Скачать презентацию Internet Retailing Stock prices down n Demands for Скачать презентацию Internet Retailing Stock prices down n Demands for

bbdb8c6f1ae6b8ea1df4811b76ee95a9.ppt

  • Количество слайдов: 33

Internet Retailing Stock prices down n Demands for government regulation/taxation growing n Margins are Internet Retailing Stock prices down n Demands for government regulation/taxation growing n Margins are thin n Supplier relationships testier n HED 460

E-retailers vs. bricks n n n n Revenue % COGS % GM% Mkt. /Adv. E-retailers vs. bricks n n n n Revenue % COGS % GM% Mkt. /Adv. Other op. exp. Tot. Op. exp. Op. Income 100% 87% 13% 24% 23% 47% -33% n n n n Revenue % COGS GM% Mkt. /Adv. Other op. exp. Tot. Op. exp. Op. Income 100% 73% 27% 4% 18% 22% 4. 5% HED 460

Internet Retailing n Internet makes everyone a retailer Internet service providers (ISP’s) n Suppliers Internet Retailing n Internet makes everyone a retailer Internet service providers (ISP’s) n Suppliers as retailers n Channel conflict n Wal*mart and Home Depot n n More competition but core retail skills give retailers an edge HED 460

Internet Retailing n Market discipline is king n n Etailers must be customer-centric Business Internet Retailing n Market discipline is king n n Etailers must be customer-centric Business to consumer market models Individual product auctions (ebay. com) n “name your price” offers (priceline) n Buyer aggregation (mercata. com) n HED 460

Internet Retailing n New technology influences n Wireless Creates new channels of Internet access Internet Retailing n New technology influences n Wireless Creates new channels of Internet access n New applications in the home and on the road (GPS systems) n n Networked home n TV, refrigerator as control centers HED 460

Internet Retailing n The fall out has started n Etailers have closed virtual doors Internet Retailing n The fall out has started n Etailers have closed virtual doors n etoys, pets. com, kozmo. com, webvan n Some have partnered to increase portfolio n Amazon/Walden. Books, e. Bay/Paypal, FTD/Flowers Direct n Some have restructured n Some were close to going out of business HED 460

Internet Retailing n Some categories are saturated Pets n Petopia. com, Petstore, com, Petwarehouse. Internet Retailing n Some categories are saturated Pets n Petopia. com, Petstore, com, Petwarehouse. com, PETs. MART. com n Sporting goods n HED 460

Internet Retailing Strategies n Reducing marketing expenditures Using cheaper techniques like email n Dramatic Internet Retailing Strategies n Reducing marketing expenditures Using cheaper techniques like email n Dramatic decreases in average online customer acquisition costs n Q 4’ 99 n Q 1’ 00 n Q 2’ 00 n Q 3’ 00 n - $71 $45 $40 $20 HED 460

Internet Retailing Strategies Raising product prices n Being less promotional n Lowering/eliminating shipping charges* Internet Retailing Strategies Raising product prices n Being less promotional n Lowering/eliminating shipping charges* n HED 460

Internet Retailing Strategies n Destination site n Category focus to focus on all things Internet Retailing Strategies n Destination site n Category focus to focus on all things related to the category n Relevant content Product reviews n Advice columns n Celebrity interviews n News n HED 460

Internet Retailing Strategies n Destination site, cont. n Building community on-line – interaction Message Internet Retailing Strategies n Destination site, cont. n Building community on-line – interaction Message boards n Chat rooms n n Lands’ End, Cars. Direct, Techno. Scout HED 460

Results of chat n n n Best for high-price, high-margin products Used to up-sell, Results of chat n n n Best for high-price, high-margin products Used to up-sell, cross-sell, convert Ave. order increased by 6% at Lands’ End Ave. order increased from $135 to $170 for Techno. Scout (3. 5% use chat feature) Conversion incr. from 2. 2% to 3. 1% from 2000 -2001 Abandoned shopping carts decreased from 53% to 47% HED 460

Internet Retailing Strategies n Multi-channel retailers Experience is paying off n Only 2 of Internet Retailing Strategies n Multi-channel retailers Experience is paying off n Only 2 of top 10 etailing sites 2001 are traditional “pure play” n Pure-play e-tailers are forming alliances with store-based or catalogs n HED 460

Top 10 E-tailers 2001(Revenue) Amazon. com* n Office Depot n Staples n Gateway n Top 10 E-tailers 2001(Revenue) Amazon. com* n Office Depot n Staples n Gateway n Costco n Barnesand. Noble n Buy. com* n QVC. com n The Spiegel Group n JC Penney n HED 460

