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e-Commerce are you there?
 

e-Commerce are you there?

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e-commerce is not really happening ye in Israel. In the presentation I propose my approach to why e-commerce in Israel is not yet developed and why this is about to change. Retailers in Israel are ...

e-commerce is not really happening ye in Israel. In the presentation I propose my approach to why e-commerce in Israel is not yet developed and why this is about to change. Retailers in Israel are facing hard times with the economic downturn along with last years protests against the high cost of living. e-commerce might just be their way to deal with it!

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    e-Commerce are you there? e-Commerce are you there? Presentation Transcript

    • E-CommerceAre you there? Shay Rosen Head of Strategy & Consulting shayr@realcommerce.co.il
    • Shay Rosen Head of Strategy & Consulting, realcommerceShayr@realcommerce.co.ilhttp://www.linkedin.com/in/shayrosenhttp://www.facebook.com/shayrshttp://www.slideshare.net/shayrsM: 052-5118539
    • • Strategy Business analysis, Concept creation, UX, UI• Technology Robust, Smart, efficient content management & e commerce platforms for mega sites• Leadership Powering Israel’s largest and most successful enterprises
    • The World 2011
    • The World 2011
    • $11.4B Total SalesBlack Friday6.6% Retail Sales Growth29.3% Online sales Growth
    • $1.25B OnlineTotal Sales Facts about e-commerceUp 33% from last year292% Mobile Sales Growth (!)
    • US E-commerce Forecast SOCIALRelationship Collaboration CRM9
    • Europe E-commerce ForecastRelationship Collaboration Forrester10
    • E-commerce Maturity SOCIAL • 79% of online European consumers plan to purchase products orRelationship Collaboration services via the Internet in the next six months CRM Online consumers in Norway (89%) and GB (86%) show the greatest propensity planning a web purchase in the near future (Nielsen Global Consumer Report June 2010) 100% 89% 86% 84% 83% 79% 81% 78% 77% 80% 74% 72% 68% 60% 40% 20% 0% EU Poland Ireland France Netherlands Spain Belgium Norway UK Denmark Italy Average Austria Switzerland Germany & Czech Republic11
    • Israel E-commerce2011 ‫כלכליסט, מרץ‬
    • Israel E-commerce Myths• Israelis are afraid to pay online•• Israel is a Small Country, Stores are near by, There’s no need for e-commerce•Everybody believes prices are better in the store
    • Israel E-commerce Myths (1)•Israelis are afraid to pay online • Changed dramatically since the arrival of the coupon trend. •54% of credit card holders already bought something online •Large growth of Paypal accounts in Israel
    • Israel E-commerce Myths (2)• People need to feel and touch the merchandize, Nobody will buy clothes online
    • Israel E-commerce Myths (3)• Israel Is a Small Country, Stores are near by, There’s no need for e-commerce • Really? what about traffic, parking, standing in lines?
    • Israel E-commerce Myths (4)• Everybody believes prices are better in the store – unfortunately that’s right
    • Israel E-commerce Truth• E-commerce in Israel is poor• Most Retailers don’t sell online• Many of Those who do sell online offer better prices in stores• Majority of online stores in Israel have bad UX and bad customer service
    • Israel 2011 - change is here
    • Israel 2011 - change is here• Digital revolution is here• 40% Smartphone penetration (Higher than US and Eu)• 90% Facebook penetration (2nd in the world)• Highly engaged and active 2009
    • Israel 2011 - change is here
