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Successfully Conquering
New Markets Using E-Commerce
Chances and Challenges of
Selling in New Markets
         Chances                       Challenges

    Finding new customers       Understanding foreign behaviour


   Promoting new products         Finding the right product mix


  Tapping additional revenues      Managing costs effectively


              ...                              ...




                                                                  2
Thesis:
E-Commerce has become a very
powerful channel for conquering new
markets.
Thesis:
E-Commerce has become a very
powerful channel for conquering new
markets.

Option:
With e-commerce outsourcing
you can be a lot faster
tapping your online sales potential
E-Commerce Chances:
Follow the Regional Brand-
Interest for „hilfiger“ in different countries and states:




                                                               Find the
                                                            markets with
                                                             the highest
                                                            online interest
                                                            in your brand
                                                             and product




                                                                              5
Selling Space for New Products:
Use Temporary and Regional
Interest for „Crocs“ over Time in different regions:


  World


                                                       Create the
                                                        highest
  Sweden                                               effiency by
                                                       adapting to
                                                       temporary
                                                         trends
  Germany




                                                         Source: Google Insights



                                                                             6
offline kaufen




    The Online Platform as the Central
    Hub for Information and
                                    Hang tag
                                               Catalogue
          Classic Communication          TV/Radio
                                          Print
                                                  POS




                             Online                                             Local
                            Platform                                            Store

                                                              research online
                                                              purchase offline
                                            Display               (ROPO)


                                          SEO     SEA
                 Online Marketing
                                                  Affiliates
                                       E-Mail
                                                                                        7
Well-Known To All Of Us:
E-Commerce Challenges
          Finding the most profitable target customers


         Engaging them in the offer, make them return


           Providing inspiration and excellent service


      Putting the customers in control fulfilling their desire


          Finding ways to stem against price pressure




                                                                8
Additional Challenge Today:
 Consumers‘ Expectations Rise
What consumers
expect of any
e-commerce
offering
                                    inspiration

                                    relevance

                                   performance

                  working at all    reliability



                 some years ago       today



                                                  9
What It‘s Made Of:
The E-Commerce Stack
    Online Marketing      finding enough consumers at reasonable cost


    Online Storefront     getting their attention, presenting an easy entry


   Product Presentation   staging the product, making it tangible


                          providing a secure order process
       Fulfillment
                          and fast delivery

   E-Commerce Mgmt.       staying in control of it all!




                                                                              10
A brief (3-step) journey
           into the complexity
of an international e-commerce project
Step 1: Research

Where is the greatest potential for your product?
(countries, target groups)
How strong is your local brand awareness?
Do you have any local presence and experience?
What are your strongest competitors and how do they sell?
Are there explicit local patterns in customer behaviour?
Defining a general strategy and adapting it locally




                                                            12
Some Examples for Differences in
Local Behaviour
France:
_ buy 3 for the price of 2 promotions are a must
_ some extra in the parcel also might not hurt
UK:
_ online marketing is expensive
_ will you be able to establish a profitable business?
Poland:
_ Polish love price reductions
_ they come into your shop quickly, but are away as fast
Austria:
_ is fairly easy to handle if you have a German shop
_ but donʻt treat the Austrians like Germans!


                                                           13
Step 2: Build the Platform

Typical requirements for an international e-commerce
plattform:
_ one inventory per region, different pricing per country
_ multi-lingual, multi-tax ... order process
_ different promotions for each country
_ different risk profiles / risk checks and payment methods
_ different delivery conditions (providers, timings, fees)




                                                             14
Already Running a Website?
Options For Your Platform Strategy
                                     2 Options




   Enhance Existing Platform                      Rollout on New Platform




             Rollout                                   Consolidation


 more planning effort, higher risk               more flexibilty, more speed



                                                                              15
Step 3: Rollout and Optimisation

Step By Step:
_ A good plan would not hurt!
_ Keep your eye on details
_ Donʻt do everything at once
_ Best practice: Complete each rollout every 1-3 months
_ Watch your KPIs closely and regularly
_ Listen to your customers
_ Be ready for local measures to push your business

                                                          16
E-Commerce Outsourcing
is an Option For Many E-Com
    Online Marketing      applying the variety of possibilites


    Online Storefront     strong brand-aware and inspiring platform


   Product Presentation   great quality for the best product experience


       Fulfillment         handling orders quickly and effienciently


   E-Commerce Mgmt.       managing the product catalogue and all processes




                                                                             17
A few words on
next commerce
The Offer: One-Stop E-Commerce
„From Google To Home Delivery“




  Online Marketing               Online Shop             Fulfillment




                                Our Mission:
                     creating true fans for your brand



                                                                      19
next commerce - Company Profile
•   next commerce is made to
    make established brands successful
    in their e-commerce mission.

•   With next commerce we have
    a new business and IT platform to share
    13 years of e-commerce knowledge
    at SinnerSchrader.

•   We select the best-of-breed components
    and align them for building and running
    a state-of-the-art e-commerce solution.

•   We get paid by results, not efforts.




