e-commerce introduction to pl with key trends 2014

e-Commerce

PART I

Author: Justyna Skorupska

Lecturer: Justyna Skorupska

September 2014, Warsaw

Agenda

1. Definition & introduction to the market

environment - Key trends

2. Online sales in relation to company’s key

business processes

Understanding changes in buying process

Introducing online in offline company

3. Operational Techniques of selling in

e-commerce

Understanding the customer

Online merchandising

Customer service

Definition & introduction to the

market environment - Key trends

1. What is e-commerce?

• E-commerce – all activities and

procedures that use electronic means

and devices, using computer networks

in order to conclude remote transaction / close remote sale

E-commerce

≠

e-marketing

1.1 E-commerce is not only about

sales channel

It is about all the environment company marketing perspective:

Offline marketing – Point of Sale (POS)

Online marketing

Tomasz Mazur, Wybrane aspekty działań marketingowych producenta wspierające sprzedaż online , Polish eCommerce Summit 2014

1.2.1. E-Commerce:

macro/micro-environment

• Marketing agencies • E-commerce agencies • E-commerce platforms

suppliers • Software houses • Payment systems • Hosting agencies • Logistics companies • Warehousing

companies

• Market associations

• Market experts

• Consulting agencies

• Media

• Country Legislators

• EU Commision

• Many other...

1.2.2. E-commerce

macro/micro-environment

• Manufacturers • Distributors • Wholesalers • Offline trade (TT+MT) • Online shops

• STAKEHOLDERS (business parnters)

• COMPETITORS

1.3.1. E-commerce

Europe

Author: Justyna Skorupska

1.3.1. E-commerce

Europe

1.3.2 E-commerce

Southern Europe

1.3.3 E-commerce

Central Europe

1.3.4. Poland compared to Europe

% of PL internet users buy online

13

Source: Garapich A., E-commerce w polsce. Rynek, nabywcy, trendy, PBI

Purchased products

For each category of products listed on the chart, select if you ever bought them by the Internet and if you are going to buy them in the future.

% for answer „I bought in the past”

14

22%

24%

26%

29%

38%

39%

40%

41%

44%

45%

45%

51%

53%

55%

57%

57%

58%

59%

66%

77%

80%

insurance

groceries

articles for collectors

pharmaceutical products

computer software

multimedia (applications, e-books, etc.)

jewellery

furniture and interior design

computer games

cars and automotive components

travel, reservation

articles for children / toys

sportswear

cosmetics / perfumes

computer equipment

footwear

tickets to the cinema / theater

phones, smartphones, tablets, GSM accessories

electronics and household appliances

books, CDs, movies

clothing, accessories

http://www.ecommerce.gemius.pl/raport-e-commerce.html

Most recognize e-commerce

services in PL

15

Factors affecting on the choice of

particular service

What makes you decide for first purchase at the particular website instead some other, offering similar products / services?

16

http://www.ecommerce.gemius.pl/raport-e-commerce.html

Źródło: Megapanel PBI/Gemius, luty 2013

1.3.3.TOP 4 e-shops categories in PL e-

commerce

Jewellery

69,8%

Clothing

68,6%

General eshops 58,9%

Toys & small children

60,8%

Flowers 68,4%

Weapons & military 81,8%

Automotive 66,6%

Erotics 66,1%

1.4 E-commerce

Obstacles of internationalization

1. Insuficient offering of legal services on the

cross-border level

2. Lack of infromation for companies wanting

to sell online and lack of clear customer

rights regulation

3. Unproper payment systems and logistics

4. Many malpactices and disputes that are

impossible to solve

5. Insuficient cover of fast broadband and

technological solutions EU Commision, Główne przeszkody w funkcjonowaniu

jednolitego rynku cyfrowego

The eTail International Delivery Report 2014

1.4.1

Obstacles - logistics example

The eTail International Delivery Report 2014

1.4.1

Obstacles - logistics example

1.5 E-commerce

How to sell internationally?

1. Online strategy

2. Niche products gives the possibility to

think about the cross-border

perspective

3. Knowledge – on e-commerce and

about the markets

4. Sufficient funding

5. Managing the cost of logistics

5. Payment methods popular in target countries

6. Trust of the local customers – prefering country

entrepreneurs

7. Accepting the local customer rights

8. Knowledge or advisory on legal issues (TAX,

intelectual property, administrative law, regulation

on transport cost, customer contracts law)

9. Knowing or hiring employees with the knowledge

of local languages

1.5 E-commerce

How to sell internationally?

1.6.1. E-commerce

market trends

Ongoing growth in e-commerce sales and profesionalization

Growing sector of e-commerce operational processes

outsourcing

EU Consumer Rights directive – changes in procedures and

shop regulations

New „self pick-up points” – using existing infrastructure

Expansion and internationalization of companies across

Europe

outsourcing logistics and distribution points in low-cost areas

Consolidation of smaller e-businesses against big competitors

1.6.2. E-commerce

market trends Any device any platform customers will use multiple device to find and buy the products what will

affect company’s strategy and technological approach to e-commerce

ROPO effect Research Online Purchase Offline – the way the customer search, find and

buy the product. It is more about which channel does the customer use and

how structure the sales processes in companies in order to generare the

biggest revenue.

The Super Consumer... Super Consumers are a segment of Heavy Users that are highly engaged with

a category and a brand beyond their high purchasing levels. Super

Consumers might have a special connection or association with a brand, or

they may value certain aspects of a product’s usage more than other buyers.

Super Consumers to purchase your product more often than the average

Heavy User. The company’s role is to retain and offer the best possible

customer service/customer excellence.

1.Cube Research 2. Key trends for e-commerce, Global Ecommerce Summit 2014, Wijnand Jongen

2. Online sales in relation to

company’s key business processes

Understanding changes in buying

process

Online sales in relation to

company’s key business

processes

The New Shopper. Today’s Purchase Path and the Media that Influences It. Online surveys among those aged 16 or older were completed in 17 countries by Microsoft Advertising & Carat US,, 2013

The proces of buying

is no more linear!

Nowadays customer having a mobile device can be in one local store and in many online shops

New structure of buying decision proces:

Online & offline

Recomendations

27

Do you trust recomendations and opinions posted in the web?

Trust recomendations and

opinions posted in the web

Yes totally Yes No Partially

Let’s discuss

Fundamental needs of shoper stays the same. It is all about new available

sources of information. Before choosing a product customer needs

mainly: info about product, opinions/recomendations, price.

THANK YOU!

Justyna Skorupska CEO

justyna.skorupska@symcore.net

M: 781 580 484

www.symcore.net

eBusiness Consulting Sp. z o.o.

Ul. Londyńska 25

03-921 Warszawa

NIP: 113-286-66-59

KRS: 469349