Post on 15-Jul-2020
© CLAVIS INSIGHT
WINNING IN THE UK E-COMMERCE ENVIRONMENT
EMEA FORUM 2015JEREMY RADCLIFFE
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WINNING IN THE UK E-COMMERCE ENVIRONMENT
• State of the Nation
• The Story so Far……
• Preparing Today, To Win Tomorrow
• Summary
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A BRIEF HISTORY OF TIME….
Grandmother Jane Snowball, 72, from an armchair in her Gateshead home in May 1984.
Used a television remote control to order the groceries from her local supermarket.
It was an order for margarine, cornflakes and eggs.
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STATE OF THE (ECOMMERCE) NATION- GROWTH
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China
$ billions
$ billionsHigh incidence today,
more growth projected.
Growth of online grocery buying is ahead of bigger markets, smaller geographical size aids ‘last mile’ and click and collect developments.
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CHANNEL SHIFT, SAME HABITS?
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STILL ABOUT CONVENIENCE, YES….BUT….
Time-poor shoppers equipped with technology are increasing demand for online shopping.
New delivery services such as Shutl, Instacart and Uber are supporting these habits where retailers are not moving quickly enough to satisfy demand.
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LIFE-STAGE DISRUPTION: AN OPPORTUNITY
“There are, however, some brief periods in a person’s life when old routines fall apart and buying habits are suddenly in flux. One of those moments — the moment, really — is right around the birth of a child.”
Charles Duhigg, Author of “The Power of Habit”
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GENERATION EXHAUSTED!
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WHO’S LEADING THE CHARGE IN ONLINE SHOPPING
20%No Children
Top Reasons for Shopping for Groceries Online
“It is convenient to have groceries delivered to my front door”
“I can shop online at any time”
“I don’t have to carry heavy items home”
“Shopping online saves me from making a trip to the
store”
“Shopping online helps me stick to a budget “
“Shopping online saves time“
47%
Parents with Children Under 3
32%
Parents with Children 3-17
15%Empty Nesters
Source: Kantar Media Compete 2012, UK Panel
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THE CONSUMER AT THE HEART OF ECOMMERCE
Being convenient isn’t just about ecommerce, technology and design…..
When it’s done well it’s integrated into every touch point.
Nescafe: Making a virtue of convenience….
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NOT SUITED TO ONLINE, OR UNDER-DEVELOPED?
Source: TGI UK 2012
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CLOSER TO IMPULSE?... (FORTUNATELY;-)
Cinnabon offering same day delivery in the London area.
Distribution and fulfilment are increasing in speed and scope.
Perishables are now following where other verticals have already trodden.
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TOPPING UP THE SHOP, FAST FULFILMENT
Where consumer needs are un-met, new businesses are being created to serve demand.
Single vertical retailers and taking advantage of ‘top up’ shopping.
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THE STORY SO FAR….KEY THEMES
Global growth continues unabated, UK still has room for growth.
Convenience of the channel is helping facilitate growth through design and tech advances.
Parents leading the charge with online grocery shopping.
No category is immune to going online!
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PREPARING TODAY, TO WIN TOMORROW…
MULTI-CHANNELCONTENT MULTI-LOCATION
BRILLIANT BASICS
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ECOMMERCE: IT’S A BIT LIKE GARDENING.....
If you leave it un-attended for too long, it becomes overgrown…
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BEAUTIFUL BASICS……
‘Always On, Always Right’
‘We endeavour to be ‘Always On, Always Right’ – Sean
Ferguson, Digital Activation, Molson Coors UK
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INTERNAL ALIGNMENT + METRICS AID SUCCESS
Organisational Engagement & Alignment
Source: CapGemini, CEB 2013
Digital Transformation Trends Briefing Page 7
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage
and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2014
3. Culture “Culture eats strategy for breakfast,” management guru Peter Drucker famously said. This quote
sums up the need for a cultural shift to allow for the business change required in digital
transformation.
