A traditional sports dealer on the way to a digital future
Dr. Katharina Wendl
© 2014 HERVIS Sport- und Mode GesmbH
HERVIS GOES MULTI-CHANNEL
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eCom - A look back – How it all beganHistory and development of the Hervis online shops
Multi Channel – “The new Hervis is here!“From the development of the concept to the international roll-out
Prospects – Where are we going?Our visions, strategies and to-do’s to ensure a successful future
AGENDA
eCOM – a look backA new sales channel is established.
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Hervis international
Over 173 Shops in 7 countries4 Online-Shops (AT/DE, CZ, SI, HU)
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Hervis key figures 2012● Turnover 2012: € 424 Mio.
● 2.831 employees
● more than 173 Shops in 7 countries
● more than 180.000 m² sales floor
Hervis Sports
Over 170 Hervis outlets, but …- growing competion from new pure online players- only 1 sales channel (fixed location outlets)- no central warehouse (basis for eCom full-range)
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OUR SOLUTION – THE HERVIS COUNTDOWN -> a Live-Shopping-Concept
Daily countdown: 1 Product available for 24 hrsStart: June 2009
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THE CONCEPT IS WORKING … -> 2,500 Ski helmets in just one day
FIXED LOCATION OUTLETS
Example: Ski helmetSales price: 69.99List Price: 129.99Order quantity: 2,500Sales quantity: 2,377Period: 5 months
ONLINE-SHOP
Example: Ski helmetSales price: 59.99List price: 129.99Order quantity: 2,500Sales quantity: 2,189Period: 1 day
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FROM COUNTDOWN – to MEGA COUNTDOWN -> a further development of the Live-Shopping-Concept
2011: 12 Products for 1 week / 24 Products for 2 weeks
2012: 30 - 80 Products / 2 Runs per week
2010: 1 Product for 24 hrs
But, the Live-shopping concept
is subject to a growth limit
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The market is undergoing a change.
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THE BIRTH OF THEME & BRAND SHOPS-> A logical consequence in the direction of full range availability
2013: 1.000 seasonal products for 24 / 7 availability2014: on the way to full range
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Die 3 pillars of Hervis online-shops
Hervis e-Commerce
Pricing policy:Online / Outlets similar – Centralized price adjustment
Pricing policy:Online / Outlets similar – Centralized price adjustment
Pricing policy:especially “Online only“ price (for short time) – Manual price adjustment
OUR FAVOURITE !
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What have we achieved so far ?
Online - Turnover 2012:
+30% over previous year
Online - Turnover 2013:
+51,57% over previous year
Online – Turnover target 2014:
+60% over previous year
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(Ø 1,8 items /
basket) dispatched 2013
range of products online (thereof ~800 Articles in Theme- / brand shops | 2012: 2,500 )
What have we achieved so far ?
70,000 Articles
6,000 Articles
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BUT ALWAYS KEEP IN FOCUS: Our business model and our key performance indicators
CALCULATION MODELTotal costs per piece: € 9,31
Since our e-commerce must pay-off we have to reach a revenue of
€ 15,- per piece
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However, our customers are changing their purchasing behaviour.
… and we must adapt quickly to this.
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Customers inform themselves in advance online and then go to an outlet.
ONLINE BOOSTS OFFLINE
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The customer decides ..…
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… when and where he gathers information and makes his purchases.Since eCommerce is independent of closing times and is accessible via mobile end-user devices, then time and location are increasingly becoming unimportant.
Multi-/Cross-Channel-Retailing
HERVIS GOESMULTI CHANNELMulti channel Shop Concept sets new standards
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Step 1DEVELOPMENTIntegration of the online-worldinto the offline-world.
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Step 2TEST PHASEHervis Future Store Vienna in the “Wien Mitte” shopping centre.
Shop opening flysheets
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NEW CONCEPT
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QR-CODES on the brand-labels link directly to the Brand Shops.
orders5%
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in theORDER ZONE of the “Wien Mitte“Shopping Centre using the mobile terminals.
