(CROSS-BORDER) E-COMMERCE: EEN RENDABEL BUSINESS MODEL?

PROF. GINO VAN OSSEL GINO.VANOSSEL@VLERICK.COM

A.D.H.D.- generation

B2B

B2C

retail sales vs. year ago (Netherlands – Q1 2015 – CBS)

digital as a threat

digital as an opportunity

retail sales vs. year ago (Netherlands – Q1 2015 – CBS)

THE BUSINESS CASE

sales

online as driver of revenue growth

sales / customer:

+21%

THE BUSINESS CASE

sales

online as driver of revenue growth

especially appealing to most committed customers

AGENDA

1. the challenge

2. marketing

3. logistics

4. B2B ?

5. conclusion

store sales /

customer:

-10%

total sales /

customer:

+20%

THE BUSINESS CASE

sales

online as driver of revenue growth

especially appealing to most committed customers

risk of cannibalisation

THE BUSINESS CASE

sales

online as driver of revenue growth

especially appealing to most committed customers

risk of cannibalisation

capex

digital requires major investments

profit impact depends on sales volume

THE BUSINESS CASE

sales

online as driver of revenue growth

especially appealing to most committed customers

risk of cannibalisation

capex

digital requires major investments

profit impact depends on sales volume

opex

fulfilment & marketing costs are incremental

rational

search

product

specification

long tail

price

THE BUSINESS CASE

sales

online as driver of revenue growth

especially appealing to most committed customers

risk of cannibalisation

capex

digital requires major investments

profit impact depends on sales volume

opex

fulfilment & marketing costs are incremental

margin squeeze

due to price transparency

cracking the code

AGENDA

1. the challenge

2. marketing

3. logistics

4. B2B ?

5. conclusion

your logo here

what is your online objective? 1. serve existing customers better

2.

klanten enkel

webshop

klanten enkel winkel

omni-channel klanten

bron: Bijenkorf

what is your online objective? 1. serve existing customers better 2. customer acquisition within current market

bron: “Retail in Belgium,” InSites/Vlerick, 2012 (n = +170 per uitspraak)

plus d’info sur www.carrefour.eu/tv

what is your online objective? 1. serve existing customers better 2. customer acquisition within current market 3. market expansion

MARKETING

26,7% 22,6%

17,6%

13,2%

0%

5%

10%

15%

20%

25%

30%

2011 2012 2013 2014

marketing cost ratio (% of sales)

AGENDA

1. the challenge

2. marketing

3. logistics

4. B2B ?

5. conclusion

LOGISTICS

contribution & value density (€/m3)

high

low high

high relative cost of transportation

item & orderline density (#/m3)

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=zv33gJ_UW938dM&tbnid=HHh1B23Pg0CG8M:&ved=0CAUQjRw&url=http://annualreview.ipc.be/en/e-commerce-and-parcels/EPG&ei=TMp8U6igD_DU4QTzxoDwCQ&psig=AFQjCNHJIisnjtKTbE-3Oj8WLgqvMl1rVg&ust=1400773539182383

50% afhalen

in de winkel (NL)

33% cross-sell aan afhalende klanten (NL)

60% van de retouren

gebeuren in de winkel

(NL)

LOGISTICS

value density (€/m3)

high

low high

high relative cost of

handling

item & orderline density (#/m3)

LOGISTICS

value density (€/m3)

high

low high item & orderline

density (#/m3)

AGENDA

1. the challenge

2. marketing

3. logistics

4. B2B ?

5. conclusion

LOGISTICS

contribution & value density (€/m3)

high

low high item & orderline

density (#/m3)

B2B

B2C

64

“B2B buyers have B2C expectations on e-commerce platforms”

Andy Hoar (Forrester Consulting)

70

71

“50% of B2B companies buy from B2C websites”

Andy Hoar (Forrester Consulting)

PERSONAL SALES?

pre-digital

sales rep:

knows little about a lot

ignorant customer:

knows nothing

digital

sales rep:

knows little about a lot

informed customer:

knows a lot about little

result

conversion: increasing

interactions:

less & shorter

satisfaction: decreasing (customer & staff !!)

from selling to helping to buy…

76

77

AGENDA

1. the challenge

2. marketing

3. logistics

4. B2B ?

5. conclusion

what is your online objective? 1. serve existing customers better 2. customer acquisition within current market 3. market expansion

LOGISTICS

contribution & value density (€/m3)

high

low high item & orderline

density (#/m3)

cracking the code

‘Dit boek biedt een stevig conceptueel kader én heel concrete handvatten! Een echte must voor al wie begaan is met de toekomst van retail!’

Wouter Torfs, CEO Schoenen Torfs

‘Gino schrijft zoals hij spreekt: toegankelijk, to the point en altijd toepasbaar. Een aanrader voor eenieder die zich met (r)etail bezighoudt!’

Tijn van Elderen, CEO Brabantia

‘Een boek geschikt voor zowel professional als leek, voor de denker en de doener, de gelegenheidslezer en de alleslezer.’

Verslag van de Jury, Managementboek van het Jaar

CONCLUSION

85

Prof. Gino Van Ossel

Retail management

E-commerce & omni-channel

Shopper & trade marketing

Channel management

gino.vanossel@vlerick.com

@ginovanossel