. And consumers are responding with enthusiasm and commitment.

A perfect example of a well-known B Corp that balances mission and profits is Ben & Jerry’s. Though they became a B Corp two years ago, they were using a triple bottom line approach since their first scoop shop. Their mission is three-fold: to make great product, to make money, and to make a difference in the world. Ben & Jerry’s shows their commitment to employees and consumers by working to source responsible ingredients, upholding fair labour practices, and even designing campaigns to reform US politics. Though they aren’t perfect, it’s their transparency as they work to make the world a better place that successfully engages customers in a truly empathetic way. They have created an honest dialogue that creates a reciprocal, long-term trust and enthusiasm for the brand.

Patagonia is another B Corp that has long been known for its efforts to be environmentally sustainable. But it’s their transparency and honesty that has cultivated such a loyal customer base. For example, their Footprint Chronicles initiative shares their supply chain in a transparent way to hold them accountable in reducing their social and environmental impacts. This sort of initiative extends an offer to consumers to partner with Patagonia to create a brighter future. Buying Patagonia becomes a vehicle for consumers to make a difference.

It’s no secret – as businesses, we need to make money. Most companies believe in doing good, but are afraid to implement it because they think it will hurt their bottom line. Having a strong sense of purpose goes much deeper than the old feel-good window dressing of the past. It creates a strong competitive advantage. As a marketer with 30 years of experience, I’ve never seen a better strategy to drive profits. I truly believe that balancing profits with a brand mission will drive customers to your brand, build profits and stockholder equity – it’s just good business.

This is the wave of the future. As integrated marketers, we need to consider whether or not our values and brand are aligned. And if not, maybe it’s time for a change.

Richard G Rosen is president/CEO of ROSEN Convergence Marketing (a certified B Corporation) and consults with major brands to improve their marketing campaigns through empathetic dialogue. His book, Convergence Marketing: Combining Brand and Direct for Unprecedented Profits, (Wiley & Sons), is a ‘how-to’ tool for marketing professionals. Richard will be presenting a keynote at the annual USA DMA conference in San Diego with Rob Michalak, global director of Social Mission, Ben & Jerry’s, in October 2014.