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Millennium Depression Preludes
              Globalizing, Digitizing Economy




       Martijn J Hoogeveen PhD
“Naar een Overtuigende Koopervaring”
      (WWVD, 23 januari 2013)
Martijn J Hoogeveen
•   PhD multimedia marketing 1994

•   “Het Net”, 1st free access infrastructure KPN 1996

•   Professor multimedia/ecommerce Open University Netherlands, 1998-2004

•   “TakeitNow”, 1st computer etailer, January 1999

•   “Iceshop”, 1st webshop Application Service Provider, 2000

•   Co-founder “Thuiswinkel.org”, NL/EU homeshopping organization, 2000

•   “Icecat” started as local competitor of Cnet, 2001

•   Participation in chain of CIS marketing agencies Publicis, 2002

•   “Open Icecat”, No1 global open content catalog, January 2006

• Takeitnow sold & buying Vivendo, Sanoma/Kieskeurig Content Pro, 2008-2012


                      Only focus on what you Love & Believe in
The Power of Social Media




                            We are All Journalists
Development of Ecommerce 1995 – 2013 in Four Windows of
Opportunity


                                           Brand value management window



                                             Ecommerce content window



                         Ecommerce ASP window of opportunity
                                                           1000’en
                                                            (lokale)
                                                             niches


                   Etailer window of opportunity
 1995      1999                   2006                      2013

                  Only Focus on what’s BIG & Disruptive
Ecommerce Business Development: Seven Lessons Learned
1. Cash in on Early Mover Advantages (temporary uniqueness)

2. Focus on Unique positions in a value chain and device USPs.

3. Timely divest when the Window of Opportunity is closing and you’re not No 1.

4. Negotiate the Exit at the Start: Tag along/Drag Along!

5. Focus on Big: differentiate Local from Worldwide opportunities

6. Use “open” source/content strategies to apply scourge earth tactics

7. Ignore the cycles of the general economy, as ebusiness is a long cycle
   (Kondratiev)
Ebusiness is a Long Kondratiev Cycle (50 years or so)




        • It’s a Marathon Not a Sprint

        • It’s about Transforming the economy into a Digital Global Economy

        • Its Creative Destruction ruins complete Business Chains

        • A Depression is sign of Rationalization before new Wealth is created

        • Economic pictures are blurred as many cycles interact with each other

               What do You Think You Contribute to This?
Internet is our infrastructure. More users in
Asia than in Europe and NA combined.




We have become One World, One Global Economy
The Business Rules are Distinct in the Digital
 World: “Open” (Free) wins from “Closed”




Publishers are Shell-shocked about their Property Rights
Free “Open” Community stuff… Is this a Kind of
                   Neo-Marxism?
                           No – Erst das Fressen, dann
                             die Moral
                             Still, No Free Ride in the Physical
                             World of Scarcity (Time, Space
                             and Materials)

                           Yes – Ideas are Free
Richard                      Great Free Content, Sources and
Stallman,
GNU-project,                 Communication Services in
free software-               Cyberspace (the biggest copier in
activist
                             the world). Open Hardware
                             projects in infancy.

            When the Cost of a Download Approaches Zero
#1 Open Catalog: Global, Fast-
                   Growth, Disruptive




From a Closed Catalog to an Open Catalog
        to a Sustainable Catalog
Icecat: Meeting the Needs of Etailers
•   Product IDs: MPN, GTIN
    (EAN/UPC), Model, Category,
    Family, Series
•   Basic data: Original marketing text,
    Standard specs, Summaries,
    Searchables, Feature descriptions
•   Product images: Thumbnails, Hi-
    res/Low-res, unlimited galleries
•   Multimedia: Video, Animation, 360o
•   Digital docs: PDF leaflets, Manuals,
    Warranty
•   Relations: Alternatives, Options,
    Compatibility
•   Product reviews
•   Feature Logos, incl Sustainability
    Ratings
•   Market Data: Release date,
    Popularity, Stock, Offers, Pricing,    Example data sheet with marketing text, pictures,
                                                     feature logo (EnergyStar),
    Distributors, Countries                         PDFs, specs, X-sell and Up-sell



                                 Etailers Expect this for Free from Brands
Icecat: Why Free Product Content Works


       Internet is buyer orientation medium no 1,
          and it's users love open solutions.

