The growth of eCommerce: does it impact brand strategy?


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The growth of eCommerce: does it impact brand strategy?

  1. 1. The growth of eCommerce: does it impact brand strategy?
  2. 2. <ul><li>INTRODUCTION </li></ul><ul><li>New interactions are changing everything </li></ul><ul><li>Small things and bigger things </li></ul><ul><li>Everyday life and eCommerce… </li></ul><ul><li>READY FOR A STORY OF INTERACTIONS? </li></ul>
  3. 3. <ul><li>Have you considered a product’s second life? </li></ul>
  4. 4. <ul><li>Ilegal distribution platforms are currently selling your products for a third of its original price </li></ul>
  5. 5. <ul><li>The typical housewife under 50 years old can now be reached at </li></ul>
  6. 6. <ul><li>Your sales pitch cannot beat your </li></ul><ul><li>consumer’s version </li></ul>
  7. 7. <ul><li>Your annual media investment will never have the reach that a parody of your ad on YouTube does </li></ul>
  8. 8. <ul><li>At any given moment, you can locate the nearest bar </li></ul>
  9. 9. <ul><li>The solution to your R&D dilemma was discovered by a 14 year old wannabe physicist </li></ul>
  10. 10. <ul><li>Each of these examples show us the true importance of </li></ul><ul><li>interactions </li></ul><ul><li>in our everyday lives </li></ul><ul><li>What if this is the key to your efficiency tomorrow? </li></ul>
  11. 11. <ul><li>That being said, let’s get back to our original question: </li></ul><ul><li>Does the growth of eCommerce modify the objectives that brands have originally set for their retail sites? </li></ul>
  12. 12. 1 eCommerce : The paradox of growth
  13. 13. A gloomy French economy? <ul><li>eCommerce has experienced a 26% growth in the first quarter of 2009 </li></ul><ul><li>Within just one year, the number of new website launches reached 12 000 </li></ul>* Source FEVAD
  14. 14. Is this a paradox with the USA ? <ul><li>In North America, the key players in eCommerce are shutting down their sites because they are not profitable enough </li></ul><ul><li>North American travelers are returning to their traditional travel agency, as their are no longer satisfied with the experience of e-travel sites </li></ul>
  15. 15. The boomerang effect of success <ul><li>This spring, the consumer satisfaction index for eCommerce decreased by 2% </li></ul><ul><li>What brands consider to be best practices in eCommerce are considered as convenient by consumers: an easy and comforting way to shop; detailed product fact sheets; fast and reliable delivery service; rich and exclusive content </li></ul>Source : Foresee Index
  16. 16. Conclusion <ul><li>Determining objectives based on the organic growth of the channel might be in conflict with a reality principle: this channel is constantly evolving, constant innovation is a reality, it is therefore necessary to continually increase investments in order to stay in tune with consumers’ expectations. </li></ul><ul><li>WITHOUT CONSTANT INVESTMENT, GROWTH IS ALMOST IMPOSSIBLE </li></ul>
  17. 17. 2 The Internet has changed behaviours and expectations
  18. 18. Nothing will ever be the same <ul><li>At the heart of search, at the heart of influence and increasingly so at the heart of purchases, the Internet is also changing consumer brand expectations and relationships </li></ul>
  19. 19. Internet, essential in the pre-buying process <ul><li>A study conducted by Looneo and Createst in September 2009, where 1000 internet users over 18 years old, representative of the French population, were polled, revealed the essential role of the Internet in the pre-buying process as well as the increase of social shopping, especially in the18-24 age group. Key figures: </li></ul><ul><li>79% of internet users DO research their purchasing online, whether the purchase in completed in store or online. </li></ul><ul><li>45% of internet users seek consumers reviews before buying. This percentage increases to 61% for executives, and 52% for the 18-24 age group. </li></ul><ul><li>Of the 46% of internet users who view comments, advice is the determining factor in the process of buying . This rate raises to 76% in the 18-24 age. </li></ul><ul><li>76% of internet users believe that when it comes to reviews, quality is more important than quantity. </li></ul><ul><li>The percentage of internet users seeking consumers advice is expected to rise from 45% to 66% in the next 6 months. </li></ul>
  20. 20. Community and Awareness: 2 fundamental levers in the decision-making process
  21. 21. The importance of searching for peer comments varies from sector to sector Source Etude Fleishmann-Hillard Harris Interactive 2008 sur l’influence d’internet
  23. 23. Every contact point is important Source Etude Fleishmann-Hillard Harris Interactive 2008 sur l’influence d’internet
