Some global themes from recent events

Zia Daniell Wigder

Over the past month, I’ve had the great fortune of taking part in three fantastic events: Forrester’s own Marketing & Strategy Summit in Shanghai, Demandware’s XChange Conference in Las Vegas, and Borderfree’s (formerly FiftyOne) Global eCommerce Forum here in New York. Several themes around global eCommerce came up in conversations at all three events:

Consumer online spending is driven by more than price in emerging eCommerce markets. In markets like China, it’s well established that consumers use the online channel to bargain-hunt. Yet there’s much discussion of the fact that consumers are moving beyond chasing the lowest prices online – instead, they are looking to trusted online retailers that provide a superior customer experience and guarantee authenticity.

International expansion involves a mix and match of different approaches. It’s now common to see companies taking a variety of approaches to global markets. Brands may operate a series of country-specific websites with local fulfillment, offer a branded store on a marketplace such as Tmall in China, and serve a large number of other markets through an international shipping model.  The one-size-fits-all approach has given way to a more complex set of different global options.

Read more

SunTrust Reboots Its Digital Platform With Responsive Design

Peter Sheldon

With mobile and tablet usage now mainstream, a big hurdle for eBusiness professionals is how to scale digital experiences across consumer touchpoints without dragging development momentum to a near halt in the process. But how?

In previous research, we’ve highlighted the advantages of responsive web design and how it can simplify the development of web experiences across multiple consumer touchpoints. In our latest report, we explain how one company, SunTrust Banks, began an initiative to simultaneously improve its internal web project delivery processes while expanding its digital presence across new consumer touchpoints.

SunTrust, like many enterprise organizations, was expereincing a painstakingly slow, and costly, rollout of its digital platform. Demands from the business for digital experiences were on the rise, resulting in a 200% year-over-year growth in project requests. At the same time, SunTrust’s total traffic coming from mobile reached almost 10% of total digital traffic and tablet traffic was on the rise. With more and more devices emerging at a breakneck pace, the digital team at SunTrust knew they had to rethink their approach to web development. The team landed on responsive web design as a solution to their problems. Reponsive design enabled the digital team at SunTrust to focus resources on building and maintaining a single web platform instead of maintaining and optimizing multiple fragmented user experiences. They call it “The Power Of One.”

Read more

Calling eBusiness Technology Decision Makers - Forrester Needs Your Help

Peter Sheldon

If you're an eCommerce technology decision-maker, we would love your help with our annual eBusiness technology investment panel survey. The survey is built to help eBusiness & Channel Strategy Professionals determine where priorities lie in terms of eBusiness technology investments. Additionally, it will shed light on how your firm’s tech spending compares across industry, employee size, and company revenue. 

 
You just have to share with us your own perspective, and we’ll aggregate the answers. The survey will take less than 10 minutes to complete, and responses will be kept strictly confidential and published only in an aggregated and anonymous manner. To participate, please follow this link.
 
We'll be publishing the results in our forthcoming "2013 Online Retail Technology Investment Outlook" report, where we'll compare what's changed since we last ran this same survey in 2011
 
Your participation is much appreciated,
 
Peter

In China, mobile should be a key part of your eCommerce strategy

Kelland Willis

About two weeks ago I had the opportunity to go to Shanghai for Forrester’s first event in China, “Winning the Dynamic Digital Consumer in China”. (To read all about it check out Andrew Stockwell’s blog post here.) At the event I gave a quick presentation about the potential opportunity that retailers have to engage with mobile shoppers in metro China where nearly 100% of online adults have at least one mobile phone and more than four-fifths of those mobile phones are smartphones.

It is critical for eBusiness professionals to put mobile on the top of their to-do’s when creating their China strategy because of the huge opportunity to engage with consumers - and the fact that the market remains vastly underserved. After spending a week and a half in Shanghai and Beijing and visiting American and European retail establishments this proved to be the case - only a handful had any type of mobile offering.  A few things to think about when considering your mobile strategy in China:

  • There are 1 billion mobile phone users in China, but 3G has yet to hit 25% penetration.
  • Free Wi-Fi is available nearly everywhere – malls, coffee shops, fast food restaurants, train stations and even in some taxis.
  • Unlike their U.S. counterparts, it is very likely that the first connected device for consumers in China is a mobile phone and not a PC.
  • There are specific opportunities for successful mobile campaigns. 39% of Tmall and Taobao’s sales combined were made on mobile devices on Singles Day (China’s equivalent of Cyber Monday).
  • Android is the highest adopted operating system by far.
Read more

Three Disruptive Payment Trends In 2013: Greater Customer Value And Shifting Economics Will Shape The Future Of Payments

