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E-Commerce Workshop
A Review of Successful Strategies and Promising Trends
Jose Nino
Perry Ellis International
Director of E-Commerce Marketing
jose.nino@pery.com
E-Commerce Workshop
A Review of Successful Strategies and Promising Trends
AGENDA
About Perry Ellis International (PEI)
PEI Online History
Trends in USA E-Commerce
PEI Crossborder – LATAM
What has worked for PEI Omnichannel
What has worked for PEI Omnichannel (Kinda)
Partner Ecosystem
Q&A
ABOUT PEI
Perry Ellis Int’l (Nasdaq: PERY) is a leading international
manufacturer and marketer of apparel. Its diverse portfolio of
brands, either wholly owned or licensed trademarks from third
parties, are available through multiple distribution channels.
FY14 Revenue: $912M
Stores w/PEI Product: 15,000+
Licensing Agreements: 100+
FY14 Units Shipped: 70M+
FY14 DTC E-Com Growth: 45%
ABOUT PEI
• In 2014, PEI received praise from a leading industry digital ranking.
- Four companies received “genius” award, including COACH, Gucci, Tory Burch and Ralph Lauren.
- 22 companies received “gifted” award, including Perry Ellis International, Kate Space, Burberry, Calvin
Klein, Lacoste, Chanel, Giorgio Armani and others.
ABOUT PEI
USA: +47% | +27%
2014 vs 2013
E-Com Growth
Revenue | Traffic
ALL LATAM: +72% | +63%
CHINA: +4% | +23%
Q1FY16 vs Q1FY15
+46% | +47%
ABOUT PEI
Never be afraid to take risks,
and never take the clothes you wear too seriously.
“
“- PERRY ELLIS
Sept 1st, 2006 | PerryEllis.com
Nov 1st, 2006 | OriginalPenguin.com
Mar 1st, 2009 | Cubavera.com
Jan 5th, 2014 | PerryEllis.com LATAM
Jan 9th, 2012 | Original Penguin UK
Jan 5th, 2014 – Jan 4th, 2015 | Cubavera.com LATAM
Site circa Sept, 2006
Site circa Nov, 2006
Site circa May, 2009
PEI ONLINE HISTORY
Sep 8th, 2008 – Sept 30th, 2014 |
Candccalifornia.com
Oct 10th, 2011 | RafaellaSportswear.com
Oct 27th, 2013 | CallawayApparel.com
Jan 5th, 2014 – Jan 4th, 2015 | Rafaella Sportswear LATAM
Site circa Oct, 2011
Site circa Sept, 2008
Site circa May, 2013
PEI ONLINE HISTORY
TRENDS IN USA E-COMMERCE
INDUSTRY TRENDS
• 2014 saw 12-15% average growth (depends on who you ask).
- Nearly five times greater than growth in U.S. retailing (3.2%)
• E-Commerce retail now accounts for 10% of total retail sales.
• Consolidation continues in an attempt to maintain market share.
- #1 Office supply giant Staples bought #2 office supply giant Office Depot after
Office Depot bought #3 office supply giant Office Max in 2012.
- Men’s clothing giant Men’s Wearhouse completed hostile takeover of Jos. A Banks
in 2014.
- 1-800 Flowers purchased Harry & David, a decade’s old purveyor of gourmet
food and gifts.
USA E-COMMERCE NEARING MATURITY
TRENDS IN USA E-COMMERCE
• Age of Disruptors: Rise of online only merchants that are
exclusively direct to consumer, bypassing margin eroding
distribution middlemen.
- Dollar Shave Club offering razors at a price point that is roughly 80%
cheaper than Gillette. P&G has been forced to revise their marketing
campaigns so that their relative value is emphasized.
- Warby Parker has disrupted traditional eyewear conglomerates such as
Visionworks and Lenscrafters by offering premium eyewear via a direct
to consumer model. At roughly 70% less than comparable offline
glasses, they recently deployed physical stores to augment their omni-
channel fulfillment model.
INDUSTRY TRENDS
USA E-COMMERCE NEARING MATURITY
TRENDS IN USA E-COMMERCE
• Ship to store continues to gain momentum. Proven and effective
way to increase AOV, primary omni-channel driver.
- PEI initial rollout underway for Perry Ellis and Original Penguin stores.
- 40% of Home Depot e-commerce orders are shipped to store. Of those
orders, nearly 25% of customers purchase an additional item during their
store visit to pick up their web order merchandise.
• Traditional retailers such as JCPenney, Sears and Best Buy
continue to close physical locations and recycle savings into digital
operations.
- Macys turning flagships into distribution centers for e-commerce
decreasing logistics cost and improving delivery times to better compete
with Amazon Prime and augment their omni-channel execution .
INDUSTRY TRENDS
USA E-COMMERCE NEARING MATURITY
TRENDS IN USA E-COMMERCE
• Flash site popularity continues to diminish, although there are
some exceptions.
- Stronger economy has led to decreased need for manufacturers to clear
inventory. Any activity that does take place are at substantially reduced
margins.
- As consolidation continues, only a handful of retailers exist thereby
impacting brand’s ability to guarantee favorable wholesale prices. This
has had an effect on flash site business model sustainability.
- After explosive growth in 2009-2011, leaders such as RueLaLa and
Hautelook have posted single digit gains in 2014. Previous darlings
LivingSocial and Groupon both posted double digit decreases.
