Transcription:
Radosław [00:01:00]:
Hello everyone and welcome to the second episode of our podcast. Today, as a guest we have Donatas from Lithuania who is responsible in makes you local for Baltic countries. Hello, Donatas.
Donatas [00:01:14]:
Hey. Hi everybody.
Radosław [00:01:16]:
So, Donatas, maybe you would say a few words about your role in the company.
Donatas [00:01:20]:
Oh, all right. First of all, it’s a huge pleasure to be here today and talk more about the Baltic region and the differences between Polish and Baltic e commerce and my role at the company. I’m one of the owners of a company. I’m the one who started the business in Vilnius and right now running one of our offices. Since we have four offices, one of them is in business covering the Baltic region, Poland and two other markets from East Europe region. So I’m mainly responsible for the sales for the development and running the East Europe business. Ethnic loyal.
Radosław [00:02:05]:
Okay, thanks for the short explanation. And in the beginning, one question appears to my mind because we’ve said that you are responsible for Baltic region. Yeah, for the Baltic countries region. Yeah. But you originated in Lithuania. Can we say in general that the Baltic countries. Because it’s very common.
Donatas [00:02:29]:
Yeah.
Radosław [00:02:30]:
People say Baltic countries, Baltic region. Shall we perceive it as like a group of countries which have similar aspects or shall we perceive it each country individual. How would you say it?
Donatas [00:02:44]:
Most of the time we treat all the engines as one group of a region. Right. As a Baltic region. Because there are huge similarities at E Commerce, at customer habits and expectations when we look to Lithuania, Latvia and Estonia. So usually if I’m presenting it in Scandinavia, in Poland, in Germany, I represented as a was a Baltic region. There were more or less 6 million population instead of explaining, you know, each country separately. However, when it comes to the e commerce projects and when it comes to the natural localizations, they still localizing separately to every each market. Right. To Lithuanian mindset, lifestyle and Estonia. Not only because of the language differences, but also a small difference in economics, infrastructure in the market, et cetera, in some targets, even if countries are very similar. But if you want to maximize localization and have a well localized effort, you still would have to keep it as a separate country.
Radosław [00:03:59]:
Okay, so on one side we have a group which is I think most geographically connected. But on the other hand we need to remember that each of this country has its own rules, language and preferences.
Donatas [00:04:17]:
Probably. Yeah, yes, exactly. So you could say that if company, any company decided to expand to Lithuania as a first step, eventually you’re going back to the global feature because it will be quite easy to do the other two markets once you are entered the first one. However, we are not too often doing one workshop for all three countries because there are still some differences between that.
Radosław [00:04:48]:
Okay. And about the Lithuania. The Polish and Lithuanians have a lot of in common also historically. And I know very well the habits of Polish customers. They like parcel most machines they buy buying instantly by bleek or are very impatient about the delivery. So they want to have their product as soon as possible. Does the Lithuanians have the similar attitude? How would you describe it?
Donatas [00:05:20]:
I would say that the attitude or the expectation to the E commerce to the natural services is similar. Medal advanced is added more innovation. They can date a bit longer maybe if they are informed about it. But the general gadgets are quite similar. Right? We love our bank links to our most popular local banks, also credit cards. And right now it’s getting more and more popular. Apple Pay, Google Pay, right? You have other mobile based solution as you can get same with deliveries. Parcel machines and couriers, the two main delivery options. You know, parcel machines probably had a majority of a market among the Nova. Smaller packages, smaller products, which is more suitable for parcel machine. And then there are some small differences. If I’m correct. Logistics companies give your package at the parcel machine for 20 for 48 hours in Poland while in Lithuania you got five days or seven days to pick it up.
Radosław [00:06:34]:
That’s very nice.
Donatas [00:06:35]:
Yeah, so. Yeah, yeah, exactly. So you see that the delivery method is same, but the rules is simple, a bit different, right? Similar payments or same, you know, expectations that check out and itself.
Radosław [00:06:54]:
And if I asked does the Lithuanians know any of Polish e commerce, I mean Polish web shops or Polish marketplace, how would you respond? Do Lithuanians buy from Poland or even you as also potential customer? Would you buy something from a Polish shop or Polish marketplace?
Donatas [00:07:20]:
Yes, I do. And I’m actually purchasing in Poland quite, quite often for a few reasons. If you put in general, I would say that ordinary client from Lithuania would recognize Allegra and maybe a few more stores, the large ones, right. They already recognize this CCC group brand because it’s also localized in the Baltics. In Lithuania they also have some already physical stores opened. So I don’t know if everybody will recognize that it’s a company from Poland, but they already recognizing some of the dance bigger brands. Right. And obviously ol networks. However, even if they don’t know many web shops by they don’t know, even if they don’t realize many brands from Poland, they still. I would say that many of quite many of Lithuanians are still searching for the products in Poland and still trying to purchase it from Poland for maybe two reasons. Same reasons as I am for myself. Either looking for the stock availability is that product is not available in Lithuania. More and more clients right now look for that product in the countries around. And usually it’s Poland, it’s Allegra, it’s Amazon, ebay of course, but also from Poland from separate shops. You know, they’re just trying to Google and look for a polls and then they try to order from there. Also if it’s non branded product, maybe it’s produced in Poland or maybe. Yeah, there are some product categories the clients expect to find a product cheaper in Poland compared to the plan.
Radosław [00:09:13]:
Okay.
