e-commerce are you there?
DESCRIPTION
e-commerce is not really happening ye in Israel. In the presentation I propose my approach to why e-commerce in Israel is not yet developed and why this is about to change. Retailers in Israel are facing hard times with the economic downturn along with last years protests against the high cost of living. e-commerce might just be their way to deal with it!TRANSCRIPT
http://www.linkedin.com/in/shayrosen
http://www.facebook.com/shayrs
http://www.slideshare.net/shayrs
M: 052-5118539
Shay Rosen Head of Strategy & Consulting, realcommerce
• Strategy Business analysis, Concept creation, UX, UI
• Technology Robust, Smart, efficient content management & e commerce platforms for
mega sites
• Leadership Powering Israel’s largest and most successful enterprises
The World 2011
The World 2011
Black Friday
$11.4B Total Sales
6.6% Retail Sales Growth
29.3% Online sales Growth
Facts about e-commerce
$1.25B Total Online Sales
Up 33% from last year
292% Mobile Sales Growth (!)
9
Relationship Collaboration SOCIAL CRM
US E-commerce Forecast
10
Relationship Collaboration
Europe E-commerce Forecast
Forrester
11
Relationship Collaboration SOCIAL CRM
• 79% of online European consumers plan to purchase products or services via the Internet in the next six months Online consumers in Norway (89%) and GB (86%) show the greatest propensity planning a web purchase in the near future (Nielsen Global Consumer Report June 2010)
79%
89% 86% 84% 83% 81% 78% 77% 74% 72% 68%
0%
20%
40%
60%
80%
100%
EU
Average Norway UK Poland
Austria
Ireland
Switzerland
Germany &
Czech Republic
Denmark Italy Spain Netherlands France Belgium
E-commerce Maturity
Israel E-commerce
2011מרץ , כלכליסט
Israel E-commerce Myths
• Israelis are afraid to pay online
•
• Israel is a Small Country, Stores are near by, There’s no need for e-commerce
•Everybody believes prices are
better in the store
Israel E-commerce Myths (1)
•Israelis are afraid to pay online • Changed dramatically since the arrival of the coupon trend.
•54% of credit card holders already bought something online
•Large growth of Paypal accounts in Israel
Israel E-commerce Myths (2) • People need to feel and touch the merchandize, Nobody will buy
clothes online
Israel E-commerce Myths (3) • Israel Is a Small Country, Stores are near by, There’s no need for
e-commerce • Really? what about traffic, parking, standing in lines?
Israel E-commerce Myths (4) • Everybody believes prices are better in the store –
unfortunately that’s right
Israel E-commerce Truth • E-commerce in Israel is poor • Most Retailers don’t sell online
• Many of Those who do sell online offer better prices in stores
• Majority of online stores in Israel have bad UX and bad customer service
Israel 2011 - change is here
2009
Israel 2011 - change is here • Digital revolution is here • 40% Smartphone penetration (Higher than US and Eu) • 90% Facebook penetration (2nd in the world) • Highly engaged and active
Israel 2011 - change is here
(בשקלים)ב "מחירי ישראל לעומת ארה -לקנות דרך האינטרנט
ב"מחיר בארה מחיר בארץ פריט -פער מחירים ישראל
ב"ארה
Hoover H1.Inf 1,309 366 358%שואב אבק עומד
Switch Peg Perego 5,635-2,039 1,339-933עגלת 421%
City Mini BabyJogger 2,849-1,339 1,489-649טיולון 191%
Nike SHOX Nz Si 484 298 162%נעלי
SPORTSMAN 400 884 757 117%טרקטורון צעצוע
RIDE Kent Insulated 690 596 116%מעיל סקי
Columbia Core 149 74.6 200%כפפות נוער לסקי 80 פרפיוםליידי מיליון או דה רבאן פאקו
ל"מ359-306 258
139% קרם יום לפנים צוואר ומחשוף פלטינום
ל"מ50לנקום 579 466
124%
Prodigy Powercell 699 449 155%סרום הלנה רובינשטיין
Osprey Kestrel 38 719 414 174%תרמיל טיולים
Ynet , 2011דצמבר
Israel 2011 - change is here
2012
E-commerce in Israel?
OMG! Cannibalization • Staples – 45% of sales are online
• Office Depot – 40% • Victoria’s Secret - 16% • Gap – 10%
It’s not Cannibalization – it’s adjustment
Setbacks • Integration • High costs • Synergy with retail operation • Lack of know how • Does not fit organization structure
Postponed e-commerce projects
Evolve
Fact: Consumption is a digital activity • 75% research online prior to buying(!) • Price comparison sites • Search for information • Product reviews • Social (Talking about) shopping
Consumers already visit your website for information – why send them away?
Price
• In Bold – Lowest prices online! • In the front – Selected items must go lower than in store • Inside – Can be equal • Never higher than in store prices!
A mater of perception Prices on the website just can’t be higher
Shoesite.com 2000 - $1.6M
“In terms of the three
major areas - service,
selection and price -
you can really offer two
of them in the same
time.
Our brand was in
service and selection”
Tony Hsieh, CEO
• Toll-free number shown everywhere and not hidden
• Free shipping and returns
• 365-day return policy
• 24/7 availability (same working hours as the Internet…)
• 24/7 Warehouse
• Promise delivery within 4-5 business days*
* Usually upgrade to overnight shipping by surprise
75% Returning customers
$110 $140 First timer average vs. returning customer
User Experience – It’s about breaking barriers • Create confidence
• You are not alone • Nothing is irreversible
• Special deals online
• Ease of use
• Fun & smooth experience
User Experience – It’s about breaking barriers • Think about the bounce rate • 8-12 Seconds to bounce! • Return policy & customer service • Lower Prices & Free shipping • Invitation to enter
• Attractive Deals & related products • Orientation:
• Search • Flat Navigation • Intuitive Product browsing
• 24/7 customer service • Trustworthy product reviews & Ratings • Shopping Cart always present • Keep in touch
Measure & Optimize Constantly
Creating confidence Breaking Barriers(1)
Added Values
Creating confidence Breaking Barriers(2)
24/7 Customer Service
Orientation • Search • 4 ways to browse products
Invite • Attractive promotion • Deals
Functional area: My Account
Shopping cart
The importance of Mobile
Social Media – Handle with care • Facebook / Twitter:
• Customer care • Support • Drive Traffic • Keep in touch
• Blog: Info & Review
• Youtube: Product info videos
Complete e-commerce operation
• This is life • Create a new P&L – that’s the only way • Assign a team • Plan • Set Goals, Objectives & Budget • Launch • Be patient, Measure, Optimize and Evolve • It’s worth it!
Do it – it’s 2012!
Looks Complicated ? Expensive?
http://www.linkedin.com/in/shayrosen
http://www.facebook.com/shayrs
http://www.slideshare.net/shayrs
M: 052-5118539
Shay Rosen Head of Strategy & Consulting, realcommerce
E-Commerce Are you there?