INDUSTRY TRENDS
USA E-COMMERCE NEARING MATURITY
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY TRENDS
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2005
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION CONVERSION RETENTION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60 60+
AUDIENCE
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2005
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION CONVERSION RETENTION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60 60+
AUDIENCE
Contextual Display Nonbranded
CPC
Froogle
SEO
Shopzilla
Branded CPC
Affiliates
Branded CPC
EMails
EMails
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION CONVERSION RETENTION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60 60+
AUDIENCE
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Personalization
Shop Runner
Omni-channel
- Fulfillment
- Marketing
Loyalty Programs
CRM/ESP
LTV Analysis
Behavioral Display
- Retargeting
Behavioral Emails
- Cart Abandonment
- Category Abandonment
- Product Abandonment
- Editorial
CSEs
Affiliate Marketing
User Generated Content
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
100% 70% 5
0-15 Days
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
100% 70% 5
0-15 Days
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Last Click Effectiveness: 1
Post Engagement Effectiveness: 4
Incremental Lift Value: 2
Channel Lift: Direct & SEO
Last Click Effectiveness: 2
Post Engagement Effectiveness: 7
Incremental Lift Value: 4
Channel Lift: Direct & Paid Search
Last Click Effectiveness: 3
Post Engagement Effectiveness: 8
Incremental Lift Value: 5
Channel Lift: Direct & Paid Search
Last Click Effectiveness: 1
Post Engagement Effectiveness: 2
Incremental Lift Value: 2
Channel Lift: Direct
INFLUENCER MARKETING
SOCIAL | LOOKALIKE MODELING
SOCIAL | CUSTOM AUDIENCES
NATIVE DIGITAL
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY
100% 70% 50% 40% 30%
0-15 Days 16-30 31-45
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY
100% 70% 50% 40% 30%
0-15 Days 16-30 31-45
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Last Click Effectiveness: 5
Post Engagement Effectiveness: 1
Incremental Lift Value: 5
Channel Lift: Direct & Paid Search
Last Click Effectiveness: 4
Post Engagement Effectiveness: 6
Incremental Lift Value: 5
Channel Lift: Direct
Last Click Effectiveness: 3
Post Engagement Effectiveness: 4
Incremental Lift Value: 3
Channel Lift: Direct
Last Click Effectiveness: 6
Post Engagement Effectiveness: 1
Incremental Lift Value: 3
Channel Lift: Organic
Last Click Effectiveness: 8
Post Engagement Effectiveness: 3
Incremental Lift Value: 7
Channel Lift: Paid Search
NONBRANDED CPC
PROGRAMMATIC OPEN EXCHANGE
PROGRAMMATIC PRIVATE MARKETPLACE
SEO
GOOGLE SHOPPING
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Behavioral Display
- Retargeting
Behavioral Emails
- Cart Abandonment
- Category Abandonment
- Product Abandonment
- Editorial
CSEs
Affiliate Marketing
User Generated Content
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Behavioral Display
- Retargeting
Behavioral Emails
- Cart Abandonment
- Category Abandonment
- Product Abandonment
- Editorial
CSEs
Affiliate Marketing
User Generated Content
Last Click Effectiveness: 7
Post Engagement Effectiveness: 3
Incremental Lift Value: 8
Channel Lift: Direct & Display
Last Click Effectiveness: 6
Post Engagement Effectiveness: 3
Incremental Lift Value: 6
Channel Lift: Direct & EMail
Last Click Effectiveness: 5
Post Engagement Effectiveness: 2
Incremental Lift Value: 4
Channel Lift: Paid Search
Last Click Effectiveness: 9
Post Engagement Effectiveness: 2
Incremental Lift Value: 8
Channel Lift: Affiliates
Last Click Effectiveness: N/A
Post Engagement Effectiveness: 6
Incremental Lift Value: 3
Channel Lift: Organic
BEHAVIORAL DISPLAY
BEHAVIORAL EMAILS
CSEs
AFFILIATE MARKETING
UGC
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION CONVERSION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60 60+
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Personalization
Shop Runner
Omni-channel
- Fulfillment
- Marketing
Behavioral Display
- Retargeting
Behavioral Emails
- Cart Abandonment
- Category Abandonment
- Product Abandonment
- Editorial
CSEs
Affiliate Marketing
User Generated Content
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION CONVERSION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60 60+
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Personalization
Shop Runner
Omni-channel
- Fulfillment
- Marketing
Behavioral Display
- Retargeting
Behavioral Emails
- Cart Abandonment
- Category Abandonment
- Product Abandonment
- Editorial
CSEs
Affiliate Marketing
User Generated Content
Last Click Effectiveness: N/A
Post Engagement Effectiveness: N/A
Incremental Lift Value: 3
Channel Lift: N/A
Last Click Effectiveness: N/A
Post Engagement Effectiveness: N/A
Incremental Lift Value: 2
Channel Lift: Direct
Last Click Effectiveness: N/A
Post Engagement Effectiveness: N/A
Incremental Lift Value: 5
Channel Lift: Direct
Last Click Effectiveness: 3
Post Engagement Effectiveness: 4
Incremental Lift Value: 2
Channel Lift: Direct & Affiliates
PERSONALIZATION
SHOPRUNNER
OMNI-CHANNEL FULFILLMENT
OMNI-CHANNEL MARKETING
TRENDS IN USA E-COMMERCE
E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015
EXPOSURE
AWARENESS
DISCOVERY CONSIDERATION CONVERSION RETENTION
100% 70% 50% 40% 30% 20% 10% 3-5%
0-15 Days 16-30 31-45 45-60 60+
AUDIENCE
Influencer Marketing
Social
- Lookalike Modeling
- Custom Audiences
Native Digital
Nonbranded CPC
Programmatic Open
Exchange
Programmatic Private
Marketplace
SEO Algorithm
Adjustments
Google Shopping
Personalization
Shop Runner
Omni-channel
- Fulfillment
- Marketing
Loyalty Programs
CRM/ESP
LTV Analysis
Behavioral Display
- Retargeting
Behavioral Emails
- Cart Abandonment
- Category Abandonment
- Product Abandonment
- Editorial
CSEs
Affiliate Marketing
User Generated Content
PERRY ELLIS CROSS BORDER | LATAM
PERRY ELLIS CROSS BORDER TODAY | LATAM
Q1FY16
PEI CROSSBORDER | LATAM
PERRY ELLIS CROSS BORDER TODAY | LATAM
Q1FY16 COMPS
MEXICO
Traffic: +72%
Revenue: +46%
CHILE
Traffic: +72%
Revenue: +46%
GUATEMALA
Traffic: +318%
Revenue: +187%
COSTA RICA
Traffic: +318%
Revenue: +187%
BRAZIL
Traffic: +52%
Revenue:
+146%
PEI CROSSBORDER | LATAM
TRANSLATION & LOCALIZATION RESOURCES
LET TECHNOLOGY DO THE HEAVY LIFTING.
THE MAIN TYPES OF TRANSLATION SOFTWARE INCLUDE:
Machine Translation
This is an automated translation tool, and typically renders
results from a crowd sourced database. Most popular option
is as Google Translate, as well as Bing Translator.
CORRECT
PEI CROSSBORDER | LATAM
Misinterpreted contextual meaning.
Computer Assisted Tools
Used primarily by translation and technology industries.
“Translation memory” is manually created by humans, not
machines, thereby allocating sensitivity around contextual
misinterpretations that computers can’t decipher, yet.
TBX Markup
An extension of translation memory, except much more
technical. Its objective is to easily integrate with XML
standards for streamlined execution.
PEI CROSSBORDER | LATAM
LET TECHNOLOGY DO THE HEAVY LIFTING.
THE MAIN TYPES OF TRANSLATION SOFTWARE INCLUDE:
TRANSLATION & LOCALIZATION RESOURCES
DON’T FORGET TO “LOCALIZE” THE
TRANSACTIONAL ELEMENT.
International Checkout
After “localizing” your content, make sure you extend the
following efforts to your checkout process:
Customers want to see pricing in their local currency.
They also want to see VAT/Duty charges for complete
transparency and decreased customs surprises.
Finally, UPS/Fedex is not the only option, especially
overseas where there are cheaper alternatives (DHL).
PEI CROSSBORDER | LATAM
TRANSLATION & LOCALIZATION RESOURCES
PERRYELLIS.COM LATAM INFRASTRUCTURE
Proxy based machine translation from ……………
Translation Memory Database
Proxy
Checkout Localization from ……………..
Customer PerryEllis.com
Customer
in Mexico
Server API
Call
PerryEllis.com
PEI CROSSBORDER | LATAM
TRANSLATION & LOCALIZATION RESOURCES
PEI CROSSBORDER | LATAM
PERRYELLIS.COM LATAM INFRASTRUCTURE
TRANSLATION & LOCALIZATION RESOURCES
PEI CROSSBORDER | LATAM
PERRYELLIS.COM LATAM INFRASTRUCTURE
IF YOU ARE IN MEXICO…
TRANSLATION & LOCALIZATION RESOURCES
PEI CROSSBORDER | LATAM
PERRYELLIS.COM LATAM INFRASTRUCTURE
TRANSLATION & LOCALIZATION RESOURCES
LOCALIZATION vs LOCALISATION
Eyeglasses
When localizing your site, keep in mind there are many
different interpretations for similar words.
Gafas
Lentes
Anteojos
Earrings
Pendientes
Aretes
Aros
Aretes
Hangover
Resaca
Cruda
Ratón
Guayabo
TRANSLATION & LOCALIZATION CONSIDERATIONS
PEI CROSSBORDER | LATAM
Jeans Vaqueros Mezclilla
When localizing your site, keep in mind there are many
different interpretations for similar words.
