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Speaker 1: That pace of change and our ability to respond is

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Speaker 1: something that hopefully will give us competitive advantage. So first

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Speaker 1: and foremost, it’s bringing those insights to our retail partners

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Speaker 1: in themselves and combining it with their insights. So this

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Speaker 1: is not us about this is how we should do it.

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Speaker 1: This is true partnership around the insights that we have.

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Speaker 1: across the shopper journey from our perspective. But I think

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Speaker 1: the magic really happens is when you start combining it

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Speaker 1: with the retailer data that they get and how they

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Speaker 1: see that shopper journey and combining those things to give

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Speaker 1: us a real strategic and executional outlook.

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Speaker 2: Welcome to today’s episode of Brave Commerce.

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Speaker 3: I’m Rachel Tippegraph, the founder and CEO of Micmac.

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Speaker 2: I’m Sarah Hofstetter, president of Profitero.

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Speaker 3: And this is a show that talks about what’s relevant

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Speaker 3: in e-commerce for the world’s biggest brands. Sarah, one of

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Speaker 3: my favorite things to do in recent times is ask

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Speaker 3: operators how they run their businesses.

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Speaker 2: You really know how to party.

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Speaker 3: It’s so true. I’m the biggest business nerd there is.

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Speaker 2: One of the things I like to do the most

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Speaker 2: is go to other countries and visit their supermarkets.

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Speaker 4: So this is a crew you want to hang out with.

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Speaker 3: And I just interrogate the general manager and how they’re

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Speaker 3: running the store.

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Speaker 2: It’s a fair point, though, because companies, large and small,

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Speaker 2: regardless and even regardless of the industry they’re in, there’s

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Speaker 2: always something to learn. That’s why one of my favorite

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Speaker 2: books is The Corner Office by Adam Bryant, who did that,

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Speaker 2: who ran that column at the New York Times for many,

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Speaker 2: many years.

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Speaker 3: I found that inspiring. Get the book. Okay, well.

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Speaker 4: I think you can get it on like maybe Amazon.

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Speaker 3: At Profitero, do you have an operating model that you

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Speaker 3: guys follow?

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Speaker 2: There are a number of different principles that we abide by.

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Speaker 2: We’re big OKR people. Anytime we start getting into… My

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Speaker 2: team is going to hate this when I talk about it.

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Speaker 2: But this actually came from the Adam Bryant book from

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Speaker 2: some other CEO. It’s the who will do what by when.

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Speaker 4: Oh, we had a great meeting. Oh, yeah, we talked

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Speaker 4: about all these different things.

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Speaker 2: And it’s like WWDWBW, not remotely cool acronym, but it’s

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Speaker 2: the who will do what by when. And at this point,

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Speaker 2: it has become so pervasive at Profitero. But the accountability

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Speaker 2: becomes clear and our due to say ratio goes up significantly.

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Speaker 2: I don’t know if it’s as sexy as you’re thinking,

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Speaker 2: but that’s what we got.

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Speaker 3: No, I love that. I see that when I’m in

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Speaker 3: meetings with you. We are huge OKR users as well.

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Speaker 3: I actually love something that happens in our operating model.

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Speaker 3: I’m going to share it. So, Micmac, we have a

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Speaker 3: fiscal calendar, and marketing and finance and sales all operate

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Speaker 3: on that fiscal calendar. We offset that calendar by six

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Speaker 3: weeks with product and engineering. And the whole point is,

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Speaker 3: midway through a financial quarter, we do a product release.

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Speaker 3: And then that creates momentum that brings you into the

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Speaker 3: next quarter that directly impacts revenue. So I share that

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Speaker 3: because we kind of have two train track moving and

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Speaker 3: they’re offset by six weeks. It’s been a game changer

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Speaker 3: for our business. I learned it from another operator and

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Speaker 3: I immediately stole it from him and brought it to

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Speaker 3: the business.

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Speaker 2: Stolen would mean you took from somebody else. He shared

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Speaker 2: it with you.

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Speaker 3: Yeah.

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Speaker 4: You were the recipient of the sharing. You’re not a thief.

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Speaker 4: You built.

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Speaker 3: That’s the big thing. Operating metals, it’s not intellectual property.

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Speaker 3: It’s all about how you get people moving in a

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Speaker 3: direction towards a common goal. Outside of software and our

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Speaker 3: collective businesses, you look at a corporation like Bayer, which

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Speaker 3: is doing far more revenue than Profitero and Macbeth combined.

