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For our Going Global in 2014 - Chris Jones E-commerce Director at Dr Marten's presented a case study of their international expansion.
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Anarchy in the UN 2
Key Challenges for Dr Martens:
1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?
Anarchy in the UN 3
Key Challenges for Dr Martens:
1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?
Now more than ever it is necessary to ask… 4
Timing matters… 5
There are lots of statistics available out there to act as confusing inputs
Source: OFCOM 2010
Timing matters… 6
Is our own website the best route to market in Poland?
www.zalando.pl
Pick a country, any country… 7
Other countries look superficially/statistically unattractive
Source: OFCOM 2012
Pick a country, any country… 8
“eCommerce in Russia” is a meaningless concept. The country is too diverse.Moscow & St Petersburg together have a population greater than the Netherlands, and by 2014 are predicted to have comparable broadband access.
Source: FOM
So which countries shall we pick? 9
Not all countries have “our” kinds of customers online
Source: TNS Web Index
Taking a look at what we already know 10
Dr Martens already has websites (and warehouses) in the UK and US.
Our top countries: by visitor numbers
- France- Australia + NZ- Taiwan, Singapore +
Hong Kong- Mexico- Sweden + Denmark- Russia- China
Our top countries: by conversion rate
- Australia + NZ- Sweden + Denmark- France
And our worst:- Mexico- Russia- China
Despite a £40 shipping fee, Australia & NZ actually have 50% better conversion than our UK or US customers on their home-country sites!
By looking at drop-out rates in the checkout funnel, we
can “factor in” the impact of cheaper shipping.
Not actual data!
So which countries shall we pick? 11
By combining data from the existing sites, data from existing channels, and plausible statistics for the development of online in a given country, then for most countries we can make a reasonable stab at estimating:
Total market for Docs
Sales via existing
channels
Anarchy in the UN 12
Key Challenges for Dr Martens:
1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?
Long Tail which we can only reasonably
store and shipfrom a few hubs
Routes to customer 13
Core Range held by local distributors
Core range we could reasonably import
into target countries
Our range consists of a small number of top-sellers – the classic Doc Martens 1460 boot and 1461 shoe – plus a long tail
Routes to customer 14
We have varying levels of sophistication in our Warehouse Management Systems across the globe:
WMS in action in the UK WMS in action in Korea
Anarchy in the UN 15
Key Challenges for Dr Martens:
1. Which countries should we choose?2. How will we get the shoes to the customers?3. How can we run the sites cost-effectively?
Localised assortment 16
Our core range is marketed to all countries… but customers’ feet vary by region
Core range Varies by region
Localised customers 17
Our customers are buying for different reasons
Lost Youth Fashion Comfort Individuality
Localised merchandising 18
The majority of our customers start their online journeys from our classic products… but the classics make up less than 10% of all online sales
How big? 19
Localised Assortment
Localised Customers
Localised Merchandising
Our latest forecast for the team-size required to manage it all looks like this:
