Millennium Depression Preludes Globalizing, Digitizing Economy

Martijn J Hoogeveen PhD“Naar een Overtuigende Koopervaring”

(WWVD, 23 januari 2013)

Martijn J Hoogeveen

• PhD multimedia marketing 1994

• “Het Net”, 1st free access infrastructure KPN 1996

• Professor multimedia/ecommerce Open University Netherlands, 1998-2004

• “TakeitNow”, 1st computer etailer, January 1999

• “Iceshop”, 1st webshop Application Service Provider, 2000

• Co-founder “Thuiswinkel.org”, NL/EU homeshopping organization, 2000

• “Icecat” started as local competitor of Cnet, 2001

• Participation in chain of CIS marketing agencies Publicis, 2002

• “Open Icecat”, No1 global open content catalog, January 2006

• Takeitnow sold & buying Vivendo, Sanoma/Kieskeurig Content Pro, 2008-2012

Only focus on what you Love & Believe in

The Power of Social Media

We are All Journalists

Development of Ecommerce 1995 – 2013 in Four Windows of Opportunity

1995 1999 20132006

Brand value management window

Etailer window of opportunity

Ecommerce ASP window of opportunity

Ecommerce content window

Only Focus on what’s BIG & Disruptive

1000’en (lokale) niches

Ecommerce Business Development: Seven Lessons Learned

1. Cash in on Early Mover Advantages (temporary uniqueness)

2. Focus on Unique positions in a value chain and device USPs.

3. Timely divest when the Window of Opportunity is closing and you’re not No 1.

4. Negotiate the Exit at the Start: Tag along/Drag Along!

5. Focus on Big: differentiate Local from Worldwide opportunities

6. Use “open” source/content strategies to apply scourge earth tactics

7. Ignore the cycles of the general economy, as ebusiness is a long cycle (Kondratiev)

Ebusiness is a Long Kondratiev Cycle (50 years or so)

• It’s a Marathon Not a Sprint

• It’s about Transforming the economy into a Digital Global Economy

• Its Creative Destruction ruins complete Business Chains

• A Depression is sign of Rationalization before new Wealth is created

• Economic pictures are blurred as many cycles interact with each other

What do You Think You Contribute to This?

Internet is our infrastructure. More users in Asia than in Europe and NA combined.

We have become One World, One Global Economy

The Business Rules are Distinct in the Digital World: “Open” (Free) wins from “Closed”

Publishers are Shell-shocked about their Property Rights

Free “Open” Community stuff… Is this a Kind of Neo-Marxism?

No – Erst das Fressen, dann die MoralStill, No Free Ride in the Physical World of Scarcity (Time, Space and Materials)

Yes – Ideas are FreeGreat Free Content, Sources and Communication Services in Cyberspace (the biggest copier in the world). Open Hardware projects in infancy.

Richard Stallman, GNU-project, free software-activist

When the Cost of a Download Approaches Zero

From a Closed Catalog to an Open Catalogto a Sustainable Catalog

#1 Open Catalog: Global, Fast-Growth, Disruptive

Icecat: Meeting the Needs of Etailers

• Product IDs: MPN, GTIN (EAN/UPC), Model, Category, Family, Series

• Basic data: Original marketing text, Standard specs, Summaries, Searchables, Feature descriptions

• Product images: Thumbnails, Hi-res/Low-res, unlimited galleries

• Multimedia: Video, Animation, 360o• Digital docs: PDF leaflets, Manuals,

Warranty• Relations: Alternatives, Options,

Compatibility• Product reviews• Feature Logos, incl Sustainability Ratings• Market Data: Release date, Popularity,

Stock, Offers, Pricing, Distributors, Countries

Example data sheet with marketing text, pictures,feature logo (EnergyStar),

PDFs, specs, X-sell and Up-sell

Etailers Expect this for Free from Brands

Icecat: Why Free Product Content Works

Internet is buyer orientation medium no 1,and it's users love open solutions.

Excellent quality product content is keyto online success for channel partners and brands

Free product content is better usedand thus generates more market intelligence

A brand’s channel partners expect high-quality product content for free

Today, Online Buyer Orientation is what Drives Business

Forrester research: 89% of online

shoppers do visit store/retailer website during the purchase

decision making process to look for

product information

Brands Shift Marketing Budgets to Online

Open Model Icecat works: 2012 Shows Again Rapid Expansion Open Icecat Usage

Growth to 30K registered sites and 330 Sponsoring Brands in 2012

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

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Direct Registrations Continue to Grow

Introduction Free

OpenICEcat

Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 20120

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Yearly Number of Data-Sheet Downloads (in Mio)

Icecat strengthens its Position as Worldwide Market Leader. Prognosis 2012: 2 Billion Data-Sheet Downloads =~34 Bio Views!

Online Icecat Channel Continues to Grow Fast Despite Depression or Does it Exemplify an Underlying Cause?

USPs of Open Icecat• Open Icecat has the largest worldwide footprint, in terms of downloads by thousands of

active users in 40+ countries (in 35 world languages), expanding ~50% annually

• Open Icecat has a powerful, unique Open Content model that is embraced by 300+ leading Brands, and at the same time allows for controlled publishing of key assets

• Active users of Open Icecat not only focuses on webshops, but also on leading comparison sites, distributors, application service providers, product rating agencies...

• The active users of Icecat range from the very big (Amazon, Buy.com, Ingram Micro) to the very small

• Open Icecat is a full service provider for channel partners: providing XML data, web pages (URL), lead generation, easy ecommerce solutions incl. Webshops.

• Open Icecat offers marketing intelligence to manufacturers on end-user online buying orientation, stock, sales-out and channel trends

• Open Icecat is the Industry Standard for product content.

A Service Needs at Least one Real USP

W EUROPE47%

S EUROPE22%

CIS/CEE11%

US & AMERICAS9%

ASIA &

ROW7%

NORDICS4%

Icecat Users per Region

No1 online channel: 20.000+ Open icecat users.US and Asia quickest expanding.

40%+ annual growth in channel partners.Viral drivers:• Open icecat is the leading source for product

content (word-of-mouth, media)• 500+ Cloud platforms integrated Open

Icecat in their channel services• Manufacturers refer resellers to Open Icecat• Distributors promote Open Icecat

Challenge: Stay on Top of the Wave in Asia and Win the US

Viral Driver: easy Use via 500+ Standard Platforms

500+ Different User Platforms Connected to Icecat XML!!!!

ASP.NETMySQL-based (+Php/Perl/Java/..)Magento CommerceosCommercePrestaShopCustom/Inhouse developmentJoomla/VirtuemartQuotewerksMS SQL ServerBataviopencartphpJavaZen Cartxt:CommercextcModifiedc-entronCS-CartDrupal + UbercartOther

No Viral Drivers, No Success as Startup

Trusted Green Logos Drive Conversion

Green Matters: EnergyStar Rated Products 33% More Popular (Q3 2012)

EnergyStar=Yes EnergyStar=No0

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EnergyStar Rated products have on average 33% more downloads

(n=5059 products sampled)

Average DDs per product

EnergyStar is a Reknown, Trusted Logo

Quality Matters: Trusted Reviews & Product Tests Drive Conversion

Independent Editor’s Choice is Key

Think Open, Think Green, Think TrustDank u voor uw aandacht!

Martijn J Hoogeveen PhD“Naar een Overtuigende Koopervaring”

(WWVD, 23 januari 2013)