Donatas [00:09:14]:
That’s where the common business in retail in E Commerce to do just drop shipping or retailing. Of course it from Poland selling to Lithuania by adding expansion and some clients understanding it and trying to purchase directly from Poland by themselves. So I don’t know what is the percentage but we already recognize that more and more people actually is brave enough just to look for products in Poland and order directly if they have very clear reason. But if they take the ordinary products, a branded product which is also available in Lithuania, it could be anything, right? Adidas shoes or iPhone or any other branded product. You can never purchase it from Poland probably or Latvia if it’s available in Lithuania because of many other reasons. Security, return options, guarantee, warranty, easy payments and so on. Right. Because processing from Poland from not like micro from a Poland, you still have to walk extra mile and you know, see how you could pay for them or try to contact a call center in the English language making sure that we can deliver to Lithuania. Right. So you, you have to go extra mile by order and, and, and you have to reason of doing it.
Radosław [00:10:42]:
Yeah, I understand. And my next question is that as you mentioned localization. Yeah, I know that people in Baltic Countries has has a high rate of knowledge of English. Yeah. A lot of people are speaking and understanding English language. But would Lithuanian person buy from the shop which is not localized and it’s not in their home language, for example, is in English?
Donatas [00:11:09]:
Well, my question would be you know what product they talking about? Right. But if they talk about ordinary product which is available in a country in other web shops. Right. It would be really hard to sell in having English language only not having a local language. Right. Because why they supposed to buy from English webshop risking to lose their money, risking to not being able to return it, risking not knowing what is the company of. Right. As you could purchase from any other local retailer, you know where to go. And that’s a fun, fun fact about the English. I mean English language that many of people speak English, many of people understand English. But if you look to the Scandinavia it’s even a higher rate of people speaking English. I don’t know where they exactly, but it’s supposed to be 95 or something. Right. But when it comes to E Commerce then it looks like nobody speaks English. Everybody wants fully localized web short which it’s convenient to use fully localized Swedish language or Danish language. Same way in Lithuania people expect a convenient purchase with local language. So it’s not only convenient, but it’s also building the trust that the webshop actually is our company actually invested fully localized in a country. And that’s apply for most ordinary products. You know, unless you have something special and unless you have iPhone for half of a price then probably you could sell it in English as well.
Radosław [00:12:52]:
Or you are very big Chinese marketplace and they are selling for 1/10 of the price. Yeah, but not, not mentioning the quality.
Donatas [00:13:02]:
Yeah, exactly. Not a branded product. When it’s made or not available in the country, it’s super cheap. And you’re not risking much either. I might lose these five euros. They cheat on me. Right. But probably less people push it from such a shop for 500 or the €500 basket or something. Right. More valuable.
Radosław [00:13:27]:
Yeah, I suppose I will start because right now we will move to the section where we will discuss what should the potential customer focus focus on while planning the the expansion to Lithuania or to in general to Baltic countries. And I will start with this hot topic which is also affecting Poland. So how has those world events like Pandemic or right now the the war in Ukraine affect the e commerce market? How does it look in Lithuania and in Baltics in general?
Donatas [00:14:04]:
I think it definitely affected both these events. If you take Pandemic and the war, right. It had a huge effect. I think it’s similar as other countries around when the pandemic it was a huge boost for the E commerce. E commerce was on a steroid during the pandemic years. Not only that the existing workshops were selling crazy good, but also just it was eye opener for the rest of the businesses who were only. Who has their physical stores only, right. And it was just an eye opener that you have to work on the omnichannel. You have to also have some kind of online better sales channel if it’s a social media or your workshop or more platforms, marketplaces and so on. So right now the effect of it after you know, being a few years after the pandemic that of course there are much more people purchasing online in general because during the pandemic many people were forced to purchase something online even if they didn’t before. And this had it left. Right? Meaning that right now after pandemic the much higher percentage people of a customer, you know, purchasing online per se. But, but also companies and the businesses right now they see the importances of the. Of E commerce more. And if you see new businesses coming up, you know, after opening a physical store they always. We had an online channel as well. And then war started, right? And then it had exactly opposite effect not from a businesses. Businesses still invest in E commerce a lot. And also as I see, you know, there was much more companies contacting us and asking about the help to localize one to a new market. Because we see that as we depend a lot only on the whole market on Lithuania. And we just want to secure a company to get the revenues incomes from countries around, right. So we depend less on one country. However, if you look to the customer, customers were affected by a fear of war, a fear of not knowing what’s going on next, a share of, you know, anything, right? So what we saw that for, for, for a year, for a previous year especially, you know, it was much, much harder to sell a luxury products, more expensive product because many people made a decision to. To wait a bit and not invest some, I don’t know, a new coffee machine for a thousand euro, but a database. And look what’s happening is right right now it’s all Florida back to normal habits, right. And normal living situation. But there was a fear when people feel a bit scared of all the events happening around Lithuania, in our region, right. In Ukraine. And they just sparked these decisions for the pricey purchases.
Radosław [00:17:48]:
I understand this because we have the same trend in Poland. Yeah. Because we are in direct contact. Yeah. We are direct neighbors of Russia. Poland is also direct neighbor of Ukraine. So we are very near this war. Yeah. So this. I think this affected the. This affected directly us as a countries more even than pandemic. Because pandemic affected all of us. Yeah. Because it was world event. Yeah. So there was a delays in the delivery. There were factories which were not working and so on. And this. This situation which is currently happening in Ukraine has. Has a direct influence because people are scared. As you said, people don’t know. Because you know if. If. If there was a decision on invasion on Ukraine, it may be the same for Poland or Lithuania. Probably because we are very close.
Donatas [00:18:43]:
Yeah, exactly. You know, so in the direction it was affected on you know, customer decisions, you know what to purchase and whatnot. I think there a huge effort indirectly through many other things. Like we gather crisis of electricity prices for some time. You know, a year or two years ago. Right. There was some other issues with the bank loans which is seasonal apartments. Right. And so on and all that indirect assets also affect to know a decision how you purchasing online and what you’re buying and. Yeah, and that’s probably. That’s why it was ethicism more luxury purchases mainly you know, to save a bit during the last years.
