Digital strategy for luxury brands (jewelry, watches) Inhorgenta 2016 Munich

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Transcript of Digital strategy for luxury brands (jewelry, watches) Inhorgenta 2016 Munich

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

Arne Jacobsen

BBaldessariniBaume & MercierBERINGBlox UhrenBOSSBronzallureBruno SöhnleBuddha to Buddha SchmuckBurberry

CcaïCalvin KleincapolavoroCaravelle New YorkCASIOCertinaCHRISTChrysalis SchmuckCitizenColibri AccessoiresCowstyle

DDaniel WellingtonDesignhütteDieselDKNYDugena

EEBELEmporio ArmaniEngelsruferEspritEsprit Collection Schmuck

FFestina UhrenFlik FlakFossilFriedrich

GGANTGervidaGucciGuess

HHamiltonHanowaHeisse und SöhneHenry London UhrenHirsch

JJacob JensenJacques LemansJawboneJETTEJoop!Junkers

KKarl LagerfeldKeeeArt SchlüsselaccessoiresKerbholz

LLacosteLiebeskind Uhrenlola and graceLongines

MMarc by Marc JacobsMarco BicegoMarjana von BerlepschMaurice LacroixMelanOMichael KorsMidoModalo

NNixonNOELANI

PPANDORAPearl Style by GellnerPesaventoPolicePrinzessin Lillifee

QQ&Q SmileSolarQuinnQuoins

RRadoRaymond WeilRosendahlRuntastic Uhren

SSacherSANSIBARSchoeffelSeikoSence CopenhagenShore Projects UhrenSkagenSnö of Sweden Schmucks.OliverS. T. DupontSteel by ChristSwarovskiSwatchSwiss Military Hanowa

TTAG HeuerThe OneTHOMAS SABOTimexTissotTom TailorTommy HilfigerTONI GARDTory BurchTOV EssentialsTriwaTW Steel

UUnion GlashütteUNO de 50 Schmuck

WWewoodWindrose

XXEN

ZZeppelinZoccai

Online shop ecommerce webshopPandora

FossilMioreGoldmaidSwarovskiElliBob C.PilgrimAmorMike Ellis New YorkEspritAdrianaRoberto CavalliViventymonomaniaBella DonnaValero PearlsChristDyrberg/KernJoop!LeonardoKettenworldGuesssweet deluxeSixs.OliverNominationPierre CardinMorellatoFrida NybergCelestaSpirit of New YorkOrpheliaDiamonfireInCollectionsRafaela DonataHeartbreakerDrachenfels DesignNaavaCiternaZEEmeCarissima GoldByJoy

eCommercestrategies for brands

Olaf Grügergo@goecommerce.de

++49 171 4826523

- 2 -Go eCommerce - Erfolgreich im Internet verkaufen!

AlienworkAmonfineshopAMPM24 AndoerBABAN Better DealzBewellCasio ChianrliuCLUSE Daniel Wellington Diesel DIGIFLEX EasyRead Time TeacherEmporio Armani ESPRIT Fossil FoxnovoFranterdHITOP InvictaJewelryWeJSDDE KezziLego

Michael KorsMike Ellis New York MVMT New Trend - Love forAccessoriesOozooOulmPure Time Pure Time LED-RETRO-UHR Pure-Kinderuhren Ravel s.OliverSannysisSanwoodSharkSIX SkagenSouartsSt. Leonhard SuuntoTime Piece TO Federstege Tommy Hilfiger UkamshopVovotrade® WEIDE

Winner 4you Design AbeilloAmoonìcAmoonícANEWISH Angel for Angel Argenti di LussoBeadaholiqueChaomingzhencnWayCulater® D'amelieDiamoreElli Engelsrufer FashmondFlorayFossil Geschenke Schmuck goldmaidGolechaHolyPinkInternational Connection JewelryWeJewowJSDDE KONOV LatigerfLe Premium Liebeskind Berlin LillyMarie® MARENJA Melina Merdia

MioreMiss LovieMunkiMixPandora Party Discount Pauline & Morgen pewterhooterPixnor® SilberDreamSILBO SongmicsSongmics-Display TEROON by Grom Schmuck Yazilind

E-Volution of Brands

- 3 -Go eCommerce - Erfolgreich im Internet verkaufen!

Agenda

1. Overall ecom market anddevelopments

2. eCommerce strategy options

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

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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

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

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CBT - The modern spice routes

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

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Step 1: Start with the customer andwork backwards!

Who do you think is yourcustomer?

What data do you reallyhave?

How does the customerbehave?

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Customer Buying Behaviour

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

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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.

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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.

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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.

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The internet has a men‘s problem!

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Step 2: identify your focus areas

3) Online Showroom

2) B2B Portal1) Data Management

4) eCommerce Distribution

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

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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?

- 18 -Go eCommerce - Erfolgreich im Internet verkaufen!

2.2 B2B Portals for retailers (gated)

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

new customer focus

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2.3 Online presence of brands: Showroom and store locator

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2.3 Online presence of brands: Showroom with retailer search

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Ebel sells direct in the US.

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

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

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F2C sample: Ankerdirect

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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

?

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• 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“.

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Optimize for Amazon – if you want!

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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).

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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

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

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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.

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Sample: Retailer Monitoring

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

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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

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Thanks! Questions?

Contact: Olaf Grüger go@goecommerce.de

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

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