The Online Retail Market In India Will Reach $75 Billion By 2020

Satish Meena

The retail market in India is going through a very interesting phase. Online retailers are flush with funds and spending aggressively on acquiring customers and building infrastructure, while organized retailers are trying to come out of their “wait and see” mode before online sales start hurting them in categories other than music, books, and mobile phones. The Indian online retail market is the fastest-growing market in Asia Pacific, although it is still very small compared to China and Japan. According to the recently published Forrester Research Online Retail Forecast, 2015 To 2020 (Asia Pacific), we expect it to grow at a CAGR of 44% from 2015 to 2020 to reach $75 billion. We also predict that:

  • The influence of the Web on retail sales will increase. Less than 2% of total retail sales in India are online, but the Web’s influence is much bigger. Customers are using the Internet to research products (even when they are shopping in physical stores); to compare prices with online retailers; to check specifications; and to read user reviews. This is making the Web a powerful medium, one that organized retailers can’t ignore. As such, we expect to see organized retailers undertaking more online activities in 2016.
Read more

The Data Digest: What Do You Want?

Anjali Lai

Many times, what we want says more about us than what we do. This is why readers are fascinated with news from the Consumer Electronics Show, which gives us an aspirational glimpse at the technology of tomorrow. This is why Google publishes the most frequently searched “how-to questions,” which reveal what people are striving for. It’s also why emerging customer insights methodologies like social listening, which uncover visceral consumer reactions and desires, are gaining traction.

Two weeks ago, people around the world expressed their wishes for 2016 by sharing their New Year’s resolutions online. What do people want this year? Forrester’s analysis of the social conversation shows that physical and mental wellbeing dominated most of the resolutions posted across the globe. But certain geographical differences shed light on varied cultures and attitudes. For example, while US consumers also discussed social causes and career goals, UK consumers mentioned artistic pursuits and relaxation:

 

 

Read more

The Data Digest: A Happy New Year!

Anjali Lai

The market research industry is built on a fundamental assumption: that any enterprise, product, team, or person can be better than it is today. Researchers mine insights because we are constantly seeking opportunities for greater success and are eager to illuminate the path forward. But researchers aren’t the only ones doing this; although it’s our profession, people around the world share this drive for improvement. These sentiments are at their peak today on New Year’s Eve as we reflect on the highs and lows of the year behind us and resolve to do something better in the year ahead.

Seeking improvement is part of human nature, but in some cases, it’s demanded of us. In the business world, companies that set higher standards also set new consumer expectations and secure customer loyalty. For instance, our Consumer Technographics® data shows that Amazon offers one of the most loved customer experiences across the globe because it provides an unparalleled sense of emotional satisfaction: 

Read more

The Data Digest: May The Force Be With You

Reineke Reitsma

Unless you’ve been hiding under a rock, you’re probably aware that there was a new release in the Star Wars saga this week. I’m not a fan of science fiction and have somehow managed never to have seen a Star Wars movie in my life — so all of the discussion about what will happen to Luke, Leia, or the Jedi in ‘The Force Awakens’ is completely lost on me. But what I do find extremely interesting is the huge passion of my colleagues and friends to see this movie in a cinema — and as quickly as possible. In the US, Star Wars opens in 4,100 theaters and the movie is a leader in advance ticket sales around the world. And Star Wars is just one of the big blockbusters of 2015 — in fact, analysts expect this year to be Hollywood's biggest box-office year ever.

When we look at our North American Consumer Technographics data, we see that movies certainly have a place in US online consumers’ video behaviors; watching movies in theaters is just behind watching free and paid online video services like Netflix and Hulu.

Read more

The Data Digest: Television Without The TV Set

Anjali Lai

A week ago, my family crowded around our living-room TV to watch the Macy’s Thanksgiving Day parade, and I couldn’t help thinking about the ironic clash between tradition and innovation: On the one hand, we mirrored that classic tableau of the family gathered around a single source of entertainment; on the other, our smart TV offered a distinctly modern viewing experience.

This fine balance between tradition and innovation is widespread — especially in regards to the evolution of TV media. Our Consumer Technographics® data shows that US consumers’ love for TV is unwavering, but the ways in which viewers access content are rapidly changing. Streaming services like Netflix and Amazon Prime have been catalysts for this change; now Comcast’s recently launched Stream TV opens a new avenue for TV consumption that lives somewhere between cable and Internet properties. With Stream TV, Comcast is targeting a growing group of TV lovers who don’t actually have a TV:

Read more

The Data Digest: Evolving Consumer Attitudes On Privacy

Anjali Lai

Back in 2013, we conducted a study to figure out how the “summer of Snowden” was affecting consumer opinion on privacy. A year later, we combined that data with a current pulse of consumer sentiment, and found that mainstream attitude signaled imminent behavior change.

Fast forward another year: Today, US presidential candidates are talking about privacy and personal data protection during the pre-primary season. We have recently witnessed three more major data breaches affecting millions of Americans. The adblocking debate is at fever pitch, while Internet giants make privacy a point of differentiation. So, we ran our study a third time, and incorporated behavioral tracking data into the methodology.

