DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Hello, my name is Andrew Kamphuis

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Predictions Are Tough

Wine DTC 2008-2016

200834 States

201644 States

“Source: Maryland DTC Report”

Wine DTC 2010-2015

8.72%

91.28%

10.19%

89.81%

2010 2015

“Source: ShipCompliant, Wine Institute, Gomberg Fredrikson”

Wine DTC 2010

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Online Retail 2010-2015

2009 2010 2011 2012 2013 2014 2015

34 billion40 billion

48 billion54 billion

61 billion

69 billion79 billion

“Source: http://www.practicalecommerce.com/articles/92465-4-Predictions-for-2015-Holiday-Shopping-Season”

Wine Is At A Tipping Point

Millennials Are Becoming AffluentDTC Wine Tipping Point

Buying Direct And Online Is Growing

DTC Wine Tipping Point

Wine Internet RetailersDTC Wine Tipping Point

Wine Being Sold Online Is SmallDTC Wine Tipping Point

Wine Apparel Electronics Books General Retail

3%

14%

35%

74%

9%

It’s easy to see thisdoubling or tripling

“Source: Wine Institute, SVB Tasting Room Survey, and ShipCompliant ”

DTC and the Next 5 Years5 Changes in 5 Years

Wine Clubs Are DyingLong Live The Modern Wine Club

#1

Your Wine Club

Sign Up ProcessYour Wine Club

FrequencyYour Wine Club

February May

DecemberOctober

20% Off All Wine10% Off All Non-WineReduced Shipping RatesYearly Wine Club Party

BenefitsYour Wine Club

Lets Look At Some Modern Clubs

Dollar Shave Club

Sign Up ProcessDollar Shave Club

Sign Up ProcessDollar Shave Club

Sign Up ProcessDollar Shave Club

Sign Up ProcessDollar Shave Club

MarketingDollar Shave Club

Upgrade OptionsDollar Shave Club

Dollar Shave Club

Launched 2012

2 Million Members

Valuation: $500+ Million

“Source: http://techcrunch.com/2015/06/22/dollar-shave-club-raises-75mm-to-fend-off-gillette-and-harrys/”

Blue Apron

Sign Up ProcessBlue Apron

Sign Up ProcessBlue Apron

Sign Up ProcessBlue Apron

Sign Up ProcessBlue Apron

Sign Up ProcessBlue Apron

MarketingBlue Apron

Upgrade OptionsBlue Apron

Cancel CapabilityBlue Apron

Blue Apron

Launched 2012

3 Million Meals Per Month

Valuation: $2 Billion

“Source: http://techcrunch.com/2015/06/09/blue-apron-cooks-up-135-million-in-series-d-funding/#.3amcp1:qxZk”

Club W

Sign Up ProcessClub W

Sign Up ProcessClub W

Sign Up ProcessClub W

Sign Up ProcessClub W

Sign Up ProcessClub W

Sign Up ProcessClub W

MarketingClub W

Upgrade OptionsClub W

Upgrade OptionsClub W

The Next 5 YearsOf Wine Club

Needs To Be PersonalThe Next 5 Years of Wine Club

Users Want ChoiceThe Next 5 Years of Wine Club

Join White Club Join Red Club

Instant GratificationThe Next 5 Years of Wine Club

Reorder When NeededThe Next 5 Years of Wine Club

Informative Reorder ProcessThe Next 5 Years of Wine Club

Change/ Remove Shipments Online

The Next 5 Years of Wine Club

What Can You DoToday To Prepare?

Start A User Choice ClubWhat Can You Do Today To Prepare?

Pre-Shipment EmailsWhat Can You Do Today To Prepare?

Make Marketing FunWhat Can You Do Today To Prepare?

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Personalization RulesWow The Customer Or Perish

#2

Your Website

Repeat Visitor

Club Member

Red Wine Lover

White Wine Lover

Amazon.com

Your Email

Amazon.com Email

Your Email Schedule

Amazon.com Schedule

Why Personalization?

People Are Egotistical

It Gets Results

Millennials Are Your Next Customer

Next 5 Years Of Personalization

Track User Activity

Real-Time Website Modifications

Targeted Landing Page

Previous Browsing

Leverage Cross-Device Communications

Email Frequency Personalized

Make Customers Feel LikeMore Than A Number

Deliver On Promises

What Can You DoToday To Prepare?

Say HelloWhat Can You Do Today To Prepare?

Dynamic HomepageWhat Can You Do Today To Prepare?

Smart Call To ActionWhat Can You Do Today To Prepare?

