How to Properly Anticipate the End of Paper Catalogs?

Senior Manager at Converteo, Olivier Becquart guides brands and retailers through their digital transformations. Among the current challenges: the end of paper catalogs and the shift of promotional mechanisms to digital. As the “Oui Pub” experiment is underway in 14 municipalities, he shares his advice and recommendations for successfully making this transition and seizing the opportunities offered by digitalization.

Key Takeaways:

• The “Oui Pub” initiative, which has been in trial for nearly a year in 14 municipalities, serves as an ideal laboratory for analyzing the impact of ending paper leaflet distribution on store performance while exploring alternative channels.
• Both in pilot areas and nationally, retailers should proactively prepare for the “end of paper” by adopting a “test-and-learn” approach tailored to local contexts. This transition also requires change management involving cross-functional teams at both central and local levels, internally and with partners.
• For analyzing impacts at store or category levels, optimizing media mix, personalizing offers, or improving messaging, data—both internal and external—plays a central role in retailers’ strategies.

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Several trends are currently converging to prompt retailers to phase out their paper catalogs: environmental awareness, rising printing and distribution costs, and the acceleration of digital usage. Additionally, there is a regulatory dimension embodied by the Climate and Resilience Law of August 2021, inspired by the Citizens’ Convention for the Climate.

An opt-in approach, similar to the web

In this context, the “Oui Pub” experiment was launched in 2022 across 14 local authorities and is planned to last for three years before a possible nationwide implementation. Unlike the previous “Stop Pub” system, this new approach introduces an opt-in model, akin to web practices: in the test areas, consumers must affix the “Oui Pub” sticker to their mailbox if they wish to continue receiving advertising.

After one year of experimentation, the sticker adoption rate ranges from 20 to 30% in 8 areas and is below 10% in 5 areas, according to a preliminary evaluation by Ademe. In practice, this results in the cessation of leaflet distribution in these zones, as these acceptance rates do not support a viable economic model for distribution. This experiment thus represents an interesting opportunity to anticipate the end of paper advertising and explore alternative channels.

An Accelerator for Digitalization for Retailers

We will need to wait until autumn 2024 to review the complete Ademe report, which will include an evaluation of the impact of the scheme on purchasing behavior. However, our initial observations are quite encouraging: despite the cessation of paper distribution, stores in the affected areas are not experiencing abnormal declines in performance.

In “Oui Pub” areas, retailers have significantly increased their efforts to inform consumers through various channels: point-of-sale materials, signage, email campaigns, radio spots, and local press campaigns. These initiatives generally have two objectives: to boost the use of their own mobile apps or websites and/or to drive sign-ups for newsletters and loyalty programs. In summary, this is an accelerator for digitalization.

Result: Some retailers are even showing over-performance in the pilot areas. Food retailers, in particular, are benefiting from higher visit frequencies and stronger brand recall compared to others.

This observation has led some retailers to accelerate beyond the experimental framework: Leclerc has announced it will stop paper leaflet distribution in all its stores by September 2023 at the latest, while Carrefour aims to reduce paper leaflets by 40% in 2023 and 80% in 2024. Cora has already eliminated paper leaflets since January of this year.

An iterative approach, adapted to local contexts

At Converteo, before fully transitioning away from paper leaflets, we recommend deploying strategies tailored to each local context, with the support of field teams and leveraging both internal and external data. CSR sensitivities and digital usage are far from uniform across the country, and it is essential to segment the store network to activate the appropriate levers in each case. Key factors to analyze include population characteristics in the area, competitive pressure, product and pricing offers, and customer journeys.

This initial segmentation allows for predicting the expected economic performance (through potential revenue modeling), enabling reactions in case of underperformance at a store or department after discontinuing paper leaflets. Based on these parameters, media levers can then be activated and measured, including through Marketing Mix Modeling.

Once a solid understanding of the local context and media performance has been established, it becomes possible to define an action plan to evolve the media mix and rethink customer journeys. Key questions to address include: How do we redirect users to the website and e-catalogs? What advertising formats should be used to promote the offer? What alternatives to paper leaflets can be provided to customers who used them? What in-store journeys and communications should be deployed to inform customers? How can offers be personalized effectively?

A Transversal Issue That Requires Change Management

As these questions illustrate, this is a completely transversal issue that engages a wide range of teams and expertise: media experts, store managers, sales forces, management control, digital teams, and various partners. To succeed, it is essential to unify all the relevant teams, both centrally and locally, while always keeping the customer’s interests in mind.

At all stages, it is crucial to proceed iteratively, with tests, pilot stores, and clear performance indicators. The goal is to understand, based on each scenario, which levers and messages are effective (or not), before scaling up and industrializing the system.

Ultimately, with the challenge of digitalizing catalogs, retailers have a prime opportunity to better serve their customers while strengthening and streamlining communication between central and local teams—provided they effectively manage data and anticipate change management.