fashion e-commerce: a compared strategic approach for china and russia

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Strategic thought to exhaust the fashion e-commerce potential in the growing markets…

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The e-Commerce strategy to enter in the emergin markets: a compared approach for China and Russia

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Page 1: Fashion e-Commerce: a compared strategic approach for China and Russia

Strategic thought to exhaust the fashion e-commerce potential in the growing markets…

Page 2: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 2

Are we ready to (really) grasp the emerging market

digital opportunities ?

Russia China

Page 3: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 3

Are we ready to (really) grasp the emerging market

digital opportunities ?

What is the real omnicahnnel opportunity in these countries ?

Does we really know these markets and the customer needs?

What is the role of the digital in our expansion strategy?

What is the best digital go-to-market strategy ?

1

2

3

4

Page 4: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 4

Are we ready to (really) grasp the emerging market

digital opportunities ?

What is the real omnicahnnel opportunity in these countries ?

Does we really know these markets and the customer needs?

What is the role of the digital in our expansion strategy?

What is the best digital go-to-market strategy ?

1

2

3

4

Page 5: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 5

Click Through

Visitors

Natural

& Organic

Direct Marketing

Customer Thrust

Customer relation

Engage

How can we define our business goals, reach our

customers and exhaust our e-commerce potential ? KPI Customer Journey

Adressable market

Brand awareness & ATL Reach

Business lever

Consider

Turnover

Store

Re

ac

tiva

tio

n

Channeling

eStore

Profitability

Convert

Customer

Lifetime Value Relation

Conversion

Commercial Levers

User Experience Acquire

Page 6: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 6

2013 2014 2015 2016

UK 9,3 10,7 11,6 12,6

IT 2,0 2,7 3,5 4,4

FR 5,9 7,1 8,4 9,8

US 36,6 43,1 49,8 56,7

China 99,8 169,2 265,9 336,9

Russia 8,1 10,7 12,9 15,0

-

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

Axis

Tit

le

Fashion e-commerce forecast: China and Russia

will become the 1st and 3rd the global market

Source: eMarketer, Euromonitor, Internet retailer, idata, ATK. CBInsight, Netcomm, TNS, Accenture Analysis

2013 2014 2015 2016

UK € 283 € 359 € 424 € 499

IT € 42 € 65 € 97 € 138

FR € 124 € 175 € 234 € 311

US € 785 € 1.021 € 1.291 € 1.605

China € 3.177 € 6.945 € 14.233 € 22.506

Russia € 265 € 420 € 591 € 829

€ -

€ 5.000

€ 10.000

€ 15.000

€ 20.000

€ 25.000

Axis

Tit

le

E-commerce Apparel potential market by country (Million Euros)

E-Commerce Apparel potential customer by country (Million of people)

Page 7: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 7

Are we ready to (really) grasp the emerging market

digital opportunities ?

Does we really know these markets and the customer needs?

2

What is the role of the digital in our expansion strategy?

What is the best digital go-to-market strategy ?

3

4

What is the real omnicahnnel opportunity in these countries ?

1

Page 8: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 8

The different digital consumer attitude is reflected

by the Top 25 sites interactions in Russia and China

Top 25 Chinese sites

Source: Alexa, Yander, Accenture analysis

13 gmw.cn

14 youku.com

15 ifeng.com

16 youku.com

17 ku6.com

18 sogou.com

19 people.com.cn

20 alipay.com

21alibaba.com

22 jd.com

23 google.com

24 china.com.cn

25 yesky.com

1 baidu.com

2 qq.com

3 taobao.com

4 sina.com.cn

5 163.Com

6 hao123.com

7 weibo.com

8 tmall.com

9 360.cn

10 sohu.com

11 google.com.hk

12 soso.com

Top 25 Russian sites

13 rambler.ru

14 rutracker.org

15 ucoz.ru

16 twitter.com

17sberbank.ru

18 blogspot.ru

19 habrahabr.ru

20 ya.ru

21 webmoney.ru

22 searchengines.ru

23 rbc.ru

24 sape.ru

25 aliexpress.com

Social Search Marketplace

1 yandex.ru

2 vk.com

3 google.ru

4 google.com

5 mail.ru

6 youtube.com

7 odnoklassniki.ru

8 facebook.com

9 wikipedia.org

10 liveinternet.ru

11 livejournal.com

12 avito.ru

Service/Entertainment Bank/payment Portal/Magazine

Page 9: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 9

Social-network and marketplace role in the Chinese

and russian customer journey (1/2)

Social influence: % of respondents indicating they “share everything” or “MostThings” online.

Source: Ipsos OTX, Alibaba, KPCB, eBay Alibaba/Taobao,

Ozon, Aplha wise, Morgan Stanley

Marketplace role: (A) the leading experience in China, (B) the e-commerce enabler in Russia.

