Profitable growth in a foreign countries (part II)
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- How to prepare online shops for their expansion to new markets - How to manage a localization project - What details should be borne in mind when preparing an online shop for a new market (technical aspects, such as payments, trust marks, etc.) - Ongoing tasks. Marketing, customer care, logistics and return of investment in a new market. How, where, for how much and what must be done and how much time does it take. This presentation used in electronic commerce conference "E-komercija '16" by Donatas Gudelis from company MakesYouLocal.
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Profitable growth in a foreign countries (part II)
- 2. Choose right direction Localisation process Business cases Your road to international e-commerce
- 3. Who am I? • Donatas Gudelis (linkedin.com/in/donatasgudelis) • Working with e-commerce since 2010 • Experience in government agency, marketing agencies, web shops, own business. • Founded MakesYoulocal offices in Lithuania, Latvia and Estonia in 2014
- 4. Choose right direction Localisation process Business cases Your road to international e-commerce
- 5. Are there any markets for your business?
- 6. Are the markets accessible?
- 8. Be Baltic company instead of Lithuanian
- 9. • Euro zone. • 3 separate languages with two general (Eng & Ru) • All three countries has more similarities than differences • Open to foreign based web shops • Low competitive level • One web shop- three countries • Launch in 6-8 weeks See it as one country
- 10. •Currency issue •Local payments and Banks issues •Zelando, etc •±40% higher marketing costs •Very well developed web shops •Expensive delivery and return process •Price level very depends on products
- 11. Choose right direction Localisation process Business cases Your road to international e-commerce
- 12. ……in the beginning our focus was on localization (payment methods, trust marks, translations etc.)
- 13. • Choose the right country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate based on new volume • Set new goals Launch To be successful you have to do more We see 5 phases in an international launch
- 14. Market scan Roadmap Localisation Growth plan Site check Market report Manual Norge What tasks we can solve Customer support Online marketing Shop management Text translations Launch
- 15. • Choose the right country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate based on new volume • Set new goals Launch To be successful you have to do more We see 5 phases in an international launch
- 16. Successful expansion abroad is not a sprint, it's a marathon
- 17. Launch Decision phase Market Scan Road Map Main online competitors in the new country A benchmark of your competitors’ web shops Price comparison of your most important products and brands Insights in the marketing environment, important channels An estimate of the online marketing cost for promoting your products Input on customer expectations on delivery and return
- 18. IPOCalculating earnings per order Realized Estonia Estimate Latvia Comments Average Order 150 150 Realised average order the last 3 months, excl. shipping + Shipping income 3 4 Realised average for all orders 3 months -Taxes 31,5 31,5 We all have to pay VAT and income taxes -Items price 71,1 71,1 Your price for products -Shipping cost 3 6 Your cost for shipping -Online payment cost 1,5 1,5 We all payment % out of payments made online -Warehouse operation 2 2 Pick and pack price -Customer service operation 1 2 Labor costs and software expenses divided by the number of orders -Return expenses 0 3 Calculate the return cost and total benefit per. order -Packaging 1 1 Overall packaging costs broken down by. order Earning pr. order 41,9 35,90 Earnings per order (before marketing costs) Calculating earnings per order Realized Estonia Estimate Latvia Comments Average Order 150 156 Realised average order the last 3 months, excl. shipping + Shipping income 3 4 Realised average for all orders 3 months -Taxes 31,5 32,76 We all have to pay VAT and income taxes -Items price 71,1 71,1 Your price for products -Shipping cost 3 6 Your cost for shipping -Online payment cost 1,5 1,5 We all payment % out of payments made online -Warehouse operation 2 2 Pick and pack price -Customer service operation 1 2 Labor costs and software expenses divided by the number of orders -Return expenses 0 3 Calculate the return cost and total benefit per. order -Packaging 1 1 Overall packaging costs broken down by. order Earning pr. order 41,9 40,64 Earnings per order (before marketing costs)
- 19. Launch Localisation process Market Scan Road Map Translations Product text translations Legal package Payment & trustmarks Logistic Local “Look & Feel” Search bar Virtual office Build a trust
- 21. Launch Virtual office Market Scan Road Map Translations Product text translations Legal package Payment & trustmarks Logistic Local “Look & Feel” Search bar Virtual office Local phone number Local address Local return address Native customer support speaker
- 22. • Choose the right country • The competitive situation • Businesscase • GTM strategy • Localisation of the shop • Build trust • USP’s • Focus on the conversion rate • Understand the market • Optimise processes • Build volume through localized marketing • Marketing investment • Optimise and re-negotiate based on new volume • Set new goals Launch To be successful you have to do more We see 5 phases in an international launch
- 23. Choose right direction Localisation process Case studies Your road to international e-commerce
- 24. Online Retailer Service Provider Brand Owner Service/Product provider B2B Case Studies
- 25. Harmonylife.lt - Online retailer
- 26. Markets around us 5 phases in a successful international launch What companies have difficulties abroad and who do it well Tract the numbers A local hero MTTC.lt - Service provider
- 28. PictureHappy.lv - Product/ service provider
- 29. Select.lt - Retailer, Localised companies
- 30. CASE Facebook Bodylab ‘Ride the Wave’
- 32. About Bodylab • Leading training nutrition brand in Denmark since 2001 • Sells more than 610.000 kilo protein powder a year • In 2014 they sent over 350.000 orders to Danish customers • Online shop online in Denmark until January 2015, when Swedish webshop launched
- 37. In January we tried again using only Facebook… Proteinella (Nutella with less sugar and high level of protein) was introduced in december 2015 with very little interest.
- 38. 48 likes 66 comments 3 shares 30.134 reach Sales: $
- 39. Meta posts 2.000+ likes 2.000 comments 134 shares 647.741 reach Sales: $$$
- 43. So far… 264 likes 187 comments 16 shares 140.000 reach Sales: $$