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EBE 2019 - Distributed Commerce Strategy

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Albert Vellve
Business Owner Distributed Commerce Zalando

Reaching new users is getting more difficult for companies in a world that suffers an increased app-fatigue and where users' mind-share is getting more concentrated in fewer and fewer apps. Distributed Commerce's goal is to reach customers at the point of discovery and offer them a seamless Zalando commerce experience.

Albert Vellve is the Commercial Owner for Distributed Commerce at Zalando. With an engineering and business administration background, Albert got his Masters Degree in Innovation and Entrepreneurship at ESADE Business School. He has embarked in several international adventures cofounding startups and working in innovation departments of multinational companies such as Henkel or Mitsubishi.

Published in: Marketing
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EBE 2019 - Distributed Commerce Strategy

  1. 1. About us Head of Product Distributed Commerce @ Zalando Business Owner Distributed Commerce @ Zalando
  2. 2. 3 • Start With The Why • Who Is Zalando And What Is Our Goal? • What Have We Learned? AGENDA
  3. 3. 4 Why?
  4. 4. BEING MOBILE FIRST IS NOT ENOUGH Are dominated by Facebook and Google Top 15 mobile Apps Of time is spent by people on the top 3 Apps ~75% Of people just download one app per month 49% Source: ComScore, data is for US market
  5. 5. 6 LITTLE MOBILE TIME SPENT ON RETAIL Entertainment & Communication categories Source: comScore Mobile Metrix, US, Age 18+, June 2017
  6. 6. 7 IN CHINA, PURCHASES ON WECHAT HAVE DOUBLED IN A YEAR, WITH APPAREL BEING THE TOP PERFORMING CATEGORY Source: McKinsey iConsumer China 2016 survey
  7. 7. 8 IN CHINA, WECHAT SALES INCREASE & FASHION HAS THE HIGHEST GROWTH RATE Sources: 智研咨 and Newrank & Youzan 2018 WeChat Social Commerce Report Estimated Wechat Sales (Billion RMB) Rank of Fastest Growing Social Commerce Categories Category Product +45%
  8. 8. 9 WEB FOCUS - EVOLUTION 10 years ago SEO 5 years ago Mobile First Today Social Media Tomorrow ???
  9. 9. 10 STARTING POINT
  10. 10. 11 STARTING POINT
  11. 11. 12 STARTING POINT
  12. 12. 13 STARTING POINT
  13. 13. 14 Who Is Zalando And What Is Our Goal?
  14. 14. 15 WE CONNECT PEOPLE AND FASHION Technology Fashion Logistic
  15. 15. 16 ZALANDO AT A GLANCE ~ 4.5billion EUR revenue 2017 > 200 million visits per month > 15,000 employees in Europe > 75% of visits via mobile devices > 24 million active customers > 300,000 product choices ~ 2,000 brands 17 countries as at Aug 2018
  16. 16. 17
  17. 17. DISTRIBUTED COMMERCE PROVIDES A SEAMLESS SHOPPING EXPERIENCE WHEREVER CUSTOMERS GET INSPIRED
  18. 18. 19 No navigation - less distraction and focus on impulse purchase Distributed Commerce Zalando m.Site Scarcity messages increasing CR
  19. 19. 20 Instant checkout for quick purchase in addition to the cart Distributed Commerce Zalando m.Site
  20. 20. 21 Convenient guest checkout without account creation Distributed Commerce Zalando m.Site
  21. 21. 22 CHATBOTS AND VIRTUAL DIGITAL ASSISTANTS SEAMLESS SHOPPING ON DISTRIBUTED PLATFORMS WE CURRENTLY HAVE TWO MAIN AREAS OF WORK
  22. 22. DISTRIBUTED COMMERCE ON INSTAGRAM Place HOLDER
  23. 23. FACEBOOK MESSENGER BEAUTY BOT
  24. 24. 25 What Have We Learned?
  25. 25. 26 What Have We Learned? On Social Media Platforms
  26. 26. 27 BE AWESOME Build a cross-functional team that embraces failure as part of the learning process
  27. 27. 28 IT’S ALL ABOUT DATA Think of it as a product
  28. 28. 29 THINK BIG, START SMALL, SCALE FAST Find the best use case, always having a lean mentality
  29. 29. 30 DE-AVERAGE Following scaling, take a step back
  30. 30. 31 BE PATIENT Platforms change faster than customers behavior
  31. 31. 32 What Have We Learned? On Conversational Platforms
  32. 32. PERSONALISATION Is core to a great conversational experience
  33. 33. FOCUS On a specific customer problem
  34. 34. DIFFERENTIATED VALUE Think of unique value you can deliver over a conversation
  35. 35. OPTIMISE FOR ENGAGEMENT AND RETENTION Commercial impact will follow

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