E-commerce Forum 2015: Christopher Ward Case Study

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Chris Ward: Christopher Ward Case Study

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E-commerce Forum 2015: Christopher Ward Case Study

  1. 1. Timeline • Initial idea formulated in 2004
  2. 2. Watches Ornament Leather Jewellery Garden Medicare Household Gadget
  3. 3. 0 10 20 30 40 50 60 70 Ad occurences Watches Ornament Leather Jewellery Garden Medicare Household Gadget Series1
  4. 4. This report is supplied in accordance with Mintel's terms & conditions. © Mintel International Group Limited Jewellery and Watches Retailing - UK - October 2003 Executive Summary High levels of consumer confidence driving growth The jewellery and watches market has benefited from high levels of consumer confidence, more innovative designs and the trend towards more branded jewellery. Total consumer spending on jewellery and watches grew strongly between 1998 and 2002, increasing by 28% to a value of £3.2 billion. At constant 1998 prices, sales increased by 18%. Precious jewellery is the dominant segment The largest market segment is precious jewellery, which includes gold, silver and other precious metals. It also includes diamonds, which have been a very buoyant sector of the market in recent years. Spend on precious metal jewellery rose by 17% between 2000 and 2002 to reach nearly £2.2 billion. Watches also had a buoyant time, with a rise of 7.1% in consumer spending. The costume jewellery market increased by 12.3% to reach £365 million.
  5. 5. Mintel Key points SWOT watches = quartz digital, quartz analogue, mechanical MARKET 40% internet usage at home amongst adults and growing SO 45% Digital/cable SO 68% on mobile phone NA Acorn - expanding, aspiring = jewellry = 22%=main O trend toward branded Jewellery SO Growth market @ £3.2bn SO Core market is actually ,people like us at the ABC1 end S Working women - growth area O Traditional watches/jewellery in decline O Jewellery is more for today than for longevity O Regular change is more O watch replacement can be encouraged O Argos especially important C1C2 D T 45yrs plus like specialist TW index/argos/qvc=high level trust/no need to touch SO co-ordination more to the fore O Asda / walmart threat? T department stores maybe good benchmark NA Good retail design important - away from traditionalist SO Polariasation to two sectors 15-24 & 45+ O Distribution channels will expand O future is bright S mkt growing @5% in real terms over 10 years S Design led can demand a slight premium O
  6. 6. Timeline • Initial idea formulated in 2004 • Simple aim – to bring high quality luxury watches within the reach of most people • Or.. To Make the Cheapest Most Expensive Watches in the World – Using Swiss movements – Assembled in Asia – Appropriate Business Model
  7. 7. Business Model Cases £30 Mvt. £50 Other £20 Total £100
  8. 8. Business Model Cases £30 Mvt. £50 Other £20 Total £100 x2.5 to x3.0
  9. 9. Business Model Cases £30 Mvt. £50 Other £20 Total £100 x2.5 to x3.0 £250 to £300 £275
  10. 10. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Swiss Brands ‘R’ Us
  11. 11. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Agents £9 Swiss Brands ‘R’ Us
  12. 12. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Agents £9 Brand Hype £18 Swiss Brands ‘R’ Us
  13. 13. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Agents £9 Brand Hype £18 Brand % £50 Swiss Brands ‘R’ Us
  14. 14. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Agents £9 Brand Hype £18 Brand% £50 Distributor % £68 Swiss Brands ‘R’ Us
  15. 15. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Agents £9 Brand Hype £18 Brand% £50 Distributor % £68 Total £235 Swiss Brands ‘R’ Us
  16. 16. Business Model Cases £27 Mvt. £45 Other £18 Total £90 Agents £9 Brand Hype £18 Brand% £50 Distributor % £68 Total £235 Retailer @x4 £940 Swiss Brands ‘R’ Us
  17. 17. Business Model £940Swiss Brands ‘R’ Us £275
  18. 18. Timeline • Initial idea formulated in 2004 • 12 months development to 1st watch
  19. 19. Timeline • Initial idea formulated in 2004 • 12 months development to 1st watch • Advertised - sold first watch off the page 2005
  20. 20. Timeline • Initial idea formulated in 2004 • Sold first watch off the page & PPC in 2005 – Supported by a simple transactional website – Call centre
  21. 21. Timeline - 2005 • Soon became clear that 1 product in 1 Advertising Channel was going to be hard work
  22. 22. Timeline - 2005 • Soon became clear that 1 product in 1 Advertising Channel was going to be hard work • Expanded the range • Developed the website a little
  23. 23. Timeline - 2005 • Soon became clear that 1 product in 1 Advertising Channel was going to be hard work • Expanded the range • Developed the website a little • Entered the world of PPC in 2006 – with an outside agency
