jun 2012 by

eFood project

www.alfonsogadea.es

2

eCommerce, the industry at a glance

B2C eCommerce volume grew from €7,760 in 2009 to € 9,114 million in 2010, experiencing an increase of 17.4% (vs. 15.9% in 2009), based on a triple factor:

► The total percentage of Internet users rose in 2010 1.1 p.p., from 64% in 2009 to 65.1%.

► The number of Internet purchasers rose by 5.8%, from 10.4 million to 11 million individuals (from 41.5% upon Internet users to 43.1%).

► Average annual expenditure per Internet purchaser from €749 to €831 (+10.9% increase), being the main origin of the growth.

Volume of B2C electronic commerce (million €)

Evolution of number of internet users and purchases

Source: Red.es, ONTSI, Nov 2011 (data 2010, carried out by TNS)

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eCommerce Market assessment

Q3 2011 in Spain– eCommerce volume grew 27.4% up to €2,418 millions, including purchases out of Spain and foreign

purchases in Spain.– National volume reached €1,053 millions representing an increase of 27%, and a total € 3,662 in the

last 12 months.– This volume corresponds to 12.88 million transactions (+27.4%), 48.5 millions in the last twelve

months.

Quarterly eCommerce volume evolution and interanual increase

Source: Comisión del Mercado de Telecomunicaciones (only paid by credit card included, not PayPal or bank

transfers).

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eCommerce Market assessment

Source: Comisión del Mercado de Telecomunicaciones (only paid by credit card included, not PayPal or bank

transfers).

eCommerce distribution by industry

Supermarkets and grocery shops

Other food commerce

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Role of the Internet in the purchase process

6

Food online purchase at a glance

70% se conecta a diario

amas/os de casa digitales (<50años)8M

email, comparar, noticias

eninternet2,8h/día

co

mp

ran

bu

sc

an 37%

25%

21%

17%

14%

Viajes

Entradas

Ropa

FMCG

Libros/Cd

La compra @nline

65%

49%

44%

Infor-mación

Promos

Compararprecios

Mercadona.comCondisline.es

Alimerkaonline.esGadisline.es

…

Elcorteingles.esCarrefour.es

Eroski.esCapraboacasa.com

Alcampo.esHipercor.es…

Tudespensa.comHiperdirect.esUlabox.com

Alice.es… (Amazon.uk)

con

tiendafísica

sin

5.000 >5.000surtido online (SKUs)

tradicional

canal online

pure online

comparador

Infografía: AlfonsoGadea.esDatos: Nielsen

Info

Promos

Precios

Viajes

Entradas

Ropa

FMCG

Libros/Cd

7

Mercadona.com

Condisline.es

Alimerkaonline.es

Gadisline.es

…

Elcorteingles.es

Carrefour.es

Eroski.es

Capraboacasa.com

Alcampo.es

Hipercor.es

Tudespensa.com

Hiperdirect.es

Ulabox.com

Alice.com

(Amazon.es)

Current market players

Analysis of online players in the food market

Spain

With physical

store

Without physical

store

Less than 5.000 SKUs online

More than 5.000 SKUs online

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8.000.000 Digital housewifes (<50 years)

The target in Spain

What they want: 65% Information, 59% promotion, 44% compere price

They buy: 37% travels, 25% tickets, 21% clothes,17% mass market , 14% books/CD

They spend 2,8 hours everyday on-line(1st email, 2nd comparing, 3rd news)

70% connects everyday

Source: Nielsen

9

Portelacafes.pt

Quenteebom.com

…

Elcorteingles.pt

Continente.pt

Jumbo.pt

Pingodoce.pt

Superbio.pt

Airport-shopping.eu

Gourmetportugal.pt

…

-

Current market players

Analysis of online players in the food market

Portugal

With physical

store

Without physical

store

Less than 5.000 SKUs online

More than 5.000 SKUs online

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35% have a social network profile

The target in Portugal

40% of the online stores increased over 20% in sales volume during 2011

58% households with access to internet

10% shops online

60% connects everyday

Source: INE, Marktest

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Opportunity assessment

Should we be there

High fixed costs: -technolgy, operations.

-customer acquisition

Customer habits:-retail dependent

-wide assortment

-20-40% private labels

- 24/7 global flagship store.

- Wide assortment and easy search.

- Excellence in service, operations and customer service.

- Volume and desintermediation: lower costs and prices, higher margin.

- Customized product or gift.

- Discount is worth for mensual purchase amount (+€25).

