By Roel Linssen - Imagine that you started a webshop for passionate amateur bakers in 2015. Shows like the Great British Bake Off kicked off a widespread baking frenzy, which was good news for your webshop. After that promising start, 2020 happened. Confined to their homes, more people started figuring out how to cure their boredom by baking bread.

E-commerce was booming while your enterprise was at the height of its power. To deal with the gargantuan demand, you increase essentially everything: stock, personnel, distribution. Now that we’ve returned to the ‘old normal’, people can go out again, and their ovens are running out of cakes to bake. Your sales drop and the stock continues collecting dust at warehouses. The costs of all the upgrades from the lockdown days remain, and growing competition drives up marketing costs. What are you going to do?

The secret ingredient is preparation. I’ll walk you through it. Brick-and-mortar stores, where people would usually get their rolling pins, had to close during the lockdowns. This accelerated the rise of e-commerce, where people had to make new purchasing decisions.

Roel Linssen / Director & Founder Tomahawk

The customer journey has always appeared to be a linear procedure where customers make step-by-step choices for purchase. The past years made clear that this is not the case: the process is not a predictable funnel. Google describes it as a ‘messy middle’. Calling it the messy middle implies that the steps the shopper takes from exposure to a product to the actual purchase are beyond our influence and unpredictable. 

The recent decline in brand loyalty is one of the elements that made the middle so chaotic. Consumers don’t have a clear journey in mind when they’re looking for products. They might have an idea of a product type or a brand in mind, such as a round baking mould.

But they’re still on their way to the actual purchase and everything can happen en voyage. Another webshop might offer free shipping or have better reviews. These nudges can motivate consumers to switch to another brand. You might lose some customers because of that loyalty, but there is also potential to attract new shoppers. 

Research has proven consumers nowadays are more willing to choose a lesser-known brand if buying biases are similar (or better) than a well-known brand. So this is what you can do to face the aforementioned challenges: you can have biases mise en place that influence the purchaser, such as free cake decoration samples and recommendations from regular shoppers. These biases tidy up the messy middle for the consumer. Compare it to baking – it is so much easier to do when all the supplies are already put in place.

But the real opportunity is beyond local markets. With the reduction in brand loyalty, it’s easier to convince new consumers in new markets to pick your brand without having to invest in brand awareness. Going international might sound ambitious for your e-commerce enterprise, but specialised marketing agencies can help you out with this.

Crossing borders with your webshop gives you a chance to boost your sales and decrease your dependence on the local market. Baking virtuosos in new markets are more than happy to relieve you of that extra stock you have left from the lockdowns. By simply being present with the right biases, you can nudge consumers from exposure to purchase. It’s almost a piece of cake. 

All the best,

Roel Linssen

Director & Founder Tomahawk

The post Claim your slice of the pie: Go International! appeared first on Cross-Border Magazine.

Apple had already taken these lesser results into account. After all, they already issued a profit warning for the fourth quarter due to disappointing iPhone sales. CEO Tim Cook talks about a strong quarter for wearables and accessories. However, the service branch has apparently broken an absolute record.

Since this year, the mobile phone supplier is no longer reporting sold quantities of its iPhones, iPads and Macs. However, some analysts estimate that the company shipped 42 million of these items in the last quarter. This would mean a 19.6% decrease in comparison to last year.

Apple lost its place to Huawei

According to IDC, the company who published the below stated Quarterly Mobile Phone Tracker, Apple has once again lost its place in the world ranking of smartphone sales to Huawei. Huawei is number two in the ranking, after Samsung. In total, smartphone manufacturers shipped 310 million copies in the first quarter. Apple's smartphone sales are said to have decreased by around 30%. For the next quarter, the company expects a turnover of between $52.5 and 54.5 billion.

Intel

There are rumours that Apple wants to buy the modem branch of Intel now that this company wants to stop building chips that bring modem functionality to mobile devices. That decision followed after the smartphone company concluded a mega-deal with chip maker Qualcomm. For now, Intel denies that there is a relationship. However, Apple is not the only company interested in purchasing Intel. Samsung, Broadcom, ON Semiconductor and Unisoc Communications are looking into purchasing the Intel component.

