Amblique / Demandware Global eCommerce Expansion Workshop

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  • 1. © 2014. All rights reserved. June 2014 Global Commerce Executive Workshop
  • 2. © 2014. All rights reserved. Your MC Paul Greenberg Chairman NORA paul@nora.org.au @PaulsChrips
  • 3. © 2014. All rights reserved. Goals for the Day  Learn: Hear from our experiences and retailer case studies from Deckers, Michael Hill, Cotton On & APG  Engage: Network with other executives and thought leaders in the digital commerce space  Collaborate: Participate in interactive roundtables with your peers on global expansion  Takeaway: Receive best practice guidance from our global commerce experts on how to expand your digital commerce footprint across new geographies #globalexecworkshop
  • 4. © 2014. All rights reserved. Retail Speakers James Johnson Digital Group Manager Michael Hill International David Williams Head of Online, EMEA Deckers Outdoor Corporation Paul Kennedy CIO Apparel Group (prev. John Lewis) Cameron Jackson Group Digital Services Manager Cotton On Group
  • 5. © 2014. All rights reserved.© 2014. All rights reserved.5
  • 6. © 2014. All rights reserved. Agenda #globalexecworkshop Time Topic Presenter 1:00-1:05 Welcome Paul Greenberg 1:05-1:30 The New Global Reality Justus Wilde, Amblique Gary Lombardo, Demandware 1:30-2:00 Beyond Australia: Michael Hill’s Global Evolution James Johnson, Michael Hill 2:00-2:30 Decker’s Global Expansion in Europe and Beyond David Williams, Decker’s 2:30-2:45 Break 2:45-3:15 Cotton On Cameron Jackson, Cotton On 3:15-3:45 Apparel Group Paul Kennedy, Apparel Group 3:45-4:45 Best Practices Roundtable 4:45-5:15 Roundtable Readouts Paul Greenberg 5:15-5:30 Conclusion & Wrap Up Justus Wilde, Amblique 5:30-7:00 Networking Drinks
  • 7. © 2014. All rights reserved. Housekeeping  In your handouts: • Global Commerce Workbook • Global Commerce Checklist • Global Expansion Whitepaper • Evaluation Form  Restrooms are in the reception room to the left  #globalexecworkshop for questions #globalexecworkshop
  • 8. © 2014. All rights reserved. Housekeeping  WIFI Details Network Name: QT Events Password: Meetat001 #globalexecworkshop
  • 9. © 2014. All rights reserved. Justus Wilde Gary Lombardo The New Global Commerce Reality
  • 10. © 2014. All rights reserved. Introductions Justus Wilde Founder & Principal Strategist Amblique jw@amblique.com @JustusWilde Gary Lombardo Director, Solutions Marketing Demandware glombardo@demandware.com @garylombardo #globalexecworkshop
  • 11. © 2014. All rights reserved.11
  • 12. © 2014. All rights reserved. A 800+ Live Sites Globally
  • 13. © 2014. All rights reserved. Global Footprint – 44 Countries
  • 14. © 2014. All rights reserved.© 2014. All rights reserved. 1 Brand 22 Sites 21 Countries 4 Brands 44 Sites 15 Countries 3 Brands 43 Sites 26 Countries 1 Brand 9 Sites 9 Countries 1 Brand 4 Sites 4 Countries 4 Brands 10 Sites 10 Countries 1 Brand 3 Sites 3 Brands 3 Brands 14 Sites 10 Countries 6 Brands 15 Sites 6 Countries 1 Brand 13 Sites 13 Countries 2 Brands 2 Sites 1 Countries 1 Brand 4 Sites 4 Countries
  • 15. © 2014. All rights reserved.  Est. 1999 – 60+ team  Digital commerce consultancy – SELL MORE  Strategy, Technology & Trade Optimisation  Demandware top tier partner & reseller  Part of STW Group (ASX: SGN)
  • 16. © 2014. All rights reserved.16 $XXm $XXXm + brands/cats + omni-channel + geographies
  • 17. © 2014. All rights reserved.© 2014. All rights reserved. Online % of Total Retail Spend 17 UK USA Germany Europe (average) Australia 13.50% 11.60% 9.70% 7.20% 6.50% Source: http://www.retailresearch.org/onlineretailing.php + NAB online retail index
  • 18. © 2014. All rights reserved.© 2014. All rights reserved. Australian Online Retail Growth Slowing 18 15% 12% 39% Mar 2011 Mar 2012 Mar 2013 Mar 2014 Online Sales Index 26%
