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Transcript of The Internationalisation of eCommerce · PDF fileinternationalisation of eCommerce Online...
e-dition 2014
The Internationalisation of eCommerce
The Global Retail e-mpire
OC&C and Google have collaborated to understand internationalisation of eCommerce
Online Pureplays
(750)
Multichannel Retailers
(630)
Vertically Integrated
Brands (120)
Amazon
Asos
ebay
Adidas
Beats
Bugaboo
C&A
Decathlon
Evans Cycles
USA
UK
Germany
France
Nordics
Netherlands
...and a broader universe of 1,500
players
6 countries accounting for over
half of global eCommerce sales...
Source: Euromonitor, OC&C analysis
Farfetch
Photo Box
Zalando
IKEA
Macy’s
Selfridges
Burberry
Hermes
Montblanc
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Search volumes are growing fast and are highly global
Search Volume Across 6 Geographies in Study, 2011-13
Indexed to 100, 2011
145124
100
2013 2012 2011
Local
searches 42%
Global
searches
58%
Source: Google Search Data; OC&C analysis
Search Data Used in Study
Google’s proprietary brand search
data used throughout study
Local searches refer to searches
for retailers in their ‘home’ country,
for example searches for Amazon
made by American consumers...
...whereas global refers to
consumers searching for brands
outside of their home market
Google data supplemented with
first and third party research
Growth in Total Search Volume
Share of Search by Retailer Origin
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$2bn
$2bn
$2bn
$11bn $7bn
$1bn
2020 Estimated
Export Value: $130bn
Growth Rate: c.30%pa
Percentage of
Total eCommerce: 18%
$25bn of eCommerce is exported; estimated to be $130bn 2020
Source: Google Search Data Euromonitor, Metapack, OC&C analysis
Total 2013 – $25bn
8% Total eCommerce
eCommerce Export1 Value, 2013
$bn2, %
1. Based on the volume of parcels sent internationally, excludes domestic demand
2. Numbers rounded to the nearest bn
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$720m
Our 6 markets are highly interconnected trading $6bn
International Trade Flow, 2013
Area of Circle Proportional to Value of Trade
France Germany Netherlands Nordics UK USA
$70m $160m
$70m $200m
$1,180m $950m
American companies
ship $950m of parcels
to the UK
$200m $80m
$470m
$70m $30m
$250m
$30m $40m
$100m $20m
$270m
$60m
$40m $240m
$580m
$210m
$80m
$130m
$200m
$50m
$60m
$90m
$10m
UK companies ship
$1,180m of parcels
to the USA
Source: Google Search Data Euromonitor, Metapack, OC&C analysis 4 21
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Total Fashion General
Merchandise Home & DIY
Health &
Beauty Other
UK
USA
Germany
Nordics
Netherlands
France
The UK has the largest trade surplus driven by Fashion
Source: Google Search Data, OC&C analysis
Country Category Flow, 2013
Circle Area Proportional to Value of Export / Import ($m)
Net Exporter Net Importer
1,190 1,220
140
170
50 50
180
390
470 190
100 170
190
270
15 15 15 20
50 60 50 10 10 60
260
390
50 15 60
850 830
40 100 20
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Retailers are also succeeding in markets further afield
Top 5 Search Countries & per Capita Search, 2013
Ranked by Total Volume of Search
Source: Google Search Data, OC&C analysis
USA UK France Germany Netherlands Scandinavia
1 Canada USA Spain France Belgium Turkey
2 UK France Belgium Italy Germany Poland
3 Australia Ireland UK Turkey France Germany
4 Mexico Australia Italy Nether-
lands USA UK
5 Brazil Germany Germany Austria UK Italy
Verbaudet and
Vente Privee lead
German interest in
French retailers
Limango Turkey is 5%
of search export and
the 2nd largest search
term behind Zalando
France
Led by Asos the
key drive of the
UK’s Fashion
export and 3rd
largest search
export from the UK
at 1.7% of total
Luxury menswear
such as
Suitsupply, Oger
and McGregor
Health and beauty
accounts for over half of
US-Brazil searches
Health & Beauty
generates over
17% of search into
Nordics from
Turkey & Poland
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0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44
Ave
rag
e #
Lan
gu
ag
es
Off
ere
d
Average # Countries Delivered To
France
Netherlands
Nordics
USA
UK
Germany
Multi-language websites and global delivery enable expansion
International Proposition of Leading e-retailers by Country, 2013
Source: Website checks September 2013, OC&C analysis
% UK Retailers Offering...