The post Apple profit 5% lower than last year appeared first on Cross-Border Magazine.

The Persuasion Index team examined numerous fashion retailers for five months to see who managed to use persuasion and personalisation techniques in their web shops in the best way. Zalando eventually won 83 out of 100 possible points and managed to leave Reebok (82), Under Armour (82), WE Fashion (81) and New Look (79) behind.

Two Dutch web shops made it to top 10

Finishing in fourth place, WE Fashion is the highest Dutch ranking in the list with 81 out of 100 points. WE Fashion is followed by C&A which, according to the researchers, is in a surprising tenth place, with a score of 75/100. Behavioural psychologists assess each web shop in the study on fourteen criteria, which ultimately resulted in 23 trends in e-commerce. According to Crobox, the company commissioning the study, these are the three most striking trends:

#1 Instagram

Instagram is becoming the most popular social network for companies to come into contact with customers. The latest trend is the integration with a so-called live social feed where fans or influencers who wear the brand or prizes get the space. According to Crobox, this is especially good for building social credibility and brand authority.

#2 Product recommendations

Product recommendations are nothing new under the sun, but thanks to new technology such as AI and self-learning algorithms, the recommendation systems are better than ever. The best working recommendations on a shopping cart page turn out to be products that are complementary to those already in the shopping cart instead of corresponding products. This has proven to work even better when the retailer has an instant-add button on this page.

#3 Convincing search function

Almost every web shop has a search function these days. However, web shops use a smart search function can score even better conversion figures. Implementing a convincing search bar is the next new innovation in this field; the smart search function shows categories such as popular products and new collections based on the customers' search history.

Personalisation is increasingly dominant in e-commerce

According to the CEO of Crobox, the domain of personalisation and online behavioural psychology is becoming increasingly dominant in e-commerce. "Choice stress on the overview page or frustration during the payment process are known barriers to conversion." With the index, the company critically highlights the standards of the industry and the awareness of behavioural design.

The post Zalando is the most convincing fashion retailer appeared first on Cross-Border Magazine.

eDelivery Barcelona will gather more than fifty companies from areas such as supply, logistics, operations, technology, software, e-logistics solutions, sustainable products and services, consulting, online payment services and e-commerce derived services. The event will offer a unique opportunity to network with suppliers, brands, retailers and e-tailers since more than 500 attendees from the e-commerce, retail and delivery industries will meet to discuss the latest disruptive trends in the sector.

The eDelivery Barcelona Congress

The eDelivery Barcelona Congress will be a forum to debate the latest disruptive trends in the sector. More than 60 speakers will deliver speeches on ‘Crossborder & Augmented Reality’, ‘Grocery eCommerce & Retail Future’; ‘Investment in LogTech’; ‘Crossing Borders: Europe & Africa’; ‘Crossing Borders: Europe & Latin America’; ’Customer Experience, RetailTech Fulfillment & Last Mile Food Delivery’; ‘Last Mile: Cities Sustainability & Autonomous Delivery Vehicle’; ‘Latest Startups Technology Programs & Hackathon Opening’; ‘Last Mile Drivers’ Challenge’, & ‘Hackathon, Challenges Conclusions’.

The Start-up Innovation Hub

Some of eDelivery Barcelona’s exhibiting space will be entirely devoted to Start-ups since these newly born companies are leading some of the most disruptive innovations in the value chain and redefining the business models of many sectors from production to logistics, marketing, or product delivery. Start-ups are offered the opportunity to present their creative and innovative solutions to the top Industrial corporations worldwide, to hold B2B meetings with investors and Speed Dating and Lunch Networking with large companies and potential partners, and to have an exhibiting space at the Start-up Innovation Hub Area. The top five selected start-ups may exhibit free of charge and will become direct candidates to the Best Start-up Award and the Best Innovation Award.

When: 26 – 28 June 2019

Where: Hall 8, Plaza de España, Barcelona

More information: www.edeliverybarcelona.com

The post eDelivery Barcelona 2019, the international logistics in eCommerce exhibition, to be held again on June 26-28 appeared first on Cross-Border Magazine.

