Thinking of launching a daily deal? Just hold that thought and read this first...

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Martin Gill

In November 2011 Sucharita Mulpuru published a very well read Forrester research document entitled “The Myths and Truths About Daily Deals”. In this document she led with the line…

“While significant media and investor interest in daily deals has fueled the hype around this business model, data from consumers indicates that daily deals are significantly challenged models.”

The daily deals concept is receiving just as much press coverage in Europe as it is in the US, so with that in mind we have taken a similar look at the state of the market of deals, flash sales and coupons and found that while there is a great deal in common, there are some notable differences.

Much of the differences stem from a combination of the local players and the geographical complexity of operating across Europe.  Many of the big players like Grouponand Living Socialare present in Europe, with significant market presence in many countries, though a range of other national companies like DailyDeal.deand SecretSales.comoperate in only one country. So while at a national level the situation is reasonably easy to understand, eBusiness executives operating in a pan-European company have a maze of different options to navigate through.

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A Unified Digital Europe. Is It Possible?

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Martin Gill

 

Yesterday the European Commission outlined its ambition to create a “genuine Digital Single Market” by 2015. You can read the whole text here if you have some time to kill . . .

 http://ec.europa.eu/news/economy/120111_en.htm

It has the bold aim of “doubling the shares of the internet economy in European GDP and of online sales in European retail by 2015.”

Bold? Not half!

Like many EU documents of this sort, it’s big on ambition but frustratingly light on the “how.” In short, the document outlines 5 key blockers to cross-border growth in the EU, as follows:

·         The supply of legal, cross-border online services is still inadequate.

·         There is not enough information for online service operators or protection for internet users.

·         Payment and delivery systems are still inadequate.

·         There are too many cases of abuse and disputes that are difficult to settle.

·         Insufficient use is made of high-speed communication networks and hi-tech solutions.

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The Globalization of eCommerce in 2012

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Zia Daniell Wigder

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 :

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So, Are Accounting Systems Non-Differentiating?

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George Lawrie

Do you ever wonder which IT investments really drive competitiveness or comparative advantage for your firm and which are there simply to support mundane processes that are identical to those of all your competitors? Do you ever wonder if it might make sense to standardize on "best practices" for non-differentiating processes and supporting application implementation?

Received wisdom is that accounting processes are not differentiating and so it makes the most sense to support them with packaged apps or maybe with software-as-a-service solutions. Larger firms often implement shared services for financial management across all their business units or even outsource altogether apparently dull processes such as invoice settlement or collections.

But does that really stand up to scrutiny?

One retailer, with which Forrester worked, confessed to having 17 definitions of margin depending on which types of supplier rebates and volume discounts were included. We asked how they calculate markdown and they grinned.

The more I thought about it, the more this fact disturbed me. In some types of specialty retail, inspired opportunity buying is the key to competing with the bulk buying muscle and supply chain scale economies of global discount retail chains.

Many retailers import merchandise and have to calculate "landed cost" based on customs and freight invoices that arrive long after the goods in question have been sold. What price weighted average actual cost accounting, or margin calculation, in such a scenario?

Where is the scope for creative dealmaking in standardized accounting applications that deliver lowest common denominator functionality across verticals as diverse as local government, with its focus on fund or commitment accounting,  engineer to order manufacturing with a focus on multi-period project costs and retail with a focus on margin measurement and management?

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The Battle For The Digital Wallet

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Benjamin Ensor

Over the past couple of years I have been intrigued by the concept of a 'digital wallet' that will combine mobile payments with a variety of other benefits for customers. The more people I talk to, the more convinced I am that mobile digital wallets will mark a big shift in retail payments. A mobile digital wallet is more than just a mobile payment system because it combines:

  • Mobile payment. Digital wallets are likely combine several different payments systems into a single service, including mobile contactless payments, online (i.e. web) payments, and over-the-network mobile payments, making it easy for customers to make a variety of different types of payment from a mobile device.
  • Barcode scanning. Scanning barcodes or QR codes will let customers get more information about products, and let them pay for items on their phones before showing an on-screen receipt to leave the store.
  • Loyalty rewards. Instead of carrying (and sometimes forgetting) a separate loyalty card, digital wallets will track customers’ spending and offer merchant-funded rewards, either on the phone or at the point of sale.
  • Coupons and offers. Digital wallets are likely to offer customers coupons and location-based offers.
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Nordstrom Innovation Lab: The Lean Start-Up Within The eBusiness Giant

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Steven Noble

In April, I published research about the importance of innovation in eBusiness, and how eBusiness professionals can prioritize the many opportunities that lay before them.

