Mobile commerce is hot – In fact for Pizza Hut, it’s so hot that approximately 50% of all digital orders come from mobile and tablet devices. Beyond impulse purchases like pizza and cinema tickets, mobile commerce is now firmly established as a significant source of revenue growth for almost all online retailers. Last year Forrester forecasted that 5% of total online revenues would occur through mobile devices in 2013, but by the close of the year, many online retailers such as HSN are reporting that mobile revenues have in-fact broken the 10% threshold and, furthermore, some retail clients have told us that revenues via mobile devices have already reached 20% of total online sales during peak days.
Today, we published our new online retail forecast for Latin America, covering Brazil, Argentina, and Mexico (clients can read the report here). Driven by online retail revenues in Brazil, where the market is forecast to reach $35 billion by 2018, the region’s eCommerce markets will continue to surge. We see the following trends in Latin America:
eCommerce will continue its upward path despite slowed economic growth in the region. There has been significant coverage of the slowing economies in markets like Mexico and Brazil. However, as we saw in markets like the US and the UK during the recent global recession, eCommerce remains a bright spot even during challenging economic times. We expect to see online sales continue to increase at a rapid pace across Latin America, even though many countries are no longer seeing the high economic growth rates of recent years.
Instagram’s ‘Instagram Direct’ announcement this morning left me speechless, as I followed the live feed (thank you CNET) from the West Coast. First, let me disclose that I am middle-aged. I’m 45 years of age. What does this mean? I remember AIM in the late nineties. I remember the days when chat sessions evaporated. I remember my first cell phone in 1997 and texting my friends – mostly in Europe at that time. The idea of communicating with people I know first and foremost is not new to me. It is very comfortable – more so than Tweeting or posting.
Bottom line: This is a “catch-up” move for Instagram.
1) Mobile phones have always been about communicating with friends and people we know. The magic of mobile phones early on was that a person’s phone number was their ID. It made it so easy to send SMS or MMS messages.
2) Instagram has 150M downloads, and half of their users are active daily. That is awesome. However, its competitors globally – Kakao Talk, WeChat, etc. – have two to three times that number. Apps like WeChat already allow users to share videos, photos, messages, cartoons, voice clips, etc. to individuals, groups, groups created around an event, etc.
3) Messaging will help them earn more mobile media minutes. I spoke with Chris Hill at Mobidia last week, and he shared some of their data on usage minutes. In their sample from mid-October, Kakao Talk had more than 200 minutes of usage per week, WhatsApp was just shy of 200, while Kik Messenger, LINE, and WeChat fell just below 100 minutes of use per week. If they were to post ads as a means of monetization, minutes spent is key.
As we ramp up our coverage of the digital store, we recently researched the role of retail sales associates to understand their impact in the age of the customer. There’s no doubt that technology has dramatically impacted the way in which consumers discover, explore, buy, and engage with brands, products, and services. However, the impact of technology on sales associates is unclear, as is the degree to which the role of the sales associate needs to evolve to leverage these new capabilities.
In the new report A New Generation Of Clienteling, we tackle the role of sales associates and their use of technology in the digital store. In the report, we note a number of trends, including the following:
The role of the associate will change from an information provider to a facilitator of engagement. The sales associate is no longer the sole provider of information in stores: Customers can now find product information via their mobile device without the help of an associate. This scenario provides an opportunity for the sales associate to pivot and drive increased engagement with the customer.
Digitally connected sales associates are trusted. Less than a quarter of US online adult today state that sales associates are the best source for product information. However, when armed with mobile devices, the associate is seen as a trusted advisor. The breadth of information available to sales associates via mobile devices allows them to consider a broader array of information when making product recommendations to customers in the store.
Anyone who’s heard me speak at a conference over the last couple of years stands a fair chance of having listened to me talk about the fall of the Berlin Wall. Now, considering I typically talk about agile commerce, digital transformation, and occasionally mobile retail strategies, that might sound odd, but I talk about the fall of the Wall as an icon for revolution and for change.
And change is exactly what’s happening east of the old Iron Curtain now.