Zalando e-commerce, the European Zappos?

Yes, I want to buy in Zalando.comFree delivery, free returns30-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!

Zalando is available in the following countries (24/04/2013)

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.

Zalando.es internet traffic evolution

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.

Zalando.com global kpi woorank

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

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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 social recommendation engine

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 wishlist

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:

Adolfo Dominguez e-commerce: on the right path to success

Since 2009 the Spanish fashion brand Adolfo Dominguez (www.adolfodominguez.com) has been in a challenging process to recover its viability. The plan is to center sales in the international market and Internet. In this way, Adolfo Dominguez is closing some shops in Spain and is opening other new franchises outside Spain. Adolfo Dominguez expects to have the 50% of sales in the international market in year 2015 and 80% in year 2020. 

Adolfo Dominguez is doing a multichannel distribution through its own shops, franchises, vente-privee (private sales) and general traditional commerce like El Corte Ingles. To these channels Adolfo Dominguez added rightly the online channel sixteen months ago. 

e-commerce fashion brand Afoldo Dominguez

Adolfodominguez.com E-commerce Rules

Nowadays (March of 2013) the e-commerce site adolfodominguez.com is working in 23 European markets and represents the 1th shops in sales on the world, with near of 20% of total sales of the company are on the Internet. This accomplishment was certainly the outcome of hard work of Valeria Dominguez (E-commerce Director), her team and Estanislao Carpio Martinez (Camper e-commerce) the new Managing Director since September 2012.

The company still has to improve its numbers in the short term, but certainly these changes are on the right path.

Like other important brands, Adolfo Dominguez is making a big effort to get market quota through SEM, SMO and affiliate marketing. This last looks to be the big bet of Adolfo Dominguez. Recently they have signed a contract with Zanox, which is the European leader in affiliate marketing, to generate incremental results on sales through their different models of services.

Relevant facts and figures evolution:

• 2010
Turnover: 166.93 million euros
Profit: – 4.78 M €
International sales: 24%

• 2011
Turnover: 153.13 million euros (-6.34%), Internet turnover: 0,98 million euros.
Profit: – 9.26 M €
International sales 2011: ?

• 2012
Incorporation Estanislao Carpio Martinez as Managing Director at AD. (He was one of those responsible for the success of Camper.com)
Turnover: 148,44 million euro (-3%) . Internet turnover: 3.9 million euros (+387%)
Profit: – 23.9 M € (+158,4%)
International sales: 41.8 M €

More information:

http://fashion.comunicare.es/branding/las-10-reglas-de-juego-de-adolfo-dominguez-en-el-ecommerce/