Replace the paper catalog

 

 

IS THIS THE END OF PAPER CATALOGS?

For over a decade, the reduction and decline of unsolicited papier leaflets in mailboxes have been a topic of discussion.
In 2022, this debate took a new turn, as multiple factors combined to accelerate retail’s shift toward a more digitized media mix. Paper has not had its final say, others are moving entirely to digital formats, and many are opting for a gradual transition. In this article, we invite you to explore the challenges of this transformation.

 

What is the « Oui Pub » initiative?

Launched on September 1, 2022, by the French government, the “Oui Pub” experiment covers 15 test cities or agglomerations, affecting 2.6 million inhabitants or 15% of the retail market. This initiative aims to reduce the environmental of advertising by limiting the distribution of paper leaflets in mailboxes. Derived from the August 2021 Climate and Resilience Act, the experiment is inspired by the Citizen’s Climate Convention.

 

The Stop Pub initiative, introduced in 2004, allowed residents to opt-out of receiving paper advertising. Currently, about one-third of mailboxes in France display the “Stop Pub” sticker. The Oui Pub, initiative works in the opposite way—like a “digital opt-in,” the “Oui Pub” sticker indicates that the mailbox owner accepts advertisements.

WHAT IS THE ENVIRONMENTAL IMPACT OF PAPER CATALOGS?

 

An impact driven by waste, not the medium

 

The negative environmental impact of paper leaflets mainly stems from the fact that a significant portion of them are discarded without being read. The energy and raw materials used in their production are wasted, significantly reducing their effectiveness. Today, the main focus is on improving the environmental return on investment (ROI) between promotional material production and its effect on store traffic.

 

42% of consumers believe that paper catalogs are a waste.

 

Source : ADEME

 

A GLOBAL SHIFT TOWARD MORE ECO-RESPONSIBLE DISTRIBUTION

It is essential to note that this initiative aligns with a broader trend promoting more environmentally friendly business practices. Many companies are adopting eco-responsible approaches to meet consumers’ sustainability expectations. The decline of paper leaflets, similar to the ban on single-use plastic bags, represents a shift led by the retail sector before legal requirements emerge.

 

Paper leaflets before 2023

 

 

An increasingly expensive paper catalog

The cost of paper is rising!

The potential nationwide adoption of the Oui Pub initiative is not the only factor pushing retailers to reduce or cut back on paper catalogs. In fact, paper prices have more than doubled in just one year, soaring from €400 to nearly €1,000 per ton by the end of 2022.

 

Source : alliance de la presse d’information général (APIG) les échos October 2022

 

MULTIPLE REASONS BEHIND THE RISING PAPER COSTS

PROMOTIONAL SALES AT RISK FOR RETAILERS

The retail sector’s reliance on promotions

Promotions are the number one driver of foot traffic in stores. According to Madame Benchmark, “all food retail chains confirm that if they don’t distribute the planned weekly flyers, their revenue drops by 25% to 30%.” This makes promotional leaflets the key traffic generator for retailers. This is further validated by a Kantar Worldpanel study featured in e-commerce magazine: “In large food retail stores, promotions generate an average of 9% additional foot traffic and 13% additional revenue.” 

THE RISK OF LOSING CUSTOMERS TO COMPETITORS

French consumers are highly volatile, especially in times of inflation on food products, which only strengthens the automation of their purchasing journey. When purchasing power tightens, retailers respond with promotions and must constantly work on their pricing image. The catalog is the most effective tool for this, offering consumers an instant comparison between different retailers in their local area, fostering weekly competition.

 

In large cities, where stores are dispersed along nearby streets, there is less need for catalogs to compare brands. This explains why chains like Monoprix easily eliminated them, whereas in rural and peri-urban areas, where travel to stores is more significant, customers are much more attached to this medium. Retailers may face difficulties if they cannot transition these habits to e-catalogs or reach customers through other digital channels.

 

70% of French consumers consider catalogs the best tool to optimize their purchasing power, and 67% find them useful or very useful.

 

Source : La Revue du Prospectus

Abandoning paper catalogs is a significant challenge for retailers, who must anticipate customer needs while addressing legislative, economic, and ecological concerns.

To match the impact of paper catalogs while reducing energy consumption, digital commercial communication strategies will need to focus on ultra-targeted advertising and personalized offers.

 

Retailers are currently developing new strategies to rethink their communication methods, which have long revolved solely around catalogs and their creation.

“Discover the META conference from May 5, 2023, on “Catalog Digitalization,” where Rodolphe Bonnasse, CEO of ARISTID, presents various perspectives on new media strategies and the data required for their implementation.”