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Speaker 1: Maybe.

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Speaker 4: Maybe not.

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Speaker 2: Go on. Sure.

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Speaker 3: You’re part of Publicis now.

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Speaker 4: So there you go.

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Speaker 3: And even they’re reevaluating their operating model to drive probably

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Speaker 3: the next 10 years of growth. Yeah.

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Speaker 2: And the way that they’re doing it, it’s not about like,

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Speaker 2: you know, bringing in a whole fresh new team. It’s

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Speaker 2: about finding the right way to optimize their ways of

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Speaker 2: working and do it without sacrificing actually by accelerating speed

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Speaker 2: and quality. And those are the two most critical things

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Speaker 2: you’re going to want to do when you are running

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Speaker 2: a wellness company.

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Speaker 3: Well, who better to hear about this operating model than

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Speaker 3: an operator himself? We’re going to bring our friend onto

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Speaker 3: the show, AJ, who leads the North America commerce business

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Speaker 3: at Bayer.

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Speaker 2: Coming to you from the Adweek home office in New

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Speaker 2: York City, we have AJ Sharma. the Vice President of

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Speaker 2: E-commerce and Omnichannel for Bayer North America. Did I get

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Speaker 2: that right?

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Speaker 1: You did. Thank you very much and great to be

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Speaker 1: here with you both. I’m in great company today.

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Speaker 2: The love, it’s strong, but we’re so excited to have

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Speaker 2: you here. We want to pick your brain because it

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Speaker 2: is a big brain and you’ve done so many things

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Speaker 2: over the course of your career that to be able

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Speaker 2: to whittle it down to a 20-minute episode, always going

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Speaker 2: to be challenging. So without further ado, let’s just get

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Speaker 2: right into it.

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Speaker 1: Let’s get into it.

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Speaker 2: All right.

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Speaker 4: Let’s talk about.

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Speaker 2: Where you are now in North America, before that, you’ve

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Speaker 2: had a number of roles. But before coming to the States,

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Speaker 2: you were doing a similar role, but on a global basis. Here,

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Speaker 2: it’s more tactile.

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Speaker 4: You’ve got the P & L. You’ve got the whole

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Speaker 4: kit and caboodle. What are the key lessons?

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Speaker 2: As you start, like, thinking back over the past couple

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Speaker 2: of years, but as well as your history, both in

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Speaker 2: global or even when you were a Koch, like, what

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Speaker 2: are the key lessons that that people should think about

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Speaker 2: when thinking about their holistic go-to-market?

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Speaker 1: So I think one of the key lessons, certainly across

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Speaker 1: all of those, is I’ve been the one-man band, and

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Speaker 1: I’ve been one person with zero budget to deliver to

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Speaker 1: now running our biggest market. I think prioritization and focus

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Speaker 1: on being very clear on the jobs to be done

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Speaker 1: based on the maturity scale is probably the biggest lesson

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Speaker 1: Where I see many CPGs fall flat is we create

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Speaker 1: organizations and structures, and then the enabling functions aren’t set

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Speaker 1: up to help enable those teams. Whereas if you’re clear

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Speaker 1: on what needs to be done, organizing around those priorities

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Speaker 1: should then help with resource, budget, and focus discussions. I

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Speaker 1: think the other sort of big lesson for me, call

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Speaker 1: it key accomplishment, big lesson, is around team development and

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Speaker 1: capability building as well. I couldn’t be prouder of the

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Speaker 1: team that I have at the moment. Seeing them progress

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Speaker 1: and seeing them grow from where they were to where

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Speaker 1: they are now, much faster than I did in my career.

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Speaker 1: The biggest source of inspiration for me and my learning

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Speaker 1: at the moment comes from my team. And seeing them

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Speaker 1: progress to other parts of the organization that will now

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Speaker 1: enable e-commerce teams of the future has been a key lesson.

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Speaker 2: One of the neat things about e-com and subsequently Omni

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Speaker 2: from a talent development perspective is that you almost are

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Speaker 2: a microcosm of a GM in and of yourself. And

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Speaker 2: then when you move from taking that and owning almost

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Speaker 2: like a P & L for supply chain and sales

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Speaker 2: and marketing and finance and all of those different things

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Speaker 2: in an e-com environment, and then you almost open your

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Speaker 2: aperture to taking something on more omni-oriented, you realize, wow,

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Speaker 2: I don’t have to be a one-man band. How do

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Speaker 2: you think your teams have done that as they have

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Speaker 2: moved across other parts of the org?