Henry is a known staple of the gaming industry: after spending four years at William Hill, Birch was CEO of gaming giant Rank Group, where he led a strategic overhaul of the business and carried out its digital transformation. Shop Direct is already a role model in the digital retail space, with 69% of sales completed on mobile and its 49 million products delivered to 7,000 stores across the country – how will Birch’s unique experience steer the Group into an exciting new chapter?

Join IRC on October 11 in London and get the inside scoop into Henry’s plans for the digital department store. Plus, get unparalleled insight into the challenges and opportunities in the digital retail and delivery industry from 50+ speakers from Lidl, Harrods, Deliveroo, Google, Facebook, Specsavers and many more – covering the topics that keep retail executives awake at night:

• Fostering a culture of innovation: with retail disruptors shaking up the industry, how can all players catch up? It all starts with sowing the seeds of entrepreneurship and innovation in every company.
• Profitable Same-Day Delivery: How can you meet customer expectations while increasing their profits?
• Using Localisation To Drive International Sales: What are the secret ingredients to expanding internationally? Which best practices of localization will ensure you can trade credibly internationally? How are the newest regulatory challenges, such as Brexit, affecting trade and how can the risks be mitigated?
• Peak Trading Operations: What does an operational excellence strategy for busy periods look like?

Digital retail is the key to effective cross-border commerce: be a winner with the UK’s only event that brings together the retail boardroom together, in an innovative format that fosters board-level collaboration, inspiration, and interaction.

This unforgettable “unConference”-Conference rejects stale PowerPoint presentations and one-sided pitches: IRC is all about bringing together the sharpest retail and digital brains and devise the solutions the industry needs to Re:Skill, Re:Boot and Re:Generate Retail.

The post Meet the CEO at the helm of £1.93 billion annual sales at IRC in October appeared first on Cross-Border Magazine.

What was the motivation to move towards a more digital business model?
“On the one hand, we wanted to sell online because the customers are increasingly getting used to doing everything online. In their private life, they are accustomed to services as offered by Amazon or Zalando, and therefore begin to wonder why in the B2B environment they should still do everything in an old-fashioned way. In addition to that, we wanted to improve our service. We had a strategic analysis performed by a company called Fenego, who made an overview of how to better translate our goals into a digital strategy. We want to sell the farmers what they need, but also offer technological support to help them improve. One example is to help livestock farmers monitor the growth of their animals online. Technological applications like this not only serve the farmer, but also help us to offer the farmer new options to optimise his business, such as advanced nutrition fitting his situation. The classic cross-selling has got a new component: the salesman used to speak to the farmer out on his land to talk about his needs, but it is now also driven by data gathered online. Online data has given us an alternative, additional source of information.”

So, the e-commerce system is also used within the organisation?
“The digitalisation of Schippers’ processes supports both the continuous improvement of the system, and the optimisation of support the company can offer to its customers. Customers can see their invoice history independent of the sales channel of their previous orders. They can easily place repeat orders or make a list of favourite products. They can also start a return procedure wherever they are. Also, the inbound personnel of Schippers can always access this in real time.
The 10 localised websites not only serve the customers buying online, but also support the inbound sales agents when assisting buyers over the phone or to make orders. As the inbound agents make such heavy use of the e-commerce systems, their feedback is of great value when improving the processes.”

Do you offer localised content?
“Yes, we have all our foreign websites in the appropriate languages, and I can tell you that translation is an undervalued challenge. We use translation agencies, and then have all content double checked by our local people. We are lucky to maintain good relationships with the team and clients in all countries, so we get enough feedback to find problems in the texts and to improve. Besides translations, the content is localised as well as the payment methods.”

How did you manage the transition to a functional, international e-commerce system?
“We have a PIM system (Product Information Management), where we manage our collections, which we share with the webshops. In the Netherlands, Germany and Belgium we have the same collection, which can be compared with a category structure. Products may differ, but the structure remains the same. In Canada, for instance, we have a smaller assortment, so we had to adapt the category structure. Our PIM shares product data and collections with touchpoints through websites, apps and catalogues. From the PIM, we have a special application to share information with the website and we also use it to make our catalogues.”