34%
German 36%
Chinese 12%
Italian 14%
Spanish 24%
French
Top 50 e-Retailers by Country1
% US Retailers Offering...
Italian 20%
Dutch 22%
French 26%
German 38%
Spanish 46%
% DE Retailers Offering...
Italian 34%
Polish 40%
Dutch 46%
French 46%
English 48%
% NL Retailers Offering...
Spanish 8%
Italian 10%
English 27%
French 31%
German 35%
% Nordic Retailers Offering...
Czech 17%
French 17%
German 17%
Polish 20%
English 39%
% FR Retailers Offering...
German
Dutch 24%
32%
Spanish 34%
Italian 34%
English 38%
1. Determined by domestic Google searches
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Country
Total
Score
(100)
International Queries (100)
Indexed
Share
Indexed
Volume
Indexed
Growth
Rate
16 Spreadshirt DE 66 81 52 50
17 Shopbop US 66 64 59 57
18 The Outnet UK 66 73 55 52
19 Mr Porter UK 66 72 54 54
20 Prodirectsoccer.com UK 65 71 56 52
21 Etsy US 65 32 70 72
22 Wiggle UK 64 58 59 58
23 mytheresa DE 64 70 52 53
24 Beauty Bay UK 63 79 46 49
25 Redcoon DE 62 61 59 49
26 Nasty Gal US 62 50 58 60
27 Vente-Exclusive.com NL 60 85 46 37
28 Coolblue NL 60 61 50 53
29 Boohoo UK 60 32 61 67
30 Limango DE 59 95 70 -
Country
Total
Score
(100)
International Queries (100)
Indexed
Share
Indexed
Volume
Indexed
Growth
Rate
1 eBay US 100 79 100 93
2 Amazon US 97 67 96 100
3 Zalando DE 87 71 79 88
4 asos.com UK 80 63 77 79
5 Book Depository UK 76 100 59 53
6 iHerb.com US 76 90 58 61
7 Bonprix DE 75 65 72 68
8 Zooplus DE 74 79 62 62
9 Net-a-porter UK 74 81 65 57
10 GlossyBox DE 73 93 56 54
11 Photobox UK 73 74 63 62
12 Farfetch UK 72 96 51 53
13 Allposters.co.uk UK 71 99 56 41
14 Fab.com US 69 67 59 62
15 Chain Reaction
Cycles UK 67 68 59 57
The pureplay champions are led by eBay, Amazon & specialists
1. International Share / Volume of queries both based on 2013 2. Volume of International Queries and international query growth on logarithmic scale
Amazon and ebay are the
first truly global online
empires
Specialists
travel well
British and German players spearhead a new breed of global e-retailers
Source: Google Search Data, OC&C analysis
Pureplay Top 30 International e-Retailers
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Country
Total
Score
(100)
International Queries (100)
Indexed
Share
Indexed
Volume
Indexed
Growth
Rate
16 Abercrombie & Fitch US 69 70 72 58
17 Urban Outfitters US 68 42 78 84
18 Yves Rocher FR 67 56 71 72
19 GAP US 67 45 77 77
20 Topshop UK 67 37 79 85
21 Disney Store US 66 51 72 75
22 American Apparel US 66 51 73 73
23 Foot Locker US 66 39 78 82
24 Clarks UK 65 48 72 73
25 Agent Provocateur UK 63 70 60 54
26 Tiffany & Co US 62 53 65 66
27 Suitsupply NL 62 67 53 61
28 Kickz DE 61 69 57 53