24%

Russia China

A

B

Page 10: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 10

Social-network and marketplace role in the Chinese

and russian customer journey (2/2)

Sina registred users & annualized revenues

Source: TNW, Sina, Morgan Stanley, KPCB, Idata, Acquarius,

Grachabicha Maga ccrr,

Russina E-Commerce diffusion by region in 2010

Russia China

Higest

potential

Page 11: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 11

Are we ready to (really) grasp the emerging market

digital opportunities ?

What is the role of the digital in our expansion strategy?

3

What is the real omnicahnnel opportunity in these countries ?

Does we really know these markets and the customer needs?

What is the best digital go-to-market strategy ?

1

2

4

Page 12: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 12

Our digital strategy need to be designed to engage

the customer of markets with different maturity (1/2)

The new role of «digital» approached with a consistent

seamless customer centric strategy

A B

C D

Exausted Potential

Brand Popularity

eC

om

merc

e

Tra

ditio

nal

Bu

sin

ess b

y c

ha

nne

l gro

wth

exclusive accessible

Digital TV Print In-Store Event VIP Event

exclusive accessible

TV Print In-Store Event VIP Event Digital

“Because the internet is founded on principles of accessibility

and democracy, luxury brands generally use digital as a way

to spread the brand's dream and mythology. Digital

communications can play a valuable and critical role in

spreading information about the brand.

Is our strategy reflecting the brand positioning and growth plan across all the channels ?

Page 13: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 13

Our digital strategy need to be designed to engage

the customer of markets with different maturity (2/2)

Strategy

2

Objectives

3

Channels 4

Business Lever Dimension

• Access a new market

• Accessibility

• Exclusivity

• Awareness

• Communicate

• Engage

• Purchase

• Advocacy

• Physical store

• Mobile

• On-line

• Social

• Marketplace

• We need to

establish a long

term relation with

the customer

base

• We need to

facilitate the

purchase

process

• We need to show

and enhance the

perception of our

style

• We need to

constantly create

new relations with

new customers

• We need to cover

the relevant

touch-point to

enable the

relation

• We need to

transmit the real

quality of our

products

Market Maturity 1 • Geography/accessibility

• Internet adoption

• E-Commerce adoption

• Preferred media

• Usual customer journey

• Market will

increase of 185%

• Market will

increase of 338%

• Customer habits

will change totally

• Customer habits

will evolve quickly

Page 14: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 14

Are we ready to (really) grasp the emerging market

digital opportunities ?

What is the best digital go-to-market strategy ?

4

What is the real omnicahnnel opportunity in these countries ?

Does we really know these markets and the customer needs?

What is the role of the digital in our expansion strategy?

1

2

3

Page 15: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 15

FOUNDATION

AWARENESS

ADVOCACY

PURCHASE

CONSIDERATION

LOYALTY

ONLINE

Identification of Need

Search for Solution

Evaluate Alternatives

Product Details

Visit to the store

Purchase Decision

Visit to the brand website

Compare Offers

Online Purchase

Social Interaction

Online Registration

Mobile App

Offline Purchase

19% 81% Time Spent

OFFLINE

The customer is looking for a seamless

omnichannel multi-touch-point customer-journey

The multi-device consumer is increasing (56% in China) but brand is missing their on-line potential

The omnichannel customer is moving to a different mix of touchpoint increasing the weight of digital

Source: European Technographics® Online Benchmark Survey, Q3 2012; North American Technographics Online Benchmark Survey (Part 1), Q2 2012 (US, Canada); Asia Pacic Technographics Online Benchmark Survey, Q3 2012 (Australia, China, Hong Kong, India, Japan, South KoreaForrester Research, Acquarius

Page 16: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 16

The russian touch-point relevance analysis to define the customer journey

The chinese touch-point relevance analysis to define the customer journey

The omnichannel acquisition strategy will drive our

presence across the overall customer journey (1/3)

Rich Media

Flyers

Television

Periodicals

Magazines

Catalogues

Coupon mCoupon

SMS

eCoupon

DEM

Postal

Generic Keywords

Flash-sales

Radio

Social-commerce

TV sales

Newsletter

Banner

Retargeting

Guerilla

Glocal apps

Product Key-Word

Targeted Door-to-Door

Applications

Video Virals

Social Networks

on

lin

e

Mo

bil

e

off

lin

e

Communicate

Purchase

Source: Mark Up, eBit Innovation and Demoskopea, NetComm, Euromonitor, Datamonitor, Accenture Research