Catalogues? Do they still exist?
“Sure! They are an important marketing and information feature because people can easily start exploring with catalogues. In addition, with a web shop, you can’t make it clear that your company has a wide range of choices, whereas the thick catalogue always creates that idea. Another positive is that clients start looking online when they are already in an order process, whereas the catalogue is looked at during lunch or coffee, just to have a little browse. This has an inspirational value.”

With which platform do you realise international online sales?
“We use Intershop. It is an internationally powerful B2B platform that makes it easy to manage different situations in different countries, e.g. when it comes to pricing, VAT or shipping costs. We thought the risk of taking an open source platform was too big for us. Intershop makes each international step faster and easier, and we can open in new countries without any problems. We integrate our catalogue, Syncforce and all client data and prices (SAP) with the Intershop platform.”

How do you manage international differences?
“In each country, there is a marketing expert who also advises on the local assortment. The assortment differs per country, and the registration for products might also be different. On top of that, we see that the acceptance of internet as a B2B purchase channel varies from country to country. In Germany, internet usage is sometimes very low, so we suggest to our farmers to try ordering online, but we never push them to change their habits. For us, there is no difference in which channel they use.”

In which way do you use online marketing as a tool?
“We carefully weigh with which kind of customer we are interacting with. Smaller clients are often sensitive to promotions, special offers, that we can put online. They constantly weigh us against the competition. Larger companies have a different relationship with us: we talk about solving problems and we build a different kind of trust and long-term collaboration. The website becomes an ordering tool. We know that the farmers need time for their work, so we don’t want to steal it. We make appointments for real discussions about optimising operations, and shopping can easily be done via our online services, even after working hours if the client wishes. One of the most important questions was how can we better facilitate our customers by offering a 24/7 self-service portal. In order to accomplish the goal of showing the customer as much of the information possible relevant for the customer individually, we needed to make information from the SAP ERP system available in a ‘My Account’ section on the webshop. This was realised through a synaptic integration between Intershop and the SAP-system used by Schippers. We also make increasing use of social media; Facebook is regularly used by farmers and we have already accumulated 10 000 likes in about 10 months. We also get questions there from all over the world, which has already clearly increased.

Is it difficult to make customers trust online markets after years of ordering from a catalogue?
“The most important factor here is reassurance. If you send a good order confirmation, you already win a lot of trust.”

How do you deal with marketplaces like Amazon or Alibaba, which may compete with you on certain levels?
“They are active in certain overlapping sectors, yes. We don’t use marketplaces like Amazon and Alibaba for our sales. For the future, I could imagine it would be interesting to grant other, third-party suppliers access to our marketplace and client base. But we would then keep everything under our name and brand identity. However, we would not like to engage in drop-shipping models, because it distracts our clients from their work if they have to leave the stable for multiple deliveries. In our checkout process, you can always bundle your products to a single delivery. But if we can arrange it in a way that suits us, developing towards a marketplace model is surely an option.”

And other continents, such as China for instance?
“There are cultures where our products simply meet a much lesser demand. In China, livestock farming is not at a level that structural hygiene and an anti-antibiotics policy as advocated by us, are something people are looking out for. But who knows what the future brings. Martien Schippers always said the Netherlands is- as far as the farming industry is concerned- a good indicator of what will happen elsewhere in the future.”

The post “I could imagine opening up for third-party sellers” appeared first on Cross-Border Magazine.

Date:                Wed 3 May 2017

Time:                2pm – 3pm GMT

 Speakers:         Lionbridge Subject Matter Experts

Aoife McIlraith, Director of Global Search and Marketing

Brendan Walsh, EMEA SEO and SEM Manager

In this webinar, you will:

1. Understand why geo-targeting is important to your customers, conversion rates and your online success
2. Learn how to prevent undue competition with your own websites, maximise indexed pages, and eliminate duplicate content errors
3. Discover real world examples of the ‘dos & don’ts’ involved with international SEO

Register here

The post Free Webinar: Global SEO: How to enhance your website’s international customer experience with Geo-Targeting appeared first on Cross-Border Magazine.