Radosław [00:19:35]:
Yeah.
Donatas [00:19:35]:
But right now everything goes going back to the normal. It’s already as we look to our clients which is a bit more than 300 clients that we work every day and we see a really good tendency in getting back on track and most of our clients has grown yearly growth. As an expert.
Radosław [00:19:59]:
Yeah, it’s good to see that trend is reversing and talking about trends. You described a little bit how the pandemic and what trends were created and if you could say how are general big trends in E commerce market in Lithuania and maybe in Baltics. How does it look like at the moment?
Donatas [00:20:25]:
Finally it’s a really wide question right about. I understand but which trend we talking about attack with folks. So in general you mentioned omnichannels which.
Radosław [00:20:38]:
Was created which was the Warners rose during the pandemic. Maybe there are other aspects which are currently, you know going higher and higher and getting more popular.
Donatas [00:20:51]:
I think E commerce in the Baltics in Lithuania will grow same way as it did for the last five years and even higher. There’s a maybe different trends. If you compare country to country. If we look to the marketing e commerce marketing in general effects of international players who make online marketing really expensive for the local players. For a smaller companies like Everybody talking about the T mobile for. For a while.
Radosław [00:21:29]:
Yeah.
Donatas [00:21:30]:
And the aggressive online marketing strategy which affects most of the companies in the local markets by increasing you know adverts and. And all other channels prices. You know so that’s the bastions but that actually making a new other optional channel cinema more relevant. And we have a huge trend here in Lithuania on influencers. If you compare Lithuania to other markets to last year or Poland and we have really unique sedation in influencer marketing Lithuania you know there are much more people working at the influencers. There are much more powerful or influenced influencing on the channel. Even the smaller. I don’t know any random. You know in every random category you could find the influencer who actually focused just on that and said and commerce could use this channel. And you don’t see that you know in the. In maybe other neighbor countries there’s more like you know celebrities and ours, you know using it as a. As an influence in. It’s really widely popular you know influencer. So there’s one chain on influencer youtuber.
Radosław [00:23:03]:
It’S also growing in. In Poland. And if we started this I was supposed to ask this question later on but I will jump to it.
Donatas [00:23:10]:
Yeah
Radosław [00:23:11]:
So what’s the best way to promote the store on Lithuanian or market or in the general in Baltics? If you could say.
Donatas [00:23:22]:
I would split that church on what product do we have to promote? Let’s say we had a scenario that a Polish company expand to Lithuania or to the Baltics. So if they are in a retail business selling to well known brands when usually it’s no secret that the Google product and meta social media channel, you know it’s a main channel all the performance marketing on these channels. Right. One difference that in Poland you gather Google shop or performance max campaigns which we don’t have in it in the world Again only Google AdWords and some other products. Right. So that’s the one difference some company supposed to know that and understand before they go into the building. And then all other additional channels like right. On personal sites and the newsletter strategy. Right. And there’s some influencer strategy and so on. But also on the other hand if you are a brand owner Poland if you are producer and you have your own brand of any product and you are spending to the Baltics that probably a marketing channel and the whole marketing strategy is very much different. You know. So you not only do a performance marketing but you got to invest energy and finances to the whole brand building campaigns. And then it’s maybe not only Google channels Could help you but. But other channels more like you know, a smaller channel to build your brand social media content, influencer campaigns helps a lot. Of course. So it’s not all the channels itself is quite similar to the Polish market but it’s a huge difference with what product you have. Right?
Radosław [00:25:23]:
Yeah. And it’s understandable. Yeah. Each product has to has its own strategy. And talking about the strategy, how would you describe if I asked you what are the three most important differentiators of the Lithuanian market than other which I don’t know marketing strategies or sales strategies should include in their strategy.
Donatas [00:25:45]:
What would you say what is the most different? Right.
Radosław [00:25:48]:
Contained what should consideration? Yeah yeah.
Donatas [00:25:53]:
Maybe it’s not much about the marketing but it makes sense that it’s much smaller. Yeah. That’s a much, much smaller country compared Poland and the dwelling itself. Right. 3 million versus 30 million or something.
Radosław [00:26:13]:
About Europe for example. Yeah. From Poland or from Europe. Yeah, we can say like that. Yeah. What so company looks I think.
Donatas [00:26:24]:
I think many companies as we see right now know they will face way less of the competition going forward compared to being selling in Poland or any other markets around. So of course by doing some analysis before going to the marketing they supposed to notice that there are much less players in that field in that industry that they go in. Electronic prices are sometimes much higher just because of a less of a competition. Most of the prices even fine or higher comparing to actually Poland or Germany. So that’s actually a good thing for most of the Polish companies because it’s much easier to operate in Lithuania comparing to Poland. Okay. Also what we notice, you know, veterans when a Polish company expanding to Germany and to Lithuania many times we, we saw that Lithuania performs better no matter that it’s 10 times smaller market it just because of the competition environment they could sell, they could reach that I don’t know a thousand or order some help or 2000 or whatever level they but our expectations we have much easier and cheaper to operate compared to the biggest markets in Europe like Germany and others because of the cheaper operation cost like for logistic and all other partners around. Right. Higher prices of a product because they don’t need to play on the discounts that much as maybe in other markets and of course a bit less on. On a competition. Right. So. So we really notice that and many clients always asking me, you know, so if I’m expanding from the D to Poland, should I expect 10 times more sales because it’s sometimes bigger market and then it’s other way around. You know why we should expand the duane is sometimes less, you know, in the population. If you get 5,000 orders in Poland probably will get 500 in the billions. And that rule, you cannot apply that rule. Actually many times we saw that conference from Poland sell as well in Lithuania as in home market in Poland because of their higher prices, less open competition. And now and the people who actually looking for these products and maybe there’s no availability to purchase somewhere else.