  • 19. © 2014. All rights reserved.© 2014. All rights reserved. The Global Picture ($bn) 2013 2014 2015 2016 2017 Asia Pacific $384 $525 37% $681 30% $856 26% $1,053 23% North America $431 $483 12% $538 12% $598 8% $660 10% West Europe $312 $347 11% $383 10% $414 8% $445 7% Central & East Europe $50 $58 17% $64 11% $69 7% $73 6% Latin America $48 $58 20% $65 12% $71 9% $75 6% Middle East & Africa $27 $34 25% $40 17% $46 15% $51 13% Worldwide $1,251 $1,504 20% $1,771 18% $2,053 16% $2,357 15% Source: eMarketer.com
  • 20. © 2014. All rights reserved.© 2014. All rights reserved. Our Neighborhood Source: eMarketer, Accenture Research Country Internet Users Internet penetration Size of online retail market (in$ '13) China 570m 42% 219 billion Japan 101m 79% 72 billion South Korea 42m 84% 42 billion India 152m 13% 28 billion Australia 19m 83% 22 billion Taiwan 17m 76% 9 billion New Zealand 3.8m 89% 2.5 billion Hong Kong 5.2m 73% ~2 billion Singapore 3.9m 76% ~2 billion Malaysia 19m 66% ~2 billion Thailand 18m 28% ~2 billion Indonesia 39m 29% ~2 billion
  • 21. © 2014. All rights reserved.© 2014. All rights reserved.21 $16b $5b Australian Cross-border eCommerce Sales by 2018 Source: PayPal Modern Spice Routes Report
  • 22. © 2014. All rights reserved.© 2014. All rights reserved.Source: PayPal Modern Spice Routes Report
  • 23. © 2014. All rights reserved. North America Trends • Single English site focused on US still dominates • Canada-specific site becoming more common; cross-border shopping to US still common • Large volume, hyper- competitiveness of US market requires careful planning • Multiple fulfillment locations essential • State-specific taxes and shipping costs are a challenge • Strong mobile and omni- channel shopping behaviours Country Size of online retail market ($ '13) Online Commerce Market Readiness Notes United States $263 billion Mature Expected to remain largest D2C market in the world Canada $18.9 billion Ascending Online sales growth finally eclipsing store growth Source: Forrester, “Canadian Online Retail Forecast 2013 to 2018”, July, 2013 and Forrester, US eCommerce Forecast: 2013 to 2018”, May 2014
  • 24. © 2014. All rights reserved. North America. US launch, worldwide success 1 brand, 13 sites, 13 countries • Sought to re-launch online business with single, cloud-based platform for rapid rollout • Launched 5 sites within 9 weeks, starting with the US site, and 12 more quickly followed within 2 more months • US business starting point for rest of world • Small team managed US launch • Manage US fulfillment and customer service in-house • In one year (Dec 2012 to Dec 2012) since re-launch: 90% revenue growth, 42% increased conversion rate, 22% increase in AOV and 33% more traffic
  • 25. © 2014. All rights reserved. Europe Country Size of online retail market ($ '13) Online Commerce Market Readiness Notes UK $123 billion Mature Expected to remain largest online market in EU; avid online buyers; differentiated services key France $32 billion Mature Among highest average online spend in Europe; differentiated services key Germany $46 billion Mature Most online consumers in EU; great opportunity for growth Italy $19 billion Ascending Lowest penetration of online spending, but high growth opportunity Spain $20 billion Ascending Fastest growth of online buyers Nordic states ~$38 billion* Mature Diverse region, affluent shoppers; differentiated services key Russia ~$14 billion* Ascending Complex environment; ecosystem mainly Russian companies; fulfillment & localization major challenges Turkey ~$7 billion** Ascending Large, growing online population; infrastructure challenges Trends • Cross-border shopping commonplace • Single EU site common entry strategy • Localized country-specific sites important over time • Northern Europe highly mature; services needed to differentiate • Southern Europe less mature; foundational offering will suffice • High interest in Russia and Turkey • Eastern Europe still lagging in interest • Strong mobile and omni-channel shopping behaviours • Regional fulfillment model preferred (except Russia) Sources: Forrester, “European Online Retail Forescast, 2010-2015”, Feb 2011 and “Trends in Russia’s eCommerce Market”, December 2013 eMarketer, “Ecommerce Sales Topped $1 Trillion for the First Time in 2012”, February 2012 *reflects 2012 market size; Source: Ecommerce Europe, “European B2C Ecommerce Report,” 2013 **reflects 2012 market size: Source: Source: Ecommerce Europe, “Southern European B2C Ecommerce Report,” 2013