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

20% Of Your Sales Will Be GlobalLook Outside Your Own Backyard

#3

Tasting Room Customers

“Source: http://www.visitnapavalley.com/press-release-visit-napa-valley-releases-the-2014-napa-valley-visitor- industry-economic-impact-report-and-visitor-profile-121.htm ”

86% 14%

Website Customers

100% 0%

Global Possibilities

You're missing 14%

Current Global Ecommerce

Global Consumers Value USA Brands

Current Global Ecommerce

Are From Outside The USA

Current Global Ecommerce

“Source: ”“Source: http://multichannelmerchant.com/global-ecommerce-meeting-challenges-growing-opportunities”

46% Of AmazonSales

24% Of Purchases Are Made With Retailers Outside Of Their Own Country

Current Global Ecommerce

“Source: http://multichannelmerchant.com/global-ecommerce-meeting-challenges-growing-opportunities”

Ecommerce GrowthCurrent Global Ecommerce

Image Source: Trellis “Source: http://multichannelmerchant.com/global-ecommerce-meeting-challenges-growing-opportunities”

15% 26%

Challenges In Global Ecommerce

ComplianceChallenges in Global Ecommerce

ShippingChallenges in Global Ecommerce

Payment ProcessingChallenges in Global Ecommerce

Lack Of ExperienceChallenges in Global Ecommerce

Challenges Can Be Overcome

Opus One

Next 5 Years OfGlobal Ecommerce

Logistic Solutions

Technology Evolving

Increased Education

Foreign Competition

China is the Largest Opportunity

94.2%

What Can You DoToday To Prepare?

Start SmallWhat Can You Do Today To Prepare?

Focus On Your Top PerformerWhat Can You Do Today To Prepare?

Find A 3rd-Party ProviderWhat Can You Do Today To Prepare?

Don't ForgetWhat Can You Do Today To Prepare?

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Mobile RevenueWill Overtake Desktop

#4

2015 DTC Traffic

35% of website traffic

5% of sales

General Retail Stats

Almost 1/3 of sales are mobile

“Source: https://www.internetretailer.com/2015/08/18/mobile-commerce-now-30-all-us-e-commerce”

General Retail Stats

Mobile Ecommerce

“Source: http://www.emarketer.com/Article/Happy-Holiday-Season-Expected-Retailers/1012898”

32% 14%General Ecommerce

General Retail Stats

Mobile sales exceed desktop

“Source: http://marketingland.com/black-friday-weekend-e-commerce-thinned-crowds-mobile-devices-drove-traffic-153761”

BLACKFRIDAY

Micro Session is the New Norm

Short Attention Spans

While You Wait At The Dentist

While You're Commuting

When SFO Has Yet Another Delay

Information At Your Fingertips

Next 5 Years OfMobile Ecommerce

Millennials Will Buy WineWith Their Phones

Mobile Revenue WillOvertake Desktop Revenue

Seamless Shopping Experience

What Can You DoToday To Prepare?

Responsive SiteWhat Can You Do Today To Prepare?

Remove BarriersWhat Can You Do Today To Prepare?

Focus On SpeedWhat Can You Do Today To Prepare?

Call To ActionWhat Can You Do Today To Prepare?

Study Ecommerce LeadersWhat Can You Do Today To Prepare?

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Delivery - 2 Days Or LessFast, Flexible and Free

#5

Your Current Shipping Solution

5-7 Day DeliveryYour Current Shipping Solution

Weather HoldsYour Current Shipping Solution

Line Haul – 3 WeeksYour Current Shipping Solution

Your Competitors Solution

Your Competitors Solution

Drizly

Same Day

Your Competitors Solution

Club W

2 DayFedEx HAL

Your Competitors Solution

Naked Wine

Same Day DoorMan

FedEx HAL

Your Competitors Solution

Amazon

1 Hour Delivery

Consumer Expectations

Consumer Expectations

Delivery When They Want It

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

Consumer Expectations

Flexibility

vs

Consumer Expectations

Better Return Options

“Image Source: Shyp”

Next 5 Years Of Delivery

“Image Source: The Blaze”

Real Time Delivery

Delivery As Competitive Advantage

What Can You DoToday To Prepare?

Estimated DeliveryWhat Can You Do Today To Prepare?

TrackingWhat Can You Do Today To Prepare?

Tracking EmailsWhat Can You Do Today To Prepare?

Ship QuicklyWhat Can You Do Today To Prepare?

DTC and the Next 5 YearsTop 5 Trends and How To Prepare Now

Conclusion

Wine Is Not Special

Push the Ecomm Bar

Push the Fulfillment Bar

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