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INDUSTRIES ENTERING THE ECOMMERCE BUSINESS: PORQUE Y CUALES SON LOS DESAFÍOS QUE GENERA ESTE MOVIMIENTO
Melanie Frutig • Novembro 2015
Who I Am?
• Melanie Frutig
• Graduated in Hotel Management at
Canberra University, Australia
• Post graduation in Finance at FGV, Brazil
• MBA in Management at Fundação
Dom Cabral, Brazil
• Post MBA in Digital Marketing at
Kellog University, USA
• Leading the digital sales channel at Electrolux
do Brasil since 2009 - 6 years working in the
digital world!
• Entire production was for own
consumption;
• Production technology
improved, more than required was
produced;
• Stock emerged and it became
bargaining chips for different products;
• Banks and coins started emerging;
Source: http://www.ascarassociados.com.br
The First Steps of Trading
Stock!
The Appearance of Stores
By 1700…
• the supply in small towns
happened trough the first
commercial establishment
(called the General Store)
Source: http://www.ascarassociados.com.br
The first stores…
Industrial Revolution an Evolution
• Dispute for consumers started being
more intense.
• Industries were forced to produce
specific products and trade needed
specific stores.
Source: http://www.ascarassociados.com.br
SegmentedProducts
And now...Grocery Stores!• Communities started to grow
• Specialized and segmented stores were
needed.
• Grocery Stores emerged. They were
dedicated only to selling food in bulk.
Source: http://www.ascarassociados.com.br
Segmented Stores
Cash and Carry Shop...the New World!
• In 1850 Paris launched the first Department Store, where items were organized by different divisions;
• In 1912 the USA opened the first cash and carry Shop. With predetermined prices and packages.
• Products began to be distinguished from each other by brands and manufacturers.
Source: http://www.ascarassociados.com.br
Differentiationby Brand
“Perhaps we should call this
the Amazon era, but the advent of e-
commerce has shaken the retail world to
its core. “ Josh Leibowitz
• That’s when fundamental
changes started in the way
people shopped that we’re still
living today.
Digital Culture > 1990
Source: Josh Leibowitz Chief Strategy Officer, Carnival Corporation_linkedIn
Different place of trade
New Place of Trade
Brand Differentiation
Segmentes Stores
SegmentedProduct
Stores
Stock
In the B2C Segment
Brick and Mortar
Pure Players
Direct to Consumer (DTC)
Why Should Brands Sell Directto Consumers......
3 Main reasons:
• Reinforce Brand Image and Awareness;
• Boost Customer Loyalty;
• Increase Revenue;
Other reasons….
Source: Adaptation of Reuben S. Hendell is
the CEO of BrandShop
???
1. Profit from Brand Strength & Media Investment
• Media investment for brand awareness tend to be huge. Align the investment until the end of the conversion funil.
• Institutional website usually has its own digital media budget.
• Brand website has the best and more relevant product content.
• Seo & Sem with high relevance.
Lets profit from it!
$ $$ $
Co
nsu
me
r Jo
urn
ey
2. Advance in the Customer PurchaseJourney• Retailers usually acquire customers
in the late stages of buying, brands
can start engaging at the first stage
• You will guide him trough the
funnel
• Give him lot of information within
your website for him to research.
• Make your store an option to him
• Sell!
THE FUNNEL: CUSTOMER JOURNEY VIEW
$ $$ $
• Consumers want to by
directly from their
preferred brand
• They feel more confident
and reliable in buying directly
from the manufacturer
• Keen to pay higher prices
3. Meet Consumer Demands
• Offer full product line
• Reliable product content
• Deliver service quality alignedto brands mission
“A brand's ability to effective tellstories creates stronger bonds both pre and post purchase”
4. Maintain Complete Brand Control
Bra
nd
Web
site
Ret
aile
r W
ebsi
te
Bra
nd
Web
site
Ret
aile
r W
ebsi
te
• Offer full product line
• Reliable product content
• Deliver service quality alignedto brands mission
“A brand's ability to effective tellstories creates stronger bonds both pre and post purchase”
4. Maintain Complete Brand Control
5. Customer information...it’s allyours now!
• A/B Testing helps you
understand your
customer
• Test hypothesis in the
product development
phase for instance
6. Understand and Talkto your Consumer
• Your are the owner of
information, reviews, customer
satisfaction information… USE IT!
• You can talk to your consumer
and understand what he wants
regarding product design,
quality…
• ACT fast!
7. Deliver Expetional PurchaseExperience
“Deliver the most impressive
customer experience trough
the customer journey and you
will have people talking about
your brand on facebook,
restaurantes, bars,… They will
become brand ambassadors.”
• You don’t risk to link your
brand to a bad customer
experience.
Where do we Fail
Industries entering the direct to consumer market should avoid some
common mistakes…
???
1. Not Defining a Coherent Market Approach
• What is the main purpose of
your online store?
• How will your commercial
strategy look like?
• What are your main KPIs?
• How will you inform your
retailers you are entering the
market?
• How are you going to launch
your online store? Soft launch
X mass press?
• What are you going to
outsource?
• Who is going to run the online
store?
2. Creating a Separate Website forthe Online Store
• You might loosevisual identity
• Your customersmight feel lost and not follow the conversion funnel
• Be careful with website reputation on search engines
3. Operating the online store as the maincompany
• You will need a separate team
• You will have to develop
different processes and solution
to different problems
• You will need to hire different
suppliers
• You will need flexibility and
agility
• And most important of all,
different KPI´s
4. Hiring One Person to Run the Show
• You will need a team and not only one more person.
• The company will have to hire specialized people to run the business in order to acquire knowhow.
• Internal resources might not have the necessary knowledge.
5. Considering the social media budget as different wallets
• Once the industry enters the
digital sales market, it will have to
rethink the entire digital media
budget
• Invest in the right media for the
right purpose.
• Set specific KPI´s
Source: Chleba agency – company deck
What Now
• Industries that have
an established online
store, will profit from
the market place boom,
loyalty programs,…
???
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