КОНФЕРЕНЦИЯ 2017 ЗА ОНЛАЙН МАРКЕТИНГ И ТЪРГОВИЯ

Transcription

1 КОНФЕРЕНЦИЯ 2017 ЗА ОНЛАЙН МАРКЕТИНГ И ТЪРГОВИЯ

2 CROSS-BORDER E-COMMERCE: THE 21 ST CENTURY SPICE TRADE November, 2017 Express

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4 Key Findings The cross-border market opportunity offers growth rates (~25% p.a.) not found in most other retail markets The premium cross-border opportunity is much more than just electronics and fashion Online retailers are boosting sales by 10-15% with a crossborder offering (and expect share to increase) Manufacturers expect to grow 1.3 times faster in crossborder than other retailer types via direct sales Main consumer challenges to cross-border purchases relate to logistics, trust, price and experience Going cross-border is easier than many retailers think, thanks to off-the-shelf solutions and global logistics networks Retailers with a premium service offering for customers are growing 1.6 times faster 4

5 The Cross-Border Market Opportunity: Today s Growth Rocket Market GMV of ~USD 300 Billion in 2015 Market GMV of ~USD 900 Billion in % of cross-border purchases are worth over USD 200 Every tenth dollar of cross-border revenue is made with premium shipping 5

6 The Market Opportunity Fast-Growing Premium Sectors There is a premium opportunity for every product category There is a premium demand segment for every product 6

7 The Market There are Country-Specific Drivers of Demand UK consumers seek availability Chinese consumers seek quality Russian consumers seek price 7

8 The Cross-Border e-retailer: Four Successful Types E-Commerce Giants Pure Online Retailers Early movers 63% Good understanding of online shopper behaviour 69% Largest proportion of cross-border sales (15%) Threat to smaller businesses, but also an ally (contribute to the development of new markets, provide marketplace access, set the standard for customer experience) Expect very high growth rates in next 2-3 years Specialized value proposition (likely to be attractive to overseas markets) Typically dependent on favourable home market conditions and closer proximity to demand markets Benefit from multi-category offerings Expect very high growth rates in next 2-3 years Brick & Mortar Retailers Manufacturers Lowest share of cross-border sales (11%) Need to build out digital capabilities to compete and to re-engineer physical assets and processes to be relevant Core assets, such as iconic brands, could bolster future success prospects 68% Expect very high growth rates in next 2-3 years Rising stars of cross-border selling Report growth 1.3 times as fast as average e-tailer Highest confidence in increased share of crossborder selling (76%) Can move into new markets more quickly with better control (and higher margins) by cutting out middlemen; may need to work harder on marketing 76% Expect very high growth rates in next 2-3 years 8

9 How to Succeed: Becoming an International Champion 1 Conduct detailed market analysis and define pitch 2 Develop the right assortment and tailor to target markets 3 Provide a customized browsing and purchase experience 4 Define optimal warehousing & fulfilment approach 5 Offer right delivery choices to convert interest to sales Premium shipping options help to unlock demand: Retailers with an express option grow 1.6 times faster 9

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11 Ensure Your Website is Open For Business Fact: e-tailers who offer express/premium delivery option grow 1.6 times faster, than those who only offer standard delivery. Clearly tell your customers that you are taking International Orders Reduce bounce rates by stating on the Homepage as well as in the Shipping section Advertise an Express option as part of the choice of delivery time frames without your customer needing to go into the checkout When GymShark added an express option, their average basket value increased by 71% A Large fashion retailer increased their volume to Germany by 5 times when they changed to an express offering - with no additional marketing 11

12 Why Delivery Matters 45% 39% Of shoppers have abandoned an online basket because of unsatisfactory delivery options Of these shoppers said it was because delivery would take too long METAPACK STATE OF ECOMMERCE DELIVERY CONSUMER RESEARCH REPORT 12

13 Make the Price Right Do not price your customer out of the sale with your shipping charges Make them appropriate to the shipping choices you are offering (do not offer economy service option which is more expensive than the express one) Check if transport charges are correctly visible at the website 13

14 Why chose a DDP service Fact: Retailers who send DDP grew at double the rate of retailers that chose duty to be paid on delivery By offering a Delivery Duties Paid (DDP) service, you as the sender can bill all duty and tax charges back to your account 13 of our top 20 Ecommerce customers send their shipments Delivery Duties Paid (DDP). Shipments outside of EU for customers selecting DDP are growing at 21% vs. 9% for those choosing their customers to pay the duty at delivery Low de minimis values for Canada, Norway & Switzerland mean that duty would be charged for most orders Much research shows that consumers are worried about hidden costs, and would prefer to have a final cost up front Luxury brands would not want their customers to be contacted for money and have their shipments delayed whilst payment is made (especially if some orders could be gifts) 14

15 Make Returns a Simple Process Fact: 66% of customers review a return policy before making a purchasing decision Make the returns process straightforward, customers are more likely to place larger orders and keep more as well. Consumer preferences regarding returns, by age (%) Have you ever not shopped with a retailerbecause you did not like the returns policy On average, would you be willing to pay more for a premium/ more convenient delivery return option? Would you shop more with a retailer that made the returns process easier? 15

16 On Demand Delivery What is it? Within 1 hour of collection your customer is sent an and SMS to advise them of the Estimated Date of Delivery (EDD). They are given the following inflight delivery options:- 46% of shoppers want the option to change their delivery preference after placing an online order Reschedule for another day Leave with a neighbour Leave in a safe place Deliver to a DHL service point or locker Deliver to an alternate address Hold until the customer has returned from vacation 16

17 On Demand Delivery - Options Shipments Delivered On First Attempt Options Chosen By Customer No messages sent 1 Schedule Delivery Service Point Delivery Message sent, no option chosen Message sent, option chosen % 22.0% 15.2% 4.7% 14.2% Leave with Neighbour Signature Release Alternative Address Vacation Hold Leave Signature 1 First Attempt Delivery Rate 2 Customer Received Requested Service 17

18 The Importance of a Great Delivery Experience Following a negative delivery experience Multiple delivery options are becoming key said they are likely to never shop with that retailer ever again 38% 81% POTENTIAL LOST BUSINESS 43% of consumers said they wouldn t return to that retailer within a month 19% might return to that retailer METAPACK STATE OF ECOMMERCE DELIVERY CONSUMER RESEARCH REPORT 18

19 POWER UP YOUR POTENTIAL: GYMSHARK AND DHL Gymshark was created by British university student Ben Francis in This UK-based manufacturer and online Retailer sells high quality fitness apparel and accessories, and has evolved to become one of the UK s fastest growing brands, even staking a claim in the hugely lucrative American sportswear market. GYMSHARK & DHL IN NUMBERS 13,000 Additional units within 1 year 70% Shopping cart value increase a rise from 41 to 70 after adding the express delivery option 50% Gymshark Customers willing to pay for express delivery 210% Increase in Gymshark s year-on-year sales since implementing express

20 THANK YOU!