Retail Trends Newsletter for L'Oréal - December 2018

Innovation presentation DECEMBER 2018 ALTAVIA PRESENTATION

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CONTENTS PRINTED MATERIAL INNOVATIONS DIGITAL INNOVATIONS ENVIRONMENTAL INNOVATIONS CREATIVE USE OF EXISTING MATERIALS ALTAVIA PRESENTATION

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1. PRINTED MATERIAL INNOVATIONS

All innovations related to printed materials increasing product quality and/or cost efficiency, allowing new creative concepts...etc (eg: Inks, printed supports).

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1. PRINTED MATERIAL INNOVATIONS Fresh Kber paper and cardboard ●

The revolutionary Fresh Fiber paper and cardboard (which received awards as “Best Sustainable Packaging Innovation”) significantly reduces the environmental impact - it uses less than 1 liter of water per ton of grass fiber pulp compared to a few thousand liter per ton for wood fiber pulp.

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Fresh Fiber is an exclusive combination of grass-made fiber and premium uncoated woodfree board. It is predestined for press kits and packages, mainly for natural cosmetics and foodstuff industries. For instance, Packaging Campus Lenningen and Scheufelen started the new series #USE:LESS and has introduced sustainable packagings using this new product.

#grasspaper ALTAVIA PRESENTATION

#packaging 7-JAN-19

#sustainable ALTAVIA

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1. PRINTED MATERIAL INNOVATIONS Stone paper ●

Stone paper doesn’t use wood, water or chlorine.

Indeed, it is made of stone powder (80%) and polythene (20%).

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It is more resistant than traditional paper and it is waterproof. Furthermore this new kind of paper doesn’t need lamination.

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It can be used for making agendas, flyers, origami, packages, and bags. For instance Ogami Office Milano, which produces school accessories, created a collection of notebooks in stone paper.

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Stone paper is another interesting solution for sustainable development printing.

#stonepaper ALTAVIA PRESENTATION

#nolamination 7-JAN-19

#waterproof ALTAVIA

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1. PRINTED MATERIAL INNOVATIONS Infused ink and white noise display ●

Scent infused ink has been existing for a long time, but it can be really innovative when used for other subjects than the usual Fragrance brands, especially when it is used with another innovative device to create a multi-senses experience.

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For instance, IKEA, to promote their mattress, created a print ad on the back of “Good Magazine”, which transforms into a useful easel designed to help people who struggle to get a good night sleep. The lavender infused ink, a scent that’s known to relax muscles, is activated when the back of the easel is folded. And to enhance even more the customer experience, this scent was paired with a white noise frequency – also relaxing.

#cardboarddisplay ALTAVIA PRESENTATION

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#whitenoise

#infusedink ALTAVIA

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1. PRINTED MATERIAL INNOVATIONS interactive ad ●

An interactive ad is an ad with many kinds of interactive possibilities for the user. It usually links print and digital but integrates other types of stimulations such as odours, noises, touch & feel, etc. to increase impact and build brand awareness.

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For instance, Toyota created an interactive ad for its Camry car in a magazine called Instyle. Readers could grab the door handles and place their thumbs on the sensors to activate a heart monitor icon that simulated pulsations. The LCD monitor allowed readers to see and hear their heartbeat, thanks to an audible beeping noise. The leather odor was also integrated in the ad.

#interactivefoldout ALTAVIA PRESENTATION

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#InStylemagazine

#digitalad ALTAVIA

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1. PRINTED MATERIAL INNOVATIONS Laser-cut notepad ●

Laser-cut technology (technology that uses a laser to cut materials), is more precise, uses lower power consumption, allows a lot of different possibilities in terms of cutting and works with many different materials, it can also be used for rigid materials or thin materials as notepads.

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For example Triad, a Japanese company, designed an artistic notepad with laser cut technology. The paper was laser-cut and assembled into a block looking like a regular memo pad. And when each notes were teared off, the notepad finally turned into a sculpture.

#notepad ALTAVIA PRESENTATION

#lasercutdisplay 7-JAN-19

#creativedesign ALTAVIA

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2. DIGITAL INNOVATIONS

All digital innovations enhancing the customer experience at Point of Sales; these can be purely digital or a combination of print and digital.

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2. DIGITAL INNOVATIONS Taxi Geo-targeted ads ●

Today the content of mobile advertising locations (on buses, cars, etc.) can change and adapt according to the location. Indeed, when a mobile ad passes on a specific location it displays an ad linked to this place thanks to the GPS.

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For example, American Express ran ads on top of 125 taxis in New York City which changed messaging depending on the location of the cabs. Whenever a cab passed the location of an American Express merchant, the technology taped into the cab’s GPS system and displayed the correct ad for that company on top of the cab.

