1. SUCCEEDING IN THE
EUROPEAN ECOMMERCE
MARKET
How to find the balance between localization and standardization
Webwinkel Vakdagen Utrecht, 23.01.2013

2. Something about me…
… 32 years old
… 5 years at Hermes Fulfilment
• International Business Development Manager
• Key Account Manager
… Primary Focus:
• International expansion of online business
– Europe, USA, China and Russia
• International Fulfilment & Partner management
• International eCommerce projects
… Clients:
• Home Shopping Europe (HSE 24)
• Wolford AG
• MUJI Deutschland GmbH
• Chal-Tec GmbH
• Bombay Brands LLC
2

3. Did you know that…
... Europe has 740 million population.
... Europe is the world’s largest
eCommerce market based on total online
revenue.
... internet retail sales volume reached
€126.76 billion in 2012 – grew by +14.12%
from 2011.
... there are 28 other currencies beside of
the Euro.
... the United Kingdom, France and
Germany dominate the internet retailing
market, accounting for 62.65% of total value
sales.
3

4. Capture the Potential of Internet Retailing...
4 Source: Euromonitor Jan 2013

5. Each European Market is Different. Take a Look at…
…Language
… Currency
… Common service times for call centers
… Common delivery lead time
… Preferred payment methods
… Sales Tax
… Delivery quota
… Exclusion of delivery
… Returns regulations
… Seal of Quality
…
5

6. Your customers want to pay with…
UNITED KINGDOM FRANCE
Credit Card 79%
Credit Card 40%
E-Payment 21%
Debit Card 35% Voucher 12%
21% Cheque 12%
PayPal Direct Debiting 9%
Others 4% e-carte bleue 8%
0% 20% 40% 60% 0% 50% 100%
GERMANY ITALY
Invoice 52% 69%
Credit Card
Payment in Advance 37%
Direct Debiting 25% E-Payment 11%
PayPal 23% Cash on Delivery 9%
Credit Card 21%
Bank Transfer 7%
sofortüberweisung.de 8%
Cash on Delivery 1% Others 4%
0% 20% 40% 60% 0% 20% 40% 60% 80%
6

7. Payment Methods – must have vs. nice to have
Σ
Credit Card
Credit Card x x x x x x x x x 9
PayPal x x x x x x x x x 9
Invoice x x x x x 5
Online Banking x x x x 4
Cash on Delivery x x x 3
Direct Debiting x x 2
sofortüberweisung.de x 1
Debit Card x 1
e-carte bleue x 1
Cash at Place of Coll. x 1
7

8. From the Legal and Consumer Behavioral Perspective
– the large differences in Europe
Shipping Right of Accepted Special Remarks
VAT
threshold Cancellation Shipping Costs
70.000 GBP • Website must be accessible for
20% 7 days 3 – 4 GBP
(= 85.473 €) handicapped people.
• Widespread usage of
19% 100.000 € 14 days 4–6€
parcelshops and packstations
• French as language is legally
19.6% 100.000 € 15 days 5.95 €
required for „Terms and Conditions“
• Storage costs for unsuccessful
21% 35.000 € 10 days 5.95 €
shipments paid by customer
• No title in the communication,
23% 35.000 € 14 days 4–6€
informal communication is common
320.000 SEK 40 – 60 SEK • Usage of ID-number for online order
25% 14 days
(= 35.000 €) (= 4.50 – 7.00 €) • Opt-out for written ads
280.000 DKK 49 – 60 DKK • Return costs paid by customer
25% 14 days
(= 35.000 €) (= 6.50 – 8.00 €) • 50% delivery by Local Post
49 – 60 NOK • Special treatment of Spitzbergen
25% - 14 days
(= 6.00 – 8.00 €) • 95% of population (15-75y) buy online
1.140.000 CZK • Sunday is a business day
20% 14 days 4–6€
(= 44.760 €) • Up to 8 local carriers (e.g. alza.cz)
8

9. Shopping with Confidence - Pick the right one…
Thuiswinkel Waarborg - Netherlands La Fevad - France
 Highly appreciated by consumers for  More than 500 membering companies
certified quality standards (e.g. data security,  Recommended by the press and various
payment process) shopping advisors in France
 complaint handling in case of disagreement
with the customer
Trusted Shop Guarantee - International Euro Label - International
 Combination of Certification, Seal of  A cooperation of various national providers
Approval, Customer Service and Buyer of internet certification
Protection  Compliance of the European Code of
 Allows customer evaluations Conduct as prerequisite
9

10. Summing up localization and standardization…
OPPORTUNITIES
CHALLENGES
 Capture the high sales potential ? High complexity
 Be the second, if not the first ? Very heterogenic markets
 Get higher brand awareness ? Controllability is lower than at home
 Relatively mature business environment ? Lack of transparency & experience
 Simple solutions in the market ? Cultural differences
10

11. …We can help.

12. Integrated Supply Chain Solution – The One for Europe.
The entire supply chain from a single source: from modular concept to integrated solution
SOURCING & TRANSPORT
E-COMMERCE DISTRIBUTION
PRODUCT LOGISTICS
Product Development International Web Shop &
Parcel Delivery
& Sourcing Freight Forwarding Online Marketing
Hermes Hermes Hermes NexTec Hermes Logistik Gruppe
Otto International Transport Logistics Deutschland
Fulfilment & Hermes Logistik
Back-end Services
Inspection & Hermes Ltd. UK
Certification
Hermes Fulfilment Hermes Italia S.p.A.
Hermes B2C Russia OOO
Multi-Channel
Hansecontrol Group Fulfilment
2-Man-Handling
Shipments
ADD/UP
Connected Channels
Hermes Einrichtungs
Service
12

13. Wolford – a Success Story.
WEBSHOP 14 online shops in Europe and
SERVICE 1 online shop in the US.
Customer Service in
CALL CENTER 9 languages
7 integrated
PAYMENT & RISK payment methods
All shipments to Europe
WAREHOUSING 6 stored, picked & packed in
RETURNS one DC.
Delivery to customers in 15
DISTRIBUTION countries with 3 international and
local carriers.
FINANCE & Automated system processing of
ACCOUNTING 5 different currencies.
13

14. https://www.hermesworld.com
http://www.ecommerce-global.de