eCommerce growth continues unabated around the world, with eCommerce being cited as a driver of overall economic growth in markets from China to Nigeria. Indeed, online retail revenues continue to soar in every market that we forecast—China alone will generate more than $1 trillion in eCommerce sales by 2019.
As eCommerce markets in different parts of the globe flourish, a growing number of digital business leaders are being asked to take their brands into new markets. What opportunities exist for eCommerce leaders looking to expand internationally? How are they tapping into these opportunities? Our newly updated report (client access req’d) addresses these questions. We find that:
Mobile World Congress (MWC) is “the” event in mobile. It is the event where Samsung, HTC, Huawei, Sony, Microsoft, LG … well, really everyone (but Apple) will launch new mobile phones, tablets, and wearables. And, yes big-screened mobile phones are still “in.” I’m more likely to buy a leather jacket with bigger pockets or a larger purse than to buy a smaller phone.
Thousands flock to Barcelona annually to hold these devices in their hands. Words too often fall short in describing the feeling of holding the next Samsung device in your hand or the emotions of delight and bewilderment when you turn the device on.
The question then is: “So what? What does it mean for my company?”
Two things matter in mobile: audience and data. SnapChat has audience.
Audience matters because consumers are using fewer and fewer applications on their mobile devices. Brands can no longer pursue a “destination” strategy and expect consumers will come to them. They need to go engage consumers where they are. Facebook’s acquisition of WhatsApp for $19B gave us a sense of just how valuable audience depth, reach and usage is.
Data matters because it helps us simplify or improve mobile experiences by anticipating the needs of customers or to improve the value of advertising - if you are monetizing your app that way. Under Armour just paid $475M for MyFitnessPal for the audience, food database and personal data.
Reviewing online functionality for a selection of key European online only retailers, I am struck by a shift. With the basics of purchasing and navigation nailed down, the devil is now in the detail of implementing online functionality for apparel retailers – particularly those that are online only. Now we are seeing both subtle and overt efforts to improve merchandising and remote clienteling online proactive live chat, 2D size guides, personal shopping style guides and ‘compete the outfit’ suggestions on product pages.
To get to the next level of best practice and differentiation online apparel retailers need to keep refining their website functionality in order to succeed in a competitive and increasingly crowded category. Empowered customers are using multiple devices to shop online helping to drive forecasted online retail sales growth of 12% in Europe (2013 to 2018). To secure their chunk of this growth, online apparel retailers need to constantly evaluate, test and implement new and improved functionality to support merchandising and drive consumers through the path to purchase.
Instacart’s recent $2 billion valuation suggests many believe same-day delivery to be the next standard for fulfilling online orders. Online and mobile food ordering service GrubHub recently showed its commitment to delivery by announcing the acquisition of two players in the food delivery space, DiningIn and Restaurants On The Run. Amazon, too, has been expanding its already robust same-day (and same-hour) delivery initiatives in an effort to compete with the immediacy of in-store shopping, and a number of large multichannel retailers have followed suit in the hopes of beating Amazon at its own game. But can same day delivery models be used efficiently in retail without having a negative impact on profitability? Despite the hype and flashy headlines, the business case for same-day delivery remains largely uncertain—and key questions such as, “Will customers use it?” remain unanswered.
I spent Tuesday and Wednesday of this week at Finovate Europe. As always, it is a great way to spend two days thinking about digital financial innovation and how firms can deliver better experiences for their customers. Here are a few of my impressions from the two days:
Biometrics is becoming mainstream.We barely raise an eyebrow when shown authentication processes by firms like eBankIT, ID Mission, Jumio, Nice Systems and Wipro that use facial recognition, fingerprints or voice recognition because these technologies now seem almost commonplace. Yet the technologies are hugely impressive and far advanced on what was available or even possible a decade ago.
Future generations will pay differently. The credit card is one of the greatest financial innovations of all time. Yet, despite the various card innovations on show, I cannot rid myself of the belief that plastic cards will one day soon start to seem as quaint and outdated as cheques (and, indeed, business cards). There are many big obstacles on the path to mainstream mobile payment adoption, and payment habits take decades to change, but I don’t think the future is bright for plastic cards.
Having just watched 72 demos at FinovateEurope, I can confirm that digital financial innovation is alive and kicking. Over the last couple of days, I have seen a number of inspiring solutions to deal with some of the most difficult problems facing financial services today. The main themes at Finovate this year included simplifying and lowering the cost of payments, improving authentication and customer onboarding, using data to generate new value for personal and business bank customers, and making bankers more productive and efficient through, for example, artificial intelligence technology.
Digital executives at financial firms are taking note – the audience was packed with executives from Europe’s main banks. And rightly so. To be innovative, banking executives need ideas, data, technology, software development skills, design experience, and change management support. Often, they can't source these components internally in a timely and cost-effective manner. Partners such as innovation agencies, systems integrators, startups, adjacent firms, and even competitors can help them add capabilities quickly. This is prompting the rise of ecosystems of value – a key feature of digital business transformation. By utilizing partners' digital assets, ecosystem participants are able to hone their products and services fast and furiously — in essence, out-innovating the competition.
We are looking for a new analyst or senior analyst to join our eBusiness and channel strategy team, based in either London or Amsterdam. We're looking for someone with an analytical mind, good communication skills, a clear perspective on the future of digital financial services, and experience of the complexities of retail financial services and of different European markets to help our clients make great business decisions, shape their firms' strategies and lead change.
If this sounds like you, or like someone you know, please see the full details in the job description.
Today’s technology-immersed customers have high expectations when it comes to the retailers they engage with. Not only do they expect their retailer of choice to offer an endless array of products that can be fulfilled from any location within the enterprise, they also expect a more fulfilling and connected experience both online and in the store. In order to meet these higher expectations, organizations that sell directly to customers must pivot to become digital businesses, and this transformation requires them to double-down on their investments in people, process, and technology. As the complexity and importance of commerce technology swells,
B2C organizations are increasingly seeking out the help of Global Commerce Service Providers to not only implement commerce technology, but to help their organization refine business processes and create innovative omnichannel experiences.
Black Friday has been a constant feature in the postmortem of the 2014 UK holiday sales season. It has gradually extended its influence across the Atlantic over the years; despite having no cultural significance outside of the US (Black Friday is a sales day that traditionally follows the US Thanksgiving holiday). Retailers in France, Germany and Spain tested the waters with Black Friday promotions in 2014. But it was in the UK where Black Friday sales surged to new heights.
UK retailers who embraced Black Friday reported massive sales uplift on the day. Department store House of Fraser recorded a 125% increase in year on year sales while Very.co.uk saw orders jump 134% compared to Black Friday 2013.Yet, for most, this uplift did not translate to an overall sales increase or the holiday season.
Black Friday Has Changes The Cadence Of Holiday Sales. Black Friday has arrived in the UK with a bang, but for most eBusiness executives it hasn’t driven a massive sales uplift. Instead, it’s pulled customer purchasing forward in the holiday season, leaving like-for-like sales reasonably static.