a publisher’s guide to european expansion by catharina zientz & kavita verryth
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Kavita Verryth@kavitaverryth
A Publisher’s Guide to European Expansion
Catharina Zientz@catharinazientz
OverviewAn international education
1. Background2. Fashionchicks International Strategy3. International in 3 Steps
TechMarket ResearchSet-Up
4. Country AnalysisNL – DE – FR – UK – AU/AT/BE
5.Learnings
Find your look
Fashionchick ensures that every woman can easily navigate the online shopping world.
Whoever she is. Whatever her style. Wherever she is.
What we do
Company TimelineFrom No Search to Sanoma
2009 2011 2012
Sanoma InterestCooperation begins with analysis of companies to ensure there is a strategic match
No SearchFashionchick.nl turns profit and proves the platform is a success
Sanoma 25%Sanoma buy 25% share in No Search showing positivity about the concept.
Sanoma 55%1st January: Future prospective growth increased. Majority ownership enables int. expansion
2013 Q3 2013
Sanoma 100%Earlier then expected, Sanoma buys No Search for ease of investment and result reporting.
Q3 2014
Final IntegrationFashionchick moves headquarters to Sanoma BV in Hoofddorp
“80% of Fashionchick-women are shopping here with an intention to
buy”
Business ModelHow we earn
Performance Marketing
• Product data feeds• Interesting content• Categorisation & filtering• Conversion driven focus• Popularity rankings• Sending 80% of all traffic to
conversion focused pages
Our International Progress
Our MarketsOur current international presence
Growth StrategyVertical & Horizontal Expansion
Fashion: Women
Fashion: Men
Fashion: Kids
Home Decoration
Netherlands Germany France UK US
International TimelineFashionchick goes abroad
20092006 2011 2012
No Search B.V.Fashion related comparison company created
Expansion #1Fashionchick expands to France and Germany
FocusFashionchick.nl live and becomes the companies focus and main offering
Expansion #2Fashionchick expands to the UK and USA
Expansion #3Cross platform expansion. Mentoday NL & DE
2013 2014
Expansion #4Cross platform expansion. Kidstoday.nl
International in 3 Steps1.Technical Concept
2.Market Research
3.Set-up Phase
Technical ConceptInnovative Platform
• Front-end translation• Internationally recognised design
(one-for-all concept)• Easily adapted to new market
segments• Speedy performance• SEO friendly• Responsive v Mobile• Corporate Identity
“Don’t duplicate a second-rate product!”
Market ResearchOrientation Phase
• Population Size (target group)• Internet Usage• Average Income• National economic growth• Unemployment• Spending patterns• Top 3 online shops• Online sociability• Mobile behaviour (2014)
Ecommerce ReadinessMarket Research
NL DE FR UK AT BE PL ES IT TCTotal Population 16,9 81,0 66,3 63,7 8,2 10,4 38,3 47,7 61,1 81,6Women 15-64 5,5 26,0 20,8 20,5 2,3 3,4 13,6 15,8 20,4 27,4Internet Usage 81,1% 80,2% 68,2% 80,7% 74,4% 77,9% 58,7% 58,9% 48,4% 33,3%Total Target 4,5 20,9 14,2 16,5 1,7 2,6 8,0 9,3 9,9 9,1Ranking 3 10 8 9 1 2 4 6 7 5GDP / capita $41.400 $39.500 $35.700 $37.300 $42.600 $37.800 $21.100 $30.100 $29.600 $15.300Ranking 9 8 5 6 10 7 2 4 3 1Growth 2010 -1,3% 0,5% 0,3% 1,8% 0,4% 0,1% 1,3% -1,3% -1,8% 3,8%Ranking 3 7 5 9 6 4 8 3 1 10Unemployment 6,8% 5,3% 10,2% 7,2% 4,9% 8,8% 10,3% 26,3% 12,4% 9,3%Ranking 8 9 4 7 10 6 3 1 2 5% Fashion of all purchases 6,8% 5,2% 5,3% 5,4% 5,7% 4,0% 5,4% 8,5% 7,0% 6,2%Ranking 8 3 2 5 6 1 5 10 9 7Smartphone Usage 52,0% 39,8% 42,2% 62,2% 48,0% 33,5% 35,0% 55,4% 41,3% 29,6%Ranking 8 4 6 10 7 2 3 9 5 1 OVERALL RANKING 6,50 6,83 5,00 7,67 6,67 3,67 4,17 5,50 4,50 4,83
Market ResearchThe Decision Makers
• External factors• Online shop analysis• Competitive analysis• Cross-market potential• Branding• Marketing strategy (traffic)• Set Year #1 goals
Set-Up Phase2 months to launch!
