ecommerce strategies for brands - heaven or hell - go ecommerce olaf grüger ispo academy 2015

- 1 -Go eCommerce - Erfolgreich im Internet verkaufen! - 1 -

eCommercestrategies for brands

Olaf Grü[email protected]

++49 171 4826523

- 2 -Go eCommerce - Erfolgreich im Internet verkaufen!

Agenda

1. Overall ecom market anddevelopments

2. eCommerce strategy options


Quote

• “Our digital commerce business is critical, as it ensures that the consumer has full access to amazing products that we make and, over the years, we are planning robust growth in this area…”

• “Digital is where our consumers live and it's the oxygen they breathe…”

• “ourwebsite.com is where we can scale our brand and category experiences without the limitations of physical space and take them to more consumers in more parts of the world.”


eCommerce in Europe reached a 352 bn EUR turnover, (~30% of global), still growing double digit.


UK, France and Germany account for60% of European eCommerce


CBT - The modern spice routes

Source: PayPal/Nielsen, 2013 Modern Spice Routes - The Cultural Impact and

Economic Opportunity of Cross-Border Shopping


Q4 is high season (e.g. @Amazon). That might not apply to product seasonality.


Step 1: Start with the customer andwork backwards!

Who do you think is yourcustomer?

What data do you reallyhave?

How does the customerbehave?


Customer Insights!Under Armour: Acquisitions of Endomondo and MyFitnessPal (earlier: MapMyFitness)

20 m users

80 million registered users


Adidas is massively collecting data across brands andcountries to generate customer insights and target usersindividually (1:1 marketing)


Customers start the offline buyingprocess at a retailer.

Choose Retailer Choose Product Buy Product

Product overviewProductinformation

Productselection

1) „Offline buying process“

Normally the customer chooses a retailer he knows.

At the retailer he chooses the product.


The buying process in the internet isdifferent: product comes first.

Choose Product Choose Retailer Buy Product

Product overviewProductinformation

Productselection

2) „Internet buying process“

In the Internet the customer chooses a product first and then the

retailer. Therefore search engines, marketplaces and comparison

shopping engines become more relevant.


30%of online buyers began researching their last online purchases at Amazon, more than double the number who began their research with Google.Source: Forrester Research survey June/2012.


The internet has a men‘s problem!


Step 2: identify your focus areas

3) Online Showroom

2) B2B Portal1) Data Management

4) eCommerce Distribution


2.1 Centralize your (Product) Data Management and optimize it!

…


2.1 Descriptions, display of productsand content need to be optimized.

1. Product titel (SEO optimized)

2. Highlights (SEO optimized)

3. Product informationen (SEO optimized)

4. Product description (SEO optimized)

5. Product pictures (check resolution!)

6. Videos (check resolution!)

7. Assign variants and colours correctly

8. Right category

9. Right search terms

10.Etc.

ToDo: write operating instructions


2.2 B2B Portals for retailers (gated)

1)Purely information driven

2)Information, products and orders

3)Information, products, orders and

new customer focus


2.3 Online presence of brands: Showroom with retailer search


Meindl displays product andprovides a general store locator.


Lowa links directly to one retailer(Globetrotter) on product page.


eTailing Business: brands change theirpolicies over time

Jack Wolfskin by globetrotter.de

2010 2014

Jack Wolfskin direct


eTailing Business: brands change theirpolicies over time

Schöffel by engelhorn.de

2010 2014

Schöffel direct


Salewa by bergzeit for Germany, but direct in other countries.


Online only brand: kavaj (FBA, 10m EUR)

kavaj-Shop via Amazon Webserviceskavaj-Shop at amazon (global)


F2C sample: Ankerdirect


4. External eCommerce DistributionRate your partners through a Scoring Model

Country CompanyName CompanyAddress CompanyCity Total GMS Online GMS PP, MC,

other

sells on

ebay, amazon,

etc.)

A/B/C Cluster?

