1. 10
HOT
things
you
didn’t
know
about
e-­‐commerce!
La
Poste
e-­‐commerce
track
@LeWeb
4th
December
2012
Catherine
Barba
Delphine
Remy-­‐Boutang

2. 1st
e-­‐commerce
track
@LeWeb
4th
December
2012
#laposteleweb
www.laposteleweb12.fr
Media
sponsors:

3. ❶! Behind
an
enviable
growth,
an
industry
making
liMle
money

4. ❶! Behind
an
enviable
growth,
an
industry
making
liMle
money
A
myriad
of
new
merchants
but
few
with
a
sustainable
and
profitable
business.

5. ❶! Behind
an
enviable
growth,
an
industry
making
liMle
money
• Unless
integraOng
verOcally
the
whole
value
chain,
gross
profit
is
small.
• Gross
profit
unable
to
cover:
-­‐
fulfilment
cost
-­‐
sales
&
markeOng
costs

6. Behind
an
enviable
growth,
❶! an
industry
making
liMle
money
Fulfilment
costs
are
incurred
for:
Digital
producOon,
cataloguing,
quality
control
+!
LogisOcs
+!
Customer
services

7. ❶! Behind
an
enviable
growth,
an
industry
making
liMle
money
• MarkeOng
costs:
Cost
of
Customer
vs!
Life
Time
AcquisiOon
Value

Rising
CoCA

Poor
conversion
rate

Without
repeat
purchase
,
no
profitability

Repeat
business
structurally
low

8. ❶! Behind
an
enviable
growth,
an
industry
making
liMle
money
To
be
profitable:
1. Good
prices
on
sourcing
2. Gross
profit
high
enough
to
allow
mkg
sales
3. Control
customer
acquisiOon
cost
4. LTV
>
CoCA
5. Very
effecOve
analyOcs
6. Frugal
mindset

9. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
La Poste e-commerce track @LeWeb12!

10. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
«
There
is
an
urgent
need
to
support
tradi@onal
merchants
in
understanding
how
much
their
customers
have
changed»
La Poste e-commerce track @LeWeb12!

11. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
• We
are:
1. Over-­‐informed
La Poste e-commerce track @LeWeb12!

12. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
• We
are:
1. Over-­‐informed
2. Seamless
La Poste e-commerce track @LeWeb12!

13. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
• We
are:
1. Over-­‐informed
2. Seamless
3. Over-­‐mobile
La Poste e-commerce track @LeWeb12!

14. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
• We
are:
1. Over-­‐informed
2. Seamless
3. Over-­‐mobile
4. Over-­‐social
La Poste e-commerce track @LeWeb12!

15. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
• We
are:
1. Over
-­‐informed
2. Seamless
3. Over-­‐mobile
4. Over-­‐social
5. Seeking
for
aMenOon
La Poste e-commerce track @LeWeb12!

16. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
• Impact
on
business:
1. Be
available
24h
a
day
everywhere,
especially
on
the
mobile
2. A
drasOc
coherence
btw
what
you
say
and
what
you
do
3. Enhance
the
need
for
«exOmity»
and
social
influence
4. Upgrade
your
level
of
customer
service.
Value
for
money
La Poste e-commerce track @LeWeb12!

17. ❷! Customers
are
mutants,
changing
much
quicker
than
merchants
do.
La Poste e-commerce track @LeWeb12!

18. ❸! Who
can
outperform
Amazon?
La Poste e-commerce track @LeWeb12!

19. ❸! Who
can
outperform
Amazon?
«
Amazon
has
an
unfair
compe@@ve
advantage
that
only
another
giant
could
surpass.
Who?»
La Poste e-commerce track @LeWeb12!

20. ❸! Who
can
outperform
Amazon?
A
turnover
of
$
48
billion
+
than
Google
+
41%
of
turnover
from
2010
to
2011
3
x
the
e-­‐commerce
growth
$111
billion
in
market
capitalizaOon
2
x
ebay
More
than
100
million
visitors
a
month
N°8
top
Alexa
almost
as
much
as
40
000
employees
5
x
less
than
1st
distribuOon
brand
Ahead
of
Walmart
Favorite
brand
in
France
Ahead
of
La Poste e-commerce track @LeWeb12!

21. ❸! Who
can
outperform
Amazon?
• Before
being
a
supermarket
with
an
infinite
choice
(26
categories),
an
ultra
simplicity,
most
of
the
Ome
the
cheapest,
Amazon
is
a
logisOcs
company
with
:

empathy

analyOcs

frugality
La Poste e-commerce track @LeWeb12!