  24. 24. Consumer « power » on brand perception has gained strength in the past 2 years <ul><li>More than 60% of internet users have posted a comment on a blog, in comparison with just 30% two years ago* </li></ul><ul><li>Approximately 80% of internet users have read a blog, in comparison with 50% two years ago.* </li></ul><ul><li>2/3 of young adults frequently share their point of view on products through social networks ** </li></ul><ul><li>*Source Universal McCann Social Media Tracker 2008 </li></ul><ul><li>**Source Forrester </li></ul>
  25. 25. Even luxury brands are investing in social networks <ul><li>On October 7th at 2:30pm, a live stream of the Catwalk during which Internet users were welcome to comment </li></ul><ul><li>600 000 fans on Facebook in July 2009 </li></ul><ul><li>40 000 members on Twitter@LouisVuitton_US </li></ul>
  26. 26. Conclusion <ul><li>The key to commerce on Internet are less and less on the brand’s e-commerce website. </li></ul><ul><li>TO IDENTIFY AND REACH YOUR ONLINE AND OFFLINE BUSINESS GOALS, YOU CAN NO LONGER IGNORE THE SOCIAL WEB </li></ul>
  27. 27. 3 Innovation and content quality quickly generate consumer expectations
  28. 28. Customization is no longer just for luxury brands
  29. 29. Those who have never touched a Wii cannot comprehend that it is not science fiction <ul><li>Interactive video and augmented reality, the new approaches to product presentation </li></ul>
  30. 30. Those who have never tweeted cannot understand the true value of good deals in real time <ul><li>Royal Carribean (US leader cruiseship) twitter page gives the current hot deals in real time </li></ul>
  31. 31. Half of US marketers for online retail sites plan to enhance the customer experience
  32. 32. Conclusion <ul><li>Monitoring, innovating and enriching user experience remain key actions to support decision-making processes. </li></ul><ul><li>TO ACHIEVE YOUR GROWTH OBJECTIVES, INVEST NOT ONLY IN CONTENT ENHANCEMENT: VIDEO, PICTURES, DETAILED DATA, BUT ALSO IN NEW TECHNOLOGIES . </li></ul>
  33. 33. 4 Client paths and the evolution of brand engagement are getting more and more complex
  34. 34. The Web allows the consumer to have a vision and understanding of the brand that may vary significantly from a marketer’s intention
  35. 37. Devising an ecommerce strategy must begin by taking an inventory and then understanding the interactive ecosystems, both online and offline, where the brand is currently evolving
  36. 38. The decision-making process is no longer linear <ul><li>Internet has modified the decision-making process to a point where it is no longer linear. The consideration phase is remains until the moment the transaction is actually completed. Internet users follow the steps, but can go return to a previous one: it is essential to be omnipresent in every step of the cycle. </li></ul>
  37. 39. On and off borders disappear <ul><li>Online and offline retail are getting increasingly close and more significantly connected with each other. Confusion between the 2 is more and more common </li></ul><ul><li>When using the Iphone application « Around Me » to find the nearest store where I can find my perfume. I go there and purchase the perfume. </li></ul><ul><li>Is that ecommerce? POLL QUESTION </li></ul>
  38. 40. Far from science fiction: its a reality <ul><li>Starbucks Iphone application : displays a scannable bar code on the cellphone screen, allowing it to be used to pay for purchases; to check card balances to transfer additional funds; even to create your own drink preferences </li></ul>
  39. 41. Product info, point of sale advertising (POS) and coupon access via mobile are part of the upcoming revolution. Is that ecommerce? POLL QUESTION
  40. 42. 6 Conclusion : Ecommerce strategy objectives go well beyond those of the online sale channel…
  41. 43. Online, shopping centers do not exist <ul><li>In traditional offline retail, stores are opened in high traffic zones or only sell exclusive products that justify the travel trip. </li></ul><ul><li>Online, you must provide the best service, the best information at the best time at the right place. </li></ul>
  42. 44. Where is my brand present? With what intensity? What are the paths that are leading to my fact sheet?
  43. 45. The goal of a brand’s ecommerce strategy is not only to sell more on its website but also to identify and better understand its role in the global path to conviction. <ul><li>Sell more globally, understand where the brand should be available, how (information, service sales), implement some indicators in order to understand the paths and the transformations, the impact of each link in the chain. </li></ul><ul><li>Unless selling the product exclusively, the brand’s ecommerce website must offer a differentiating and original user-experience, host events; it should be managed more as a media than a series of relevant functionnalities presented perfectly. </li></ul>
  44. 46. In this constantly evolving field, there is only one certainty: choose a well-considered and analytic approach and give yourself the opportunity to test and constantly challenge your ecosystem… Measure Analyze Test Change
  45. 47. <ul><li>THANKS </li></ul><ul><li>[email_address] </li></ul>
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