Our findings? Consumers are more willing than ever to 1) walk away from your business if you fail to protect their data and privacy; 2) adopt technologies like tracker-blockers and VPNs to limit their exposure to data misuse; and 3) extend their protective actions to the physical realm. And, Forrester’s Consumer Technographics® data shows that this story pertains to millennials and their older counterparts alike:  

Read more

Holiday Shopping Moves Online — In Both Western Europe And The US

Michael O'Grady

In Western Europe, November and December account for a fifth of annual retail sales. However, consumers aren’t spending more over the holiday period; they are just shifting their spending earlier in the shopping season. Forrester expects European online sales over the holiday period to grow 12.5% compared to 2014. In the UK, heavy discounting, notably as a result of Black Friday and Cyber Monday promotions, has a huge impact on holiday shopping.

  • Holiday spending is of critical importance to retailers. In 2014, Amazon traded one-third of its retail sales in the last three months of the year. And in the UK, 19% of annual retail sales happen in the six-week run-up to Christmas. Consumers spend more online during the holiday period and buy from more retail categories than they do during the rest of the year. Toys, jewelry, perfume, and videos are among the most popular categories bought online.
  • UK retailers embrace Black Friday and Cyber Monday. The majority of UK retailers participated in Black Friday and Cyber Monday sales in 2014. In fact, nearly one-fifth of all online sales in the eight weeks leading up to December 27, 2014 happened in the week of Black Friday. And for UK retailer John Lewis, its sales in Black Friday week overtook its sales in Christmas week.
Read more

The Data Digest: Opt Out Of Reading This Post

Anjali Lai

I always love this time of year. Here in Cambridge, Mass., we’re at a turning point: With the close of the World Series and the start of daylight savings, we face the reality that evenings are colder, nights come faster, and the holidays are imminent. With summer escapes behind us and holiday shopping ahead of us, recent media stories made me think about one phenomenon that does not change with the seasons: the relentless efficacy of advertising.

For example, REI’s latest ad, which urges consumers to forego Black Friday, may look like commercial suicide at first glance, but don’t underestimate the effects of an unexpected message. Forrester’s Consumer Technographics® data shows that while ads may not directly spark a purchase, they immediately enhance awareness and can spark consumer behavior that subsequently drives consumption:

And this data only quantifies the advertising effects of which consumers are aware; more often than not, advertising has a deeper, subconscious impact on consumer behavior and attitudes.

Read more

Examine Mobile Pathways To Understand The Context Of Your Customers’ Mobile Moments

Nicole Dvorak

An alarm sounds. My phone is telling me to get up. I move through my morning routine; I check my email app, then my weather app. Finally, I get out of bed. As I walk to work, I browse the mobile Web for nearby bakeries. I need to order some cupcakes for my friend’s birthday party . . . tonight. I get side-tracked when I find a bakery that offers maple donuts – I love maple donuts. I suddenly remember that I’m tasked with bringing breakfast for our family Thanksgiving this year. I put a reminder on my calendar app.

Each time I pick up or look at my mobile phone to find an answer to a question, I have a mobile moment. This month, the 30 different apps and 100 mobile websitesI visit will amount to hundreds of mobile moments. How do I navigate from one mobile moment to the next? How do smartphone owners transition between communicating, consuming media, shopping, paying bills, and posting memories? Charting consumers’ behaviors across mobile sites and apps is what Forrester calls mobile pathway analysis. Using our behavioral tracking data collected from consumers’ smartphones, Forrester is introducing this new analysis to help brands understand their customers’ context when navigating to and from their brand’s apps and mobile websites. Context is key, as reported by my colleague Julie Ask in her recent speech at Forrester's Digital Business Forum last week.

In this analysis, we help you answer five mobile pathway questions:

Read more

The Data Digest: Window Shopping: Now A Popular Activity On Tablets

Nicole Dvorak

If you’ve noticed fewer window shoppers on the streets lately, it may be because they’re at home window shopping from their couches; that is, they’re discovering and exploring products without necessarily intending to purchase.

For our 2015 US Mobile Landscape report*, Forrester analyzed mobile audience data from our behavioral tracking panel to understand how consumers use smartphones and tablets in 2015. We found that although professionals often group both devices under the “mobile” umbrella, consumers use smartphones and tablets in very different ways. One notable difference centers on mobile commerce: While smartphone commerce is still struggling to get traction, for tablets it’s already one of the most common activities. In fact, Forrester’s US Mobile Phone And Tablet Commerce Forecast, 2015 To 2020 shows that total tablet retail purchases more than double those made on a smartphone.

Our behavioral data shows that in the first half of 2015, 68% of tablet owners visited a shopping site at least once in a given month — that’s more than the number who visited news/media, TV/video, or even social networking sites! And these tablet shoppers aren’t just visiting Amazon.com. Only about half took to Amazon —the other half visited other online shopping websites that fit their interests, brand preferences, and lifestyle.

 

Read more