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Go Germany -
Conquering the German Online Market
as an International Brand

Frankfurt, 2nd Sportwear International E-Fashion Summit 2011
A brief introduction
to SinnerSchrader
SINNERSCHRADER AT A GLANCE


                      Top-10 digital agency in Europe
                          (Forrester Digital Agency Review 2011)




                 Strong focus on e-commerce – since 1996



       400+ talented people: Consulting/Creation/Technology 25/25/50



             Offices in Hamburg, Berlin, Hanover and Frankfurt



    Owner-managed, independent, publicly listed, growing fast & profitable
REVENUES / EARNINGS 1996 - 2011

                                                                                                           30,9




                                                                                                    23,9

                                                                                             20,9

                                                                                      18,3

                                15,7
                                                                               14,2
Net revenue in mill. €                 13,0                             13,2
                                                                12,2
                         11,4                 11,3      10,8




               4,0

       1,5
0,3


                                                     EBITA in mill. €


96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
SINNERSCHRADER GROUP


                                      GROUP




     ADVERTISING       DIGITAL STRATEGY
                                                     CRM
                      WEB DEVELOPMENT
                                               E-MAIL MARKETING

   mediaby
                         TECHNOLOGY
                                              CONTENT PRODUCTION
                          ANALYTICS
  PERFORMANCE MEDIA




      TARGETING                                  E-COMMERCE
                        NEW SCREENS
   MEDIA TECHNOLOGY                              FULL SERVICE


  DIGITAL MARKETING   DIGITAL MARKETING       DIGITAL MARKETING
  CAMPAIGNS           PLATFORMS                PROGRAMS
OUR FASHION CLIENTS
EXPERIENCE IN GLOBAL E-COM ROLLOUTS




Globale rollout and maintenance of international online stores
of all luxuary brands by PPR.
BOTTEGA VENETA
STELLA McCARTNEY
STELLA MCCARTNEY
The German online buyer
Successful e-commerce in Germany
Market entry strategies
THE GERMAN ONLINE MARKET IS THE
LARGEST IN EUROPE - WITH RATHER LOW
ONLINE SPENDINGS PER CAPITA




                                       (6M)




Source: DIBS E-Commerce Survey, 2010
GERMANS LIKE TO BUY ONLINE -
BUT NOT FROM FOREIGNERS
59% of individuals use e-commerce (16-74 years)   Only 8% buy goods from foreigners




Source: Eurostat, 2010
HEARSAY ABOUT
THE GERMAN ONLINE SHOPPER

                                  Always looking for a
  Very price sensitive
                                  %discount

        Complaining very often
                                       Causing high
                                       return rates
Strong in comparing      prices
                            Not too fashionable
THE REALITY: GERMAN ONLINE SHOPPERS
SEEM TO BE ALWAYS LOOKING FOR THE
BEST OFFER




  Keeping your online store highly accessible is a must!




Source: Oracle European Consumer Views of E-Commerce, 2010
A GERMAN SPECIALTY: HIGH ACCEPTANCE
OF INVOICE PAYMENT, ESPECIALLY IN
FASHION E-COMMERCE
                                              From our experience:

                                       Acceptance of invoice payment
                                          up to 85% of all orders
                                            in individual online stores!




Source: DIBS E-Commerce Survey, 2010
THE BIG QUESTION: TAKE A CENTRALIZED
OR A LOCAL APPROACH?

                              Planning your entry to the
                            German e-commmerce market


    Sales potential low /                                  Sales potential high
              uncertain



  Focus on a centralized approach            Be courageous and go for the local
     keeping extra costs low!                 approach, you will be rewarded!



   As stated above, the German online market is one of the largest in Europe.

             That‘s why you think twice about being courageous.
COPING WITH THE CHALLENGES LOOKING
AT YOUR E-COMMERCE SETUP

                                                                       A global e-com platform
                                            Marketing                  is a good starting point!
                                    (adserving, retargeting, search)




           Content                   Frontend (E-Shop)                  CRM / Community
    (product data, fotos, cms)                                         (customers, segments, social)




      Warehousing                            Backend                    Customer Service
  (inventory, shipments, returns)                                          (inbound, outbound)




                                           Financials
                                    (PSP integr., bank, accounting)
LOCALIZING EVERY COMPONENT OF YOUR
 E-COMMERCE INGREDIENTS
                                                  Efficiency: Finding the
                                                   right marketing mix


 The basics: Localized                                                                            Engagement: Talk the
                                                               Marketing
   content is a must                                    (adserving, retargeting, search)       language of your customers



                        Content                        Frontend (E-Shop)                   CRM / Community
                  (product data, fotos, cms)                                               (customers, segments, social)




                   Warehousing                                  Backend                    Customer Service
                (inventory, shipments, returns)                                                (inbound, outbound)




Speed: Consider using a                                        Financials
                                                        (PSP integr., bank, accounting)         Credibility: Use native
local distribution centre                                                                       speakers to represent
                                                                                                     your brand

                                                    Convenience: Adapt to
                                                    local payment methods
SUMMARY: A STEP-BY-STEP GUIDE
TO ENTER THE GERMAN ONLINE MARKET


 1.   Screen your market potential and your competitors in the German market,
      make sure to be very clear on your regional USPs.



 2.   Build a separate business plan for your market entry strategy
      taking into account all regional characteristics (such as tax and return rates).