■ Cross-border shoppers in developing markets are increasing significantly. Forrester’s survey data show an increase in online adults shopping online across borders in many European and Asia Pacific countries. Online cross-border buyer growth in Latin America, Asia Pacific, Africa, and the Middle East will see double-digit compound annual growth over the next five years — significantly more than the growth in Europe and North America.

■ Marketplaces are increasing their share of cross-border sales. Cross-border shoppers prefer to use global marketplaces when they shop abroad.  Alibaba, which holds half of the online B2C market in China, increased its share of online sales from outside China to 7% in 2015.  In Japan, online marketplace Rakuten reported 41% growth in cross-border sales in 2015, more than twice the growth of the domestic eCommerce market.  In Germany, France, and the UK, more than half of cross-border buyers buy from Amazon and eBay.  

■ Cross-border shopping is becoming easier and faster. Free-trade zones (FTZs) in China lower taxes on imported goods. Bonded warehouses within FTZs allow retailers to ship goods across borders in anticipation of a sale, reducing the time to deliver to the consumer to just two to three days.  As cross-border shopping develops, cross-border buyers look to reduce shipping costs and delivery times by shopping closer to home. Forrester’s survey data shows for example that 38% of online cross-border buyers in South Korea bought from other Asian countries in 2015 up from 35% in 2014.

Price, Choice, And Authenticity Drive Cross-Border Shoppers
Consumers shop across borders to find cheaper goods, goods that are not available in their domestic market, or to shop at international retailers they can trust.  Although cross-border shopping often implies longer delivery times and higher delivery costs than for domestic purchases, the price (including shipping), choice, and authenticity of products drives consumers to shop across borders:

■ Price. A country's cross-border shopping correlates with the country's average price of goods. The higher a country's price level index, the higher the opportunity for online shoppers to find retail items cheaper outside their domestic market.  For example, domestic goods are expensive in the Nordic region and in Australia, which explains why more than 70% of Nordic shoppers and 80% of Australian online shoppers have purchased from abroad.

■ Choice. Larger competitive domestic online markets, such as Germany, France, the UK, and the US, inhibit the need for shoppers to buy goods across borders.  Online buyers in countries with small eCommerce markets, such as Russia, Mexico, and India, are more likely to shop across borders to find a better choice of goods. Canada is also a small online market; it’s less than a 10th of the size of the US. Given the convenience of having a large online market on its doorstep, it is not surprising that one-third of Canadian online retail sales in come from across the US border.

■ Authenticity. Product quality and authenticity are also important factors for cross-border shoppers, especially in India and China.  Chinese shoppers favour foreign brands over domestic brands notably for luxury goods, baby food, and beauty products.  Alibaba has recently undergone criticism for not managing counterfeit goods on its websites; this has hurt its reputation and further reinforced the need for online shoppers to buy across borders from recognized overseas websites to guarantee the authenticity of their purchases.

Retailers Must Embrace The Opportunities Of Cross-Border Shopping
Shopping across borders not only helps retailers understand new consumer needs, but it also helps logistics companies develop more efficient ways to deliver goods across the globe while improving the customer experience of the online cross-border buyer. Cross-border shopping helps retailers:

■ Develop a more integrated cross-border delivery network. Shipping costs are the most common reason in Europe for not completing an online purchase.  With half of all cross-border retail taking place between regions, online retailers are increasingly investing in global logistics solutions for efficient cross-border delivery. Both Alibaba and Amazon have made major investments in global supply chain infrastructure to facilitate cross-border retail.  Amazon is expanding its logistics operations in China to reduce logistics costs and make it easier for Chinese merchants and manufacturers to transport their goods to major hubs around the world.

■ Use online habits to drive cross-border habits. As in domestic online retail, apparel and accessories is the most popular cross-border category; one-fifth of the EU-5's online cross-border shoppers report that they've recently ordered clothes/accessories from a website outside their own country.  In Australia, which is a mature online cross-border market, the growth in cross-border commerce mirrors eCommerce growth.  Inhibitors to cross-border trade are similar to those associated with online shopping — whether that’s web interfaces that don’t adapt to the shopper’s preferred device, the inability to deliver content in their preferred language with their preferred payment and delivery options, or the lack of credibility and authenticity of the goods bought.