Radosław [00:29:11]:
Yeah, it probably depends how much the product.
Donatas [00:29:14]:
Yeah, yeah, exactly. Of course you’re talking about, you know, in general but then you after you look specifically to one product or another and the story might be different. Of course the other difference same as in Poland. You know, you love shopping in a Polish workshop. In a well or well localized workshop. You’re not focusing on a webshop who has a local customer support. So all that applies to main as well. Right now many podcasts and webinars we see talking about the globalization and easier to purchase from anywhere. But actually when it comes to ordinary product, clients expect more and more personalized product and purchase experience. Meaning that companies still have to spend a lot of energy on being as local as possible.
Radosław [00:30:15]:
And this is in general we observe it also in Poland that people like to feel that they are buying at home. They are at home and the shop is directed to them. They feel. Feel safe. They know that it’s something maybe not around the corner, but close. Yeah. And makes the shopping safer for them. Yeah. So they. If they feel safe, they buy.
Donatas [00:30:44]:
Yeah, that’s very true. You know, it’s all about the trust if you can trust the seller. Right. So what we do also, you know we actually not hiding that we have this company is from Poland. This company extended and selling to the region to I don’t know, six markets around. But every market is a workshop for every market is localized fully every market has a local customer support and a local language. Easy returns, easy delivery with well known delivery companies that clients recognized. Right. Easy payment options that they also recognize and so on. And then you don’t need to hide that you are from Poland or any other markets. But you have to build just that we walk that extra mile to make it easier for you in Lithuania or Estonia to make a food ship. Yeah.
Radosław [00:31:39]:
And if so we discussed what’s our possibilities on the market. What are the biggest challenges that companies wanting to go to for Lithuania or for another Baltic countries may face or where do they should expect the biggest costs?
Donatas [00:31:58]:
You know, maybe it’s not about the Baltic, but about in general cross border e commerce to be patient enough when you’re building a company from. From zero in your home market. It’s okay to wait, you know, two years for a first profit. Right. And make a huge effort to build the company. But once it comes to expanding. Right. Many, many companies have their expectation that they’ll be successful and profitable after the first month. So it’s not a lot of quality but just advice in general to be a bit more patient neither. And then you’re expanding also let’s say to Lithuania. It’s fine to. To build your strategy. Business strategy and a marketing strategy which would last at least for a two seasons for I know for two Christmas seasons. Right. First year. Our goal is more like focus on event awareness, focus on the first conversions. Learning how to work in a market. You know, getting the feedback from the. For your from first customers understand what still it has to be fixed or localized or changing a process and then maximize of course they can conversion date and sales along the way. So just in general advice not to be a motivation because sometimes from our clients we see that they had expectations to be successful at the two tests. Always deciding that it’s a fail at the two tests. Not giving a chance this to prove that actually they could sell these products successfully. Yeah.
Radosław [00:33:52]:
Very often the. The managers or directors are creating you know, plan and after three months oh it doesn’t go well. We should abandon this idea. Yeah. We also face this. So. So I know what you’re talking about. Yeah. And it’s very hard to explain this to such customer. Yeah. Because of course we are a technology company. Yeah. So so we expand the system. We enable the. The opt in a certain country, in a certain language, in certain currency. And we also have to answer the question why the shop is not selling. Yeah. Do something.
Donatas [00:34:27]:
Yeah yeah that’s exactly. And and and if you want selling well enough may pre. Usually most of the times it’s not about the marketing. It’s something about your product or. Or a doctor itself. But yeah. Probably the crossboard E Commerce. You know, you have to realize that you have to adapt to the local market, not other way around. Not forcing clients to adapt to your solutions. Right. So on the first six months what we also try to you know to understand the market in the local clients and also. Oh in Poland we’re doing that and it works very well. Well but for some reason it is important that later and that’s why all our customer support solutions also focused a lot not only on customer support itself, but also collecting the feedback segmenting different questions and Then trying to discuss internally with the clients that if you change something in your checkout, 10% of your clients will purchase faster and they will not reach contact customer support, you know. Yeah. And by changing that small things according to the client expectations, you know, that’s a way to a success in that market. And eventually if you’re selling in certain markets, you could notice that every mark you’re doing very differently in every market. Yeah.
Radosław [00:36:04]:
And especially you mentioned that not only the marketing activities or even the shop attractivity or ergonomy is a key factor. Yeah. The factor may be also the product itself. Yeah. That’s why you have different strategies entering the market. I know that some companies are starting with selling their products via marketplaces which are local to verify if their products are building interest in the customers. And then when they see that the people on the certain market are buying then are going with their own shops. So the. The. The strategy strategies to verify is. Is. Is. Is at least few.
Donatas [00:36:44]:
Yeah, that’s true. Many companies also. Also think this way and also do this way first going to marketplaces. In my personal opinion, it’s a good plan if. If the execut. But. But most of the time I always of course and suggest go with your own channel, go with your own backdrop and then add as many sales channels as possible all the marketplaces around in that market. So if clients find your product in the marketplace, they still able to Google and find your own workshop. Right. Bandit Workshop and see the full story of the company or of a product and then make a decision where to purchase it. Because going on digital marketplaces there are huge benefit of many things. It’s obvious. But also there’s a risk of not performing well enough and think that your product is not suitable for the market for Lithuania. But maybe you’re not performing because you don’t understand how to perform in the marketplace. Let’s say if Lithuanian seller going to Poland to Allegro. Right. Allegro is already in different worlds. Right. How to perform in Allegra successfully. You also have to be expert in Allegra itself and the marketplaces business style. How to do a CEO it’s in that marketplace you know how to have your accounts. You know, if you’re delivering from Lithuania, you don’t get this Allegra Smart. But if you have products in Poland other options to know and improve your sales. Right. So sometimes it could happen that I’m making a decision not to expand because marketplace is not performing. But sometimes it’s not about a product or a business itself. Sometimes it’s about that client doesn’t know exactly how to work on that marketplaces, you know, because. Because it’s not that easy anymore that you just place the product there.
