Retail Technologies - France
For several years, the retail sector has been undergoing significant change across its value chain due to a number of factors, including the emergence of e-commerce and omnichannel strategies, changes in customer behaviour and hyper-personalisation, and increased supply chain complexity. These changes have been further accelerated by the impact of the Covid-19 pandemic, with a shift in consumer activity from offline to online, challenging traditional retailers who have struggled to expand their technological capabilities.
The current uncertain climate, with supply shocks, a high inflation rate and geopolitical uncertainty, is influencing the economic paradigm of the French retail sector in a number of ways 1 French consumers are experiencing a continued decline in their purchasing power compared to 2022, due to inflation and wage stagnation. Nevertheless, most purchases are still made physically with a strong focus on price 2
Moreover, the traditional concept of the physical shop as a simple point of sale is no longer sufficient in the modern retail landscape where the distinction between the physical and the digital is becoming increasingly blurred. Retailers need to consider a more integrated approach that takes into account the interconnectedness of these two realms and responds to growing consumer demands and expectations, such as personalised service and responsible consumption, as well as harnessing the latest technological innovations
The information provided below will offer you a comprehensive guide to successfully accessing the French market.
1 Radar 2024 des startups françaises Retail Tech - Wavestone
2 « Portrait-robot de l’enseigne qui répondra aux besoins des Français entre 2023 et début 2024 » Paris Retail Week, Havas Commerce et CSA Research.
P.1 Innovations & Trends
Retail technology, or retail tech, encompasses the digital tools, systems and innovative solutions that ecommerce platforms and retail stores utilise in their operations and management. In comparison to traditional methods, it enables businesses to streamline operations and automate processes, thereby saving time and reducing human effort. The scope of retail technology is vast, encompassing everything from basic point-of-sale (POS) systems at the point of customer interaction to sophisticated AI and automation software at the operational level of retail businesses.
Overview
P 1. Innovations & Trends
P 2. Innovation Programmes
P 3. Events
P 4. Awards
P 5. Hubs & Clusters
P 6. Trade Shows
P 7. Magazines & Newsletters
P 8.
Please find below an overview of the retail technology innovations and trends that are set to shape the year ahead.
1. Phygital commerce: The term "phygital retail" is used to describe an integrated and seamless shopping experience that combines elements of both online (digital) and offline (physical) retail. It recognises the evolving nature of retail in the digital age, where consumers seamlessly transition between online and offline channels during their shopping journey. The concept of the "phygital" encompasses an online presence, an offline presence, technology integration, data utilisation and an omnichannel approach to facilitate a flexible and convenient shopping experience for consumers, enabling them to engage with a brand both online and offline based on their individual preferences.
2. Artificial intelligence (AI) and Machine Learning (ML): AI and ML technologies have become pervasive across all industries, including retail. Retailers must intensify their focus on AI and related technologies to analyse data from multiple channels. ML algorithms can help retailers optimize assortment, innovation, pricing, inventory levels, and supply chain operations. For instance, ML algorithm can recommend related products to customers based on their previous shopping history, location, and the purchase habits of other customers with similar profiles.
3. Augmented reality (AR), Virtual Reality (VR), and the Metaverse for immersive experiences: The advent of AR and VR presents a significant opportunity for retailers to offer immersive and engaging digital shopping experiences. In the context of the pandemic, AR technology has become a crucial tool for retailers seeking to bridge the gap between online and physical shopping. One of the most successful applications of AR has been the ability to virtually try on products. Fashion and makeup retailers have been the most active users of AR technology, with virtual try-on apps and virtual fitting software representing the most popular applications. Brands like Sephora and L’Oreal have developed AR apps that allow shoppers to try on different makeup products without touching their faces. VR, on the other hand, represents the most immersive means of engaging with the metaverse. A number of high-profile companies3, including Louis Vuitton, Hermès, Balenciaga and Burberry, have already established a presence in the metaverse.
