presentación melanie frtig - eretail day méxico 2015

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INDUSTRIES ENTERING THE ECOMMERCE BUSINESS: PORQUE Y CUALES SON LOS DESAFÍOS QUE GENERA ESTE MOVIMIENTO

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Page 1: Presentación Melanie Frtig - eRetail Day México 2015

INDUSTRIES ENTERING THE ECOMMERCE BUSINESS: PORQUE Y CUALES SON LOS DESAFÍOS QUE GENERA ESTE MOVIMIENTO

Page 2: Presentación Melanie Frtig - eRetail Day México 2015

Melanie Frutig • Novembro 2015

Page 3: Presentación Melanie Frtig - eRetail Day México 2015

Who I Am?

• Melanie Frutig

• Graduated in Hotel Management at

Canberra University, Australia

• Post graduation in Finance at FGV, Brazil

• MBA in Management at Fundação

Dom Cabral, Brazil

• Post MBA in Digital Marketing at

Kellog University, USA

• Leading the digital sales channel at Electrolux

do Brasil since 2009 - 6 years working in the

digital world!

Page 4: Presentación Melanie Frtig - eRetail Day México 2015

• Entire production was for own

consumption;

• Production technology

improved, more than required was

produced;

• Stock emerged and it became

bargaining chips for different products;

• Banks and coins started emerging;

Source: http://www.ascarassociados.com.br

The First Steps of Trading

Stock!

Page 5: Presentación Melanie Frtig - eRetail Day México 2015

The Appearance of Stores

By 1700…

• the supply in small towns

happened trough the first

commercial establishment

(called the General Store)

Source: http://www.ascarassociados.com.br

The first stores…

Page 6: Presentación Melanie Frtig - eRetail Day México 2015

Industrial Revolution an Evolution

• Dispute for consumers started being

more intense.

• Industries were forced to produce

specific products and trade needed

specific stores.

Source: http://www.ascarassociados.com.br

SegmentedProducts

Page 7: Presentación Melanie Frtig - eRetail Day México 2015

And now...Grocery Stores!• Communities started to grow

• Specialized and segmented stores were

needed.

• Grocery Stores emerged. They were

dedicated only to selling food in bulk.

Source: http://www.ascarassociados.com.br

Segmented Stores

Page 8: Presentación Melanie Frtig - eRetail Day México 2015

Cash and Carry Shop...the New World!

• In 1850 Paris launched the first Department Store, where items were organized by different divisions;

• In 1912 the USA opened the first cash and carry Shop. With predetermined prices and packages.

• Products began to be distinguished from each other by brands and manufacturers.

Source: http://www.ascarassociados.com.br

Differentiationby Brand

Page 9: Presentación Melanie Frtig - eRetail Day México 2015

“Perhaps we should call this

the Amazon era, but the advent of e-

commerce has shaken the retail world to

its core. “ Josh Leibowitz

• That’s when fundamental

changes started in the way

people shopped that we’re still

living today.

Digital Culture > 1990

Source: Josh Leibowitz Chief Strategy Officer, Carnival Corporation_linkedIn

Different place of trade

Page 10: Presentación Melanie Frtig - eRetail Day México 2015

New Place of Trade

Brand Differentiation

Segmentes Stores

SegmentedProduct

Stores

Stock

Page 11: Presentación Melanie Frtig - eRetail Day México 2015

In the B2C Segment

Brick and Mortar

Pure Players

Direct to Consumer (DTC)

Page 12: Presentación Melanie Frtig - eRetail Day México 2015

Why Should Brands Sell Directto Consumers......

3 Main reasons:

• Reinforce Brand Image and Awareness;

• Boost Customer Loyalty;

• Increase Revenue;

Other reasons….

Source: Adaptation of Reuben S. Hendell is

the CEO of BrandShop

???

Page 13: Presentación Melanie Frtig - eRetail Day México 2015

1. Profit from Brand Strength & Media Investment

• Media investment for brand awareness tend to be huge. Align the investment until the end of the conversion funil.

• Institutional website usually has its own digital media budget.

• Brand website has the best and more relevant product content.

• Seo & Sem with high relevance.

Lets profit from it!

