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New Opportunities in the Connected World September 2014

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Page 1: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

New Opportunities in the

Connected World

September 2014

Page 2: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

We are living in the age of ‘always on’

Online shopping continues to grow in the UK each year.

Today, consumers across the globe are connected whenever and

wherever they go. This poses a huge opportunity for businesses who

embrace online.

But it’s not just in the UK where businesses can prosper; a grasp of digital

can put you ahead of the competition in overseas markets.

Percentage of people

who buy online1:

1 Connected Consumer Study, 2014

Page 3: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

The time is now

A number of markets are prime for businesses to grasp

the export opportunity through digital engagement.

2 Euromonitor, Forrester, Mintel, World Bank, WTO, Crystal 2003, OC&C analysis OC&C analysis

Market readiness framework2

Page 4: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

The global opportunity online is growing

While there are 2.8 billion people

online today, that’s still only 39% of

the global population3

3 eMarketer, November 2013

4 Eric Schmidt estimate

Looking forward to 2020 it is predicted that

there will be 8 billion people online –

many connecting via smartphones4

So now is the time to embrace the global online opportunity.

Page 5: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

The “Made in Britain” business

These businesses know that their country of origin can help drive sales – leading to a new

generation of brands. These brands have successfully used the internet to help globalise and

gain international fame.

5 Global Retail e-mpre, OC&C, 2014

Top international brands5

100

98

95

93

91

94

95

95

93

95

99

100

93

90

87

100

92

87

86

81

Page 6: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

The “Global Pure Play” business

These business succeed across markets. Consumers often don’t care or know where a business

is based if the product and service is good, andthe local web experience right.

6 Global Retail e-mpre, OC&C, 2014

100

97

87

90

76

79

67

71

63

100

100

96

79

77

59

93

100

88

79

53

Pure Play top 5 international e-

Retailers6

Page 7: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

The “Borderless Consumer”

When shopping online, consumer purchasing decisions are often not affected by the origin of the

business offering the product or service.

While this could pose a threat to business through increased competition from overseas, it also

brings huge opportunity – opening doors for expansion into new markets with new customers.

Where do you think ASOS is from?7 Where do you think Booking.com is from?8

74% of people in the US didn’t know

that ASOS are from the UK.

When told over 80% said that would not affect the

likelihood of buying from them again.

96% of people in the UK didn’t know that

Booking.com are from the Netherlands.

When told nearly 90% said that would not affect

the likelihood of buying from them again.

7 & 8 Google Consumer Survey of US and UK 2014

Page 8: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

New businesses have global expansion in their DNA

Increasingly, new online businesses are grasping the opportunity

of digital - disrupting existing businesses at home and quickly expanding internationally.

It no longer takes decades for businesses to go global, it takes years.

Years to expand out of domestic market9

9 Press Search, Company Websites, OC&C analysis

Page 9: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

All businesses can take advantage

of the global marketplace

All businesses – whether big or small, old or new – have a

huge audience at their fingertips and can use the internet

to:

Identify the best markets to enter.

Develop their marketing to

effectively engage with

local customers.

Reduce the time, cost, logistics

and need for a physical

presence to try new markets.

Page 10: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

But businesses must adapt to different

local characteristics

To understand the complexities of the different markets businesses have a number of resources at

hand.

Including the Google Export Business Map – giving country specific details all in one place.

10 The CIA World Factbook, 2012

11 Connected Consumer Study, 2014

12 European Commission, 2006

13 Our Mobile Planet, 2013

For example, in the Netherlands...

No. 8 for export in

the world, with $577

billion exported10

65% buy things online11

87% of Dutch people

speak English12

67% of people

don’t leave the

house without their

smartphone13

Page 11: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

Who knew?

14 eMarketer, August, 2013

15 eMarketer, February, 2012

16 Customer Journey to Online Purchase, 2013

Tools and research on the internet allow businesses to explore new markets

and find interesting opportunities to adapt their marketing and business needs.

Mobile penetration in

the USA is 111.9%14

Use of social networks grew by

20% in China in 201315

In France display ads are

the best medium to raise

awareness vs. email in

Germany and Social in UK16

Page 12: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

These opportunities aren’t restricted by industry

Global digital expansion is relevant across virtually all sectors including:

17 Market Reports by Vertical, OC&C analysis

UK eCommerce Exports £bn Estimates17

Page 13: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

Case study: World First

As the leading foreign exchange company in the UK,

World First needed to develop their marketing strategy to

grow globally.

Search played a central part in the strategy and Google

tools, enabled World First to see what was working most

effectively and to refine the campaign along the way to

drive traffic to their site.

The insight was that more people were using mobile. So,

World First developed a new mobile site which enabled

them to grasp opportunities brought to them by new

behaviours and to reach people who want to transact with

World First in any way that they want.

Ultimately, they increased monthly conversions to over

200% and reduced cost per conversion by 40%.

World First used country-specific insights to design their

search engine marketing campaigns on Adwords.

Page 14: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

Interview: Ralph Lauren

Serge Acker, SVP, Digital Marketing & eCommerce, Ralph Lauren on:

Technology allows us to be very specific, very locally driven… it

goes back to that idea of data...how a British person is going to

shop, how a French person is going to shop may be different,

yesterday these were assumptions. Today they can be a fact

just by going through our data.

Data informing localisation

The international success of an organisation such as ours is

predicated upon the ability to build a global framework that is

able to then serve local needs. So that means a global shared

services team that is able to build for scale and local teams that

are able to understand the local specificities... so, stay local.

Build a global framework, but stay local

See full interview

Page 15: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

Interview: MATCHESFASHION.COM

See full interview

Ulric Jerome, Partner & COO, MATCHESFASHION.COM on:

Rebranding from Matches to MATCHESFASHION.COM:

Transitioning from a store-based business to a global player

We are a technology company now who happens to sell

high-end fashion products.

The selection of the products on the website first started

to create the buzz...after that it is all about execution. How

do you make sure the world has all the visibility on the

MATCHESFASHION.COM website?

Two years ago less than 50% of our sales were online...

today it’s 70% and the next two years it will be 90%… and

70% of our online sales are now from outside the UK.

Page 16: New Opportunities in the Connected Worldthink.storage.googleapis.com/intl/ALL_uk/docs/... · online today, that’s still only 39% of the global population3 3 eMarketer, November

The time to expand is now

Your customers are always on, whenever and wherever they are and

wherever they go

Online has broken down international trading barriers

Now is the time to expand your business

and reach new markets

Where is your next opportunity?

Use Google tools here