Vaqueros
Vaqueros
PEI CROSSBORDER | LATAM
LOCALIZATION vs LOCALISATION
TRANSLATION & LOCALIZATION CONSIDERATIONS
INTERNATIONAL PAID SEARCH
Perception
Mexico will contribute majority of LATAM revenue.
Reality
Mexico led LATAM, but only contributed 38% of
total LATAM revenue. Who was #2?
ECUADOR
PEI CROSSBORDER | LATAM
Perception
Mexico will contribute majority of LATAM revenue.
Reality
Mexico led LATAM, but only contributed 38% of
total LATAM revenue. Who was #2?
ECUADOR
Highest LATAM Conversion Rate, 3rd globally
behind USA and Canada.
Highest LATAM Per Session Value, 3rd globally
behind USA and Canada.
42% Higher Average Order Value than USA
Orders
PEI CROSSBORDER | LATAM
INTERNATIONAL PAID SEARCH
Perception
Google is as expensive in LATAM as it is in USA & Europe
Reality
Google is very affordable, and quite effective.
Competition is substantially less than
USA/Europe, thereby decreasing costs for
complete share of voice.
Perry Ellis branded keywords around about
65% less expensive than in USA. Non branded
keywords are about 80% less expensive than
USA.
CTR (Click-thru rates) on average are 322%
higher than counterparts in USA.
PEI CROSSBORDER | LATAM
INTERNATIONAL PAID SEARCH
Perception
Display options are as varied in Mexico as they are in USA.
Reality
Display has yet to mature in Mexico/LATAM.
Actual Display Costs in Mexico
Cost per Click: $.07 - $.15
Estimated CPM: $.25 - $.50
Actual Display Costs in USA
Cost per Click: $.23 - $.40
Estimated CPM: $2.25 - $3.50
PEI CROSSBORDER | LATAM
INTERNATIONAL PAID SEARCH
Perception
We’ll do the same CPC efforts in LATAM as we do in USA.
Reality
Search programs vary greatly LATAM.
Know product preferences in each region.
We’ve seen products trend very differently
when comparing USA best sellers and LATAM
best sellers. Perfume seems to have much
more traction in LATAM compared to USA, and
Europe.
PEI CROSSBORDER | LATAM
INTERNATIONAL PAID SEARCH
Perception
We’ll just do the same CPC efforts in LATAM as we do in USA.
Reality
Search programs vary greatly LATAM.
Know where your share is. Unlike USA, interest pockets are
isolated, far and few in between.
Because broadband costs are relatively expensive, it is
not as penetrated as other industrialized nations.
Therefore, geo-target search campaigns as necessary.
PEI CROSSBORDER | LATAM
INTERNATIONAL PAID SEARCH
ACTUAL VIDEO METRICS
23%
24%
22%
21%
10%
Percent of People who Viewed 1/4 Length of Video.
Mexico
Colombia
Peru
Chile
21%
22%
19%
17%
21%
Percent of People Who Viewed Entire Video
Mexico
Colombia
Peru
Chile
PEI CROSSBORDER | LATAM
INTERNATIONAL PAID SEARCH
0% 5% 10% 15% 20% 25% 30% 35% 40%
Mexico
Ecuador
Dominican Republic
Colombia
Costa Rica
Chile
Honduras
Puerto Rico
El Salvador
Guatemala
Panama
Peru
Venezuela
Bolivia
Nicaragua
Uruguay
% of LATAM
Population
(Exc. Argentina &
Brazil)
% of LATAM Sites
Revenue Total
(Exc. Argentina &
Brazil)
PEI CROSSBORDER | LATAM
ALL PEI LATAM SALES 2014INTERNATIONAL PAID SEARCH
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%
Mexico
Ecuador
Dominican Republic
Colombia
Costa Rica
Chile
Honduras
Puerto Rico
El Salvador
Guatemala
Panama
Peru
Venezuela
Bolivia
Nicaragua
Uruguay
United States
Branded Fragrances CTR
PEI CROSSBORDER | LATAM
ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00%
Mexico
Ecuador
Dominican Republic
Colombia
Costa Rica
Chile
Honduras
El Salvador
Guatemala
Panama
Peru
Nicaragua
United States
Branded Dress Shirts CTR
PEI CROSSBORDER | LATAM
ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Mexico
Ecuador
Dominican Republic
Colombia
Costa Rica
Chile
El Salvador
Panama
Peru
Nicaragua
United States
Nonbranded Pants CTR
PEI CROSSBORDER | LATAM
ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
Each country has their own set of rules, making cross
border commerce a complicated endeavor.
MEXICO
Credit card penetration is growing, but still very low as only
13-16% of population has credit cards.
Many online currencies are preferred.
IVA (Value Added Tax) is 10-16%
E-Wallet, led by Mercado Libre’s “Mercado Pago”,
facilitates virtual wallet use. Users can load funds via debit,
bank deposits, between users and convenience stores.
Paypal on steroids.
PEI CROSSBORDER | LATAM
PAYMENTS, TAXES & RESTRICTIONS
Each country has their own set of rules, making cross
border commerce a complicated endeavor.
CHILE
Credit card penetration is growing, but still very low as only
15-18% of population has credit cards.
Like Brazil, “Boletos” are an alternative
online payment method.
Duties range from 6-16.5%, VAT @ 19%,
Luxury Tax @ 50-85%
PEI CROSSBORDER | LATAM
PAYMENTS, TAXES & RESTRICTIONS
$100 Basket Shipping Fees
0%
5%
10%
15%
20%
25%
PercentofOrderTotal
PEI CROSSBORDER | LATAM
PAYMENTS, TAXES & RESTRICTIONS
$100 Basket Duties & VAT
PercentofOrderTotal
0%
5%
10%
15%
20%
25%
30%
PEI CROSSBORDER | LATAM
PAYMENTS, TAXES & RESTRICTIONS
AFFILIATE MARKETING | CJ LATAM
PROGRAMMATIC DISPLAY
PERSONALISED & BEHAVIORAL EMAILS
Affiliate marketing currently makes up 8-10% of E-Commerce industry
revenue. This number is much higher for PEI, and an excellent source of
traffic. LTV benefits greatly outweigh initial promotional margin impact.
Still in its infancy in LATAM. Mediadesk leading, as Mediamath and
Quantcast have Mexico on its radar. Private marketplace deals have
started to appear with Televisa and Time Inc (People en Espanol).
Excellent method of driving upper funnel engagement towards
conversion.
We have spent much of the past year compiling our LATAM e-mail
database, but have yet to send one single Spanish e-mail. This year
we will introduce personaliSed, CRM driven newsletters in addition to
behavioral e-mails based on cart, product and category
abandonment.
PEI CROSSBORDER | LATAM
TOMORROW
OMNI-CHANNEL SUCCESSES
RetailMeNot Omni-Channel Couponing
Objective is to drive in-store purchasing
via online or mobile device influencing.
“Creepy” technology has rendered huge
results
• Delivery mechanisms consist of:
- Offer browsing by brand
- Offer browsing by mall
- Radius mapping
Offer browsing by brand,
note mall option tab.
Nearby in-store offers based on radius
from current location.
OMNICHANNEL SUCCESSES
MOBILE GEOFENCING
RetailMeNot Omni-Channel Couponing
• Delivery mechanisms consist of:
- Geofencing
OMNICHANNEL SUCCESSES
MOBILE GEOFENCING
RetailMeNot Users Exposed to Perry Ellis Offer:
RetailMeNot Users Who Visited Perry Ellis Offer:
RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | PERRY ELLIS STORES
- In-store focused placements helped drive user engagement through a 645% lift in average daily interactions
- Mondays had the overall highest traffic for the week
- 70% of mobile traffic came from outside the geo-fenced store locations, showing true “incrementality” and “Top of Funnel” user
engagement
OMNICHANNEL SUCCESSES
MOBILE GEOFENCING
RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | PERRY ELLIS STORES
OMNICHANNEL SUCCESSES
Data relates to device use per
coupon.