On-line reviews

Pice-comparrion

Word of mouth

News Sites

Online TV

Market-place search

Digital PR

Rich Media

Flyers

Television

Periodicals

Magazines

Catalogues

Coupon mCoupon

SMS

eCoupon

DEM

Postal

Generic Keywords

Flash-sales

Radio

Social-commerce

TV sales

Newsletter

Banner

Retargeting

Guerilla

Glocal apps

Product Key-Word

Targeted Door-to-Door

Applications

Video Virals

Social Networks

on

lin

e

Mo

bil

e

off

lin

e

Communicate

Purchase

On-line reviews

Pice-comparrion

Word of mouth

News Sites

Online TV

Market-place search

Marketplace store

Digital PR

Store Store

Marketplace store

Site Site

E-Commerce E-Commerce Store Store

Page 17: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 17

The omnichannel acquisition strategy will drive our

presence across the overall customer journey (2/3)

Source: Mark Up, eBit Innovation and Demoskopea, NetComm, Euromonitor, Datamonitor, Accenture Research

Rich Media

Flyers

Television

Periodicals

Magazines

Catalogues

Coupon mCoupon

SMS eCoupon

DEM Postal

Generic Keywords

Flash-sales

Radio

Social-commerce

TV sales

Newsletter

Banner

Retargeting

Guerilla

Glocal apps

Product Key-Word

Targeted Door-to-Door

Applications

Video Virals

Social Networks

on

lin

e

Mo

bil

e

off

lin

e

Communicate

Purchase

On-line reviews

Pice-comparrion

Word of mouth

News Sites

Online TV

Market-place search

Digital PR

Rich Media

Flyers

Television

Periodicals

Magazines

Catalogues

Coupon mCoupon

SMS eCoupon

DEM Postal

Generic Keywords

Flash-sales

Radio

Social-commerce

TV sales

Newsletter

Banner

Retargeting

Guerilla

Glocal apps

Product Key-Word

Targeted Door-to-Door

Applications

Video Virals

Social Networks

on

lin

e

Mo

bil

e

off

lin

e

Communicate

Purchase

On-line reviews

Pice-comparrion

Word of mouth

News Sites

Online TV

Market-place search

Marketplace store

Digital PR

Store Store

Marketplace store

Site Site

The russian touch-point relevance analysis to define the customer journey

The chinese touch-point relevance analysis to define the customer journey

E-Commerce E-Commerce Store Store

Page 18: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 18

The omnichannel acquisition strategy will drive our

presence across the overall customer journey (3/3)

Source: Mark Up, eBit Innovation and Demoskopea, NetComm, Euromonitor, Datamonitor, Accenture Research

on

lin

e

Mo

bil

e

off

lin

e

on

lin

e

Mo

bil

e

off

lin

e

The russian touch-point relevance analysis to define the customer journey

The chinese touch-point relevance analysis to define the customer journey

Catalogues

Coupon mCoupon

SMS

eCoupon

DEM

Postal Flash-sales

Social-commerce

TV sales

Retargeting

Glocal apps

Product Key-Word

Targeted Door-to-Door

Purchase

On-line reviews

Pice-comparrion

Market-place search

Catalogues

Coupon mCoupon

SMS

eCoupon

DEM

Postal Flash-sales

Social-commerce

TV sales

Retargeting

Glocal apps

Product Key-Word

Targeted Door-to-Door

Purchase

On-line reviews

Pice-comparrion

Market-place search

Marketplace store

Store Store

Marketplace store

E-Commerce E-Commerce Store Store

Rich Media

Flyers

Television

Periodicals

Magazines

Generic Keywords

Radio

Newsletter

Banner

Guerilla

Applications

Video Virals

Social Networks

Communicate

Word of mouth

News Sites

Online TV

Digital PR

Rich Media

Flyers

Television

Periodicals

Magazines

Generic Keywords

Radio

Newsletter

Banner

Guerilla

Applications

Video Virals

Social Networks

Communicate

Word of mouth

News Sites

Online TV

Digital PR

Site Site

Page 19: Fashion e-Commerce: a compared strategic approach for China and Russia

Copyright © 2012 Accenture All rights reserved. 19

… so what ?

The market will growth very quickly (+185% in Russia, +335% in

China) then we need to keep an aggressive approach to protect our

achievement.

1

The customer journey and the consumer behavior is definitely

different so we need to re-invent the overall strategy including the

most relevant touchpoints (as local marketplace, social, searches).

2

The digital strategy need to be consistent with our positioning and

the market maturity (then probably more aggressive in China

relational in Russia).

3

The go-to-market need to cover the most important touch-point for

our clients and need to be managed with a strong platform and

accurate processes controlled by the brand.

4

Page 20: Fashion e-Commerce: a compared strategic approach for China and Russia

Thank you!

Federico Gasparotto Digital Marketing Offering Lead Accenture Interactive Tel: +39-331-7550490 @: [email protected] Blog: www.gasparotto.biz IM: federico.gasparotto