Growing Your Global and Cross-border eCommerce … Your Global and Cross-border eCommerce Sales Jim Okamura and Kent Allen Co-Founders of the Global E-Commerce Leaders Forum (GELF)

Growing Your Global and

Cross-border eCommerce Sales

Jim Okamura and Kent Allen

Co-Founders of the Global E-Commerce Leaders Forum (GELF)

[email protected] ; @jimokamura

and [email protected]

New York City

September 7th, 2017

mailto:james.okamura@okamuraconsulting

mailto:[email protected]

Today’s Presentation

• The Opportunity: A Look Back. A Look Ahead

– Why Cross-Border and International Ecommerce Matter to Online

Retailers and Brands Selling Direct

• Executing on the Opportunity: GELF Strategic Framework

– Passive Selling Stage

– International Growth Stage

– Regional Build Stage

• Global Retail Trends Driving Digital Commerce’s Growth

Cross-Border and Global Ecommerce Timeline

Amazon.co.uk

launches

1998

Adidas Asia Pacific

Ecommerce

Strategy

20082000

The “Original”

Borderfree: US-

to-Canada

2010 2015

IRCE US Retailer

Survey: One in five

retailers >20% int’l

revenue

2009 2012

eBay Global

Shipping

launches

“Dawn of Cross-

Border”: E4X – “sell

in local currencies”

2004

M&A: Cross-

Border Industry

Consolidation 1.0

2014 2016

$17.8B

Singles Day

Alibaba &

Rocket

Internet IPOs

Gap launches

UK, CA and

global sites

Amazon’s Global March Accelerates

Amazon Sales ($USD billions)

2009-14 2014-19

25% 17%

33% 14%

CAGR

12.9 18.8 26.8 35.0 44.5 53.7 63.3 72.8 82.3 91.8 102.011.7 15.5 21.3 26.3 30.0 36.2

43.651.8

60.769.7

80.2

2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E

International

North America

The Opportunity:

A Look Back. A Look AheadWhy Cross-Border and International

Ecommerce Matters

XB Opportunity? It’s Huge

(1) Pitney Bowes 2016 Shipping index

(2) Accenture and AliResearch (2015)

(3) Pitney Bowes 2016 Global Online Shopping Study

Cross-Border Growth Endures

Mobile and Millennials – Our Future

35% of Chinese online shoppers bought goods from overseas (41% via mobile)

© 2015 PayPal Inc. All rights reserved. Confidential and proprietary.

Millennials are more likely to buy clothing or digital entertainment

10

Top x-border categories among x-border shoppers surveyed†

Top x-border categories for Millennials Living in each region †(% of x-border shoppers shoppingx-border in each category)

Entertainment/education online=46%

Clothing = 46%Consumer electronics = 39%

Clothing=50%

Entertainment/education (digital)=29%Entertainment/education (physical) = 27%

Clothing=49%

Entertainment/education (digital) =47% Consumer Electronics=39%

Clothing=56%

Entertainment/education (physical)=35%

Travel & transportation =31%

Clothing =58%

Cosmetics/beauty = 38%Entertainment/education

(digital)=35%

Consumer electronics = 35%

Clothing =53%

Travel & Transportation= 35%Consumer Electronics=31%

North America

(n = 148)

Central/South America (n = 564)

Western Europe(n =1265)

Africa (n = 502)

Middle East(n = 540)

Asia Pacific(n = 748)

Clothing=59%

Consumer Electronics= 38%Toys & Hobbies=36%

Eastern Europe(n = 363)

49

31

32

29

31*

26

54*

34*

34

30

29

28*

Clothing, Footwear & Accessories

Entertainment/education (digital)

Consumer electronics

Entertainment/education(physical)

Travel and transportation

Toys and hobbies

Q28. In the past 12 months what kinds of products have you purchased from websites in other countries?

Base: Cross-Border shoppers , General population n = 8097 Millennials n=4130

†Results are among all consumers surveyed, not weighted for population size

Millennials

General population

* Significantly higher than the other sample (95% confidence level)

China has the largest online population globally668M home users in China vs. 279.8M in the U.S.

The China Opportunity

+129%

China has the largest mobile market globallywith 1.25 billion users, according to Statista

Baidu is the largest digital platform in Chinaand is the 4 th most trafficked site in the world following Google, Facebook and YouTube

China has the 2nd largest economy in the worldaccording to the World Bank

The China Opportunity

$17.8 billion USDChina’s Singles Day 2016

*

@gallate @MerkleCRM*sales for Tmall, the main shopping platform under Alibaba Group12

$14.3 billion in 2015, 24.4%

#GELFNYC17

82% of sales were mobileUp from 70% in 2016

Why It Matters? The Future is Now!

The Chinese middle class is 300,000,000+ based on purchasing power.

They’re highly connected & comfortable buying online.

