Unlocking E-Export Potential

Just like the line between online and offline shopping, the line between borders are also blurring. Now that consumers have access to a wide choice of brands from abroad, it is a necessity for retail companies today to exhibit their products to global markets.

Currently, there are more than 2 billion online shoppers in the world, generating almost $3 trillion in global e-commerce volume. According to a Forrester report, cross-border e-commerce sales will reach $627 billion by 2022. This increase is expected to account for 20% of e-commerce sales as a whole generated throughout that year.

According to the IPC, the volume of e-export is increasing by 25% a year – almost twice the growth speed of domestic e-commerce. Even now, retailers who start their cross-border sales have 10 to 15% annual increase in their sales. Moreover, 1 in every 5 international shopping basket size totals more than $200 in value. Even in Europe, which is a highly saturated market, cross-border e-commerce share has increased to 13.2% in 2018, reaching an amount of €137 billion.

All of these exciting facts show that e-export presents many opportunities for retailers. With the development of digital commerce technologies, launching an international selling channel is easier than ever. However, many companies attempt to cease the advantages of e-export without being fully aware of the issues they might face leading to failure in a short period of time.  

Inveon’s GrowthLab team, who helps many companies export their products online, argues there are two essential factors to achieve e-export success: choosing the right market and the right portfolio.

Choosing the right market

Any company can export its products worldwide today through online channels, but when it comes to a continuous exporting operation, the right markets to operate in must be carefully chosen.

To make the right decision, retailers should define the market first, in terms of demography, location and culture, affecting the needs and wants of consumers. After that, a detailed market analysis should be performed to provide retailers with a bigger picture, helping them see their potential positioning in the market.

An in-depth market analysis has many dimensions such as recent retail trends, potential competitors, growth rate of online sales and average basket size, as well as forecasted demand and potential barriers to entry. It also includes information about the most sold products in a certain market, customer habits and customer perceived value. All of these multidimensional market data is then used for choosing the right portfolio. Inveon’s GrowthLab department takes a look at all these metrics whilst keeping in mind operational excellence when preparing a market analysis.

Graph 1 represents an example of two of the metrics, online consumers and average annual spending, that GrowthLab uses in order to conduct a market analysis:

Choosing the right portfolio

The data provided by the market analysis will be used as a valuable tool in understanding the customers, which is one of the key factors impacting cross-border success. With the customer data, customer personas are created to help companies understand what products and services will be attractive to which customer group. It also helps companies forecast future demand and plan their potential scale. In the meantime, the gap between the customers’ needs and the current market offerings provides a great market opportunity.

GrowthLab performed a market analysis for a client operating in the home textile industry who wants to enter the EMEA region. By taking the market data into account, the team created customer personas and how they will perceive each product in the portfolio. The results show that because home textile is culturally a social status indicator, the more affordable products such as basic linens were not preferred by the customers and therefore sales did not reach its full potential. Moreover, the results indicated that the prices should have been doubled, while the products should have complied with the latest trends.

Graph 2 represents a forecast of the market share of different home textile products in the EMEA region. This is an example of one of the many market features that GrowthLab analyses when looking at market data.

Conclusion

There is no one-fits-all solution to e-export plans. Success of each action depends on the company’s unique internal and external factors. In order to minimize the potential risks, a comprehensive market analysis backed by solid data is the key.

GrowthLab performs the market analysis for companies and helps them define their market entry strategy in terms of entry model, product portfolio, pricing, inventory and 3rd party management. With its analytical approach backed by data of more than 40 million users from 90 countries, it minimizes the risks of entering a new market.

Event: Retaining Customers for Growth by Inveon & Emarsys

The “Retaining Customers for Growth” event was organized by Inveon and Emarsys Turkey on the 18th of April, 2019, at Dome Istanbul.

The event started with an opening speech by Inveon Partner, Moris Kastro. He shared results from the most recent research in customer retention and stated that “increasing customer retention by 5% can increase profits from 25-95%”. He also pointed out that the current customers are 50% more likely to buy the new products offered by a brand, and they generally spend 33% more than new customers.  

Later, Güneş Mitrani, the Head of GrowthLab, took the stage and shared a roadmap for companies that want to capture the trend of hyper-personalization. She began her presentation by explaining the growing importance of personalization and its impact on the e-commerce sector. Then, she shared the details of the RFM model used for analyzing customer value and how it can be used as a transitional model to hyper-personalization. Mitrani also showed the successful results of GrowthLab’s personalized campaigns. She added, “Hyper-personalization is the future of marketing in all sectors that are targeting end users. Companies that are not already getting prepared for hyper-personalization will face the risk of losing their competitive edge.”

Next, Emre Güzey, the Managing Director of Emarsys Turkey, made a presentation regarding the management of the customer lifecycle under limited resources. Güzey stated that 98% of customers never convert, while 70% of that %2 who converted are one-time shoppers. To overcome this challenge, he emphasized that “companies should discover the data, understand the customers, automatize the engagement strategies and measure their marketing performance”.

Finally, the panel “Increasing Customer Lifetime Value”, moderated by Moris Kastro, took place with the participation of Betül Bulut, the Head of CRM at Modanisa, Deniz Gol, Head of Global Internet and Outlet Operations at Colin’s, and Mustafa Kemal Temel, E-Commerce Marketing Director at Flo. The panelists elaborated on the tips and methods of increasing the customer loyalty and their lifetime values. They talked about the use of data analytics and new technologies in the creation of personalized campaigns. Moreover, they shared tips on how to overcome the challenges of customer relationship management.

Orta Doğu’nun en büyük lüks perakendecisi Chalhoub Group, The Deal’ın dijital operasyonları için Inveon’un inCommerce platformunu tercih etti!

1955 yılında Suriye’de ilk butik mağazasını açan Chalhoub Group, o günden bu yana bünyesine 65’ten fazla şirketi katarak Orta Doğu’nun en büyük lüks güzellik, moda ve hediyelik eşya distribütörü haline geldi.

Birleşik Arap Emirlikleri, Mısır ve Hindistan dahil olmak üzere 14 farklı ülkede faaliyet gösteren Chalhoub Group; güzellik, moda, ayakkabı, aksesuar ve dekorasyon sektörlerinden 600’den fazla markayı çatısı altında toplayan The Deal şirketinin e-ticaret altyapısı için Inveon’un inCommerce platformunu tercih etti. The Deal, online mağazası thedealoutlet.com ile çok yakında dünya genelinde hizmet vermek üzere Birleşik Arap Emirlikleri’nde satışa başladı.

The Deal’ın e-ticaret altyapısında yer alan ürün bilgisi yönetimi (PIM), ödeme, lojistik ve CRM sistemlerinin tamamının entegrasyon süreci Inveon tarafından yürütüldü. inCommerce platformunun optimizasyon ve entegrasyon yetenekleri ile tüm e-ticaret altyapısı omni-channel müşteri deneyimine uygun şekilde tasarlandı.

Birleşik Arap Emirlikleri, Suudi Arabistan, Kuveyt ve Katar’da bulunan 13 mağazasıyla hizmet veren The Deal, inCommerce sayesinde farklı ülkelerde özelleşmiş üçüncü parti sistemlerinin tamamını Türkiye’den tek kanal ile yönetebilecek.

The Deal, lüks deneyimi dünyanın her yanındaki müşterileri için ulaşılabilir hale getirme misyonunu, ürün yelpazesini tüm dijital kanallardan Inveon’un inCommerce platformu ile müşterilerine sunarak gerçekleştirebilecek.