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Speaker 1: I think that’s one of the things. It’s really setting

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Speaker 1: the capability that is needed for organizations. Historically, we operate

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Speaker 1: in functions. You either work in supply chain, you work

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Speaker 1: in marketing, you work in sales. I think this space

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Speaker 1: has almost forced the new capability of what we need,

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Speaker 1: which is you need to be a salesperson, you need

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Speaker 1: to be a marketing person, you need to be a

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Speaker 1: supply chain person, you need to be a finance person.

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Speaker 1: You are all mini sort of CEOs. And if you

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Speaker 1: start to think how some of the customers are operating,

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Speaker 1: and we take Amazon as an example, you’re having conversations

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Speaker 1: that go across all of those areas. So you no

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Speaker 1: longer can afford to rely on somebody else to understand

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Speaker 1: media to connect that to commercial, for example. And I

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Speaker 1: think the magic happens is when those conversations are connected.

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Speaker 1: And if you now start to combine that with a

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Speaker 1: new operating model that we’re implementing as an organization called

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Speaker 1: Dynamic Shared Ownership, or DSO, It’s designed to reduce hierarchy levels,

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Speaker 1: cut bureaucracy, and significantly accelerate decision making. And by the

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Speaker 1: end of 2024, we’ll have every part of Bayer working

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Speaker 1: in this new model.

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Speaker 3: So how does that work? Have you removed managerial layers

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Speaker 3: in the organization?

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Speaker 1: Yeah. If you think about the decision, so it’s how

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Speaker 1: do you put power into the people that actually need

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Speaker 1: to make the decisions and getting clear on those areas

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Speaker 1: rather than having to go through many different people and

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Speaker 1: going around in circles to make decisions. And actually, that

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Speaker 1: model naturally leans itself into e-commerce and omnichannel due to

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Speaker 1: the pace of change and the decisions that need to

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Speaker 1: be made. We’ve seen a combination of clear decision-making, budget

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Speaker 1: responsibility changing. And one of the biggest, most tangible examples

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Speaker 1: is our nutritionals team in the U.S. working on Oneidote,

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Speaker 1: which is our biggest nutritionals brand, in partnership with e-commerce companies.

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Speaker 1: has accelerated and reduced an innovation launch timeframe designed for

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Speaker 1: e-comm by a year. We have just launched a pre-planning

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Speaker 1: and prenatal pregnancy vitamin on Amazon, designed for Amazon, and

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Speaker 1: we’ve cut out our innovation by a year. It’s now

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Speaker 1: live and it was due in 2025.

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Speaker 3: Are the people who are working on that, were they

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Speaker 3: new to Bayer or were they like longtime Bayer employees?

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Speaker 1: A mix of both, but a majority were longtime Bayer

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Speaker 1: employees as well. So this is a new operating model

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Speaker 1: for the organization. So I think For the areas that

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Speaker 1: it leans into naturally, it’s worked really well. And then

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Speaker 1: it’s actually forcing a change of behavior and a different

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Speaker 1: approach to what was more a traditional brick-and-mortar-led infrastructure, which

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Speaker 1: is really exciting.

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Speaker 3: So the awesome thing about the role that you’re in

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Speaker 3: right now is that there are positive tailwinds in the

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Speaker 3: sector that you play. Wellness is a growing market, especially

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Speaker 3: in the U.S., but it’s a very competitive market now, right?

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Speaker 3: Because anyone can create product, source it in an environment.

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Speaker 3: launch a Shopify site, start buying Facebook ads or Amazon ads.

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Speaker 3: So what do you see as the ideal end-to-end customer

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Speaker 3: journey within wellness?

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Speaker 1: So I think for us, it’s getting really specific by category.