China Not for Everyone:

Perry Ellis’ Impressive LATAM Growth

Source: 2016 Canadian Online Shopper Study, CPC 16-202, April 2016

English Speaking Markets Continue to Be

Quick Win Opportunities (UK, CA, AU)

28% of shoppers said they would not purchase from a retailer after a negative delivery experience.

Canadian Shoppers Cross-border Buying From US online retailers

High Shipping Costs Remain a Barrier

93% of US

consumers find

shipping options to

be an important

factor for their

holiday shopping

98% of shoppers

track

their packages1

1 Pitney Bowes Holiday Shipping Study, 20152 Pitney Bowes Global Online Shopping Study, 2016

60% of global

consumers say

shipping costs a

deterrent in cross-

border shopping

• Shipping costs

(60%)

• Return policies

(40%)2

But Lots of Hype! Do Your Homework

78% of global consumers shop online domestically at least once a

month1

Analyze Your XB Customer Traffic

Know Your Opportunity; It May Be Unique

Why It

Matters?

Two-thirds of

consumers

have made a

cross-border

purchase;

32% at least

once a

month1

1.Pitney Bowes Global Online Shopping Study, 2016

Executing on the

Opportunity: The GELF

Strategic Framework

1. Passive Selling Stage

2. International Growth Stage

3. Regional Build Stage

zzzz

III. Global Regional Build

Localized Brand and

D2C e-Commerce Sites

Customer Experience:

Localized and Optimized

Mark

et

Pote

ntial

I. Passive Selling

Focus:

International

Shipping

Customer Experience: Needs Improvement

II. Intn’l

Growth

Broadens to include:

International Marketplaces

Customer Experience: Improving

GELF Strategic FrameworkView: Customer Experience

Resources Required

Marketplaces a Proven Growth Driver- Often a cost-effective source of new intn’l sales -

CHINAGERMANY

U.K.

Tmall JD.

Zalando eBay

eBayAmazon

INDIA

Flipkart

My ntra

POLANDAllegro

BRAZIL

MercadoLibre

MEXICO

MercadoLibre

NEW ZEALAND

Trade Me

SOUTH KOREA

Gmarket

KENYA

Jumia

NIGERIA

JumiaINDONESIA, MALAYSIA,

PHILLIPINES

Lazada

UAESouq.com

JAPAN

Rakuten Ichiba

Top countries with

marketplace preference

Japan (70%)

China (61%),

Germany (59%)

India (55%)

Top countries with retailer

website preference

Canada (35%)

South Korea (34%)

Australia (33%)D2C sites key! Many shop both marketplaces and

retailers with no top preference

Mark

et

Pote

ntial

I. Passive Selling

Focus:

International

Shipping


II. Intn’l Growth




II. Intn’l Growth => D2C (US) + Marketplaces

Resources Required

Maturing Growth

Early Growth

Maturing Growth Cross-Border Capabilities

Customer Experience Characteristics Passive Early

Growth

Maturing

Growth

Regional

International shipping offered ● ● ●

Country and currency option ● ●

Clear communications to overseas

shopper

●

Promote other country websites ●

International promotions ●

Mobile optimized international content ● ●

Clear communications of XB policies ● ●

Multilingual customer contact channels ● ●

International order tracking ● n/a

Clear communication of Duties Unpaid

(DDU)/Duties Paid (DDP) options

● ● ●

Emitations.com Homepage:

User Friendly Graphics & Free Shipping Offers

23

Emitations.com Free

Shipping icon at top of homepage opens to

reveal very clear access to U.S.,

Canada & Global Shipping info

Free Shipping offers

by region

U.S.: Min $50 order5-7 days free ship

Canada: Min $75 14 day free ship

Worldwide: Min $100 21 day free ship

Shoptiques.com Localized Promotion & Customer Service Welcome Mat

24

Shoptiques.com:

User friendly

Welcome Mat

Neiman Marcus Homepage: Free Shipping Offers by Region

USA get FREE

SHIPPING

Global markets like New Zealand,

France or Mexico get FREE

EXPRESS GLOBAL SHIPPING

with orders >$175 USD

Canada gets FREE

EXPRESS SHIPPING with

USD orders of $100 or more

West Marine: International Customer Service

Promotes Personal Contact and Robust Content

Ability to

switch

languages

Working

with Freight

Forwarders

DHL one of

many

shipping

options

Extensive use of

Customer Service

via Phone—

appropriate for large

items

Hazardous Item

Restrictions called

out

Nordstom Customer Care: Encourages duty paid in advance

27

Duty amount available at

global checkout. If

shopper opts out, some

countries allow duty on

delivery but rate not

guaranteed by Borderfree.