Question #1 n What percentage of U. S. households have a computer at home? Question #1 n What percentage of U. S. households have a computer at home? n 66% HED 460

Question #2 n What percentage of U. S. households have a Internet access at Question #2 n What percentage of U. S. households have a Internet access at home? 63% n Gap continues to narrow n HED 460

Question #3 n What country has the highest percentage of Internet users? Finland – Question #3 n What country has the highest percentage of Internet users? Finland – 58% n Sweden – 44% n Canada – 41% n USA – 37% n HED 460

Question #4 n What is it cost to service online customers? Phone - $33. Question #4 n What is it cost to service online customers? Phone - $33. 00 n E-mail - $9. 99 n Live Chat - $7. 80 n Self-service - $1. 17 n Forrester Research HED 460

Question #5 n What is the profile of online shoppers? 39% Upmarket n 66% Question #5 n What is the profile of online shoppers? 39% Upmarket n 66% are younger/single and younger/parents n 53% women shop to save time (41% men) n 56% men shop to save money (40% women) n HED 460

Question #6 n What are the 3 attributes of favorite web sites? Good product Question #6 n What are the 3 attributes of favorite web sites? Good product selection n Competitive prices n Ease of use n HED 460

Question #7 n What is the greatest barrier to online purchasing? n Fear factor Question #7 n What is the greatest barrier to online purchasing? n Fear factor - Credit card safety (69%), then privacy (61%) HED 460

Other barriers n Other fears Returns n Customer service questions answered n n Feel Other barriers n Other fears Returns n Customer service questions answered n n Feel factor Feel, see, try out/on n Prefer shopping at stores n HED 460

Try-out/”experience” Zanybrainy. com – selected toys n 3 D interaction to zoom in and Try-out/”experience” Zanybrainy. com – selected toys n 3 D interaction to zoom in and out, “use” products (sharperimage. com) n My model (Lands’ End) n HED 460

HED 460 HED 460

Other barriers n Fulfillment factor Not willing to pay shipping/handling n Don’t want to Other barriers n Fulfillment factor Not willing to pay shipping/handling n Don’t want to wait for products n n Frustration factor Difficult to shop online n Completing transaction takes too long HED 460 n

Question #8 n What is the greatest barrier to online purchasing for clothing? Inability Question #8 n What is the greatest barrier to online purchasing for clothing? Inability to try on clothes for fit before purchase (81%) n Unable to feel material quality (45%) n Concern about ease of return (44%) n HED 460

The Fit Issue Virtual models (landsend. com and jcpenney. com) n Fit guides and The Fit Issue Virtual models (landsend. com and jcpenney. com) n Fit guides and comparisons ([email protected] com and eddiebauer. com) n HED 460

Question #9 n What is the cause of e-shoppers abandoning their shopping carts? Excessive Question #9 n What is the cause of e-shoppers abandoning their shopping carts? Excessive shipping costs (1/2) n 47% abandonment rate n n Present shipping costs up front HED 460

Question #10 n What is the most frequently purchased online category? n Information-intensive (for Question #10 n What is the most frequently purchased online category? n Information-intensive (for sales volume) n n Digital cameras/camcorders, PC, Software Commodities (for conversion rates) n Books, CD’s, women’s hosiery HED 460

Question #11 n Is there a link between # channels shopped and spend per Question #11 n Is there a link between # channels shopped and spend per shopper? Sears data n 2 channels, 2 x as likely to shop store and spend 2 x more n 3 channels, 3 x as likely to shop store and spend 3 x more n 30 -40% online purch = store pickup (20% buy more in the store when pickup) n HED 460

Question #12 n How many Internet users are purchasing online? 55% (77% browsed/shopped) n Question #12 n How many Internet users are purchasing online? 55% (77% browsed/shopped) n Vs. 51% and (75%) last year n HED 460

Question #13 n What is the main advantage of being a pure-play e-tailer? n Question #13 n What is the main advantage of being a pure-play e-tailer? n n Focused and nimble What is the main advantage of being a multichannel e-tailer? Brand name n Synergies n HED 460

What has Amazon done right? Amazon simplifies shopping n Equity built with consumers is What has Amazon done right? Amazon simplifies shopping n Equity built with consumers is saving Amazon with investors n Selection, competitive prices n Ease of navigating site/convenience n Delivery speed and options n Partnerships HED 460 n