Seizing Opportunity From Digital Disruption

Carrie Johnson

I recently wrote a post about "eBusiness professionals edging closer and closer to the C-Suite. It's happening across many organizations and has a lot of implications -- from eBusiness pros needing to understand stores and branches better to more critically eyeing partnerships and competitors that can help or inhibit growth. No conversation about partnerships or digital disruption would be complete without a discussion of the tech titans and the platforms driving key trends like social and mobile. Amazon, Google, Facebook, Apple... every eBusiness professional we speak with has to have a strategy for working with at least one, if not all, of these firms. The language we hear from folks about these relationships is colorful, including "Deal with the devil," "frenemy," "necessary evil," and so on. Everyone has something to say about digital disruption and how to best harness it, so we decided to put those people on our stage at our upcoming eBusiness Forum and let them have at it!  

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The Square-Starbucks Deal Will Accelerate Digital Wallet Adoption

Denée Carrington

Today’s announced partnership between the West Coast innovators Square and Starbucks represents a significant milestone in the advancement of mobile payment and digital wallets. Here’s why:

  • New entrant scale. The Pay With Square digital wallet has suddenly catapulted from a respectable new entrant in mobile payments, driving adoption within the long-tail of retail, to soon being present in every Starbucks, and in NYC, that’s just about every other block. Starbucks, the leader of in-store mobile payments, says that 1 million people per week use its mobile payment app to pay in-store. Its existing mobile payment customers will now be Square’s customers, giving Square an immediate boost in the number of locations and consumers it reaches within the market.
  • Accelerated adoption. As with the Starbucks app, consumers have only to download the Pay With Square wallet and load their funding source in order to use it. But unlike the existing Starbucks app, the Square digital wallet works with other merchants. According to Square, merchant acceptance is very quick and no-to-low cost, and Square promotes its participating merchants to users of the wallet. I think this set of factors will motivate other merchants — both large and small — to use this as an opportunity to trial mobile payments in their stores. Today’s announcement is unclear about whether the initial implementation will have Starbucks embedded in the Pay With Square wallet, but at a minimum, this deal gives Square broader visibility and awareness and the opportunity to earn the confidence of new customers with its digital wallet, which will drive broader adoption overall.
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HTML5 – Maturing Desktop Browser Support Opens The Door To Enhanced Commerce Experiences

Peter Sheldon

 

eBusiness and channel strategy professionals are no strangers to HTML5. Ubiquitous support for the next generation of open web technologies (HTML5, CSS3, and JavaScript) across smartphones and tablets has made it easy for mobile development teams to start leveraging these technologies. However, fragmented browser support for HTML5 and CSS3 features on desktop browsers has thus far dampened the appetite of developers to embed HTML5 into their desktop eCommerce sites.

As we roll towards 2013, the tide is turning; leading online brands, including Apple, Best Buy, Four Seasons Hotels, and Rue La La to name a few, are now putting the features of HTML5 to use on their desktop sites with the goal of enhancing the online experience for customers using modern browsers like Chrome, Firefox, and IE9. We are at an inflection point: With consumer adoption of HTML5-“capable” desktop browsers widespread and web developer understanding of the technology rapidly maturing, HTML5 is no longer an emerging toolset for mobile and tablet development. Instead, it is fast becoming the de facto standard for web experience innovation across touchpoints.

As eBusiness teams evaluate the business case for HTML5 on the desktop, it is important to remember that this not an all-new technology— it is a collection of individual features that extend the existing W3C HTML standards. The decision to start using HTML5 or CSS3 does not require any changes to or throwing away of existing code. Instead, eBusiness teams can simply enhance the user experience of existing sites by incrementally using the new features of HTML5. HTML5 puts more tools in the box, but it doesn’t change the fundamentals of how to build the website.

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Who Will Displace Amazon? One Of These 3 Will

Sucharita  Mulpuru

Last week, my colleague Brian Walker and I released a lengthy overview of Amazon, its role in retail, and what eBusiness executives need to do to compete with this growing retail force. The larger undercurrent of the report is that Amazon is affecting everyone’s business: its tentacles extend far into digital and physical goods, it is vertically integrated but also a distributor, it is unafraid to spend money to gain market share, and it can successfully compete on price with retailers far bigger than itself. And when disruptive forces arise, they dominate for years. So that begs an even bigger question of Amazon: if this is its decade, who will displace it? The company seems unstoppable now, and it will take a radical new business to displace it. Here are three possibilities:

  • Walmart with a monster marketplace. Walmart in its current form will only continue to lose share to Amazon. While Walmart continues to focus on aggressive pricing by pressuring suppliers, Amazon has an equally compelling value proposition for shoppers because it has a lucrative marketplace. And while Walmart has dipped its toe in a marketplace its own, it’s really been a mediocre effort. BUT if Walmart really had a bona fide marketplace, say, by acquiring eBay, it would give it an economic model more similar to Amazon’s: a high-margin business that can bolster the low-margin one. And deeper Walmart pockets mean that someone could finally out-Amazon Amazon.
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The Digital Wallets Wars Are the Next Phase of the Payments Industry Transformation

Denée Carrington

In my coverage as Forrester’s new payments analyst, I'll serve consumer product strategists who accept or facilitate payments as they create, navigate, and capitalize on digital disruption within payments.

We are in the early stages of unprecedented innovation and transformation of the consumer payments industry, and emergence of a digital wallet marketplace is the next act. The definition of a digital wallet continues to evolve as innovations come to market, and the term is sometimes used synonymously with “mobile payment.” However, there are significant differences. Forrester defines a digital wallet as:

A digital service — accessed via the web or a mobile application — that authorizes payment transactions from one or more payment sources and facilitates other commerce-related features, such as offers, coupons, loyalty rewards, electronic receipts, and product information.