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Speaker 1: So we play in a number of different categories ranging

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Speaker 1: from nutritionals to pain to allergy. Each one has a

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Speaker 1: different customer journey. So rather than trying to do everything

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Speaker 1: that’s the same for everyone, it’s how do we get very,

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Speaker 1: very specific and understanding those touch points to make sure

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Speaker 1: there’s a seamless and frictionless journey for the consumer. And

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Speaker 1: for us, it’s how do Consumer shoppers and patients consume

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Speaker 1: that content now has totally changed as well. So how

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Speaker 1: do we provide the right information and education to help

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Speaker 1: them make an informed choice is one of the key

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Speaker 1: focus areas for us. And again, because it varies by category,

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Speaker 1: that’s the exciting part that we’re really getting into the

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Speaker 1: detail with. And then from a conversion perspective, when we

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Speaker 1: start looking at what does that mean ultimately from a

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Speaker 1: retail point of view, I think diversification of where we

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Speaker 1: play rather than being over-reliant on one particular source has

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Speaker 1: been one of the key elements to our success. And again,

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Speaker 1: the key thing for us is solving for that healthcare

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Speaker 1: and consumer and shopper and patient need as opposed to

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Speaker 1: solving and creating things that are rooted in internal P & Ls.

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Speaker 1: And again, there’s a fine line in terms of what

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Speaker 1: is consumer insight versus solving for an internal P & L.

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Speaker 3: How does quick commerce manifest in these categories?

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Speaker 1: So quick commerce has evolved quite a bit, and it

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Speaker 1: leans into certain categories for us more than others. So

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Speaker 1: if you think around incidence-led categories like pain, I’ve got

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Speaker 1: a headache and I need it now, or allergy, I

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Speaker 1: think we’re leaning in.

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Speaker 3: Hangover.

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Speaker 1: We’re leaning into those, which has sort of determined how

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Speaker 1: specific we can get with assortment, portfolio categories. and the

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Speaker 1: strategies around that, rather than just putting everything. You look

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Speaker 1: at allergy, for example, how do we use and double

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Speaker 1: down on last mile delivery for allergy, knowing that if

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Speaker 1: we can acquire a consumer, they will then hopefully buy

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Speaker 1: bulk in future, wherever that may be. So for us,

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Speaker 1: it’s understanding that touch point, the role that last mile

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Speaker 1: and quick commerce has to play, and then activating against it.

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Speaker 2: Can we go a little bit deeper into how your

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Speaker 2: customers are working individually to support you. Obviously, there’s been

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Speaker 2: a lot of conversation about Amazon Pharmacy. We talked about

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Speaker 2: this even before the recording, all the infrastructure that the

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Speaker 2: pharmacy companies have been getting into, as well as mass.

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Speaker 2: How do you even think about the pace that each

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Speaker 2: one of those are changing? How do you keep up

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Speaker 2: with it? And what gets you the most excited?

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Speaker 1: That pace of change and our ability to respond is

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Speaker 1: something that hopefully will give us competitive advantage. So first

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Speaker 1: and foremost, it’s bringing those insights to our retail partners

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Speaker 1: in themselves and combining it with their insights. So this

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Speaker 1: is not us about, this is how we should do it.

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Speaker 1: This is true partnership around the insights that we have

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Speaker 1: across the shopper journey from our perspective. But I think

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Speaker 1: the magic really happens is when you start combining it

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Speaker 1: with the retailer data that they get and how they

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Speaker 1: see that shopper journey. and combining those things to give

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Speaker 1: us a real strategic and executional outlook. We talked around Amazon,

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Speaker 1: for example, about their uber-fast pharmacy delivery that they’re launching

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Speaker 1: in New York. That will be a game changer when

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Speaker 1: it comes to solving healthcare needs. And when I talk

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Speaker 1: around healthcare, I’m thinking broader than just individual products and categories.

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Speaker 1: Think about RxDelivery and overall healthcare. But outside of, call it,

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Speaker 1: the delivery infrastructure, This is more around how they’re using

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Speaker 1: AI to help process that information coming in that allows

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Speaker 1: them to respond and process in a much faster way.

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Speaker 1: So something that was going to take an hour for

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Speaker 1: a pharmacist to process can be done in minutes. You

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Speaker 1: then combine that with delivery. It changes the role of

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Speaker 1: how people perceive or could get healthcare products.

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Speaker 2: I mean, there’s so much to unpack, even in that

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Speaker 2: announcement alone. If you think about not just the speed

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Speaker 2: of time, but even if you go back to the

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Speaker 2: early months of COVID and how hard it was to

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Speaker 2: get pharmacists even to come to work. And so the

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Speaker 2: entire model of whether it was rolling out vaccines or

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Speaker 2: dealing with just other sicknesses that were happening during COVID,

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Speaker 2: everything became reliant on the labor market of pharmacists.

