Considerations for e-commerce localisation

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Slides from e-commerce Meetup, Dublin, 3. February 2014, www.evorsprung.com

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Considerations for e-commerce localisation

  1. 1. e-Commerce abroad: What’s so different and how to best approach it Susanne Dirks sudirks@evorsprung.com Ph. 086-2375131
  2. 2. Introduction and background Susanne Dirks Commercially astute Technologically sound Culturally sensitive •  Commercially astute –  Several international management, consulting, and business research, development, and setup roles in MNC environment for last 15+ years –  Diploma, Business Innovation/Development (Distinction) •  Technologically sound –  MSc, IT (Knowledge-Based Systems) –  BSc Hons (1st Class), Information Technology –  Diploma (Distinction), Internet Marketing & Online PR –  Diploma, Web Technologies •  Culturally sensitive –  Life split 50/50 between Ireland and Germany (plus some time in UK ) –  Multinational and multicultural work environment for last 20 years –  Qualified translator (German/English)
  3. 3. Agenda •  Why go international ? The opportunity •  Considerations: What to watch out for during ecommerce internationalisation •  Action: What are the key action areas for establishing a successful web presence abroad e-Vorsprung Consulting
  4. 4. Reality or Hype ?
  5. 5. Reality – a typical example Example: purchase.ie 3.50% 93.70% 6.30% UK&US 2.80% e-Vorsprung Consulting Ireland Other
  6. 6. Agenda •  Why go international ? The opportunity •  Considerations: What to watch out for during ecommerce internationalisation •  Action: What are the key action areas for establishing a successful web presence abroad e-Vorsprung Consulting
  7. 7. e-Commerce abroad means operating in a different environment Business     Environment   Socio-­‐cultural   Environment   Technology     Environment   Legal     Environment   e-Vorsprung Consulting
  8. 8. Assessing the opportunity: “Ladies Shoes” Monthly search volumes in Google: Ladies shoes Women shoes Damenschuhe Frauenschuhe Ireland 320 50 UK 18,100 2,400 US 4,400 14,800 Germany 90 110 22,200 390 Austria 10 10 880 30 Source: Google Keyword planner, 27.1.2014 ⇒  Know your market ⇒  Know their lingo Question 1: Is there sufficient demand for your product/s in your target market/s ? e-Vorsprung Consulting
  9. 9. Assessing the competition: “Ladies shoes” Ireland (google.ie) No top ads Search: (in native language) Germany (google.de) 2 ads on top Question 2: Who are you competing with in your selected foreign target market/s ?
  10. 10. Re-evaluating your USP Question 3: What is your USP for selling in your new target market/s ? Source: IPC Cross-Border e-Commerce report e-Vorsprung Consulting
  11. 11. The impact of a different socio-cultural environment on e-commerce abroad Business   Environment   Socio-­‐cultural   Environment   Technology     Environment   Legal     Environment   e-Vorsprung Consulting
  12. 12. The cultural environment directly determines the (online) marketing approach •  Culture is … –  “a universal orientation system typical of a society, organisation or group” –  Influences the way all of its members perceive, think, value, act : •  •  •  •  “The web is not a culturally neutral medium … a website has to be designed for a targetted customer segment … Local adaptation should be based on a complete understanding of a customer group’s culture …” Attention Interest Desire Action e-Vorsprung Consulting
  13. 13. Many users only perceive, think, and value only in their own language Question asked: “Do you use a language other than your own to read/watch content on the Internet ?” Considerable country variances ! Also note: -  Level of usage -  Situations for usage e-Vorsprung Consulting
  14. 14. At the most basic level, cultural localisation is about local standards and conventions •  Important conventions for cultural web presence localisation include: –  Use of colours –  Use of formats –  Use of measurements –  Use of symbols –  Use of icons –  Use of pictures –  Use of currency e-Vorsprung Consulting
  15. 15. But culture goes deeper and impacts thinking (“value”) and behaviours (“act”) Hofstede’s cultural dimensions •  Power distance –  Attitude of the culture towards these inequalities amongst its members •  Individualism –  Degree of interdependence a society maintains among its members •  Masculinity/femininity –  Main motivations in people, wanting to be the best (masculine) versus liking what you do (feminine). •  Uncertainty avoidance –  Extent to which people feel threatened by ambiguous or unknown situations •  Long-term orientation –  Extent to which a society shows a long-term versus a short-term point of view of the future e-Vorsprung Consulting
