never mind the borders - dr marten's

Chris JonesRedsock Management Ltd

chris.jones@redsock.biz+44 7770 647038

Anarchy in the UN 2

Key Challenges for Dr Martens:

1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?

Anarchy in the UN 3

Key Challenges for Dr Martens:

1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?

Now more than ever it is necessary to ask… 4

Timing matters… 5

There are lots of statistics available out there to act as confusing inputs

Source: OFCOM 2010

Timing matters… 6

Is our own website the best route to market in Poland?

www.zalando.pl

Pick a country, any country… 7

Other countries look superficially/statistically unattractive

Source: OFCOM 2012

Pick a country, any country… 8

“eCommerce in Russia” is a meaningless concept. The country is too diverse.Moscow & St Petersburg together have a population greater than the Netherlands, and by 2014 are predicted to have comparable broadband access.

Source: FOM

So which countries shall we pick? 9

Not all countries have “our” kinds of customers online

Source: TNS Web Index

Taking a look at what we already know 10

Dr Martens already has websites (and warehouses) in the UK and US.

Our top countries: by visitor numbers

- France- Australia + NZ- Taiwan, Singapore +

Hong Kong- Mexico- Sweden + Denmark- Russia- China

Our top countries: by conversion rate

- Australia + NZ- Sweden + Denmark- France

And our worst:- Mexico- Russia- China

Despite a £40 shipping fee, Australia & NZ actually have 50% better conversion than our UK or US customers on their home-country sites!

By looking at drop-out rates in the checkout funnel, we

can “factor in” the impact of cheaper shipping.

Not actual data!

So which countries shall we pick? 11

By combining data from the existing sites, data from existing channels, and plausible statistics for the development of online in a given country, then for most countries we can make a reasonable stab at estimating:

Total market for Docs

Sales via existing

channels

Anarchy in the UN 12

Key Challenges for Dr Martens:

1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?

Long Tail which we can only reasonably

store and shipfrom a few hubs

Routes to customer 13

Core Range held by local distributors

Core range we could reasonably import

into target countries

Our range consists of a small number of top-sellers – the classic Doc Martens 1460 boot and 1461 shoe – plus a long tail

Routes to customer 14

We have varying levels of sophistication in our Warehouse Management Systems across the globe:

WMS in action in the UK WMS in action in Korea

Anarchy in the UN 15

Key Challenges for Dr Martens:

1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?

Localised assortment 16

Our core range is marketed to all countries… but customers’ feet vary by region

Core range Varies by region

Localised customers 17

Our customers are buying for different reasons

Lost Youth Fashion Comfort Individuality

Localised merchandising 18

The majority of our customers start their online journeys from our classic products… but the classics make up less than 10% of all online sales

How big? 19

Localised Assortment

Localised Customers

Localised Merchandising

Our latest forecast for the team-size required to manage it all looks like this:

Thanks!

Thank you for listening

Chris JonesRedsock Management Ltd

chris.jones@redsock.biz+44 7770 647038