eRetail Europe - Simone Saneback & Henrik Nilson - Smartguy Stylepit

#eRETAILEurope

SÏMON SANEBACK

SMARTGUYSTYLEPIT

WHO IS THIS GUY?yet just another ”smart guy”

NAME: Sïmon Saneback

POSITION: CSO of SmartGuy/StylePit and part of Management team.

BACKGROUND: Entrepreneur with 10+ years experience in e-business.

GOAL: Help StylePit become #1 within online fashion in Europe.

ABOUT: StylePit is a leading Nordic mutli-brand online fashion retailer.

REVENUE: ~60 MEUR

LOCATION: Based in 20 countries. 250 employees with HQ in Jyderup, Denmark

SHARES: Listed on Danish stock exchange with current market cap of appr. 100 MEUR.

ABOUT STYLEPIT13 years in the making

OUR MARKETSover 20 countries around Europe

OFFICES: Headquarters in Denmark & 6 local offices.

IT, TRANSLATIONS & CUSTOMER SERVICE: Located in Dnipropetrovsk, Ukraine.

WAREHOUSE: Currently moving from Denmark to Szczecin (Stettin) in Poland.

WE’RE OLD BUT STRONGStylePit was founded in 2000 and has evolved significantly during these 13 years

2000

2013

FASHION ONLINEmany challenges, demands and low profitability

Local social networksConnected devices

CompetitionPayments

OrganisationLegal aspects

Customer ServiceBrand knowledge

Return managementWarehouseLogisticsTaxesCustomsTranslationDiscount rulesLocal marketplaces

STYLEPIT MILESTONESthe story of a profitable company

NEVER STOP OPTIMIZINGContinuously optimizing the concept is part of StylePit’s DNA

CONCEPT EVOLUTIONWe are never satisfied. Are you?

EXTENSIVE RANGE OF BRANDSover 1.000 brands online

STYLEPIT DNA

Continuously optimizing the concept is part

of our DNA

WEBSITE

- High usability- Website performance- Continuous tests- SEO optimization

ORGANISATION

- 250 team members- LEAN program

MARKETING & CUSTOMERS

- Build customer base- Increase purchase size- Loyalty programs- Improve customer service- Focused marketing

SUPPLIER NETWORK

- Attract new suppliers- International sourcing- Improve logistics

IT PLATFORM

- Own IT-platform- Back-office systems- Internal KPI tracking

MARKET RECOGNITION#2 European E-commerce Awards

WE’RELOCALStylePit has local websites, offices or actual subsidiaries in over 20 European countries.

DK SE

FI RU

BEING LOCALgetting closer to the customer

LOCALIZATION

Local domain and language as well as

market-adapted product

optimization

SUPPORT

Local phone number and a

local return address for

increased trust

OPTIONS

Offering many payment options &

work with strongest logistics

partner

SECURITY

Local certificates, trustmarks, local conditions and

encrypted checkout

Many refer to the Nordic region as a single market, but is it true?

NORDICS ASONE MARKET?

ONE OF EUROPE’S MOST FASHIONABLE CUSTOMERS

91% want to pay withthe local card Dankort

DENMARK

DISLIKE CREDIT CARDS6 out of 10 pay via invoice

preferably with Klarna

SWEDEN

HIGHEST AVERAGE ORDER VALUE

average income in Norwaythe highest in Europe

NORWAY

NON-SCANDINAVIAN LANGUAGE

7 out of 10 prefer to pay by internet banking or invoice

FINLAND

High growth market with an understanding of

fashionPredicted to be one of

top 10 markets in 2014

NETHERLANDS

Highest return rate in Europe45% return rate on clothing and shoes

GERMANY

Huge growth in Eastern European markets

One of Top 5 markets in less than 1 year

UKRAINE

NORDIC E-COMMERCEpeople who have bought online

• customers want quick

delivery time• happy to pay invoice, mostly

via Klarna• compare prices online• buy most clothes, books and electronics

SE• shop frequently

• want comfort and good

prices• pay with

Dankort• buy clothes

and electronics.

• require fast deliveries.

• compare prices

• read and write store reviews

DK

• pay via internet banking.

• accept longer delivery times.

• want comfort solutions

rather than a low price.

• is happy to buy from

Swedish sites• pay by invoice

is also popular

FI

• shop online to save time.

• happy to pay by credit card

or invoice.• do not have

high requirements

on the delivery time.

• prefer shopping from

foreign websites.

NO

There has been a big change in recent years, now it's the customers who have the power.

THE CUSTOMERIS IN CONTROL

INFORMATION CONNECTION PROTECTION 1965-1985 1985-2005 2005- ”be informed” ”I connect” ”In control”

WE CHOOSE OUR RELATIONS

THE CONSUMER EVOLUTION

THE CONSUMER EVOLUTION

CONSUMER FRIENDLY LOGISTICS

THE CONSUMER CURRENCIES

SOCIAL POWERFacebook is the biggest channel

170.000+

SOCIAL POWEROne click away from the customers

SOCIAL POWER… being on the next big thing

“CASH IS GOD”

StylePit was the ONLY company that made an IPO on Danish Stock Exchange during 2012.

M&A STRATEGYIT implementation: only 2 days

STYLEPIT = EFFICIENTin-house development & new warehouse

BEST-IN-CLASS IT PLATFORM

We chose to build our own e-commerce platform to manage our increasing growth

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Technical information:

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Procurement & IT

BEST-IN-CLASS IT PLATFORMIn-house development

Back-office functions Consumer interface

Accounting,Marketing

& Customer Service

Storage & shipment

NEW IT PLATFORM

(Scalable for growth)

E-MAILS

WEB PORTAL

Marketing

WE’RE MOVING TO A NEW WAREHOUSE

To manage the rapid growth & reduce costs, we decided to move our warehouse.

STYLEPIT WAREHOUSE

Mobile web is growing 8x faster than desktop web did in the 1990s. 3x more smartphones activated every minute than there are babies being born.

THINK MOBILE!

25%

MOBILE REVOLUTIONbut still only 3 out of 10 are mobile friendly

MOBILE REVOLUTIONKlarna Checkout in Sweden, Norway and

Finland

+12%

Higher AOV

96%of all mobile orders are via KCO Sweden

+29% INCREASED CONVERSION

RATE

THINK MOBILEmobile traffic is growing rapidly

LAST BUT NOT LEASTyesterday’s to-do list

1. Internationalization2. Mobile adaptation3. Consumer friendly deliveries4. Remarketing & reactivation5. Never be satisfied!

YOUTHANK

FOR LISTENING