22. ❸! Who
can
outperform
Amazon?
2
unfair
compeOOve
advantages
•
Shipping
acOvites
in
deficit:
$2,5
billion:
+
$1,5
billion
(sending
cost),
-­‐
$
4
billion
(shipping
cost)
• Luxembourg
VAT
rate
on
products
and
services
3%
=
very
low
prices
on
MP3
files,
downloadable
movies
and
e-­‐books
(2015).
Many
digital
products
boosted
by
Kindle.
La Poste e-commerce track @LeWeb12!

23. ❸! Who
can
outperform
Amazon?
customer-­‐friendly
retailer-­‐friendly
cheap
and
convenient
discovery
shopping
supermarket
social
commerce

24. ❹! Will
pure
players
survive
?
La Poste e-commerce track @LeWeb12!

25. ❹! Will
pure
players
survive
?
«
Pure
players
will
hardly
survive,
e-­‐commerce
is
no
more
a
specific
industry
»
La Poste e-commerce track @LeWeb12!

26. ❹! Will
pure
players
survive
?
In
the
US,
TOP
100
e-­‐commerce
:
-­‐ Only
17
pure
players
-­‐ 34%
of
total
incomes
-­‐ Except
Amazon,
Ne`lix
et
VistaPrint
,
4%
of
total
incomes!
Pure
players
will
be
fewer
and
fewer.
La Poste e-commerce track @LeWeb12!

27. ❹! Will
pure
players
survive
?
The
e-­‐commerce
is
a
distribuOon
channel
represenOng
+/-­‐
10%
of
the
retail
turnover.
To
be
a
leader
on
e-­‐commerce
does
not
weigh
much.
To
exist,
a
pure
player
should
realise
at
leat
10%
of
the
global
turnover
global
in
his
field.
If
tomorrow
the
e-­‐
commerce
represents
20%
to
25%
of
a
field,
a
pure
player
should
get
40%
of
market
shares
on
Internet
:
it
is
just
impossible
based
on
an
organic
growth!
La Poste e-commerce track @LeWeb12!

28. ❹! Will
pure
players
survive
?
3
opOons
for
a
pure
player
:
1.
Partner
with
another
pure
player
2.
Being
purchased
by
a
retailer
3.
Buy
out/open
retail
stores
La Poste e-commerce track @LeWeb12!

29. ❹! Will
pure
players
survive
?
To
survive,
they
will
need:
1.
A
strong
brand
2.
A
disOncOve
value
proposiOon
3.
Passion
for
customers
4.
Good
prices
on
sourcing
5.
Gross
profit
high
enough
to
allow
mkg
sales
6.
Control
customer
acquisiOon
cost
7.
LTV
>
CoCA
8.
Very
effecOve
analyOcs
9.
Frugal
mindset
10.
Adaptbility
…
La Poste e-commerce track @LeWeb12!

30. ❹! Restera-­‐t-­‐il
des
pure
players
?
La Poste e-commerce track @LeWeb12!

31. ❺! What
is
at
stake
for
retailers

32. ❺! What
is
at
stake
for
retailers
«
Everywhere,
the
success
of
omnicanal
and
connected
stores
lie
on
the
mobiliza@on
of
managers
»

33. ❺! What
is
at
stake
for
retailers
TradiOonal
retailers
main
compeOOve
advantages
:
-­‐
branding,
reputaOon
-­‐
sourcing
-­‐
customer
knowledge
-­‐
in-­‐stores

34. ❺! What
is
at
stake
for
retailers
 Culture
Not
enough
digital
culture
:
empathy,
analysis,
involvement
of
leaders.
New
role
of
vendors.
 OrganisaOon
An
organisaOon
running
behind
consumers.
Vision
and
measure
of
crosschannel
customer
service.

35. ❺! What
is
at
stake
for
retailers

36. ❺! What
is
at
stake
for
retailers
Site
Mobile
Customer
Magasin
relat
omni
connecté
How to do
real cross- canal
How to
digitalise the
canal ?!
Social
in-store
experience ?!

37. ❻! The
challenge
of
local
commerce

38. ❻! The
challenge
of
local
commerce
«
Innova@on
only
kills
those
who
do
not
innovate.»

39. ❻! The
challenge
of
local
commerce
…some rules!
Overcome
…to not follow the trends! our
fears
…to waste time!
…to lose customers!
… showrooming!

40. ❻! The
challenge
of
local
commerce

41. ❻!
e-commerce as
The
challenge
of
local
commerce
How to use
the mobile
a component of to drive in-
commerce! store traffic?!
Site
Mobile
Connected
Omni
canal
store
customer
relaOonship
Social

42. ❼! Mobile,
mobile,
mobile!

43. ❼! Mobile,
mobile,
mobile!
«
Time
spent
engaging
with
apps
has
surpassed
@me
on
the
mobile
web.
And
mobile
IS
the
web2store!
»

44. ❼! Mobile,
mobile,
mobile!