DE company 1 address 1 city 1 124.000 24.800 PP yes A

DE company 2 address 2 city 2 12.400 2.480 MC no C

DE company 3 address 3 city 3 34.200 6.840 no C

UK company 4 address 4 city 4 224.000 44.800 no A

UK company 5 address 5 city 5 154.000 30.800 PP no A

CH company 6 address 6 city 6 664.000 132.800 MC no A

CH company 7 address 7 city 7 54.000 10.800 PP no B

AT company 8 address 8 city 8 66.000 13.200 no B

AT company 9 address 9 city 9 32.000 6.400 PP yes C

US company 10 address 10 city 10 143.000 28.600 MC yes B

FR company 11 address 11 city 11 235.000 47.000 yes B

IT company 12 address 12 city 12 9.870 0 yes C

DE company 13 address 13 city 13 34.200 6.840 PP yes C

UK company 14 address 14 city 14 20.000 4.000 MC yes C

Longlist per country Automated (Price-) Monitoring

eCommerce questionaireeCommerce Scorecard

Company Total GMS Online GMS Category 1 Category 2 Category 3 Category 4 Category 5 Potential GMS Countries

Competitors (k2, etc.)

and Listings …

Product

text

needed?

pictures

needed?

video

needed?

company 1

company 2

company 3

company 4

company 5

company 6

company 7

company 8

company 9

company 10

company 11

company 12

company 13

company 14

company 15

company 16

company 17

company 18

company 19

company 20

company 21

Brands PIM Data

?


Different online players have different strategies and need different „treatments“.

• Pure Player

• Sport specialist (bikester, wiggle, outnorth, tennis-

point, etc.)

• General merchandise (amazon, zalando, etc.)

• Flash sales (vente privee, Sportpursuit, buyvip, etc.)

• Other (Groupon, etc.)

• Multi-Channel (21sportsgroup/planet sports,

Sportscheck, Globetrotter, Sportler, Ochsner Sport,

KarstadtSports, cisalfasport, Sportarena, etc.)


Blue Tomato was bought by US sportinggoods chain Zumiez for 82 mio EUR (2012)


Frilufts AB part of Fenix Outdoor (brands: Fjällräven, etc.) owns Globetrotter (11/2014)


Bike24 bought by Riverside 12/2014


Toread buys strategic share intoTutwo (01/2015)


21sportsgroup takes over Planet Sports 1/2015


New Players with new business modells: Media forRevenue, Media for Equity, Private equity for Exit, etc.

Sample: P7S1 is the VC arm of media empire

Pro7Sat1


Different online players have different strategies and need different „treatments“.

• Pure Player

• Sport specialist (bikester, wiggle, outnorth, tennis-

point, etc.)

• General merchandise (amazon, zalando, etc.)

• Flash sales (vente privee, Sportpursuit, buyvip, etc.)

• Other (Groupon, etc.)

• Multi-Channel (21sportsgroup/planet sports,

Sportscheck, Globetrotter, Sportler, Ochsner Sport,

KarstadtSports, cisalfasport, Sportarena, etc.)

• Buying groups (Intersport, Sport2000, etc.)

• Marketplaces (ebay/GSI, amazon, rakuten/play, etc.)


Marketplaces rule in China


Existing Marketplaces support sellers heavily to sell internationally.

eBay Global Shipping

ProgramAmazon Europe

Marketplaces Account

(seller central)

Any brand (or retailer) can easily sellonline globally.


Automated (Price-) Monitoring


Sample: Retailer Monitoring


End of lifecycle products and overstocks: whichonline distribution channel in which country?


Summary

• Overall ecom market (regions, etc.)

• Step 1: Start with your customer(women!)

• Step 2: 4 focus areas

– Data Management

– B2B Portal

– Online Showroom

– eCommerce Distribution


Intro: Who I am.


Thanks! Questions?

Contact: Olaf Grüger [email protected]

Xing: https://www.xing.com/profiles/Olaf_Grueger

Linkedin: http://www.linkedin.com/in/OlafGrueger

eCommerce ist unsexy: Operational Excellence im

eCommerce

In: iBusiness Dossier WebshopTuning 03/2014

Web Analyse und Business Intelligence als Basis für die

aktive Steuerung von Webshops

In: Ralf Haberich, Future Digital Business, 12/2012

ecommerce strategies for brands - heaven or hell - go ecommerce olaf grüger ispo academy 2015

Retail

internet isdifferent

european ecommerce

ecommerce strategy options

customer insights

product seasonality

customer andwork

online buyers

online purchases