In the Age of the Customer, consumers are increasingly empowered. They decide where, when, and how they engage with organizations as they shop. European consumers are using multiple devices along their path to purchase and almost a quarter are buying online from outside their home market. This is a growth opportunity for retailers in larger eCommerce markets where online retail sales growth is slowing. These cross border buyers are a valuable target group and more likely to use mobile devices as they shop.
Yet researching and buying across multiple devices and touchpoints is not restricted to those that are happy to buy online from other countries. Across the board, consumers are using smartphones and tablets more frequently and across multiple contexts. Forrester’s updated mobile and tablet commerce forecast predicts that mobile and tablet commerce combined will account for 20% of online sales in 2014 increasing to 49% of online sales by 2018.
Mobile phones, smartphones in particular, bridge the gap between digital and physical shopping experiences. In 2015, European consumers’ increasingly multitouchpoint shopping behavior will heighten eBusiness professionals’ attention on the influence of digital across the customer journey and into stores.
Forrester believes that, for Europe, 2015 will be a year of experimentation. We predict that:
This morning when I woke up, one of the first things I did was pick up my iPhone. It’s increasingly part of my morning ritual – whether its checking the weather app for the day’s forecast or using the Starbucks app to pay for my morning coffee on the way to work. And I am not the only one. Forrester forecasts that European online retail sales will increasingly come from sales completed on mobile devices like smartphones and tablets.
Tablets aren’t the most powerful computing gadgets. But they are the most convenient.
They’re bigger than the tiny screen of a smartphone, even the big ones sporting nearly 5-inch screens.
They have longer battery life and always-on capabilities better than any PC — and will continue to be better at that than any ultrathin/book/Air laptop. That makes them very handy for carrying around and using frequently, casually, and intermittently even where there isn’t a flat surface or a chair on which to use a laptop.
And tablets are very good for information consumption, an activity that many of us do a lot of. Content creation apps are appearing on tablets. They’ll get a lot better as developers get used to building for touch-first interfaces, taking advantage of voice input, and adding motion gestures.
They’re even better for sharing and working in groups. There’s no barrier of a vertical screen, no distracting keyboard clatter, and it just feels natural to pass over a tablet, like a piece of paper, compared to spinning around a laptop.
Recently I published a forecast about mobile subscriptions and mobile subscribers (people) by region, worldwide. In 2012, more than half of the world’s population — around 4.3 billion people — will own at least one mobile handset. In emerging markets, where the penetration of landline phone connections has been low, the adoption of mobile phones has soared over the past five years. Mobile handsets are able to provide a cheaper and more convenient means of telecommunications access. They are breaking down barriers to entry — and have been received with welcoming hands and ears.
In the recently published Forrester Research World Mobile Adoption Forecast, 2011 To 2016 (Global), we break down the numbers and growth drivers for the adoption of mobile Internet across the globe. Many consumers who have not been able to go online will now get the opportunity to access the Internet due to declining mobile data costs. About a fifth of the world’s mobile subscribers are currently using their mobile handsets to go online. According to our research, the global penetration of mobile Internet users will exceed that of PC-based Internet users in 2016.
The New York Times recently published an article based on a Forrester report (Mobile Is The New Face Of Engagement) about the uptake of smartphones worldwide in the years to come. And for 2011 it was estimated that just under 500 million smartphones were shipped. Knowing the drivers behind the growth of smartphones gives businesses confidence in mobile technology investment — even when uptake is currently still limited.
In the US today, Consumer Technographics® data shows that mobile usage is still far from mature in many industries. Take the financial industry as an example: 21% of US online adults with a mobile phone do any form of mobile banking versus 73% of US online adults who do online banking. When looking at the different generations, we see that younger generations, who are more likely to be early smartphone adopters, dominate in mobile banking.
Forrester’s US Online Retail Forecast, 2010 To 2015, launches today, reporting strong growth in the last year. “The Great Recession” appears to have ended as sales charge ahead, driven by ubiquitous connectivity and an increasing familiarity with the Web. Growth was driven by a few key factors:
Several million new web buyers. In 2010, 5.5 million shopped online for the first time.