- Users received promotions via
traditional e-mail from RMN or
geofence pushing.
- Vast majority redeemed with
mobile device
- Geofence push rendered an
impulse buy.
- The tighter the radius, the
higher the redemption
rate.
MOBILE GEOFENCING
Mobile Clicks
Desktop Clicks
Tablet Clicks
RetailMeNot Users Exposed to Original Penguin Offer:
RetailMeNot Users Who Visited Original Penguin Offer:
OMNICHANNEL SUCCESSES
RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | ORIGINAL PENGUIN STORES
- Fridays had the highest visits overall.
- Mobile exposures were a key success driver for the campaign
- 75% of mobile traffic came outside of geo-fenced store locations, showing true incrementally
and top of funnel user engagement.
MOBILE GEOFENCING
OMNICHANNEL SUCCESSES
RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | ORIGINAL PENGUIN STORES
Data relates to device use per
coupon.
- Users received promotions via
traditional e-mail from RMN or
geofence pushing.
- Vast majority redeemed with
mobile device
- Geofence push rendered an
impulse buy.
- The tighter the radius, the
higher the redemption
rate.
MOBILE GEOFENCING
RESULTS
OMNICHANNEL SUCCESSES
973 In-Store Redemptions
AOV: $104.88
(+13% VS E-COM $92.33 AOV)
REVENUE: $102,048
COMMISSION: $10,204
NTF: 82%
SIX MONTH LTV: $35,103
2,789 In-Store Redemptions
AOV: $82.18
(+11% VS E-COM $74.12 AOV)
REVENUE: $229,200
COMMISSION: $22,920
NTF: 67%
SIX MONTH LTV: $82,512
MOBILE GEOFENCING
OMNICHANNEL SUCCESSES
“CARDLINK” PROGRAMS
OBJECTIVE: LEVERAGE U.S. CONSUMER BEHAVIOR FOR PROFILE LOOKALIKE SEGMENTING.
“Switcher”
Retention
“Light”
Change Behavior
“New”
Conquest
Reinforce the behavior of
your Frequent Customers so
they continue to shop at your
brands
Increase visits from
Infrequent Customers by
enforcing brand loyalty with
Perry Ellis/ Original Penguin
Target and acquire New
Customers for both
brands
Target Segment Targeting Criteria
Frequent (3x or more in 6 months) Visit Perry Ellis or Original Penguin 3x or more in the past 6 months
Infrequent (1-2x in 6 months) Visit Perry Ellis or Original Penguin 1-2x in the past 6 months
New (0x in 6 months) New (Apparel Stores)
OMNICHANNEL SUCCESSES
Vendors typically work with thousands of financial institutions, allowing for visibility into 150M+ “anonymous” customer data.
Purchase patterns, “like” retail category purchases and target demos segment massive data pools
Perry Ellis
“CARDLINK” PROGRAMS
OMNICHANNEL SUCCESSES
When the platform recognizes an online
user that meets the aforementioned
criteria, they will be served an add like
this one:
“CARDLINK” PROGRAMS
OMNICHANNEL SUCCESSES
When the platform recognizes an online
user that meets the aforementioned
criteria, they will be served an add like
this one:
If users like the offer, the click the
activation button and module will now
integrate cask back program at
customer’s financial institution when a
purchase takes place at online or
physical store.
“CARDLINK” PROGRAMS
OMNICHANNEL SUCCESSES
Target Served
Customers
Impressions Total Trips AOV Revenue Media Fees
Switcher 734 4,250 162 $89.64 $14,521 Neg
Light 10,975 57,169 432 $73.13 $31,590 Neg
New 4,958,374 31,895,042 1,574 $76.82 $120,917 Neg
Campaign Performance:
2,168 Trips accounting for $167,028 in total revenue.
31MM+ impressions generated.
4.9 MM + unique bank customers were served with a Perry Ellis offer
12 to 1 Return on Ad Spend
“CARDLINK” PROGRAMS
OMNICHANNEL SUCCESSES
Target Served
Customers
Impressions Total Trips AOV Revenue Media Fees
Switcher 734 4,250 162 $89.64 $14,521 Neg
Light 10,975 57,169 432 $73.13 $31,590 Neg
New 4,958,374 31,895,042 1,574 $76.82 $120,917 Neg
MY FAVORITE INTANGIBLES:
31MM+ impressions generated.
4.9 MM + TO BRAND NEW, HIGHLY QUALIFIED PEOPLE
- While $120,917 was NTF (new to file) through this attributable record,
our “direct channel” lift was up nearly 310% during active campaign rendering
more than double attributable revenue from Cardlink’s desktop to store
platform.
“CARDLINK” PROGRAMS
OMNI-CHANNEL SUCCESSES (Kinda)
OMNICHANNEL SUCCESSES, (Kinda)
Historically, PEI is a wholesale business, but direct to consumer
model has become a core focus.
- Nearly100 stores globally, mostly in USA with new rollouts planned.
- E-Commerce now a double digit percent of entire DTC business unit, and
quickly catching up to physical stores.
SHIP TO STORE / PICKUP IN STORE
PROGRAM RECENTLY HAD SOFT, LIMITED STORE ROLLOUT
SHIP TO STORE / PICKUP IN STORE
OMNICHANNEL SUCCESSES, (Kinda)
WINS
Freight savings
Posted shipping fees
never cover true costs.
Competitive landscape
denies us the
opportunity to do so
In-store impulse
purchasing
Need some socks for
those shoes you bought
online?
Higher AOV
CHALLENGES
Inventory Alignment
In store stock is never 100%
accurate due to
“lost in store” items.
Site / Store Messaging
“New Arrivals” rarely aligns
with website.
Pricing / Offer Mismatch
Our fault, we should operate
as single entity
Split Shipment Capability
All or nothing fulfillment
SHIP TO STORE / PICKUP IN STORE
OMNICHANNEL SUCCESSES, (Kinda)
TOMORROW TOMORROW
SHIP TO STORE / PICKUP IN STORE
OMNICHANNEL SUCCESSES, (Kinda)
TOMORROW
2015-16 Initiatives
Single Customer
View
Ship FROM Store
Endless Aisle
Personalised
Beacons
SHIP TO STORE / PICKUP IN STORE
OMNICHANNEL SUCCESSES, (Kinda)
PARTNER ECOSYSTEM
.
Operations
Merchandising
Marketing
PARTNER ECOSYSTEM
MARKETING
MERCHANDISING
OPERATIONS
.
Operation
s
Merchan
dising
Marketing
PARTNER ECOSYSTEM
MARKETING
MERCHANDISING
OPERATIONS
MARKETING AFFILIATES
CJ
LINKSHARE
SHAREASALE
IMPACT RADIUS
RETARGETING
CRITEO
ADROLL
MEDIAFORGE
STEELHOUSE
SEO
MOZ
WORDSTREAM
CSE
SHOPPING.COM
SHOPZILLA
PRICEGRABBER
.
Operation
s
Merchan
dising
Marketing
PARTNER ECOSYSTEM
MARKETING
MERCHANDISING
OPERATIONS
MARKETING SEM
GOOGLE
BING/YAHOO
LOCALISATION
TRANSPERFECT
SMARTLING
MOTIONPOINT
SOCIAL
FACEBOOK
TWITTER
INSTAGRAM
PINTEREST
OLAPIC
GIGYA
EMAIL
EXACT TARGET
LISTRAK
BRONTO
RESPONSYS
SILVERPOP
.