  • 26. © 2014. All rights reserved. Europe. Real results, real fast. 7 countries, 4 languages, 4 currencies • Transformed business from catalogue to digital through global growth, led by expansion across Europe • Launched 7 sites worldwide, including 4 new country sites in just 6 months in Europe • Balances central brand control with local team autonomy • Marketing & merchandising tailored to the nuances of each European country • On-the-ground operations optimized for efficiency across Europe while retaining nimbleness to fulfill local consumer expectations
  • 27. © 2014. All rights reserved. Russia  Online buying low, but growing  D2C most common way to buy online; Ozon marketplace largest player, but limited categories  D2C challenges: fulfillment, localization (payment, search, social, etc.) Sources: Forrester, “Trends in Russia’s eCommerce Market”, December 2013
  • 28. © 2014. All rights reserved. Russia, Europe and beyond. New markets, new opportunities. 3 brands, 43 sites, 26 countries • Launched 27 sites in 2012, including 12 sites in just over a year in Europe (including Russia) • Flexible technology backbone allowed for simple management and fast rollout of localized, relevant experiences • Russia a key market: site implemented in 4 months and served as foundation for other global rollouts • Pre-integrations to payment gateways (i.e. Chronopay in Russia), tax processing and fraud management • On-the-ground operations in Russia with local 3PL (KupiVip)
  • 29. © 2014. All rights reserved. Asia-Pacific Country Size of online retail market ($ '13) Online Commerce Market Readiness Notes China $219 billion Ascending Huge online market, but marketplace-dominated; complex environment; ecosystem mainly Chinese companies; infrastructure & localization major challenges Japan $72 billion Mature Huge D2C market, large economic wealth, engaged online population South Korea $42 billion Mature Large D2C market, strong aptitude and access to technology India $28 billion Nascent Online buying less common, but growing; restrictions on foreign investment Taiwan $9 billion Mature Online buying common, engaged online population Hong Kong ~$2 billion Ascending Smaller D2C market, buy-online, pick-up in-store popular for Mainland consumers Singapore ~$2 billion Mature Sophisticated consumers; serves as gateway to Southeast Asia Malaysia ~$2 billion Ascending Emerging market; affluent consumers Thailand ~$2 billion Nascent Indonesia ~$2 billion Nascent Trends • “APAC first, China first” • Marketplaces continue to dominate • Partnerships essential when entering the market • Country-specific strategies (including sites) essential • Localisation is critical • Strong mobile and omni- channel shopping behaviours • Regional fulfillment model preferred, but trending toward country-specific • eCommerce talent difficult to find Source: eMarketer, Accenture Research
  • 30. © 2014. All rights reserved. China  C2C still dominates China (Taobao), but B2C is growing  B2C growing, dominated by Tmall, but D2C growing in importance  D2C challenges: Great Firewall of China, localization localization (payment, search, social, etc.), fulfillment
