Growth hacking-in-ecommerce. Zalando & ASOS cases
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How to achieve growth in e-commerce ? Growth hacking Zalando Asos Case study © H. Isaac 1
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This presentation deals with the growth issue in e-commerce. It describes two different strategies implemented by two leading european fashion e-commerce company Zalando and Asos. Business model analysis, but also, internationalization, financial perspective included
Transcript of Growth hacking-in-ecommerce. Zalando & ASOS cases
How to achieve growth in e-commerce ?
⏐Growth hacking⏐ Zalando ⏐ Asos ⏐Case study
© H. Isaac
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Growth issues in e-commerce
• Growth is a very important strategic issue – Break-even point requires high volume (fixed costs issue) – Volume increases profitability by enabling purchasing
price reduction (negotiating power gross margin)
• How to achieve growth ? – Diversification (i.e. catalog extension) – Internationalization
• From local to Europe • Global from scratch
– Economy of scale generation – Marketplace
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Amazon growth model
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Source: Amazon
A european strategy Source: all data from Zalando public financial statements
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Zalando Business Model
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Zalando Business Model
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Web site
Mobile (40% MAU)
Shop (Berlin)
Private Label
Online marketing
Data-driven
Sourcing
IT platform
Warehouse
Brand
Intl payment platform
Third party fashion brands
(data driven relations)
11 logisitics
partners
Marketing costs 13,6% Fulfillment costs 23,4%
14 european countries Women
Men
150 000 styles
1 500 brands Local Global Fast
Private Label
High Avaibility Better selection
Free delivery &
returns
Personalized shopping
experience
Gross Margin 40 to 60 % Net margin 1,2 %
Steps in business development
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© H. Isaac Source: Zalando
European growth strategy
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© H. Isaac Source: Zalando
Market size⏐ Brand awareness
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© H. Isaac Source: Zalando
Zalando Key metrics
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53,2% 41,5%
+11,5%
37%
Increased Brand awareness & quality of execution increase
Repeat purchase
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Economy of scale generation⏐1
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© H. Isaac Source: Zalando
Economy of scale generation⏐2
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© H. Isaac Source: Zalando
Marketing costs ⏐Loyalty
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© H. Isaac Source: Zalando
Group EBIT Margin
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© H. Isaac Source: Zalando
Zalando Key Success Factors
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© H. Isaac Source: Zalando
Zalando Growth’s vision
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© H. Isaac Source: Zalando
Zalando: Concluding remarks
• High level of economy of scale – Fulfillment capacities – IT platform
• Diversification in assortment • European markets extension • Strong branding that reduces Customer cost of
acquisition • Quality in operations execution that drives customer
loyalty Ø High level of scalability
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ASOS Business Model
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A global strategy Source: all data from Asos public financial statements
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A worldwide strategy
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Source: ASOS
ASOS Business Model
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9 Web sites
Mobile (46% MAU)
Sourcing
Warehouse
800 Third party brands
Tmall (China)
Marketing costs 5,7% Fulfillment costs 22%
Worldwide (200
countries) 20
somethings Women
75 000 items Newness
Gross Margin 49,5% Net margin 4%
Private Label (50%)
As seen On me Recommendations
Rewards Personal stylist
ASOS Internationalization
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Source: Javelin Group, Planning for Europe, eCommerce futures, 5th February, 2014
A worldwide expansion
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Source: ASOS
International strategy
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Source: Javelin Group, Planning for Europe, eCommerce futures, 5th February, 2014
A difficult path to master operational costs
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Source: ASOS
ASOS Key metrics
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Source: ASOS
ASOS Vison of Growth strategy
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Source: ASOS
Growth : audience monetization
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ASOS: concluding remarks
• From UK to Worldwide sales • Categories extension • Opening China market with Tmall
• Marketplace opening
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