#geotargetedad ALTAVIA PRESENTATION

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#taxisinnewyork

#rooftopsign ALTAVIA

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2. DIGITAL INNOVATIONS New facetime purchasing experience ●

S everal brands developed sales assistance via Facetime. Indeed, it allows customers to communicate in real time with sale managers, and ask all they want to know concerning the products without even having to physically step into the store.

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For instance Hublot, has developed a new digital platform (customer go on the Hublot website, ask to be connected with the Hublot Digital Boutique) which offers to its customers a full 360-degree experience and 3Dfacilitated access to its products. They have the possibility to see products in detail, combined with 3D assets and film and other media.

#facetime ALTAVIA PRESENTATION

#digitalplatform 7-JAN-19

#clientexperience ALTAVIA

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2. DIGITAL INNOVATIONS facial expression analysis ●

To enhance marketing impact, some brands used facial expression analysis to understand customer ’s behaviour.

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Unilever placed discreet cameras on shelves to analyze shoppers’ facial expressions, and the levels of attention and engagement given to products. Results: Unilever observed that a product display with a hanging shelf stopper was 3,5 times more visible than a product display without shelf stopper, the trial also found that displays with stopper were more likely to engage men.

#facialanalysis ALTAVIA PRESENTATION

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#instoresolution

#shelvescamera ALTAVIA

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2. DIGITAL INNOVATIONS All in one card ●

This year, several unstaffed shops have opened to make shopper experience easier. People just need to have a special card to enter, pay, and leave the shop.

Indeed, to go inside, they need to scan the card and a detector will check if it is the right card possessor thanks to a facial-recognition system. To go outside the store and pay, customers have to follow the same process with this facial-recognition system.

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For instance, 7-Eleven, an international chain of convenience store, has opened its second unstaffed Xstore in Taipei and follow the same process. All the customer’s information are stored on a specific card which permits to do everything in the shop.

#unstaffedshop ALTAVIA PRESENTATION

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#specificcard

#facialrecognition ALTAVIA

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2. DIGITAL INNOVATIONS Facial recognition ●

Facial recognition permits to pay without having to take out wallet or mobile. Once registered through we-chat payment with the customer’s face ID, when customers purchase and pay in store, they just have to smile to the camera then payment accomplish.

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For instance, Carrefour opened a brand new format in Shanghai, named Carrefour Le Marche. This new concept is a smart life store with many digital innovations. including we-chat payment smart retail store.

#facialrecognition ALTAVIA PRESENTATION

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#wechatpayment

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2. DIGITAL INNOVATIONS Smart beauty mirrors ●

Smart beauty mirrors use Artificial Intelligence to measure everything from wrinkles to spots and pores.

They also have the ability to store information on the cloud, consumers are able to create individualized profiles, buy a beauty product and interact with the mirror at multiple points before and after using the product. The mirrors also give retailers and salons the option to input details about their own stock, as well as use the tools to measure customer behavior and preferences.

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For instance HiMirror launched interactive mirrors for the retail sector that will help consumers identify their unique skincare needs with artificial intelligence.

#smartbeautymirror ALTAVIA PRESENTATION

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#artificialintelligence

#storeinformation ALTAVIA

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3. Environmental innovations All “green”, eco-friendly innovations and innovations using recycled materials.

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3. ENVIRONMENTAL INNOVATIONS Cane sugar bricks ●

“Natural plastic” based on the cane sugar fermentation is more and more used for the manufacture of products.

It looks like plastic but it’s natural, there is no difference concerning the quality and the appearance.

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For example Lego created little bricks which represented trees, bushes and leaves based on the cane sugar fermentation.

#plantbricks ALTAVIA PRESENTATION

#canesugarplastic 7-JAN-19

#samequality ALTAVIA

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3. ENVIRONMENTAL INNOVATIONS ‘Plastic bags’ soluble & unpolluted ●

Two researchers from Chile created a new biodegradable plastic bag. They changed the current chemical formula used to produce plastic bags.

Composed with limestone rocks derivative and PVA, a polyvinyl alcohol that dissolves in water. It has the same cost than plastic bags.

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The main difference between traditional plastic and this biodegradable bag is that traditional plastic remains between 150 and 500 years in the environment and this one only lasts five minutes in the environment.

#biodegradable ALTAVIA PRESENTATION

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#plasticbag

#soluble ALTAVIA

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3. ENVIRONMENTAL INNOVATIONS recyclable and reusable canned water ●

New range of canned are sold. These cans are made of highly reusable aluminium and designed with a reusable lid so people can carried it in their bag like a reusable bottle.

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For instance, as part of its #OneLess campaign, the Zoological Society of London this new range of canned water at its London and Whipsnade Zoo sites. The cans can be widely recycled across the zoo.