4. Retail automation: McKinsey research4 indicates that 52% of all retail activities can be automated with existing technology. It minimises human error, enhances the quality and speed of service, increases employee productivity, and reduces expenditure. In the context of the hypercompetitive retail environment, automation is no longer a mere option but a necessity as it can be applied across a range of business operations, including retail, supply chain management and corporate functions.
5. POS, BOPIS (Buy Online Pickup In-Store), eCommerce: eCommerce, POS, and BOPIS solutions and integrations enable retailers to deliver a seamless customer experience, encouraging them to buy more frequently. It is now a necessity for retailers to facilitate customer purchases in order to meet public expectations. The implementation of the right software solutions allows retailers to benefit from a reduction in operating costs, enhanced customer tracking, an expanded reach, and an improved customer experience.
6. Radio frequency identification (RFID), QR codes, and other smart store technologies: The use of RFID, QR codes and other smart store technologies is becoming increasingly commonplace. It is crucial for brick-and-mortar retailers to adopt smart store technologies in order to enhance their omnichannel experience. RFID and QR codes are technologies that facilitate the identification and
3 15 Fashion Brands Leveraging The Metaverse (sensoriumarc.com)
4 Reinventing retail with people analytics | McKinsey
tracking of items through the use of tags and codes. It offers the ability to conduct real-time inventory checks as well as
7. Mobile technologies: The prevalence of smartphones has made it inevitable that mobile technologies such as shopping apps, mobile payment systems and personalised marketing via phones will become commonplace in retail. In 2023,nearlytwo-thirds ofonlineshoppers in France reported frequently shopping through their mobile devices 5 In line with the growth in e-commerce sales, mobile shopping in France shows no signs of slowing down. In 2022, consumers spent a total of 147 billion euros shopping online, with close to half of that e-commerce revenue generated through mobile e-commerce (m-commerce) 6 Concurrently, the leading online marketplaces in France rely on smartphone users for the majority of their online traffic. This expanding customer base is driving online retailers to become mobilefirst. Furthermore, in 2022, approximately 30% of female beauty shoppers in France identified social media platforms such as TikTok, Instagram, and YouTube as their primary source of inspiration for beauty trends.7
8. Datafication: To fully leverage the potential of technology, retailers must integrate robust data analytics and insights platforms. Integrating granular store-level data from online and brick-andmortar stores provides retailers with invaluable insights, which can be used for personalisation, product management, price optimisation, and streamlining store and warehouse operations, driving increased sales.
P. 2 Innovation programmes
Kiabi 4 start-ups : This program is aimed at start-ups that offer innovative and sustainable solutions to meet the retail and fashion challenges of tomorrow.
“Monop Lab”: Monoprix launched the online platform “Monop Lab” in partnership with La Retail Tech and the Hub Institute (Digital and Positive Impact Accelerator). The Monop Lab is an acceleration programme aimed at identifying and supporting innovative start-ups in the retail sector.
5 Mobile commerce in France – statistics & facts | Statista
6 Ibid.
7 Ibid.
La Maison des Startups by LVMH : LVMH has created an accelerator program at the STATION F startup campus that welcomes 50 international startups each year. This initiative will drive co-creation by LVMH Maisons and startups to bring new services and innovative products to market. By launching La Maison des Startups in the heart of the world’s biggest startup campus, LVMH reaffirms its values of innovation, entrepreneurial spirit and excellence, the pillars that anchor the Group’s growth.
L’Oreal Beauty Tech Atelier: welcomes each semester up to 10 high potential early-stage startups and accelerates their development by bringing them strategic mentoring and operational support. The program is completely free of cost and can run remotely for entrepreneurs based outside Paris.
French Tech Next 40/120 : Launched in 2019 by the French Tech Mission, the French Tech Next40/120 is a State support program dedicated to the 120 most successful French start-ups, capable of becoming leaders of international rank. They benefit from support linked to their development challenges in France and internationally.
Obratori has been L'Occitane Group's incubator since 2018, specialising in innovative projects in cosmetics, well-being and retailtech. During their 23-month residency,the entrepreneursreceivetailor-madesupport and financial assistance from the in-house investment fund.
