reaching diverse populations across europe with a retail proposition

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internetretailing.net/ireu The InternetRetailing Europe Top500 Reaching diverse populations across Europe with a retail proposition

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Page 1: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The InternetRetailing Europe Top500

Reaching diverse populations across Europe with a retail proposition

Page 2: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

InternetRetailingMagazine, news, research, and eventstwitter: @etail

email: [email protected]

internetretailing.net/subscribe – newsletter or magazine/iruk – UK Top500 (IRUK 500)/ireu – Europe Top500 (IREU 500)

Martin Shaw, head of researchtwitter: @etail_martin

email: [email protected]

Page 3: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Question

• Top500 overview

• Where they operate

• Language localisation

• Product display and

merchandising

How does one reach the diverse populations across Europe with a retail proposition?

• Email communication

• Customer service

• Omnichannel retail

• Servicing the order

• Innovation and the future

Page 4: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Europe Top500 in a Nutshell

• Membership: The largest 500

• A performance index: “Retailcraft”

• Six areas or “dimensions”

• Seven reports (different topics) per year

Page 5: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

“Footprint” Size

❖ Retail revenue – average €2.1 billion

❖ Ecommerce revenue – average €323 million

❖ Pageviews per annum – average 700 million

❖ Physical locations (stores) – average 400

Page 6: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Largest 50 in Europe

Page 7: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Largest 100 in Europe

Page 8: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Largest Market

Percentage of the Top500 for which this country is the largest Footprint market

Page 9: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Where They Trade

Percentage of the Top500 operating in this country

Page 10: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Page 11: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Page 12: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The UK Top500 in the Single Market

The number of UK Top500 retailers with a significant presence (> €1m revenue p.a.) in this country

France 68

Germany 60

Spain 48

Italy 47

The Netherlands 46

Belgium 41

Page 13: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Market CompetitivenessAustria 1

Netherlands 2Germany 3

United Kingdom 4Italy 5

Belgium 6Greece 7

Norway 8Sweden 9

Denmark 10Switzerland 11

France 12

Spain 13Finland 14Poland 15

Slovakia 16Czech Republic 17Ireland (Rep.) 18

Latvia 19Hungary 20Portugal 21

Luxembourg 22Romania 23

Page 14: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Distribution: Multichannel vs. Online-only

Multichannel Online-only

Number in the Top500 415 85

Fraction with significant* trade in five or more member states

12% 13%

*Ecommerce revenue > €100,000 p.a.

Page 15: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Largest 50 – Online-only Emboldened

Albert Heijn Deichmann JYSK Pull & BearAmazon Douglas Kik Rossman

Apple E.Leclerc Leroy Merlin Sainsbury’sArgos Eroski Lidl ScrewfixAsda Euronics M&S Spar

Auchan Expert Mango SportsDirect.comA.S. Adventure F&F Media Markt Tchibo

Bershka George at Asda Next TescoBoots H&M Nike TK MaxxC&A Iceland Otto United Colors of Benetton

Carrefour IKEA Pandora Yves RocherCoop IKKS Post Office Shop Zara

Decathlon Intersport

Page 16: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Most-trafficked Ecommerce Website for This Country (Online-only Emboldened)

Austria amazon.de*Belgium ebay.be*Bulgaria remix.bg

Switzerland zalando.chCyprus ikea.com.cy

Czech Republic alza.cz*Germany ebay.de*Denmark ikea.comEstonia euronics.ee*Spain amazon.es*

Finland hm.comFrance amazon.fr*

United Kingdom ebay.co.uk*Greece e-shop.gr*Croatia ikea.com

*marketplace retailers

Hungary hm.comRepublic of Ireland ebay.ie*

Iceland ikea.isItaly ebay.it*

Lithuania ikea.comLuxembourg zara.com

Latvia avon.lvMalta lidl.com.mt

Netherlands bol.comNorway komplett.noPoland allegro.pl*

Portugal fnac.ptRomania emag.ro*Sweden tradera.com*Slovenia mimovrste.com*Slovakia alza.sk*

Page 17: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Where and When Does Language Localisation Matter?