■ Identify gaps and opportunities within domestic online markets. Understanding the categories that cross-border shoppers buy helps identify gaps and opportunities within domestic markets. For example, it can highlight different prices for the same goods in different markets or how domestic markets don’t meet online shopper needs.  In 2015 only 17% of French online cosmetics buyers bought beauty products across borders, compared with 34% of their Italian peers.  Given that France is a key provider of premium cosmetics products to Europe, it is not surprising that French online beauty buyers are less likely to shop across borders than the Italians.  

This report uses data from Forrester’s Global Online Cross-Border Retail Forecast, 2016 To 2021 and from Forrester’s Consumer Technographics® surveys to understand online cross-border shopper behaviour. Michael O’Grady is a Senior Forecast Analyst at Forrester based in London.

The post Global Cross-Border Retail Will Triple Over The Next Six Years appeared first on Cross-Border Magazine.

“In the beginning, a lot of people told us at Canyon that selling bikes online was impossible. We have proven everybody wrong.” Frank Aldorf, Chief Brand Officer at Canyon Bicycles, met with us at the headquarters in Koblenz, Germany, to tell us more about the company. Canyon, founded in 1996, has been distance-selling bikes directly to consumers from its very first day. Today, Canyon sponsors two pro-cycling teams and has grown to sell online in 104 countries, boasting a staff of 850 worldwide and has a turnover of close to €159,000,000 each year.

This article previously appeared in Cross-Border Magazine nr.2, December 2016. This issue can be ordered here.
Pictures by Léon van Bon

A true first-mover

Canyon evolved from a bike store founded in 1985 by Roman Arnold, who just like his father imported bike parts from Italy to resell them in Germany. After making the decision to create a new bike brand named Canyon, the company developed from a mail-order business into

an online pure-player. Shortly after, in the late nineties, e-commerce made its entry into European households, which gave Canyon a true first-mover advantage.

Close to the community

Arnold’s focus has since been on a close connection to the rider and the cycling community,which made him eager to provide the best bike possible. It was only after he proved successful in doing this that the decision was made to sell abroad. “People started requesting our bikes in other countries,” explains Frank Aldorf, “we started off in France and Italy, and today we sell in 104 countries. The desire to create the best bikes possible fuelled Canyon’s success to become a European business and finally a global brand.” Canyon operates 19 local offices with customer support and technical services to support its busiest markets on the ground. The decision to open local service centres was based on the market’s strength. Customers in all other countries must connect with the headquarters in Koblenz when they have a problem, and also ship their returns to Germany. Germany, France and the UK- which has been seeing a huge rise in cycling through the successes of the famous Sky Team- are the largest sales markets for the cycling brand, followed by Italy and Spain.

Competitive advantage

The first-mover mentality and online DNA clearly provide a competitive advantage in a sector where more and more brands are now starting to adopt multichannel marketing and direct-to-consumer strategies in addition to traditional sales channels. “People were telling Canyon it’s impossible to sell bikes online. We have proven everyone wrong. The business model has worked for us for a long time now, and we have gradually built up an expertise in running an online business. For others to add an online channel is not that easy, everyone must find their own way,” says Aldorf. “Canyon has a unique business model, which has given us a great advantage, but others are catching up fast. In the beginning, people thought we were destroying local bike shops by cutting out the middlemen. But that’s no longer the case, we weren’t trying to destroy anything – we were just the first to do this.”

Bike shops shift the way they think
One wide-spread argument against direct-to-consumer online sales in the bike industry is that it cannibalises local bike stores. In some cases, brick and mortar shops even refuse to service bikes that were bought online. However, according to Aldorf, the industry is naturally shifting towards new business models and it is time for physical stores to adapt: “Our approach never had anything to do with ‘cutting off’ local bike shops. Slowly, shops are now learning that they also have to build their brand to create a solid base of returning customers.