         Excellent quality product content is key
    to online success for channel partners and brands

          Free product content is better used
      and thus generates more market intelligence

           A brand’s channel partners expect
          high-quality product content for free
Today, Online Buyer Orientation is what Drives Business




                                                    Forrester research:
                                                       89% of online
                                                     shoppers do visit
                                                  store/retailer website
                                                   during the purchase
                                                     decision making
                                                    process to look for
                                                   product information




               Brands Shift Marketing Budgets to Online
Open Model Icecat works: 2012 Shows Again
                Rapid Expansion Open Icecat Usage

Development # of Open ICEcat Brands                                                       Direct Registrations Continue to Grow
 350       (Sponsors)
                                                                                 25000

 300



 250                                                                             20000

                                                                                               Introduction
                                                                                                   Free
 200                                                                                           OpenICEcat
                                                                                 15000


 150

                                                                                 10000
 100



  50                                                                             5000



  0
       Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012      0
                                                                                         2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012




                                      Growth to 30K registered sites and 330 Sponsoring
                                                       Brands in 2012
Online Icecat Channel Continues to Grow Fast Despite
   Depression or Does it Exemplify an Underlying Cause?
                 Yearly Number of Data-Sheet Downloads (in Mio)
          2500




          2000




          1500




          1000




           500




            0
                   2004   2005   2006   2007   2008   2009   2010   2011   2012




   Icecat strengthens its Position as Worldwide Market Leader.
Prognosis 2012: 2 Billion Data-Sheet Downloads =~34 Bio Views!
USPs of Open Icecat
• Open Icecat has the largest worldwide footprint, in terms of downloads by thousands of
  active users in 40+ countries (in 35 world languages), expanding ~50% annually

• Open Icecat has a powerful, unique Open Content model that is embraced by 300+
  leading Brands, and at the same time allows for controlled publishing of key assets

• Active users of Open Icecat not only focuses on webshops, but also on leading
  comparison sites, distributors, application service providers, product rating agencies...

• The active users of Icecat range from the very big (Amazon, Buy.com, Ingram Micro) to
  the very small

• Open Icecat is a full service provider for channel partners: providing XML data, web pages
  (URL), lead generation, easy ecommerce solutions incl. Webshops.

• Open Icecat offers marketing intelligence to manufacturers on end-user online buying
  orientation, stock, sales-out and channel trends

• Open Icecat is the Industry Standard for product content.



                             A Service Needs at Least one Real USP
No1 online channel: 20.000+ Open icecat users.
     US and Asia quickest expanding.
                                                                     Icecat Users per Region



                                                                           NORDICS
                                                                             4%
                                                              ASIA & ROW
                                                                  7%




40%+ annual growth in channel partners.              US & AMERICAS
                                                           9%

Viral drivers:
                                                                                               W EUROPE
• Open icecat is the leading source for product   CIS/CEE
                                                                                                  47%

  content (word-of-mouth, media)                    11%

• 500+ Cloud platforms integrated Open
  Icecat in their channel services
• Manufacturers refer resellers to Open Icecat
• Distributors promote Open Icecat
                                                               S EUROPE
                                                                  22%




                          Challenge: Stay on Top of the Wave in Asia
                                       and Win the US
Viral Driver: easy Use via 500+ Standard Platforms

           500+ Different User Platforms Connected to Icecat XML!!!!

                                                            ASP.NET
                                                            MySQL-based (+Php/Perl/Java/..)
                                                            Magento Commerce
                                                            osCommerce
                                                            PrestaShop
                                                            Custom/Inhouse development
                                                            Joomla/Virtuemart
                                                            Quotewerks
                                                            MS SQL Server
                                                            Batavi
                                                            opencart
                                                            php
                                                            Java
                                                            Zen Cart
                                                            xt:Commerce
                                                            xtcModified
                                                            c-entron
                                                            CS-Cart




                  No Viral Drivers, No Success as Startup
Trusted Green Logos Drive Conversion
Green Matters: EnergyStar Rated Products 33% More Popular
(Q3 2012)

         EnergyStar Rated products have on average 33% more downloads

                             (n=5059 products sampled)

   450
   400
   350
   300
                                                         Average DDs per product
   250
   200
   150
   100
    50
    0
            EnergyStar=Yes           EnergyStar=No




                       EnergyStar is a Reknown, Trusted Logo
Quality Matters: Trusted Reviews & Product Tests Drive Conversion




                       Independent Editor’s Choice is Key
Think Open, Think Green, Think Trust
                   Dank u voor uw aandacht!