Easy country &

currency

changes are

standard

features

International

order tracking

available via a

U.S. phone

number or a pop

up window on line

Maturing Growth Cross-Border Capabilities

Customer Experience Characteristics Passive Early

Growth

Maturing

Growth

Regional

Product page international pricing

and exceptions

● n/a

Retailers’ site international checkout ● n/a

International payment options ● ●

Active international social media ● ●

Williams-Sonoma Product Pages:

Product Exceptions for International Shipping

29

Williams Sonoma

warning messages

on product page,

conveniently before

check out.

Note: Currency

in British Pounds

Crate & Barrel Product Exceptions:

“Call a Store” (Canada) or “Request a Quote” (UK)

When trying to ship electrical items to

Canada, Crate&Barrel offered shoppers to

“CALL A STORE” (with click thru) to source

the item.

When attempting to ship an ineligible item

to the UK, shoppers were offered to call or

click to “REQUEST A QUOTE” as “global

partner Fifty One would not ship this item.”

Kate Spade Product Page and Shopping Cart

International Shipping Exceptions

Kate Spade warns that “white

glove delivery” items may only

ship to “continental United States”

on both Product Page and again

at Checkout

Growing Use of International Payment Types

Payment types specific to a particular market (e.g.

Japan Credit Bureau, China Union Pay, Alipay)

Williams

Sonoma: China

Union Pay Credit

Skinstore.com

accepts Alipay

Emitations.com: JCB for

select markets.

International customers

must use PayPal.

Dollskill.com

accepts JCB,

PayPal &

Affirm

Product Benchmarking by International Stage

zzzz

III. Global Regional Build

Localized Brand and

D2C e-Commerce Sites

Customer Experience:

Localized and Optimized

Mark

et

Pote

ntial

I. Passive Selling

Focus:

International

Shipping


II. Intn’l

Growth




GELF Strategic FrameworkView: Customer Experience

Resources Required

Raising The Bar: Table Stakes for Local Sites

Balancing Brand and Commerce Goals

Localizing the Customer Experience:

Adidas Saudi Arabia

Localizing the Customer Experience: Zalora Singapore’s Use of WeChat, Line, Facebook, Google Plus, Twitter

Physical & Digital “Unified in Commerce”

• 68% of global shoppers

click and collect1

• 66% of global shoppers

will order online and

return to store1

• 63% of cross-border

shoppers have

participated in In-store

Global Online Local 1

1 Pitney Bowes Global Online Shopping Study, 2016

Organization Design for Global Ecommerce

• Centralized versus

regional teams –

“strong” or “weak”

centers of excellence

• Aligning the Regional

Brand’s executives with

Ecommerce priorities

• The greatest org

challenge is channel

conflict

Global Retail Trends Driving

Digital Commerce Growth

Alibaba’s VR Play, “Buy+” and AR “Catch the Tmall Cat”

JD.com Piloting Drone Delivery

Device and Design Localization:Improving Customer Experience But Lots of Upside

US retailers’ UK sites UK retailers’ US sites

Source: Practicology, Translate Media and eShopWorld analysis

Localization: One Size Does Not Fit All MarketsUS retailers’ UK Social Media and Customer Care

“52% of the sites reviewed have not fully localized their product content”

Source: Practicology, Translate Media and eShopWorld analysis

Localization - GSshop.com South Korea: Uses Messaging App KakaoTalk

Grocery/CPG Poised for Global Ecommerce Growth

ExplorersInternational Shipping

GrowersCross-border & Marketplaces

BuildersDirect to Consumer Ecommerce

BrandersContent & Brand Sites

Value-Driven Experience Highly-Engaged Experience

$$$

$$

$

High $$Impact

Value-DrivenExperience

Highly EngagedExperience

Low $$Impact

DifferentiateGrow

Passive

Selling

Build

Awareness

High $$Impact



Low $$Impact

ExplorersInternational Shipping

GrowersCross-border & Marketplaces

BuildersDirect to Consumer Ecommerce

BrandersContent & Brand Sites

Value-Driven Experience Highly-Engaged Experience

$$$

$$

$

High $$Impact



Low $$Impact

DifferentiateGrow

Passive

Selling

Build

Awareness

High $$Impact



Low $$Impact

In Closing…

• Cross-border and global ecommerce is only beginning – the time to act is now!

• Choice of global and cross-border solution providers has never been greater

• Your competition is expanding. Both US-outbound and US-inbound opportunities are attracting more players

• The bar is continually raising. Consumers, particularly Millennials, expect their favorite brands to provide a great customer experience

Jim Okamura and Kent AllenCo-Founders of the Global Ecommerce Leaders Forum (“GELF”)

[email protected] and

[email protected]

New York City

September 7th,

2017

Questions?

mailto:james.okamura@okamuraconsulting

mailto:[email protected]

Documents

Growing Your Global and Cross-border eCommerce … Your Global and Cross-border eCommerce Sales Jim Okamura and Kent Allen Co-Founders of the Global E-Commerce Leaders Forum (GELF)