WINNING IN THE UK E-COMMERCE ENVIRONMENT

Transcription

1 WINNING IN THE UK E-COMMERCE ENVIRONMENT EMEA FORUM 2015 JEREMY RADCLIFFE CLAVIS INSIGHT

2 WINNING IN THE UK E-COMMERCE ENVIRONMENT State of the Nation The Story so Far Preparing Today, To Win Tomorrow Summary 2

3 A BRIEF HISTORY OF TIME. Grandmother Jane Snowball, 72, from an armchair in her Gateshead home in May Used a television remote control to order the groceries from her local supermarket. It was an order for margarine, cornflakes and eggs. 3

4 STATE OF THE (ECOMMERCE) NATION- GROWTH High incidence today, more growth projected. Growth of online grocery buying is ahead of bigger markets, smaller geographical size aids last mile and click and collect developments $ billions China $ billions 4

5 CHANNEL SHIFT, SAME HABITS? 5

6 STILL ABOUT CONVENIENCE, YES.BUT. Time-poor shoppers equipped with technology are increasing demand for online shopping. New delivery services such as Shutl, Instacart and Uber are supporting these habits where retailers are not moving quickly enough to satisfy demand. 6

7 LIFE-STAGE DISRUPTION: AN OPPORTUNITY There are, however, some brief periods in a person s life when old routines fall apart and buying habits are suddenly in flux. One of those moments the moment, really is right around the birth of a child. Charles Duhigg, Author of The Power of Habit 7

8 GENERATION EXHAUSTED! 8

9 WHO S LEADING THE CHARGE IN ONLINE SHOPPING No Children Parents with Children Under 3 Parents with Children 3-17 Empty Nesters 20% 47% 32% 15% I can shop online at any time Top Reasons for Shopping for Groceries Online Shopping online saves me from making a trip to the store It is convenient to have groceries delivered to my front door Shopping online saves time 9 I don t have to carry heavy items home Shopping online helps me stick to a budget Source: Kantar Media Compete 2012, UK Panel

10 THE CONSUMER AT THE HEART OF ECOMMERCE Being convenient isn t just about ecommerce, technology and design.. When it s done well it s integrated into every touch point. Nescafe: Making a virtue of convenience. 10

11 NOT SUITED TO ONLINE, OR UNDER-DEVELOPED? 11 Source: TGI UK 2012

12 CLOSER TO IMPULSE?... (FORTUNATELY;-) Cinnabon offering same day delivery in the London area. Distribution and fulfilment are increasing in speed and scope. Perishables are now following where other verticals have already trodden. 12

13 TOPPING UP THE SHOP, FAST FULFILMENT Where consumer needs are un-met, new businesses are being created to serve demand. Single vertical retailers and taking advantage of top up shopping. 13

14 THE STORY SO FAR.KEY THEMES Global growth continues unabated, UK still has room for growth. Convenience of the channel is helping facilitate growth through design and tech advances. Parents leading the charge with online grocery shopping. No category is immune to going online! 14

15 PREPARING TODAY, TO WIN TOMORROW CONTENT MULTI-CHANNEL MULTI-LOCATION BRILLIANT BASICS 15

16 ECOMMERCE: IT S A BIT LIKE GARDENING... If you leave it un-attended for too long, it becomes overgrown 16

17 BEAUTIFUL BASICS Always On, Always Right We endeavour to be Always On, Always Right Sean Ferguson, Digital Activation, Molson Coors UK 17

18 Culture eats strategy for breakfast, management guru Peter Drucker famously said. This quote sums up the need for a cultural shift to allow for the business change required in digital transformation. INTERNAL ALIGNMENT + METRICS AID SUCCESS Attendees to Econsultancy s Digital Transformation Roundtable event consistently spoke of the challenges of extending a digital mindset throughout the organisation. Those in large organisations or those in heavily regulated industries felt this most acutely and expressed deep frustration at the inability to effect broad change in their organisations. Capgemini s matrix of digital maturity highlights the risk of complacency. In the analysis of 186 companies, those that were digitally mature digirati (have effected cultural change alongside adopting digital) saw higher profitability and revenue. By contrast, fashionistas (those that adopt digital but fail to make the corresponding cultural and management changes) suffered declines in profitability. Organisational Engagement & Alignment Role Objective Metrics FASHIONISTAS DIGIRATI Category Managers Customer Teams Optimize Range & Distribution Category & Brand Growth Range & Assortment Availability Shopper Marketing Digital Managers ecomm Managers Brand Teams Effectively Market Brands Online Content Integrity Search BEGINNERS Source: Capgemini Consulting CONSERVATIVES Brand Activation Price & Promotions R&D / Supply Chain Maximize Brand Equity, Communication and Performance Ratings & Reviews Price/Media Evaluation Roundtable attendees spoke of the difficulty of shifting a company culture. Many spoke of the challenge of combining the culture of digital teams with the main office. One participant lamented that he needs to keep a suit at the office to don for meetings at head office. Source: CapGemini, CEB

19 MANY LEVERS AVAILABLE TO CATEGORY MANAGERS 19

20 IT S VERY TEMPTING TO PULL. but you may not have visibility of sufficient data (and all lever-types) for each retailer to help influence your digital investments. 20

21 USE DATA TO FOCUS INVESTMENT & EFFORT What do manufacturers have most control over in the long term and short term? Media & Content Investment ROI? Taxonomy / Changes 21

22 TAKE ADVANTAGE OF RICH CONTENT OPPS Richer content gives brands and opportunity to gain more data about their consumers. Give / Get The more compelling to better. Define compelling content by testing amongst a small representative group. 22

23 Segment LEVERAGE ADJACENCY OPPORTUNITIES Parents with children under 3 are:- X 4 Significantly more likely to buy groceries and home furniture online X 5 Significantly more likely to buy baby and children's products online X 2 X 2 Spend twice as much time on Automotive websites Source: Kantar Media Compete UK

24 DIRECT TO CONSUMER: A DATA OPPORTUNITY Manufacturers have an opportunity, with the right services vehicle to build direct sales with consumers. Learning more about your consumers preferences. DTC channels also help build brand values on the path to purchase. Buy Now expedites lead generation and purchase. 24

25 MARKET PLACES PROVIDE ADDITIONAL REACH Marketplaces are the malls of ecommerce. Great opportunities for trusted brands. Risks for manufacturers, Less control over how a brand is presented. 25

26 BRANDED APPS INCREASE SHOPPER ENGAGEMENT Some brands have tied everything together using mobile. Useful to the sufferer. Capture s data with permission. Location Aware. Purchase Ready. Links to both On AND Offline Stores. 26

27 ECOMMERCE EVERYWHERE NOT JUST TRADITIONAL Click & Collect is Growing Amazon & ebay using London Underground and Argos as pick up points Retail pick up is not limited to traditional retail outlets Measuring delivery from a single point only is only part of the picture. Building Click & Collect around the shopper rather than vice versa 27

28 PUTTING THE CONSUMER AT THE HEART OF ECOM Pre-Order Baby Milk to be collected after airport security clearance Brands need to protect their reputation and image in multiple places Building Click & Collect around the shopper rather than vice versa 28

29 WHAT DOES ALL THIS MEAN TO BRANDS TODAY Convenience Yes but understand who it s convenient for. Don t under-estimate the potential for categories to move online. Getting the Basics right it s like gardening, needs constant attention. The Digerati Organisation, Linked to Increase Revenues. Content can be both engaging AND an opportunity to learn about your consumers via data. Location, location, location: me-commerce can activate the consumer anywhere. 29

30 THANK YOU! 30