Moritz Corbelin Head of E-Commerce Strategy Otto Group The retail arena is undergoing massive changes: Consumer behaviour changes rapidly, new digital business models put proven paradigms upside down, an abundance of data is generated at all times. How the Otto Group evolved from a traditional mail-order business to an active E-Commerce leader, comprising more than 120 online retail and service providers from around the world.

1. Data-Driven
E-Commerce –
Otto Group in a Changing
World
Moritz Corbelin
Head of E-Commerce Strategy
Otto Group

2. Titel der Präsentation,
Name, Abteilung,
Ort, xx. Monat 2014
2
Moritz Corbelin, Head of E-Commerce Strategy
E-Commerce Berlin Expo, 2 February 2017
Data-driven e-commerce – Otto Group in a changing world

3. 3 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
We‘ve come a long way…
1
From catalogue to e-commerce

4. 4 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Starting with a 14 page hand bound catalogue in 1949, the Otto
Group has become a globally retail and services company
1995 2015 / 2016
over
20
countries
> 120
Online
shops
over
49,000
employees
0.1 %
15 %
68 %
€1.4 bn
€9 m
% of online sales € 6.5 bn

5. 5 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Otto Group companies are globally successful in digital business
models
Nordamerika
Südamerika Asien
Restl. Europa
Russland
Deutschland
Majority interest
of the
Otto Group
Minority interest
of the
Otto Group

6. 6 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Challenges ahead…
2
How we see the market

7. 7 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
In Retail the disruptions are particularly evident
Until ~2000:
Consumers use
locally restricted
offering
From ~2000:
Consumers choose
between (almost)
unlimited options
And in the future?
?

8. 8 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Today, internet consumption takes place in apps – but users tend
to interact only with a small amount of mainly social apps
Source: ComScore 2015/2016
2014 2015
Desktop Apps Mobile browser
#3
10%
#1
45%
#2
18%
Online time is
mainly spent
in apps Most time is
spent in top
3 apps
+90%

9. 9 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
The future is about simplification – few players control most of
the digital user journey…
Source: Otto Group

10. 10 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
The future is about simplification – few players control most of
the digital user journey…
Source: Otto Group

11. 11 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Gatekeepers claim an increasing part of the consumer‘s
attention...
GAFAA
control
>55% of the
Digital User
Journey2
1) Internet World Business (05/2015); 2) GAFAnomics, faberNovel
(10/2014); 3) wearesocial.de (01/2015); 4) USA Today (03/2015);
5) TechCrunch (05/2015)
45% of global smartphone web traffic 2
67% of global social media accounts3
1/3 of all online product purchasing searches4
98% of European mobile search1
76% of total Chinese m-commerce5

12. 12 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Source: twitter.com/benedictevans/

13. 13 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Conversational commerce is emerging all around the world
Screening products
on Instagram
Product request
via Line
Confirm payment Tracking
information
Receive payment
details
Source: techcrunch.com; screenshots taken from messenger Line

14. 14 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Usage of voice searches has been increasing over the last few
years
Source: searchengineland.com; gadgets.ndtv.com; searchenginejournal.com
1 out of 5
searches
through
speech
More than
1 billion
requests per
week through
voice
25% of
searches on
Windows 10
taskbar are
voice
searches
In 2020 50%
of all searches
through
speech or
image
50 billion voice
searches per month
10% of the overall
search volume
globally

15. 15 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
All industries are faced with a rapid speed of technological
innovations. Simultaneously new customer access points arise

16. 16 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Manufacturers gain direct access to customers – partly in
cooperation
Source: samsung.com; computerbild.de; cnet.com

17. 17 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Companies of all industries can hardly cope with the fast pace of
current technological changes and challenges on their own
1400 1500 1600 1700 1800 1900 2000
Source: ebootis.de
Accelerating
growth in
technology
1960 2012
60
years
18
years
2020
Average life
expectancy
of
companies

18. 18 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Transforming the core business
3
Digitization & cultural change

19. 19 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Transformation of the core via four pillars
Digitisation @ Otto Group
Transform VentureCreateParticipate
Venture Capital
Internet Pure
Players
Financial Tools
& Services
Multichannel
Retail

20. 20 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Transformation of the core via four pillars
Digitisation @ Otto Group
Transform
Multichannel
Retail

21. 21 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Transformation of the core via four pillars
Digitisation @ Otto Group
Participate
Financial Tools
& Services

22. 22 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Transformation of the core via four pillars
Digitisation @ Otto Group
Create
Internet Pure
Players

23. 23 Data-driven e-commerce –
Otto Group in a changing world
Berlin, February 2017
Transformation of the core via four pillars
Digitisation @ Otto Group
Venture
Venture Capital