  • 31. © 2014. All rights reserved. • Launched direct-to- consumer online business in China in less than 6 months • Established direct brand control independent of predominant marketplace model (Taobao) • Support local payment methods (Alipay, COD) and integrations with Chinese social networks (Weibo, RenRen) • Optimized site speed and performance overcoming Great Firewall of China • Established on-the-ground operations to execute as a local brand
  • 32. © 2014. All rights reserved. Retailers Face Key Challenges to Expand Globally Operations / Organization Streamlining Expansion through Optimal Ops & Org Strategy Accelerating Time to Market as a Local Brand Technology / Regulatory Leveraging Commerce Technologies and Covering Regulatory Merchandising / Marketing Creating Demand for the Best Product Assortment #globalexecworkshop
  • 33. © 2014. All rights reserved. IT’S USUALLY AN INCREMENTAL APPROACH Trial expansion • List products on local market places • Geo target experience on home site • Ship from home market • Low volume & investment Basic Local Site • Launch basic version of site locally • Engage in low risk/rev share & retention marketing • Local content • Focus on service and reputation building Full Local Site • Provide full site functionality • Aggressively acquire customers via riskier marketing • 100% LOCAL experience: > Language > Payment > Shipping > Cust. Service
  • 34. © 2014. All rights reserved. • Determine fulfillment model • Integrate customer service • Implement a marketing strategy • Determine merchandising mix • Consider localisation • Determine organisational design The Global Commerce Framework Define a Strategy Establish Operations Create a Technology Footprint • Outline the business case • Create a geographic roadmap • Establish channel options • Determine fulfillment model • Integrate customer service • Implement a marketing strategy • Determine merchandising mix • Consider localisation • Determine organisational design • Determine delivery model • Optimise site performance • Establish platform global capabilities • Integrate payment management
  • 35. © 2014. All rights reserved.35 Thanks - Any Questions?
  • 36. OV E RV I E W  About Michael Hill  The Michael Hill Online Journey  Key Features  Global Model  Global Challenges
  • 37. A B O U T M I C H A E L H I L L
  • 38. M I C H A E L H I L L O N L I N E  4 responsive sites & blogs – AU, NZ, CA & US  4,000 products  200 pages of new content created  Ability for customers to share their love stories  Personalised charm builder  Shoppable video  An online experience to rival the in-store experience
  • 39. B E ST O F B R E E D S O LU T I O N S Catalogues Payment Ratings/Reviews Video BI & Analytics OMS J A S P E R ERP
  • 40. K E Y F EAT U R E S
  • 41. D E V I C E AG N O ST I C
  • 42. S H O P PA B L E V I D E O S
  • 43. S H O P P E R J O U R N E Y
  • 44. S H O P P E R J O U R N E Y
  • 45. G LO BA L C H A L L E N G E S
  • 46. LO C A L C U STO M E RS = LO C A L S O LU T I O N S Localised product preferences
  • 47. LO C A L C U STO M E RS = LO C A L S O LU T I O N S Localised product preferences Content differences Different shopping habits and device usage Different customer segment targets
  • 48. G LO BA L I SAT I O N C H A L L E N G E S Global vs local social profiles Transactional needs - currency, fraud risk profile Domain migration – global to local Store footprint drives online activity
  • 49. G LO BA L I SAT I O N C H A L L E N G E S Hygiene factors Promotional planning and timing Compliance & policies
  • 50. G LO BA L 1 4 E X P E R I E N C E M I C H A E L H I L L YO U RS E L F R E C E I V E 2 0 % O F F F U L L P R I C E D I T E M S E X C L U D I N G C O L L E C T I O N S
  • 51. How Deckers internationalised its ecommerce business David Williams
  • 52. Brief overview of Deckers
  • 53. Current ecommerce website portfolio 10 6 9
  • 54. Ecommerce - 5-year growth $m 2010 2011 2012 2013 2014* AMERICAS 87 98 112 136 170 EUROPE 1 8 17 25 35 APAC 0 1 2 8 17 WW Total 88 106 131 170 222
  • 55. How did we get there?