29 ILVA Nordics 61 51 59 71
30 Monki Nordics 61 63 56 59
Country
Total
Score
(100)
International Queries (100)
Indexed
Share
Indexed
Volume
Indexed
Growth
Rate
1 IKEA Nordics 100 94 100 100
2 H&M Nordics 98 99 94 95
3 Avon US 90 94 87 84
4 Apple Store US 89 70 97 96
5 Oriflame Nordics 86 98 78 74
6 C&A NL 86 88 79 84
7 Sephora FR 83 75 82 90
8 Pandora Nordics 80 100 67 64
9 Mediamarkt DE 79 83 78 70
10 Decathlon FR 78 61 86 86
11 L’Occitane FR 76 85 67 68
12 Toys R Us US 75 50 87 88
13 Leroy Merlin FR 73 47 83 88
14 QVC US 69 38 82 87
15 Forever 21 US 69 37 82 88
The Nordics feature heavily amongst multichannel champions
Source: Google Search Data, OC&C analysis
Multichannel Top 30 International Retailers
Nordic retailers
perform very well
1. International Share / Volume of queries both based on 2013 2. Volume of International Queries and international query growth on logarithmic scale
Mid-market fashion retailers have achieved global coverage through a
limited store estate and prominent online presence
Very few UK retailers
have internationalised
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Country
Total
Score
(100)
International Queries (100)
Indexed
Share
Indexed
Volume
Indexed
Growth
Rate
16 Mexx NL 84 88 78 77
17 G-Star NL 83 67 89 92
18 Marc O'Polo DE 83 67 89 92
19 Chanel FR 82 93 88 52
20 Longchamp FR 81 83 82 70
21 Speedo UK 81 90 73 69
22 Ralph Lauren US 80 61 89 92
23 Scotch & Soda NL 80 82 73 77
24 Dior FR 80 87 81 61
25 Bose US 79 70 84 80
26 Beats US 78 68 81 83
27 Bjorn Borg Nordics 77 100 63 51
28 Gaastra NL 76 82 67 69
29 Estee Lauder US 74 70 77 69
30 Jimmy Choo UK 73 82 78 46
Country
Total
Score
(100)
International Queries (100)
Indexed
Share
Indexed
Volume
Indexed
Growth
Rate
1 Adidas DE 100 94 99 100
2 Louis Vuitton FR 98 95 100 92
3 Hermes FR 95 95 93 87
4 Burberry UK 93 93 90 86
5 Puma DE 91 95 87 81
6 Reebok UK 89 97 85 72
7 Lacoste FR 88 86 87 83
8 Montblanc DE 87 92 80 79
9 Hugo Boss DE 87 89 84 80
10 Dr. Martens UK 87 85 80 88
11 Vero Moda Nordics 86 81 83 90
12 Bugaboo NL 86 97 75 75
13 Nike US 86 64 100 94
14 Jack & Jones Nordics 86 88 79 82
15 Ysl FR 85 98 77 66
Luxury, sports & fashion feature amongst our brand champions
1. International Share / Volume of queries both based on 2013 2. Volume of International Queries and international query growth on logarithmic scale
Source: Google Search Data, OC&C analysis
Luxury
Sports
Fashion
A new generation of brands have successfully used e-retail to help globalise
and gain international fame akin to decades-old names
Top 30 International Brands
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In an age of a global retail e-mpire...