Attendees to Econsultancy’s Digital Transformation Roundtable event consistently spoke of the
challenges of extending a digital mindset throughout the organisation. Those in large
organisations or those in heavily regulated industries felt this most acutely – and expressed deep
frustration at the inability to effect broad change in their organisations.
Capgemini’s matrix of digital maturity highlights the risk of complacency. In the analysis of
186 companies, those that were digitally mature “digirati” (have effected cultural change
alongside adopting digital) saw higher profitability and revenue. By contrast, “fashionistas” (those
that adopt digital but fail to make the corresponding cultural and management changes) suffered
declines in profitability.
Source: Capgemini Consulting
Roundtable attendees spoke of the difficulty of shifting a company culture. Many spoke of the
challenge of combining the culture of digital teams with the main office. One participant lamented
that he needs to keep a suit at the office to don for meetings at head office.
FASHIONISTAS DIGIRATI
BEGINNERS CONSERVATIVES
Category ManagersCustomer Teams
Shopper MarketingDigital Managers
eComm ManagersBrand Teams
Brand ActivationPrice & PromotionsR&D / Supply Chain
Optimize Range & Distribution
Category & Brand Growth
Effectively Market Brands Online
Maximize Brand Equity,
Communication and Performance
Availability
Range & Assortment
Search
Content Integrity
Price/Media Evaluation
Ratings & Reviews
Role Objective Metrics
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MANY LEVERS AVAILABLE TO CATEGORY MANAGERS
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IT’S VERY TEMPTING TO PULL….
you may not have visibility of sufficient data (and all lever-types) for each retailer to help influence your digital investments.
…but
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USE DATA TO FOCUS INVESTMENT & EFFORT
What do manufacturers have most control over in the long term and short term?
Taxonomy / Changes
Media & Content Investment
ROI?
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TAKE ADVANTAGE OF RICH CONTENT OPPS
Richer content gives brands and opportunity to gain more data about their consumers.
Give / Get – The more compelling to better.
Define compelling content by testing amongst a small representative group.
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LEVERAGE ADJACENCY OPPORTUNITIES
Parents with children under 3 are:-
Significantly more likely to buy groceries and home furniture online
Significantly more likely to buy baby and children's products online
Spend twice as much time on Automotive websites
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Segm
ent
X 2
X 4
X 2
Source: Kantar Media Compete UK 2012
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DIRECT TO CONSUMER: A DATA OPPORTUNITY
Manufacturers have an opportunity, with the right ‘services’ vehicle to build direct sales with consumers.
Learning more about your consumers preferences.
DTC channels also help build brand values on the path to purchase.
‘Buy Now’ expedites lead generation and purchase.
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MARKET PLACES PROVIDE ADDITIONAL REACH
Marketplaces are the malls of ecommerce.
Great opportunities for trusted brands.
Risks for manufacturers, Less control over how a brand is presented.
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BRANDED APPS INCREASE SHOPPER ENGAGEMENT
Some brands have tied everything together using mobile.
Useful to the ‘sufferer’.Capture’s data with permission.Location ‘Aware’.Purchase Ready.Links to both On AND Offline Stores.
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ECOMMERCE EVERYWHERE – NOT JUST TRADITIONAL
Click & Collect is Growing
Amazon & eBay using London Underground and Argos as pick up points
Retail pick up is not limited to traditional retail outlets
Measuring delivery from a single point only is only part of the picture.
Building ‘Click & Collect’ around the shopper rather than vice versa
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PUTTING THE CONSUMER AT THE HEART OF ECOM
Building ‘Click & Collect’ around the shopper rather than vice versa
Pre-Order Baby Milk to be collected afterairport security clearance
Brands need to protect their reputation and image in multiple places
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Convenience Yes…but understand who it’s convenient for.
Don’t under-estimate the potential for categories to move online.
Getting the Basics right…it’s like gardening, needs constant attention.
The ‘Digerati’ Organisation, Linked to Increase Revenues.
Content can be both engaging AND an opportunity to learn about your consumers via data.
Location, location, location: ‘me-commerce’ can activate the consumer ‘anywhere’.
WHAT DOES ALL THIS MEAN TO BRANDS TODAY
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THANK YOU!