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Speaker 4: Now you’re saying AI has.

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Speaker 2: The power to accelerate these time to fills, probably making

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Speaker 2: the pharmacists that are here much more effective at their jobs,

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Speaker 2: reducing errors. That just changes the entire dynamic. Now we’re

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Speaker 2: having a conversation about literally saving lives, not just about

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Speaker 2: P & L ownership on e-commerce, right?

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Speaker 1: And once they complete that journey, it’s still a bit

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Speaker 1: fragmented at the moment, but developments like these, and if

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Speaker 1: they can combine that with the infrastructure that they have,

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Speaker 1: What does that mean for Prime, for example? Suddenly, Prime

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Speaker 1: now becomes about healthcare benefits rather than just music and video.

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Speaker 1: There’s a lot of directions that this could take.

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Speaker 3: The question that I have is, you know, are all

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Speaker 3: these services catering to the upper middle class and 1%?

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Speaker 3: And when you think about your portfolio and you think

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Speaker 3: about middle America, low-income America, where healthcare is so needed,

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Speaker 3: how do you also think about your brands against, like,

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Speaker 3: the private label ecosystem?

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Speaker 1: Yeah, really good question. So I think, you know, if

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Speaker 1: you look at our overall healthcare mission, which is health

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Speaker 1: for all and hunger for none, accessibility and building health

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Speaker 1: equity across all demographics in all parts of the US

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Speaker 1: is absolutely crucial for us in terms of what we

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Speaker 1: stand for as an organization. Now, when we start looking

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Speaker 1: at that accessibility from an infrastructure and retailer point of view, yes,

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Speaker 1: there is the likes of Amazon that have that coverage.

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Speaker 1: But let’s not forget, call it our brick and mortar partners. 80%

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Speaker 1: of our organizational business is still through brick and mortar.

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Speaker 1: So the role of those channels, and let’s take drug,

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Speaker 1: for example, is not going away. I think how they

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Speaker 1: involve and the role that they play to service will

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Speaker 1: change as consumer and shopper behaviors change. But if you

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Speaker 1: think about accessibility, let’s take CVS as an example. CVS

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Speaker 1: have a massive physical footprint.

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Speaker 4: And massively long coupons.

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Speaker 1: And massively long coupons.

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Speaker 3: So true. They haven’t fixed that.

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Speaker 2: I mean, they are very personalized. I think that was

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Speaker 2: like probably the first real way that I could explain

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Speaker 2: to my family what 1P data can do.

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Speaker 4: But anyway, as you were.

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Speaker 1: It’s a really good point, right? Because if you start

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Speaker 1: looking at what CVS are doing with their physical footprint

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Speaker 1: and then combining it with their retail media arm with CMX,

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Speaker 1: their information that they potentially have from a OTC perspective,

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Speaker 1: as in like over-the-counter products, if you start combining that

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Speaker 1: with what shoppers are doing in-store, they’re actually sitting on

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Speaker 1: some very powerful information that if they connect, it could

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Speaker 1: give them a good competitive advantage around overall healthcare by

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Speaker 1: combining those to actually service. And you then combine that

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Speaker 1: with the power that they have with the physical footprint.

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Speaker 1: There’s something in there, but at the same time, they

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Speaker 1: need to get their infrastructure right. And when I talk CVS,

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Speaker 1: I’m talking drug in general.

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Speaker 2: Well, CBS has got like Aetna. It’s where do each

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Speaker 2: one of these guys expand? Like you see that now

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Speaker 2: that they’re getting into retail media, it’s very interesting. They

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Speaker 2: obviously have this massive RX business that is the foot

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Speaker 2: traffic driver more than anything else. So you kind of

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Speaker 2: look at each one of these retailers and you say, okay, well,

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Speaker 2: how are each one of these evolving.

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Speaker 4: For the changing needs of customers?

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Speaker 2: So you see an e-commerce giant like Amazon getting into

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Speaker 2: the pharmacy business.

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Speaker 4: You see a pharmacy.

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Speaker 2: retailer getting into the insurance business.

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Speaker 4: What’s Walgreens going to do?