Radosław [00:38:57]:
Yeah. They may be really complicated and it’s not especially that they have a seller, different sellers which are selling the same product. So it’s from time to time it’s even hard to verify who’s delivering this product. Yeah. Especially if you look at the Amazon or another big marketplace. Yeah. So what if you, if you could describe a little bit what’s the profile of the consumer in the Lithuanian market? Is some kind of. Is it possible to describe it that people in this age buy this people in this age, is it very individual there?
Donatas [00:39:39]:
You know, it’s really hard to describe correctly. I think in general it’s supposed to be very similar to the Polish custom or any other market customer because if you look to the statistics usually it’s very similar, you know, the age range and the incomes and so on. Right. But probably just 1km that age range getting wider and wider. You know, there are more younger customers, you know, coming up every year. But as it becomes more natural to use the E commerce now on a more early stage earlier. But also the consumers, the customers getting also older for the E Commerce the best solutions, it was a huge push after the pandemic but also the solutions on E commerce it’s getting better, it’s getting easier to purchase online, it’s getting more, you know, the availability is wider also for the older customers this is what we know this also from our client. So I can’t describe them directly in the profile of a customer which is probably my date is very similar to Polish customer. But one trend I see just getting wider on each range.
Radosław [00:41:05]:
Yeah. Especially mobile shopping allowed that because there are still a lot of people which are older but they are afraid of the computer or they are afraid of to use the laptop but they are using mobile phone every day. So even my father which is almost 70, recently showed me that he bought clothes using the phone. Yeah. And it was something that at the first time made him a little bit stressed. But now he says that he will be doing this all the time because it’s easier and it’s. He doesn’t have to go to the shop, he knows his size. So it’s very easy. Pick your phone and make two clicks and you have clothes at home.
Donatas [00:41:43]:
Yeah, yeah, yeah. But fun fact also what we know this from a customer support the company that more and more older people, they just give a call and I think I see this product online or can you make a purchase for me? You know companies allowed to do that. They able also to do that you know client and describe the product. You see, you know identify by S2 code or something. Right. And then he just save address and everything and we make a cash on delivery. That’s the place the order for the client. And it’s getting more and more popular actually among the older people or maybe some product categories that companies totally allow doing that. And people also I don’t know doing it more freely now. So I know if it’s full e commerce. But people ordering on the phones like that. Yeah.
Radosław [00:42:46]:
We observe it in Poland for example in electronics. Even the biggest players for the electronics market they are making campaigns call us and buy by phone. So you can you see the television set on the billboard and you are calling the number and saying I want that tv. And it’s possible. Yeah. Of course in the background very often there is an account created in the system. Yeah. And you can verify the order for example and log in and check it. But I believe there are also channels that you. You do it without it. Yeah, so. So yeah. And I think it’s also a step forward to the people which are older and are still afraid of this electronic devices.
Donatas [00:43:30]:
Yeah, yeah.
Radosław [00:43:31]:
And if you would. While we are talking about customers or end consumers are preferred what they are expecting to have right now. What they are used to in. In Lithuania. What is the so called standard. I don’t know. I don’t like this. This word but because everyone has its own standard. But how it is perceived in Lithuania services demeanor. So shop need to have. Yeah. I mean that for. For them is a decision maker if I buy here or not.
Donatas [00:44:09]:
Well starting from the obvious right. The payment logistic and terms. I think that’s the main one and critical one to get it right in place. So that even to know probably a local bank links or maybe you call it Internet banking that you just select your bank and you are transferred to your personal bank just to approve a purchase a credit card, you know and caption delivery. That’s probably the main three ones right. And also different in the industries but usually that’s a new ones A logistic the split between the parcel machines and a courier. Usually we prefer to gather both options options and even better if you have the main three or four delivery companies options to choose from. In the Dwindi we got only four or five main companies who are now providing logistics e commerce. It’s really nice. And when a shop offers options from two or three different companies on the parcel machines and Aquarius. Because all the parcel machines have different adjustments and you just choose maybe which is most convenient for you and then the returns, you know that we got a general rule same as in all Europe on a return time and so on. But I see that the companies, you know trying to walk extra mile and getting, you know, longer time to return, easier way to return. You know, usually it’s free of charge or returns with local addresses or company just sending a courier to pick up a return or have an option just to drop a package to the parcel machines and forget about it. Not as inclined to do any other efforts to pack a product to send to someone just to pay for the returns. Right. So that’s probably three in the main ones. Right. And then it comes all additional on social media. Social media also is a. Is a social proof, you know, if companies active in a market it’s because the local content. You know, if you can find any local comments from other customers. You know, you just build a huge trust of. Of a natural if you see it for the very first time. Right. It’s not that popular. You know solutions like Trust File or other US Node apps. So majority of you know the reviews check on social media.
Radosław [00:47:07]:
Okay.
