hot e-commerce trends in europe and how to profit from them - ralf priemer

Hot E-Commerce Trends in Europe and How to Profit from Them

Ralf Priemer

eTrade Summit 2016

Antwerp, 27th of September

•  WHY CHANNEL PILOT CAN IDENTIFY EUROPEAN E-COMMERCE TRENDS FROM THE OWN DATA BASE

•  EUROPEAN TRENDS - SALES CHANNELS

•  EUROPEAN TRENDS - ONLINE SHOP

•  HOW TO GENERATE EFFICIENT TRAFFIC AND OVERCOME BARRIERS OF INTERNATIONALIZATION

AGENDA

CHANNEL PILOT ALREADY CONNECTS…

… with over 2,000 sales

channels globally!

… over 1,200 Online Shops in Europe…

Online Shop

Online shop

CHANNEL PILOT ALREADY CONNECTS…

… many top retailers and great

brands!

DIFFERENT MODULES OF CHANNEL PILOT

Comparison Shopping

Engine

Market Price Analysis

Product Ads

Marketplace Solution

Dynamic Pricing

…and over 2000 more

Online Shop

Locations

CHANNELPILOT BY THE NUMBERS

Company formation

Product launch

Globalisation

Customers

Employees

Hamburg London Paris Milan Madrid Moscow Amsterdam Stockholm Palo Alto

June 2012

over 30% of 1000 top internet stores in Europe

More than 1200 Country access links

More than 40 More than

50

January 2013

Settlement Volume

CHANNELPILOT BY THE NUMBERS

More than € 100,000,000 worth of sales for our customers monthly





AGENDA

CHANNEL PILOT’S TOP 10 SALES CHANNELS FOR ONLINE SHOPS IN CENTRAL EUROPE*

* Source: Channel Pilot data base from over 1,200 online shops in Europe (800 German based). Included sales channels: comparison shopping engines, market places and social media. Affiliate platforms and retargeting platforms are not considered because of overlaps with shown channels.

SALES CHANNEL PERCENTAGE OF REVENUE ONLINE SHOPS GENERATE VIA

THAT CHANNEL

TREND

1. 10.7% ì 2. 10.1% ì

3. 8.2% è

4. 6.5% è

5. 4.5% î

6. 4.0% è

7. 3.2% ì

8. 2.6% é

9. 2.3% è

10. 2.1% ì

STEADY GROWTH BUT NO SURPRISE

IM-PRESSIVE GROWTH

TRENDS: PRODUCT SEARCH ENGINES

•  GOOGLE SHOPPING BIGGEST PRODUCT SEARCH ENGINE AND STRONGLY GROWING

•  CLASSICAL PRODUCT SEARCH ENGINES – WITH FOCUS ON PRICE COMPARISON – LOOSE BUSINESS TO GOOGLE SHOPPING

•  MERGERS & ACQUISITIONS AMONG PRICE COMPARISON SITES (SHOPZILLA & BECOME, NEXTAG & GUENSTIGER …)

•  OTHERS PARTNER WITH GOOGLE AND BRING CUSTOMERS TO GOOGLE SHOPPING AND GOOGLE SEA (TWENGA, FORMER #2 IN EUROPE!)

•  AMAZON AND EBAY ARE MOST IMPORTANT IN MOST EUROPEAN COUNTRIES

•  AMAZON STRONGLY GROWING

•  EBAY GENERATES LESS REVENUE THAN AMAZON AND NOT GROWING

•  MANY NATIONALLY RELEVANT MARKETPLACES: C-DISCOUNT, ZALANDO, LA REDOUTE, TESCO, OTTO, BOL.COM, …

•  NATIONAL MARKETPLACES DO NOT MANAGE TO GO INTERNATIONAL: FYNDIQ, RAKUTEN

•  YANDEX BECOMES A MARKET PLACE

•  FACEBOOK, INSTAGRAM, PINTEREST ETC. ANNOUNCED TO BECOME MARKET PLACES

TRENDS: MARKET PLACES

•  FACEBOOK RECENTLY ENTERED OUR TOP 10 SALES CHANNELS AND STRONGLY GROWING

•  INSTAGRAM HAS RECENTLY STARTED AS A SALES CHANNEL

•  SOCIAL CHANNELS - HUGE E-COMMERCE POTENTIAL:

- INCREDIBLE REACH - GREAT TARGETING OPTIONS (THEY KNOW EVERYTHING ABOUT US)

- REACH CONSUMERS EARLIER IN PURCHASE DECISION PROCESS (“INSPIRATION PHASE”, IMPORTANT FOR EMOTIONAL AND PREMIUM PRODUCTS)

TREND: BIG SOCIAL PLATFORMS GO E-COMMERCE

•  SOME PRODUCT SEARCH ENGINES GROW IMPRESSIVELY DESPITE OF GOOGLE’S AND AMAZON’S PREDOMINANCE:

TREND: RISING STARS AMONG PRODUCT SEARCH ENGINES

STYLIGHT:

ONLINE FASHION MAGAZINE WITH RECOMMENDATIONS FROM PROFESSIONAL FASHION JOURNALISTS AND

CELEBRITIES

+ PRODUCT SEARCH ENGINE

- NO MEDIA COMPANY HAS MANAGED TO LAUNCH SOMETHING LIKE THIS

- STYLE.COM WILL LAUNCH SOON


STYLEFRUITS:

FASHION BLOGGERS RECOMMEND COMPLETE OUTFITS FOR ANY OCCASION

+ PRODUCT SEARCH ENGINE


•  WHY DO THEY WIN WHILE CLASSICAL PRICE COMPARISON SITES LOSE BUSINESS? A) INSPIRATIONS FROM PROFESSIONALS, CELEBRITIES OR BLOGGERS B) UNIQUE OWN CONTENT C) SMART INTEGRATION OF SOCIAL MEDIA CHANNELS D) SMART INTEGRATION OF ONLINE-SHOPS

•  SIMILAR TO ZALANDO’S STRATEGY – “BECOME THE SPOTIFY FOR FASHION”




•  EUROPEAN TRENDS - ONLINE SHOPS


AGENDA

TRENDS: ONLINE SHOPS

•  3 YEARS AGO E-RETAILERS DOMINATED OUR CUSTOMER BASE

•  TODAY MANY CONSUMER BRANDS SELL ONLINE -> DIRECT-TO-CONSUMER INITIATIVES THREAT FOR RETAILERS

•  RETAILERS: IMPORTANT TO INCREASE E-COMMERCE KNOW-HOW AND REACH

•  LARGER ONLINE SHOPS AND STRONG BRANDS PREFER PRODUCT SEARCH ENGINES

•  SMALLER ONLINE SHOPS LIKE MARKET PLACES BECAUSE OF REACH, CONSUMER’S TRUST AND LESS COMMERCIAL RISK

TREND: USE OF (BIG) DATA

•  SINCE MANY YEARS WE HEAR ABOUT BIG DATA

•  UNTIL NOW ONLY MOST SUCCESSFUL ONLINE SHOPS USE THEIR CORE DATA – THE PRODUCT CATALOGUE – WELL AND…


A) ADAPT THEIR DATA ACCORDINGLY TO INDIVIDUAL REQUIREMENTS OF THE SALES CHANNEL


B) AUTOMATICALLY DELIST PRODUCTS THAT ARE NOT MEETING THEIR KEY PERFORMANCE INDICATIONS (KPI)

✗

TREND: SHIFT OF ONLINE MARKETING BUDGET TO PERFORMANCE CHANNELS

•  MANY ONLINE SHOPS EXPECT POSITIVE ROI (>100%) FROM FIRST PURCHASE VIA PRODUCT SEARCH ENGINES – POSSIBLE

•  AT THE SAME TIME THEY ACCEPT TO GET <20% OF ROI FROM (EVEN PROGRAMMATIC) BANNER ADVERTISING

•  SUCCESSFUL ONLINE SHOPS SHIFT BUDGET FROM BANNER CAMPAIGNS TO PRODUCT SEARCH ENGINES - MARKETING “INVESTMENT”

TREND: USE OF DYNAMIC PRICING

•  IN MANY BRANCHES PRICES CHANGE A LOT – CONSUMER ELECTRONICS…

•  RETAILERS OBSERVE MARKET PRICE CHANGES

•  AND CHANGE THEIR PRICES DYNAMICCALY

•  THEY CAN AUTOMATICALLY MANAGE MILLIONS OF PRODUCTS EVEN ON AN ARTICLE BASIS WITH RULES LIKE:

•  “I ALWAYS WANT TO BE AMONG THE 5 CHEAPEST RETAILERS BUT NEVER CHEAPER THAN 87,55 EURO”





AGENDA

A)  TRANSLATION OF PRODUCT CATALOGUE TRANSLATIONS OF PRODUCT INFORMATIONS NEED TO BE INTEGRATED INTO SALES PROCESS SPECIALIZED TRANSLATION COMPANIES CHANNEL PILOT CAN RECOMMEND SEVERAL

INTERNATIONALIZATION


Market Place Integration Product Search Engine (PSE) Link to Online Shop

How Channel Pilot Can Support

Traffic / Revenue Potential + + Integration into all channels

Consumer‘s Trust + - Integrate into market places

Business Risk + - Optimize PSE

Technical Implementation Effort - + Only one connection to

Channel Pilot necessary

Customer Relation - + Integration of PSE

Openness to Integrate New Brands/Retailers +/- + We support in convincing

market places

New Payment Systems in Online Shop Necessary + - Not our focus

B) FIND THE BEST SALES CHANNELS (DIS-)ADVANTAGES OF MARKETPLACES VERSUS PRODUCT SEARCH ENGINE WHEN ONLINE SHOPS GO INTERNATIONAL:

SPECIALIZED E-COMMERCE CONSULTANTS FOR 10 EUROPEAN COUNTRIES

C) TECHNICAL INTEGRATION OF SALES CHANNELS


Online Shop

ONLY ONE CONNECTION

D) ADAPTION OF PRODUCT PRESENTATIONS FOR ALL SALES CHANNELS


E) GETTING SALES CHANNELS PROFITABLE CHANNEL PILOT CAN •  TRACK SALES SUCCESS OF EACH PRODUCT ON

EACH SALES CHANNEL – INCLUDING CROSS SALES •  MAKE SURE THAT ONLY THOSE PRODUCTS ARE

LISTED ON THOSE CHANNELS THAT BRING PROFITABLE BUSINESS


THANK YOU!

[email protected]

MOBILE: +49 172 573 00 33

Ralf Priemer Co-Founder & Managing Director Channel Pilot Solutions GmbH

hot e-commerce trends in europe and how to profit from them - ralf priemer

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