Operation
s
Merchan
dising
Marketing
PARTNER ECOSYSTEM
MARKETING
MERCHANDISING
OPERATIONS
MARKETING REVIEWS
POWER REVIEWS
BAZAARVOICE
TURNTO
ANALYTICS
GA PREMIUM
COREMETRICS
VISUAL IQ
ADOMETRY
CRM
SALES FORCE
NETSUITE
MAXIMIZER
SUGAR
PROGRAMMATIC
QUANTCAST
MEDIA MATH
DATA XO
.
Operation
s
Merchan
dising
Marketing
PARTNER ECOSYSTEM
MARKETING
MERCHANDISING
OPERATIONS
OPERATIONS OMS
MAINSTREET
SHOPATRON
CART
DEMANDWARE
MAGENTO
NETSUITE
ATG
HYBRIS
PAYMENTS
PAYMENTECH
AUTHORIZE.NET
ADYEN
WORLDPAY
LOGISTICS
BORDERFREE
FEDEX
SHOPRUNNER
UPS
PITNEY BOWES
.
Operation
s
Merchan
dising
Marketing
PARTNER ECOSYSTEM
MARKETING
MERCHANDISING
OPERATIONS
PARTNER
TIPS
BE NICE
Success is a true
partnership.
Provide constructive
feedback, but also
provide compliments
when they are due.
COMMUNICATION
Email is not enough.
Facetime is critical in
expressing ideas that
are lost in e-mail
context. Brainstorm
and bond with
monthly meetings.
SHARED
ACCOUNTABILITY
OWN IT!
Don’t think “outsource
it and forget it”. Set
reasonable goals and
expectations for each
party. Create
compensation that is
based on
performance.
DON’T BET
THE FARM
Tippy toe into a sea
of success.
No matter how good
the pitch or negotiated
price, try to not
commit to a long term
contract without
testing the waters with
a trial. If the partner is
confident in their
offering, then they
should be receptive
towards a fair short
term sacrifice for a
long term relationship.
THANK YOU
JOSE NINO
JOSE.NINO@PERY.COM
JOSE NINO AS “ROARY”, FLORIDA INT’L UNVERSITY
MASCOT | CIRCA 2007

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Jose Nino: Perry Ellis International Case Study

  • 1. E-Commerce Workshop A Review of Successful Strategies and Promising Trends Jose Nino Perry Ellis International Director of E-Commerce Marketing jose.nino@pery.com
  • 2. E-Commerce Workshop A Review of Successful Strategies and Promising Trends AGENDA About Perry Ellis International (PEI) PEI Online History Trends in USA E-Commerce PEI Crossborder – LATAM What has worked for PEI Omnichannel What has worked for PEI Omnichannel (Kinda) Partner Ecosystem Q&A
  • 3.
  • 5. Perry Ellis Int’l (Nasdaq: PERY) is a leading international manufacturer and marketer of apparel. Its diverse portfolio of brands, either wholly owned or licensed trademarks from third parties, are available through multiple distribution channels. FY14 Revenue: $912M Stores w/PEI Product: 15,000+ Licensing Agreements: 100+ FY14 Units Shipped: 70M+ FY14 DTC E-Com Growth: 45% ABOUT PEI
  • 6. • In 2014, PEI received praise from a leading industry digital ranking. - Four companies received “genius” award, including COACH, Gucci, Tory Burch and Ralph Lauren. - 22 companies received “gifted” award, including Perry Ellis International, Kate Space, Burberry, Calvin Klein, Lacoste, Chanel, Giorgio Armani and others. ABOUT PEI
  • 7. USA: +47% | +27% 2014 vs 2013 E-Com Growth Revenue | Traffic ALL LATAM: +72% | +63% CHINA: +4% | +23% Q1FY16 vs Q1FY15 +46% | +47% ABOUT PEI
  • 8. Never be afraid to take risks, and never take the clothes you wear too seriously. “ “- PERRY ELLIS
  • 9. Sept 1st, 2006 | PerryEllis.com Nov 1st, 2006 | OriginalPenguin.com Mar 1st, 2009 | Cubavera.com Jan 5th, 2014 | PerryEllis.com LATAM Jan 9th, 2012 | Original Penguin UK Jan 5th, 2014 – Jan 4th, 2015 | Cubavera.com LATAM Site circa Sept, 2006 Site circa Nov, 2006 Site circa May, 2009 PEI ONLINE HISTORY
  • 10. Sep 8th, 2008 – Sept 30th, 2014 | Candccalifornia.com Oct 10th, 2011 | RafaellaSportswear.com Oct 27th, 2013 | CallawayApparel.com Jan 5th, 2014 – Jan 4th, 2015 | Rafaella Sportswear LATAM Site circa Oct, 2011 Site circa Sept, 2008 Site circa May, 2013 PEI ONLINE HISTORY
  • 11. TRENDS IN USA E-COMMERCE INDUSTRY TRENDS • 2014 saw 12-15% average growth (depends on who you ask). - Nearly five times greater than growth in U.S. retailing (3.2%) • E-Commerce retail now accounts for 10% of total retail sales. • Consolidation continues in an attempt to maintain market share. - #1 Office supply giant Staples bought #2 office supply giant Office Depot after Office Depot bought #3 office supply giant Office Max in 2012. - Men’s clothing giant Men’s Wearhouse completed hostile takeover of Jos. A Banks in 2014. - 1-800 Flowers purchased Harry & David, a decade’s old purveyor of gourmet food and gifts. USA E-COMMERCE NEARING MATURITY
  • 12. TRENDS IN USA E-COMMERCE • Age of Disruptors: Rise of online only merchants that are exclusively direct to consumer, bypassing margin eroding distribution middlemen. - Dollar Shave Club offering razors at a price point that is roughly 80% cheaper than Gillette. P&G has been forced to revise their marketing campaigns so that their relative value is emphasized. - Warby Parker has disrupted traditional eyewear conglomerates such as Visionworks and Lenscrafters by offering premium eyewear via a direct to consumer model. At roughly 70% less than comparable offline glasses, they recently deployed physical stores to augment their omni- channel fulfillment model. INDUSTRY TRENDS USA E-COMMERCE NEARING MATURITY
  • 13. TRENDS IN USA E-COMMERCE • Ship to store continues to gain momentum. Proven and effective way to increase AOV, primary omni-channel driver. - PEI initial rollout underway for Perry Ellis and Original Penguin stores. - 40% of Home Depot e-commerce orders are shipped to store. Of those orders, nearly 25% of customers purchase an additional item during their store visit to pick up their web order merchandise. • Traditional retailers such as JCPenney, Sears and Best Buy continue to close physical locations and recycle savings into digital operations. - Macys turning flagships into distribution centers for e-commerce decreasing logistics cost and improving delivery times to better compete with Amazon Prime and augment their omni-channel execution . INDUSTRY TRENDS USA E-COMMERCE NEARING MATURITY