Donatas [00:47:09]:
Yeah. What other services we could think of and probably a local customer support. It’s number four. But it must look out. It’s not enough to get a phone. It’s not enough to have this email address and you know we reply you sometime. It’s not okay to ask a contact company in English or other language than the local language like the native sand. Right. So it’s also our approach, you know, it’s to get a customers, you know all possible options to contact company. Usually it’s a phone, emails, a live chat, a chatbot, a social media messengers. So every customer has their preferences how it’s easier to contact what else could be services. And then probably the main one is the delivery time. It’s not about the delivery comp company itself with the delivery time to keep your to keep your promises.
Radosław [00:48:23]:
Right.
Donatas [00:48:23]:
If you stay that this product will be delivered in three days and client actually expect you to deliver in three days and on a fourth day you’ll get a call asking about your order. But if it’s okay to. I mean if you have a product which is okay to deliver in two weeks. If you’re selling some furnitures or something which is not available in a showroom and you have to do some drop shipping. So clients are okay to wait for both. Two weeks. This is what you told them and this is what we expect. But we expect to get it in two weeks, not in three weeks or four weeks. Right. So just keep your word and deliver as you promised and all that and build the trust. Yes.
Radosław [00:49:14]:
And mobile apps, for example. Sorry, sorry to interrupt. We had a little.
Donatas [00:49:20]:
No mobile apps of course. If you look in the stat. If you look the analytics and the main browser is on the mobile. So it’s mobile version. It’s not a mobile.
Radosław [00:49:36]:
Mobile version rather than mobile app.
Donatas [00:49:38]:
Yeah, exactly. I know that mobile app is more popular in Poland or among the bigger e commerce players, but it’s not that popular yet in Lithuania. So of course the bigger player has it the marketplaces, some retailers from Poland or Germany, the largest players. But the local players, it’s not the first thing that they invest to.
Radosław [00:50:07]:
So you mentioned all those services a little bit general. I would like to dig in some of them. I mean especially payment and delivery methods. For example, in Poland, very popular currently is this method that by now pay 30 days later.
Donatas [00:50:33]:
For some products yet? For more expensive product, yes, but not as popular as this in maybe Sweden or Poland, as I heard.
Radosław [00:50:44]:
Yeah. And talking about the payment methods, do consumers prefer those local banks or local methods in general payment or delivery or mostly they are used those big players, as you named it. So the global companies like, for example, adn for PayPal or for paying or this courier like DHL, DPD and so on.
Donatas [00:51:15]:
No, it’s mainly going through a local layers for local suppliers. All these services. Yeah.
Radosław [00:51:22]:
And with the returns you mentioned that you apply to all those European rules. So probably you also have this 14 days policy. You mentioned that some shops are. Are extending it. We also observe it in Poland.
Donatas [00:51:38]:
But.
Radosław [00:51:38]:
But how do you see this trend? Because fashion companies especially are declaring that this is huge problem for them that people are buying a lot of stuff then returning it. The return goods are not always in a good shape, so they need to be destroyed. So it’s a kind of financial and on the other hand ecological issue. Yeah. So some of them decide to make it harder or even that you have pay for. Have to pay for the returns. How the policy look like in Lithuania?
Donatas [00:52:14]:
Maybe we don’t have exactly the same issue as these large companies. I know that we had a huge issues, you know, with a larger player and so on. Right. So probably we have the same issue just at a smaller scale. So I know that fashion companies really struggling with that getting a lot of returns, not being Able to resell it again or that we are forced to order all possible sizes, but we’re not selling all of them, just a lean one. Right. And somewhere we have to somehow sell the smallest and larger. So. So I see that company has this challenge, but I don’t see that they doing something to prevent it. Right. Something like you mentioned, or making expensive return policy and so on. So probably it’s still able to deal it internally one way or another. But new north and international player on the biggest player, you know, who actually offer this free upcharge returns, you know, and suddenly they change the rules, you know that it’s not free anymore or who is reducing the time on a menu then return the norm that is firstly offered one year and right now they are back to 40 days or one month. Right. So you see that this trend on a largest players Europe also around the Baltic, but not among the local players, because the local player is not that large. They have a steel issue, but on a smaller scale. And yeah, they should deal with that inside the companies promptly.
Radosław [00:54:10]:
Yeah, yeah. I think in the beginning it will affect only those biggest. But we can observe even in Poland that if not paid, then the procedure is a little bit more complicated. Yeah. Earlier it was one step, one click and you can return. Now you have to fill in very complicated formula, print it and so on and so on. So that’s why I was asking. And a very important aspect of going into the market is translations. Yeah. How is this anything that should be paid attention especially in Lithuania in this translation? I know that is one of the main services you have also as makes you local. So you probably know a lot in this area.
