Cybersecurity Awareness Training Presentation v2024.03
Planning for new markets_Javelin Group
1. 1
Ecommerce Futures: New Territories
Planning for new markets
Matt Jeffers, Associate Director, Javelin Group
www.javelingroup.com
2. Javelin Group: planning & implementing omni-channel transformation
180+ people focused on omni-channel strategies and transformation
Vertical specialists combining skills in Strategy, Operations, Technology
50% of our work is outside the UK, especially DE, FR, NL and DK
Jav
elin
Gro
up
sco
pe
Plan & help execute omni-channel retail…
Strategy
& org.
Operations
Technology
StoresMCR eCom.
Centre
www.javelingroup.com
RETAIL CHALLENGES
2
3. International expansion strategic priority for retailers
3
1.
Fast ecommerce
growth in the UK…
Invest in
ecommerce &
multi-channel
6.
2.
…But no top-line retail
growth
Expand
internationally
Invest in
own labels
Retailers looking
internationally for
growth opportunities…
5.
3.
Consolidate
and build scale
Redefine store
roles & formats
Six
Strategic
Priorities
4.
Re-shape
the estate
www.javelingroup.com
JAV INTERNATIONAL PROJECTS
4. Javelin Group helps retailers with all stages of international expansion
Phase 1:
Strategic Planning
Strategic Market
Selection
Phase 2:
Implementation
Phase 3:
Existing Performance
Optimisation
Operational & Merchandising Strategies
Multi-Channel Entry Strategies
International Store Locations & Formats
International Due Diligence
www.javelingroup.com
INTERNATIONAL ECOMMERCE GROWTH
4
Performance
Improvement
5. UK retailers ecommerce revenue to be increasingly International
5
ecommerce revenues for UK-based retailers, £bn
£81bn
£28bn
35%
£bn
£53bn
£29bn
£4bn
14%
£25bn
Source: Google analysis, revised Javelin Group forecasts
www.javelingroup.com
AMAZON & ASOS
6. International 43% of Amazon’s revenues, 59% of ASOS’s sales
6
“When we said we
wanted to be ‘truly
global’, we meant it”
£600
$70
Eight localised sites
(UK, DE, FR, JP, CN, CA, IT, ES)
£500
$50
$40
International
43%
$30
ASOS Retail sales (£m)
Total Amazon revenue ($bn)
$60
Seven localised sites
(FRA, DEU, ITA, ESP, USA, AUS,
RUS)
plus “ship anywhere”
£400
International
59%
£300
£200
$20
North America
57%
$10
$0
2004
2005
2006
2007
www.javelingroup.com
ASOS INTERNATIONAL STRATEGY
2008
2009
2010
2011
2012
£100
£0
2004
UK
41%
2005
2006
2007
2008
2009
2010
2011
2012
7. ASOS international strategy
Step 1: Strategic prioritisation of
international markets
Strategic
UK
USA
France
Germany
7
Step 2: Adopt appropriate tactics across each
of the markets
11. Local language Fashion Finder // Market11. Local language Fashion Finder MarketPlace
Place
10. Mobile language site
10. Mobile language site
9. Dedicated product
9. Dedicated product
8. Offline marketing
8. Offline marketing
7. Local language sites
7. Local language sites
Tactical
Australia, Brazil, China,
Denmark, India, Ireland,
Italy, Japan,
Netherlands, Norway,
Russia, South Korea,
Spain, Sweden
Rest of
the World
6. Customer care in local language
6. Customer care in local language
5. In-country returns
5. In-country returns
4. Re-invest in lowering cost of delivery and
4. Re-invest in lowering cost of delivery and
returns
returns
3. PR // Online digital marketing
3. PR Online digital marketing
2. Payment methods
2. Payment methods
1. Delivery options // payment solutions
1. Delivery options payment solutions
www.javelingroup.com
UK RETAILERS SLOW
8. Store retailers have been slow to adopt localised ecommerce
8
# of foreign countries present with stores &/or localised ecommerce
Stores
52
51
eCom
40
37
Number of
countries
26
8
8
7
8
7
H&M
ASOS
3
M&S
Arcadia
Debs
Next
Source: Javelin Group analysis
www.javelingroup.com
WORLD MAP
9. Key questions for retailers
9
• Where should we go first?
?
• What should the proposition
be?
• What mix of bricks and
clicks?
• How should we implement?
www.javelingroup.com
BRICKS vs CLICKS
10. Bricks vs. clicks
10
Low Risk,
Low Penetration
High Risk,
High Penetration
eCommerce Only
Stores Only
Multi-Channel
Opportunity to test
market & optimise
proposition
•
Leverage existing
ecommerce
•
•
In many emerging
markets, shopping in
store important part of
social culture
•
Strongest presence
in new market,
generates fastest
brand awareness
•
Superior experience to
ecommerce - customers
can touch, feel and try
products
•
Enables multichannel services
from launch e.g. click
& collect
•
•
Customers can interact
with brand and develop a
stronger relationship
•
eCommerce can offer
extended range to
support store range
•
CAPEX can be shared
by partners
•
Enables ROPO –
research online
purchase offline
eCommerce
experiencing strong
growth
•
Range size & availability
can be maximised online
•
Low risk / low cost
FOCUS OF TODAY’S
SESSION
www.javelingroup.com
COUNTRY ECOM PENETRATION
11. Ecommerce market size, growth and penetration integral to decision
11
B2C e-retail penetration (% share of retail sales) excl. tickets, travel & C2C (2012-17)
5-10%
today
2-5%
10%
C
H
N
<2%
N. America &
N.W. Europe
www.javelingroup.com
WORLD MAP REVENUES
Central/Southern Europe
& “developed” Far East
BRIC, Turkey etc.