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Speaker 1: Yeah, yeah. And again, for us, it’s combining the opportunity

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Speaker 1: across all of these. So back to the original question of, well,

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Speaker 1: how do we get to some of those areas? It’s

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Speaker 1: not one or the other. It’s knowing the role that

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Speaker 1: each one has to play and using them specifically that

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Speaker 1: makes sense for that consumer and patient.

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Speaker 3: We talked a lot about overall headwinds in the ecosystem,

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Speaker 3: the roles of retailers, the role of the portfolio strategy.

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Speaker 3: What about the role of technology that allows you to

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Speaker 3: connect with consumers and maybe even retailers? What do you

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Speaker 3: see as the fundamental technology stack that you need to

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Speaker 3: do business in your category?

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Speaker 1: Really good question. And I think technology, tools, data, systems,

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Speaker 1: they underpin everything that we do. So call it there’s

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Speaker 1: the obvious areas of execution, which would include basic PIM infrastructure,

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Speaker 1: digital shelf, and the insights that they can provide for

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Speaker 1: day-to-day execution in terms of how we syndicate. I think

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Speaker 1: we’re thinking about it a little bit broader in terms

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Speaker 1: of go-to-market transformation. So how do these tools and technology

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Speaker 1: impact supply chain? How can they inform our innovation strategy?

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Speaker 1: How can we use it to reduce inefficiencies across the

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Speaker 1: value stream? And we’re thinking about it across all of

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Speaker 1: those four touchpoint areas. So the first one’s portfolio. How

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Speaker 1: can we use search data to inform future trends and

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Speaker 1: be more proactive rather than reactive and really reducing our

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Speaker 1: innovation timeframe? And that one-a-day example was a good example

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Speaker 1: of how we’ve done that. The second one, or the

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Speaker 1: second big pillar is around, it’s less about the data

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Speaker 1: because there’s so much data out there. I think for us,

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Speaker 1: it’s knowing what to do with it. So how do

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Speaker 1: we stitch it all together? Because each one of the

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Speaker 1: data sources has an individual area that we need to

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Speaker 1: put together. I certainly haven’t come across anyone that has

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Speaker 1: all the data pieces that we need. So for us,

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Speaker 1: it’s more about knowing what to do with it. And

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Speaker 1: then the third element within that is… How is it

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Speaker 1: being adopted and how is it actually being used within

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Speaker 1: the organization? But then when we start, we talked earlier

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Speaker 1: on about AI, for example, how can we reduce those

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Speaker 1: inefficiencies or give more time back to our key partners

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Speaker 1: to spend time to service our consumers is how we’re

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Speaker 1: thinking about it.

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Speaker 2: I’m going to ask you one question before Rachel goes

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Speaker 2: to our famous last question.

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Speaker 4: Do you pronounce it vitamin or vitamin?

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Speaker 1: Oh, it’s terrible now. Every time I go back home now,

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Speaker 1: I say vitamin, but it comes out. Normally, and I

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Speaker 1: should say vitamin.

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Speaker 2: But you’re in a North America role.

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Speaker 1: I know. It’s terrible.

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Speaker 2: I struggle with the same thing, working with the multinational teams.

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Speaker 2: And I also talk a lot about when you’re investing

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Speaker 2: your time, how much is on vitamin versus medicine, how

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Speaker 2: much of your time is spent fixing problems versus preventative.

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Speaker 2: And the first time I did it with my UK team,

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Speaker 2: they were like, uh, what? So as a transplant… In

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Speaker 2: the vitamin business, this is my burning question. Rachel wants

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Speaker 2: to know the bravest thing you’ve ever done. I want

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Speaker 2: to know how you pronounce the word.

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Speaker 1: You know what? I get corrected a lot, and people

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Speaker 1: will call me out on it.

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Speaker 3: Do you prefer your vitamins in capsule or gummy form?

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Speaker 1: Both, depending on where I am.

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Speaker 3: Sarah?

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Speaker 1: But I’m getting used to my gummies.

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Speaker 2: Now, actually.

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Speaker 4: Gummies, but they’re harder to come by. Kosher. Gelatin.

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Speaker 3: Market opportunity.

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Speaker 1: Oh, my God, there’s feedback right there.

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Speaker 4: I put it in the ratings and reviews, dude.

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Speaker 3: Before we get to our famous last question, while you

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Speaker 3: have a North America role, the reality is… It’s global.