  24. 24. Timeline - 2006 • Conventional wisdom said “the Holy Grail was at the end of a ‘long tail’ of keywords” • Conventional Wisdom lied…. • ROI severely dented through wasted effort on non-converting terms
  25. 25. Timeline - 2006 • Inadvertently entered the Social Networking world • Independent Forum created dedicated to CW • Still independent • 3000+ members • 100000 posts • 7000 topics
  26. 26. Sales Growth 0 20 40 60 80 100 120 140 160 180 2005 2006 2007 2008 2009 2010 2011 7+69%
  27. 27. Timeline • Initial idea formulated in 2004 • Sold first watch Off The Page & PPC in 2005 • Social Networking in 2006
  28. 28. Timeline - 2007 • Engaged in Affiliate Marketing Programme • At the time accounted for 25 -30% of revenue • Signed around 2300 affiliates • Expanded the range again • Tweaked the website • Trialled our first catalogue • Upgraded our email platform
  29. 29. Sales Growth 0 100 200 300 400 500 600 2005 2006 2007 2008 2009 2010 2011 25+190%
  30. 30. Timeline • Initial idea formulated in 2004 • Sold first watch Off The Page & PPC in 2005 • Social Networking in 2006 • Email, Affiliate and Catalogue in 2007
  31. 31. Timeline - 2008 • Supposed to be consolidation and push on catalogues following success of 2007 trial • 500,000 catalogues • Priced up • Production to match
  32. 32. Timeline - 2008 • Supposed to be consolidation and push on catalogues following success of 2007 trial • 500,000 catalogues • Priced up • Production to match • Swatch group stop supplying movements in Asia • Armageddon hits in October 2008 - Recession
  33. 33. Timeline - 2008 • 12% increase in £SP due to move to Switzerland • Further 8% increase due to exchange rates • Production already made plus missed budgets meant overstocks in 2009. • Cash becomes tight
  34. 34. Sales Growth 0 200 400 600 800 1000 1200 1400 2005 2006 2007 2008 2009 2010 2011 53+142%
  35. 35. Timeline • Initial idea formulated in 2004 • Sold first watch Off The Page & PPC in 2005 • Social Networking in 2006 • Email, Affiliate and Catalogue in 2007 • 100% move to Switzerland and Recession in 2008
  36. 36. Timeline - 2009 • A new Website was developed with Screen Pages on the Magento Platform • Conversion increased by +20% • Emphasis was given to SEO rather than PPC • Supply Chain sorted – Better quality – Access to better movements – Shorter lead-time – allowing reduced stockholding
  37. 37. Timeline - 2009 • The Pig in the Python need to be addressed
  38. 38. Timeline - 2009 • The Pig in the Python need to be addressed • The current Marketing Mix consisted – Email to a very retentive database – Affiliate Programme taking 33% of the revenue – Search focussed on SEO rather than PPC – Catalogue – including offers to Database – Higher converting Website
  39. 39. Timeline - 2009 • As a luxury brand still relatively young – Slash and Burn tactics on the site ... ? ... NO • Email – targeted campaigns • Affiliate – Incentives, exclusive discounts & Vouchers • Allowed us to keep site relatively clean • Retain Brand Integrity • Reduce stocks to 6 weeks forward within 1 year
  40. 40. Sales Growth 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2005 2006 2007 2008 2009 2010 2011 71+47%
  41. 41. Timeline • Initial idea formulated in 2004 • Sold first watch Off The Page & PPC in 2005 • Social Networking in 2006 • Email, Affiliate and Catalogue in 2007 • 100% move to Switzerland and Recession in 2008 • New Website – Focus on SEO - 2009
  42. 42. Timeline - 2010 • A change from Catalogue to Magalogue
  43. 43. Timeline - 2010 • A change from Catalogue to Magalogue • Online Version too
  44. 44. Timeline - 2010 • A change from Catalogue to Magalogue • Online Version too • Extension to the range – up to £750
  45. 45. Timeline - 2010 • A change from Catalogue to Magalogue • Online Version too • Extension to the range – up to £750 • Swiss Chronometer Status • Secure supply chain • Trading +65% • AOV = £259 from £178
  46. 46. Sales Growth 0 500 1000 1500 2000 2500 3000 3500 2005 2006 2007 2008 2009 2010 2011 82+65%
  47. 47. Timeline - 2011 • Further integration of front & back end systems • Improved content on website – mainly video • Move towards direct from Switzerland • Setting up a world beating after sales service • Creation of a Euro site
  48. 48. Sales Growth 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2005 2006 2007 2008 2009 2010 2011 82+35%
  49. 49. 2011 & beyond • Target- to be the UK’s largest watchmaker by 2014 • Nurture Social Networking • Wind down Affiliates – currently down to 11 • Improve the way we present ourselves • Rebrand • Develop much more complicated watches
  50. 50. Looking back over 10 yrs • Still growing at 35% compound • Selling 300 watches • 3 websites and plans for more • In house capability for movements and assembly • Operations in UK, Switzerland, USA and China • With combined sales of close to £10m
  51. 51. Work Smart Work incredibly Hard Have Fun

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