Growth hacking-in-ecommerce. Zalando & ASOS cases
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The document outlines strategies for achieving growth in e-commerce, specifically highlighting diversification, internationalization, and economies of scale. It examines the successful business models of Zalando and ASOS, detailing their operations, marketing costs, and customer engagement efforts. Key factors for success include strong branding, quality operations, and the ability to scale efficiently in European markets and beyond.
Growth hacking-in-ecommerce. Zalando & ASOS cases
- 1. How to achieve growth in e-commerce ? ⏐Growth hacking⏐ Zalando ⏐ Asos ⏐Case study © H. Isaac 1
- 2. Growth issues in e-commerce • Growth is a very important strategic issue – Break-even point requires high volume (fixed costs issue) – Volume increases profitability by enabling purchasing price reduction (negotiating power gross margin) • How to achieve growth ? – Diversification (i.e. catalog extension) – Internationalization • From local to Europe • Global from scratch – Economy of scale generation – Marketplace 2 © H. Isaac
- 3. Amazon growth model © H. Isaac 3 Source: Amazon
- 4. A european strategy Source: all data from Zalando public financial statements 4 © H. Isaac
- 5. Zalando Business Model © H. Isaac 5
- 6. Zalando Business Model © H. Isaac 6 Web site Mobile (40% MAU) Shop (Berlin) Private Label Online marketing Data-driven Sourcing IT platform Warehouse Brand Intl payment platform Third party fashion brands (data driven relations) 11 logisitics partners Marketing costs 13,6% Fulfillment costs 23,4% 14 european countries Women Men 150 000 styles 1 500 brands Local Global Fast Private Label High Avaibility Better selection Free delivery & returns Personalized shopping experience Gross Margin 40 to 60 % Net margin 1,2 %
- 7. Steps in business development 7 © H. Isaac Source: Zalando
- 8. European growth strategy 8 © H. Isaac Source: Zalando
- 9. Market size⏐ Brand awareness 9 © H. Isaac Source: Zalando
- 10. Zalando Key metrics 10 53,2%41,5% +11,5% 37% Increased Brand awareness & quality of execution increase Repeat purchase © H. Isaac
- 11. Economy of scale generation⏐1 11 © H. Isaac Source: Zalando
- 12. Economy of scale generation⏐2 12 © H. Isaac Source: Zalando
- 13. Marketing costs ⏐Loyalty 13 © H. Isaac Source: Zalando
- 14. Group EBIT Margin 14 © H. Isaac Source: Zalando
- 15. Zalando Key Success Factors 15 © H. Isaac Source: Zalando
- 16. Zalando Growth’s vision 16 © H. Isaac Source: Zalando
- 17. Zalando: Concluding remarks • High level of economy of scale – Fulfillment capacities – IT platform • Diversification in assortment • European markets extension • Strong branding that reduces Customer cost of acquisition • Quality in operations execution that drives customer loyalty Ø High level of scalability © H. Isaac 17
- 18. ASOS Business Model © H. Isaac 18
- 19. A global strategy Source: all data from Asos public financial statements © H. Isaac 19
- 20. A worldwide strategy © H. Isaac 20 Source: ASOS
- 21. ASOS Business Model © H. Isaac 21 9 Web sites Mobile (46% MAU) Sourcing Warehouse 800 Third party brands Tmall (China) Marketing costs 5,7% Fulfillment costs 22% Worldwide (200 countries) 20 somethings Women 75 000 items Newness Gross Margin 49,5% Net margin 4% Private Label (50%) As seen On me Recommendations Rewards Personal stylist
- 22. ASOS Internationalization © H. Isaac 22 Source: Javelin Group, Planning for Europe, eCommerce futures, 5th February, 2014
- 23. A worldwide expansion © H. Isaac 23 Source: ASOS
- 24. International strategy © H. Isaac 24 Source: Javelin Group, Planning for Europe, eCommerce futures, 5th February, 2014
- 25. A difficult path to master operational costs © H. Isaac 25 Source: ASOS
- 26. ASOS Key metrics © H. Isaac 26 Source: ASOS
- 27. ASOS Vison of Growth strategy © H. Isaac 27 Source: ASOS
- 28. Growth : audience monetization © H. Isaac 28
- 29. ASOS: concluding remarks • From UK to Worldwide sales • Categories extension • Opening China market with Tmall • Marketplace opening © H. Isaac 29