  • 56. We initially shipped globally from its US website – successful, to a point
  • 57. But ‘pimping up’ our existing website and infrastructure only got so far….
  • 58. An initial attempt from the US to launch into Europe failed….
  • 59. In order to expand there was need to create regional presence
  • 60. Most ebusiness operations spend nearly 80% of resources—people, budget and time—simply maintaining site functionality. — Gartner Research “ Staying Ahead of the Competition Network & Data License & Maintenance Operational Services Hardware & OS Platform Security80% Future eBusiness Effort Allocation “Hassle Free” eBusiness Platform Launching International Presence Integrating Cross Channel Experiences Merchandising the Right Products to the Right People Innovation Through Coalition With Technology Partnerships Language and cultural variations Staying Ahead of the competition 20% Legacy The legacy platform and infrastructure was not efficient for global growth
  • 61. …. A different road map was needed
  • 62. Getting buy in for change
  • 63. Getting buy in from the board was essential Longer term vision of consumer centric organisation Commitment to regional investment to grow outside North America Change management - infrastructure, process and people Explaining how ecommerce business would complement existing wholesale distribution was key
  • 64. 2014 retail online wholesale distribution Deckers roadmap to change the shape of the business 2020 retail online wholesale distribution
  • 65. Choosing a scaleable international web platform was key Longer term vision of consumer centric organisation Commitment to regional investment to grow outside NA Executive leadership needed to embrace new channels Change management - infrastructure, process and people
  • 66. Understanding that regional and local presences were needed
  • 67. Economy of scale is important
  • 68. Building a regional presence
  • 69. Some key questions asked around regional expansion • Centralise or decentralise the business? • Existing distribution – where to deal with channel conflict first? • Customer services – where? • Agency or inhouse? • Online marketing and merchandising? • What support is still needed from global? • Languages and payments? • Web platform – how do you structure it? • What would be the lead markets? • How would we grow in less mature markets?
  • 70. ….. The initial building blocks we used to start out the EMEA business What regional infrastructure do we need to service the consumer? What do we offer the consumer? How do we reach and sell to the consumer?
  • 71. …. This is how Deckers EMEA broke it down eCHANNEL OPTIMISATION How do we reach and sell to the consumer? Ecommerce team FRONT OFFICE - Merchandising - Online Mktg - Production BACK OFFICE - Order processing - PMO - IT Developers - Demand Planning - Translations - Customer Service Shared Service/ Assets -Operations - Warehouse - Buying - IT support - Finance - Brand Marketing Relationships - Global brand - Global Ecomm - Wholesale subsidiaries - Retail Operations - Brand marketing - Display - PR - Content - Retail - Social Media Brand Marketing - SAAS Web Platform - Middleware integrations - Enterprise System - Oracle - Mobile and tablet development - Retail integration - third party integrations - Regional and local specific integrations Website and Systems -Natural Search, - Paid Search - Affiliates - Email - Behavioural Targeting - Display - Social -CSE Direct Marketing channels Data - CRM - Market Research - Competitor Landscape -- Web Data Analysis -- Internet stats and reference INFRA- STRUCTURE How do we reach and sell to the consumer?