  16. 16. Comparison: Ireland - Spain PDI = Power Distance IDV = Individuallism MAS = Masculinity/Femininity UAI = Uncertainty Avoidance LTO = Long-term Orientation e-Vorsprung Consulting
  17. 17. Culture’s influence on purchase value and speed of decision Business, France Business, Japan e-Vorsprung Consulting
  18. 18. The impact of different technology usage on e-commerce abroad Business     Environment   Technology     Environment   Socio-­‐cultural   Environment   Legal     Environment   e-Vorsprung Consulting
  19. 19. Successful web presence abroad requires an understanding of technology usage patterns •  •  •  •  •  •  •  •  Technology infrastructure Preferred search engines Approach to search Preferred websites / blogs Preferred social media platforms/channels Preferred online directories Preferred price comparison engines Online usage patterns e-Vorsprung Consulting
  20. 20. Example: Different preferred retail sites e-Vorsprung Consulting
  21. 21. The impact of different legal and/or regulatory requirements on e-commerce abroad Business   Environment   Socio-­‐cultural   Environment   Technology     Environment   Legal     Environment   e-Vorsprung Consulting
  22. 22. Legal considerations for web presence abroad •  Online legal aspects different from country to country include areas such as: –  –  –  –  –  –  –  –  –  Privacy and data protection legislation Advertising legislation Brand legislation Consumer legislation Copyright Terms and conditions Liability Domain names Website content e-Vorsprung Consulting
  23. 23. Example: Naming of the “Buy” button in Germany •  Only FOUR legally compliant names: •  Examples of legally non-compliant names: e-Vorsprung Consulting
  24. 24. Agenda •  Why go international ? The opportunity •  Considerations: What to watch out for during ecommerce internationalisation •  Action: What are the key action areas for establishing a successful web presence abroad e-Vorsprung Consulting
  25. 25. 4 key action areas for a successful ecommerce abroad •  Target market research •  Online Marketing Strategy 1 4 ...getting ready for them ...getting them to find you ....getting them to do lasting business ... getting them to engage with you •  Channnels •  Resources •  Processes •  Domain strategy •  Search Engine Marketing •  Social Media 2 3 •  Content •  Culture •  Language e-Vorsprung Consulting
  26. 26. Step 1: Define your online strategy for the new market •  Do target market research –  Offline market –  Online market •  Review and refine your online value proposition for your target market –  Demand –  Feasibility –  Brand –  Clear competitive differentiation •  Online content and design •  Online visibility e-Vorsprung Consulting
  27. 27. Barriers to Cross-Border e-Commerce Source: IPC Cross-Border e-Commerce report e-Vorsprung Consulting
  28. 28. Kerrygold Ireland value proposition as per Irish home page e-Vorsprung Consulting
  29. 29. Kerrygold Germany value proposition as per German home page e-Vorsprung Consulting
  30. 30. The impact of Kerrygold’s German value proposition on search results Searching for “Gesunde Butter” In www.google.de => SERP 1 for Kerrygold e-Vorsprung Consulting
  31. 31. Step 2: Make sure your target customers can find you online •  Domain Strategy –  Domain name –  Domain URL structure •  Search Engine Marketing –  Search engine optimisation •  Onpage •  Offpage –  Search engine advertising –  Social media optimisation e-Vorsprung Consulting
  32. 32. Domain name: Name that is meaningful and easy for target market If possible, a search-friendly domain name •  For search engines and target market users •  Meaningful in native language –  Example (Germany): www.franchise-direkt.com –  Example (Germany): www.promobecher.de •  Keyword-friendly in native language •  Easy to remember •  Easy to spell •  No double meaning e-Vorsprung Consulting
  33. 33. Domain URL Structure Options •  Option 1: Country-code TLD (ccTLD) –  Example: www.tricel.fr •  Option 2: Subdirectory –  Examples: www.combilift.com/de, www.keenan.com/de-de –  Avoid non-standard subdirectories:/ger,/deutsch •  Option 3: Subdomain –  Example: www.French.hostelworld.com e-Vorsprung Consulting
  34. 34. Search engine marketing for new market •  Keywords for SEO and SEA for target market Keywords !!! Search Engine Advertising Search Engine Optimisation Social Media Optimisation –  Value proposition –  Target market language –  Used by target market online users –  Differentiating •  Off-page SEO for target market •  Social Media for target market e-Vorsprung Consulting
