Google Confidential and Proprietary 1 Google Confidential and Proprietary 1

Britain’s Retail e-mpire

Martijn Bertisen

Google Confidential and Proprietary 2 Google Confidential and Proprietary 2

Google Confidential and Proprietary 3 Google Confidential and Proprietary 3

UK  is  the  leader  in  the  world  for  e-­‐commerce    

Internet  economy  has  an  export  surplus  

13%  of  all  purchases  done  online  

£120bn  internet  economy  

Highest  e-­‐Commerce  spend  per  capita  

Source:  The  Boston  Consul1ng  Group,  “The  Internet  Economy  in  the  G20”  

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UK  retailers  are  gaining  trac5on  interna5onally  Interna5onal  Searches  for  UK  Retail  Brands1  (Indexed  –  Rebased  to  2010)  

Europe            +39%  

N  America    +44%  

Asia                        +49%  

Oceania          +83%  

Others              +63%  

2012  

212  

2011  

152  

2010  

100  

2x  growth  rate  of  searches  by  UK  consumers  

Source: Google, StatCounter, Civic Consulting Survey (2011) for EU DG Health & Consumers, OC&C analysis

68%    

of  leading  UK  apparel  retailer  traffic  comes  from  interna5onal  

markets  

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Retailers  Delivering  Outside  the  UK  (%  Retailers)  

Languages  other  than  English  Offered  by  Retailers    (%  Offering  Languages,  %  Offering  Specific  Language)  

21%

21%

22%

10%

26%

<  5  Countries  

Not  Offered  

>100  Countries  

5-­‐40  Countries  

74%  

eg  House  of  Fraser,  Dorothy  

Perkins  

19%5%

10%13%

53%

More  than  10  

7  to  10  

4  to  6  

1  to  3  

None  

47%  

eg  Sports  Direct  

17%18%

22%24%

31%40%43%

Chinese  

Russian  

Japanese  

Portuguese  

Spanish  

French  

German  

eg  Mothercare,  Wiggle  

eg  Chain  Reac5on,  Next  

Interna5onal  capabili5es  have  become  the  norm  

40-­‐100  Countries  

Google Confidential and Proprietary 6 Google Confidential and Proprietary 6

Total Score (10 0)

Indexed Share of International Que ries (1 00)

Indexed Volume of

International Queries (100)

Indexed Growth Rat e of

Internationa l Queries (100)

26 Specsavers 57 39 54 24 27 JP Bode n & Co 57 35 60 22 28 SimplyEle ctronics 56 55 26 33 29 Moth ercare 52 20 60 26 30 AllSaints 52 50 37 20 31 The Savile Row Company 49 56 23 20 32 Match es Fashion 49 48 20 32 33 Kitbag 48 51 34 13 34 Watchshop 47 26 14 56 35 Cath Kidsto n 45 23 47 22 36 Mamas & Papas 44 20 45 25 37 Monsoon UK 44 22 55 12 38 Overclo cke rs 44 32 36 21 39 Surfd ome 43 20 22 45 40 Reiss 43 22 40 25 41 Hobbs 39 18 36 26 42 TM Lewin 39 30 32 16 43 Sweaty Betty 31 18 12 34 44 Links of Lo ndon 30 25 34 3 45 Holland & Barrett 28 23 6 29 46 Corsets UK 27 26 1 29 47 Aspinal of Londo n 25 20 5 26 48 Isab ella Oliver 22 31 12 1 49 Sofa .com 21 18 1 25 50 DV 2 47 19 25 13 0

Total Score (100)

Indexed Share of International Queries (100)

Indexed Volume of

International Queries (100)

Indexed Growth Rate of

International Queries (100)

1 ASOS 100 58 100 46 2 Farfetch 99 92 45 66 3 Book Depository 98 96 63 41 4 Burberry 96 100 83 12 5 Boohoo 93 26 64 100 6 Net a Porter / The Outnet 89 75 78 30 7 Beauty Bay 86 60 21 94 8 Photobox 83 72 72 24 9 Jimmy Choo 81 88 64 13 10 Chain Reaction Cycles 76 65 65 25 11 Topshop / Topman 72 35 88 24 12 Pro-Direct Soccer 72 68 60 18 13 Wiggle 72 55 62 29 14 Agent Provocateur 71 75 52 18 15 Clarks 70 51 73 19 16 Superdry 69 40 61 41 17 Endclothing 68 47 31 60 18 Mulberry 63 54 58 17 19 Ted Baker 62 33 53 40 20 FeelUnique 61 41 43 41 21 Charles Tyrwhitt 61 56 43 26 22 Karen Millen 60 43 57 22 23 Dorothy Perkins 60 18 62 41 24 Harrods 58 42 58 18 25 River Island 58 17 72 28

Internationalisation Index: Top 50 Indexed Scores Based on Consumer Searches1

The  Jewels  of  Britain’s  Retail  e-­‐mpire  

Source: OC&C Website Checks, December 2012, ComScore ,OC&C analysis

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Interna5onal  ecommerce  set  to  be  28Bn  by  2020  

Sales  from  UK  eRetailers1,  UK  &  Interna5onal  (£bn,  %  Total,  %  CAGR)  

28 (40%)