❖ 37 official languages in the EEA

❖ 310 (67%) of the Top500 trade in just one language

❖ 100 (20%) trade in at least four languages

Page 18: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Share of Localised Websites in a Non-Local Language

Non-local Language ShareFinland 38%

Denmark 29%Iceland 25%Sweden 23%Norway 22%

Czech Republic 20%Poland 20%

Germany 12%France 11%

United Kingdom 1%

Page 19: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Page 20: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Email’s Role

❖ Primary communication channel with customers

❖ Mostly on mobile devices

❖ Powerful with segmentation

Page 21: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Email Communication Study

❖ Emails from 25 retailers

❖ Panellists (consumers) in three countries

❖ Two months in early 2016

❖ 900,000 emails measured

Page 22: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu Study was run in collaboration with ReturnPath

-2.8%

29.9%

3.7%

-9.3%

2.8%

-5.6%-11.2%

-33.9%

2.2%

-17.2%

5.6%

1.7%

2.8% 1.7%

11.3%

-2.3%

6.1%

-4.2%

5.2%

-7.5%

-9.4%

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Email Open Rates: Day of the Week Sent(difference from the average)

Germany France United Kingdom

Page 23: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu Study was run in collaboration with ReturnPath

-1.9%

4.7%

-3.7%

13.1%14.4%

-1.7%

0.6%

-10.0%

1.9%

10.8%

-5.6% -6.1%

Pre-dawn (00:00-06:00) Morning (06:00-12:00) Afternoon (12:00-18:00) Night (18:00-24:00)

Email Open Rates: Time of the Day Sent(difference from the average)

Germany France United Kingdom

Page 24: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu Study was run in collaboration with ReturnPath

-6.5%

3.9% 5.6%

0.0%2.8%

0.0%0.9%

-8.3% -7.5%

Germany France United Kingdom

Email Open Rates: Use of Capitalisation(difference from the average)

Low Medium High

Page 25: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu Study was run in collaboration with ReturnPath

4.5% 5.0%

10.3%6.5%

-3.3%-6.1%

-9.3% -8.9%

-26.8%

Germany France United Kingdom

Email Open Rates: Length of Subject Line(difference from the average)

Short Medium Long

Page 26: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu Study was run in collaboration with ReturnPath

0.0% 0.0% 0.5%

-5.6%

0.0%

-3.3%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%Germany France United Kingdom

Email Open Rates: Using a Question(difference from the average)

No question Question

Page 27: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu Study was run in collaboration with ReturnPath

-0.9%

-5.6%

1.4%

3.7% 3.3%

-4.7%-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%Germany France United Kingdom

Email Open Rates: Using an Exclamation(difference from the average)

No exclamation Exclamation

Page 28: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Customer Service Response Times

(Email and Facebook)

Page 29: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Channels to the CustomerMost-prevalent in this country % of IREU 500 to offer the channel

Facebook Belgium 100%

Twitter Netherlands 100%

YouTube Poland 54%

Instagram Netherlands 38%

Google+ Italy 37%

Pinterest Netherlands 29%

Live Chat Sweden 14%

Email (not including submission form)

United Kingdom 11%

Blog United Kingdom 8%

LinkedIn Portugal 6%

Page 30: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Omnichannel Retail

❖ 32% of multichannel retailers in the Top500 offer return-to-store for ecommerce orders

❖ 52% of the Top500 offer click and collect

Page 31: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Knowing the Customer

❖ Personalising the shopping experience

❖ Identifying trends

❖ Predicting demand

Page 32: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Servicing the Order

❖ Delivering what was promised

❖ Adapting to the growing share of sales from ecommerce

❖ Innovating in line with customer expectations

Page 33: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The Fastest ‘Standard’ Delivery

The Top500’s average ‘standard’ delivery time in a country, in business days. Countries where fewer than 30 operate are not listed.

Page 34: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Countries with Highest Average Number of Fulfilment Options

United KingdomFrance

NorwayCzech Republic

SpainBelgiumGreece

GermanyItaly

Denmark

Page 35: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Avoiding Logistics Pitfalls

❖ Keep all parts of the business aware of the others activities and capabilities, resulting in over-selling, under-delivering, and missed opportunities

❖ Market only what can be delivered

❖ Identify bottle necks

Page 36: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Back to the Question

❖ Adaptability and experimentation

❖ Full multichannel – single view of customer and stock

To reach the diverse populations across Europe with a retail proposition:

Page 37: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Trends

❖ Expanded role for ecommerce ‘gate-keepers’

❖ Programmatic commerce

❖ Automation

Page 38: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

Continuing Research

❖ Predictive Index

❖ Changing retail proposition

❖ Year-on-year change

Page 39: Reaching Diverse Populations across Europe with a Retail Proposition

internetretailing.net/ireu

The InternetRetailing Europe Top500

Reaching diverse populations across Europe with a retail proposition