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Subscribed NYC 2017: Land & Expand: Your Strategy for Global Market Expansion

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Tapping into overseas markets can boost revenue, expand your subscriber base, and allow your business to experiment with new use cases. In some industries, the rapid growth of online spending can make global expansion imperative simply to keep up with competition. Attend this session for strategies that all B2C companies should be thinking of when entering new global markets.

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Subscribed NYC 2017: Land & Expand: Your Strategy for Global Market Expansion

  1. 1. Land to Expand Establish Foreign Legal Presence to Increase Revenue and Profitability Neeraj Gupta Leader of International Product, Vantiv Kristin Hagan Leader of Global Partnerships, Zuora
  2. 2. Growing International Opportunity page 03 The rest of the top-10 markets combined are growing at ~25% every year. Projected eCommerce Sales for the 10 Largest Markets Others Countries Among Top 10 United States In the US, eCommerce sales are growing at ~12% yearly.
  3. 3. Many Ways to Enter Overseas Markets page 04 taking the tour accidentally global permanent resident
  4. 4. Setting Up Shop Overseas  Be closer to existing customers  Understand prospective customers better  Streamline supply & distribution chains What else?
  5. 5. Less Obvious Advantages page 06 Pricing in local currency goes a long way to boosting conversion/acquisition. Local presence goes one step further by maximizing approval rates on credit/debit card payments. Increased Sales Maximize profitability by reducing FX risk and fees and reducing the fees imposed by card brands and issuing banks—all through local legal presence. Reduced Cost
  6. 6. REVENUE
  7. 7. Ecosystem Background page 08 ISSUING BANK MERCHANT ACQUIRING BANK I A
  8. 8. How Issuers Make Decisions page 09 I A
  9. 9. Impacts to Top Line page 010 Increased Card Approval Rates Issuing banks tend to allow far more domestic authorizations than those cross-border. In some markets, can be an all-or-nothing proposition. Reduced Foreign Trxn Fees to Customers Issuing banks will often levy these fees when shopping cross- border. Merchants don’t see these but they can deter conversion.
  10. 10. approval rate  8% ~potential lift in sales (£) TTM £970K potential lift in sales ($) TTM $1.2M Example Results
  11. 11. PROFITABILITY
  12. 12. Ecosystem Background, Revisited page 013 I A
  13. 13. EU Interchange Fee Regulation Caps fees imposed by issuing banks and card brands on merchants.  Credit - 30 bps + EUR 0.05  Debit - 20 bps + EUR 0.05
  14. 14. Impacts to Bottom Line page 015 Reduced Cost of Processing Domestic credit and debit card transactions are subject to far lower issuer (interchange) and card brand (assessment) fees. Reduced Risk and Fees Due to FX Receive proceeds of net sales in local currencies to avoid repatriation and associated currency conversion risk and cost.
  15. 15. passthrough fees  77% reduction in cost ($) TTM $240K Example Results
  16. 16. CONCLUSION
  17. 17. What’s Next page 018 Increased Sales Reduced Cost Establishing operations in overseas markets is a logical step in your global strategy: increasing customer acquisition/retention efforts while lowering costs from reduced cross-border transaction fees. 1. EU US Privacy Shield: Effectively replacing Safe Harbor 2. PSD2 Regulations & Deadlines (UK and EU): What this means? 3. Payment Method Shift: Credit Cards declining in favor of APM Alternative Payment Methods: non-card (Direct Debit options: SEPA, BACS, etc. On the Horizon… Q & A to follow
  18. 18. Q&A
  19. 19. thank you.

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