Proxiazur CEO European electric Business experience sharing

"Billion Power network" November 23 ~ 24th, by the Ministry of Commerce E-commerce and Information Technology Division, Chengdu Municipal People's government and the Sichuan provincial business office support, billion power network hosted the seventh annual China online retail conference, Belgium's largest on-line sales of multimedia and traditional books store Proxiazur CEO Jo Vansteenvoort shared the experience of the electrical business from Europe.

Here's a transcript of Proxiazur CEO Jo vansteenvoort:

Jo Vansteenvoort: Good morning! I am Jo, I am very happy to come to Chengdu, I would like to say that my speech is about some of my personal experience, including our EGATE2C company, I am the managing director of our company, it runs through my experience and experience, first of all I want to say, who are we? We are in the centre of Belgium, we handled 400,000 items and parcels in 2012, and we have a half-docking warehouse that rotates more than 150 times a day, so we offer delivery of goods throughout Europe.

What is our core business? We have a consumer market, and we sell DVDs, books, Accessories and gifts, which are all for business, and it covers the whole of Europe, and everything has 300 euros of small items. We also have a market where our other core business is called business-to-business, and it mainly transmits our books to the library. At the same time, we also have a newspaper bulletin, kiosks and small bookstores, which is our third core business.

This is our business model for business-to-business, Business-to-consumer, and newspaper kiosks, small bookstores to provide them with books, through our own warehouses, through our own electrical business channels to achieve this.

We have our own marketing model, where do we come from? Or where did our experience start? First of all, we were the first to sell multimedia magazines in 1996, when our multimedia magazine was called "Mediao," which was selling CDs in this way, and then 1999 we sold DVD, and we were targeting the European market, mainly in central, eastern and Western Europe, where our electric dealers flourished. We entered the market for Azur in 2004 when we bought the company. In 2011 we went into the warehouse business, which was through our own warehouse to increase distribution channels, so we consolidated the EGATE2C this project.

Through the slide can see, first of all through you to identify myself, he is what kind of himself? That is, we have to have an identity and identification, who are we ourselves? We use this marketing channel to create customer loyalty to our brand. So, we have our customers, they are very loyal, we choose an image spokesperson as the representative, and then we have to communicate with customers, we need to have the trend of communication, we all know that the trend of communication is now becoming more and more complex, we know that the importance of e-mail is declining, Probably dropped by 30%. News letters and catalogues were previously available by direct Mail, and are now down by 30%. There is also a social media, now it is very hot, and the use of a very large number of people involved, it is now a big trend, it is not to sell, but to spread word-of-mouth and customer loyalty and credibility of a way.

Everyone knows that mobile has now become a new mode of electrical business, it is not just on the scale of a site to shrink, as if it were a mini version of the site, in fact it is the launch of new marketing methods to become possible, through the mobile terminals, everyone has a smartphone or tablet, through the intelligent terminal it is the way to move, To communicate the message we want to convey to the terminal customers. Now, it's equivalent to a smaller version of the site, you know, like a lot of magazines in the tablet computer version, there is a mobile version, now a lot of news letters or magazines, can load a lot of information, including some software ads and hardware ads and so on. In this way, we think it is a new way of electrical business, and eventually turn offline sales into a possibility of online sales, that is, to convert your order rate. Now you know, new trends, new platforms, is constantly strengthening, now there is a I Want, is now I need, that is to put all the things together, or your wish list, or your shopping list all the things can be put together, you can be packaged sales, rather than individual sales. Another interesting trend is the sense of green, what does this green feeling feel like? is environmental protection, low-carbon, economic, in your marketing channels, in product publicity, in your promotion, you must have this feeling, for example, you are selling toys, it must be green, and should not use a very wasteful power of the battery, it should be used electricity or light irradiation can move, and it uses energy-saving.

I came to China I found I was lost, lost, I found that China has too many products, too much consumption behavior, and there are too many marketing methods. This is the 4th I want to say, the 4th is too many things to find the choice, you should have a classification or consumption of guidance and guidance. Now I know that there are tens of thousands of electric dealers, and the pattern is complex, like me, a person from abroad you will guide me.

As you know, we now face a lot of challenges, like Google occupies 60% of the market share, if I do not advertise or advertise on Google, I lost 60% of the market share. So, on Google to do related links or do some keyword search is very necessary, it is not unique, and SEM is the search engine optimization is now more urgent than before, through the calculation of the model and search engine optimization, and then put you in the front.

The 4th is the price comparison website.

The 5th is who has a cookie, it is a software text, is the server placed on your computer text, once you landed this site, it will leave this text in your place, next time will record your number, now who has this thing, there is a specific direction. In other words, we have to materialize the action, and many strategies and plans form a partnership. There are many changes in our industry, the biggest change is chaos, chaos is a lot of things, and now our traditional retailers are also constantly entering the electric business, the formation of an electronic network sales trend, that is, online sales into sales, sales and marketing through the Internet to achieve. There is a free shipping way becomes a standard, is it profitable? This requires us to consider two, one is Wal-Mart's Way, one is the way of electronic retailers, that is, the traditional model and the model of the electricity quotient, which has four standards: price, service, the scope and convenience of providing products. You cannot provide both offline sales and online electronic retailer sales, if you really want to cover all areas and aspects, you may lose your market, because you are not targeted, you can not provide the most competitive price, you can not provide the best service, the product of this experience can not be very good, Convenience is also not satisfied.

