Amazon India And Flipkart Are Betting Big On India eCommerce Growth

Jitender Miglani

Last week, two news items captured the front-page headlines of the Indian financial newspapers. The first was an announcement by Flipkart on July 29 that it has raised fresh capital of $1 billion in one of the largest funding rounds. The second was an announcement by Amazon on July 30 that it will invest another $2 billion in India. These numbers appeared large to us when seen in the context of overall online retail sales in India. As per the Forrester Asia Pacific online retail forecast published in early October 2013, India’s online retail spending was expected to reach $2 billion by the end of 2013. We believe that the pace of eCommerce in India picked up faster than our expectations during the past 12 months and these companies would have witnessed very strong growth. According to Amazon, at current scale and growth rates, India is on track to become the fastest country ever to reach $1 billion in gross sales. It is important to note that Amazon launched India operations in June 2013 only.

These events raised many interesting research questions for us. We will try to address them as we work toward updating our APAC online retail forecast for the years 2014 to 2019. The two most important questions relate to the number of online buyers in India and the mobile commerce opportunity in India.

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Not Your Parent's Order Management System

Adam Silverman

Last week Peter Sheldon and I published The Forrester Wave TM: Omnichannel Order Management, Q3 2014 report, assessing order management vendors targeting omnichannel businesses.  Compared to our 2010 Forrester Wave on order management hubs, this new stream of research addresses the heightened requirements that order management systems (OMS)  must now help broker and fulfill orders across all distribution centers as well as physical stores. Based on our research many retailers are seeing a significant lift in online sales by enabling all inventory in the enterprise to be sold.  The omnichannel OMS applications evaluated in this Wave differ from our 2010 evaluation because:

  • Inventory transparency is a priority. In a world where digitally enabled customers expect to find and purchase products from any touchpoint, inventory visibility is now a requirement for OMS applications. The OMS today is responsible for consolidating and maintaining inventory positions from various systems including WMS, eCommerce and even from the supply chain. This consolidated, enterprise view of inventory is made available to customers in near-real time, affording shoppers the best opportunity to have their needs met regardless of the whereabouts of the product.  
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A European Market For Social Media? Does Not Exist

Ryan Skinner

An agency head told me how he was on a call between the European head of marketing for a US brand and that brand’s board of directors. The chairman asked the marketing honcho, “How is the European market?” The marketer answered, “There isn’t one.” Awkward silence. “That is, there is no European market. There is a French market. A German market. A British one. And so on. I can tell you about those.”

In no other sphere of marketing are these national differences magnified more than in social media. Social media is, by its nature, participatory and thus takes on the form, tone, and color of its users. Social media in Germany is German social media. In France, French social media.

Then brands enter the picture. That social media strategy hatched in Dallas or Dublin, with a sum earmarked for translations, will not cut it.

Three reasons cookie-cutter strategies will fail in Europe:

  • Europeans as a broad group are less likely to engage with brands on social media than, say, in the United States or metro Hong Kong.
  • Europeans’ usage differ significantly country to country; Italians usage is not comparable to German usage.
  • Each market boasts strong local players that excel at the intricacies of their market’s social media usage.
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Digital Disruption Is Happening In Financial Services, You Get It. Now What?

Oliwia Berdak

Over the past year, we’ve told banks that some of them would become custodians. We’ve told insurers that many of them would be forced to specialise. We’ve told wealth management firms that many would shrink. We’ve done this to show them how digital disruption could savage retail financial services, just as it has done with the music and publishing industries.

But we don’t want to be just the bearers of bad news: We want to help you deal with new players like peer-to-peer lending platforms and even Google entering retail financial services. And to be fair, it’s not all bad news. There are plenty of companies out there using digital innovation to meet their customers’ financial needs in new and better ways. Take for example BBVA which has brought its customers the virtual assistant Lola, video banking, and the crowdfunding platform called Suma. And BBVA hasn’t stopped here. The Bank is currently running the sixth edition of its Open Talent competition for start-ups most likely to affect financial services.

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When a Dilemma Becomes a Polylemma

Rusty Warner

In the age of the customer, customer insights (CI) professionals must invest in software solutions that will help them orchestrate contextual marketing.  However, as outlined in Cory Munchbach’s report Let’s Revisit the Enterprise Marketing Technology Landscape (Again), the market is in a state of flux.  Not only are we seeing tremendous M&A activity, but a constant stream of new vendors is flooding an already crowded space with innovative solutions. 

