SINNERSCHRADER AT A GLANCE Top-10 digital agency in Europe (Forrester Digital Agency Review 2011) Strong focus on e-commerce – since 1996 400+ talented people: Consulting/Creation/Technology 25/25/50 Ofﬁces in Hamburg, Berlin, Hanover and Frankfurt Owner-managed, independent, publicly listed, growing fast & proﬁtable
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The German online buyerSuccessful e-commerce in GermanyMarket entry strategies
THE GERMAN ONLINE MARKET IS THELARGEST IN EUROPE - WITH RATHER LOWONLINE SPENDINGS PER CAPITA (6M)Source: DIBS E-Commerce Survey, 2010
GERMANS LIKE TO BUY ONLINE -BUT NOT FROM FOREIGNERS59% of individuals use e-commerce (16-74 years) Only 8% buy goods from foreignersSource: Eurostat, 2010
HEARSAY ABOUTTHE GERMAN ONLINE SHOPPER Always looking for a Very price sensitive %discount Complaining very often Causing high return ratesStrong in comparing prices Not too fashionable
THE REALITY: GERMAN ONLINE SHOPPERSSEEM TO BE ALWAYS LOOKING FOR THEBEST OFFER Keeping your online store highly accessible is a must!Source: Oracle European Consumer Views of E-Commerce, 2010
A GERMAN SPECIALTY: HIGH ACCEPTANCEOF INVOICE PAYMENT, ESPECIALLY INFASHION E-COMMERCE From our experience: Acceptance of invoice payment up to 85% of all orders in individual online stores!Source: DIBS E-Commerce Survey, 2010
THE BIG QUESTION: TAKE A CENTRALIZEDOR A LOCAL APPROACH? Planning your entry to the German e-commmerce market Sales potential low / Sales potential high uncertain Focus on a centralized approach Be courageous and go for the local keeping extra costs low! approach, you will be rewarded! As stated above, the German online market is one of the largest in Europe. That‘s why you think twice about being courageous.
COPING WITH THE CHALLENGES LOOKINGAT YOUR E-COMMERCE SETUP A global e-com platform Marketing is a good starting point! (adserving, retargeting, search) Content Frontend (E-Shop) CRM / Community (product data, fotos, cms) (customers, segments, social) Warehousing Backend Customer Service (inventory, shipments, returns) (inbound, outbound) Financials (PSP integr., bank, accounting)
LOCALIZING EVERY COMPONENT OF YOUR E-COMMERCE INGREDIENTS Efﬁciency: Finding the right marketing mix The basics: Localized Engagement: Talk the Marketing content is a must (adserving, retargeting, search) language of your customers Content Frontend (E-Shop) CRM / Community (product data, fotos, cms) (customers, segments, social) Warehousing Backend Customer Service (inventory, shipments, returns) (inbound, outbound)Speed: Consider using a Financials (PSP integr., bank, accounting) Credibility: Use nativelocal distribution centre speakers to represent your brand Convenience: Adapt to local payment methods
SUMMARY: A STEP-BY-STEP GUIDETO ENTER THE GERMAN ONLINE MARKET 1. Screen your market potential and your competitors in the German market, make sure to be very clear on your regional USPs. 2. Build a separate business plan for your market entry strategy taking into account all regional characteristics (such as tax and return rates). 3. Find local e-commerce specialists to localize your content, your marketing strategy and your e-commerce processes (like payment).4. Set up the German roll-out as a separate project on your global e-com platform, beware of interference with other projects on your e-com roadmap. 5. Launch courageously and keep close track on your local KPIs, focus on payment and returns.