  • 14. TRENDS IN USA E-COMMERCE • Flash site popularity continues to diminish, although there are some exceptions. - Stronger economy has led to decreased need for manufacturers to clear inventory. Any activity that does take place are at substantially reduced margins. - As consolidation continues, only a handful of retailers exist thereby impacting brand’s ability to guarantee favorable wholesale prices. This has had an effect on flash site business model sustainability. - After explosive growth in 2009-2011, leaders such as RueLaLa and Hautelook have posted single digit gains in 2014. Previous darlings LivingSocial and Groupon both posted double digit decreases. INDUSTRY TRENDS USA E-COMMERCE NEARING MATURITY
  • 15. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY TRENDS
  • 16. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2005 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE
  • 17. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2005 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE Contextual Display Nonbranded CPC Froogle SEO Shopzilla Branded CPC Affiliates Branded CPC EMails EMails
  • 18. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Loyalty Programs CRM/ESP LTV Analysis Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
  • 19. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS 100% 70% 5 0-15 Days Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital
  • 20. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS 100% 70% 5 0-15 Days Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Last Click Effectiveness: 1 Post Engagement Effectiveness: 4 Incremental Lift Value: 2 Channel Lift: Direct & SEO Last Click Effectiveness: 2 Post Engagement Effectiveness: 7 Incremental Lift Value: 4 Channel Lift: Direct & Paid Search Last Click Effectiveness: 3 Post Engagement Effectiveness: 8 Incremental Lift Value: 5 Channel Lift: Direct & Paid Search Last Click Effectiveness: 1 Post Engagement Effectiveness: 2 Incremental Lift Value: 2 Channel Lift: Direct INFLUENCER MARKETING SOCIAL | LOOKALIKE MODELING SOCIAL | CUSTOM AUDIENCES NATIVE DIGITAL
  • 21. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY 100% 70% 50% 40% 30% 0-15 Days 16-30 31-45 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping
  • 22. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY 100% 70% 50% 40% 30% 0-15 Days 16-30 31-45 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Last Click Effectiveness: 5 Post Engagement Effectiveness: 1 Incremental Lift Value: 5 Channel Lift: Direct & Paid Search Last Click Effectiveness: 4 Post Engagement Effectiveness: 6 Incremental Lift Value: 5 Channel Lift: Direct Last Click Effectiveness: 3 Post Engagement Effectiveness: 4 Incremental Lift Value: 3 Channel Lift: Direct Last Click Effectiveness: 6 Post Engagement Effectiveness: 1 Incremental Lift Value: 3 Channel Lift: Organic Last Click Effectiveness: 8 Post Engagement Effectiveness: 3 Incremental Lift Value: 7 Channel Lift: Paid Search NONBRANDED CPC PROGRAMMATIC OPEN EXCHANGE PROGRAMMATIC PRIVATE MARKETPLACE SEO GOOGLE SHOPPING
  • 23. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
  • 24. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content Last Click Effectiveness: 7 Post Engagement Effectiveness: 3 Incremental Lift Value: 8 Channel Lift: Direct & Display Last Click Effectiveness: 6 Post Engagement Effectiveness: 3 Incremental Lift Value: 6 Channel Lift: Direct & EMail Last Click Effectiveness: 5 Post Engagement Effectiveness: 2 Incremental Lift Value: 4 Channel Lift: Paid Search Last Click Effectiveness: 9 Post Engagement Effectiveness: 2 Incremental Lift Value: 8 Channel Lift: Affiliates Last Click Effectiveness: N/A Post Engagement Effectiveness: 6 Incremental Lift Value: 3 Channel Lift: Organic BEHAVIORAL DISPLAY BEHAVIORAL EMAILS CSEs AFFILIATE MARKETING UGC
  • 25. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
  • 26. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content Last Click Effectiveness: N/A Post Engagement Effectiveness: N/A Incremental Lift Value: 3 Channel Lift: N/A Last Click Effectiveness: N/A Post Engagement Effectiveness: N/A Incremental Lift Value: 2 Channel Lift: Direct Last Click Effectiveness: N/A Post Engagement Effectiveness: N/A Incremental Lift Value: 5 Channel Lift: Direct Last Click Effectiveness: 3 Post Engagement Effectiveness: 4 Incremental Lift Value: 2 Channel Lift: Direct & Affiliates PERSONALIZATION SHOPRUNNER OMNI-CHANNEL FULFILLMENT OMNI-CHANNEL MARKETING
  • 27. TRENDS IN USA E-COMMERCE E-COMMERCE MARKETING & TECHNOLOGY FUNNEL 2015 EXPOSURE AWARENESS DISCOVERY CONSIDERATION CONVERSION RETENTION 100% 70% 50% 40% 30% 20% 10% 3-5% 0-15 Days 16-30 31-45 45-60 60+ AUDIENCE Influencer Marketing Social - Lookalike Modeling - Custom Audiences Native Digital Nonbranded CPC Programmatic Open Exchange Programmatic Private Marketplace SEO Algorithm Adjustments Google Shopping Personalization Shop Runner Omni-channel - Fulfillment - Marketing Loyalty Programs CRM/ESP LTV Analysis Behavioral Display - Retargeting Behavioral Emails - Cart Abandonment - Category Abandonment - Product Abandonment - Editorial CSEs Affiliate Marketing User Generated Content
  • 28. PERRY ELLIS CROSS BORDER | LATAM
  • 29. PERRY ELLIS CROSS BORDER TODAY | LATAM Q1FY16 PEI CROSSBORDER | LATAM
  • 30. PERRY ELLIS CROSS BORDER TODAY | LATAM Q1FY16 COMPS MEXICO Traffic: +72% Revenue: +46% CHILE Traffic: +72% Revenue: +46% GUATEMALA Traffic: +318% Revenue: +187% COSTA RICA Traffic: +318% Revenue: +187% BRAZIL Traffic: +52% Revenue: +146% PEI CROSSBORDER | LATAM
  • 31. TRANSLATION & LOCALIZATION RESOURCES LET TECHNOLOGY DO THE HEAVY LIFTING. THE MAIN TYPES OF TRANSLATION SOFTWARE INCLUDE: Machine Translation This is an automated translation tool, and typically renders results from a crowd sourced database. Most popular option is as Google Translate, as well as Bing Translator. CORRECT PEI CROSSBORDER | LATAM Misinterpreted contextual meaning.
