Zalando e-commerce, the European Zappos?

Yes, I want to buy in Zalando.com! Free delivery, free returns, 30-day returns guarantee and a free helpline. It´s the first time that I´ve visited an e-commerce which is selling in Spain with all this so confident and attractive claims calling to buy. It´s like the “delivering happiness” from Zappos.com but in Europe (actually selling in fourteen European countries). Fantastic!

Figure 1. Zalando is available in fourteen countries (24/04/2013)

It is something to what we are not accustomed. I think this marketing strategy is which the Spanish market was needing for to stimulate the e-commerce sales in a similar ratio to other European countries. Zalando is a clear, confident and direct “buy here my friend” online retailing without conditions and brakes to the purchase.

Figure 2. Zalando.es internet traffic evolution in Spain. Source: Semrush

The Spanish E-commerce and Digital Marketing Managers/Directors must pay attention to this e-commerce brand. In my opinion, they have many things good on which we should notice. In the last five months they have grown 100 % in web traffic (Figure 2). In one year, they obtained a global Internet Marketing Effectiveness KPI of 76 over 100 in Woorank. For example, this is closely together of the KPI of the giant Zara.com and Elcorteingles.es nowadays with 77 and 80 respectively, over Adolfodominguez.com with 71. And it is possible that in one more year it reaches Zappos.com with 87 if they improve the fifteen rooms for improvement and errors to fix according to Woorank.

Figure 3. Zalando.com global KPI index. Source: Woorank

Related articles

• RPT-Germany’s Zalando eyes profitability in core markets (uk.reuters.com)
• The Future of Online Retail is Curation says Zappos Labs (contentcurationmarketing.com)
• Adolfo Dominguez: on the right path to success (ecommerceeyes.wordpress.com)

Buyoo, the first social shopping recommendation engine

I’ve taken a look at Buyoo.com. A product recommendation solution which was published in July 2012 to be tested in the Spanish market.

Sounds like a good idea this “social shopping recommendation engine” with wish-list. In fact, it is difficult for me to see shops and shops, and sometimes I have trouble distinguishing between tacky and fashion products. So I found it interesting to search in a few clicks products my friends or other users say they are helpful, good, or that they are fashionable. Buyoo realize the “curation” of my shopping experience allowing me to discover the most exciting products  according to my personal or influenced wants, needs and likes.

buyoo: a social shopping recommendation engine

So, this is fantastic, but what is the business model? The usefulness of Buyoo is very high for the buyer. Its benefits are very similar to the benefits a buyer gets in a list of products of different brands such as, for example, a price comparison site like Google Shopping, Kelkoo, or in the sections of recommended products on magazines: clear, current and relevant information. In all cases the buyers want information about the latest products on the market, either because they are looking to buy a new TV, because you want a new complement dress or just they want the latest gadget for sale.

Buyoo has the differential advantage of being a social recommender in its conception. Unlike recommenders based on purchases made by other users, as the ones available on Amazon and many other e-commerce, in Buyoo you, your friends, people you admire, and even the celebrities you follow are who add products that are on the list of recommended products. And, these are who show their choices in their usual social networks of friends to see who is the last thing they have, what they like or would like …. It could be very viral! This increases the desire for these users to have the products and it increases the confidence in the price  and quality of the “products chosen by others“. Additionally, if the user (or the system) can add the shops where you have seen the product, things are looking good!

Buyoo wish-list

It´s as if the manufacturers have a showroom in the main shopping streets of the big cities where walkers rate and select the most desired products. But it also could put a smile in traders, also the website shows the “best point of sale”. Solve a real need in the transition of business to the online channel: gain or support market share in the new channel. Therefore, It Buyoo value propositions that benefit and attract consumers, suppliers and distributors. Then, there is business!

As a source of income, a similar model to promocionesfarma.com could be implemented here is. Without knowing the sales figures, just comment that the owner company, Novaventus, has recently secured a second round of investment funding of 1.5 million Euros by  Kibo Ventures  and Vitamina K, given the success of its business model into a increasing channel (source: Carlos Blanco). Another alternative business model is to make it a flag sales of the desired products, as does Uncovet. In the e-commerce channel, still untapped totally and with an expected continued growth in the coming years in Spain, where he is testing the website, Buyoo have good chances to do business.

Over time we will know more of the Buyoo strategy and I will discuss of the keys of this startup marketing strategy to get customers and as generate money.

I Hope they have a great success not only in Spain, but also internationally.

Please, if you know any spontaneous recommendation engine, I appreciate that you send an e-mail to me with the information to be making a comparison between them. Surely in Silicon Valley, someone has already invented a new one with new differential values. For now, I add these recommendation engines and I hope to add the comparative soon:

• http://glance.apps.zappos.com/
• https://www.opensky.com/
• http://www.thefancy.com/
• https://uncovet.com/
• http://eu.fab.com/
• http://www.ofakind.com/.

Related articles

• Wooplr – A Social Shopping Discovery Platform (lighthouseinsights.in)

40% of popular children´s fashion brands are not yet selling online

Apparel sales will lead the e-commerce growth through 2016. This is possible thanks to the principal brands, which are investing in robust e-commerce solutions, and to shoppers who are more confidence in buy online. But, what about the children´s clothing brands? Are they following this trend?

Well, one of the sub-categories of the apparel which is waking up is children´s clothing brands. However, there are still many of the most popular children´s clothing brands which are now selling online. I have searched the principal brands and I formed this list:

Catimini, Chipie, Clayeux, Deux par deux, Devi, Diesel Kids, Greggy Girl, Indygo Artwear, Jottum, Juicy Couture, Kids – TRUNK LTD, L’orange, Lipstik, Little Mass, Luna Luna ,Copenhagen & HubcapKidz, Mayoral, Meli Meli, MIM-PI, Mimi & Maggie, My Vintage Baby, Oilily, Tea Collection, True Religion and Wes and Willy.

I have willfully avoid the biggest, gigant brands like Zara.com, HM.com, Gap.com, etc.  (Figure 1) because, in my opinion, all they have a notorious history of online sales in the  last 3 years. My intention is to analize the situation of the popular middle-size brands in the market to determine if they are mature on Internet sales.

Figure 1. Main Apparel Brands – global Internet visits.

And I have selected five more popular considering no geografic location filters, in all the range of time available, and cathegory Shopping/Apparel/Children´s Clothing using the tool Google Trends.

Finally I found that these are the five most popular (Figure 2): Catimini (France), Tea Collection (USA), Oilily (The Negerlands),  Mayoral (Spain) and Luna Luna (USA) .

Figure 2. Children´s clothing brands google trends (without Zara and H&M)

All of them have a correct web page, but two of them don´t have an online shop yet (April 2013): Mayoral.com and Catimini.com.

Then, considering that the sample is good, this means that at least the 25% of the middle-sized and smaller children´s fashion brands are not still selling online.

This 25% of brands in our sample which have no online shops, should be influenced by the culture of their countries. Both are European. There, in those countries, the e-commerce had been growing more slowly than in USA until 2012.

In France and Spain, the proportion of Internet users who shop online was of 63% and 29% respectively (Figure 3). This data is especially low in Spain. And so, we can understand that, due to this influence, an international apparel brand like Zara.com didn´t have its online shop until September 2010.

Figure 3. Proportion Internet Users Shop Online. Source: IDATE. World Internet Market, July 2012