growing your global and cross-border ecommerce … your global and cross-border ecommerce sales jim...
TRANSCRIPT
Growing Your Global and
Cross-border eCommerce Sales
Jim Okamura and Kent Allen
Co-Founders of the Global E-Commerce Leaders Forum (GELF)
[email protected] ; @jimokamura
New York City
September 7th, 2017
Today’s Presentation
• The Opportunity: A Look Back. A Look Ahead
– Why Cross-Border and International Ecommerce Matter to Online
Retailers and Brands Selling Direct
• Executing on the Opportunity: GELF Strategic Framework
– Passive Selling Stage
– International Growth Stage
– Regional Build Stage
• Global Retail Trends Driving Digital Commerce’s Growth
Cross-Border and Global Ecommerce Timeline
Amazon.co.uk
launches
1998
Adidas Asia Pacific
Ecommerce
Strategy
20082000
The “Original”
Borderfree: US-
to-Canada
2010 2015
IRCE US Retailer
Survey: One in five
retailers >20% int’l
revenue
2009 2012
eBay Global
Shipping
launches
“Dawn of Cross-
Border”: E4X – “sell
in local currencies”
2004
M&A: Cross-
Border Industry
Consolidation 1.0
2014 2016
$17.8B
Singles Day
Alibaba &
Rocket
Internet IPOs
Gap launches
UK, CA and
global sites
Amazon’s Global March Accelerates
Amazon Sales ($USD billions)
2009-14 2014-19
25% 17%
33% 14%
CAGR
12.9 18.8 26.8 35.0 44.5 53.7 63.3 72.8 82.3 91.8 102.011.7 15.5 21.3 26.3 30.0 36.2
43.651.8
60.769.7
80.2
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E
International
North America
XB Opportunity? It’s Huge
(1) Pitney Bowes 2016 Shipping index
(2) Accenture and AliResearch (2015)
(3) Pitney Bowes 2016 Global Online Shopping Study
© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.
Millennials are more likely to buy clothing or digital entertainment
10
Top x-border categories among x-border shoppers surveyed†
Top x-border categories for Millennials Living in each region †(% of x-border shoppers shoppingx-border in each category)
Entertainment/education online=46%
Clothing = 46%Consumer electronics = 39%
Clothing=50%
Entertainment/education (digital)=29%Entertainment/education (physical) = 27%
Clothing=49%
Entertainment/education (digital) =47% Consumer Electronics=39%
Clothing=56%
Entertainment/education (physical)=35%
Travel & transportation =31%
Clothing =58%
Cosmetics/beauty = 38%Entertainment/education
(digital)=35%
Consumer electronics = 35%
Clothing =53%
Travel & Transportation= 35%Consumer Electronics=31%
North America
(n = 148)
Central/South America (n = 564)
Western Europe(n =1265)
Africa (n = 502)
Middle East(n = 540)
Asia Pacific(n = 748)
Clothing=59%
Consumer Electronics= 38%Toys & Hobbies=36%
Eastern Europe(n = 363)
49
31
32
29
31*
26
54*
34*
34
30
29
28*
Clothing, Footwear & Accessories
Entertainment/education (digital)
Consumer electronics
Entertainment/education(physical)
Travel and transportation
Toys and hobbies
Q28. In the past 12 months what kinds of products have you purchased from websites in other countries?
Base: Cross-Border shoppers , General population n = 8097 Millennials n=4130
†Results are among all consumers surveyed, not weighted for population size
Millennials
General population
* Significantly higher than the other sample (95% confidence level)
China has the largest online population globally668M home users in China vs. 279.8M in the U.S.
The China Opportunity
+129%
China has the largest mobile market globallywith 1.25 billion users, according to Statista
Baidu is the largest digital platform in Chinaand is the 4 th most trafficked site in the world following Google, Facebook and YouTube
China has the 2nd largest economy in the worldaccording to the World Bank
The China Opportunity
$17.8 billion USDChina’s Singles Day 2016
*
@gallate @MerkleCRM*sales for Tmall, the main shopping platform under Alibaba Group12
$14.3 billion in 2015, 24.4%
#GELFNYC17
82% of sales were mobileUp from 70% in 2016
Why It Matters? The Future is Now!
The Chinese middle class is 300,000,000+ based on purchasing power.
They’re highly connected & comfortable buying online.
Source: 2016 Canadian Online Shopper Study, CPC 16-202, April 2016
English Speaking Markets Continue to Be
Quick Win Opportunities (UK, CA, AU)
28% of shoppers said they would not purchase from a retailer after a negative delivery experience.
