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Going Global: Taking Your Brand to New Markets, Part 2: Asia
DANIEL ARMSTRONG, Business Manager, UK & International Growth, WaitroseANDREW HESS, VP, IT Enterprise Systems, Fossil Group
FRANK LAVIN, Founder and CEO, Export Now
In this session you will learn: The value of the China e-commerce opportunity The different approaches leading brands have taken in Asia Key operational considerations that are needed to support a China e-
commerce strategy
China’s Economy
China E-CommerceOnline retail sales in China hit $590 billion in 2015 ($350 billion in U.S.), over 20% of total retail sales
Online population and mobile commerce = 2x US
Online advertising = $32 billion in 2015
Singles Day 2015 exceeded $14 billion; more than double Black Friday and Cyber Monday combined
International Brands in China ~ 12% of revenue and ~26% of profits come from Greater China. Top-selling sports brand in China
Nearly 1 million Buicks sold in China in 2015 ( ~80% of global sales)
Opened its first store in China in 2010 and now has over 100 stores
Starbucks China grew from 1,000 in 2013 to 2,000 in 2015; plans to open 500 new stores per year over the next five years
China hosts 8 of Ikea’s 10 largest stores, and Ikea’s China sales have surpassed USD 1 billion
Over 1,200 restaurants in 317 cities in China
China is the third-largest market behind Germany and the United States
Apple’s fastest-growing market, surpassed EU to become Apple’s 2nd-largest market in 2015
China B2C Commerce
SOURCE: iResearch Consulting Group (February 2016); Alibaba (Jan 2016)
Total Online Sales
Marketplaces
Independent merchant sites
International Brands on Tmall
International Brand
Chinese Consumer?
What It Takes to Succeed
China Market Insight
E-Store Strategy & Operations
Branding + Digital Marketing
IT EnablementRegulatory Compliance
Inbound Logistics
Financial Settlement
Customer Support
Order Fulfillment
NFL Case Study
About Export Now
Founded in 2010, Export Now is the leading U.S.-based China e-Commerce solutions provider, supporting global brands in China with new market entry, brand strategy, and digital marketing.
www.exportnow.comFrank Lavin, Chairman & CEO [email protected]
Andrew HessVP – IT Enterprise Systems
Fossil Group
Going Global:Taking Your Brand to New Markets
Part 2: Asia
Fossil Group, Inc.• Founded in 1984, $3.2 billion (2015)• Operates in 30+ countries, distributed in 120+• Accessories: watches, jewelry, leathers, etc.• Vertically-integrated from design through
retail
Fossil Group, Inc.• Five owned brands• 12 licensed brands• We assemble 80% of our
watches in our own factories
• Production in China, India and Switzerland
Fossil Group in Asia• China• Hong Kong• Macau• Singapore• Malaysia
• Japan• South Korea• Taiwan• Australia• New Zealand• India
Fossil Group in Asia• We have made watches in China since we began in 1984; regional HQ in Hong
Kong• Launched our brands in wholesale channel well ahead of retail• Fossil brand launched in Japan in 1994• First Fossil stores in Asia:
– Singapore, 2000– Australia, 2002
• First Fossil websites in Asia:– Australia, Singapore, both 2008
Fossil Group in Asia – Key Learnings• Expect differences – Australia is not Korea; India is
not Japan• Asia is NOT the European Union:– Lots of ocean between the countries– No common currency, free trade– Language challenges: Chinese (x2), Korean, Japanese
Fossil Group in Asia – Key Learnings• Know Thy Customer:– Differences in purchasing power can be extreme,
including within a country (urban vs rural)– Brands convey social status– Build confidence in your products– Expectation of discounts/bartering varies by culture
Fossil Group in Asia – Key Learnings• Complex legal structure and tax laws in some
countries (especially if you manufacture, etc.)• Shopping experience may be very different:
concessions, shop-in-shops, etc.• Asian customers are very comfortable leveraging
technology like mobile wallet, etc.
Fossil Group in Asia – Recommendations
• Focus on key markets most similar to home country (e.g., Australia? HK? Singapore?)
• Start small and give yourself time to LEARN• In-country expansion is much easier than
going to a new country