Source: Javelin Group, eMarketer, Forrester
12. Growing Chinese eCommerce market attractive prospect
12
Internet retailing market size 2012 (£bn value)
Note: Excludes sales tax
Source: Javelin Group, Euromonitor
www.javelingroup.com
CHINA SINGLES DAY
13. …but not without challenges
•
$3.06 billion USD in sales
•
•
•
•
Tmall had more than $2.1 billion in sales
109 stores with more than $1.6 million USD in sales
within 12 hours
213 million active accounts
105 million orders
www.javelingroup.com
FRENCH CLOTHING MARKET DYNAMICS
13
14. Category dynamics must also be understood in target country
Clothing and footwear eCommerce market map - France
Online clothing and footwear market share (%)
100%
80%
2.6%
2.7%
3.4%
5.8%
70%
12.6%
90%
60%
50%
40%
14.7%
30%
20%
10%
0%
www.javelingroup.com
OTHER FACTORS
13.7%
Others
36.3%
14
15. Factors beyond market dynamics also important
Population
characteristics
Government
regulations &
taxes
Disposable
income
Geography:
urban vs. rural
www.javelingroup.com
JAVELIN SCORECARDING
Broadband
penetration
Logistics /
fulfilment
Competitive
environment
15
International
brand presence
Payment
preferences
Smartphone/tabl
et penetration
16. Javelin Group scorecard can help make strategic assessment
16
A Multi-Layered opportunity scorecard can be used to evaluate market
attractiveness
Category
Example factors
Category
Example factors
Online market maturity
Online market maturity
Total eCommerce sales
Total eCommerce sales
Fulfilment complexity
Fulfilment complexity
Customs regulations
Customs regulations
Ease of implementation
Ease of implementation
Language barrier
Language barrier
Macro-economy
Macro-economy
Ecommerce/ broadband
Ecommerce/ broadband
growth
growth
Cultural and retailer brand fit
Cultural and retailer brand fit
GDP per capita 2013 & 2017
GDP per capita 2013 & 2017
Acceptance of foreign retailers
Acceptance of foreign retailers
Population
Population
Population 2013
Population 2013
Lo
w
1
www.javelingroup.com
EASE OF IMPLEMENTATION
eCommerce sales 2017
eCommerce sales 2017
Score attributed to each criteria by market to
determine level of eCommerce attractiveness
High
5
17. Balancing opportunity and implementation practicality
17
Ease of entry vs. size of opportunity (for UK retailers)
Large
Long term size
of opportunity
Small
CHN
www.javelingroup.com
DE
U
FR
A
Early entry
CAN
SWE
DNK AUS
POL
ITA
CZE
ESP
NLD
AUT
TUR
CHE
SGP
IND
SAU
Leave for
later
GRE CYPEGYUAE
Hard
MULTICHANNEL
USA
Big long
RUS term opp’ties
KO
BRA
JAP
R
UKR
IDN
MY TW
N
S THA
Europe
Americas
Middle East
Asia/Australia
Russia/Ukrai
ne
Ease of entry
IRE
Follow-through
Easy
19. Javelin Group recently helped C&A with international eCom strategy
19
International ecommerce strategy
• Analysed ecommerce opportunity in 13
markets
•
Identified 5 priority markets
- Market share and sales potential
estimated
• Detailed scorecard analysis (clothing &
footwear market)
•
- Ranked counties based on attractiveness
Advised on key considerations for
launch in these markets
Country
Online market
maturity
Fulfilment
complexity
Ease of
implementation
Macroeconomy
Ecommerce/
broadband
growth
Current C&A
performance/
brand fit
Population
Overall
attractiveness
score
Weighting
23%
20%
17%
13%
11%
11%
5%
100%
United Kingdom
3.7
4.9
4.1
3.6
3.8
1.8
4.6
3.8
Sweden
2.6
5.0
4.1
4.5
2.5
2.7
3.2
3.6
Denmark
2.7
4.9
4.5
1.7
2.7
3.4
Finland
2.5
4.9
3.7
Czech Republic
1.8
4.9
2.0
Norway
2.4
1.9
Turkey
2.5
1.0
www.javelingroup.com
HURDLES
TP
OU
E
UT
4.0
2.0
3.7
2.0
2.7
2.4
3.3
3.0
2.1
4.1
2.5
2.9
4.1
4.4
2.2
2.7
2.4
2.9
3.4
2.4
3.1
2.5
5.0
2.5
AM
EX
PL
20. Hurdles
•
Financial returns not coming quick enough
•
Overly ambitious business plan
•
Marketing in the wrong areas
•
Not enough ‘on the ground’ research
•
Poor partner selection process
•
Weak brand recognition
•
Insufficient senior management time
•
Lack of buy in at all levels
•
Export / import requirements
•
Lack of planning
www.javelingroup.com
QUESTIONS
20