Denée Carrington

2013 will be a pivotal year in consumer payments. It will be marked by an increase in digital disruption by nimble, tech savvy competitors. Payments incumbents will leverage their market power to battle disruptors. We see early evidence of this with MasterCard's new fee structure for “staged” digital wallet providers such as Google Wallet, PayPal and Square, which mask the merchant of record and other transaction details from others downstream in transaction flow. Finally, merchants and consumers will wield their tremendous influence in picking winners and losers as the array of alternative payment options become more abundant, more accessible and begin to deliver greater value to the commerce experience. In my new report out today, titled “Three Disruptive Payment Trends in 2013,” I explore three trends, driven by digital disruption, that will shape the future of consumer payments. I provide an analysis of what each trend means for competitors across the payments ecosystem and provide recommendations for responding to the impending disruption. Here are the key takeaways:

Read more

Reflections on Forrester's Event - "Winning The Dynamic Digital Consumer In China"

Andrew Stockwell

I'm still riding a high from Forrester's first ever event in China two weeks ago on March 20th entitled "Winning The Dynamic Digital Consumer In China" (#ForrForum). Approximately 200 marketing, eCommerce, and strategy executives, along with a fantastic cadre of leading agencies and marketing technology vendors, participated in the event. Via myriad content, networking, and business development conversations, it's clear that both the challenges and opportunities to engage, market to, sell to, and serve the Chinese consumer are considerable.

I've spent the last few days reflecting on my key takeaways from the event, and wanted to summarize them for you below.

Read more

How To Build A World-Class Mobile Banking Strategy

Peter Wannemacher

Mobile has gotten a lot of attention at banks recently. In fact, other teams in a firm’s organization are starting to feel like Jan Brady, the voices in their heads chanting “Mobile Mobile Mobile!”

But there’s good reason for the increased focus on mobile banking efforts: mobile is the most important strategic change in retail banking in over a decade. It is shifting your customers’ behavior, raising customers’ expectations, and opening up new opportunities for banks, their competitors, and new disruptors.

So how can strategists at banks assess the current and future state of the mobile banking market? How can they plan their own mobile banking roadmap? What do they need to successfully execute these plans? And how will they continue to improve and enhance their mobile offerings going forward?

Forrester’s new Mobile Banking Strategy Playbook seeks to answer all of these questions, drawing on mountains of research and deep dives into data in order to give eBusiness teams at banks a complete framework for building and maintaining a world-class mobile banking strategy. The playbook will include 12 chapters (plus an Executive Summary) that cover different aspects of mobile banking – and many of those chapters are already live. These chapters outline how to develop a successful mobile banking strategy. Specifically, we recommend that mobile strategists at banks:

Read more

US eCommerce 2013-2017: Still On Fire (And A Jobs Engine To Boot!)

Sucharita  Mulpuru

We have just finalized our projections for US eCommerce for 2013 and not surprisingly, the numbers are strong — excluding auctions, we expect that figure to be $262B, 13% higher than the total in 2012. A few highlights of note:

  • Three categories capture over one-third of that total. Yes, only three! Apparel and accessories alone are a $40B-plus sector (which probably explains the heavy investment of players like Amazon in the space), followed by consumer electronics and computer hardware. 
  • Overall web penetration is 8%. That may not seem very remarkable, but that figure is deceptive because it’s weighed down by the grocery/food and beverage category, which is one of the largest overall but least penetrated online. In fact, if we exclude grocery from the mix, overall eCommerce penetration in the US jumps to 11% of overall retail. 
  • eCommerce is a jobs creator in the retail sector. For the first time, we have estimated the total employment in the US that results from the online retail sector. Our estimate is that over 400,000 individuals are employed in some web retailing function, of which more than half are salaried professionals (i.e., all non-fulfillment and call center employees). Furthermore, many of these salaried positions have promising long-term career growth trajectories. Given that there are probably about 750,000 such salaried jobs overall in retail (my estimate, approximately 10% of the 7.3M people employed in retail overall), the fact that the eCommerce sector has nearly 200,000 of them is a remarkable testament to the employment impact of this sector.
Read more

European Online Retail Forecast 2012 to 2017: Online growth will begin to polarize across Europe

Martin Gill

European online retail sales will reach €191 billion by 2017, up from €112 billion in 2012 – reflecting a 11% compound annual growth rate (CAGR) over the next five years.

Read more

Keynote Sneak Previews - "Winning The Dynamic Digital Consumer In China" - March 20, 2013

Andrew Stockwell

We are hard at work finalizing the content for the upcoming keynotes at Forrester's "Winning The Dynamic Digital Consumer In China" summit next week in Shanghai (#ForrForum). I'm so excited for everyone to hear our Forrester analyst and external industry keynote presenters on March 20th discuss what you need to drive successful multi-channel marketing and commerce strategies in China. To whet your appetite, I wanted to provide you with snapshots of the content for each keynote, and what you can expect to learn from each.

Read more