prepaid summit 2010 di marco (final)
DESCRIPTION
Digital contents, gift cards and a worldwide cash in networkTRANSCRIPT
A Euronet Worldwide Company
New trends in the Gift Cards markets & global cash collection in Europe
Giuseppe Di Marco
epay Italy Managing Director
Prepaid Cards Summit
Milan, 13th of October 2010
A Euronet Worldwide Company
Contents of PresentationToday there are two main drivers that are pushing the prepaid digital market:
(becoming Digital Goods)
(mobile phones, music players, game consoles, E-books readers, TVs, tablets, etc.)
This market involves many players:Large Retailers (willing to sell their goods using new ways)
Contents Providers (needing new ways to distribute and sell their products)
Devices suppliers (aiming to fill their new marvels)
TelCo Companies (bored to provide roads making other to get the money)
Financial Institutions (interested in new ways of managing payments)
Trusted Third Parties (needed to integrate all these players)
We will go through this new way of selling goods
2
A Euronet Worldwide Company
Evolution of virtual goodsThe evolution of virtual goods, maybe, is not giving us the right perspective:
Once there were just Mobile Top Ups and other telephone related products. This has been and is even now a huge market. But the margins are decreasing
Other products joined the Mobile Top Ups:Pay TV Top Ups
Financial Products (Open Loop Cards, eVouchers, etc.)
Music Top Ups (i.e.iTunes Cards)
Moreover many Retailers and Contents Providers created their own Cards
All of them have been seen as Cards, Gift Cards, in general PRODUCTS
But, given the wide range of virtual goods might be, we need to change the focus we look at this market
3
A Euronet Worldwide Company
Today Cards and Gift Cards have become a CATEGORY - these are no more just a product!
A Euronet Worldwide Company5
Gift Card How much
Did you know that: *Today the Gift/Prepaid Category
The #2 category in sales at grocery storesThe #1 fastest growing categoryThe #1 in margin per square meterThe #1 in revenue per square meter
The average overspend amount is 72%
* Source: FirstData
A Euronet Worldwide Company6
Gift Card - Why
Why a Customer decide to choose a card as a gift? *
Receiver can buy what they want71%
Convenient to purchase50%
Flexibility in redeeming a gift card35%
He doesn't know what else to buy the gift receiver33%
* Source: FirstData
A Euronet Worldwide Company
How to approach to the European gift card world
Distribution
Content
New Products
We need to make the flyweels start....
on the Consumer side and ...
... on the Retailer side
7
A Euronet Worldwide Company
Distribution
Content
New Products
RETURN ON INVESTMENT
8
How to approach to the European gift card world
DESIRE FOR A VARIETY
CONVENIENCE & TARGETING
PROMOTION & INNOVATION
SERVICES
TURNKEY SOLUTIONS
A Euronet Worldwide Company
Marketing and destination merchandising
Source: Mercator, 12/09
consumer brands
Destination merchandising
both in store and in third party
malls
Increased sales, profits and brand
exposure
9
A Euronet Worldwide Company10
How to approach the ConsumersDESIRE FOR VARIETY
Today the European prepaid market is dominated by Mobile Top Ups
We need to enrich this offer, even if already important, with a wide range of products, that is extending in different sectors, both Global and Local contents:
Digital Contents: Gaming, Music, eBooks, Software, Social Networks Credits, etc.
Physical Contents: Fashion, Electronics, Toys, Dining Out, Pet, Travel, Recreation, Luxury, Home, etc.
Transportation and Ticketing (Transit)Financial Products: Open Loop Cards, eVouchers, etc.
A Euronet Worldwide Company11
How to approach the ConsumersCONVENIENCE & TARGETING
Different Targets for the different Retailers:Once in 2 months
Large Retailers:Women 25/65
(The Decision Maker)
Independent Retailers:Cross 15/65
(The Self-Shopper)
TARG
ET
Electronic Large Retailer:
Adults 25/40 (The Specialist)
People buy here specific products: accessories for pc,
People buy here products and servicesTop ups, pay TV recharge,
People go here for grocery shopping They can find also other services:
Once a week
Once a day
Through the Gift Card Mall, choice has extended, and cards,issued by a company, may be sold through a wider network (Hypermarkets,Supermarkets, Convenience Stores, Bars, Newsagents, etc.)
A Euronet Worldwide Company12
How to approach the Consumers
INNOVATION
We have to find the best ways and releasesoon new solutions to integrate the giftcards with the contactless technology togive new services to the customers
We must deliver new applications to bring the Gift Cards, Couponing and other related contents on smart phones and on the other types of new devices very shortly
A Euronet Worldwide Company13
How to approach the RetailersTURN-KEY SOLUTIONS
Technology, Merchandising and logistics: sales systems (cash registers and POS Terminals) integration, card printing, fixture installation, display maintenance, inventory management
Marketing and promotion: full loyalty program to allow SMS, email, and or mail campaign management
B2B Sales: availability of sales portal to allow marketing to B2B customers including ordering, shipping and fulfillment
RETURN ON INVESTMENT
When redeeming their gift card, over a quarter of receivers purchase an item they had not planned to spend money on and an additional one in ten buy a more expensive version of an item they were already planning to buy
Gift cards are a great way for businesses to spread the brand, while simultaneously improving cash flow (the gift card sales are for a retailer a no-interest cash advances)
A Euronet Worldwide Company14
How to approach the RetailersVALUE ADDED SERVICES
The Merchants platform must allow consumers to self-register, so Merchants can truly acquire their customers
Self registration allows card issuers to capture names, addresses, phone numbers, email addresses, and demographic information
The Merchants platform must allow card issuers tools to send SMS messages, create cash back or points-based promotions, couponing, create email campaigns, or send direct mail offers to consumers
A Euronet Worldwide Company15
Case History: Euronics
Euronics is one of the major Electronic Large Retailer in Europe and in Italy there are 270 Points of Sale, active to epay system
Closed-loop gift card, issued in 3 denominations:
50 euro
100 euro
200 euro
Can be used also for the Internet purchases
Target: not only B2C, but also B2B
A Euronet Worldwide Company16
THANK YOU
For further information:Giuseppe Di Marco
[email protected]: +39 335 7716461