 3.   Find local e-commerce specialists to localize your content,
      your marketing strategy and your e-commerce processes (like payment).



4.    Set up the German roll-out as a separate project on your global e-com platform,
      beware of interference with other projects on your e-com roadmap.



 5.   Launch courageously and keep close track on your local KPIs,
      focus on payment and returns.
Thank you!
Moritz Koch, Managing Director

http://www.next-commerce.com/

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Go Germany - Conquering the German Online Market 
as an International Brand

  • 1. Go Germany - Conquering the German Online Market as an International Brand Frankfurt, 2nd Sportwear International E-Fashion Summit 2011
  • 2. A brief introduction to SinnerSchrader
  • 3. SINNERSCHRADER AT A GLANCE Top-10 digital agency in Europe (Forrester Digital Agency Review 2011) Strong focus on e-commerce – since 1996 400+ talented people: Consulting/Creation/Technology 25/25/50 Offices in Hamburg, Berlin, Hanover and Frankfurt Owner-managed, independent, publicly listed, growing fast & profitable
  • 4. REVENUES / EARNINGS 1996 - 2011 30,9 23,9 20,9 18,3 15,7 14,2 Net revenue in mill. € 13,0 13,2 12,2 11,4 11,3 10,8 4,0 1,5 0,3 EBITA in mill. € 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
  • 5. SINNERSCHRADER GROUP GROUP ADVERTISING DIGITAL STRATEGY CRM WEB DEVELOPMENT E-MAIL MARKETING mediaby TECHNOLOGY CONTENT PRODUCTION ANALYTICS PERFORMANCE MEDIA TARGETING E-COMMERCE NEW SCREENS MEDIA TECHNOLOGY FULL SERVICE DIGITAL MARKETING DIGITAL MARKETING DIGITAL MARKETING CAMPAIGNS PLATFORMS PROGRAMS
  • 7. EXPERIENCE IN GLOBAL E-COM ROLLOUTS Globale rollout and maintenance of international online stores of all luxuary brands by PPR.
  • 9.
  • 10.
  • 11.
  • 14.
  • 15. The German online buyer Successful e-commerce in Germany Market entry strategies
  • 16. THE GERMAN ONLINE MARKET IS THE LARGEST IN EUROPE - WITH RATHER LOW ONLINE SPENDINGS PER CAPITA (6M) Source: DIBS E-Commerce Survey, 2010
  • 17. GERMANS LIKE TO BUY ONLINE - BUT NOT FROM FOREIGNERS 59% of individuals use e-commerce (16-74 years) Only 8% buy goods from foreigners Source: Eurostat, 2010
  • 18. HEARSAY ABOUT THE GERMAN ONLINE SHOPPER Always looking for a Very price sensitive %discount Complaining very often Causing high return rates Strong in comparing prices Not too fashionable
  • 19. THE REALITY: GERMAN ONLINE SHOPPERS SEEM TO BE ALWAYS LOOKING FOR THE BEST OFFER Keeping your online store highly accessible is a must! Source: Oracle European Consumer Views of E-Commerce, 2010
  • 20. A GERMAN SPECIALTY: HIGH ACCEPTANCE OF INVOICE PAYMENT, ESPECIALLY IN FASHION E-COMMERCE From our experience: Acceptance of invoice payment up to 85% of all orders in individual online stores! Source: DIBS E-Commerce Survey, 2010
  • 21. THE BIG QUESTION: TAKE A CENTRALIZED OR A LOCAL APPROACH? Planning your entry to the German e-commmerce market Sales potential low / Sales potential high uncertain Focus on a centralized approach Be courageous and go for the local keeping extra costs low! approach, you will be rewarded! As stated above, the German online market is one of the largest in Europe. That‘s why you think twice about being courageous.
  • 22. COPING WITH THE CHALLENGES LOOKING AT YOUR E-COMMERCE SETUP A global e-com platform Marketing is a good starting point! (adserving, retargeting, search) Content Frontend (E-Shop) CRM / Community (product data, fotos, cms) (customers, segments, social) Warehousing Backend Customer Service (inventory, shipments, returns) (inbound, outbound) Financials (PSP integr., bank, accounting)
  • 23. LOCALIZING EVERY COMPONENT OF YOUR E-COMMERCE INGREDIENTS Efficiency: Finding the right marketing mix The basics: Localized Engagement: Talk the Marketing content is a must (adserving, retargeting, search) language of your customers Content Frontend (E-Shop) CRM / Community (product data, fotos, cms) (customers, segments, social) Warehousing Backend Customer Service (inventory, shipments, returns) (inbound, outbound) Speed: Consider using a Financials (PSP integr., bank, accounting) Credibility: Use native local distribution centre speakers to represent your brand Convenience: Adapt to local payment methods
  • 24. SUMMARY: A STEP-BY-STEP GUIDE TO ENTER THE GERMAN ONLINE MARKET 1. Screen your market potential and your competitors in the German market, make sure to be very clear on your regional USPs. 2. Build a separate business plan for your market entry strategy taking into account all regional characteristics (such as tax and return rates). 3. Find local e-commerce specialists to localize your content, your marketing strategy and your e-commerce processes (like payment). 4. Set up the German roll-out as a separate project on your global e-com platform, beware of interference with other projects on your e-com roadmap. 5. Launch courageously and keep close track on your local KPIs, focus on payment and returns.
  • 25. Thank you! Moritz Koch, Managing Director http://www.next-commerce.com/