Study Conclusions
The face of retail is changing
eCommerce is changing the rules of international
retail, enabling a less capital intense and more
rapid way of testing and growing businesses
internationally
This new path is being forged by an emerging
breed of online focused specialists from pureplays
and brands through to multichannel players
The UK are currently the biggest eCommerce
exporter led by the Fashion category
The Global Retail E-mpire offers a significant
opportunity to access retail’s fast lane through our
CEO’s Playbook…
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A good proposition is a pre-condition to international success
Average Customer
Rating Customer Commentary
Amazon
Vente-
Exclusive
Show Room
Prive
ASOS
Zalando
Vero Moda “Fantastic when a low-cost store comes
with great customer service”
“Lots of inspiration, quick delivery, free
shipping and returns”
Successful International Propositions
Source: TrustPilot.com, TrustedShops.co.uk, MouthShut.com, SiteJabber.com, OC&C analysis
1. Ratings from Trustpilot, TrustedShops, MouthShut, SiteJabber
“I received my order earlier than I expected
and in perfect condition”
“Great quality and superb
information on products”
“Guaranteed the lowest price
on designer brands”
“There has never been any doubt in
the quality they provide”
“Fantastic range” “Great quality, affordable, quick shipping
and easy returns”
“The delivery is so fast and convenient” “Easy no-quibble returns.
Great selection of products.”
“They had a good range and were very
competitively priced”
“I was impressed by the free
delivery/returns policy”
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The CEO’s Playbook to Internationalisation
1. Prioritise markets &
identify the easy wins
2. Consider testing
with marketplaces
9. Invest behind the
key markets
11. Reinvent your
supply chain
10. Localise where it
matters to customers
12. Develop a global
view of customers
4. Develop and invest in a clear strategy to build awareness and drive traffic
5. Develop pricing strategy to profitably serve international markets
6. Organise to deliver your ambition
3. Determine the right multichannel approach for you
7. Establish the last
mile solution
8. Invest in a scalable
payments platform
Prepare Grow Lead Launch
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1. Prioritise markets & identify the easy wins
Operational complexity varies by country
Operational Considerations, Countries Rated by Ease, UK Example
Source: Euromonitor, Forrester, Mintel, World Bank, WTO, Crystal 2003, Parcel Force, Retailer Interviews, OC&C analysis
Market
Size ($bn)
English
Proficiency
Cost of
Shipping
& Tariffs
Ease of
Payment
Processing
Netherlands 5.9
Norway 1.6
USA 160.2
Australia 4.4
Germany 29.3
Singapore 0.7
Greece 0.5
Philippines 0.3
Turkey 1.6
South Africa 1.0
China 44.0
Egypt 0.2
Russia 12.0
Morocco 0.2
India 1.4
“High quality postal service
eases last mile delivery“
CEO of a Leading Fulfilment
Software
“High tariff threshold
navigates customs“
Jewellery Retail, UK
Op
era
tin
g E
as
e
“We block all IP addresses
in Russia as operating
there is a nightmare“
Apparel Retailer, Sweden
Hig
h
Lo
w
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2. Consider testing with marketplaces
Marketplaces provide the opportunity to test with new customers
Monthly
Traffic
M-place
Share of Site
Listing /
Monthly Fee Commission Other Retailer View
ebay
Free (pay 30p per
listing) to £249pm
(unlimited free
listings)
From 5% (consumer
electronics) to 11%
(clothes), plus
1.4%-3.4% payment
processing through
PayPal
Amazon
£28.75, plus
c.£1.50pcm for
Fulfilled by Amazon
warehousing
From 13% (consumer
electronics) to 28%
(jewellery)
Pick & pack costs of
£0.80 per unit and
distribution costs from
£0.27 for a small
envelope to £4.57 for
12kg parcel
Asos £20 20%
Farfetch None
Undisclosed -
industry
commentators
suggest c.25-30%
Etsy Listing fee of $0.20
applied to all items
Flat-rate 3.5%
transaction fee
Source: Press Research, Retailer Interviews, OC&C analysis
89m
133m
23m
4m
11m
“A cost effective way to drive volume, but also to trial
new markets in terms of uptake and customer
behaviour”
– Nordic Fashion Online Pureplay
“The entire Amazon Seller organization is focused on
helping third-party businesses succeed and grow on
Amazon. We do this by creating a dynamic
marketplace platform that helps every seller deliver
the best possible selection, service and prices”
– Amazon Marketplaces
“It’s a nod to presenting the world’s best fashion that
doesn’t sit within normal retail models”
– ASOS
“Helps us to stand out in a very saturated global
market- it gives us much more of a voice and profile”