• 1 FTE Native: Project Owner (personally invested in the project)
• Location: major city preferable• Research and abide local laws• Minimum content requirements• Focus on business relationships• Cultural differences in your
organisation
Country AnalysisGermany
FranceThe Netherlands
UKAustria/Belgium/Australia
Germany"trust and communication is key"
• Largest EU economy • Strong e-commerce market
• Slightly more male skewed• Wealthy, tech savvy population• Stricter laws and regulations
• Impressum• Preisangabenverordnung
• Very mature e-commerce market, many players• CPA and CPC as attribution
models
Germanycultural nuances
• Major International Players/Competitors =• Highly competitive expensive
traffic higher start-up cost.• Risk & reward higher ROI more
potential• Highest shopping basket value• Privacy and trust
• Lower Facebook growth• Shop certifications are relevant to
the consumer (e.g. Trusted Shop)• Post-pay
• Be wary about high return rates for fashion
France"personal contact drives the sales"
• Internet Access: 82% of households• Paris is the ecommerce and fashion
hub. Paris HQ strongly advised. • Ecommerce website growth
(+17%)• Mobile ready market• Tracking influenced by a large
retargeting and email marketing market
• Region specific purchases and marketing (local knowledge)
• Made in France mentality• International players should look at
investing in local presence
France
• Network support and data sharing is limited
• Controlled sales period for all sectors
= high demand for advertising• Favorite payment method: credit
card• Main criteria for decision making
(ranked from the most important): price, trust in website, delivery options, and product diversity
• Local players dominate• Kiala delivery popular (free) over
home delivery (paid)
cultural nuances
The Netherlands“the home-market advantage”
• Manageable market Population and geographic.
• Highly active start-up city & international > 50% expats in Amsterdam.
• Advanced performance marketing market – in terms of retailers and publisher knowledge, local networks, local events.
• Good to know legal: cookie guideline strict
The Netherlands
• iDeal payment option is a must• Free shipment & voucher codes• The Sanoma Advantage• International hot-bed for fashion
stores esp. from UK and DE• High product feed qualities (due to
knowlege)• Early adopters• Local orientated sites perform well
(bol.com, wehkamps, marktplaats)
cultural nuances
The UK“sales? voucher codes? of course!”
• Worlds leading e-commerce market• Highest mobile conversions• High risk = high reward• Discount code and cash back sites
to compete with• International competition from
USA; less so from EU• High interest in spot positions and
focus on branding• Agency driven landscape; more
influence
The UK
• Improvement in data feeds (catching up to ie: NL & DE)
• Large local players with intentions to expand to EU
• Conversion is lower in start-up phase
• Traffic buying is relatively inexpensive (until the Christmas rush)
• Quick turn-overs. Highly trend driven with continuous discounting means product moves fast
• 25% Click & Collect
cultural nuances
AT/BE/AUWhere to next?Step 1 & 2: CompleteAustralia, Austria, Belgium (fl)- How we are doing it differently from
what we learned.- Shared resources - Low content/Low profile/Low Risk - Alternate tags (html) - Traffic Sources
Step 3: Set Up July/August 2014
Looking ahead: Pending success = expansion of teams, local base/contact within 6 months etc
Don’t ForgetInternational Nuances…
• Local presence• Network partnerships are key!
• Sale seasonality• Local social media players• Share your data!• Don’t duplicate content• Continually test and evaluate over
6-12 months
catharina@sanoma.comkavita@fashionchick.co.uk
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