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Speaker 3: You sit in a seat where you can see everything

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Speaker 3: that’s happening. And we know in food, for example, what

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Speaker 3: happens outside of the U.S. eventually makes its way to

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Speaker 3: the U.S. So within overall health and wellness, what are

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Speaker 3: you seeing outside of the U.S. that you think might

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Speaker 3: enter the U.S. market?

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Speaker 1: So it’s funny. It’s a combination of all the things

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Speaker 1: that we’ve discussed. And as you start looking outside of

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Speaker 1: the U.S. and you look at what the East is doing,

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Speaker 1: you know, they are far, far ahead in terms of

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Speaker 1: some of this tools, tech, data, technology. One of the

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00:21:42,010 –> 00:21:44,330
Speaker 1: examples from a tech point of view, and then I’ll

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Speaker 1: come on to a retail point of view, is integration

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Speaker 1: of AI and technology into everyday things. So even if

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Speaker 1: you take refrigerators as an example, Samsung are launching their

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00:21:55,180 –> 00:21:59,040
Speaker 1: first AI fridge where it recognizes items as you put

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Speaker 1: it in and can sort of recommend recipes and tell

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Speaker 1: you when they’re going to be out of date. That

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Speaker 1: technology existed in China three years ago. So if you

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Speaker 1: take that technology and think about healthcare from an integrated

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00:22:11,550 –> 00:22:15,350
Speaker 1: medicine cabinet and you start to combine, take your allergy tablet,

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00:22:15,369 –> 00:22:17,850
Speaker 1: here’s the pollen count for today. You need to automatically

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Speaker 1: refill at a touch of a button. You could do it.

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Speaker 1: This is where it’s going. We talked about frictionless consumer journeys.

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00:22:25,470 –> 00:22:28,810
Speaker 1: Taking some of that friction out using technology is going

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Speaker 1: to be key. And again, this is not even technology

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Speaker 1: of the future. It exists. It just hasn’t made its

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Speaker 1: way here yet. Most of the trends that we’ve seen

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00:22:37,520 –> 00:22:40,340
Speaker 1: usually make their way slowly, if you take social commerce

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Speaker 1: as an example as well. And then more interestingly, from

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Speaker 1: a retail point of view, this very notion of marketplace,

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Speaker 1: you know, we talk about 3P here. 3P existed in

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Speaker 1: the East. It’s their business model for a number of years.

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Speaker 1: And if you start looking at Timu, it was the

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Speaker 1: most downloaded shopping app last year. and if you think

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Speaker 1: about the recent announcements, is that they will open up

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Speaker 1: their marketplace to US and European sellers with increasing fees

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Speaker 1: across other platforms. It will give sellers an opportunity to

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Speaker 1: sort of broaden their reach. And you can see from

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00:23:15,270 –> 00:23:17,950
Speaker 1: Timo’s point of view, it will help them expand into

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Speaker 1: categories and areas that they haven’t been able to, and

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Speaker 1: they’re increasing their footprint. So we talked about diversification. I

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Speaker 1: think this whole very notion of commerce rather than marketplace

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Speaker 1: versus 1PE the lines will blur very quickly. Now, where

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Speaker 1: there is an opportunity, I think we also have to

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Speaker 1: be mindful of when it comes to unauthorized sellers and

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Speaker 1: how do we build trust, particularly within healthcare. And this

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Speaker 1: is where strong partnerships with the retailers would come in.

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Speaker 3: Yeah, absolutely. I mean, we’re already seeing a lot of

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Speaker 3: what you’re describing come to life with TikTok shops. So, AJ,

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Speaker 3: we got to ask you our famous last question. What’s

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00:23:51,850 –> 00:23:53,210
Speaker 3: the bravest thing you’ve ever done?

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Speaker 1: I thought about this a lot. The bravest thing that

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Speaker 1: I’ve done is actually… probably more recently than early on

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00:24:01,240 –> 00:24:05,820
Speaker 1: in my career, both professionally and personally, is I followed

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00:24:05,859 –> 00:24:10,119
Speaker 1: my heart a lot more in making decisions, both professionally

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Speaker 1: and personally. I tend to think with my head. You

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00:24:13,410 –> 00:24:16,030
Speaker 1: tend to think and go with the safe, logical options.

