As part of the government's "France Relance" support plan to deal with the social and economic consequences of the crisis, Bruno Le Maire has already unveiled a series of subsidies to help companies digitize their distribution networks.
Today, in the face of the pandemic, the main competitor for our small, and a fortiori "non-essential", businesses is no longer supermarkets but marketplaces, the most efficient of which are not necessarily French, which also poses a real problem for the government in terms of VAT collection. And beyond the health crisis, this is a major trend in consumer purchasing methods: by 2020, 57% of global e-commerce will be carried out on marketplaces!
The French government supports the digitalization of local commerce
So, in addition to new framework regulations to come on this same VAT for marketplaces that will be active in 2021, the government is therefore launching this support program that has 3 components:
- Clique mon commerce", a website providing information and connecting retailers with approved marketplaces.
- A €500 subsidy for all businesses currently closed for administrative reasons to help them convert to digital technology, either by joining a platform, acquiring software or creating a website, given that 1/3 of French VSEs don't currently have a website, and that the government's objective is to achieve 50% digitalized commerce by next year.
- Assistance of up to €20,000 for local authorities to digitize their town centers using local marketplaces, accompanied by a training grant of €40,000 over 2 years.
A number of cities, départements and regions have already taken the plunge: Nancy, Limoges, Caen, Antibes and the Occitanie region with the "Dans ma Zone" website.
Best practices for optimizing your marketplace
This is a remarkable initiative, because the creation of marketplace brings with it not only technological aspects, but also new constraints in the management of commercial relations - such as the creation of escrow accounts or the integration of a remuneration rate into the business model - or adaptation, particularly in terms of the flow of merchandise, with deliveries to be made to the consumer within a defined timeframe, but also in terms of the return of merchandise in the event of dissatisfaction.
Finally, those embarking on the marketplace project now need to take a close look at the two main rules of good practice that need to be respected if they are to work over time:
Supply management
It's easy to imagine that today, the customers of these regional marketplace are part of a militant approach and are "content" with what their local shops have to offer. But if they are to survive, they will need to continue recruiting new salespeople, as the breadth and volume of their offer will be the key to tomorrow's consumer choice between the various platforms that will soon be competing with each other. One of the keys to success is to ensure that retailers are properly trained to place their products online.
Customer communication
Particularly during this period of confinement, consumers need to be recruited, and so a full-scale communication campaign needs to be put in place, both by the retailers themselves and by the collective, using all available means: point-of-sale, press and, of course, social networks.
In conclusion, it is becoming imperative for any retailer, whatever its size, to take an interest in this distribution channel, and to accelerate its implementation.
Univers Retail can help local authorities, convenience stores, brands and distributors realize these projects: contact us.
By Catherine Fedrigo.