From Visions to Reality
SIMPLEWISH , Case study of an E-commerce tool in Central Europe:
Characteristics of potential markets, barriers and opportunities of market
entry.
AUTHORS:
Escobar Rios Andrea / Valdez Acevedo María José (2014)
Vienna University of Economics and Business
Vienna University of Technology
• Structure of presentation:
o
Introduction
o
Main Objective
o
Research Questions
o
Methodology
o
Main Results
o
Conclusions (Recommendations)
1. INTRODUCTION
1 OBJECTIVE
• Austrian team
• Members:


María José Valdez Acevedo, 6th semester,
International Business at Tec de Monterrey Campus
Ciudad de México
Andrea Escobar Rios, PhD. Student, marketing and
management science at Tec de Monterrey Campus
Ciudad de México.
• Name of the business: Simple Wish

Created by Valentin Aschermann, Christoph Bitzner,
Jakob Reiter, Christoph Aschberger, Dina Tasic and
Karl Schauenstein, on 2012, Vienna Austria.
WHAT IT IS ABOUT
Simple Wish is a free online tool that simplifies the
group gift process by :
1.-Create a gift box
2.-Invite friends to chip in through facebook
3.-Deliver the gift
It currently operates in Austria and has a partnership
with Amazon and Jollydays.
MAIN OBJECTIVE:
The main objective of this study is to determine if the service offering by
“SIMPLEWISH ” is attractive primarily for the market for which it has been
developed mainly for Central European countries as Austria, Slovakia and the
Czech Republic. The research is based on statistical data of each country to
be comparable with markets outside this area, such as Spain, Turkey, Russia
and one from Latin America like Mexico.
2. RESEARCH QUESTION
• According to the different characteristics of E-commerce
markets analyzed in this study, what are the barriers
and opportunities for the market entry for
SIMPLEWISH?
3. METHODOLOGY (TWO WEEKS)
1. Meetings: with Austrian students and company representatives
2. Theorical lectures: Dr. Rainer Hasenauer (Technology Marketing,
Hi-Tec Marketing)
3. Deep market research of European countries based on statistics
derived from the major institutions and indicators of each country.
4. Subsequently data is explored and presented from other markets
outside Central Europe (Turkey, Russia, Spain) and one in
Latin America as a special case: Mexico.
 For this last country, a tool (survey) was generated by
occupying the social network “Facebook”. 128 participants.
• Research design: Descriptive study
3. MAIN RESULTS
TOTAL
COUNTRY POPUATION
(millions)
Cross-border
Social
E-commerce
orders of
INTERNET
Average
E-shoppers Media
turnover individuals of
USERS
Spend per E(millions) users (total
Goods and
goods and
(millions)
shopper
population)
services (bn) services within
Europe
CZECH REP.
10.5
7.5
6
54%
€
581
€ 2.10
5%
SLOVAKIA
5.4
4.32
2.37
50%
€
212
-
17%
AUSTRIA
8.4
6.6
4.7
26%
€ 2,085
€
9.80
• Czech Republic presents a stable growth in internet users
• 80% of total population of Slovakia has internet Access. 17% of the
cross-border orders of individuals of godos and services within Europe
• Austria’s average Spend per E-shopper is superior tan the other
countries. (2,085 euros)
--
3. Main results (Alternative Markets)
TOTAL
INTERNET
COUNTRY POPUATION
USERS
(million)
(million)
Spain
Turkey
Russia
E-commerce
EAverage
Social Media
turnover
shoppers
Spend per
users
Goods and
(milion)
E-shopper
services (bn)
46.19
75
143
33
40
68
15
7.5
20
61%
75%
40%
112
45
17
77%
€ 865
€ 1,180
€ 515
€
70
€ 12.96
€ 5.40
€ 10.30
Cross-border
orders of
individuals of
goods and
services
10%
10-15%
4.7
30%
Mexico
• Spain’s increasing sales by 63% between 2007-2012 and with current
sales of 12. 96 billion euros.
• B2C total sales in 2012 were 5.4 billion euros, 75% more than the
previous year. High amount of average spend per e-shopper is the
second with 1,180 €.
• Russian ecommerce sales 35% between 2011-2012 (7.6 billions in 2011
to 10.3 billions in 2012)
• underdeveloped retail structure
• currently being 25000 retailers but with growth estimations of 100,000
in 2016 and 160,000 on 2020.
4.CONCLUSIONS (RECOMMENDATIONS)
Potential markets: Russia, Spain, Turkey
•
Focus first in the immediate potential markets in order to
gain part of the market share before more competitors enter
the market.
•
Increasing ecommerce sales between 35%-75%
•
Know each particular market country in order to reduce
rejection of the product and its time to market
•
Analysis and implementation of particular market strategies
Non-immediate potential markets: Czech Rep,
Slovakia.
•
Less expenditure per e-shopper and low market readiness
•
Future market entry as this countries have a tendency of
increasing the amount of e-shoppers and media users.
Opportunities & Barriers
OPPORTUNITIES
BARRIERS
Consumer’s behaviour
Language
Variety
Lack of confidence
Better Prices
Complex VAT requirements
Bigger Markets
Delivery Issues
• E-commerce and e-shoppers have a positive tendency of
growth
• The results of the survey were very favorable to SIMPLEWISH
• Mexicans are very fond of celebrating big parties with a lot of
people.
• Big cities with a vast population such as Monterrey or Mexico
City could be ideal markets.
• Mexico could be a pilot study for SIMPLEWISH to enter new
markets such as Central and South America
From Visions to Reality
Thanks for Attention
www.fromvisiontoreality.sk