How the internet is changing garden retailing!
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How the internet is changing garden retailing! Presentation given at GLEE 2014 in Birmingham. The presentation covers topics like e-commerce and smartphone opportunities for garden retailers. See www.gardenconnect.com for more information & tips.
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How the internet is changing garden retailing!
- 1. HOW THE INTERNET CHANGES GARDEN RETAILING!
- 2. WELCOME! Who am I? Where are we now? E-commerce Smartphones Q&A
- 3. WHO AM I? Very Dutch! Founder of Garden Connect, 2002 Groups & independents Interested in changing retailing landscape
- 4. WHO IS GARDEN CONNECT? Providing websites for 200+ garden retailers Webshops E-mail marketing newsletters (about 500.000 / week) Social media GardenDeal App
- 5. HERE WE ARE: Your customers are online The old days are long gone The customer doesn’t understand a barrier between offline & online
- 6. AND HERE ARE SOME FACTS: UK shoppers spent £91bn online in 2013 and set to spend £107bn in 2014 So that’s + 16% Mobile sales are up 138% on the year “Garden product sales over the internet to rise to £774m” in 2018 (that’s 2x 2014) In other words: 15% in the industry will be spent online
- 7. WHERE DO YOUR CUSTOMERS … find information? … compare products? … get other peoples’ views? … check availability? … buy products?
- 8. SUMMARY: The customer journey is changing Your role is changing The supply chain is changing EVEN DONKEYS UNDERSTAND DOING THE SAME OVER AND OVER AGAIN DOESN’T CHANGE THE RESULT!
- 9. Traditional sales (since 1000 bc) Internet sales (since 1995) Offline retailers (most garden centers) Online retailers Store with webshop Webhop with store Offline Online Most independent garden centres Thanks to Cor Molenaar!
- 10. OR ARE WE GOING TO BE LIKE: TV Radio CD shops (HMV) Photoshops (Jessops, Kodak) Bookstores (Borders) Videostores (Blockbuster) Sport stores (JJB Sports) Giftshops (Clinton Cards) Fashion stores (Peacocks, Republic) Website e-mail
- 11. E-COMMERCE TV Radio Defensive move or a great opportunity? Do you want to sell or drive traffic to your centre? Are you offering a full productrange or only a selection? Is your price level equal as your centre or are you going to price-dump products? Website e-mail
- 12. E-COMMERCE TV Radio How do you deal with returns of garden furniture from Edinburgh to Brighton? Do you have knowledge about online marketing? Do you have time to update a webshop? What’s the position of e-commerce in your marketing mix? Website e-mail
- 13. Traditional sales (since 1000 bc) Internet sales (since 1995) Offline retailers (most garden centers) Online retailers Store with webshop Webhop with store Offline Online
- 14. SMARTPHONES TV Radio Website e-mail
- 15. SMARTPHONES TV Radio Almost 50% of the internet traffic is mobile Most personal device Responsive website Direct connection with your customer! Website e-mail Mobile sales are exploding – and where are you?
- 16. SMART FACTS TV Radio Website e-mail
- 17. TV Radio Website e-mail
- 18. OPPORTUNITIES TV Radio Send a special coupon to customers on their birthday Use instore communication via smartphones to show reviews of products Push special promotions to customers entering your garden centre Website e-mail
- 19. LUST BOT NOT LEAST TV Radio Use your own strength and beat webshops on their weaknesses! Website e-mail
- 20. THANKS! Stand 18N60 Edwin@gardenconnect.com Follow me @eemeijer
Editor's Notes
- Good afternoon Welcome The internet is influencing sales in the entire retail, not just garden centres What’s happening and how can we adept?
- Sunday afternoon so I won’t make it too heave We’ll finish in about 30 minutes so you got plenty of time to look around at the show Some trends and a lot of valuable practical information Q&A after the presentation or at our stand
- I’m very dutch, 31 Founder of Garden Connect We work for several marketing groups, family owned groups and independents
- We’re providing websites to about 200 garden retailers We provide over 50 webshops We provide website content and send newsletters to about 500,000 newsletters / week Social media services GardenDeal App, new innovation and a mobile based loyalty scheme which is future proof. We’ll talk about mobile later on!
- So let’s see where we are now: Your customers are going online, younger ones and older ones The internet is here to stay, so the old days won’t come back. Your older customer base is shrinking. I know two customers of ours who are checking the obituaries in the local newspapers to remove customers from their customer database. Akward isn’t it? More important: customers are ignoring more and more the difference between online and offline. Offline orientation and online shopping are merging. So for example: you’re buying shoes in the high street but the store doesn’t have your size. You can order it instore, pay like a normale purchase but it will be delivered within 24 hours as with online orders. This is how train stations look nowadays
- Facts Online sales in the UK will pass the 100 billion pounds – that’s a lot of money! +16% year on year compared to 2013 Smartphone based sales are up 138% Hortweek published a survey saying online sales in our industry will double the upcoming 4 years. Earlier this week we received reports from the Dutch trade organisation saying online sales in NL in the industry are up 3%% compared to 2013. So to summarize: within 4 years 15% will be spent online. If you looked at he Market Analysis from the HTA you’ve noticed the market isn’t growing, so the online sales are reducing the offline sales. Back to the first point: the UK are the world champions of online sales! The amount of money spent online per consumer is the highest of the world! After 1966 you finally did it again!
- So if you ask yourself a few questions you realise the internet should be in yourmarketing strategie. Or is your strategie to target customers via yellow pages?
- So to summarize: The customer journey is changing Your role is changing as you don’t have the monopoly on knowledge anymore. Knowledge is in your hands with your smartphone! The supply chain is changing as retailers don’t have a monopoly on sales anymore. Amazon is selling with stores and manufactures can communicate directly with customers, passing the retailers.
- So let’s visualize what we should do.
- So let’s assume you want to go ahead and start your own journey, what do we have to ask:
- Yeoman General Purpose Shear
- So if you take a look at this chart again, we should move to the middle to make money again. If you stay on the left you can still survive but only if you have a very specialized centre. If you’re selling 1001 pond products which are hard to find and have dedicated staff who knows a lot about pond products you can survice. It’s hard but doable. Think about a tie shop in London selling 5,000 ties. That sort of specialization.
- Every retailer should lvoe smartphones as they are you way into your customers mind.
- Give me your smartphone and I tell you who you are. It’s all I need! Of course your website should be responsive as a starting point Smartphones allow you to establish a direct connection with your customers Mobile sales are +138% this year – how much did you do via mobile phones? Let’s see how customers use their smartphone stores to see the opportunities
- Check those facts
- Reviews generate sales, make them visible on your own website to get custoemrs and to keep them within your own control.
- Online is growing and will grow, but there are plenty of opportunities for you!
- We’re introducing the garden deal app at GLEE so be sure to popin for a demonstration!