fashion e-commerce: a compared strategic approach for china and russia
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The e-Commerce strategy to enter in the emergin markets: a compared approach for China and RussiaTRANSCRIPT
Strategic thought to exhaust the fashion e-commerce potential in the growing markets…
Copyright © 2012 Accenture All rights reserved. 2
Are we ready to (really) grasp the emerging market
digital opportunities ?
Russia China
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
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
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
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)
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
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
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
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
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
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 ?
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
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
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
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
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
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
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
Thank you!
Federico Gasparotto Digital Marketing Offering Lead Accenture Interactive Tel: +39-331-7550490 @: [email protected] Blog: www.gasparotto.biz IM: federico.gasparotto