Showroom Startups : Since 2015, this incubator has been supporting innovative entrepreneurs who are revolutionising the e-commerce sector. The programme, which is entirely free of charge, offers support to up to 10 startups per year over a one-year period.
Lab FEVAD “Start me up”: The "Start me Up!" challenge, was launched by KPMG France and Fevad. It spotlights the most innovative start-ups that are set to drive forward the e-commerce sector in France.
Keyrus Innovation Factory : Keyrus is a multinational specialising in Management Consulting, Business Intelligence, Big Data, Web Performance, e-Commerce, Omni Channel and ERP-CRM solutions. The Keyrus Group's accelerator supports the deployment of digital start-ups in France and abroad. The programme lasts six months, during which the
young start-ups (two classes per year) will be able to meet major retail groups and offer them their solutions as part of predefined roadshows.
P.3 Events
Retail Booster : Offered by the Pôle de compétitivité des industries du commerce (Picom), this accelerator for start-ups and SMEs in the retail sector supports innovative projects considered strategic for major retailers. The Retail Booster is located in the Shopping Innovation Lab (SILab), an innovation centre dedicated to connected commerce.
Connect Lille: Connect Lille brings together the retail & tech ecosystem of the North of France every year for an intense day of exchanges and discoveries. Every year, Connect Lille highlights the vitality of French retail, but also the importance of the challenges and the speed of change.
MaddyKeynote: The Maddy Keynote is the pinnacle of Maddyness innovation. The unmissable meeting of inspiration in France around the major issues in terms of Innovation for our Future.
• Maddy Awards: The Maddy Awards are a celebration of innovation and entrepreneurship in France, organised by Maddyness.
La Nuit du Commerce Connecté : The Connected Commerce Night is a veritable retail Oscars ceremony. Since 2013, the event showcases the industry for an entire evening, with a 2.5 hour show and optimal interactions between the audience and the stage. On the program: 1000 retailers, 120 candidate companies and an exceptional jury made up of 30 of the biggest personalities in retail, with presentations of innovations, live debates and a spectacular awards ceremony.
One to One Retail E-commerce in Monaco : three days of tailored meetings, inspiring talks and high-level networking to shape the future of e-commerce together.
P.4 Awards
Content Square Awards
Paris Retail Awards
Female Founder Challenge
Celebrating the crème de la crème of digital experience. Awards spotlighting digital trailblazers nailing their digital experience. The expert judging panel crown the hottest brands in categories covering innovation, mobile apps, landing pages, accessibility and plenty more.
Each year, the Paris Retail Awards reward the best retail innovations in each of the business areas - Omnichannel commerce, Store design and equipment, Logistics, CSR, Marketplaces, New payments, Customer experience and Data.
VivaTech established the Female Founder Challenge to celebrate women-led startups that are driving innovation in tech. The aim of the challenge is to enhance female representation, promote access to key roles, emphasize the value of diversity, and address women's underrepresentation in the industry.
LVMH Innovation Awards
LVMH created the LVMH Innovation Award in 2017 to recognize promising startups from France and other countries. The award reaffirms the importance of initiative and new ideas, resonating with the Group’s core values of excellence, creativity, innovation and entrepreneurial spirit. The LVMH Innovation Award is open to any startup created within the past five years with a valuation of under $100 million, fewer than 50 employees, and whose solutions are relevant to the challenges addressed by the LVMH Group and its Maisons.
P.5 Hubs & Clusters
Euratech: Created in 2009 by the Lille European Metropolis, the Hauts-deFrance Region, and the City of Lille, EuraTechnologies is one of Europe's largest startup incubators. Forerunner of French Tech, EuraTechnologies welcomes 200 startups each year in 7 business verticals: PropTech, Retail/Ecommerce, FinTech/InsurTech, Cybersecurity, AgTech/GreenTech, EdTech/HRtech, Industry/Robotics/SpaceTech.
Contact: Soizic CHEVILLOTTE - Retail & E commerce Program Manager, schevillotte@euratechnologies.com
Cap Digital: Created in 2006 as a non-profit organisation, Cap Digital is today recognized as the biggest cluster in Europe and one of the largest innovators’ collective in the digital ecosystem. Since 2014, the cluster has been certified as 'Cluster of excellence' by the European Commission (Gold Label).
