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~ ESW ~

In the patchy, post-Covid economy, finding new areas of growth
requires a deeper understanding of who is buying and why, says
Martim Avillez Oliveira, Chief Executive Officer – UK and
Europe, ESW.

lobal economic performance has for many site to buy. Bargain
years been compared to an ocean tide. In Shoppers, while naturally
Ga recession, the tide goes out, and then as price-sensitive, are no
the economy recovers, it comes in again. But what less valuable. Bargain
was once relatively predictable, allowing companies Shoppers will forego
to plan, is predictable no longer. This time, we owning a newly released
have a unique set of circumstances; post-pandemic item to wait for a
consumer behaviour has crashed into the end of the discount later.
era of cheap money, which has led to a very different
recovery in each country. Countries that are Wherever these cohorts MARTIM AVILLEZ OLIVEIRA,
expected to grow by as much as 5% in 2023 contrast live and from wherever CHIEF EXECUTIVE OFFICER - UK AND EUROPE, ESW
with no or minus growth in others. they shop, retailers and
brands must build relevant shopping experiences across all
Brands and retailers are, as a result, confronted with two cohorts and all channels. Relevant does not mean copying
challenges: how to protect their profits as inflation causes and pasting experiences from home markets onto new
almost all their operational costs to rise and how to locate territories but respecting local differences and supporting
and exploit growth opportunities that have disappeared on them with the right mix of payment methods, product mix,
home turf. prices, and fulfilment methods.

And all this is on top of the day-to-day business of running To achieve these capabilities, it is important that retailers
a retail or direct-to-consumer business. Even here, we are and brands do not try to do everything themselves but work
seeing a patchy performance from many of the players; some with partners that have the resources and expertise to make
forging ahead by exploiting new channels and new business transactions optimal for them and their customers.
models, and some seemingly stuck in their old ways of doing
business, unable to move quickly to operate in a world that American brand and ESW partner, American Eagle
has completely changed. Outfitters (AEO) recognised the value of selling direct to
And yet, the opportunities are there. After all, as our A consumer (DTC) across geographical borders and made the
Brand Guide to International Expansion report shows, half decision to be present wherever the customer is, whether
(50%) of shoppers plan to increase online shopping in 2023, through physical or online channels, by creating a model
purchasing that will shift away from stores. And not just at of expansion appropriate to each territory. AEO’s keys to
home but abroad, as cross-border commerce also grew to a successful global expansion strategy include ensuring a
more than $5.55 trillion last year. synchronised and unified brand voice through playbooks
and global processes that serve each business function.
Not all shoppers act the same, so retailers that want to And second, having a solid team structure in place so that
exploit this demand will need to know their targets. all partners globally have functional points of contact
For instance, younger shoppers are more likely to buy and single points of contact for each region; and, most
internationally. As the research shows, looking at the importantly, building flexibility in general strategy, product
percentage of respondents who shopped cross-border in the design, pricing, assortment, and channel strategy.
last 12 months for Clothing, Footwear, Cosmetics, Luxury
Items, or Electronics, 61% were Gen Z, while only 20% were That flexibility sees AEO leverage its US platform in
Boomers. some markets and, in others, end-to-end partners that
are composable and flexible. Working with ESW, AEO
To make it easier to sell to these potential customers, we’ve built a hyper-localised commerce experience to deliver
identified three shopper cohorts – Brand Super Fans, Power an online experience that met the brand promise to their
Shoppers and Bargain Shoppers. Understanding how to sell shoppers in just nine weeks. The solution included full-site
to them is the key to unlocking their spend. builds for multiple countries featuring localised pricing
and promotions, market-specific content and languages,
Super Fans are motivated by scarcity and exclusivity, not optimised payments and local acquiring, country-targeted
price. Power Shoppers are motivated by the convenience of online marketing, logistics management and advanced
online shopping and often go directly to a brand or retail returns and exchanges. ••

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