Canadian Shoppers Cross-border Buying From US online retailers
High Shipping Costs Remain a Barrier
93% of US
consumers find
shipping options to
be an important
factor for their
holiday shopping
98% of shoppers
track
their packages1
1 Pitney Bowes Holiday Shipping Study, 20152 Pitney Bowes Global Online Shopping Study, 2016
60% of global
consumers say
shipping costs a
deterrent in cross-
border shopping
• Shipping costs
(60%)
• Return policies
(40%)2
But Lots of Hype! Do Your Homework
78% of global consumers shop online domestically at least once a
month1
Analyze Your XB Customer Traffic
Know Your Opportunity; It May Be Unique
Why It
Matters?
Two-thirds of
consumers
have made a
cross-border
purchase;
32% at least
once a
month1
1.Pitney Bowes Global Online Shopping Study, 2016
Executing on the
Opportunity: The GELF
Strategic Framework
1. Passive Selling Stage
2. International Growth Stage
3. Regional Build Stage
zzzz
III. Global Regional Build
Localized Brand and
D2C e-Commerce Sites
Customer Experience:
Localized and Optimized
Mark
et
Pote
ntial
I. Passive Selling
Focus:
International
Shipping
Customer Experience: Needs Improvement
II. Intn’l
Growth
Broadens to include:
International Marketplaces
Customer Experience: Improving
GELF Strategic FrameworkView: Customer Experience
Resources Required
Marketplaces a Proven Growth Driver- Often a cost-effective source of new intn’l sales -
CHINAGERMANY
U.K.
Tmall JD.
Zalando eBay
eBayAmazon
INDIA
Flipkart
My ntra
POLANDAllegro
BRAZIL
MercadoLibre
MEXICO
MercadoLibre
NEW ZEALAND
Trade Me
SOUTH KOREA
Gmarket
KENYA
Jumia
NIGERIA
JumiaINDONESIA, MALAYSIA,
PHILLIPINES
Lazada
UAESouq.com
JAPAN
Rakuten Ichiba
Top countries with
marketplace preference
Japan (70%)
China (61%),
Germany (59%)
India (55%)
Top countries with retailer
website preference
Canada (35%)
South Korea (34%)
Australia (33%)D2C sites key! Many shop both marketplaces and
retailers with no top preference
Mark
et
Pote
ntial
I. Passive Selling
Focus:
International
Shipping
Customer Experience: Needs Improvement
II. Intn’l Growth
Broadens to include:
International Marketplaces
Customer Experience: Improving
II. Intn’l Growth => D2C (US) + Marketplaces
Resources Required
Maturing Growth
Early Growth
Maturing Growth Cross-Border Capabilities
Customer Experience Characteristics Passive Early
Growth
Maturing
Growth
Regional
International shipping offered ● ● ●
Country and currency option ● ●
Clear communications to overseas
shopper
●
Promote other country websites ●
International promotions ●
Mobile optimized international content ● ●
Clear communications of XB policies ● ●
Multilingual customer contact channels ● ●
International order tracking ● n/a
Clear communication of Duties Unpaid
(DDU)/Duties Paid (DDP) options
● ● ●
Emitations.com Homepage:
User Friendly Graphics & Free Shipping Offers
23
Emitations.com Free
Shipping icon at top of homepage opens to
reveal very clear access to U.S.,
Canada & Global Shipping info
Free Shipping offers
by region
U.S.: Min $50 order5-7 days free ship
Canada: Min $75 14 day free ship
Worldwide: Min $100 21 day free ship
Shoptiques.com Localized Promotion & Customer Service Welcome Mat
24
Shoptiques.com:
User friendly
Welcome Mat
Neiman Marcus Homepage: Free Shipping Offers by Region
USA get FREE
SHIPPING
Global markets like New Zealand,
France or Mexico get FREE
EXPRESS GLOBAL SHIPPING
with orders >$175 USD
Canada gets FREE
EXPRESS SHIPPING with
USD orders of $100 or more
West Marine: International Customer Service
Promotes Personal Contact and Robust Content
Ability to
switch
languages
Working
with Freight
Forwarders
DHL one of
many
shipping
options
Extensive use of
Customer Service
via Phone—
appropriate for large
items
Hazardous Item
Restrictions called
out
Nordstom Customer Care: Encourages duty paid in advance
27
Duty amount available at
global checkout. If
shopper opts out, some
countries allow duty on
delivery but rate not
guaranteed by Borderfree.