Donatas [00:55:05]:
That’s one of our main services as well. And that’s one thing that it also changing a lot on currently. So you know, on a earlier, you know, it was quite simple. You know, there was a translator who is doing a job, you know, translating all the content. You know, right now we also becoming more as a technology company, you know, and then especially on the. On the translations, you know, there’s a huge impact on all the technologies and the tools that you’re using, which allows us to do it much, much cheaper and much faster, you know, with the same results. But translation is one of the things on your localization that usually you have to do. Right. And that translation company is supposed to see it, you know that on E Commerce, on the website you have a different type of the content which require different solution for the translation itself. Right. And you could just add an example like a translation from for the product. It’s a well known product. It’s the one way of doing the translations of the products that shop. And all the content is it has to be translated and localized professionally. So it’s not just about translation, it’s also your delivery terms. You have to talk about delivery terms in Lithuania that must be translated from Polish only if you talk to your categories and the category descriptions. It’s already a marketing text as you treat it this way, right? That has to be included the right keywords and so on and so on. Right? So it’s just a few examples that we have three different content which already require different competences and a different way of translating it. And this is what we’re also trying to do to find the right solution for each content. If you need a translator with a marketing knowledge or E commerce knowledge to your category descriptions, including keywords, if it’s trading at checkout and all the as you call it, you know, system or system translations, you know every button and so on. Managers later supposed to be, you know, understand the E commerce and expectation what keyword has to be chosen on on each step from what client is expect, right? Because I don’t know if you notice sometimes you see the local text and it sounds correct, but it doesn’t sound right. You understand what it means. But on E Commerce everybody using a slightly different keyword or phrases and so on, right? And when it comes to some blog articles, when again first question is why are you doing it? Is it for CEO purposes or is it for a brand earnest purposes explaining more your services this is a problem so how to use it and so on. So we could also understand if you need a top quality of the translations of that material. Or it could be also machine translation or any other kind of. Right? So right now also we at Mix Local, you know, developing a lot. Our main focus was to launch a new tool translation which is based a lot on AI engine which require way less time for us to deliver a highest quality of translations for much less investments. So that’s why I said that on the last few years, because of all the technology grow and AI appear the translation was touched the most because of all the evolution of that. But when that Polish company considering expanding to the Baltic now they know that they have to do extrapolation, they have to have a local material and then you see, you know, what solution supposed to be used on what material to make to make it also understanding the business, understanding that the investment and choosing the solution it will be either 100,000 products in stock and maybe it’s very well known brand, everybody knows what they purchasing. Maybe you don’t have to translate everything. Maybe there’s a different strategies to doing and reducing your first investment on the localization. So that’s just a more example.
Radosław [01:00:06]:
You said top quality translation. I suppose it include also the human verification. Yeah. Because language Latvian language, Estonian language, same as Polish is not the most popular language in the world. So. So this automated machine translations like for example Google Translator deep or even AI very often make errors especially those grammar errors. Yeah. So I suppose that going into the Baltics also it would be worth to invest in this top quality translation verified by living person. Yeah, exactly.
Donatas [01:00:45]:
Exactly. Yeah. So not all the texts require that, but you definitely have to do it also on. On some materials.
Radosław [01:00:54]:
Okay, so we have a, we have a store, we have the translation. We’ve done all. You said that, that you have to be patient. But what should the Polish shop owner or any shop owner entering the the market see as a red flag when. When the localization was made the shop is functioning. What should be perceived as a red flag for. For such. For such a shop owner in. In your region.
Donatas [01:01:22]:
Okay, so first challenge what I made that the main challenge is the logistics. Because between Poland and Baltic there’s still not too many companies who are doing a logistic in a way that you could do business in a way that it’s not too expensive to do to divorce. Right. On the BTC level, the good news that every year we find more and more companies doing that developing the infrastructure on the logistics between the Baltic and Poland. Right now the main players already doing it. But again if you take a logistic option between Apple and then check your pocket or between the domain and livestream, it’s no brainer, you know, I mean it’s super easy. Almost all legit players in the logistics, you know, has these options. Right. And then for some reason logistics between the politic and Poland it’s not that developed. Yeah. As well. So one thing what we’re doing before we localize interaction, we just check the logistic availabilities, we check the pricing, the timing. If you tend to deliver it two days or three or five. And why? Just to make sure that it’s not a problem in the future. And if you’re delivering a phone, it may be one story. If you’re delivering signatures, it’s a different story. Right. So that’s the one of a challenge we usually notice. The other challenge probably in Poland you have many brand owners, meaning producers who’s developing their own brand in the furnitures in many industries. Right. And then both companies expanding. They had a huge unique selling points on collections, on pricing, on many things. But they have to remember that nobody knows them in the Baltics. Right. So and the challenge is to be patient enough and to work enough on your brand awareness to make it work. So it’s not about, you know, the market itself about you know what we discussed earlier to build that brand in the Domain or in any other market. Other red flags. I’m not probably there’s no red flags difference of like yeah, in the euro zone we got euro as a currency sometimes it’s never a challenge. It’s something to independent and adapt doing better localization, right? No. Now obviously there are more red flags early around when the Baltic company expanding to Poland instead of, you know, they are more upset doing this because of the Polish competition, because of the Polish local price level, because of how easy is to establish a local company or get a local or get a local bank account. All that is possible to do. But it gets easier and faster to do it in Lithuania when compared to domain in Poland. So actually going to Poland, but not outside of Poland.
Radosław [01:05:08]:
But not to scare it’s possible and we encouraged to do that of course.
Donatas [01:05:15]:
And of course I mean and it’s just harder. It’s not impossible. You see plenty of international companies selling in Poland very successfully and many of them also from Lithuania. But just something that we always raise as a question to discuss to go through every aspect and specific. If we could match a price, if you could match logistic expectations, if you could do this and that if we should consider or not, you know. So we always do this checklist and that checklist is a bit longer if you’re going to Poland instead of going to Italy.
Radosław [01:05:55]:
And you mentioned also that your law or legal topics are quite similar like in. In the Europe. Is it something that potential company which wants to enter the the Lithuanian or Baltic market should take into the consideration according to legal laws. Are there any aspects very important which are totally different there? How would you describe it?
Donatas [01:06:24]:
I would describe it as a. You know, quite easy question for the companies. I think that you. In Poland we have more strict rules and the more maybe local laws that you could generally match. And meanwhile in Lithuania we have more with Poland war that basic Europe union was for E Commerce and a few things which is more based from Lithuanian laws. But I see it way less as a challenge in Baltic made in some other markets like Poland, Germany, Sweden. Because you guys, you Know, you are more strict on. On this and you have more different things to. To match, you know. So of course we have similar things, but they are more in a, you know, Europe applies for gdpr, what applies for returns, what applies for, you know, the terms and conditions, privacy policy and cookie policy and so on.