2019

63

39 (61%)

24 (39%)

2018

56

37 (65%)

20 (35%)

2017

50

34 (68%)

16 (32%)

2016

45

33 (72%)

13 (28%)

2015

40

31 (76%)

10 (24%)

2014

36

28 (79%)

8 (21%)

2013

32

27 (83%)

5 (17%)

2012

28

24 (86%)

4 (14%)

2020

41 (60%)

69 Forecast

7x  growth  rate  of  interna5onal  ecommerce  

Source: IMRG, Euromonitor, Forrester, Google Queries, OC&C analysis

1.  Excludes grocery, 2man fulfilled and click and collect orders

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Europe  and  Asia  will  be  the  engines  of  growth  UK  ecommerce  InternaDonal  Sales  Growth  by  Region  (2012-­‐20,  £bn,  %  CAGR)  

Source: IMRG, Euromonitor, Forrester, OC&C analysis

1.  “Other”  includes  South  America  ,  Middle  East  &  Africa  

2020  

27.9  

9.8  

6.9  

4.5  

2.7  

2.4  

1.5  

Other1  

1.3  

Oceania  

1.9  

North  America  

2.0  

Asia  

4.1  

Central  /  Eastern  Europe  

6.5  

Western  Europe  

8.3  

2012  

3.8  

1.5  

Poland and Slovenia drive 17% of growth in Eastern Europe

China,  Singapore,  Hong  Kong,  Philippines  to  grow  by  £2bn  

Australia  is  largest  single  growth  market  at  £1.32bn  

US  is  key  driver  of  growth  at  £1.1bn  

Ireland, France, Spain & Germany drive 35% of growth in Western Europe

2/3  growth  from  Europe  

 

1/4  growth  from  APAC  

Google Confidential and Proprietary 9 Google Confidential and Proprietary 9

We  believe  winning  retailers  will  share  5  traits  

 No  subs5tute  for  a  great  proposi5on  (range,  price,  service  advantage)  

 Ability  to  spot  and  respond  fast  to  evolving  demand  

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A  number  of  markets  are  ready  Market  Readiness  Framework  Forecast  £bn  2020  

Macedonia

Azerbaijan

Uzbekistan

Bosnia-Herzegovina

Uruguay

Georgia

Indonesia

South Korea

Australia

Japan

France

Germany

China

USA

Peru

Ecuador

Latvia

Kazakhstan

Estonia

Serbia

Morocco

Egypt

Colombia

Croatia

UAE

Philippines

Venezuela

Slovenia

Malaysia

Saudi Arabia

Nigeria

Lithuania

Israel

Chile

Ukraine

Argentina

Hong Kong

New Zealand

South Africa

Slovakia

Romania

Greece Singapore

Taiwan

Portugal

Ireland

Hungary

Turkey

India

Norway

Mexico

Switzerland

Czech Republic

Austria

Sweden

Belgium

Spain

Finland

Canada

Denmark

Brazil Russia

Italy

Poland

Netherlands

Increasing Strategic Readiness

Incr

easi

ng O

pera

tiona

l Rea

dine

ss

Major  Markets  £180bn  

Accessible  Anglophones  £30bn  

Big  But  Challenging  £175bn  

Nascent  Neighbours  £20bn  

Source: Euromonitor, Forrester, Mintel, World Bank, WTO, Crystal 2003, Parcel Force, OC&C analysis

1.  Excludes 2man and grocery

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Find  the  right  audience  with  Google  Trends  

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We  believe  winning  retailers  will  share  5  traits  

 No  subs5tute  for  a  great  proposi5on  (range,  price,  service  advantage)  

 Ability  to  spot  and  respond  fast  to  evolving  demand  

 Cost  effec5ve  routes  to  build  awareness  and  customer  volumes  

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Find  the  right  audience  with  Global  Market  Finder  

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We  believe  winning  retailers  will  share  5  traits  

 No  subs5tute  for  a  great  proposi5on  (range,  price,  service  advantage)  

 Ability  to  spot  and  respond  fast  to  evolving  demand  

 Cost  effec5ve  routes  to  build  awareness  and  customer  volumes  

 ‘Selec5ve’  and  resource-­‐light  localisa5on  

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Get  Local  with  Google  Translator  Toolkit  

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We  believe  winning  retailers  will  share  5  traits  

 No  subs5tute  for  a  great  proposi5on  (range,  price,  service  advantage)  

 Ability  to  spot  and  respond  fast  to  evolving  demand  

 Cost  effec5ve  routes  to  build  awareness  and  customer  volumes  

 ‘Selec5ve’  and  resource-­‐light  localisa5on  

 Mastery  of  the  order  economics  and  mechanics  to  create  profitable  customer  behaviour  

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Thank you!

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We  believe  winning  retailers  will  share  5  traits  

 No  subs5tute  for  a  great  proposi5on  (range,  price,  service  advantage)  

 Ability  to  spot  and  respond  fast  to  evolving  demand  

 Cost  effec5ve  routes  to  build  awareness  and  customer  volumes  

 ‘Selec5ve’  and  resource-­‐light  localisa5on  

 Mastery  of  the  order  economics  and  mechanics  to  create  profitable  customer  behaviour