The State Of Retail eCommerce In Brazil

Lily Varon

The economic decline in Brazil has hit the retail sector hard , but eCommerce is still growing. To understand the state of affairs in retail eCommerce in Brazil, in 2016 Forrester surveyed online retailers in Brazil together with industry partner e-Commerce Brasil. Here are a few findings from the research:

  • Retailers are feeling the pain of operating in the midst of Brazil's economic recession. Nearly 60% of online retailers say slowing consumer spending with be a significant barrier to their eCommerce growth over the next 12 months. Furthermore, more than half cite the operational constraints of keeping up with constant regulatory change.
  • Online retailers are increasing their eCommerce technology budgets. Despite the pressure to reduce costs during turbulent economic times, 64% of Brazilian retailers we surveyed are increasing eCommerce investments to help them weather the storm.
  • Investment priorities include marketing, mobile – and uniquely! - marketplaces. Retailers this year are focusing on marketing and mobile, much the same as in the US and other global markets. Unlike many other markets, however, Brazilian digital commerce pros are also prioritizing marketplaces. Why? Third party marketplaces are a relatively simple way to sell direct to consumer online. And retailers like Magazine Luiza and Walmart Brasil are prioritizing launching marketplaces on their own retail sites as a source of new revenues.
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Amazon Buys Whole Foods To Expand Its Digital Prowess In Retail

Brendan Miller

Written by Principal Analyst Brendan Miller and Principal Analyst Brendan Witcher.

Whole Foods’ brick-and-mortar expertise combined with Amazon’s digital prowess is a one-two punch that will give retail executives more sleepless nights. Our initial take on what Amazon’s $13.7 billion acquisition of Whole Foods means for the broader retail market:

  • To thrive in grocery, Amazon needs a keystone: the local store. Grocery is a high-frequency shopping experience. Whole Foods’ stores give Amazon a new store platform for deeper engagement across all its selling categories. Amazon can lock in its national distribution and logistics mastery with a local “place” in a way that other retailers will struggle to replicate. Now Amazon can tie into those weekly (or multi-weekly) grocery runs with add-on products and services further deepening their reach into customers’ wallets.
  • Amazon knows that to win at brick and mortar, retail theater is paramount. Whole Foods locations are destinations where the idea of “Retail Theater” still thrives. Consumers go to Whole Foods to shop but also to discover new foods, attend wine tastings, pick up prepared foods, and enjoy a cup of organic coffee. Whole Foods can be credited with turning Americans on to arugula, almond milk, and probiotics. The idea of retail theater and discovery is badly missing in most brick-and-mortar retail shopping experiences. Amazon is now getting private lessons from the master.
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Adaptable Teams Prevail Over Mythical Retail End Times

The press continues to highlight bankruptcies and store closings to support a theory that the entire retail market is in a death spiral.  However, neither bankruptcies nor store closings accurately reflect the state of the retail market.  In 2017 we see an actual Wikipedia page dedicated to the ‘retail apocalypse’.  Headlines span the past seven years touting the doom of retail:

Retail Apocalypse Headlines from 2010-2017

 
Bankruptcies Aren’t Proxies For Retail Market Health…
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The Future of Retail Will Blow Your Mind

Martin Gill

The Future of Retail Will Blow Your Mind. A bold claim? You bet.

 

The retail industry is facing a tectonic shift. Empowered customers are challenging age-old truths every day. New distribution channels, e-commerce impacting physical stores, new payment systems and innovative technical solutions disrupt old operating models. Mobile and wearables connect customers wherever they are. Retailers face new and unprecedented challenges.

 

But you know this, right? You’ve developed a digital strategy. You’re selling online. You’ve got a mobile app. Maybe some digital signage in your stores. You’re sorted.

 

Think again.

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Amazon Go Ushers In A New Era In Retail Technology

Nigel Fenwick

Amazon's new Amazon Go store ushers in a new era in brick and mortar grocery and convenience shopping. In the early 80's, electronic point of sale (POS) dramatically changed the checkout experience in grocery stores, speeding up checkout lines. Today, a checkout without POS is unthinkable unless it's a farm stand on the side of the road … and even here we're likely to see Square hooked up to a smartphone. But even with POS, the checkout has always been the big time waster in any grocery shopping experience. Until this week.

Six years ago, "The Ultimate Grocery Shopping App" described a future in which the grocery shopping experience was radically different from what existed in 2010. This week, Amazon has brought part of that vision to life by opening its first Amazon Go brick and mortar convenience store for Amazon employees in Seattle. A convenience store with no checkout lines … with no checkout.