How does the CI pro responsible for marketing technology buying make an informed decision when faced with so many options?  Well, to quote Ron Davies (feel free to summon the voices of Three Dog Night, David Bowie or Shelby Lynne, if you prefer), “It Ain’t Easy!”  To help CI pros with their decision-making, my latest brief The Marketing Technology Buyer’s Dilemma provides advice on how to maintain customer focus while navigating market changes.

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Customer Experience Q&A With Louise Long, Head of Customer Experience, NAB

Michael Barnes

As customers we’re rarely satisfied with simply buying goods and services. What we really want, on top of the actual purchase, is a great customer experience (CX). This drives us to seek out companies that not only understand our wants and desires but more importantly, understand the role their company’s products actually play in our lives.

Nowhere is this more true than in the hyper-competitive Australian retail banking market. That’s why we invited Louise Long to speak at Forrester’s Summit For Marketing & Strategy Professionals: Australia. Louise is Head of Customer Experience at National Australia Bank (NAB), leading the company’s initiatives to deliver truly great customer experiences to NAB’s clients.

Louise was kind enough to answer a few of our questions about what she’s doing. Read on for insight into how NAB continuously seeks innovative ways to ensure that the customer remains at the center of the company’s business strategy.

Those of you who’ll be with us in Sydney on Wednesday, August 13th, can hear even more from Louise. I look forward to seeing you there!

Q: When did your company first begin focusing on customer experience? Why?

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The Digital Money Management The People Want

Stephen Walker

We at Forrester believe Digital Money Management, often referred to as Personal Financial Management (PFM), is the future of digital banking. But as we find in our new report, The State Of Digital Money Management 2014, available here, it doesn't appear to be the present. Fewer than 22% of customers in the US and Europe have used a single money management feature in the last 90 days.

Why? It's simple: most people just don’t want to manage their money. They don’t want to budget, as in doing any work. They don’t want insight, beyond one or two bite size chunks. And they don’t want to save. They may think they want to, so they’ll set up a savings goal, but most won’t stick with it. Even if they do, it's not about the saving. It’s the buying – that’s the thing they actually want to do. 

Even with today's money management, I suspect many of the best users actually spend more, not less, as a result. Few banks measure this - and that's another blog - but it's an instinct I know some clients share. When customers have more transparency around their options, they feel empowered to buy more.  

Those users who have no choice but to save often find money management too depressing and give up. Efforts to gamify money management, to make it social, or send “you should save” reminders just alienates them further - the digital equivalent of that unopened bill reminder in the post. 

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eCommerce Evolution In Brazil

Zia Daniell Wigder

Many brands eyeing Latin American eCommerce markets look first to Brazil, and with good reason. Brazil is Latin America’s largest online retail market by a wide margin and growth rates remain high: Our forecast shows the market growing by a CAGR of 18% to reach $35 billion in 2018. 

As in every fast-growing eCommerce market, however, companies that compete in this environment face numerous challenges. Issues like complex tax navigation and the long path to profitability are well documented. In addition, companies need to prepare for shifts in what consumers buy online and how they make these purchases. The dynamics of online shopping are shifting.   

Our report published today on The Evolution Of eCommerce In Brazil (client access req’d) discusses five trends that will impact the online retail market in the country. While these same trends will play out in many markets around the globe, our report dives into how and when we expect to see shifts in Brazil. 

For example, in Brazil:

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The Evolution Of Consumer Attitudes On Privacy

Fatemeh Khatibloo

With Anjali Lai

The tide is turning on privacy. Since the earliest days of the World Wide Web, there has been an increasing sense that the Internet would effectively kill privacy – and in the wake of the NSA PRISM program revelations, that sentiment was stronger than ever. However, by using our Forrester’s Technographics 360 methodology, which blends multiple qualitative and quantitative data sources, we found that attitudes on privacy are evolving: Consumers are beginning to shift from a state of apathy and resignation to caution and empowerment.

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The Data Digest: The Evolution Of Consumer Attitudes On Privacy

Anjali Lai

With Fatemeh Khatibloo

The tide is turning on privacy. Since the earliest days of the World Wide Web, there has been an increasing sense that the Internet would effectively kill privacy – and in the wake of the NSA PRISM program revelations, that sentiment was stronger than ever. However, by using our Forrester’s Technographics 360 methodology, which blends multiple qualitative and quantitative data sources, we found that attitudes on privacy are evolving: Consumers are beginning to shift from a state of apathy and resignation to caution and empowerment.

In our recently published report, we integrate Forrester's Consumer Technographics® survey data, ConsumerVoices Market Research Online Community qualitative insight, and social listening data to provide a holistic view of the changes in consumer perceptions and expectations of data privacy. In the past year, individuals have 1) become much more aware about the ways in which organizations collect, use, and share personal data and 2) have started to change their online behavior in response: 

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