eCommerce opportunity assessment @ Food market www.alfonsogadea.es

1. eFood project
jun 2012 by
www.alfonsogadea.es

2. eCommerce, the industry at a glance
B2C eCommerce volume grew from €7,760 in 2009 to €
9,114 million in 2010, experiencing an increase of
17.4% (vs. 15.9% in 2009), based on a triple factor:
►
►
The total percentage of Internet users rose
in 2010 1.1 p.p., from 64% in 2009 to 65.1%.
The number of Internet purchasers rose by
5.8%, from 10.4 million to 11 million individuals
(from 41.5% upon Internet users to 43.1%).
►
Evolution of number of internet users and
Volume ofAverage commerce (million €)
B2C electronic annual expenditure per Internet
purchases
purchaser from €749 to €831 (+10.9% increase),
being the main origin of the growth.
Source: Red.es, ONTSI, Nov 2011
(data 2010, carried out by TNS)
2

3. eCommerce Market assessment
Q3 2011 in Spain
– eCommerce volume grew 27.4% up to €2,418 millions, including purchases out of Spain and foreign
purchases in Spain.
– National volume reached €1,053 millions representing an increase of 27%, and a total € 3,662 in the
last 12 months.
– This volume corresponds to 12.88 million transactions (+27.4%), 48.5 millions in the last twelve
months.
Quarterly eCommerce volume evolution and interanual increase
Source: Comisión del Mercado
de Telecomunicaciones (only
paid by credit card included,
not PayPal or bank
3 transfers).

4. eCommerce Market assessment
eCommerce distribution by industry
Supermarkets and grocery shops
Other food commerce
Source: Comisión del Mercado
de Telecomunicaciones (only
paid by credit card included,
not PayPal or bank
4 transfers).

5. Role of the Internet in the purchase process
5

6. Food online purchase at a glance
La compra @nline
8M
amas/os de casa
digitales (<50años)

70% se conecta a diario
Promos
Promos
49%
Comparar
Precios
precios
44%
con
tienda
física
sin
email, comparar, noticias

Viajes 37%
Viajes
compran
65%
buscan
InforInfo
mación
Entradas
Entradas
25%
Ropa
Ropa
21%
FMCG 17%
FMCG
Libros/Cd 14%
Libros/Cd
Elcorteingles.es
Mercadona.com
Carrefour.es
Condisline.es
Eroski.es
Alimerkaonline.es
Capraboacasa.com
Gadisline.es
Alcampo.es
…
Hipercor.es…
Tudespensa.com
Hiperdirect.es
Ulabox.com
Alice.es
…
en
internet
2,8h/día
tradicional
canal online
pure online
comparador
(Amazon.uk)
5.000
>5.000
surtido online (SKUs)
Datos: Nielsen
Infografía: AlfonsoGadea.es
6

7. Analysis of online players in the food market
Spain
With
physical
store
Carrefour.es
Condisline.es
Eroski.es
Alimerkaonline.es
Capraboacasa.com
Gadisline.es
…
Without
physical
store
Elcorteingles.es
Mercadona.com
Current
market
players
Alcampo.es
Hipercor.es
Tudespensa.com
Hiperdirect.es
(Amazon.es)
Ulabox.com
Alice.com
Less than
5.000
SKUs
online
More
than
5.000
SKUs
online
7

8. The target in Spain
8.000.000 Digital housewifes
(<50 years)
70% connects everyday
They spend 2,8 hours everyday on-line
(1st email, 2nd comparing, 3rd news)
They buy: 37% travels, 25% tickets, 21%
clothes,17% mass market , 14% books/CD
What they want: 65% Information, 59%
promotion, 44% compere price
Source: Nielsen
8

9. Analysis of online players in the food market
Portugal
With
physical
store
Elcorteingles.pt
Portelacafes.pt
Continente.pt
Quenteebom.com
Jumbo.pt
…
Pingodoce.pt
Current
market
players
Without
physical
store
Superbio.pt
Airport-shopping.eu
-
Gourmetportugal.pt
…
Less than
5.000
SKUs
online
More
than
5.000
SKUs
online
9

10. The target in Portugal
35% have a social network profile
60% connects everyday
10% shops online
58% households with access to internet
40% of the online stores increased over 20%
in sales volume during 2011
Source: INE, Marktest
10

11. Opportunity assessment
Should we be there
High fixed costs:
Hard
to be
-technolgy,
operations.
-customer
acquisition
Customer habits:
-retail dependent
-wide assortment
-20-40% private
labels
- Customized
product or gift.
Ways
to be
- Discount is
worth for
mensual
purchase
amount (+€25).
- Partnership &
Multiplatform.
- 24/7 global
flagship store.
- Wide
assortment and
easy search.
- Excellence in
service,
operations and
customer
- Couponing:
service.
traffic to
- Volume and
retailer or
desintermediatio
other platform.
n: lower costs
- Branding
and prices, and
research.
higher margin.
- Prepared for
outcoming
trends:
• S/F/M-commerce,
purchase clubs.
• RoPo, droppoints,
showrooms.
Overall: we shoud be where the consumer is and expects to find
• Searchers,
us comparators,
opinion.
11
eComm
musts
Additional
features