  • 32. Computer Assisted Tools Used primarily by translation and technology industries. “Translation memory” is manually created by humans, not machines, thereby allocating sensitivity around contextual misinterpretations that computers can’t decipher, yet. TBX Markup An extension of translation memory, except much more technical. Its objective is to easily integrate with XML standards for streamlined execution. PEI CROSSBORDER | LATAM LET TECHNOLOGY DO THE HEAVY LIFTING. THE MAIN TYPES OF TRANSLATION SOFTWARE INCLUDE: TRANSLATION & LOCALIZATION RESOURCES
  • 33. DON’T FORGET TO “LOCALIZE” THE TRANSACTIONAL ELEMENT. International Checkout After “localizing” your content, make sure you extend the following efforts to your checkout process: Customers want to see pricing in their local currency. They also want to see VAT/Duty charges for complete transparency and decreased customs surprises. Finally, UPS/Fedex is not the only option, especially overseas where there are cheaper alternatives (DHL). PEI CROSSBORDER | LATAM TRANSLATION & LOCALIZATION RESOURCES
  • 34. PERRYELLIS.COM LATAM INFRASTRUCTURE Proxy based machine translation from …………… Translation Memory Database Proxy Checkout Localization from …………….. Customer PerryEllis.com Customer in Mexico Server API Call PerryEllis.com PEI CROSSBORDER | LATAM TRANSLATION & LOCALIZATION RESOURCES
  • 35. PEI CROSSBORDER | LATAM PERRYELLIS.COM LATAM INFRASTRUCTURE TRANSLATION & LOCALIZATION RESOURCES
  • 36. PEI CROSSBORDER | LATAM PERRYELLIS.COM LATAM INFRASTRUCTURE IF YOU ARE IN MEXICO… TRANSLATION & LOCALIZATION RESOURCES
  • 37. PEI CROSSBORDER | LATAM PERRYELLIS.COM LATAM INFRASTRUCTURE TRANSLATION & LOCALIZATION RESOURCES
  • 38. LOCALIZATION vs LOCALISATION Eyeglasses When localizing your site, keep in mind there are many different interpretations for similar words. Gafas Lentes Anteojos Earrings Pendientes Aretes Aros Aretes Hangover Resaca Cruda Ratón Guayabo TRANSLATION & LOCALIZATION CONSIDERATIONS PEI CROSSBORDER | LATAM
  • 39. Jeans Vaqueros Mezclilla When localizing your site, keep in mind there are many different interpretations for similar words. Vaqueros Vaqueros PEI CROSSBORDER | LATAM LOCALIZATION vs LOCALISATION TRANSLATION & LOCALIZATION CONSIDERATIONS
  • 40. INTERNATIONAL PAID SEARCH Perception Mexico will contribute majority of LATAM revenue. Reality Mexico led LATAM, but only contributed 38% of total LATAM revenue. Who was #2? ECUADOR PEI CROSSBORDER | LATAM
  • 41. Perception Mexico will contribute majority of LATAM revenue. Reality Mexico led LATAM, but only contributed 38% of total LATAM revenue. Who was #2? ECUADOR Highest LATAM Conversion Rate, 3rd globally behind USA and Canada. Highest LATAM Per Session Value, 3rd globally behind USA and Canada. 42% Higher Average Order Value than USA Orders PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
  • 42. Perception Google is as expensive in LATAM as it is in USA & Europe Reality Google is very affordable, and quite effective. Competition is substantially less than USA/Europe, thereby decreasing costs for complete share of voice. Perry Ellis branded keywords around about 65% less expensive than in USA. Non branded keywords are about 80% less expensive than USA. CTR (Click-thru rates) on average are 322% higher than counterparts in USA. PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
  • 43. Perception Display options are as varied in Mexico as they are in USA. Reality Display has yet to mature in Mexico/LATAM. Actual Display Costs in Mexico Cost per Click: $.07 - $.15 Estimated CPM: $.25 - $.50 Actual Display Costs in USA Cost per Click: $.23 - $.40 Estimated CPM: $2.25 - $3.50 PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
  • 44. Perception We’ll do the same CPC efforts in LATAM as we do in USA. Reality Search programs vary greatly LATAM. Know product preferences in each region. We’ve seen products trend very differently when comparing USA best sellers and LATAM best sellers. Perfume seems to have much more traction in LATAM compared to USA, and Europe. PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
  • 45. Perception We’ll just do the same CPC efforts in LATAM as we do in USA. Reality Search programs vary greatly LATAM. Know where your share is. Unlike USA, interest pockets are isolated, far and few in between. Because broadband costs are relatively expensive, it is not as penetrated as other industrialized nations. Therefore, geo-target search campaigns as necessary. PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
  • 46. ACTUAL VIDEO METRICS 23% 24% 22% 21% 10% Percent of People who Viewed 1/4 Length of Video. Mexico Colombia Peru Chile 21% 22% 19% 17% 21% Percent of People Who Viewed Entire Video Mexico Colombia Peru Chile PEI CROSSBORDER | LATAM INTERNATIONAL PAID SEARCH
  • 47. 0% 5% 10% 15% 20% 25% 30% 35% 40% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile Honduras Puerto Rico El Salvador Guatemala Panama Peru Venezuela Bolivia Nicaragua Uruguay % of LATAM Population (Exc. Argentina & Brazil) % of LATAM Sites Revenue Total (Exc. Argentina & Brazil) PEI CROSSBORDER | LATAM ALL PEI LATAM SALES 2014INTERNATIONAL PAID SEARCH
  • 48. 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile Honduras Puerto Rico El Salvador Guatemala Panama Peru Venezuela Bolivia Nicaragua Uruguay United States Branded Fragrances CTR PEI CROSSBORDER | LATAM ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
  • 49. 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile Honduras El Salvador Guatemala Panama Peru Nicaragua United States Branded Dress Shirts CTR PEI CROSSBORDER | LATAM ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
  • 50. 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Mexico Ecuador Dominican Republic Colombia Costa Rica Chile El Salvador Panama Peru Nicaragua United States Nonbranded Pants CTR PEI CROSSBORDER | LATAM ACTUAL PEI LATAM PPC YTDINTERNATIONAL PAID SEARCH
  • 51. Each country has their own set of rules, making cross border commerce a complicated endeavor. MEXICO Credit card penetration is growing, but still very low as only 13-16% of population has credit cards. Many online currencies are preferred. IVA (Value Added Tax) is 10-16% E-Wallet, led by Mercado Libre’s “Mercado Pago”, facilitates virtual wallet use. Users can load funds via debit, bank deposits, between users and convenience stores. Paypal on steroids. PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
  • 52. Each country has their own set of rules, making cross border commerce a complicated endeavor. CHILE Credit card penetration is growing, but still very low as only 15-18% of population has credit cards. Like Brazil, “Boletos” are an alternative online payment method. Duties range from 6-16.5%, VAT @ 19%, Luxury Tax @ 50-85% PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
  • 53. $100 Basket Shipping Fees 0% 5% 10% 15% 20% 25% PercentofOrderTotal PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
  • 54. $100 Basket Duties & VAT PercentofOrderTotal 0% 5% 10% 15% 20% 25% 30% PEI CROSSBORDER | LATAM PAYMENTS, TAXES & RESTRICTIONS
  • 55. AFFILIATE MARKETING | CJ LATAM PROGRAMMATIC DISPLAY PERSONALISED & BEHAVIORAL EMAILS Affiliate marketing currently makes up 8-10% of E-Commerce industry revenue. This number is much higher for PEI, and an excellent source of traffic. LTV benefits greatly outweigh initial promotional margin impact. Still in its infancy in LATAM. Mediadesk leading, as Mediamath and Quantcast have Mexico on its radar. Private marketplace deals have started to appear with Televisa and Time Inc (People en Espanol). Excellent method of driving upper funnel engagement towards conversion. We have spent much of the past year compiling our LATAM e-mail database, but have yet to send one single Spanish e-mail. This year we will introduce personaliSed, CRM driven newsletters in addition to behavioral e-mails based on cart, product and category abandonment. PEI CROSSBORDER | LATAM TOMORROW