       Martijn J Hoogeveen PhD
“Naar een Overtuigende Koopervaring”
      (WWVD, 23 januari 2013)

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Naar een overtuigende koopervaring

  • 1. Millennium Depression Preludes Globalizing, Digitizing Economy Martijn J Hoogeveen PhD “Naar een Overtuigende Koopervaring” (WWVD, 23 januari 2013)
  • 2. Martijn J Hoogeveen • PhD multimedia marketing 1994 • “Het Net”, 1st free access infrastructure KPN 1996 • Professor multimedia/ecommerce Open University Netherlands, 1998-2004 • “TakeitNow”, 1st computer etailer, January 1999 • “Iceshop”, 1st webshop Application Service Provider, 2000 • Co-founder “Thuiswinkel.org”, NL/EU homeshopping organization, 2000 • “Icecat” started as local competitor of Cnet, 2001 • Participation in chain of CIS marketing agencies Publicis, 2002 • “Open Icecat”, No1 global open content catalog, January 2006 • Takeitnow sold & buying Vivendo, Sanoma/Kieskeurig Content Pro, 2008-2012 Only focus on what you Love & Believe in
  • 3. The Power of Social Media We are All Journalists
  • 4. Development of Ecommerce 1995 – 2013 in Four Windows of Opportunity Brand value management window Ecommerce content window Ecommerce ASP window of opportunity 1000’en (lokale) niches Etailer window of opportunity 1995 1999 2006 2013 Only Focus on what’s BIG & Disruptive
  • 5. Ecommerce Business Development: Seven Lessons Learned 1. Cash in on Early Mover Advantages (temporary uniqueness) 2. Focus on Unique positions in a value chain and device USPs. 3. Timely divest when the Window of Opportunity is closing and you’re not No 1. 4. Negotiate the Exit at the Start: Tag along/Drag Along! 5. Focus on Big: differentiate Local from Worldwide opportunities 6. Use “open” source/content strategies to apply scourge earth tactics 7. Ignore the cycles of the general economy, as ebusiness is a long cycle (Kondratiev)
  • 6. Ebusiness is a Long Kondratiev Cycle (50 years or so) • It’s a Marathon Not a Sprint • It’s about Transforming the economy into a Digital Global Economy • Its Creative Destruction ruins complete Business Chains • A Depression is sign of Rationalization before new Wealth is created • Economic pictures are blurred as many cycles interact with each other What do You Think You Contribute to This?
  • 7. Internet is our infrastructure. More users in Asia than in Europe and NA combined. We have become One World, One Global Economy
  • 8. The Business Rules are Distinct in the Digital World: “Open” (Free) wins from “Closed” Publishers are Shell-shocked about their Property Rights
  • 9. Free “Open” Community stuff… Is this a Kind of Neo-Marxism? No – Erst das Fressen, dann die Moral Still, No Free Ride in the Physical World of Scarcity (Time, Space and Materials) Yes – Ideas are Free Richard Great Free Content, Sources and Stallman, GNU-project, Communication Services in free software- Cyberspace (the biggest copier in activist the world). Open Hardware projects in infancy. When the Cost of a Download Approaches Zero
  • 10. #1 Open Catalog: Global, Fast- Growth, Disruptive From a Closed Catalog to an Open Catalog to a Sustainable Catalog
  • 11. Icecat: Meeting the Needs of Etailers • Product IDs: MPN, GTIN (EAN/UPC), Model, Category, Family, Series • Basic data: Original marketing text, Standard specs, Summaries, Searchables, Feature descriptions • Product images: Thumbnails, Hi- res/Low-res, unlimited galleries • Multimedia: Video, Animation, 360o • Digital docs: PDF leaflets, Manuals, Warranty • Relations: Alternatives, Options, Compatibility • Product reviews • Feature Logos, incl Sustainability Ratings • Market Data: Release date, Popularity, Stock, Offers, Pricing, Example data sheet with marketing text, pictures, feature logo (EnergyStar), Distributors, Countries PDFs, specs, X-sell and Up-sell Etailers Expect this for Free from Brands