- Partnership & Multiplatform.

- Couponing: traffic to retailer or other platform.

- Branding and research.

- Prepared for outcoming trends:• S/F/M-commerce, purchase clubs.

• RoPo, droppoints, showrooms.

• Searchers, comparators, opinion.

Hard

to be

eComm

musts

Ways

to be

Additional

features

Overall: we shoud be where the consumer is and expects to find us

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Opportunity assessment

Ways to be there: Our own store– Customer looks for just 1 or 2 purchase places:

= x sites x carts x checkouts x expenses x deliveries

13

Opportunity assessment

Ways to be there: Our own store– We give them something special and different from the retailer:

– It is valuable as an additional feature.– Disadvantage: aimed to occasional gifts not to regular purchase / consum.

diseloconchocolate.es

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Opportunity assessment

Ways to be there: Our own store

Snack mensual purchase

targetTeens & Youth

No ePurchase

Planned? Planned?

Families

CouponsBrandingResearch

Worth it

NO(impulse)

Traffic toretail

%NO

€ purchase-% discount+ € delivery

%YES

NO

ROIYES

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Reasons to be on-line

Marketing activities at low cost

Loss of sales

Brand image

Channel for client acquisition

Any action comunication using your own database of registered users has a very low cost. Por example distribution of promotions on-line with a newsletter attached to users.

Strategies from all ensigns is to be multichannel so they can attend to the customer when he needs it. Internet, nowadays , it´s a necesity.

An established brand and lider in his geography has to attend the on-line channel, otherwise it goes against the trademark.

Being in the internet permits register and capture new clients without doing large advertising investments.

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Why to buy on-line? Relevant factorsPrice/promotions, offersComfortFacility to buyWider choice and rangeOnly available waySpeed of supplyBy recommendationTo tryOtherDon´t know

Source: Red.es Observatory

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Elements of an eCommerce solution

Technology

Logistics

• Design and construction of the site• Facebook Store• Content management• Payment methods

• Storage, picking and packing• Commitment and quality certificates• Customer support• Control of batchs

Marketing• Reports and analytics• Couponing• Sampling: Try & Buy

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Social commerceSocial commerce is on everybody’s minds and on the minds of most marketers in

particular.

• What differences social commerce from online stores?

• Why to offer a social benefit to the customer?

Social commerce can be much more. As with their traditional online stores, e-retailers need to understand their customer´s needs, and they need to be open to experimenting with social channels to make it work for them.

Because without it, there is no reason to buy with social network over a traditional online store

There is a clear link between the customer experience and business success.

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Success Purchase Funnel

Ventas = Visitas x % conversión x pedido medio

• Visitas – posicionar: elevada inversión en SEM (Google Adwords, Adsense, display

luchando contra su algoritmo que trata de igualar coste de adquisición a margen) y SEO.

– captar: marketing, affiliate mk, comparadores, multiplataforma, emailing, social media, content mk (inbound).

• Conversión (experiencia de compra): – buscador (30% abandona porque no encuentra), – fichas de producto (muy visual), carrito (sólo llega el 20%), – forma de pago (65% tarjeta, 12% PayPal, 10% c/ reembolso, 5% transferencia;

futuro móvil y créditos FB, Apple…).• Pedido: aumentar el importe mediante cross / up selling, paquetes.• Operaciones: externa (80%) vs interna (inversión, control, implantación,

integración, flexibilidad, atención).• Repetición: social media, operaciones, atención, CRM.

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Online purchase journey

21

Conversion

Nacho Carnés

22

Conversion

23

Conversion

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Case study: Carritus

La compra en

170k us. registrados

visitas únicas/mes650k

de 28 a 52 años

mujeres68%

productos/cesta

ticket medio114€ 39

los más comprados > azúcar > leche semidesnatada > papel higiénico > huevos > arroz redondo > caldo de pollo > papel de cocina > cola lata _

dom lun mar mié jue vie sábD L M X J V S

Infografía: AlfonsoGadea.esDatos: Carritus

http://www.alfonsogadea.es/carritus-revoluciona-la-compra-jesus-haro-ceo-i/

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Case Study: Alice

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Case Study: FB Store - Venca

Tw es más efectivo en llevar tráfico al

site en linksde producto, frente a

FBTw es una importante

plataforma de dinamización

La generación de contenido debe estar ligada al conocimiento de cuál es elproducto y presentación que consigue más conversión

La vinculación con losseguidores incrementa la

conversión

www.alfonsogadea.es