So the other change I want to say is trust and security, now becomes the only keyword, if not get the customer's trust, or the customer's information is not guaranteed, and the customer ordered product security can not be achieved, how you to shape your reputation, increase your market share to get more customers.

And one more thing, where are we in the Boston matrix? The Boston matrix is a matrix provided by the Boston Business Company, a method of enterprise product mix that includes four, where do you go in this matrix? The first is the problem-oriented business, which refers to high-growth markets, the second is high market share, the third is the low growth of cash flow, and the fourth is low growth and low share.

And one thing is to take care of the last mile you have to take care of us there are also changes in legislation in Europe, VAT by 2015, VAT is paid by the exporter, and after 2015 years it is the importing country that pays the VAT. Non-EU products to enter the EU countries, you have to pay VAT on your product in accordance with the corresponding regulations and different tax rates, which is typically 19% of the tax rate, and if the customer buys from you, get some information from you, which includes you telling him exactly how much VAT is entering the EU VAT rate, There is also a return time is now 14 days silent period, if more than 14, this return is not allowed, can be refunded, but to levy fees. But within 14 days, returns can be returned for whatever reason.

Look at this case, there are many FMCG industries need to introduce a new product, or have a special market positioning, but also need a special distribution channel, no matter which product or product category can be tested, I give you an example, is because it takes more than three to make a multinational. Here is a Pepsi-cola example, perhaps you know in the United States and Europe to swim a mountain, do not know if there is a product in China? In this case, we have a link to Europe, a reporting system, and you can see that Pepsi is marketing in every way, including Facebook and blogs, PR, social media and other electronic channels. Why should Pepsi-Cola choose these channels? The reason is Pepsi wants to have a good because, the product is very good and the market connection. This is the definition he gives to the product, and in retail, the product will sell better.

We have to look at their needs, our solution, first of all we have to have an electronic sales site, but also have some backstage operations, warehousing, and electronic payment, all aspects must be connected.

Now let's see how Egate was born? Why look at the experience of Egate's birth? Now we have a sales company, they mainly include the completion and successful trading operations, this is Europe, can see a lot of markets in Europe, where we have 27 countries, 27 countries, the language is all different, here a little bit, this is Belgium, If you drive 100 kilometers, you can actually cross the border of three countries. Here we also accept a variety of currencies, such as I am a consumer, I want to do online shopping, I want to buy the new "007" Products and Sony products, we go to Google to see what the search for something, and then see the keyword to enter the price of the site, please forget consumers may be the comparison, here you can see, A lot of quotes have come up, I can click to see 425 euros good this price, another price is 399 euros, cheaper, and click on the other one, look at 486 euros, why do I buy this? It's much more expensive. As Adam Xu said the brand is very important, you have to have a channel to have a brand to link them with the product, this is the final result, we look at what consumers are thinking?

We can see the balance above, one side is the emotion, the other is rational, that is, the sensibility and rationality of a balanced, you can say I finally found the product, too good, too perfect, I want to buy this. The other side, the consumer began to think rationally, I now found this product, but when I can get my products, how fast he delivers, I am not relying on such sites and products. And as John said, you have to be honest, you are a Chinese enterprise, this is necessary, so trust is very important. There is also an import tax, such a commodity online purchase whether consumers want to pay VAT? And is this the currency of the dollar or the pound or the euro? Never sell products in dollars in Europe. and returns, if you buy a product, we also have a reverse logistics is very important, if you want to return, such as in Hong Kong and Beijing, you may be too far, and we have to realize that 60% of the goods will be returned, this is a brutal fact. The other is, credit card, I gave you credit card information, in Europe, in Belgium, is a very serious concern, I can not go to trust such an electronic retailer, he will not abuse my credit card?

This is a graph, I first have an electronic retail store, as well as ERP, financing, administrative system, as well as my warehousing system, this warehouse is to do some of the turnover of goods and do some distribution. Finally make the consumer very happy, very satisfied, I think the happy consumer is very necessary, we always want consumer satisfaction, because consumer satisfaction will also provide us with a good reputation and feedback. Warehouse below this is the external inventory, a lot of people are operating a method, we have warehouses, there are external warehousing to keep our inventory to a reasonable level, and with external suppliers to maintain a reasonable relationship, they provide us with the daily distribution of electricity. So, this is our goods flow situation, there is a reverse logistics, you can see the blue dotted line to provide us with the reverse logistics channels, if someone is not satisfied with our products can go such a process, through the Customer service department to return to the administration, finance. If we are going to Europe to develop, where do you cut into a chain like ours? Perhaps now we have an electronic payment platform, can be integrated, one-stop service delivery, or do we have warehouses in China or the warehouse in Europe? I would like you to choose, first look at your product categories, and then see which arrangements in China, which arrangements in Europe. In addition, is to provide consumers and customers with the greatest value-added, this chain is not absolute, we can according to their own unique place to adjust, such as distribution is very confident, this link can also be arranged to the appropriate country to go, this is the user experience decision.

So, finally, to give you some final tips, the first is added value, I believe this is very important, we have to look at what you can provide consumers with the added value, if you do not have the added value of not to try, do not go to the electric business, you will lose money. The second is that you have to spend enough marketing money, on average our money is about 8% to 9% of the turnover. The last one is we have to stick to the plan, if you have a strategy, then you need to know how to do, what to do, but also to adhere to, unremitting efforts to carry out the fight, so I welcome you to Europe, thank you!