Easy country &
currency
changes are
standard
features
International
order tracking
available via a
U.S. phone
number or a pop
up window on line
Maturing Growth Cross-Border Capabilities
Customer Experience Characteristics Passive Early
Growth
Maturing
Growth
Regional
Product page international pricing
and exceptions
● n/a
Retailers’ site international checkout ● n/a
International payment options ● ●
Active international social media ● ●
Williams-Sonoma Product Pages:
Product Exceptions for International Shipping
29
Williams Sonoma
warning messages
on product page,
conveniently before
check out.
Note: Currency
in British Pounds
Crate & Barrel Product Exceptions:
“Call a Store” (Canada) or “Request a Quote” (UK)
When trying to ship electrical items to
Canada, Crate&Barrel offered shoppers to
“CALL A STORE” (with click thru) to source
the item.
When attempting to ship an ineligible item
to the UK, shoppers were offered to call or
click to “REQUEST A QUOTE” as “global
partner Fifty One would not ship this item.”
Kate Spade Product Page and Shopping Cart
International Shipping Exceptions
Kate Spade warns that “white
glove delivery” items may only
ship to “continental United States”
on both Product Page and again
at Checkout
Growing Use of International Payment Types
Payment types specific to a particular market (e.g.
Japan Credit Bureau, China Union Pay, Alipay)
Williams
Sonoma: China
Union Pay Credit
Skinstore.com
accepts Alipay
Emitations.com: JCB for
select markets.
International customers
must use PayPal.
Dollskill.com
accepts JCB,
PayPal &
Affirm
zzzz
III. Global Regional Build
Localized Brand and
D2C e-Commerce Sites
Customer Experience:
Localized and Optimized
Mark
et
Pote
ntial
I. Passive Selling
Focus:
International
Shipping
Customer Experience: Needs Improvement
II. Intn’l
Growth
Broadens to include:
International Marketplaces
Customer Experience: Improving
GELF Strategic FrameworkView: Customer Experience
Resources Required
Localizing the Customer Experience: Zalora Singapore’s Use of WeChat, Line, Facebook, Google Plus, Twitter
Physical & Digital “Unified in Commerce”
• 68% of global shoppers
click and collect1
• 66% of global shoppers
will order online and
return to store1
• 63% of cross-border
shoppers have
participated in In-store
Global Online Local 1
1 Pitney Bowes Global Online Shopping Study, 2016
Organization Design for Global Ecommerce
• Centralized versus
regional teams –
“strong” or “weak”
centers of excellence
• Aligning the Regional
Brand’s executives with
Ecommerce priorities
• The greatest org
challenge is channel
conflict
Device and Design Localization:Improving Customer Experience But Lots of Upside
US retailers’ UK sites UK retailers’ US sites
Source: Practicology, Translate Media and eShopWorld analysis
Localization: One Size Does Not Fit All MarketsUS retailers’ UK Social Media and Customer Care
“52% of the sites reviewed have not fully localized their product content”
Source: Practicology, Translate Media and eShopWorld analysis
ExplorersInternational Shipping
GrowersCross-border & Marketplaces
BuildersDirect to Consumer Ecommerce
BrandersContent & Brand Sites
Value-Driven Experience Highly-Engaged Experience
$$$
$$
$
High $$Impact
Value-DrivenExperience
Highly EngagedExperience
Low $$Impact
DifferentiateGrow
Passive
Selling
Build
Awareness
High $$Impact
Value-DrivenExperience
Highly EngagedExperience
Low $$Impact
ExplorersInternational Shipping
GrowersCross-border & Marketplaces
BuildersDirect to Consumer Ecommerce
BrandersContent & Brand Sites
Value-Driven Experience Highly-Engaged Experience
$$$
$$
$
High $$Impact
Value-DrivenExperience
Highly EngagedExperience
Low $$Impact
DifferentiateGrow
Passive
Selling
Build
Awareness
High $$Impact
Value-DrivenExperience
Highly EngagedExperience
Low $$Impact
In Closing…
• Cross-border and global ecommerce is only beginning – the time to act is now!
• Choice of global and cross-border solution providers has never been greater
• Your competition is expanding. Both US-outbound and US-inbound opportunities are attracting more players
• The bar is continually raising. Consumers, particularly Millennials, expect their favorite brands to provide a great customer experience
Jim Okamura and Kent AllenCo-Founders of the Global Ecommerce Leaders Forum (“GELF”)
New York City
September 7th,
2017
Questions?