Gone are the POS systems. Welcome to the era of automatic checkout. Amazon has used new technologies like image recognition and machine learning to go beyond at least some of the experience predicted back in 2010. Instead of shoppers having to scan items into their shopping cart, Amazon uses this advanced technology to track what shoppers pick up and add to their cart and what they put back on the shelf. No scanning, no checkout … just walk out and pay.

Why will this take off? Becuase it gives shoppers back significant time savings and it gives retailers potentially enormous costs savings.

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Short Form Product Video Can Be The Key To Converting Customers

Nick Barber

Marketers have a great arsenal of tools to drive conversions and now short form video needs to be part of that mix. Invest in it now to differentiate your business. Historically, video has been expensive to produce and manage, but that’s changed. It no longer costs a fortune to produce video content. In fact, some retailers added video production to their existing photography process and they’re using the same equipment. Online video platforms can track the performance of videos across multiple sites--not just your own--and how they influence customers. Because of this, video ranks among the top new initiatives where retailers plan to invest in 2016.

 

 

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Microsoft And Lowe's Announce Augmented Reality Is Coming To Stores

Nigel Fenwick

If you're one of my regular readers, you may remember a post from August 2015 – "The Future Of Retail Is Digital" – in which I highlight key findings from a report on the future of retail experience. One recommendation was that retailers should begin to experiment with augmented and virtual reality technology early, so that potential use cases can be piloted in-store. Well this week, Microsoft announced a partnership with Lowe's to demonstrate the viability of Microsoft's Hololens to help Lowe's customers visualize custom kitchens.

While VR/AR is a long way from widespread market adoption (see this March 16 post by J.P. Gownder), the time needed to pilot and experiment with this technology means tech and CX teams in retailers need to be piloting use cases now in order to figure out what, if any, business impact the technology will have. (See also my comments from CES 2016).

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The US Holiday Shopping Season 2015 Sets New Online Records And Rebrands Black Friday

Kristopher Arcand

With the winter shopping holidays now behind us, Forrester is wrapping up its annual qualitative exploration of US consumers’ perceptions of the holiday season, both for their own behavior as well as what they observed across retailers. The retail industry has seen an increase in consumer spending compared to last year — possibly due to savings from lower gas prices. Overall, we saw that consumers felt less compelled to go out and buy gifts on Black Friday itself, but they still love a good bargain. Some other insights we gathered:

  • Black Friday sales effectively crossed over from in-store to online. While in-store shopping dropped on Black Friday, online shopping sales rose, resulting in an overall increase in sales. Consumers were quite conscious of the fact that online deals appeared even before the Thanksgiving holiday (and therefore before Black Friday). This year, these sales also carried the “Black Friday” label — traditionally an in-store-specific event. By re-associating Black Friday with deals first and foremost, this could restore positive sentiment and downplay what has otherwise become a stressful shopping event.
  • Targeted outreach drives online sales — but retailers shouldn’t overdo it. A smaller number of targeted deals and offers will help reduce the overall volume of email that consumers receive. This will in turn minimize the chances of consumer recipients being overwhelmed by holiday communications.
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World Retail Congress and kicking the discounting habit

George Lawrie

McGarrigle, Chairman of the World Retail Congress, makes his keynote opening address. © World Retail Congress

 

 

If you follow me on Twitter or if you attended WRC at the beautiful Cavalieri hotel in Rome  you’ll know that I had the privilege to moderate a panel of distinguished retailers to discuss the subject of discounting, specifically selling for less than the planned margin.

One of the event’s sponsors JDA had earlier presented data from a survey of retail leaders showing that their top foiur risk concerns included : increasing competitive threats (41%); margin erosion and cost reduction (39%); data security threats (25%), and attracting and retaining customers (24%).

Our panel, hosted by Congress sponsor and price optimisation software vendor Revionics, tackled the margin erosion issue asking: ‘How do we kick the discounting habit?’. The panellists, ranging across wholesale, fashion and apparel and general merchandise sectors, established a consensus view that discounting for its own sake, without a clear strategic goal and tactical execution, could be more damaging than beneficial to the bottom line – as was also arguably seen more recently with some of the more negative sentiment generated around Amazon Prime Day, as well as Black Friday.

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The Data Digest: A New Retail Reality, Boxed Up

Anjali Lai

They say that good things come in small packages – and it seems that those consumers who have signed up with the burgeoning wave of subscription services know this to be true. Today, whether you’re looking for fine wine or baby food, artistic inspiration or masculine essentials, you don’t have to leave your home to get – or even search for – the items yourself; the box delivered to your door may have just what you’re hoping for.

Subscription services are relatively new, but consumer awareness of and interest in the concept are growing. I recently became a customer of Stitchfix – and while I might be among just a handful of consumers who’ve actually signed up, nearly one-fifth of US online adults are interested in similar services. Forrester’s Consumer Technographics® data shows that interest is particularly high among young shoppers: 

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