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've been editing some reports on how consumers are using their mobile phones and how that has changed in the past couple of years. We only have to think back to the Nokia 6510 or Motorola flip phones that we were using a few years ago to see how the introduction of smartphones has changed our world. In many countries, people spend more time texting and doing other data-related activities on their phone than using it for actual voice calls.
And in many countries, the impact of mobile uptake and its evolution has been even bigger and more different than in the US and Europe. In the West, mobiles are often an addition to a PC or game console; in many developing countries, a mobile phone is the only device that most consumers own. This is reflected in the activities for which they use their mobile. For example, Forrester's Technographics® studies — involving 333,000 respondents in 18 countries — shows that Indian, Chinese, and Mexican mobile phone owners use their phones more to listen to music and play games than their European and US counterparts. [Note: this graphic shows selected activities from a list of possible activities]
Online retailers are rapidly adding emerging markets to their list of new global opportunities to explore, as these markets are set to take a growing percentage of global eCommerce sales going forward. However, it’s important to remember that Europe still ranks as at the most popular region outside of North America for US online retailers expanding internationally. The market is set to grow at a healthy pace over the next five years: Clients can read my colleague Martin Gill’s recently published forecast of online retail sales in key markets across Europe.
Some takeaways from recent conversations with online retailers expanding into and within Europe:
FiftyOne, the company that provides globalization and international logistics services to US-based online retailers such as Gap, Pottery Barn, and Crate & Barrel, announced today that it is acquiring Canada Post’s Borderfree unit. Borderfree, one of the first organizations to play a role in driving cross-border eCommerce, carved out a niche for itself helping US online retailers target online shoppers in Canada.
A few observations:
The acquisition does not disrupt the landscape of solution providers. With this acquisition, FiftyOne boosts its Canadian offerings and takes a small competitor out of the market, but the acquisition does not counter any direct threat from another solution provider in the space. Other providers tend to focus on different market segments, for example, International Checkout counts hundreds of clients in the SMB space, while BorderJump focuses on Latin America and the Caribbean (For an outline of different vendors, clients can read our 2011 report on Using International Shipping To Reach Online Shoppers Around The Globe). Today FiftyOne does not face another rival with the same roster of large clients.
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.
Brands rarely enter a market by selling direct on their websites. Most brands enabling eCommerce on their global websites today already sell in these markets through traditional retail channels — the online sales channel simply becomes a new way to reach consumers.
Country selection is not always dictated by market size. Brands expanding their online offerings in Europe, for example, often focus first on the UK, France, and Germany. After the big three, however, the ease and convenience of serving other markets often trumps market size.
Online sales strategies differ by market. Rare is the brand that has an identical offering in every international market. Most brands that offer eCommerce-enabled sites also provide informational sites in other markets, with little consistency in how the informational sites direct online shoppers to the brands’ retail partners.
As we look back on the year 2011, eCommerce organizations continued to expand their global reach. A growing number of US and European retailers started shipping internationally. Brands enabled eCommerce on their own websites in new markets and launched online stores on marketplaces in multiple countries. Other companies with an interest in global eCommerce used the year to gain insights into new markets, determining which ones to prioritize in the years ahead. Rumors swirled about Amazon preparing to enter India. Or Brazil.
For many companies, however, the globalization process is still just beginning. Aside from a handful of companies that operate eCommerce sites around the world, few companies have a truly global online footprint. The growing number of US- and European-based companies that ship internationally will see revenues increase from these markets, but will start to hit a language ceiling: Close to two-thirds of online consumers in both France and Germany, for example, agreed with the statement, “I only shop from websites in my native language.” In the UK, the percentage is close to three-quarters.
2012 will not be the year that eCommerce organizations blanket the globe with localized offerings – they will, however, continue stepping into international waters. Next year we expect to see :
Based on strong interest from my previous blogs on choosing the right marketing vehicles, I figured I'd continue the discussion with another angle that's often vexing for tech marketers - how do marketing vehicles vary by geography?
Cultural preferences factor significantly into how technology decision-makers consume information as they go through the purchase process. In analyzing more than 20,000 interviews across the US, Europe, and Asia Pacific, we see that vehicle selection varies by region by up to 40%. For tech marketers, this means that straightforward localization of global programs won’t work. Instead, you must understand how cultural preferences shape vehicle preferences and build programs that map to the specific vehicles appropriate for each market. Let’s look at a detailed example and then some broad guidelines.
We get a lot of questions about vehicle preferences for the C-suite, so I’ll pick CFOs as our example. Across the US, Europe, and Asia Pacific, the CFO is a critical player at the beginning and end of the purchase process for investments in collaboration and virtualization technology. When we take a look at vehicle preference for CFOs across these regions, we find that CFOs in the US prefer a balanced mix approach (vendor site, search, in-person sales discussion, and online business print such as Forbes and The Wall Street Journal). CFOs in Europe prefer web vehicles (online business print, online tech print, and online tech info sites) and CFOs in Asia Pacific favor events and sales over web vehicles. In all regions, the CFO is involved and tech-savvy. However, a marketer needs a unique regional mix to reach and influence the CFO.
Over the past year, we’ve worked together with the forecast team at Forrester to help eBusiness professionals understand the size of different online retail markets around the globe. Last year we published our first look at the online retail markets in some of the major markets in Asia-Pacific — this year, we’ve just published our first forecast for two of the largest online retail markets in Latin America, Brazil and Mexico. Some findings from the report include:
Brazil is — and will remain — the powerhouse in the region. With more than 40% of the online users in the region and a steadily growing economy, it’s not surprising that Brazil’s eCommerce market will outpace all others by a wide margin. Brazil’s projected 2011 sales of almost $10B put it behind other major online retail markets like France and South Korea but ahead of smaller ones such as the Netherlands and Italy.
Mexico’s online retail market is small today —but growing by a CAGR of almost 20%. With less than half of the online users of Brazil and limited online spending, Mexico’s online retail market remains a small fraction of the size of Brazil’s. Average online spending per buyer will not increase significantly over the next five years, but the sheer number of online buyers will.