45. ❼! Mobile,
mobile,
mobile!
• Who
hasn’t
got
a
phone
aMached
to
its
hand
?!
• Mobile
commerce
is
gejng
stronger
and
stronger
and
more
connected
to
the
rest
of
commerce

46. ❼! Mobile,
mobile,
mobile!
1/3
 Visit
commerce
sites
via
mobile
Prepare!
 Geolocalise
a
local
store
 Compare
in
store
Follow-up!
 Buy
from
their
mobiles
 Check
where
their
purchases
are
at
• …
and
pay?

47. ❽! Is
there
a
social
crise
?
Talk is cheap – Silence is fatal"
Social commerce = $ 30 billions by 2015"

48. Social
commerce
:
the
only
thing
❽! constant
in
business
is
change

49. Companies
are
averaging
an
❽!
overwhelming
number
of
corporate
owned
accounts
Platform Average #
accounts
Twitter 39.2
Blog 31.9
Facebook 29.9
LinkedIn 28.8
Forum/Message Board/Communities 23.4
YouTube 9.4
Foursquare 6.3
All others 5.3
Flickr 3.8
Gowalla 0.3
Sum 178
Source: Altimeter !

50. ❽! Trend:
Social
Retailing
The
digital
as
an
experience
accelerator
A
way
to
increase
sales
and
to
maintain
relaOonships
with
fans
and
customers
Share
shopping
experience
with
friends
on
social
networks
Using
social
media
in
store
to
ask
advice
from
friends

51. ❽! To
Be
Heard
In
Social,
You
Will
Pay
The
future
of
adverOsing
is
dependent
upon
social.
Soon,
you
won’t
be
able
to
tell
the
difference
between
conversaOons
and
ads.
Paid
Owned
Earned
will
Converge
Source: Altimeter !
La Poste e-commerce track @LeWeb12!

52. ❾! What
is
innovaOve
in
terms
of
user
experience?

53. ❾! What
is
innovaOve
in
terms
of
user
experience?
«
The
experience
of
online
purchase
is
geOng
more
and
more
personnalised
and
emo@onal
»

54. ❾! What
is
innovaOve
in
terms
of
user
experience?
selection
welcome!
assistance!
representation!
Check-­‐out

55. ❿! Omnichannel
analyOcs

56. ❿! Omnichannel
analyOcs
«
Companies
relying
on
data
analysis
see
their
produc@vity
grow
by
5
to
6%»
(Strength in Numbers : How Does Data-Driven Decisionmaking Affect Firm Performance ?,
Social Science Research Network 2011)!

57. ❿! Omnichannel
analyOcs
•
How
to
define
a
unique
product
ID?
•
How
to
define
a
unique
customer
ID,
for
an
omnichannel
CRM
programme?
•
What
tools
to
beMer
anOcipate
sales?
•
What
dashboards
can
provide
a
confortable
and
personnalised
reading
of
the
KPI?

58. It
is
Ome
to
drop
the
«
e
»
off
of
e-­‐commerce…
La Poste e-commerce track @LeWeb12!

59. Drop
the
«
e
»
off
of
e-­‐commerce…(1/2)
• Accelerate
interconnected
retail!
Customers
don’t
care
about
the
shopping
channel
anymore.
• How
well
do
you
facilitate
crosschannel
shopping
behaviours?
A
maMer
of
culture
&
organisaOon
• Mobile
is
a
key
piece
in
the
omnichannel
mix.
It
is
reshaping
the
tradiOonal
role
of
a
store.
Search
and
price
comparison
happen
in
the
store.
In-­‐store
self
check-­‐out
too.
• In-­‐store
digital
tools
need
to
offer
more
than
what
a
shopper
can
do
at
home
on
his
own.
Simply
adding
digital
is
not
the
answer.
La Poste e-commerce track @LeWeb12!

60. Drop
the
«
e
»
off
of
e-­‐commerce…(2/2)
• A
brand’s
ability
to
innovate
is
not
about
technology.
It
is
about
combining
tech
with
a
richer
human
experience.
• How
will
you
make
relaOonship
with
customer
sOckier?
Vendor
has
a
new
key
role
to
play,
providing
experOse,
emoOon
and
relaOon.
• Champions
of
tomorrow:
Kings
of
analyOcs,
CocA
<LTV
• Above
all
passionnate
about
customer
service,
ensuring
that
brand
messaging
and
customer
engagement
is
consistant,
relevant
and
unique
across
all
channels
and
customer
touchpoints.
• Sell
projects,
not
pPoste e-commerce track @LeWeb12!
La
roducts!

61. THANK
YOU!
MERCI
!
@delphineRB
@cathbarba
Many thanks to Philippe Méda for his illustrations. !