  • 72. …. This is how Deckers EMEA broke it down CUSTOMER VALUE PROPOSITION What do we offer the consumer? -Local product, currency, pricing, merchandising, content and language - 100% of payment options - 24 hour and expedited delivery options in country - Retail Integration - Local customer services - Multiplatform websites LOCAL REGIONAL - Regional product, currency, pricing, merchandising, content and language - SEPA payment options - Express delivery options international -English language customer services - Multiplatform websites
  • 73. Global/head office • Oracle EBS • Middleware integrations • Key IT development resource • Brand strategy Regional •Customer service • ecommerce Operations • 3PL warehouse and distribution • Financial support • Payment management •Fraud management Local • Online marketing agencies • Brand marketing agencies • Subsidiary office relationships and support • Merchandise and marketing planning 2013… how the infrastructure was split between global, regional, and local
  • 74. • Local website • Local product selection and merchandising • Local content and online marketing • Free Expedited delivery (free, 24 hr) and returns • Local currency • Local language • Local language customer service • 98% payment type coverage • Retail integration (if applic) In ‘lead’ markets we developed a local value proposition
  • 75. • Regional EU “Export” website • One product selection, regional merchandising • Regional content and marketing • Standard delivery options (3-10 days) • Outside EU, customer pays • Standard Euro pricing • English language initially • 80% payment type coverage • Standard returns/exchange process And also a regional proposition, leveraging the EU market
  • 76. • Globally built core code cartridge for all sites, by brand • A core EU checkout process with local variants was created • Built a flexible middleware between ERP and web platform • Optimised the CDN to improve performance • Utilised the partner resources to simplify integrations • Strong translation partner essential • Recruited to support front end development in region • Ability to market and merchandise at a local level was key The website platform was structured to support the business
  • 77. …. How UGG Australia localises…
  • 78. Moving forward
  • 79. Three key focuses - Enhance existing consumer omni-channel proposition - Utilise CRM and Big Data to drive new and existing customer base - Develop new markets
  • 80. …. Continuing to enhance existing proposition Regional website Evolution of the Deckers Customer Proposition HIGH LOW Complexity Multi-channel Cross-channel Omni-channel ???? Regional offering Responsive website design Local marketing and merchandised experience Responsive website design Selling at both retail and online, Mobile optimised. experience Click and Collect – warehouse to store Endless Aisle – use website in store Retail system and operational integration Delivery from store Single customer view (CRM) Contextual experience Local website The unexpected
  • 81. …. How this may evolve by brand Regional website Evolution of the Deckers Customer Proposition HIGH LOW Complexity Multi-channel Cross-channel Omni-channel ???? Regional offering Responsive website design Local marketing and merchandised experience Responsive website design Selling at both retail and online, Mobile optimised. experience Click and Collect – warehouse to store Endless Aisle – use website in store Retail system and operational integration Delivery from store Single customer view Contextual experience Local website The unexpected
  • 82. …. We’ve developed a Go To Market / Proposition model ROI Existing Distribution, especially online Ecommerce Adoption and culture Brand Awareness and Consumer Insight Operational and IT Infrastructure Product and Merchandising Marketing