12. Opportunity assessment
Ways to be there: Our own store
– Customer looks for just 1 or 2 purchase places:
=
x sites
x carts
x checkouts
x expenses
x deliveries
12

13. Opportunity assessment
Ways to be there: Our own store
– We give them something special and different from the retailer:
–
–
It is valuable as an additional feature.
Disadvantage: aimed to occasional gifts not to regular purchase / consum.
diseloconchocolate.es
13

14. Opportunity assessment
Ways to be there: Our own store
Snack mensual purchase
Teens & Youth
target
Families
Planned?
Planned?
%YES
%NO
NO
(impulse)
€ purchase
-% discount
+ € delivery
No
ePurchase
NO
Coupons
Branding
Research
Worth it
Traffic to
retail
YES
ROI
14

15. Reasons to be on-line
Loss of sales
Channel for client acquisition
Brand image
Marketing activities at low
cost
Strategies from all ensigns is
to be multichannel so they can
attend to the customer when
he needs it. Internet,
nowadays , it´s a necesity.
Being in the internet permits
register and capture new
clients without doing large
advertising investments.
An established brand and lider
in his geography has to attend
the on-line channel, otherwise
it goes against the trademark.
Any action comunication using
your own database of
registered users has a very
low cost. Por example
distribution of promotions online with a newsletter
attached to users.
15

16. Why to buy on-line? Relevant factors
Price/promoti
ons, offers
Comfort
Facility to
buy
Wider choice
and range
Only
available
way
Speed of
supply
By
recommendati
on
To try
Other
Don´t know
Source: Red.es Observatory
16

17. Elements of an eCommerce solution
Technology
Marketing
Logistics
• Design and construction
of the site
• Facebook Store
• Content management
• Payment methods
• Reports and analytics
• Couponing
• Sampling: Try & Buy
• Storage, picking and
packing
• Commitment and quality
certificates
• Customer support
• Control of batchs
17

18. Social commerce
Social commerce is on everybody’s minds and on the
minds of most marketers in particular.
• What differences social commerce
Social commerce can be much
from online stores?
more. As with their traditional
online stores, e-retailers need
to understand their customer´s
needs, and they need to be open
to experimenting with social
channels to make it work for
them.
• Why to offer a social benefit to
the customer?
Because without it, there is no reason to buy with
social network over a traditional online store
There is a clear link between the
customer experience and business
success.
18

19. Success Purchase Funnel
Ventas = Visitas x % conversión x pedido medio
•
Visitas
–
–
•
posicionar: elevada inversión en SEM (Google Adwords, Adsense, display
luchando contra su algoritmo que trata de igualar coste de adquisición a
margen) y SEO.
captar: marketing, affiliate mk, comparadores, multiplataforma, emailing, social
media, content mk (inbound).
Conversión (experiencia de compra):
–
–
–
•
•
•
buscador (30% abandona porque no encuentra),
fichas de producto (muy visual), carrito (sólo llega el 20%),
forma de pago (65% tarjeta, 12% PayPal, 10% c/ reembolso, 5% transferencia;
futuro móvil y créditos FB, Apple…).
Pedido: aumentar el importe mediante cross / up selling, paquetes.
Operaciones: externa (80%) vs interna (inversión, control, implantación,
integración, flexibilidad, atención).
Repetición: social media, operaciones, atención, CRM.
19

20. Online purchase journey
20

21. Conversion
Nacho Carnés
21

22. Conversion
22

23. Conversion
23

24. Case study: Carritus
http://www.alfonsogadea.es/carritus-revoluciona-la-compra-jesus-haro-ceo-i/
La compra en
650k
visitas
únicas/mes
68%
170k us. registrados
114€
mujeres
de 28 a 52 años
ticket medio
productos/cesta
39
los más comprados > azúcar > leche semidesnatada > papel higiénico >
huevos > arroz redondo > caldo de pollo > papel de cocina > cola lata
_
D L
dom lun
Datos: Carritus
M
mar
X
mié
J
jue
V
vie
S
sáb
Infografía: AlfonsoGadea.es
24

25. Case Study: Alice
25

26. Case Study: FB Store - Venca
La vinculación con los
seguidores incrementa la
conversión
Tw es más efectivo
en llevar tráfico al
site en links
de producto, frente a
FB
Tw es una
importante
plataforma de
dinamización
La generación de contenido debe estar ligada al conocimiento de cuál es el
producto y presentación que consigue más conversión
26

27. www.alfonsogadea.es