Rather than online businesses thinking about moving internationally they should see themselves as a global business from day one.
Ecommerce allows you to reach a global audience and by tailoring service and messaging to international customers retailers can appeal to these markets.
Chris Bishop Founder & CEO of 7thingsmedia delivers a statistically rich, and eye opening presentation on global Ecommerce.
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The Global Push - A Focus on International Ecommerce
1. A FOCUS ON INTERNATIONAL ECOMMERCE
Presented by: Affiliate Management Days, San Francisco
Chris Bishop, Founder & CEO, 7thingsmedia
9th March 2012 Twitter info:
#amdays #theglobalpush
@cpbishop @7thingsmedia @amdays
2. Chris Bishop
• Began in online in 1999 as a publisher
• Digital roles at Johnson & Johnson,
TradeDoubler, Hotel Chocolat and
House of Fraser…
• …before founding 7thingsmedia in April 2009
• Non-Executive Director role at sportswear brand
start-up Tekkers
Marketing Awards:
• Outstanding Personal Contribution to
Affiliate Marketing – CJU 2007
• Listed in VOGUE’s online 100 power list
– Dec 2011
• Marketer of the Year – The Drum Awards – May
2012 shortlist
Hot Shot Rising Star –Performance Marketing
Awards - May 2012 shortlist
3. 7thingsmedia
• Independent performance-based digital media agency, founded in 2009
• Offices in London and New York
• Clients include:
• Recent awards:
• “Best Affiliate Agency” - Winner, A4uAwards 2011
• “Best use of Affiliate Marketing” - Finalist, NMA Awards 2011
4. Affiliate Manager Plus
Launched to 7thingsmedia clients in late 2011
Affiliate Manager Plus main benefits include:
• Reporting automation (via API’s)
• Provide instant affiliate gap analysis
• Rapidly scale affiliate campaigns with
prospecting tools
• Reliable sales pattern checking, affiliate
segmenting and forecasting
• Insightful product-level data to allow
Account Managers to optimised accordingly
5. Performance Awards 2012
We’ve been shortlisted for 8 categories for
the leading digital award ceremony in May 2012
• Best agency: 7thingsmedia
• International excellence award: 7thingsmedia
• Best use of data: Affiliate Manager Plus
• Hot shot award: Chris Bishop
• Best consumer targeting campaign: Agent Provocateur
• Best new entrant: Ideal World
• Best lead generation campaign: Secret Sales
• Best managed affiliate programme: Ted Baker
6. What do we do?
WE MANAGE brands’ digital activity...globally
8. Global Commerce isn’t new!
• Hair Wax – Made in America
• Good looks – Made in England
• Jacket – Made in Turkey
• T-shirt – Made in China
• Jeans – Make in Tunisia
Every year, all the nations of the world export
• Shoes – Made in Italy
goods and services worth nearly $15 trillion.
• iPhone – Made in China
• Watch – Made in Switzerland
That figure is around 40 times the annual global
• Coffee – Beans harvested in Columbia
revenue of Wal-Mart Stores
10. Planning and strategy approach
Seasonality
Promotional Strategy
Spend in Market
Competitor Strategy
Activity React & Reflection &
Targets /
Granular measured tweak plans Learning fed
KPIs to each
Plans against where into next
channel
targets required quarter plans
Trading Plan
13. UK/EU stats
40% of UK online shoppers HAVE
bought from a “foreign” website
- however, only 21% of Germans
only 23% of French
46% of Germans use online banking transfers
(ELV) when buying online rather than on card
60% of payments in
Holland via a direct
debit system, 50% in
Czech Republic
made via cash on delivery
14. UK/EU stats
Average EU consumers spend
£1,000 ($2,000) per year
online versus $550 (£300)
per year in the US
Leading retailer M&S receive an overseas
order every two minutes
CHASE survey
77% of UK business surveyed didn’t
have the systems to support
European expansion
15. EU ePrivacy directive
• EU has introduced this directive is due to concerns
about privacy
• The law is in force now, and has been since May 26
2011.
• Main provisions
– Duty to inform of security risk
– Prohibit storage, surveillance without consent
• However, the ICO has said it will not prosecute
anyone under this rule until May 2012.
16. Affiliate landscape
19% of advertisers spend
Current estimations over a £100k per month
would state that the
affiliate marketing
sector accounts for 59% of
7 – 10% of online respondents also
Ad-spend stated that they
71% of respondents expect work with only
this to increase in 2012 one affiliate
network
Maturing affiliate channel worth
£5billion in sales revenue 2011
18. On Boxing Day 2011, Selfridges Department Store noted
Chinese nationals spent £729 per head compared
to £130 British nationals spent
19. Asia stats
ONLINE SALES AS A PERCENTAGE OF TOTAL RETAIL SALES IN SELECTED CATEGORIES
20. Asia stats
In China, an astounding 30 million
consumers are expected to shop online for
the first time every year until 2015.
That’s a population nearly the size
of Canada; beginning to shop
online every single year
21. Asia stats
Dominance
Taobao.com 79% of transaction value in China
(in comparison, Amazon is 14% in the US)
Only 19% of consumers go to the
official site by choice (in comparison to
40/60% in the US
25% of Ecommerce
demand for Social Shoppers
products not Double the rate of tendency
available in physical to write and read reviews
stores or country versus the US
22. Asia stats
Delivery benefits
High net individuals
To ship 1 kilogram
7% of China’s online shoppers are responsible
-$6 in the US
for 40% of total online spend!
- $1 in Asia
By 2015 – China will surpass the
US to become the largest
Ecommerce market in the world
23. Customer journey
Leading Chinese retailer Taobau.com
Customer need (79% of Ecommerce sales value )
deliberately doesn’t appear in the top
search engine (Baidu)
Google
Customer need
Merchant
Taobau.com
AVE. 50/70% referrals come from
Google (Paid and un-Paid) traffic
25. Global performance
• Let data showcase territories on their own
merits;
so as to tap the point(s) of highest return.
• Indentified top potential publishers in each
marketplace
• Set up office in the biggest market place (US)
• Created a local marketing strategy for each
territory
– Including focusing on local events
– ...and in-store activity
– Local events for our local publishers
• Singled-out publishers driving ex-pat sales –
to un-tap a wider community
26. Global performance
Client A
• Launched in the summer of 2011 the US programme now drives equivalent sales as
the lesser long-established UK network
• 4:1 ROI
Client B
• In 2010 international sales account for 10% of the programme sales
• After expansive growth in 2011, international sales can now account for 60% of the
programmes sales, whilst the overall account has grown by 72%
• Net 5:1 ROI
Client C
• 60% of their Boxing Day sales came via an international publisher
• In December 34% of sales were via their top Chinese affiliate
• Post this activity, they launched a multi-channel “Golden Week” for Chinese New
Year (February 2012)
• 12:1 ROI
27. 7 steps to internationalisation
To summarize 7things to do to for your global roadmap:
1. Your website needs to be local in every essence
2. Understand key market differences
3. Invest time in a strategy for each individual country (data, budget)
4. Don’t stop potential new customers from buying (payment gateways)
5. Localize step by step marcoms, customer services, offices
6. Ensure shipping is affordable and you manage your returns
7. ......and finally, understand your short, medium and long term goals!