Ecommerce Brasil 2014 eMerchandising

Intro 1. catalog 2. search 3. micro merch 4. visual merh 5. organization Latest trends in E-

MerchandisingUsability and Information Architecture on large e-commerce catalogs

12 Augusto 2014

Intro 1. catalog 2. search 3. micro merch 4. visual merh 5. organization

Gaëtan Belbéoc’h

Over 12 years on e-Commerce & Web

@ France @ China (6 years)@ Brazil (since 2013)

Laredoute.fr France no1 in e-commerce of ApparelL’Oreal world’s no1 in CosmeticsAdeo Group & Leroymerlin world no3 in DIY


About Leroy merlin

mission: “Helping people improve their living environment

ConstrutionDIYDecoração Gardening

16 years in Brasil 7.200 colaborators 32 stores 2 CD e 2 Platforms


Cross Channel approach / sharing the same resources with the rest of the company

100 K products and 1000 complex categories1. Few product experts available2. 25% product renovation / year3. A very « low-tech » supplier base 4. Hard to get data and low quality pictures

Our main challenges


with the maximum efficiency through automated rules, easy to operate by anyone

Capture knowledge and experience from experts

Less fully automatic « big data » intelligence

More semi automatichuman-created algorithms


A short history

01/ 2013 May Nov May 2014

V1

V2

Soon


X 3 - 60 000 products in 1 year largest online catalog in Brazil home segment 70% of product range « cleaned » in 1,5 year

Catalog offering

Usability

Online customer satisfaction > 8.5 / 10 for 1 year

Scored no 1 on 15 out of 16 items on survey « revista REVENDA » june 2014 (2000 participants)

One of the first responsive website in Brazil

Our sucesses 2013-2014


x 5 in 1,5 year healthy organic growth : Bounce rate 20% number one in home centers & decoration

pure players in Brazil (Alexa) from 6th to 2nd position worldwide in group

Adeo

Traffic

Our sucesses 2013-2014


Shopping before 1920: ask the sales attendant!


Self Service


then it grewLargest carrefour 25500 m2 (1972)Over 200 000 sku


Clients: struggling to choose between similar productsRetailers: « Is such a huge choice really profitable ?


Carrefour downsized his largest stores by 6000 sqmto improve profitability

Lefigaro.fr 11/2008

Tesco finds its mega stores are a waste of space

[reduce size by selling to restaurants, gyms…]

the Guardian august 2013

Walmart US accelerates small store growth

news.walmart.com 2/2014


Study on a leading grocery retailer

25% of its stocked items accounted for almost

2010

100% of its profits (On a set of core categories)

By


This is the origin of Merchandising

maximize profitability per square meter?

How do I

planning involved in marketing

the right product at the right place, at the right time, in the right quantities, and at the right price.


From the 70’s to now:Merchandising is improving profitability / M2

Intro 1. catalog 2. search 3. micro merch 4. visual merh 5. organization What about the

Web? Few profitable e-commerce players yet

Focused on growth first (profitability later)

Increasing catalog size (Amz > 200 millions items)

Launching market places


Amazon (shampoo, yesterday screenshot)

Isnt’t merchandising important for the WWW?


3] Micro merchandising

1] Catalog organization [macro-merch]

4] Visual merchandising

Web Merchandising

2] Searchandising

Intro 1. catalog 2. search 3. micro merch 4. visual merh 5. organization 1] Catalog

organization

A – Contents and products relations

C- Multiple depth classification

B - Multi exposition of categories

D- Multi – trees arborescences


A – Content and products relations

Top level category:generic subjects


All contents about « ar condicionado »

2nd level of hierarchy: « ar condicionado »


3rd level => produt list « ar condicionado split »


Product content relations

Product tagging (like facebook face-tagging)


[1]

[2]

B - Multi exposition of categories


1

Case 1: 4-levels hierarchyC- Multiple depth classification


2


3


4


1

Case 2: 2-levels hierarchy


By style For professionals By projects By brands… Landing pages for SEO

…develop multiple ways to access products and content:

D- Multi – trees arborescences


1st level:

By room

2nd level:

By style

First test: navigation by style « inspire-se »


Navigation is mixed between browsing and searching

Send visitors to hand-organized categories preferably

2] Search(andizing)

Better search experience

Better catalog organization


A. Quick-search / suggest


B. Shortcuts

Funnel and guide visitorsthrough the

catalog


> How it works

Categories ProductsContent

Customer data

SearchFacets

Quick-srchMain srch

indexes


3] Micro merchandising

A - Facets- Ordered / clean facets- Visual facets- Customer oriented facets

B – Cross / Upsell

- Hand picked cross-selling- Big data automated cross- Rule based semi automated cross- Advanced case


A – Facets >

clean characteristics first


visual facets : ideal when it’s hard to express

A – Facets >


customer oriented facetsA – Facets >



- Hand picked cross-selling

- Big data (affinity analysis)

- Rule based semi-automated cross

- Advanced case


hand picked cross/up selling

high value, small product

range

B – Cross / Upsell >


Doing a pretty good job at the start

Probably lower affinity score,

Should we display this?

big data, collaborative filtering B – Cross / Upsell >


rule-based cross-selling

Rule: Same voltage+

Similar power+

With cable (no battery)



Rule: Compatible drill bits


advanced case

Specify the surface needed



4] Visual merchandising

A- Responsive-design

B- Differenciated merchandising


A- Responsive-design

4 break points

- Big screen- Computer- Tablet- Mobile


Results:

Very positive effect on mobile traffic ( + 60% )

Better use of available sreen = Better usability !

Optimize image size for mobile Standardise all your interfaces ( pattern

labs ) Test on real machines too ( touch screen )

Our learnings:


24 products on 1 screen


Only 4 products on the same screen


B - Differenciated merchandising


1. Kitchen products (lm.br)


1. Kitchen specialist website


2. Category painting (lm.br)


2. Category painting: specialist


3. Hardware category (lm.br)


3. Hardware specialist


Our organization

Around 30 people including- Product / supplier team- Web Tech/Marketing team - E-Business team


Working agile with a touch of Do it Yourself \^o^/

Ecommerce Brasil 2014 eMerchandising

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