Case NetAnttila HUT, ICTEC

Transcription

1 Case NetAnttila HUT, ICTEC

2 Case NetAnttila content: Net Anttila facts Department store mail order (catalogue) - web store History of NetAnttila Customer behaviour Web store architecture Future plans

3 ANTTILA OY Anttila is the largest consumer goods chain in Kesko Group founded 1952 employees 2 750, of which in department stores Anttila has four concepts: Anttila department stores (27) Kodin Ykkönen home department store (8 kpl) Anttila mail order (Finland, Estonia and Latvia) Anttila web store NetAnttila Revenue of Anttila Oy is approx. 500 m (2005)

4 NetAnttila Over visitors per week Average purchase 100 Assortment consist of products 100 % availability of goods Various payment methods Delivery in a week from purchase

5 Web store ranked by brand awareness % of internet users recognise the brand September September Net Anttila Huuto. net Ellos Hobby Hall Online Kelt. Pörssi huutok. Syksy -04, n= Syksy -05, n= Ikea Lippupalvelu Veikkaus Finnkino Verkkokauppa Biltema.com Akateeminen Elisa Shopit TNS Gallup Oy / Online Shopping syyskuu 2005 Ifi PC Superstore SSKK H&M Rowells

6 Web stores ranked by visits % of internet users have visited the site September September Net Anttila Huuto. net Hobby Hall Online Ellos Lippupalvelu Veikkaus Finnkino Verkkokauppa.com Ikea Kelt. Pörssi huutok. H&M Rowell Shop Biltem a Ifi Akatee minen PC Superstore Suomalainen. Hairsto re com Syksy -04, n= Syksy -05, n= TNS Gallup Oy / Online Shopping syyskuu 2005

7 Web stores ranked by buying from web % internet users have bought at the web store September September Net Anttila Hobby Hall Online Ellos Lippupalvelu Veikkaus Finnkino Verkkokaupp a.com H&M Rowell s Syksy -04, n= Syksy -05, n= Ifi Josefs sons SSKK CDON Hairstore Suom Akateeminen alaine n.com TNS Gallup Oy / Online Shopping syyskuu 2005 Lippup iste

8 Web store compared to department stores and mail order business Gross margin (sales price buying price) No difference or competitive advantage compared to other channels: department stores or mail order Fixed costs: labour, locations etc Fixed costs / sales is smaller in web store than in other channels Marketing costs Marketing costs /sales is at the same level as in department stores, much lower than in mail order Investments Same level as in one department store

9 History of NetAnttila Small site already in May 1996 Purpose was to test the concept and get experience Concentrated mainly to CDs and some special items on sale Assortment of couple of hundreds products After a test period Anttila decided to further invest in web business in the end of 1998 based on defined strategy and business case

10 NetAnttila strategic direction in 1998 Customers Young families Brand NetAnttila Offering Broad offering Business model Use understanding from similar web stores abroad Utilise Anttila Oy product and purchasing knowledge Utilise Anttila Oy consumer logistics capabilities Utilise Anttila Oy back end systems NetAnttila was organised as separate entity to gain momentum

11 Major changes between Growth in customer volumes 5/ visitors 5/ / Changes in customer profile : early adapters, tech oriented men : white collar, married, 60% are women Change in assortment : much the same than in mail order business: music, movies, special offers : essentially broader based on the needs of web customers. The assortment is larger than in department stores in some categories. Change in layout towards coherent Anttila brand Perception of customers towards web shopping in general

12 Web store architecture and partners Credit card companies Customer Banks Asiakastieto credit information Image repository VRK National Personal register Supplier s web sites Anttila s operative systems product data, inventory, order processing

13 NetAnttila s mission 2006: Make buying easy Web store is only one part of NetAnttila s electronic store concept Reasons to complement web store with other channels: Not everyone has an internet connection Consumers use different media at different time of the day Each channels have different role in consumers lives Not all customer buy from internet TV and mobile handset are emerging channels Digital television and mobile handset complement well web channel

14 Not everyone has internet connection TV at household 96 % 95 % 95 % Computer at household 45 % 44 % 42 % Internet connection (household) 31 % 27 % 22 % Mobile phone (household) 90 % personal mobile phone 69 % Source: Finnpanel Oy, TV-taloudet Suomessa Ficom; Tilastokeskus (02/2002)

15 Not everyone has internet connection TV at household 96 % 95 % 95 % Computer at household 45 % 44 % 42 % Internet connection (household) 31 % 27 % 22 % Mobile phone (household) 90 % personal mobile phone 69 % Source: Finnpanel Oy, TV-taloudet Suomessa Ficom; Tilastokeskus (02/2002)

16 Consumers use different media at different time of the day Source: NetAnttilan Web Traffic Monitor- Mittaus Source Tv-mittaritutkimus/Finnpanel Oy Mobiile usage estimate only Web Digital TV Mobile

17 Each channel has a different role in consumers lives Television Mobile phone Computer entertaining leasure time activity information, educations passive unplanned usage joint usage, social public always with you mobile personal getting things done impulsive, unplanned, emergencies up to date work, activities planned usage personal, private confidential Souce: Tekes, Teknologiakatsaus 118/2001

18 Successful store gives its customer options Household: Household: disposable disposable income income Share Share of of women women in in workforce workforce (%) (%) % 8 % 100 % 90 % 80 % % % 60 % 50 % % 40 % % % 20 % 10 % Käytettävissä oleva tulo (FIM) Säästämisaste (%) 0 % 0 % Lähde: Suomen tilastollinen vuosikirja, Emplyees work longer hours than ever Number of housewifes has declined 15 % in past 5 years Value of leisure time is increasing

19 NetAnttila mobile pilot: objectives Combine various technologies to one seamless operations Promote secure and easy mobile buying options to customers Gain experience from mobile commerce mobile commerce is typically order handling payment is a separate event required pre-registering uses language/codes unfamiliar to customers implementations store specific no industry standards

20 In-store kiosks complement department stores Extended selection Complete product information available for shoppers More payment options (invoice and payment in instalments) Option for home delivery

21 WAP gateway WAP-store Choose product Fill in payment card info (Wallet) Payment accepted NetAnttilan delivery process 4 5 Request for confirmation 3 IBM WebSphere Commerce Suite & Payment Manager, system integration Sign order (PIN) 9 Confirmation NOKIA Wallet & WIM phones LUOTTOKUNTA Digital payment terminal RADIOLINJA (Elisa) SIM/WIM & Certificates NETANTTILA Commerce site Certificate datebase 7 Get certificate Card confirmation 6 8 Check certificate and sign Digital payment terminal

22 NetAnttila s mission 2006: Making buying easy usage in active time white collar workers students usage at the office usage in leisure time traditionalists available for everyone usage from home families together youngsters "early-adaptors status-oriented students usage at leisure time usage outside home or office Web store Digi-TV store Mobile store NetAnttila s basic services Product information Payment options Delivery Customer service

23 NetAnttila s mission : Making buying easy Tervetuloa NetAnttilan mobiilikauppaan!