#newcans ALTAVIA PRESENTATION

#reusablealuminium 7-JAN-19

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3. ENVIRONMENTAL INNOVATIONS Air decontaminating Wallpaper ●

Colombian students developed a wallpaper which decontaminates the air.

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They used specific bacteria: the cyanobacteria (which uses plants for photosynthesis). When it is locked up in wallpaper fibers they turn carbon dioxide into oxygen.

Furthermore they are modified in order to absorb Volatile Organic Compounds (VOC) that we find in paint and spray and can generate cancer.

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This is possible to apply this in posters, screens and wall covering.

#wallpaper ALTAVIA PRESENTATION

#modifiedbacteria 7-JAN-19

#absorbvoc ALTAVIA

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4. Creative use of existing materials All innovations using existing materials in a different and creative way.

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4. CREATIVE USE OF EXISTING MATERIALS Pregnancy magazine ad

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Print ads can be really creative. They can take the form of pregnancy test and use antibodies that bind to pregnancy hormones resulting by a color change.

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For example, IKEA had launched an advertising containing a pregnancy test. Women had to pee on the marked area and if they were pregnant a discounted price for the crib showed up.

#pregnancyad ALTAVIA PRESENTATION

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#discountedprice

#colorchange ALTAVIA

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4. CREATIVE USE OF EXISTING MATERIALS Trompe-l’œil effect

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Some brands are using “trompe l’oeil effect” to launch new products. It is a good way to communicate and draw the attention of customers on new products.

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Thus, to communicate about its new NOX series, CANAL + (French film and television studio and distributor) created with the help of two renowned street artists, an impressive anamorphosis (5 x 10 m) that plunges viewers into the catacombs of Paris.

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They used pastels and paint for this giant Trompe l’oeil.

#anamorphosis ALTAVIA PRESENTATION

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#launchproduct

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4. CREATIVE USE OF EXISTING MATERIALS Participative Plastic campaign

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To mark events, some brands construct sculptures in order to transmit a message or to promote new products.

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In this way Corona created a crashing wave from plastic collected in the UK. The installation, designed by artist Andy Billett, depicts Chris Hemsworth surfing the wave of waste. In the run up to World Oceans Day, members of the public were invited to contribute to it by dropping off their own plastic waste at the site.

#sculpture ALTAVIA PRESENTATION

#plasticcollected 7-JAN-19

#publiccontribution ALTAVIA

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4. CREATIVE USE OF EXISTING MATERIALS music box packaging

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Original packaging, as music boxes, are used to mark special occasions. A lighting sensor and a small sound system are placed in a fake box top. When the box is open, it plays classic music.

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For instance, the Maestro burger, a best seller in Portugal, was replaced by a new range of products. To mark the occasion and to allow consumers to say goodbye to their favourite burger, McDonald’s Portugal has transformed Maestro boxes’ in real music boxes.

#musicbox ALTAVIA PRESENTATION

#markdepart 7-JAN-19

#lightingsensor ALTAVIA

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4. CREATIVE USE OF EXISTING MATERIALS scented print ad

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Scented print ads have existed for a long time, but Old Spice used it in a very creative way.

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Old Spice's print ad in GQ magazine featured an adultsized paper blazer scented with the Procter & Gamble's new fragrance. Readers opened the magazine, and found out the folded and disposable blazer with a message from the brand, “live the luxurious life of Old Spice Captain.”

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It was folded accordingly to the pages dimensions, like traditional clothes, namely in a rectangular form.

#printad ALTAVIA PRESENTATION

#scentedblazer 7-JAN-19

#GQmagazine ALTAVIA

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4. CREATIVE USE OF EXISTING MATERIALS Virtual reality

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Some brands try to find in-store application to virtual reality technology.

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Indeed, to promote the easy breath snorkelling face mask, Decathlon had implemented a video device.

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People choose an easy breath face mask and put it on their face, after that, they had to watch inside of the POS in order to see a video of the seabeds.

#interactivepos ALTAVIA PRESENTATION

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#instoreapplication

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4. CREATIVE USE OF EXISTING MATERIALS Transforming packaging into Edible billboard

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Edible billboards allow brands to offer food to customers and advertise theirs products.

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For instance, near the Old Truman Brewery in London, Deliveroo, food delivery service, set up a fun food billboard made entirely of edible burgers. Each burger that makes up the 'Eat More Amazing' billboard is set to be crafted by one of Deliveroo's restaurant partners, offering bystanders their choice of chicken and beef varieties.

#ediblebillboards ALTAVIA PRESENTATION

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#offerfood

#advertising ALTAVIA

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THANK YOU!

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