  • 83. Go to Market – Germany example for UGG Australia ROI Existing Distribution Internet adoption and culture Brand Awareness and Consumer Insight Operational Infrastructure Product and Merchandising Marketing Utilise local marketing agency resource Afffilates – local SEM – centralised PR agency – local Brand marketing – in market, work with existing Second most mature market Mobile usage increasing Click and Collect new to market Invoicing still important Very cogniscent around data and website security 15% of sales currently through online – Zalando 8% of retailer sales online currently – Goertz Limited distribution through high end Utilise existing UK 3PL Returns via BLX 3PL DPD as courier – look at possible options around Hermes German language customer service higher RRP in all categories Fashion boots growing category High adoption of winter product Limited brand awareness in market 22% Experian high spend
  • 84. Some quick points on Deckers experience in APAC region • Slightly less mature as a region at ecommerce level • More difficult to scale at a regional level – language, culture, boundaries • ANZAC – seasonal difference, distance, website maturity • Content delivery network important consideration for China • Pricing in China remains a problem • More consideration of third parties to manage (Singpost etc) • More fragmented currently than Europe – outsourced partner in Japan, outsourced solution in China • No wholesale, only retail in China offers huge omnichannel opportunities • Still huge growth opportunities – key area of focus for company
  • 85. Some final thoughts • Hire someone within a region to drive the business • Accept that there are regional and local cultural differences • Start where the volume is – one lead market and regional • Choose a scaleable web platform • Leverage existing distribution opportunities if you can • If you can’t, get a partner – there are high expectations around delivery in EMEA • Don’t be afraid to outsource if you have to • Inhouse or outsourced, make sure you are covering all foundational bases • Still lots of opportunities out there
  • 86. THANK YOU
  • 87. © 2014. All rights reserved. Break
  • 88. © 2014. All rights reserved. 13 June 2014 Paul Kennedy, CIO – Apparel Group http://au.linkedin.com/in/paulkennedy6 International Expansion: Lessons Learned
  • 89. © 2014. All rights reserved. Experience  sportscraft.com.au  saba.com.au  jag.com.au  johnlewis.com  wexphotographic.co.uk & wexcameras.de  figleaves.com *Opinions are mine, not current or past employers*
  • 90. © 2014. All rights reserved. http://www.powerretail.com.au/multichannel/john-lewis-1bn-online-sales-milestone-ahead-schedule/ £1 Billion Online ~30% of business Successful Omnichannel Retailer Largest employee-owned business in UK
  • 91. © 2014. All rights reserved. Paul Kennedy Trusted International
  • 92. © 2014. All rights reserved.98 ? Have you purchased from johnlewis.com? Local brand building & marketing is critical
  • 93. © 2014. All rights reserved. http://www.factmonster.com/states.html, http://mappictures.blogspot.com.au/2012/06/europe-map.html Not all people are the same
  • 94. © 2014. All rights reserved. Who are your potential customers?  “USA” vs California/New York/Florida  “Europe” vs France/Germany/Greece/Spain  Different demographics  Local languages (even US vs English)  Local competitors  Freight & local delivery  Different tax laws (even VAT within EU)
  • 95. © 2014. All rights reserved. Local Currency Translated by native language speakers Competitive local pricing What made the biggest difference?
  • 96. © 2014. All rights reserved. Local Payment Methods Paul Kennedy At this time ~25% of German customers used credit cards
  • 97. © 2014. All rights reserved. Local Distribution before proving market
  • 98. © 2014. All rights reserved. Local Distribution before proving market Imagine we achieve the same market share as at home? Establishing local distribution centres is expensive  Cost of DC/staff  Purchasing & allocating stock  Moving stock between markets – freight, duty, handling Have you proven demand, built a brand before investing capital?
