Mothercare rolling out best online practice to its 60 international markets
Mothercare is predicting significant online growth within its numerous international markets as it rolls out a global e-commerce platform that will ensure all countries have access to the latest technology and best practice. By Glynn Davis
Ahead of speaking at The Retail Bulletin International Expansion Summit 2013 on March 26 Olga Nazarkova, Head of International Retail and E-commerce at Mothercare Group, ran through the major online developments taking place at the company.
To date most of its franchise partners in its 60 international markets around the world have developed and operated their own localised websites, which has worked well, but she says: “We’ve done trials and built a global platform in order to achieve consistency in each of our markets and we’ll begin rolling it out this year.”
The company recognised the need to create a tool that enables its franchise partners to use more advanced technology, which many have not had access to in their local markets. Nazarkova admits that in contrast to the significant support Mothercare Group has given its franchisees with regard to stores this had not been replicated online in the past.
Never Miss a Retail Update!Having been on a “long journey” – involving two years of in-depth work – she now believes the e-commerce platform is ready to be made available to all its franchisees.
And ahead of the roll out there is confidence in its potential to improve the business because of the success of a trial to replace locally built web sites in Ireland with the Mothercare franchisee, and in Russia with the Early Learning Centre franchisee. The result being: “It has helped grow sales dramatically as the platform is more SEO friendly and simply more scalable, which has driven huge increases in traffic and conversions. We’ve been very happy with the software.”
In parallel with building its global platform, Mothercare became the first international brand to launch fully transactional web sites in Indonesia and Kuwait in 2012. ‘The uptake was hugely successful in both markets. Mothercare Indonesia already has the second largest Facebook fan community, after the UK which has meant that customers were ready to start shopping online’
The potential for greater online sales overseas looks strong. For one thing, many overseas markets are growing their online split of sales at a far faster rate than was seen in the early days of UK consumers adopting the online channel to buy goods.
Secondly, the overseas stores tend to be small high street outlets so the online sites enable them to dramatically expand their ranges especially non-clothing lines that are not typically the area of focus for franchisees in the outlets.
With the new platform in place Mothercare is set to leverage the fact its home UK market is one of the most advanced in terms of e-commerce and multi-channel retail, whereas in contrast most of its international markets are emerging economies and therefore Nazarkova says are some way behind.
“Most of our franchisees need help with redesigning their organisations and help with thinking more as multi-channel operators. Often e-commerce channel growth has been limited by simple things like the back office operations not being built with an online channel in mind, a different way of product ranging being required, and needing to recognise that customer journeys are changing.
Much of this we’re used to in the UK, where we have a different platform, but it’s not the case overseas. We’re therefore holding their hands and helping them avoid the mistakes that their rivals are making,” she explains.
Although each country will have the ability to localise their websites for their own markets – by introducing local language, currency, delivery options, and integration with local systems for instance – Nazarkova says the serious benefit of having the global platform will come from making changes at the central point and these being reflected in every single global market.
“It lets us introduce new technologies to all our websites at a rapid pace. And if we change a product photo then we need to do it only once, and all the product data needs loading up centrally only once. This gives great economies of scale, eliminates lots of manual local tasks and makes the route to market much faster. This will make each franchisee’s e-commerce offering very competitive in their markets,” she says.
Such will be the effect on Mothercare of having the global e-commerce platform that Nazarkova suggests it will “change the way of looking at franchising”. She adds: “Previously we’ve focused on the bricks and mortar capabilities of our potential partners in the new markets but now, in addition to that, it’s on their multi-channel skills and experience. It’s a big difference.”
These franchise partners will now get a “much more comprehensive package”, still comprising the brand and stores guidelines, merchandise and equipment but now also web guidelines along with localized, ready-to-go web solution based on global e-commerce platform.
This should enable each franchisee to much better handle the balance of sales they receive across their various channels, thereby creating a much more valuable multi-channel proposition that benefits both the franchisee and Mothercare.
Olga is part of a top-quality speaker line up at the 2nd International Expansion Summit 26th March 2013 including George International, Bench, Costa Coffee, Hobbs, The Hamleys Group, Alliance Boots, Austin Reed, Icon Live, Codex Global, The Javelin Group, Field Fisher Waterhouse LLP, Ogone UK and Codex. The event is designed for UK retailers who are planning for and are developing an international growth strategy. Register now to secure your place.