Trade Shows
The Hub Institute: Founded in 2012, the HUB Institute, with more than 20 professional communities, is the trusted third party on the market on subjects of digital and sustainable transformation of businesses. Our mission: to enable you to understand and anticipate the trends of today and tomorrow, to exchange with the most innovative players and to accelerate your growth and your business ambitions.
France Digitale: The leading startup and investor association in Europe. Independent organization that gathers startups and investors to defend innovation in France and in Europe. Their mission is to bring out European digital champions.
La Retail Tech: Initiated in 2022 at the initiative of Retail experts, La Retail Tech is the first community bringing together the French tech ecosystem designing the commerce of tomorrow.
Contact: Barbara Sarre De Roubaix - Co-founder La Retail Tech, barbara@laretailtech.com
Echangeur BNP Paribas Personal Finance is a technological and marketing center that analyses the latest trends in retail and anticipates their impacts on commerce. They support retailers in their innovation processes by providing key insights on new consumer's behaviors as well as a in depth vision of new tech.
Plug and play is an innovation platform which connects the brightest minds. The aim of the organisation is to build a smart future and to achieve that, they are building a unique ecosystem that connects change-makers and leading organizations.
Tech for Retail is the European trade show that is reinventing retail. It offers a comprehensive and relevant overview of digital tools and technological and eco-responsible innovations for the retail professions. From Supply Chain to Customer Loyalty, technology is imposing itself on retailers, more and more every day and at every level.
Paris Retail Week is the must-attend event for omnichannel commerce, bringing together 20,000 participants over 3 days at Paris Expo Porte de Versailles: theperfect opportunity topresent your solutions to prospects and customers.
P.6
Vivatech is the world's rendezvous for startups and leaders to celebrate innovation. It's a gathering of the world's brightest minds, talents, and products.
E-Marketing Paris is one of the largest e-commerce and digital marketing show in the capital of France. It's the ideal event to meet big and small players fromParis but alsofromeverywherein Franceas many exhibitors come from outside of Paris to showcase their latest services and products.
Retail & E-commerce Forum & Meetings brings together 2,000 professionals and decision-makers from the retail, FMCG (fast-moving consumer goods), luxury, fashion and automotive sectors over 3 days.
Brand & Retail Tech Showcase by Plug & Play
Plug and Play host every year their exclusive Brand & Retail Tech Showcase event in Paris. Attendees usually include innovation, marketing, CX teams from Hermes, Chanel, LVMH, L'Oréal, Lacoste, Krys Group, Danone, etc.
They select and present 15 startups that are redefining the future of commerce and cover topics such as content creation automation, ondemand production, biometric payments, AI-led design, take-back programs, ethics & AI, and more.
P.7 Magazines & newsletters
Republik Retail is a business-oriented information website for retail professionals (retailers, brands and service providers).
Maddyness is a news website covering the French entrepreneurial ecosystem, technological innovations and market trends.
Digital Mag (digital-mag.fr) is the magazine of reference for professionals in the Digital, Direct Marketing, E-commerce and M-commerce sectors.
La Revue du Digital is an independent press site that provides information to professionals affected by digital technology and IT in their business activities.
Any questions?
Please get in touch with the DBT team based in France: CommercialEnquiries.Paris@fcdo.gov.uk
Bibliography
The tech transformation imperative in retail | McKinsey
Retail technology trends fueling growth in 2024: PwC
Radar 2024 des startups françaises Retail Tech - Wavestone
« Portrait-robot de l’enseigne qui répondra aux besoins des Français entre 2023 et début 2024 » Paris Retail Week, Havas Commerce et CSA Research.
15 Fashion Brands Leveraging The Metaverse (sensoriumarc.com)
The Future of Retail: Top 6 Retail Technology Trends for 2024 (g2.com)
Mobile commerce in France – statistics & facts | Statista
Reinventing retail with people analytics | McKinsey