Michiel Muller, Picnic – NOAH18 London

Michiel Muller, Picnic – NOAH18 London


Marker for having us back since we also presented last year I think quite a lot have happened since Dodger became a bit more known especially of course in the grocery world because we do groceries But we still get questions like what is picnic exactly? Why is it different? Why’s that successful but also does it work economically wise and what’s next? So let me just take you through a couple of these points. We are the next milkman as you can see and Let me just briefly explain what we do. We have a warehouse where our supplies bring our products? So all the grocery parks that you can buy in a normal supermarket there we do the order picking we bring them to our own local city hub and From there we drive with our little electrical vans to people’s homes That’s about what we do what you can see also is that we don’t have any supermarkets So the amount of costs that we save by not having supermarket is of course given back to the customers in terms of free delivery and lowest price because this is our proposition and with lowest price and free delivery This is the first time in Europe and maybe also elsewhere that there’s no difference between going to the supermarket Yourself or having it delivered at home It’s exactly the same cost for any customer and this is very important also combined with a 20 minute time slot So you only have to be at home for about 20 minutes or basically it’s only minute besides I will show you a bit later. So that means that for the first time really doing online groceries It’s also affordable for the teacher and the policeman and the nurse and that has created really a mass market movement I will show you right now Well, this is our technology platform. We are of course the technology company we build our own software We’ve even built our own delivery van. We do everything on an app so you can only order through an app this is really nice because then you always have your shopping list in your pocket and we can exactly see when people are sitting in the train or spending time before television So they can see and they can do their groceries immediately Also what we do we build our own fulfillment center, and we also delivered our own warehouse management system But with that and with having a different supply chain We also save about 70% of food waste Meaning that we only order with our customers our suppliers the products that our customers have ready ordered with us So having a former efficient supply chain Less food waste and in the end cheaper for the customer on the left hand side. You see our electric fleet. We have a 700 electrical vehicles by now by far the biggest electric grocery fleet in Europe delivered and constructed by our own design by ourselves Meaning that it’s very efficient in terms of local Delivery this also creates a new last mile experience and Newman last month solution now we sort of cracked the last mile leading to a 1/3 of the cost of the industry average for last mile delivery and On the right-hand side less than side you see, of course happy customers. Now. Does it really work? I mean, does this really create demand? Yes, it does if you go from a premium solution that most of the online groceries Providers have to a mass-market solution you get this these are the lines of all the cities that we opened over the last couple of years and On the x-axis you see the number of weeks that are already open and on the y-axis You see the penetration the downloads and the signups of our app and you see in our oldest market amersfoort Which is now a third of three years old. We have more than 50% of all households signing up So this is something completely different than the 2 to 3 percent that were used to so really creating a mass market approach and also make it available for Everybody has created this movement Now, this is a picture of our first market as well on the left-hand side You see what was there before we started of course, there was already online But it was more premium product and with delivery cost and long windows and on the right-hand side You see what happened after we started we now in our oldest market. We have a 5% of total Of grocery sales and if 80 85 percent market share and online grocery sales Now is it really different Versus the others. We just put here together Amazon fresh and O’Connor, of course, you’ll probably know next to picnic What are the main differences of these between these 3. Well first of all we have of course a a very efficient Customer proposition no delivery costs only 20 minutes time frame time window and only 25 euro delivery minimum order value leading to this mass-market proposition Secondly, if you look at the penetration and amount of people that use it is also far higher than with Okada And the frequency is the most simplistic part I think because having this milkman model meaning that we drive to your street once every day if We have three customers in the street We can do them in one go which leads of course to a huge efficiency But it also creates a lot of sort of stability in the pattern in the buying pattern Some people just order every week every Tuesday the groceries are coming. So at least you’re real change of behavior and lastly sustainability we have not only 70% less food waste, but we also have 100% electrical fleet. So we don’t drive around with diesel vans in neighborhoods Now the the consumer likes it, of course because it’s a nice proposition but also we do a lot of course to help them to understand how it works because most people will do groceries online for the First time and because they used to go into the supermarket and if you help them get into these couple of first stages Then they’re really happy and they stay with you Now the question is always will this ever become profitable of course and what are the comments behind it? Well, this is Sort of a list of all the hubs that we opened and what you can see is after six months all these hubs already profitable Meaning that you’ve paid for the building for all the runners or delivery guys all the energy all the trunking etc so everything is paid for for the local city hub and then you start to contribute to Fulfilment and of course to a bit of head office and you see that even after two years already the gross margin is 20% So with that you have a profitable model in hand Now what’s next? We started in Germany in April this year we started a bit west of Dusseldorf and a couple of months ago we started a mint you globba and there you also see we did a pilot period there so we asked durman’s what do you like what you like about the Supermarket, but would you like about an online growth free offering and see exactly the same happening? Also Germans love to have their groceries for free at home And this is just a small animation of what happened in Germany we started in to the west of Dusseldorf and I’m intrigued lapa and you can see that even am intrigued lovers go even quicker if you see little Dots – people signing up and it also shows you it’s not in certain neighborhoods now It’s everywhere because it is this mass market approach So Germany loves picnic Now what’s next as well is that we’ve introduced? A parcel return so when our runners are delivery guys and girls come to your door delivering your groceries They also take with them your e-commerce returns So that’s very convenient because you have to otherwise have to go to the post office or whatever you go And now we just take them back but this is also of course a very sustainable way of getting ecommerce deliveries and returns back to the original supplier because it of course diminishes the time and effort that customers have to take but it also Diminishes the amount of traffic that goes into cities just to pick up all those returns We have sort of 40 returns coming back to a hub with a little electrical vents and there’s one parcel guy picking up all these 40 or 50 parcels in one go which of course creates a lot of sustainability Now to conclude we are the malecon. We are a sustainable Example of how you can do it But we also have a mass market approach and this is where we came from a couple of years ago from 1 To 60 cities from 10 to 800 vehicles by the end of this year We’re running towards two hundred two and a half thousand people and more than 200 million sales by the end of this year Thank you very much You

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