They need to focus on the best service for their community. We are now at a point where bike shops are finally shifting the way they think; their perception of core-business is shifting towards a more service-oriented approach and we are very happy about this progress. We

always suggest to our customers to make use of their local bike shops. The way we see it, we never alienated them,” assures the brand officer

Replacing the human

Traditionally, just like running shoes or cars, sports bikes have been sold by experts able to offer advice about size, fitting and positioning of the rider. In an online model, this service must be replaced by software and information, navigating the buyer though his decision-

making process. Canyon has developed the PPS (Perfect Position System) tool to help people find the correct size for them, and additionally has a 30-day return policy with no questions asked. Canyon presents itself regularly at fairs and events to provide its customers

with physical touchpoints. They strive to hire native speaking, technologically savvy customer service representatives who are able to solve most questions about the bikes, which is not always an easy job. “It can be challenging to find people with the right language skills and

knowledge of bikes, but if they are willing, we can always train them to become an expert,” affirms Aldorf.

This shows the challenge which Canyon must face being a bike brand, a bike retailer and an online company at the same time. “What people experience in online retail- for example when they buy on Amazon, is the same as what they expect from us, in this sector the standards are very high. As a bike brand, we must fulfil our customers’ expectations of having the best quality possible. We have to combine being a great online seller, a great online bicycle retailer and a perfect bike brand, which is a big challenge. While other companies are playing on just one field, we are trying to stay on top of the game on all three”, Frank Aldorf explains. Feedback and comments via social media and other platforms are always welcome, as Canyon believes in learning from the criticism they receive

Global branding

Canyon is known for being the sponsor of two pro-cycling teams, Katusha and Movistar. Of course, for the public to see Nairo Quintana win the Vuelta d’Espana on a Canyon bike, for example, it does a great deal for creating international demand. However, from a marketing

and branding perspective, Canyon does much more than sponsorship. There is a small marketing budget for each of the 19 countries who have teams on the ground. If there are matters that need to be spread globally, these teams can activate them on a local level.

Sponsoring is just one ingredient of Canyon’s marketing tactics. Aldorf claims that “Our focus is on the sport. We sponsor various teams in mountain biking and triathlon and invest in that sport. We love that our bikes compete on the highest level, however, we also put in a lot of

efforts into local, community-centred levels that are not based around the pros. We go to events, organize test rides and bike festivals. Here we expand our community and create a fan-base. Trade shows such as Eurobike (largest cycling trade-show in Europe, red.) are shifting their purpose for us: these are no longer simple industry events, they serve as a platform where thousands of people can get up-close with and try out our bikes.”

Centralized but local

It sounds like a contradiction: Being close to riders and community, and at the same time running a centralized company from a single German head office. But according to Frank Aldorf, it is a benefit rather than a challenge. Canyon’s strategy is an interesting combination

of a very centralized global approach when it comes to the general brand message, and a local representation taking care of customer care, technical support and translating the overall brand messages into what resonates best with the local audience. “Our local offices

are much better at understanding the specific needs of their markets than we could ever imagine here in Koblenz. Being local is much more than just offering a new language. It is about customer expectations, the way they wish to pay and the way they interact. Being

close to the rider is where you need the local teams who understand all the nuances and differences.” Frank Aldorf is convinced: “Our story is created here and then exported across the world. It’s easier this way and prevents our brand identity from becoming fragmented.”

Curious (little) adaptations  
When shipping to various international destinations, the assembly team at the Koblenz- based factory has to take into account local requirements when building the bikes, some examples may be:

•Bikes going to UK or Japan need to have the brakes changed to the opposite side.

•In France the law requires a bell to be included in the package.

•Boxes for shipments to Australia need to be suitable for indicating all contents on the

outside.

•In Switzerland, Canyon is called ‘Pure Cycling’ – usually the payoff of the brand

name- because the name ‘Canyon’ was already taken by a local mountain bike brand.

‘Slow-build’ strategy
Ever since pursuing international expansion, Canyon has relied on a slow-build strategy when entering new markets. This requires that quality is safeguarded when entering a market with a smaller product range, slowly building up a market share and then investing more along the way as the market grows. Frank Aldorf explains: “This plan has served us very well. It is a rather conservative approach but it has ensured we are able to serve our existing markets well and at the same time open a new market. People should not have to wait longer for their bikes just because we are expanding elsewhere. However, we also still have room to ramp up our facilities here, and space to grow.”

