Etail Conference talks on internationalisation

At the Etail 2011 Conference in London, last week, the most circulating talk was on the business of internationalisation. The likes of Debenham and Alexon highlighted their plans for international expansion as part of a new growing strategy as,

in general, online and multi channel retailers seem to be recognising the potential they have to leverage their ecommerce infrastructures into new routes.

Simon Forster, director of Debenhams.com, told delegates: “The challenge for us is to also look overseas as e-commerce is a great way to expand without the need to invest in store chains.” And although it is still very early days in his role as group e-commerce director at Alexon, Giles Delafeld also recognises the “huge opportunity” for his company to extend its reach internationally through its online presence.

For newcomers to the idea of overseas expansion there are many aspects to consider, including the range of payment methods that are utilised by consumers around the world. Nile Younis, business development manager at Global Collect, told delegates that the “payment options are bewildering and there are questions over the longevity of certain payment instruments” especially as there is a lot of innovation taking place in this part of the market.

He recommends retailers embrace the payment behaviours of consumers in local markets, which ultimately means having to “take a leap of faith” with certain payment methods but it has to be done if large percentages of online payments are being made in a particular way.

One challenge retailers are facing is mobile payments; Mark Adams, sales and marketing director at Portaltech, suggests: “Mobile is the glue for the whole shopping experience and through innovation in mobile we will see massive growth. It’s now a no-brainer [adopting mobile] and is affecting retailers’ businesses right now.”

The challenge of bringing all channels together to create a true multi-channel proposition is one that arguably the entire retail industry is struggling with at the moment. Robin Terrell, executive director of multi-channel and international at House of Fraser, is not surprised that such developments are a tough ask for the industry as the traditional way of retailing has been “entirely challenged” by e-commerce. “Retailers see technology as something that turns the lights on and not as a strategic asset. E-commerce has challenged all aspects of their businesses,” he explains.

Such is the challenge most operators admit they are only part way down the journey. Among them is Forster at Debenhams.com: “We’re right at the beginning because the journey is so long. Every function in retail has been focused on selling through stores so it is no small thing to think what’s multi-channel?”