As new wallets are introduced into the market, we will see consumers and merchants accelerate their trial and adoption. Yesterday, Google announced a new cloud-based version of their digital wallet that intends to address many of impediments associated with their first version.  In my new report out today, titled “Why The Digital Wallet Wars Matter," I frame the emerging digital wallet landscape, provide a profile of early adopters and how to capture their attention, and outline which wallets will ultimately win in the marketplace. Here are the key takeaways:

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Forrester Publishes Its New Online Retail Forecast For Latin America

Zia Daniell Wigder

We just published our new Latin American Online Retail Forecast, 2012-2017 which forecasts growth in Brazil, Mexico and, for the first time, Argentina. In the report, we analyze the B2C and C2C online retail markets in these three countries, and note that:

Brazil remains the largest eCommerce market in Latin America by a wide margin. Despite the economic slowdown in Brazil, eCommerce continues to charge ahead in the country, surpassing USD 12 Billion this year. Unlike the other two markets we forecast in the region, Brazil’s eCommerce market is heavily driven by mass-market consumers: Our surveys indicate that over half of metropolitan online users whose monthly income is less than BRL 4,000 (around USD 2,000) shop online in Brazil. Online shoppers in Brazil are also starting to diversify their purchases beyond early adopter categories such as books and media, consumer electronics and computer hardware.

eCommerce revenues in Mexico are growing rapidly off a small base. In contrast to Brazil, eCommerce in Mexico remains at an early stage, with small but growing revenues. Online buyers tend to be relatively affluent, but per capita online spending remains quite low. As the online buying population expands and starts to encompass a broader demographic, eBusinesses will need to take into account the large percentage of consumers in Mexico who do not have credit cards and who access the Internet outside the home or office.

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Harnessing the Mobile Revolution -- End-to-End

Patti Freeman Evans

Engaging with users via mobile is now unavoidable - no surprise there. By 2016, smartphone subscriptions in the US will likely outnumber people and in Europe, almost 70% of the population will own smartphones. Consumers want  simple, immediate, and contextual  mobile services.

Mobile offers additional contact options that go beyond the traditional touchpoints you have with a consumer, further embeds your brand into your customers' lives, and, perhaps most importantly, can serve as the central connector between all your touchpoints. The flexibility and immediacy mobile provides enables you to drive customers across and within channels and, at the same time, comes with greater complexity and more need for speed. 

 

eBusiness professionals are at the forefront of this evolution.  In order to drive value for your business and your customer, it is critical that you have a systematic, end-to-end approach to support and connect with customers through this critical touchpoint.
 
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One Fifth Of European Mobile Users Use Mobile Banking

Benjamin Ensor

The longer we spend researching mobile banking, the more convinced I become that mobile banking is the most important innovation, or cluster of innovations, in retail banking in years, arguably in a century. Here’s why I think mobile banking is a much bigger deal than cash machines (ATMs), credit cards or home-based online banking:

  • In developing economies that lack a dense infrastructure of branches, ATMs and fixed-line telecoms, mobile banking and payments are bringing millions of people into the formal banking system for the first time.
  • In developed economies mobile banking will become the primary way many, perhaps most, customers interact with their banks. Banks need mobile banking to provide a platform for mobile payments and to protect their retail payments businesses from digital disruption as mobile payments start to replace card payments in shops.
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Is Responsive Design The Future of Cross Touchpoint Web Development?

Peter Sheldon

If you’ve been chatting with your web development team recently, you might recall them talking about responsive design. But, what is responsive design and why should eBusiness professionals be taking it seriously?

First, responsive design is not a technology, it’s a development philosophy - an approach to web development that forces user experience developers to design and optimize from the outset for multiple touchpoints including (but not limited to) the desktop, tablets and mobiles. Until now, many eBusiness teams have either developed their mobile site by coding a separate set of templates, or outsourcing to a 3rd party vendor or agency whom in many cases scrapes or proxies existing content from the desktop site. As many retailers and other eBusiness teams start to develop optimized tablet sites, there is a distinct concern that supporting 3 different sites for desktop, tablets and mobile is becoming increasingly expensive and is causing a drag on innovation momentum.

With a responsive site, developers use a single set of front-end code to build a site that responds within the constraints of the device to deliver an experience that is contextual to the size and orientation of the screen. Responsive design allows eBusiness leaders to consolidate their teams (UX designers and developers) back into a single ‘web’ team aligned around a single technology (CSS3 & HTML5) and writing a single set of code. Some eBusiness leaders are referring to this consolidation as back to “one-web” and are increasingly intrigued by the potential cost and efficiency benefits that moving to a responsive site has to offer.

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How eCommerce Markets Evolve

Zia Daniell Wigder

One of the topics I’ve spoken about at recent industry events is how global eCommerce markets evolve – more specifically, how markets shift from an early stage to one in which consumers spend lavishly online and buy across a wide variety of categories.

After interviewing dozens of companies about their experience expanding into different global markets, and after reviewing internal and external data, we’ve noted that markets tend to go through four phases as they reach the stage of well developed eCommerce. We identify these four phases as the following:

Phase 1: Connecting and Entertaining. In this phase, consumers are starting to go online and connecting with others through the online channel. Some 10-15 years ago, consumers were likely to go online and engage through email or chat; today, social networking has joined the ranks of one of the early activities of online users. Socialbakers’ estimates of Facebook users by country indicate that the network’s top five markets outside the US are Brazil, India, Indonesia, Mexico and Turkey – in such markets, the number of Facebook users today often surpasses the total number of online users just five years ago.

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