Greater spend per buyer online. 70% of the overall growth came from existing shoppers simply buying more.
Online penetration of total retail sales. This rose to 8% during 2010.
According to our forecast, the web channel will grow steadily through 2015, with an emphasis on customer empowerment. Bricks-and-mortar stores will continue to be hampered by this web growth as people become more in tune with the Web and less interested in traffic and long lines. We’ll be continuing our online retail research with our long-standing partnership with Shop.org this year. Next up: The State of Retailing Online report in Q2. If you’re an online retailer, contact me at firstname.lastname@example.org to participate in the survey and receive the report.
Consider it an inauguration of sorts, a celebration of the eBook industry becoming a member of the major media club just as digital music and online video have before them. When you influence a billion dollars, people have to take you seriously. In the book business, it means that traditional publishers can no longer live in deny-and-delay mode; meanwhile, digital publishers get invited to better parties and people in other media businesses like TV and magazines look over and wonder if they could cut a slice of this new pie just for them.
To honor the occasion, we have just published our five-year forecast for eBooks in the US for Forrester clients. The punchline is this: 2010 will end with $966 million in eBooks sold to consumers. By 2015, the industry will have nearly tripled to almost $3 billion, a point at which the industry will be forever altered.
Right now, the number to track – and the one that determines how many eBooks will sell – is the percent of a consumer’s books that are bought and consumed digitally. To get at this number, we have to understand how people get books today. Did you know that the two most common ways people get books today is borrowing them from a friend or getting them from the library? Evidently content – at least in the book business – is already quite free, even without the help of digital.
I'm a big fan of the digital home, even if the phrase itself has slipped from popular use lately. I cannot wait for it to happen to me -- I'll have connected displays (does the word TV even apply anymore?) throughout the house, including the ones in my pocket, in my lap, or otherwise within reach at all times. Those displays will all speak IP, the language of the Internet, and they'll all speak to each other as well, allowing me to control one display -- say, my TV -- with another one -- my Droid X, for example. There's so much product innovation yet to come in the digital home that I love my job.
I'm not the only one who sees it, of course. If you follow the excited announcements from TV makers and electronics retailers like Best Buy, the next TV we all buy will be a connected TV (defined as a TV set with its own Internet connection whether wired or wireless and some kind of software platform), a critical first step toward that future digital home nirvana.
Connected TVs are going to be a big deal; to understand why, read my latest report which includes US survey results about connected TVs along with a forecast for connected TV penetration through the middle of the decade. It just went live to Forrester clients last week. In the report, we show that thanks to the enthusiasm on the supply side, connected TVs are going to sell like proverbial hotcakes. By 2015, we forecast that more than 43 million US homes will have at least one. That's a remarkable number, especially considering that we entered 2010 with fewer than 2 million connected TV homes in the US.
One of the first tasks I settled on when I returned to Europe this year was to update our online ad forecast. After months of research, I’ve just published that report, ‘Western European Online Advertising Forecast Through 2014’ – and I’m happy to say that overall, the picture that’s developed is one of an industry returning to health. 2009 wasn’t a great year for the market, but thanks to a strong fourth quarter it wasn’t the terrible year everyone was expecting either – and more importantly, it looks like the weakness was a short-term blip rather than the beginning of a prolonged market slide. Western European online ad spending – which we define as the total of display ad spending and search spending in 17 countries – totalled €9.6 billion in 2009, and will grow to €13.9 billion in 2014.
When you dig a bit deeper, however, it becomes clear that different sectors of the market will have differing fortunes over the next five years. We think the big story between now and 2014 will be online display advertising. After a year of stagnation in 2009 – when it grew by just 1% across Western Europe – we think display is starting to look as healthy as ever. With huge advances in targeting helping response marketers deliver their ads to the right users, and with rich ad formats convincing brand marketers to shift more of their budget online, display will grow by 4% in 2010 and hit double-digit annual growth by 2013.