digital strategy for luxury brands (jewelry, watches) inhorgenta 2016 munich

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

Arne Jacobsen

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eCommercestrategies for brands

Olaf Grü[email protected]

++49 171 4826523

- 2 -Go eCommerce - Erfolgreich im Internet verkaufen!

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E-Volution of Brands


Agenda

1. Overall ecom market anddevelopments

2. eCommerce strategy options


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

TOP 12 COUNTRIES SHARE OF EUROPEAN B2C E-COMMERCE MARKETShare of European B2C e-commerce market, 2014


Cross-border online sales will growtwice as fast as domestic sales.


CBT - The modern spice routes

Source: PayPal/Nielsen, 2013 Modern Spice Routes - The Cultural Impact and Economic Opportunity of Cross-Border Shopping


Step 1: Start with the customer andwork backwards!

Who do you think is yourcustomer?

What data do you reallyhave?

How does the customerbehave?


Customer Buying Behaviour


Customer Insights: Fossil acquires wearable maker Misfit for $260 million


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 theretailer. Therefore search engines, marketplaces and comparisonshopping 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

Do it first time right!

It is painful!

Advanced: Different content fordifferent distributionchannels or retailer

clusters.

Product for Men orWomen?


2.2 B2B Portals for retailers (gated)

1)Purely information driven2)Information, products and orders3)Information, products, orders and

new customer focus


2.3 Online presence of brands: Showroom and store locator


2.3 Online presence of brands: Showroom with retailer search


Ebel sells direct in the US.


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

?


• Amazon

• Pure Player

• Specialist (Valmano etc.)

• General Merchandise (Zalando, Otto etc.)

• Flash Sales (Vente Privee, Buyvip etc.)

• eRetailer (Wempe, Christ etc.)

• Marketplaces (amazon, ebay etc.)

• Own eShop

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


Optimize for Amazon – if you want!


New Players: brands/holdings!

• In 2010 Richemont (Cartier, IWC, Montblanc) boughtNet-a-Porter, and invested in Portero (pre-ownedwatches!).

• LVMH (Moët Hennessy, Louis Vuitton) invested in ModaOperandi (flash sales) in 2012.

• PPR (Gucci, Puma, etc.) and yoox teamed up (2012) and invested in Bigfoot (by Rocket Internet).


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

Sample: P7S1 is the VC arm of media empirePro7Sat1


Baublebar: Burda beteiligt sich an $20 Mio. Runde für Schmucklabel


Existing Marketplaces support sellers heavily to sell internationally.

eBay Global Shipping Program

Amazon Europe Marketplaces Account

(seller central)

Any brand (or retailer) can easily sellonline globally.


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


Thanks! Questions?

Contact: Olaf Grüger [email protected]

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

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