Today hybris announced it has secured an additional $30M in funding from two Silicon Valley VC giants (Meritech Capital Partners and Greylock Israel). This funding comes only 18 months after hybris took a significant funding round from Huntsman Gay Global Capital to secure their acquisition of iCongo in August 2011. Despite an unprecedented period of growth over the past two years the firm has remained profitable. So why has hybris taken this additional round of funding and what does it mean for customers, prospects and partners?
It allows hybris to retain independence while growing credibility and market share. This additional round of funding buys hybris a window of security to maintain their independence in the market, allowing them to focus on R&D and scalable expansion without the distractions of the need to do an IPO or the threat of acquisition. By adding two leading VC firms as investors, the firm is clearly signaling to the market their intent to solidify their position as a global leader in the commerce technology market.
2013 is going to be a fascinating year for retail in Europe.
When I look at what’s to come this year, I can paint a picture of what Forrester predicts by looking at a tale of two brands. Both are iconic, heritage British brands that have responded to their increasingly digitally enabled consumers in two very different ways. Naturally, this has resulted in two very different levels of success.
I’ve spent the past two days at Finovate Europe in London, which has rapidly established itself as the leading European retail financial technology event of the year. This year’s event was bigger than last year’s, with 64 exhibitors spread over the two days.
Here are my impressions from the two days:
Innovation is hard and usually incremental. Our expectations are so high. It’s easy to sit in the audience and think ‘I’ve seen something like that before’. It’s a lot harder to develop truly new ideas, let alone build them and market them. Innovation is necessarily incremental, moving into the adjacent possible opportunity as my colleague James McQuivey puts it (see him explain it on video here). True invention is extremely rare. As James puts it in his new book, “The most powerful ideas consciously draw from and incorporate elements that were being developed by others along the way, ultimately generating the best outcome in the shortest time at the most efficient cost.” That’s what makes events like Finovate so useful.
...but I’ve spoken to a number of eBusiness executives in luxury retail companies over the last 12 months or so, and by and large they share a similar frustration. For the most part, their senior management remain resolutely defiant in the face of the opportunity that digital brings.
Which is arrogantly short-sighted, when you consider that luxury shoppers are:
Young. Shoppers who buy luxury products online in the US are almost ten years younger on average than regular online shoppers. Globally, online luxury shoppers are more likely to be tech-savvy thirty-somethings rather than brandy-swilling boardroom bumblers.
In a recent blog post of mine, I mentioned that Forrester had launched the Retail eCommerce Playbook. This playbook provides a structured framework to guide eBusiness professionals through their most strategic initiatives in eCommerce – from creating a vision to benchmarking results against peers.
It’s not a secret that consumers are constantly connected to the Web and it’s having a huge impact on how they research and buy products in every sector. As such, it is imperative that eBusiness executives have the appropriate tools and knowledge to execute a strong web presence that not only showcases their brand but also enables shoppers and store associates to research and buy. We crafted this playbook to address all the key elements of success. This playbook will help you:
Discover the importance of a best-in-class eCommerce business by providing eBusiness executives with insight into the opportunity for eCommerce, its growth trajectory, and the current landscape that retailers face as they continue to navigate this channel.
I’ve been called upon to present on agile commerce many times over the last year, and when I do I most commonly start with this quote:
"Change is the law of life. And those who look only to the past or present are certain to miss the future."
It’s from John F. Kennedy, a man that I admittedly don’t know that much about, but the sentiment in this message rings true for me. I am a passionate reader of history and taken too literally, JFK’s quote could seem to tell us not to look back for answers. But my take away from it is rather that you must learn how to build the future from lessons of the past. Don’t dwell only in tradition and “how it’s always been.” Far too many businesses have driven themselves to the wall over the last few years (Borders, Blockbuster, HMV, etc.) because they clung to the belief that what had made them successful in the past would remain their source of competitive advantage in the future.
One thing that history does tell us is that not only is change the law of life, but the pace of change is only getting faster. And that’s where the concept of agility comes in. I’ve written before about why agile commerce is more than just “multichannel done right.” Absolutely, the imperative of putting the customer at the heart of everything you do and serving them coherently and consistently across touchpoints is critical. But agile commerce builds on this by focusing on the need to achieve organizational agility.
When we look at our Technographics data on mobile banking adoption by bank, it’s clear that some banks are doing much better than others. Why?
Some banks are lucky. Some banks have distinctive brands or propositions that have earned them a customer base that is younger, better educated and higher income than the population as a whole. These customers are more likely to own smartphones, more like to use the mobile Internet, and more likely to be technology optimists. That makes them pre-disposed towards using mobile banking and so relatively easier to persuade to adopt mobile banking.
Others have just worked hard. The rising tide of mobile Internet adoption is not raising all boats at equal speed. Some banks have persuaded far more of their customers to use mobile banking than others. The secret of their success? The digital banking teams at the most successful banks have worked long and hard to design, build and promote mobile banking services that meet their customers’ needs.
Executives at digital businesses cite a wide variety of challenges when expanding globally, but “finding the right talent to run our organization” inevitably factors high on their lists. Yet despite the extensive preparation that goes into international expansion efforts, it’s rare to find companies staffing up far in advance of these initiatives. Some thoughts for digital organizations with increasingly global aspirations:
Think international – even before you are. It’s common to hear of multinational corporations thinking globally when creating content. For example, by avoiding website or marketing content that includes numerous local references, it becomes easier to translate that content into other languages. Executives need to extend this idea of early preparation from content to people as they staff up their teams: If digital leaders know they want to operate in multiple markets going forward, they need to start building teams with global knowledge well before they start their international expansion.
Hire candidates with international experience across the organization. Companies do not need to hire global talent with the sole purpose of contributing to international expansion. To the contrary: Many digital businesses bring in employees with strong language skills and knowledge of different global markets to work in a wide variety of capacities within the organization. A more globally experienced workforce can provide more diverse insights – additionally, as international markets rise in importance, those organizations that have hired and mentored employees with knowledge of these markets will be better positioned for success later. Some smaller vendors, for example, were able to establish a foothold in emerging markets relatively quickly by relying on executives with existing knowledge of these countries to guide their market entry strategies.
Is it me or my expectations? My mobile travel applications have only improved over the past 12 months (and I mean this sincerely), but my disappointment has never been so acute. Why? My expectations have never been higher. I access information more frequently (see Ted Schadler's and John McCarthy's Engagement report -- they quantify this), and I expect more accuracy. In the absence of tethering my computer or tablet to to my mobile-phone-turned-hotspot (difficult on the move), I turn to my mobile phone for services. "Immediacy" is what makes mobile so valuable. If I can't get real-time, accurate information on the go, then how useful are the mobile services?
11. (an extra) When I use the mobile app to add the boarding pass to Passbook, why does only one of two boarding passes go there when I have a connecting flight?
10. I uploaded an update to the loyalty program from the hotel chain. It deleted all of my account information. Awesome. Really guys?
9. I searched the mobile app, mobile web, and full web for a way to recover my account number - not possible in my 10 minutes of searching. Only possible to get password.
8. I called customer service (hotel brand) while sitting on the plane to get my account number. They asked me to state my password out loud (while on the crowded plane). I gave them the password, and they told me it was incorrect. They proceeded to ask for all of my additional security information (e.g., mother's maiden name). "We have these rules in place to protect your privacy and ensure the security of your account." I'm thinking, "My hotel frequent stay account??? It's easier to get my user name and password from my bank!!" Terrible user experience.