home delivery canada presentation - sep 22,2014
TRANSCRIPT
CONFIDENTIAL | 1
Canadian eCommerce Marketplace Opportunity & Challenges
Christian Rodericks, founding partner & vp marketplace [email protected]@rawdrix
September 22, 2014
CONFIDENTIAL | 6
To Start - We Noticed A Whole Bunch of Right!
eCommerce Globally
Projected to hit $1.9 trillion by 2016Expected to grow by 53% over next 3 years
Significant Addressable Market Size
Canada projected to be $38 billion in 201710%+ CAGR over next 5 years
Canadian Market Growth has 2 Unique
“Rising Tides”
A shift to online :: Canada = ~4% of total retail USA = 8% in 2012UK = 25% in 2014Ger = 11% in 2014
Cross Border Shopping+/-50% of dollars spent online go to US sites
Canadian eCommerce is one of the fastest growing segments of the Canadian economyNo Canadian market leader exists
1
2
3
Sources: StatsCan, eMarketer
2012 2013 2014 2015 2016 2017-0.5%
0.5%
1.5%
2.5%
3.5%
4.5%
5.5%
6.5%
7.5%
$-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$18.36
$21.61
$25.37
$29.63
$34.04
$38.74
eMarketer Retail eCommece Sales in Canada 2012-2017 and % of Total Retail Sales
Retail eCommerce % of Total Retail Sale
% o
f Ret
ail
Billi
ns C
DN
$s
CONFIDENTIAL | 8
Multi-Merchant Marketplace?
One Stop SHOPOne Cart/Check-Out
Online Shopping Mall
Relentless FocusFree Shipping & Returns
Customer Experience
Social SharingShare MORE = Earn MORE
Earn Miles
Mix/Match 5,000+ Brands29 Categories
Your Favorite Brands
Consumers
Merchants
Marketplace-as-a-Service (MaaS) Supplier World – P, P, I, OMCost Per Order – Know ROI
Retailers, Manufacturers,
Distributors
MMM Business Model
5+ Million Products$10 Billion in InventoryCoast-to-Coast Reach
Virtual Inventory
No InventoryNo WarehouseNo Pick-Pack-n-Ship
Drop-Ship as MOR
Leverage and ScaleMinimize Cost Per AcquisitionMaximize Repeat customers
Lifetime Value of a Customer
CONFIDENTIAL | 9
With Selection, Service and RewardsMassive Product
SelectionVirtual Inventory of Millions of Shippable Products
Leading Loyalty Program
Domain Expertise & Capital Efficiency
Proven Partnership
Abilities 600+ Merchant Partners and Counting
5 Year Exclusive Strategic Alliance with Aeroplan
Strong Talent and Expertise
RapidlyGrowing
+1,200% 2013 vs. 2012+370% 2014 YTD
CONFIDENTIAL | 10
But…Managing 600+ DCs isn’t easy!
Supply and Demand UncertaintySupply Chain DisruptionsUnsteady Supplier PerformanceSupplier Cancelled Orders
Customer Loyalty & Retention at riskCost per acquisition > Cost per repeat
CONFIDENTIAL | 11
Managing the chaos
Frequent inventory updates
Carve-out inventory (by brand or category)
Inventory Buffers
Regressive and Predictive Analytics
Subscriptions – Accurately measure demand
Service Level Agreements – Monitor and Enforce
CONFIDENTIAL | 13
Strategies for Joining Marketplaces
Test a new brand or product line – pilot demand before a big buy
White Label - Avoid channel conflicts
Test price elasticity – change in demand quantity / change in price
Clear older product styles
Additional revenue channels (More ore less than SEM)
CONFIDENTIAL | 14
At the end of the day….
Deliver a customer experience that drives repeat business through
Great Products
Unmatched Service and
Best in Class Loyalty