Off to overseas

In May 2016, Canyon announced a major step in its global expansion: A move to the US market. An investment and partnership with the US-based TSG Consumer Partners, LLC, enables Canyon to finally open up the market, following an extensive period of preparation.

“This is such a large market, at times it’s almost daunting,” admits Aldorf, adding: “We’re getting to know the terrain, for an understanding of all the possibilities. Still, as a brand you need to make the best possible start. We have to stick to our successful pattern of ‘slow-build’, even though this market is so big and therefore the opportunity is so big, there is so much demand. However, we are still a small company and we have to be careful not to bite off more than we can chew.”

Managing expectations

The main challenges of the US market include legal requirements, tax issues and differences in consumer expectations. “This will be the most demanding consumer base we have ever served. The US customers expect good service as the quality of service there is very high.

We might feel we are doing a great job here in Europe, but that probably won’t be enough for our US consumers. Still, we must strive to reach these standards.” Another important factor is expectation management. The idea of not entering the market with the full range is a safe bet, but must be communicated carefully to avoid disappointment. Canyon has assembled a new team to work on liability issues, quality management, safety documents and all other prerequisites to sell into the USA.

The post Interview with Canyon Bicycles: “We stick to a ‘slow-build’ strategy” appeared first on Cross-Border Magazine.

“The secret of change Is to focus all of your energy, not on fighting the old, but on building the new.” This mantra was the essence of Nespresso’s journey of implementing next-day in 80% of their markets. Davide Costella, Supply Chain Project Manager at the HQ in Lausanne, and Thomas Vander Putten, responsible for delivery services in Belgium, spoke about the path towards next-day delivery during the eTail delivery event in Amsterdam: “Even in a big company like ours, you cannot walk into the room and say: Tomorrow, we do next-day delivery!”

Nespresso, part of the Nestlé Group, is headquartered in Lausanne. With Georgy Clooney as an iconic brand ambassador since 2005, the company has grown immensely throughout the past years, now boasting over 12,000 employees, more than 450 boutiques worldwide and 24-hour a day customer service via telephone. However, large shares of Nespresso- orders happen online. Until recently, Nespresso promised a 48-hour maximum delivery, priding itself on the website in ‘delivering 99% of all orders on time’.  But in 2014, the company embarked on a major change: offering next-day delivery throughout the entire network.

Raising awareness
Davide Costella, who supported 8 markets to manage this transformation, outlines the first steps: “We started an operational diagnostic. How can we reach the goal of next-day delivery with the current operation? We started collecting data about our clients, our sellers, and our warehouse performance. We then ran a what-if-simulation and started challenging our existing network. Part of this was removing inefficiencies in other departments outside of Supply Chain. This can be challenging because you need to step outside of your own boundaries and show other departments that there is room for improvement.” In order to tackle this change management, Costella stresses the importance of raising awareness, give transparency and making the goals clear to all the parties involved.

‘Co-creating with your couriers`
 Next to reducing order integration times, the partnerships with carriers have to be adapted to the new needs. Vander Putten: “First, when we presented our list with needs, the carriers were concerned, as for instance opening distribution centres on Sundays would lead to extra costs.” However, Nespresso managed to show its partners the mutual benefits of adopting a more flexible delivery process. The service provider can attract more or different clients, and extra services such as the selection of a certain delivery day by the customer significantly reduces unsuccessful delivery attempts. Co-creating a new system with the couriers in the end led to benefits for both parties.

Evening deliveries more popular than free coffee
In Belgium, evening deliveries are less standard than in the Netherlands. Still, explains Vander Putten, customer research showed a big demand amongst Nespresso clients. However, when the service was implemented, only 18-20% accepted this new option. Subsequently, Nespresso launched a proactive communication campaign, which did not create a peak, but raised acceptance to a stable level of 35%. “The campaign was more successful in terms of conversion than any email campaign involving free coffee,” says Vander Putten.

Secret of success
A journey to implement such change in an organization is not easy- it takes time and energy, admit both men. So what is the secret ingredient for success? According to Davide Costella, a key factor is transparency and ensuring all parties understand what their contribution is in making the customers happier: “Nespresso is ready and committed more than ever to implement this very challenging and fascinating journey in the remaining markets.”

Photo credits: Nespresso media library

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