TOPIC

Designing new business models and creating additional sources of income

The traditional department store business model is suffering (and was even before Covid-19).

Department stores are looking for new or modified models which will halt the downward spiral of profitability and hopefully lead to renewed growth.

The business model consists of two parts:

a)  Customer value proposition

• Product and service offering (assortment, private label, quality…)
• Shopping experience (store, visual, payment …)
• Pricing and revenue model (pricing strategy, value-added services…)

b)  Operating model

• Organisation (structure and processes)
• Cost model (sourcing and store operations)
• Value chain (suppliers and logistics integration)

As we have seen during Covid-19, the operating model has sometimes had to be adapted (or improvised) to support changes in the customer value proposition.

One of the most obvious shifts was towards a significant increase in e-commerce operations (not always profitable per se) and personalised services, some of which might turn out to be permanent. Going further, how to shift and create new and additional sources of revenue?

Examples of models which might be considered by department stores:

• Paid services, store tours, events, etc. for customers
• Paid services to brands (customer data, marketing, fulfilment, payment systems etc.)
• Recurrent revenue or subscription, series
• Rental (of both productive and non-productive spaces: parking lots, warehouses…)
• Taking in existing concepts
• Pop-ups, temporary formats
• Hosting new digital native brands
• Collaborations and partnerships (brands and others)
• Eliminating inventory (marketplace, concessions)
• Expanding private labels

Takeaways

• Click below to watch the recording of the New Business Models - Questionnaire Presentation:

IADS CF#2 New Business Models - Questionnaire presentation

• Click below to watch the recording of the New Business Models- Showfields Presentation Part 1:

IADS CF#2 New Business Models - Showfields presentation part 1

• Click below to watch the recording of the New Business Models- Showfields Presentation Part 2:

IADS CF#2 New Business Models - Showfields Q&A Part 2

• Click below to watch the recording of the New Business Models- Showfields Presentation Part 3:

IADS CF#2 New Business models - showfields q&a part 3

• Click below to read the IADS presentation and takeaways:

New Business Models questionnaire presentation

New Business Models meeting takeaways

• Click below to read notes about Showfields presentation:

Showfields notes

General information

• New Business Models - Invitation letter
• New business models - Registration form & questionnaire

• Antitrust guidelines

Timing

Monday 26 April 2021 14:00 - 17:00 Paris time(12:00 pm to 3:00 pm UTC, please take into consideration the switch to summer time)

Link to connect to the videoconference: <https://meet.google.com/bpe-bdxz-tkz>

If you wish to join by phone, dial +33 1 87 40 38 20 and enter code 920 263 626#

More phone numbers to access the videoconference: <https://tel.meet/bpe-bdxz-tkz?hs=5>

Agenda

*Paris time

2 pm - 2.20 pm              Presentation of all attendants and welcome

2.20 pm - 2.50 pm         Review of participants' replies to questionnaire

2.50 pm - 3.50 pm         Guest speaker: Mr Tal Zvi Nathanel, CEO of Showfields, <https://showfields.com/>

3.50 pm - 4.50 pm         Workshop in small groups

4.50 pm - 5 pm              Conclusion and moving forward*

Resources

• [ Instore Experience: The Case of Showfields](https://www.iads.org/files/pmedia/public/r68759instoreexperiencethecaseofshowfieldsiadsexclusive.pdf "Télécharger le document 'r68759instoreexperiencethecaseofshowfieldsiadsexclusive.pdf' (pdf - 1.06Mo)")
• [ The Future of Retail: Winning Models for a New Era](https://www.iads.org/files/pmedia/public/r68769thefutureofretailwinningmodelsforanewerabaincompany.pdf "Télécharger le document 'r68769thefutureofretailwinningmodelsforanewerabaincompany.pdf' (pdf - 0.76Mo)")