– UK Fashion boutique
“Working with Etsy brings trust and huge numbers of
customers looking for niche products”
– UK Jewellery Online Pureplay
100%
40%
10%
100%
100%
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3. Determine the right multichannel approach
Stores still help to drive awareness in international markets
Inte
rnati
on
al S
earc
h T
raff
ic
Number of International Stores
Costco
International Store and Traffic for Examples Retailers
Low High
Lo
w
Hig
h
High level of
international traffic
driven with relatively
few ‘flagship’ stores
Traditional, high
investment
international expansion
with a large number of
local stores
Low investment,
eCommerce led
international
expansion with no/
few stores
Source: Press Research, Retailer Interviews, OC&C analysis 16 21
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4. Develop & invest in a clear strategy to build awareness
Building awareness needs to be achieved in all markets
Source: Retailer interviews, OC&C analysis
Brand Building
eg PR, Events
Near Free
Sources
eg Facebook,
Paid for
Sources
eg PPC, banner
advertising
“We bought a number of key
words internationally…5% of our
sales are off the back of that”
– US Pureplay, Clothing
“One of the biggest barriers to
international expansion is driving
awareness – you have to buy the
traffic” – Nordics Pureplay, Fashion
“Online is the only way to acquire
new customers, we optimise our
natural search and use social
media” – Nordics Pureplay, Clothing
“Our stores build brand and
awareness which complements
our website…all our geographies
have a stores and a website”
– French Multichannel, Sports
“We invest in the local
community and hold events in
order to build our brand” – UK Pureplay, Fashion
“Social networks are not used
well for marketing in France but
we have seen success in other
geographies”
– French Multichannel, Furniture
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5. Develop pricing strategy
Determining the right pricing model is a key challenge...
Pricing Options, Example Retailers & Products
eg Selfridges – Alexander McQueen Jacket
One Price, One Currency One Price, Multiple Fixed Currencies
Totally Local
eg babyshop.com Stroller
eg Abercrombie & Fitch - Jeggings
Source: Retailer Interviews, Internet research, OC&C analysis
£1,250
+£15 delivery €699
£599
$949
$68
Local Price
Germany
$105 / €77
Local Price
UK
$109 / £69
Home Price
USA
99
100 $ (USD)
$ (NZD)
€ (EUR)
£ (GBP)
D13 D12 D11 D10 D9 D8 D7 D6 D5 D4 D3 D2 D1
One Price, Floating Currencies
eg iHerb.com – Avalon Organics Thickening Shampoo 414ml
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5. Develop pricing strategy
...and may need to evolve as businesses grow internationally
Source: Retailer Interviews, Internet research, OC&C analysis
Lead
Grow
Launch
Retailer
Impact
Consumer
Impact
Example
Players
Straightforward execution,
minimal roll-out and day-to-
day updates required
Reduces operational
complexity as emphasis on
customer to pay customs
fees and import tariffs
One Price,
One Currency
One Price,
Multiple
Currencies
Local
Pricing
International Stage &
Recommended Pricing Strategy
Reaffirms imported origin
– Considered a positive where
authenticity significant
eg luxury fashion / cosmetics
Other sectors reduces trust and
perceived / actual hassle lowers
conversion rates
Greater investment to
deliver functionality
Fluctuating currencies de-
risks exports, guaranteeing
a universal achieved price
irrespective of delivery
address
Builds trust, by visibly
demonstrating ‘fair’ global pricing
Variable local currencies
reaffirms imported status
Fixed currencies display
‘customer friendly’ pricing eg
whole numbers / .99
Significant investment in
local teams
Opportunity to maximise
competiveness and drive
sales and / or profitability
Full leverage of currency
arbitrage and local taxes
Location auto-direct gives
impression of fully local
company
Multiple-local sites, and easy
toggle through pricing options,
can provoke backlash in high
price areas
Net-a-Porter
Boohoo Zooplus
Optimal Print Wiggle
Amazon Beauty Bay
Beauty Bay
Asos
Farfetch
Misses Dressy
iHerb
Showroom Privee
Shop Bop
Selfridges
Evo
Computer Universe
Macys
Harrods
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Country Heads
Senior
Management
6. Organise to deliver your ambition
The right structure is a key enabler of growth
Organisational Structures
Source: Retailer Interviews, OC&C analysis
Senior
Management
Bu
yin
g
Dis
trib
utio
n
Ma
rke
tin
g
International
Director
■ International run as a bolt on growth opportunity to core domestic business
■ International director provides strategic and operational lead...