Radosław [01:07:34]:
But in the European Union are also the distinctions. Yeah. When you take a look at the German restrictions, for example, they are far more strict than in Poland, for example. But it’s good to know that in Lithuania this area is more flexible, more available.
Donatas [01:07:54]:
This is a way how I see it. You know, maybe the. The lawyer from the law firm, you know, will argue for that. But this is how I see, you know, when we localize a company from Poland, the Baltics, they still redo all the legal documents like terms and conditions, privacy policy and cookie policy. So it would follow, you know, a lot. A lot. But the challenge of that, you know, preparing that legal documents, it’s a bigger challenge to divide in Germany also in Poland, compared to a block.
Radosław [01:08:35]:
Yeah, but there, there, as far as I concerned, there is no exclamation marks. Yeah, that I have a shop in Poland, I go to Lithuania. Oh, I need to remember that this and this and this. No, if I in general have this rules, European rules applied to my shop, I. I shouldn’t be surprised. Yeah.
Donatas [01:08:54]:
In Lithuania for majority and of course when you had some product for some industries. But there is a central rules for food products, food supplements, life and so on. Right. And sometimes you have some certificate for a food supplement which applies. But in order to sell to Lithuania, you have to get the certification in Lithuania. Right. So notifications and so on. So there is always exceptions. But that exceptions also comes in other markets as well. So usually clients already aware about it that I got to do these actions in order to send in Poland. So I already expect that it also it will take some energy in Lithuania to do same or similar actions in order to get recertifications. Yeah. But for the majority of categories of the products, you know, it’s quite okay. It’s quite easy.
Radosław [01:10:04]:
So in general, if client is not aware, then it will help him. Yeah. While analyzing the possibilities of localization for the customers, you as makes you local also are supporting in this area. Yeah.
Donatas [01:10:17]:
Guest area. Of course.
Radosław [01:10:18]:
Okay, so last question. We can observe in each region the seasons. Yeah. So we have the Christmas season, we have vacation season, we have Black Friday. Is the Lithuania somehow different or in general Baltics? Should the shop owner be aware that there are any special moments that it’s better to sell or it’s better not to sell. How would you describe it it?
Donatas [01:10:49]:
Yeah. Again, everybody knows their own season because of a product, right. If you are. If your high season is Christmas or spring. But in general looking to the, to the market, the most active ones are you know, starting September till January and then from end of February till till May, you know. So we have two main season of course, you know, as we call, you know, Christmas season and the spring season. Black Friday is getting bigger and bigger every year in the market. It’s not as big, you know as Germany or Scandinavia or United States, but it’s getting more and more popular. It’s also on an early stage. Any other arrest sales events like a Cyber Monday and so on, it’s getting popular but. But it’s definitely not at the same level as in some other markets. So I would say that you know, July, you know and summer season in general are a bit lower in, in. In. In the Baltics in Lithuania maybe. But I expect that in most of the markets just because of the customers on vacations and maybe spending less online chance of nothing. It was a big difference probably in the season. But again when you looked at to each product category differently and then, and then okay, you guys went back to school season. Okay, you have to finance your outlet. So January and February is the next month for you, you know, after sales, after Christmas, you know, and so on.
Radosław [01:12:55]:
And any particular. Just maybe as a some kind of fun fact or something. Any particular holiday that you know that exists for example in Lithuania or in other country and you haven’t heard about it in another country.
Donatas [01:13:09]:
Actually what what we see that it works and affects the sales, you know, some days off and others and you know, national celebration in a country like we have to know Mother Day, Father Day, you know, some other days of that actually works very very well for the e commerce 14 of February we call it as a long day. And that gives a huge push for the E Commerce. So of course it’s far from the Black Friday. And that’s also what we focus at makes a local. We call it. We have annual marketing wheel. You know, you could just subscribe and get the notifications and newsletters every month now or on a quarter basis. You know that the most important dates in the country, you know and then you say okay in Lithuania they have these two days off on. On August and we celebrate in something, you know, St. John Day on. On July, on June. Right. And, and. And then you could personalize a marketing for that or you could Expect that outdoor products will be more interested and you could use some sale related to that. And so, so, so, so we do know for our clients now it’s sending all these reminders. Everybody subscribe actually and, and get the most important dates from all the market majority of clients in Europe and try to personalize their marketing or sales activities based on that. Because you just see that it actually works. It makes sense to put effort and do more personalized sales.
Radosław [01:15:03]:
Yeah, I suppose, because we can see, especially if you buy a few calendars and you have it at home, you can see very strange days. Like it’s a day for my industry day of a programmer, day of this, day of that. And in marketing or in the sales, you can use it. Yeah. And get into the special group of buyers directing the campaigns to. To them. It’s like, I suppose each country has their own.
Donatas [01:15:32]:
Yeah, yeah. And if you go to really small videos, you know, you also notice that I know when the season starts, you know, and like a spring season, you know, we noticed that a year ago a spring season started instead of March. It started on April, a month, almost a month later, just because of the weather, you know, like you had a lot of snow for the whole of March, you know, and, and exactly opposite happened this year, you know, so. And that, you know, going into really small details, you know, and if you want to, you know, I mean, maximize your results in a country, you even have to take in consideration such a thing that it’s still raining in Estonia. That’s why we are low on sales.
Radosław [01:16:26]:
Yeah. Okay, Donatas, thanks a lot. A big load of knowledge today. So I hope our listeners or viewers which are considering Baltics as their target will have enough information to. To make the decision. If not, we advise to contact us the contact details to me or to donate us or to our companies will be presented in the description of this video. So once again, Donatas, thanks for your time. It was really nice talking to you and I hope we will see each other in further initiatives.
Donatas [01:17:04]:
Yeah, thank you so much.
Radosław [01:17:06]:
So, till next time, bye.