  35. 35. Good keywords are not only translated, but must also reflect native language search patterns 79 1 Also watch: -  Language and grammar -  Different thinking patterns Source: Google Trends on 103372013, Germany, past 12 months e-Vorsprung Consulting
  36. 36. Example Kerrygold: Good keywords express local differentiators Keyword Irish search result (google.ie) German search result (google.de) Page 1 (Place 5) Page 5 * healthy butter (gesunde butter) Not found (on first five pages) Page 1 (place 6) ** Irish butter (irische butter) Page 1 (Place 1) Page 1 (place 2) ** butter • Organic search results only, Google ads shows earlier ** First product in the listing e-Vorsprung Consulting
  37. 37. Step 3: Make sure your target market customers buy into you online •  Appropriate and local language content •  Cultural adaptation of web presence •  Making your web presence looks local •  Legal requirements for web presence e-Vorsprung Consulting
  38. 38. Different countries prefer different formats of content e-Vorsprung Consulting
  39. 39. Website translation is more than just translation •  •  •  •  •  •  •  •  •  Translation quality Avoid: Translation scope - Google Translate & Co! -  Unqualified translators Translation updates -  Mixed-language approaches Style of translated text Formatting of translated text Price Consistency of translation question: What does Keyword focus on translated text content Non-text content -> videos consist of ? Quality assurance e-Vorsprung Consulting
  40. 40. Barriers to Cross-Border e-Commerce Source: IPC Cross-Border e-Commerce report e-Vorsprung Consulting
  41. 41. Tackling uncertainty avoidance and building trust: Customer service support in forms of FAQs Keenan, France 3DIssue, Germany e-Vorsprung Consulting
  42. 42. Tackling uncertainty avoidance and building trust: Different forms of customer service support Vitalograph e-Vorsprung Consulting e-Vorsprung Consulting
  43. 43. Tackling uncertainty avoidance and building trust: Scientific/academic evidence helps build trust Keenan Kerrygold e-Vorsprung Consulting
  44. 44. Tackling uncertainty avoidance and building trust: Displaying seals of quality •  Online seals of quality recommended by D21 initiative for Germany e-Vorsprung Consulting
  45. 45. Making your web presence look local •  German domain name and/or German ccTLC •  Providing local payment options •  Local contact options, e.g. Address/phone number •  Local case studies •  Seals of approval by local organisations/bodies •  List of local events •  List of local websites e-Vorsprung Consulting
  46. 46. Looking local: Local approval of quality counts more Aldi Germany Aldi Ireland e-Vorsprung Consulting
  47. 47. Germans’ preference for payment options Preferences  for  payment  on  the  Internet  (averaged):     e-Vorsprung Consulting
  48. 48. Example: Country-specific payment types Country Country-specific payment type Benelux Bancontact / Mister Cash IDEAL France 4etoiles, Carte Bleu, Carte Aurore, Cofinoga United Kingdom Maestro UK Italy Carta PostePay, CartaSi / Sipay Austria Eps-Online-Überweisung Paybox Switzerland myOne, Postfinance Card / e-finance Scandinavia eDankort e-Vorsprung Consulting
  49. 49. Looking local: Meeting legal requirements and conventions Vitalograph e-Vorsprung Consulting
  50. 50. Step 4: Make sure you can do business with the your new target market customers •  •  •  •  •  Channels Communication Resources Skills Processes e-Vorsprung Consulting
  51. 51. Barriers to Cross-Border e-Commerce Source: IPC Cross-Border e-Commerce report e-Vorsprung Consulting
  52. 52. Channel strategy for new markets Awareness • How do you raise awareness for your company’s products and/ or services ? Evaluation • How you do help customers evaluate your value proposition ? Purchase Delivery • How do you allow customers to purchase specific products and/ or services? • How do you deliver your value proposition to your customers ? Aftersales • How do you provide postpurchase support ? Source: Based on Alex Osterwalder: Business Model Canvas e-Vorsprung Consulting
  53. 53. Question: How do you deal with foreign language enquiries or comments ? 74.7 % say availability of after-sales support in own language influences their buying decision e-Vorsprung Consulting
  54. 54. Thank You ! Susanne Dirks MSc BSc sudirks@evorsprung.com ie.linkedin.com/ie/susannedirks Commercially astute Technologically sound Culturally sensitive Best Practice Guide available on EI website: www.enterprise-ireland.com/localisation4germany

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