■ ... using resource from other functions when necessary
Fully Localised Launch
Web
Desig
n
International as a low-risk bolt on
Key markets gaining traction
Senior
Management
Bu
yin
g
Dis
trib
utio
n
Ma
rke
tin
g
International
Director
Web
Desig
n
■ High potential markets identified and prioritised
■ Local teams created to drive growth through localisation of content
■ All functions serve a global customer
■ Country teams, tailoring proposition to local market, embedded throughout the organisation reporting to national heads
■ All functions localised to better serve national / regional customer groups
■ Group senior management retains control of over-arching proposition values, and country expansion
Ma
rke
tin
g
Web
Desig
n
International becomes the core
Bu
yin
g
Ma
rke
tin
g
Web
Desig
n
Dis
trib
utio
n
Senior Mgt Country X
Bu
yin
g
Dis
trib
utio
n
Ma
rke
tin
g
Web
Desig
n
Senior Mgt Country Y
Bu
yin
g
Dis
trib
utio
n
Ma
rke
tin
g
Web
Desig
n
Group Senior
Management
Local functions under group direction
Global Fashion Platform Health & Beauty
Retailer UK Department Store Global Retail Platform
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Geography Domestic Operators Cross Border Operators National Postal
Operators
USA FedEx, UPS, Newgistics FedEx, UPS USPS
UK DPD, Hermes, Yodel, City Link, UK Mail, Interlink,
Nightfreight, APC, DX, City Sprint, XDP, Parcel Force
DPD, Yodel, City Link, UK Mail,
Nightfreight, DX, City Sprint, XDP,
Hermes, Parcel Force
Royal Mail
Germany DPD, GLS, GO! General Overnight Services, Hermes,
Pin Mail AG, DHL, PEK
DPD, GLS, GO! General Overnight
Services, Hermes Deutsche Post
France
Colis Prive, Kiala, Mondial Relay, Relais Colis, Exapaq,
Hermes, Agediss, So Collismo, DPD, Chronopost, Mory,
Sernam, Sogep, GLS
Kiala, Exapaq, Hermes, GLS, Mondial
Relay La Poste
Denmark DPD, GLS, Bring DPD, GLS, Bring, DB Schenker, Direct
Link Post Danmark
Finland DB Schenker, Matkahuolto Oy AB, Posten Aland, Itella DPD, DB Schenker, GLS, Direct Link Finland Posti
Iceland Direct Link Iceland Post
Norway DSV Direct Link Posten.no
Sweden DB Schenker, Bussgods, Bring DB Schenker, Bring, Direct Link Posten.se
Netherlands DPD, Kiala, GLS, Hermes, Euro-Sprinters, Selektvracht DPD, GLS, Hermes PostNL
7. Establish the last mile solution
A range of potential last mile partners exist in each geography
Source: Metapack
1. International operators including UPS, FedEx, TNT Express, DHL operate across most geographies
2. Sources include Copenhagen Economics Report 2013, desktop research and proprietary data
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8. Invest in scalable payment platform
Payment options need to be flexed by geography
Netherlands Finland Sweden Germany Norway USA UK France Denmark
Source: ibid, Innopay, OC&C analysis
Online Payment Preferences by Country, 2012
iDeal system in
Netherlands is
very popular
Offering invoices /
bank transfer
options in Germany
is important
...other geographies use a much broader set of
payment options Denmark, France, UK and USA all
predominantly use cards to pay online....