To harness these innovation opportunities more effectively, eBusiness leaders must learn how to prototype more quickly, so they can more quickly and cheaply learn what works, and what needs further rapid adaption.

No video showcases these concepts more effectively than this one, from Nordstam Innovation Labs, which I found on Eric Ries' Startup Lessons Learned blog. Enjoy.

Executive Q&A with Sona Chawla, President e-Commerce, Walgreens

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Andrew Stockwell

I'm thrilled that Sona Chawla will be a keynote speaker at Forrester's Consumer Forum in just over three weeks! As the President of e-Commerce, Sona oversees operations and leads the team responsible for building the sales, service and customer experience of Walgreens.com and drugstore.com (acquired in June 2011). This includes driving store traffic through the Web, growing online profitability, and the development of new product and service offerings via emerging digital touchpoints such as mobile.

Earlier today, Sona provided me with a sneak peek of her upcoming presentation for our forum "110 Years Of Agility: Continuing Our Evolution To Meet Customer Demands" and all I can say is that it's not to be missed! I don't want to reveal too much and spoil it, but Sona will touch on the dynamic forces at play within healthcare and retail that are driving Walgreens' digital transformation, the framework they are utilizing to enable that transformation, and finally what Walgreens sees for the future. And of course throughout the discussion Sona will have key lessons learned and advice for firms across industries going through similar transformations.

I do however want to share with you Sona's responses to some questions we asked her in advance of the event. Her thoughts demonstrate the growing importance (and let's not forget the financial benefits) of serving customers across touchpoints with innovative, digital products and services.

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Break Down The Walls Of Shopper Marketing

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Tracy Stokes

As the economic malaise lingers on, a more frugal consumer mindset is spurring consumers to embrace new digital technologies to make more informed buying decisions. This shift in behavior is releasing shopper marketing from the confines of the store walls, as consumers make purchase decisions at home and on-the-go. Once a tactical outpost in the sales organization, shopper marketing is now being embraced by forward-thinking marketers like Kellogg’s and Clorox, which are focused on getting on their consumer’s shopping list before she even gets to the store. But with this new opportunity comes potential organization confusion. Where does shopper marketing end and brand marketing begin? And where should it sit in the organization? Check out my report, “Shopper Marketing Breaks Out Of The Store,” to find out how consumers' shopping habits are changing, how retailers are responding, and what it means for brand marketers.

How is your consumer shopping differently? And how is shopper marketing changing your organization? Answer here or join the discussion on The Forrester Community For CMO & Marketing Leadership Professionals here.

Thanks!

Enter the Commerce API

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Brian Walker

 

Today Demandware announced their much anticipated Open Commerce API. While many clients may not be in a position to take advantage of this immediately, the value of APIs like this extends well beyond the typical feature release. That value will be in enabling their clients to extend the customer touchpoints they can manage with the core commerce platform well beyond their web and mobile commerce sites. In the era of agile commerce, commerce platforms like Demandware’s will increasingly be leveraged to power many consumer shopping and buying touchpoints  such as mobile apps, kiosks, in-store/branch solutions, interactive TV, social commerce, and embedded commerce. You can look to Tesco’s mobile shopping solution in Korea, or Ralph Lauren’s embedded commerce in their New York Times iPad App ads to see how a commerce API can be used. Robust, secure, well supported APIs will enable examples like these to be done in developer friendly ways to streamline development, enable innovation, and ensure quality customer experiences that leverage a consistent back-end commerce solution.

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Tesco’s Homeplus Innovates With Agile Commerce

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Brian Walker

When I first saw the video below of how Tesco’s Korean subsidiary Homeplus had tested a "virtual supermarket" in Seoul’s Hangangjin subway station I was impressed with the customer-centric use of mobile technology to innovate the shopping experience. The test included using basic posters with QR codes to enable the customer to create an order for delivery while on their way home.

Now we have learned that Homeplus is extending the trial to other Seoul subway stations next month with a view to rolling the format out across South Korea within two years.

What makes this possible? First and foremost an investment in a services-oriented architecture that Tesco began years ago, along with a consumer market well adapted to using mobile technology in their day-to-day life, and an operational capability to pick the items and faciliate delivery. It is intriguing to see how this test paints a future where physical displays – be they printed or digital – can be used to enhance the cross-touchpoint research, purchase, and service. Ideally these need to be highly integrated to the commerce platform to support real-time price, inventory availability, promotion, and content updates that enable full cross touch-point commerce, with this yet another interface to support shopping.

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