                                              20
next commerce as part of the
SinnerSchrader group
                                      SinnerSchrader AG

 SinnerSchrader Dtld..
                           Spot Media AG       S2 Media/Adbalance         next commerce
        GmbH
                         Interactive Agency   Performance Marketing   E-Commerce Outsourcing
  Interactive Agency
     Core Business           Production           Online Marketing          E-Commerce




Full-Service Agency:     Content Agency         Performance               Full Service
     Consulting,         (since 01/2008):      Marketing 2.0:            E-Commerce
Experience Design,        E-Commerce,         Leading Profiling,          Management,
      Concept,              Catalogue           Targeting &                General
     Technology,          Management,         Ad Management               Contracting
       Hosting           E-Mail Marketing       Technology




                                                                                               21
Our Mission: Putting the
Consumer
                          E-CRM



                                            Fulfillment
                                                          Sales /
  Potential
                                                         Revenue

               Online
              Marketing



                                  Online Shop




                                                                    22
For further discussion,
                           please find us
              in the web.mobile forum!


Moritz Koch
Managing Director
next commerce GmbH

m.koch@next-commerce.com



                                           23

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Successfully Conquering New Markets Using E-Commerce

  • 2. Chances and Challenges of Selling in New Markets Chances Challenges Finding new customers Understanding foreign behaviour Promoting new products Finding the right product mix Tapping additional revenues Managing costs effectively ... ... 2
  • 3. Thesis: E-Commerce has become a very powerful channel for conquering new markets.
  • 4. Thesis: E-Commerce has become a very powerful channel for conquering new markets. Option: With e-commerce outsourcing you can be a lot faster tapping your online sales potential
  • 5. E-Commerce Chances: Follow the Regional Brand- Interest for „hilfiger“ in different countries and states: Find the markets with the highest online interest in your brand and product 5
  • 6. Selling Space for New Products: Use Temporary and Regional Interest for „Crocs“ over Time in different regions: World Create the highest Sweden effiency by adapting to temporary trends Germany Source: Google Insights 6
  • 7. offline kaufen The Online Platform as the Central Hub for Information and Hang tag Catalogue Classic Communication TV/Radio Print POS Online Local Platform Store research online purchase offline Display (ROPO) SEO SEA Online Marketing Affiliates E-Mail 7
  • 8. Well-Known To All Of Us: E-Commerce Challenges Finding the most profitable target customers Engaging them in the offer, make them return Providing inspiration and excellent service Putting the customers in control fulfilling their desire Finding ways to stem against price pressure 8
  • 9. Additional Challenge Today: Consumers‘ Expectations Rise What consumers expect of any e-commerce offering inspiration relevance performance working at all reliability some years ago today 9
  • 10. What It‘s Made Of: The E-Commerce Stack Online Marketing finding enough consumers at reasonable cost Online Storefront getting their attention, presenting an easy entry Product Presentation staging the product, making it tangible providing a secure order process Fulfillment and fast delivery E-Commerce Mgmt. staying in control of it all! 10
  • 11. A brief (3-step) journey into the complexity of an international e-commerce project
  • 12. Step 1: Research Where is the greatest potential for your product? (countries, target groups) How strong is your local brand awareness? Do you have any local presence and experience? What are your strongest competitors and how do they sell? Are there explicit local patterns in customer behaviour? Defining a general strategy and adapting it locally 12
  • 13. Some Examples for Differences in Local Behaviour France: _ buy 3 for the price of 2 promotions are a must _ some extra in the parcel also might not hurt UK: _ online marketing is expensive _ will you be able to establish a profitable business? Poland: _ Polish love price reductions _ they come into your shop quickly, but are away as fast Austria: _ is fairly easy to handle if you have a German shop _ but donʻt treat the Austrians like Germans! 13
  • 14. Step 2: Build the Platform Typical requirements for an international e-commerce plattform: _ one inventory per region, different pricing per country _ multi-lingual, multi-tax ... order process _ different promotions for each country _ different risk profiles / risk checks and payment methods _ different delivery conditions (providers, timings, fees) 14
  • 15. Already Running a Website? Options For Your Platform Strategy 2 Options Enhance Existing Platform Rollout on New Platform Rollout Consolidation more planning effort, higher risk more flexibilty, more speed 15
  • 16. Step 3: Rollout and Optimisation Step By Step: _ A good plan would not hurt! _ Keep your eye on details _ Donʻt do everything at once _ Best practice: Complete each rollout every 1-3 months _ Watch your KPIs closely and regularly _ Listen to your customers _ Be ready for local measures to push your business 16
  • 17. E-Commerce Outsourcing is an Option For Many E-Com Online Marketing applying the variety of possibilites Online Storefront strong brand-aware and inspiring platform Product Presentation great quality for the best product experience Fulfillment handling orders quickly and effienciently E-Commerce Mgmt. managing the product catalogue and all processes 17
  • 18. A few words on next commerce
  • 19. The Offer: One-Stop E-Commerce „From Google To Home Delivery“ Online Marketing Online Shop Fulfillment Our Mission: creating true fans for your brand 19
  • 20. next commerce - Company Profile • next commerce is made to make established brands successful in their e-commerce mission. • With next commerce we have a new business and IT platform to share 13 years of e-commerce knowledge at SinnerSchrader. • We select the best-of-breed components and align them for building and running a state-of-the-art e-commerce solution. • We get paid by results, not efforts. 20
  • 21. next commerce as part of the SinnerSchrader group SinnerSchrader AG SinnerSchrader Dtld.. Spot Media AG S2 Media/Adbalance next commerce GmbH Interactive Agency Performance Marketing E-Commerce Outsourcing Interactive Agency Core Business Production Online Marketing E-Commerce Full-Service Agency: Content Agency Performance Full Service Consulting, (since 01/2008): Marketing 2.0: E-Commerce Experience Design, E-Commerce, Leading Profiling, Management, Concept, Catalogue Targeting & General Technology, Management, Ad Management Contracting Hosting E-Mail Marketing Technology 21
  • 22. Our Mission: Putting the Consumer E-CRM Fulfillment Sales / Potential Revenue Online Marketing Online Shop 22
  • 23. For further discussion, please find us in the web.mobile forum! Moritz Koch Managing Director next commerce GmbH m.koch@next-commerce.com 23