Frank van den Berg's organisation -Salesupply UK- has offices in 8 European countries and helps eRetailers to expand overseas effectively through effective localization. Salesupply services include country entry and start-up management, ongoing customer service and lead generation and more (www.salesupply.com). In his session Frank shared information, examples and tips relevant for anyone considering expanding internationally, with a focus on country selection and effective localisation of webshops.
2. Internationalising your webshop:
‘One Europe, still 27 countries’
Content:
• Why internationalise
• Country prioritisation
• Localisation: what, why, how
“Enabling global e-retail”
3. Why consider the market place outside the UK?
Fantastic growth opportunities
A strong starting position
‘…. and your next competitor…’
Innovation
“Enabling global e-retail”
4. Why consider the marketplace outside the UK?
Fantastic growth opportunities
A strong starting position
‘…. and your next competitor…’
Innovation
However, additional
costs
complexity/management time
risk (financial, legal (T&C, Permanent Establishment,..)
“Enabling global e-retail”
5. European Union | Chances & risks
The pros and cons of Europe
Opportunities
Largest E-commerce market worldwide
Access to 500 million people
Growing market
Choice of countries (demand, eMaturity)
Very stable region
A common legal framework
Excellent distribution network
Low to zero corruption
“Enabling global e-retail”
6. European Union | Chances & risks
The pros and cons of Europe
Opportunities However
Largest E-commerce market worldwide 27 member states (where to begin?)
Access to 500 million people 27 different cultures
Growing market 27 domestic markets
Choice of countries (demand, eMaturity) 20 different languages
Very stable region Still some significant differences in
A common legal framework legislation
Every country requires it‘s own marketing,
Excellent distribution network
cultural and customer approach
Low to zero corruption
“Enabling global e-retail”
7. Prioritisation – consider size of market
E-commerce sales 2010 in bill. €
35
30
25 28
20 22
19
15
10
5 8
5 5 6
0
Sweden UK Spain France Italy Germany Netherlands
“Enabling global e-retail”
8. Prioritisation – consider price points & marketing costs
Business case 1: Sport/Callaway Razr Hawk Driver
255
“Enabling global e-retail”
9. Prioritisation – consider price points & marketing costs
Business case 3: Technik/Kettensäge Bosch AKE 35s
Product
price
“Enabling global e-retail”
10. Prioritisation – consider cost of returns
UK Germany
Payment of goods at ordering often after 14 days
Cost of returns often for customer normally for supplier
Return rates
fit critical 20 - 30 % 25 - 60 %
normal 5 - 15 % 10 - 25 %
“Enabling global e-retail”
11. Prioritisation – in conclusion
Research
Look beyond market size - include key drivers of costs
Prioritise
“Enabling global e-retail”
12. Localisation – why is it important
‘Localisation is the key element for a UK company going to an international
market ‘ Richard Moore, Head of International Sales,
Mobile Fun
‘It should feel like a Dutch site to the Dutch, an Italian site to the Italians’
Hash Ladha, Group Multi-Channel Director,
Aurora Fashion
Would you buy from a German, French, Polish eRetailer if the webshop
is poorly translated and products are hard to find
is priced in Euros, Kroner
has customer contact address and telephone numbers overseas
does not offer some guarantee ie.known brand or trust mark?
“Enabling global e-retail”
13. Key elements for localisation
1 Delivery & returns
2 Currency and payment solutions
Credit card Dankort Invoice, Ideal, Paypal
Local bank solutions credit card
“Enabling global e-retail”
14. Key elements for localisation
1 Delivery & returns
2 Currency and payment solutions
3 Language (translation site, new products, campaigns etc)
4 In-tune marketing and sales messaging
“Enabling global e-retail”
15. Key elements for localisation
1 Delivery & returns
2 Currency and payment solutions
3 Language (translation site, new products, campaigns etc)
4 In-tune marketing and sales messaging
5 Legal and Tax compliance (T&C’s, Privacy, Imprint, VAT etc)
“Enabling global e-retail”
16. Key elements for localisation
1 Delivery & returns
2 Currency and payment solutions
3 Language (translation site, new products, campaigns etc)
4 In-tune marketing and sales messaging
5 Legal and tax compliance (T&C’s, Privacy, Imprint etc)
6 Lead generation (SEO, PPC, social media)
7 Trust marks
Confianza E-maerket Trusted shop Thuiswinkel
on-line waarborg
“Enabling global e-retail”
17. Key elements for localisation
1 Delivery & returns
2 Currency and payment solutions
3 Language (translation site, new products, campaigns etc)
4 In-tune marketing and sales messaging
5 Legal and tax compliance (T&C’s, Privacy, Imprint etc)
6 Lead generation (SEO, PPC, social media)
7 Trust marks
8 Local contact details (beware of Permanent Establishment)
9 Local customer service (native speakers at location)
“Enabling global e-retail”
18. Localisation – the how: ‘make or buy ?’
Do it alone
For those that have the know-how and large scale resources, focus on brand
Channel partner - distributor
For those that have relatively small product range and not focussed on brand
Third party service provider – outsource marketing sales, service etc
“Enabling global e-retail”
19. Salesupply
Providing local facilities, know how and active support
Providing local facilities Set up Ongoing support
Local address and Market insights Customer service in
telephone number Shop optimisation country
(but not a P.E…) Translation
Legal/tax docs
E-marketing
Trust marks
Social media
Project management
VAT returns
Translation
“Enabling global e-retail”
20. About Salesupply | Figures
Founded January 2008 Countries
~ 90 active customers Germany
for ongoing support France
8 European branch offices UK
39 employees Benelux
Spain
Swiss
Austria
Italy
Nordic
Poland
Czech Republic
“Enabling global e-retail”
21. About Salesupply | Figures
Founded January 2008 Countries
~ 90 active customers Germany
for ongoing support France
8 European branch offices UK
39 employees Benelux
Spain
Swiss
Austria
Italy
Nordic
One partner for all activities in 12 countries Poland
Performance or events based pricing model Czech Republic
“Enabling global e-retail”