eCommerce revenues are soaring around the globe. This year, the US, Western Europe, and China alone will generate over $800 billion in online retail sales. Growth rates, too, remain staggering in many countries: China’s massive online retail market will more than double between 2013 and 2018, as will Brazil’s. India’s much smaller market will grow by eight-fold during this timeframe.
However, a litany of businesses have failed as they attempted to tap into shoppers outside of their home markets, with many large US and European brands factoring prominently on the list of casualties. eCommerce is no exception: Numerous eCommerce businesses have taken the plunge into new markets, only to find their offerings didn’t resonate with local consumers or they were outsmarted by much savvier local rivals.
What separates successful global eCommerce businesses from their counterparts? Which tactics have proven particularly effective for brands aiming to extend their reach into new markets? What are some of the most common challenges businesses tend to encounter? Our newly published eCommerce globalization playbook helps brands through the thorny process of global expansion. Clients can read our playbook for insights on how to:
Discover and quantify international revenue opportunities. Our playbook includes reports outlining the global opportunity and identifying how eCommerce markets typically develop with time. Our online retail forecasts for the US and Canada, Western Europe, Asia Pacific, and Latin America provide a quantitative look at market sizes and eCommerce trends in these regions.
Yuebao is a hot topic in China, and has even gotten international attention. But what is it? Yuebao is a value-added service that customers of Alipay (China’s version of PayPal) can use to earn interest and to make payments and transfers. An individual can start a Yuebao account with as little as RMB 1 (US$0.17).
The Alibaba Group launched Yuebao in June 2013. By mid-February 2014, 61 million people had invested money in Yuebao, and total fund skyrocketed to RMB 400 billion (US$65 billion) – making it the largest fund in China.
People are drawn to Yuebao because of its:
High yield. The average annualized return is around 6% — much higher than similar funds and banks’ financial products.
Good liquidity. Yuebao offers great flexibility; investors can deposit and withdrawfunds anytime. Other financial institutions require lock-in periods and much higher initial investments.
Ease of use. Yuebao offers a much easier way to invest. People can see the value of their assets anytime, anywhere on their smartphones.
This is a guest post by Lily Varon, a researcher serving eBusiness & Channel Strategy professionals.
The breakneck pace of technology innovation and changing consumer behavior is having a profound impact on business. To keep up with business growth plans, competitive threats, and consumer demands, online companies must support global markets, digitally empowered customers, and evolving sales and service channels, putting ever-more stress on the eCommerce engine.
eBusiness professionals are taking stock of their legacy or incumbent eCommerce technology and finding that the solutions aren’t tactically functional, aren’t omnichannel-ready, and/or aren’t leveraging sophisticated enough data insights to deliver on the demands in the age of the customer.
The technology powering eCommerce is becoming more complicated, too. There are more stakeholders than ever, more data, more integrations, and so on. In many cases, replatforming projects run over budget and are delivered late. Talk to any eBusiness leader who has been through the process, and you're bound to hear a war story or two. These projects are never easy, but as eCommerce technology — and the market that drives it — evolves, replatforming initiatives are inevitable.
Selecting the right commerce platform for your business is important. But a car needs more than an engine to both function and be used to its full potential. eBusiness professionals must understand the following before embarking on an eCommerce replatforming program:
Back in July 2012, I authored a post about Pitney Bowes and the company’s focus on reinventing itself. At that time, the company had a great portfolio of software assets and a good overall market message — but its market approach was fragmented, its solutions were not integrated, and it was a difficult company to figure out from the perspective of a customer or prospect. About 15 months ago, Pitney Bowes appointed Marc Lautenbach as its new CEO to address these issues.
Fast forward to today. Last week I had the opportunity to spend some time with Marc while he was in Sydney. In his brief time with the company, he has sorted out a number of the challenges I was referring to — including giving the firm a laser-sharp focus on a few key areas, bringing traditional assets into the digital world, refining its sales model, and leveraging those areas in which it has competitive advantage.
Marc sees PB’s main opportunities in the following areas:
eCommerce. PB has the ability to classify assets for all types of commerce providers and ship them anywhere around the globe.
Location-based solutions. Not only does PB have great mapping information, but it can also integrate data from any domain and apply its own algorithms to make that data valuable.
Printers, sorters, meters, and inserters. This isn’t a fast-growing business, but it’s a big one — and one that’s still important to many companies. It’s also a segment in which PB has some unique capabilities.