Cards (Credit & Debit)
Online Bank Transfer
PayPal
Invoices / Offline Transfer
Cash on Delivery
e-Wallets
PayPal is strong
in France, UK
and USA
e-Wallets are only
really gaining
traction in the
Nordics
e-Wallets are only
really gaining
traction in the
Nordics
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9. Invest behind the key markets
Invest behind the key markets at the right times
iHerb Zalando Boohoo
Retailer Global Traffic Profile
Early stage internationalisation...
Finland
Poland
Austria
Spain
Belgium
Switzerland
Netherlands
Italy
France
Germany
Australia
Canada
Spain
Venezuela
Italy
France
Japan
Germany
UK
USA
...building out from strong
local markets...
...balanced and diversified
global coverage
Source: Google Search Data, OC&C analysis
Canada
Cyprus
Malta
Netherlands
France
New Zealand
USA
Ireland
Australia
UK
Home Country Focus Diversified Customer Reach
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10. Localise where it matters to customers
Understanding local market nuances is key to further growth
Adidas
Oriflame
Glossy Box
Localised Marketing by Leading Retailers & Brands
Source: Retailers’ websites, September 2013, OC&C analysis
Sweden Saudi Arabia Kenya
UK US
A
Spain
National sports heroes
UK France China
Use of locally
relevant models
Use of locally
relevant models
“Through thinking and acting
local we've been able to gain a major
share in rapidly growing markets, where
incumbent competitors are weaker”
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Optimising supply chain footprint for global delivery eg distribution centre set-up and balancing low labour cost and high quality infrastructure often by relocating to Eastern European countries
Companies often acquire infrastructure and IT service providers to build-up the necessary capabilities eg Rakuten: ADS and Webgistix
Opportunities to Optimise the Supply Chain
Source: Retailer Interviews, OC&C analysis
Accelerate global
expansion
Pursue a lower
cost operating
model
Move closer to the
customer
Examples
Leading global e-tailers are starting to offer a sophisticated range of solutions e.g. from same day delivery and delivery lockers to car-drops
Some are even starting to own the last mile themselves eg Net-a-porter ‘s fleet of drivers in New York and London
A move to shipping direct from source rather than via a warehouse can represent a significant cost saving
Most effective for businesses that have a small number of manufacturing sites
11. Reinvent your supply chain
Optimising the supply chain benefits customers and profits
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12. Develop a global customer view
More international activity requires a more global customer view
Global Login Integration across
multiple channels
Personalisation
Across Devices
Ability to access stores and payment via a single login
Personalisation across all types of devices, eg, tablets, mobiles, desktops, etc
Recognising customers across all channels whether physical or digital
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The CEO’s playbook to internationalisation...
Study Conclusions
eCommerce represents a significant opportunity
for faster and lower risk internationalisation than
ever before
To make the most of this opportunity CEOs
should invest in preparation, prioritising markets
and determining the right strategy and approach
for building awareness through to pricing and
supply chain
Partnering with marketplaces represents the
possibility to test appetite with consumers in new
markets without the full investment traditionally
required
Localisation is key to grow and lead globally with
the most successful retailers clearly identifying
the areas where it matters most to customers
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For more details, please contact
Germany
Rolf Pensky
Global / UK
Anita Balchandani
US
Rambaut Fairley
Nordics / Global
John Franklin
France
Mélanie Lessieux
Netherlands
Pepijn van der Laan
BELO HORIZONTE BOSTON DÜSSELDORF HAMBURG HONG KONG ISTANBUL LONDON MUMBAI NEW DELHI PARIS
SÃO PAULO ROTTERDAM SHANGHAI WARSAW
For more information contact:
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