$ $$ $

Co

nsu

me

r Jo

urn

ey

Page 14: Presentación Melanie Frtig - eRetail Day México 2015

2. Advance in the Customer PurchaseJourney• Retailers usually acquire customers

in the late stages of buying, brands

can start engaging at the first stage

• You will guide him trough the

funnel

• Give him lot of information within

your website for him to research.

• Make your store an option to him

• Sell!

THE FUNNEL: CUSTOMER JOURNEY VIEW

$ $$ $

Page 15: Presentación Melanie Frtig - eRetail Day México 2015

• Consumers want to by

directly from their

preferred brand

• They feel more confident

and reliable in buying directly

from the manufacturer

• Keen to pay higher prices

3. Meet Consumer Demands

Page 16: Presentación Melanie Frtig - eRetail Day México 2015

• Offer full product line

• Reliable product content

• Deliver service quality alignedto brands mission

“A brand's ability to effective tellstories creates stronger bonds both pre and post purchase”

4. Maintain Complete Brand Control

Bra

nd

Web

site

Ret

aile

r W

ebsi

te

Page 17: Presentación Melanie Frtig - eRetail Day México 2015

Bra

nd

Web

site

Ret

aile

r W

ebsi

te

• Offer full product line

• Reliable product content

• Deliver service quality alignedto brands mission

“A brand's ability to effective tellstories creates stronger bonds both pre and post purchase”

4. Maintain Complete Brand Control

Page 18: Presentación Melanie Frtig - eRetail Day México 2015

5. Customer information...it’s allyours now!

• A/B Testing helps you

understand your

customer

• Test hypothesis in the

product development

phase for instance

Page 19: Presentación Melanie Frtig - eRetail Day México 2015

6. Understand and Talkto your Consumer

• Your are the owner of

information, reviews, customer

satisfaction information… USE IT!

• You can talk to your consumer

and understand what he wants

regarding product design,

quality…

• ACT fast!

Page 20: Presentación Melanie Frtig - eRetail Day México 2015

7. Deliver Expetional PurchaseExperience

“Deliver the most impressive

customer experience trough

the customer journey and you

will have people talking about

your brand on facebook,

restaurantes, bars,… They will

become brand ambassadors.”

• You don’t risk to link your

brand to a bad customer

experience.

Page 21: Presentación Melanie Frtig - eRetail Day México 2015

Where do we Fail

Industries entering the direct to consumer market should avoid some

common mistakes…

???

Page 22: Presentación Melanie Frtig - eRetail Day México 2015

1. Not Defining a Coherent Market Approach

• What is the main purpose of

your online store?

• How will your commercial

strategy look like?

• What are your main KPIs?

• How will you inform your

retailers you are entering the

market?

• How are you going to launch

your online store? Soft launch

X mass press?

• What are you going to

outsource?

• Who is going to run the online

store?

Page 23: Presentación Melanie Frtig - eRetail Day México 2015

2. Creating a Separate Website forthe Online Store

• You might loosevisual identity

• Your customersmight feel lost and not follow the conversion funnel

• Be careful with website reputation on search engines

Page 24: Presentación Melanie Frtig - eRetail Day México 2015

3. Operating the online store as the maincompany

• You will need a separate team

• You will have to develop

different processes and solution

to different problems

• You will need to hire different

suppliers

• You will need flexibility and

agility

• And most important of all,

different KPI´s

Page 25: Presentación Melanie Frtig - eRetail Day México 2015

4. Hiring One Person to Run the Show

• You will need a team and not only one more person.

• The company will have to hire specialized people to run the business in order to acquire knowhow.

• Internal resources might not have the necessary knowledge.

Page 26: Presentación Melanie Frtig - eRetail Day México 2015

5. Considering the social media budget as different wallets

• Once the industry enters the

digital sales market, it will have to

rethink the entire digital media

budget

• Invest in the right media for the

right purpose.

• Set specific KPI´s

Source: Chleba agency – company deck

Page 27: Presentación Melanie Frtig - eRetail Day México 2015

What Now

• Industries that have

an established online

store, will profit from

the market place boom,

loyalty programs,…

???

Page 28: Presentación Melanie Frtig - eRetail Day México 2015

Thank you :)

Melanie Frutig

[email protected]

+55 11 98912 6202