  • 57. RetailMeNot Omni-Channel Couponing Objective is to drive in-store purchasing via online or mobile device influencing. “Creepy” technology has rendered huge results • Delivery mechanisms consist of: - Offer browsing by brand - Offer browsing by mall - Radius mapping Offer browsing by brand, note mall option tab. Nearby in-store offers based on radius from current location. OMNICHANNEL SUCCESSES MOBILE GEOFENCING
  • 58. RetailMeNot Omni-Channel Couponing • Delivery mechanisms consist of: - Geofencing OMNICHANNEL SUCCESSES MOBILE GEOFENCING
  • 59. RetailMeNot Users Exposed to Perry Ellis Offer: RetailMeNot Users Who Visited Perry Ellis Offer: RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | PERRY ELLIS STORES - In-store focused placements helped drive user engagement through a 645% lift in average daily interactions - Mondays had the overall highest traffic for the week - 70% of mobile traffic came from outside the geo-fenced store locations, showing true “incrementality” and “Top of Funnel” user engagement OMNICHANNEL SUCCESSES MOBILE GEOFENCING
  • 60. RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | PERRY ELLIS STORES OMNICHANNEL SUCCESSES Data relates to device use per coupon. - Users received promotions via traditional e-mail from RMN or geofence pushing. - Vast majority redeemed with mobile device - Geofence push rendered an impulse buy. - The tighter the radius, the higher the redemption rate. MOBILE GEOFENCING Mobile Clicks Desktop Clicks Tablet Clicks
  • 61. RetailMeNot Users Exposed to Original Penguin Offer: RetailMeNot Users Who Visited Original Penguin Offer: OMNICHANNEL SUCCESSES RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | ORIGINAL PENGUIN STORES - Fridays had the highest visits overall. - Mobile exposures were a key success driver for the campaign - 75% of mobile traffic came outside of geo-fenced store locations, showing true incrementally and top of funnel user engagement. MOBILE GEOFENCING
  • 62. OMNICHANNEL SUCCESSES RETAILMENOT MOBILE GEOFENCING PERFORMANCE CONCLUSIONS | ORIGINAL PENGUIN STORES Data relates to device use per coupon. - Users received promotions via traditional e-mail from RMN or geofence pushing. - Vast majority redeemed with mobile device - Geofence push rendered an impulse buy. - The tighter the radius, the higher the redemption rate. MOBILE GEOFENCING
  • 63. RESULTS OMNICHANNEL SUCCESSES 973 In-Store Redemptions AOV: $104.88 (+13% VS E-COM $92.33 AOV) REVENUE: $102,048 COMMISSION: $10,204 NTF: 82% SIX MONTH LTV: $35,103 2,789 In-Store Redemptions AOV: $82.18 (+11% VS E-COM $74.12 AOV) REVENUE: $229,200 COMMISSION: $22,920 NTF: 67% SIX MONTH LTV: $82,512 MOBILE GEOFENCING
  • 64. OMNICHANNEL SUCCESSES “CARDLINK” PROGRAMS OBJECTIVE: LEVERAGE U.S. CONSUMER BEHAVIOR FOR PROFILE LOOKALIKE SEGMENTING. “Switcher” Retention “Light” Change Behavior “New” Conquest Reinforce the behavior of your Frequent Customers so they continue to shop at your brands Increase visits from Infrequent Customers by enforcing brand loyalty with Perry Ellis/ Original Penguin Target and acquire New Customers for both brands Target Segment Targeting Criteria Frequent (3x or more in 6 months) Visit Perry Ellis or Original Penguin 3x or more in the past 6 months Infrequent (1-2x in 6 months) Visit Perry Ellis or Original Penguin 1-2x in the past 6 months New (0x in 6 months) New (Apparel Stores)
  • 65. OMNICHANNEL SUCCESSES Vendors typically work with thousands of financial institutions, allowing for visibility into 150M+ “anonymous” customer data. Purchase patterns, “like” retail category purchases and target demos segment massive data pools Perry Ellis “CARDLINK” PROGRAMS
  • 66. OMNICHANNEL SUCCESSES When the platform recognizes an online user that meets the aforementioned criteria, they will be served an add like this one: “CARDLINK” PROGRAMS
  • 67. OMNICHANNEL SUCCESSES When the platform recognizes an online user that meets the aforementioned criteria, they will be served an add like this one: If users like the offer, the click the activation button and module will now integrate cask back program at customer’s financial institution when a purchase takes place at online or physical store. “CARDLINK” PROGRAMS
  • 68. OMNICHANNEL SUCCESSES Target Served Customers Impressions Total Trips AOV Revenue Media Fees Switcher 734 4,250 162 $89.64 $14,521 Neg Light 10,975 57,169 432 $73.13 $31,590 Neg New 4,958,374 31,895,042 1,574 $76.82 $120,917 Neg Campaign Performance: 2,168 Trips accounting for $167,028 in total revenue. 31MM+ impressions generated. 4.9 MM + unique bank customers were served with a Perry Ellis offer 12 to 1 Return on Ad Spend “CARDLINK” PROGRAMS
  • 69. OMNICHANNEL SUCCESSES Target Served Customers Impressions Total Trips AOV Revenue Media Fees Switcher 734 4,250 162 $89.64 $14,521 Neg Light 10,975 57,169 432 $73.13 $31,590 Neg New 4,958,374 31,895,042 1,574 $76.82 $120,917 Neg MY FAVORITE INTANGIBLES: 31MM+ impressions generated. 4.9 MM + TO BRAND NEW, HIGHLY QUALIFIED PEOPLE - While $120,917 was NTF (new to file) through this attributable record, our “direct channel” lift was up nearly 310% during active campaign rendering more than double attributable revenue from Cardlink’s desktop to store platform. “CARDLINK” PROGRAMS
  • 71. OMNICHANNEL SUCCESSES, (Kinda) Historically, PEI is a wholesale business, but direct to consumer model has become a core focus. - Nearly100 stores globally, mostly in USA with new rollouts planned. - E-Commerce now a double digit percent of entire DTC business unit, and quickly catching up to physical stores. SHIP TO STORE / PICKUP IN STORE
  • 72. PROGRAM RECENTLY HAD SOFT, LIMITED STORE ROLLOUT SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
  • 73. WINS Freight savings Posted shipping fees never cover true costs. Competitive landscape denies us the opportunity to do so In-store impulse purchasing Need some socks for those shoes you bought online? Higher AOV CHALLENGES Inventory Alignment In store stock is never 100% accurate due to “lost in store” items. Site / Store Messaging “New Arrivals” rarely aligns with website. Pricing / Offer Mismatch Our fault, we should operate as single entity Split Shipment Capability All or nothing fulfillment SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
  • 74. TOMORROW TOMORROW SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
  • 75. TOMORROW 2015-16 Initiatives Single Customer View Ship FROM Store Endless Aisle Personalised Beacons SHIP TO STORE / PICKUP IN STORE OMNICHANNEL SUCCESSES, (Kinda)
  • 78. . Operation s Merchan dising Marketing PARTNER ECOSYSTEM MARKETING MERCHANDISING OPERATIONS MARKETING AFFILIATES CJ LINKSHARE SHAREASALE IMPACT RADIUS RETARGETING CRITEO ADROLL MEDIAFORGE STEELHOUSE SEO MOZ WORDSTREAM CSE SHOPPING.COM SHOPZILLA PRICEGRABBER
  • 80. . Operation s Merchan dising Marketing PARTNER ECOSYSTEM MARKETING MERCHANDISING OPERATIONS MARKETING REVIEWS POWER REVIEWS BAZAARVOICE TURNTO ANALYTICS GA PREMIUM COREMETRICS VISUAL IQ ADOMETRY CRM SALES FORCE NETSUITE MAXIMIZER SUGAR PROGRAMMATIC QUANTCAST MEDIA MATH DATA XO
  • 82. . Operation s Merchan dising Marketing PARTNER ECOSYSTEM MARKETING MERCHANDISING OPERATIONS PARTNER TIPS BE NICE Success is a true partnership. Provide constructive feedback, but also provide compliments when they are due. COMMUNICATION Email is not enough. Facetime is critical in expressing ideas that are lost in e-mail context. Brainstorm and bond with monthly meetings. SHARED ACCOUNTABILITY OWN IT! Don’t think “outsource it and forget it”. Set reasonable goals and expectations for each party. Create compensation that is based on performance. DON’T BET THE FARM Tippy toe into a sea of success. No matter how good the pitch or negotiated price, try to not commit to a long term contract without testing the waters with a trial. If the partner is confident in their offering, then they should be receptive towards a fair short term sacrifice for a long term relationship.
  • 83. THANK YOU JOSE NINO JOSE.NINO@PERY.COM JOSE NINO AS “ROARY”, FLORIDA INT’L UNVERSITY MASCOT | CIRCA 2007