Assessment of Dominance in digital platforms Sector Inquiry: - - PowerPoint PPT Presentation

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Assessment of Dominance in digital platforms Sector Inquiry: - - PowerPoint PPT Presentation

Assessment of Dominance in digital platforms Sector Inquiry: Ecommerce - pricing and marketing strategies - Sector Study: Sharing economy - innovative and disruptive technologies Uber, Bolt, BlaBlaCar, Airbnb Main focus: 1. B2C Ecommerce


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Sector Inquiry: Ecommerce

  • pricing and marketing strategies -

Assessment of Dominance in digital platforms Sector Study: Sharing economy

  • innovative and disruptive technologies –

Uber, Bolt, BlaBlaCar, Airbnb

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Main focus:

  • 1. B2C Ecommerce
  • 2. Electro-IT Segment
  • 3. Big Players League
  • 4. 3 Study cases

(price strategies analysis)

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Specific Indicators METODOLOGY

Standard indicators: Market Share, HHI, ∆HHI Specific Indicators: traffic, conversion rate, bounce rate, visited pages per visitor, time on website, links to, traffic source Business model:

  • (sales) Diversification (of sales),
  • (vertical) integration
  • Online/’brick and mortar’ orientation

Sector Forecast (sales, cross border trade…) and convergence (EU).

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BLACK FRIDAY SUPPLY MarketPlace After Sales & During Sales Services Winner takes it all Direct connection

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Only one channel (one channel) Several channels (multiple channels) Several channels (same brand) Several channels (smart brand) (ex. Brick and mortar store) Multiple, but separated channels Channels ar connected together. Break the barrier between online and

  • ffline

One shot. One

  • pportunity
  • Ex. Receive an email

survey after shopping in store. (20% cupon included) The brand is smart enough to see the customer.

  • Ex. use of virtual

reality when shopping

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Barriers to ENTRY Over 15.000 online retailers Low costs

But...

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High development barriers

Important players:

Scale economies

Bargaining power Services integration Low margins. High profits. Financial resources Logistic (ex. showrooms) Multiple options for clients (payments, delivery...) Marketplace Dynamic technic barriers => need for strategies & resources (mobile sector) Vizibility:

  • Reputation,
  • Marketplace,
  • Showroom,
  • Diversification,
  • Mixed sales channel (online & brick

and mortar)

  • Client DataBase
  • Affiliates

S i n e r g y

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Sources of dominance (Market Leader)

Largest client database

Vertical integration

Access to sensible information of competitors

Diversification Logistic Financial resources & Vision Omnichannel strategy & Free riding Mobile sector Multiple options for clients (payments, delivery)

Visibility

Marketing Market share

Strategic advantages

Delivery pick up points

Showrooms Marketplace

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Wind of change

2005 – Amazon Turnover < Walmart Profits These days, Walmart : Rebranding. Reshaping. 2019 – Amazon (50%), Walmart (4,6%) US eCommerce Bill Gates: “Greatest mistake ever” Desktop OS: 2013- Microsoft 90%, Mac OS 8% 2019 - Microsoft 77%, Mac OS 16% Mobile OS: 2013 – Android 40%, IOS 25%, Windows=0% 2019 – Android 70%, IOS=25%, Windows=0% App stores: 2019 (3rd quarter)

  • App Store = 14,2 billion (8bil Apps),
  • Google Play 7,7billions (21,6 bil Apps)

Android – bought by Google in 2005 Android – Google Play Store

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Online Presence

Website Group Rank in România Bounce Rate Pages per visitor Time on website Links to Search engine source

Emag.ro Grupul Dante

7 27,8% 7,93 8:52 2366 30,4%

Flanco.ro Grupul Dante

100 35% 4,19 4:16 282 37,7%

Pcgarage.ro Grupul Dante

38 35,3% 6,3 5:47 625 27,5%

Altex.ro Grupul Altex

24 31,4% 4,37 4:38 547 36,2%

F64.ro F64

168 38% 5,37 5:15 1100 29,6%

Mediagalaxy.ro

Grupul Altex

99 29,5% 4,34 4:12 263 35%

Cel.ro Corsar

63 41,1% 4,51 3:38 562 43,4%

dcshop.ro Corsar Nu intră în topul Alexa.com

Marketonline.ro Kelion -> Corsar

1206 49,7% 2,7% 2:14 295 22,6%

Azerty.ro Kelion -> Corsar

7198 51,6% 3,00 1:31 145 46,7%

Mediadot.ro Kelion -> Corsar

3644 38,2% 5,40 3:30 165 37,3%

Evomag.ro Evolution Prest Systems

116 45,6% 3,6 3:40 380 24,5%

Pcfun.ro PC Garage

37203 60,7% 2,1 1:05 105 28,6%

Shopit.ro PC Garage Nu figurează în top

61,5% 1 0:55 39 38,5%

Electrofun.ro

PC Garage

25056 73,3% 1,6 1:21 73 44,4%

Garagemall.ro

PC Garage

6116 59,6% 2,3 1:32 40 29,5%

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Business model – Diversification

Model 1 - Diversified retailers

Emag.ro

Share from electro-IT Shares from own sales

0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00%

2013 2016

0,00% 10,00% 20,00% 30,00% 40,00% 50,00%

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Busines Model – Targeted players

Share from electro-IT Shares from own sales

F64

Model 4

Others: : pcgarage.ro

2013 2016

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Business Models –Marketing Costs/Online Sales

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Market growth rate– Black Friday

0,6 bn euro 1,1 bn euro

1,4 bn euro 1,8 bn euro 2,8 bn euro 75 mil euro 100 mil euro 130 mil euro 200 mil euro

50 100 150 200 250 300 350 400 2012 2013 2014 2015 2016 2017 0,5 1 1,5 2 2,5 3 Comerţul electronic (mld euro - axa stg.) Vânzări de Black Friday (mil euro - axa dr.)

+28% +27% +83% +53% +30% +33% +55%

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Discount campaings – Source of discounts

BF 2016 – Top 15 products sales (BF)

22% 20% 25% 20% 11% 10% 14% 23% 10% 15% 28% 23% 28% 20% 18%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Discount Anual Discount BF Diferenţă Discount

Discount from Supplier Average BF Discounts

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Study case 2015 - Results

800 850 900 950 1.000 1.050

2.1.15 2.2.15 2.3.15 2.4.15 2.5.15 2.6.15 2.7.15 2.8.15 2.9.15 2.10.15 2.11.15 2.12.15

Pret referinta Pret vanzare Preț de referință legal

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Discount campaigns – The real level of discount

Black Friday – volume sales, not discount sales

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BLACK FRIDAY SUPPLY

THANK YOU