    • ‫‪Israel 2011 - change is here‬‬ ‫לקנות דרך האינטרנט - מחירי ישראל לעומת ארה"ב (בשקלים)‬ ‫פער מחירים ישראל -‬ ‫מחיר בארה"ב‬ ‫מחיר בארץ‬ ‫פריט‬ ‫ארה"ב‬ ‫%853‬ ‫663‬ ‫903,1‬ ‫שואב אבק עומד ‪Hoover H1.Inf‬‬ ‫930,2-536,5 339-933,1‬ ‫עגלת ‪Switch Peg Perego‬‬ ‫%124‬ ‫933,1-948,2 946-984,1‬ ‫טיולון ‪City Mini BabyJogger‬‬ ‫%191‬ ‫%261‬ ‫892‬ ‫484‬ ‫נעלי ‪Nike SHOX Nz Si‬‬ ‫%711‬ ‫757‬ ‫488‬ ‫טרקטורון צעצוע004 ‪SPORTSMAN‬‬ ‫%611‬ ‫695‬ ‫096‬ ‫מעיל סקי ‪RIDE Kent Insulated‬‬ ‫%002‬ ‫6.47‬ ‫941‬ ‫כפפות נוער לסקי ‪Columbia Core‬‬ ‫פאקו רבאן ליידי מיליון או דה פרפיום 08‬ ‫852‬ ‫603-953‬ ‫%931‬ ‫מ"ל‬ ‫פלטינום קרם יום לפנים צוואר ומחשוף‬ ‫664‬ ‫975‬ ‫%421‬ ‫לנקום 05מ"ל‬ ‫%551‬ ‫944‬ ‫996‬ ‫סרום הלנה רובינשטיין ‪Prodigy Powercell‬‬ ‫%471‬ ‫414‬ ‫917‬ ‫תרמיל טיולים 83 ‪Osprey Kestrel‬‬‫‪ ,Ynet‬דצמבר 1102‬
    • 2012E-commerce in Israel?
    • OMG! Cannibalization• Staples – 45% of sales are online• Office Depot – 40%• Victoria’s Secret - 16%• Gap – 10%It’s not Cannibalization – it’s adjustment
    • Setbacks• Integration• High costs• Synergy with retail operation• Lack of know how• Does not fit organization structurePostponed e-commerce projects
    • Evolve
    • Fact:Consumption is a digital activity• 75% research online prior to buying(!)• Price comparison sites• Search for information• Product reviews• Social (Talking about) shopping Consumers already visit your website for information – why send them away?
    • Price• In Bold – Lowest prices online!• In the front – Selected items must go lower than in store• Inside – Can be equal• Never higher than in store prices! A mater of perception Prices on the website just can’t be higher
    • Shoesite.com 2000 - $1.6M
    • “In terms of the threemajor areas - service,selection and price -you can really offer twoof them in the sametime.Our brand was inservice and selection”Tony Hsieh, CEO
    • • Toll-free number shown everywhere and not hidden• Free shipping and returns• 365-day return policy• 24/7 availability (same working hours as the Internet…)• 24/7 Warehouse• Promise delivery within 4-5 business days* * Usually upgrade to overnight shipping by surprise
    • 75% Returning customers $110  $140 First timer average vs. returning customer
    • User Experience –It’s about breaking barriers• Create confidence • You are not alone • Nothing is irreversible• Special deals online• Ease of use• Fun & smooth experience
    • User Experience –It’s about breaking barriers• Think about the bounce rate• 8-12 Seconds to bounce!• Return policy & customer service• Lower Prices & Free shipping• Invitation to enter • Attractive Deals & related products• Orientation: • Search • Flat Navigation • Intuitive Product browsing• 24/7 customer service• Trustworthy product reviews & Ratings• Shopping Cart always present• Keep in touch Measure & Optimize Constantly
    • Creating confidenceBreaking Barriers(1) Added Values
    • Creating confidence Breaking Barriers(2)24/7 Customer Service
    • Orientation• Search• 4 ways to browse products
    • Invite• Attractive promotion• Deals
    • Functional area: My Account Shopping cart
    • The importance of Mobile
    • Social Media – Handle with care• Facebook / Twitter: • Customer care • Support • Drive Traffic • Keep in touch• Blog: Info & Review• Youtube: Product info videos
    • Complete e-commerce operation
    • Looks Complicated ? Expensive?• This is life• Create a new P&L – that’s the only way• Assign a team• Plan• Set Goals, Objectives & Budget• Launch• Be patient, Measure, Optimize and Evolve• It’s worth it! Do it – it’s 2012!
    • Shay Rosen Head of Strategy & Consulting, realcommerceShayr@realcommerce.co.ilhttp://www.linkedin.com/in/shayrosenhttp://www.facebook.com/shayrshttp://www.slideshare.net/shayrsM: 052-5118539
    • E-CommerceAre you there?