Video : Hervis Future Store
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Step 3Roll-out INTERNATIONAL
100 outlets throughout Europe
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NEW POS MaterialMORE WAYS TO SHOP – Entrance portal
Tablet-Terminal with sticker ”Pay in Store“
Cardboard stands
Brand shops - Stickers on brand labels
Some stickers for the pillars
Ski wall
NEW SERVICES for the customerOnline ordering in the store
Click & Collect facility
Pay in Store facility
Return of goods possible in the outlets
Lots happened in 2013 …
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“Wien Mitte“: 25.4.13 – 25.7.13659 packages
of these, 85 bicycles (78 made ready-to-ride)
Return rate = 0%
Return-rate
0%
orders45%
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What else has changed ?
An introduction in ALL countries and in ALL media forms.
360 Degree Marketing - Multiscreen
eCOM - ProspectsOur Vision.
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HERVIS GOESMOBILE / No-Lineanytime – anywhere- any device
For “tomorrow‘s customers“ ….August 2013 (AT): 17.3% of our website Customers were mobile - i.e. via mobile phone (12.5%) and via. Tablet (5.8%).March 2014 (AT): 31,44% were mobile: via Handy (20,22%) and via Tablet (11,23%)
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Where will the customer shop in 2020 ?
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HERVISPopUp StoresA totally new shopping experience
The concept is based on a combination of online and offline services. Customers have the ability to scan the QR codes on the printed products, gather related information and then to purchase them. In addition, a computer terminal and a consultant are available.
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HERVISPopUp StoresA totally new shopping experience
The brands come to the customer and all thatat a low price and with a high degree of attention.
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HERVISSHOWROOMSThe best ever store innovation
In the showroom customers find only one piece of each article, but via use of the QR codes one can find the wished for goods and define the required size. Finally, the customer finds the selected goods in the allotted cabin, which can be paid for there and taken away immediately. A strategy which both optically reduces the showroom and reduces the personnel costs.
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HERVISShopping WindowsShopping via a Touchscreen or a mobile phone
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HERVISShopping WindowsShopping via a Touchscreen or a mobile phone
Thus, products can be brought closer to passers-by, even outside of normal business hours. Selected products can then be paid for via a mobile device and then delivered to the customer’s home within an hour. The aim here is to present ranges of branded goods online at locations where the target group spend their time.
OUR WAY
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POP UP STORES
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Small sales floors – great potentialsVery strong online focus, incl. seller support
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Hervis Express: Hervis Pop up Stores
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Sales support: We bring the online world to the stationary store
46Concept: Alser Strasse 1090 Wien, Alser Strasse 20
NEW CONCEPTS: Modern shop window design
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NEW CONCEPTS:Pop up Skirental
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But equally unrenouncable in the digital world …
DIGITAL WORLD
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The human factor!
OUR VISION
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Our vision of a digital company:The digital salesperson
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one distribution-tool
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5 times more articles(all colours, all sizes, 24h available)
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Customer Touchpoints – The multitude of Hervis customer Touchpoints
Up till now2014
and onwards
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Mobile assisted shopping in the outlets – with sales staff support.
Customer enters the outlet. Logs onto the Hervis sales system using a customer loyalty card App.
The customer is welcomed by the salesperson– who already knows who the customer is and what items have been bought to date. Using a Tablet, the salesperson can advise the customer and lead him through the sales process.
Using Bluetooth based iBeacons the outlets, customers can gather information themselves via Smartphone.
Alternatively the customer can scan the product details and place the product into the virtual shopping or wish list.
The customer pays for the goods either directly via the Tablet, or pays at the check-out (Pay in Store), or an invoice is sent to the customer‘s home.
The goods are delivered directly to the home of the customer via the online – shop - logistic organization, or delivered to the outlet.
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Markets: New user concepts and multichannel formats will be developed – with increasing digitalization of the POS (e.g. interactive sales showrooms, digital sales support etc).
Online-Reservations and online – stock availablity enquiries will be enabled, Click & Collect systems
The quality of customer data will be improved and utilized in smarter and qualitively better manners (e.g. Digital CRM, customer data networks etc).
Offer the customer at each Touchpoint exactly what is expected to be found there:
Advice
Information
Speed
Personality
Experience
Choice…
A look into the future
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BEILAGE NEUBut it‘s all about…
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SPORT
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SUCCESS
… and
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Thank you