  • 12. Icecat: Why Free Product Content Works Internet is buyer orientation medium no 1, and it's users love open solutions. Excellent quality product content is key to online success for channel partners and brands Free product content is better used and thus generates more market intelligence A brand’s channel partners expect high-quality product content for free
  • 13. Today, Online Buyer Orientation is what Drives Business Forrester research: 89% of online shoppers do visit store/retailer website during the purchase decision making process to look for product information Brands Shift Marketing Budgets to Online
  • 14. Open Model Icecat works: 2012 Shows Again Rapid Expansion Open Icecat Usage Development # of Open ICEcat Brands Direct Registrations Continue to Grow 350 (Sponsors) 25000 300 250 20000 Introduction Free 200 OpenICEcat 15000 150 10000 100 50 5000 0 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Growth to 30K registered sites and 330 Sponsoring Brands in 2012
  • 15. Online Icecat Channel Continues to Grow Fast Despite Depression or Does it Exemplify an Underlying Cause? Yearly Number of Data-Sheet Downloads (in Mio) 2500 2000 1500 1000 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Icecat strengthens its Position as Worldwide Market Leader. Prognosis 2012: 2 Billion Data-Sheet Downloads =~34 Bio Views!
  • 16. USPs of Open Icecat • Open Icecat has the largest worldwide footprint, in terms of downloads by thousands of active users in 40+ countries (in 35 world languages), expanding ~50% annually • Open Icecat has a powerful, unique Open Content model that is embraced by 300+ leading Brands, and at the same time allows for controlled publishing of key assets • Active users of Open Icecat not only focuses on webshops, but also on leading comparison sites, distributors, application service providers, product rating agencies... • The active users of Icecat range from the very big (Amazon, Buy.com, Ingram Micro) to the very small • Open Icecat is a full service provider for channel partners: providing XML data, web pages (URL), lead generation, easy ecommerce solutions incl. Webshops. • Open Icecat offers marketing intelligence to manufacturers on end-user online buying orientation, stock, sales-out and channel trends • Open Icecat is the Industry Standard for product content. A Service Needs at Least one Real USP
  • 17. No1 online channel: 20.000+ Open icecat users. US and Asia quickest expanding. Icecat Users per Region NORDICS 4% ASIA & ROW 7% 40%+ annual growth in channel partners. US & AMERICAS 9% Viral drivers: W EUROPE • Open icecat is the leading source for product CIS/CEE 47% content (word-of-mouth, media) 11% • 500+ Cloud platforms integrated Open Icecat in their channel services • Manufacturers refer resellers to Open Icecat • Distributors promote Open Icecat S EUROPE 22% Challenge: Stay on Top of the Wave in Asia and Win the US
  • 18. Viral Driver: easy Use via 500+ Standard Platforms 500+ Different User Platforms Connected to Icecat XML!!!! ASP.NET MySQL-based (+Php/Perl/Java/..) Magento Commerce osCommerce PrestaShop Custom/Inhouse development Joomla/Virtuemart Quotewerks MS SQL Server Batavi opencart php Java Zen Cart xt:Commerce xtcModified c-entron CS-Cart No Viral Drivers, No Success as Startup
  • 19. Trusted Green Logos Drive Conversion
  • 20. Green Matters: EnergyStar Rated Products 33% More Popular (Q3 2012) EnergyStar Rated products have on average 33% more downloads (n=5059 products sampled) 450 400 350 300 Average DDs per product 250 200 150 100 50 0 EnergyStar=Yes EnergyStar=No EnergyStar is a Reknown, Trusted Logo
  • 21. Quality Matters: Trusted Reviews & Product Tests Drive Conversion Independent Editor’s Choice is Key
  • 22. Think Open, Think Green, Think Trust Dank u voor uw aandacht! Martijn J Hoogeveen PhD “Naar een Overtuigende Koopervaring” (WWVD, 23 januari 2013)