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00:24:16,770 –> 00:24:20,130
Speaker 1: And the older I get, following my gut, following my

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00:24:20,190 –> 00:24:22,590
Speaker 1: heart has been the bravest thing that I’ve done. And

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00:24:22,630 –> 00:24:25,209
Speaker 1: it may not sound brave, but actually, when you sort

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00:24:25,230 –> 00:24:28,129
Speaker 1: of distill down decisions that you make, about whether it’s

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00:24:28,170 –> 00:24:31,430
Speaker 1: pleasing other people, whether it’s doing things for different reasons

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Speaker 1: or against things that you believe in. Yeah, going with

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00:24:34,140 –> 00:24:35,840
Speaker 1: my gut and following my heart is actually quite a

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00:24:35,859 –> 00:24:38,360
Speaker 1: brave thing. And, you know, you asked me five years

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00:24:38,400 –> 00:24:40,580
Speaker 1: ago if I’d be running sort of our business in

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00:24:40,640 –> 00:24:42,820
Speaker 1: North America, I probably would have laughed at you. Probably

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00:24:42,840 –> 00:24:45,720
Speaker 1: spend a whole podcast on following your heart.

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Speaker 2: Or just laughing at all the things that we’re doing.

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00:24:48,220 –> 00:24:50,889
Speaker 2: Five years later, we can do that as well. Well,

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Speaker 2: we’ll have to have you back on the show certainly

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00:24:53,970 –> 00:24:54,730
Speaker 2: sooner than that.

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Speaker 1: I look forward to the next one.

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Speaker 3: Well, thanks, AJ. This was pretty awesome. We just recorded

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00:24:59,760 –> 00:25:03,370
Speaker 3: with you in a live Adweek studio. First time ever.

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00:25:03,670 –> 00:25:05,210
Speaker 3: And I think it worked out quite well.

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00:25:05,550 –> 00:25:08,169
Speaker 1: This was great. Thanks for having me. Really enjoyed it.

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00:25:09,890 –> 00:25:14,190
Speaker 3: Well, if you enjoyed learning about Bayer’s operating model from AJ,

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00:25:14,380 –> 00:25:17,439
Speaker 3: and you’re curious about thinking about other companies that have

504
00:25:17,480 –> 00:25:22,040
Speaker 3: gone through transformation, you can go way back into our

505
00:25:22,100 –> 00:25:26,040
Speaker 3: episode archives and hear from the CEO of Dick’s Sporting Goods,

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00:25:26,160 –> 00:25:29,970
Speaker 3: Lauren Hobart, who talks about the transformation of their operating model.

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00:25:30,770 –> 00:25:34,020
Speaker 3: Or go check out a more recent episode from Sarah Travis,

508
00:25:34,060 –> 00:25:37,160
Speaker 3: who’s the president of Roundel at Target, on how they’re

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00:25:37,200 –> 00:25:41,440
Speaker 3: transforming their retail business into a media business. If you

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00:25:41,480 –> 00:25:44,390
Speaker 3: love what you’re hearing, we got a lot more. So

511
00:25:44,410 –> 00:25:47,850
Speaker 3: go through the archives, tell a friend, write a review,

512
00:25:48,250 –> 00:25:50,150
Speaker 3: share on LinkedIn. Thanks for listening.

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00:26:08,540 –> 00:26:12,530
Speaker 1: Hi, I’m Jackie Cooper, Global Chief Brand Officer at Edelman

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00:26:12,550 –> 00:26:15,310
Speaker 1: and the host of Touch of Truth, a new podcast

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00:26:15,369 –> 00:26:18,810
Speaker 1: launching on the Adweek Podcast Network. My dad gave me

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00:26:18,850 –> 00:26:20,730
Speaker 1: this incredibly smart piece of advice.

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00:26:20,970 –> 00:26:23,710
Speaker 4: Meet everyone once. As a result, I’ve met some of

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00:26:23,730 –> 00:26:26,500
Speaker 4: the most fascinating and inspiring people on the planet.

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00:26:26,880 –> 00:26:29,879
Speaker 3: Now on Touch of Truth, we’re coming centre stage and

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00:26:29,940 –> 00:26:33,240
Speaker 3: sharing the mic to experience stories of truth, insights and

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00:26:33,280 –> 00:26:36,000
Speaker 3: visions for the future that will challenge your way of thinking.

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Speaker 1: Touch of Truth is available wherever you listen to podcasts.

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Speaker 4: New episodes come out every Tuesday.

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Speaker 1: I do hope to see you there.