  • 99. © 2014. All rights reserved. Send in the experts Paul Kennedy Tempting to send your A team to open a new market Lack of market knowledge & instinct can be fatal Image: http://www.lifehack.org/articles/lifestyle/how-to-be-an-expert-and-find-one-if-youre-not.html
  • 100. © 2014. All rights reserved. Image: http://up-ship.com/blog/?p=20903 Regional agreements restrict product sales Sign up your major suppliers before you start selling
  • 101. © 2014. All rights reserved. Other common pitfalls 107 Expect rapid growth: New markets are hard, so set conservative estimates and build capacity behind sales Use automated/low cost translation services: Make sure translators understand your product and have excellent language skills Set prices based on home country competitors/margins: Ensure you know your local competitors and price accordingly
  • 102. © 2014. All rights reserved. Other common pitfalls 108 Fail to address local returns & customer service regulations and expectations: Get legal & locally experienced advice on your obligations under consumer law Attempt to skirt import/duty restrictions (eg Canada to US, Channel Islands to UK): Ensure you understand the limits by shipment/total value and factor in risk of regulation changes
  • 103. © 2014. All rights reserved. Questions? Paul Kennedy
  • 104. © 2014. All rights reserved. Best Practice Roundtables
  • 105. © 2014. All rights reserved. Roundtables Guidelines • You were assigned to 1 of 4 roundtable topics • Facilitator will lead the discussion and Scribe will take notes on the flip chart • A Presenter will be chosen among the participants • We will have 60 minutes total: – Introduction (5 mins): Review purpose and approach – Discussion (45 mins): Facilitated discussion on core topics – Recap (10 mins): Reinforce and select main points for readout • Use your handout to take notes • Learn, Engage, Collaborate, Takeaway! #globalexecworkshop
  • 106. © 2014. All rights reserved. Roundtables 1 & 2 Global Commerce Strategy 3 Operations & Organizational Structure 4 Technology Considerations & Regulatory Issues Facilitators: David Williams Justus Wilde Jason Byrne Paul Kennedy Gary Lombardo Paul Greenberg 5 Merchandising & Marketing Best Practices Facilitators: Lisa Powell Marc Gagne Kate Maszluch Facilitators: Cameron Jackson Andrew Roberston Shirley Greathead Facilitators: James Johnson Bryan Surles Steph Byrne #globalexecworkshop
  • 107. © 2014. All rights reserved.© 2014. All rights reserved. STRATGY Group 1 Facilitators: David Williams Justus Wilde Jason Byrne Attendees: Sarah Hayden Michael Gordon David Kesby Tora Brophy Cameron Parker Paula Mictchell Mark Ronan Phil Ryan Sean Ashby Maina Cisse Sam Guarreras Mat Bolton OPERATIONS Facilitators: Lisa Powell Marc Gagne Kate Maszluch Attendees: Murray Finlayson Joel Drexler Michelle Joh Michael Bark John Maddison Jade Ku-Chih Alice Clearly Charles Moore Nathan Bush Anna Lee Misa Han Jess Richmond TECHNOLOGY Facilitators: Cameron Jackson Andrew Roberston Shirley Greathead Attendees: Clive Nichols Louise Raper Lee Munro Gillian Mason MERCHANDISING Facilitators: James Johnson Bryan Surles Steph Byrne Attendees: Beth Glancey Karleitia Bodlovic Carla Bridge Chris Jowsey Nick Delija Anna-Marie Wade Lauren Madsen Bruce Read Roland Ebbing Nick Clarkin Netta Kellet Duncan Brett Luke Wilson STRATGY Group 2 Facilitators: Paul Kennedy Gary Lombardo Paul Greenberg Attendees: Lisa Ebbing Utadi Murphy David Bickett Patricia Pilz Nicole McCann Jayson Fox Shane Lenton David Porter Jane Cay Safak Kaya Julie Stevanja Suzanne Calla
  • 108. © 2014. All rights reserved. Wrap Up
  • 109. © 2014. All rights reserved. Key Takeaways  Have a defined approach for expanding globally • Global Commerce Strategy • Operational and Organizational Structure • Technology Considerations & Regulatory Issues • Merchandising & Marketing Best Practices  Leverage others who’ve done it before and providers that have proven international capabilities – not just tactics but know-how  Continually optimize operations & plan for future global growth opportunities #globalexecworkshop
  • 110. © 2014. All rights reserved. Next Steps  Please fill out the evaluation form  Executive Summary of workshop will be emailed to you  Complete the Global Commerce Readiness Checklist -> Contact Demandware or Amblique to discuss results and next steps  Share Best Practices Checklists with your teams  Visit www.demandware.com and www.amblique.com #globalexecworkshop
  • 111. © 2014. All rights reserved. The Local Team #globalexecworkshop Justus Wilde Founder & Principal Strategist Amblique jw@amblique.com @JustusWilde Marc Gagne VP Asia Pacific Demandware mgagne@demandware.com