Join Our eBusiness Team! We’re Hiring A Principal/Senior Analyst Focused On eCommerce Technology

eCommerce technology is a fast-growing, rapidly evolving industry – we’re looking for a Principal/Senior Analyst to help build our coverage of this incredibly dynamic area. 

Here’s a quick snapshot from the job description:

The Principal/Senior Analyst will write for, present to, and advise eBusiness & Channel Strategy Professionals in the retail, wholesale, and CPG industries to help guide their eCommerce and other multichannel commerce technology decisions. He/she will need a strong understanding of the business and technology issues facing eBusiness executives today and an appetite for conducting and writing research to stay abreast of the issues.

If this is you, we’d love to hear from you! Please feel free to reach out directly to me at zwigder at forrester dot com or submit via the job posting

The End Of A Long Week In eBusiness In New York

My colleague Patti Freeman Evans put up a great blog post yesterday about eBusiness efforts post-Sandy. I wanted to finish off the week with a snapshot of the ATM screen I took about 10 minutes ago at my local Chase branch - amazing what a multi-touchpoint world we now live in (I count up to six in this one message alone!).

Wishing everyone a safe weekend.

On eCommerce In South Africa And Beyond

I recently had a chance to catch up with another global eCommerce enthusiast: Hendrik Laubscher works for PriceCheck, a price comparison site in South Africa owned by MIH Internet Africa. He and I sat down for a coffee to talk all things developing eCommerce markets. A few things that came out of our conversation:

In South Africa, payments and broadband connectivity remain hurdles to eCommerce adoption. South Africa, the continent’s largest eCommerce market, remains at a relatively early stage, with several inhibitors preventing the market from truly flourishing.  Although credit and debit card usage is growing, overall penetration remains low, even in comparison to other large emerging markets. PayPal offerings have been a challenge, as well — currency issues and restrictions that required users to be registered FNB online banking customers prevented many from taking advantage of this payment method.  Additionally, the country’s low overall Internet penetration — in particular, broadband penetration — also presents hurdles. The CEO of Woolworths in South Africa recently said that faster, cheaper broadband was essential for eCommerce to flourish, but estimated that this scenario remained “about four years off.”

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Trends In India's eCommerce Market

Together with our colleague Manish Bahl in Forrester’s New Delhi office, we just published our first report analyzing the eCommerce landscape in India. The report looks at the changing demands of the online shopper in India and the way in which companies in India are adapting to meet these demands. 

In this report, we note that:

India’s eCommerce market is at an early stage. India’s eCommerce market today is small but growing rapidly. From a revenue perspective, India is on par with other early stage eCommerce markets such as Mexico, while substantially smaller than more mature online retail markets such as Brazil and China.

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Forrester Publishes Its New Online Retail Forecast For Latin America

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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How eCommerce Markets Evolve

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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Observations About eCommerce In Peru

To conduct our global eBusiness research at Forrester, we rely heavily on support from our multilingual group of Research Associates and Researchers. Recently, one of our Research Associates, Lily Varon — whose family originates from Peru — spent two weeks in the country and emailed us with her take on the state of eCommerce. Given that an increasing number of our clients are eyeing the online retail markets of Latin America, I thought it would be interesting to hear Lily’s observations of what’s happening in the region’s sixth-largest economy.

“Here are a few high-level findings from my travels:

Consumer adoption of online shopping in Peru remains low. The lack of online shopping is largely due to the fact that it’s just not customary, but also due slightly to the fear of putting personal financial information on the web. Retailers are encouraging consumers to overcome these barriers by prominently displaying payment and security information on the website, as well as educational information such as FAQs, step-by-step shopping, and payment instructions or YouTube videos explaining the shopping and checkout processes.

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Selling Luxury Goods To Online Shoppers In China

We just published a report on the online luxury shopper in China, Selling Luxury Goods To Online Shoppers In China. The report looks at the demographic of the online luxury shopper in China and the nature of the online luxury marketplace in China — it also provides advice for brands looking to succeed in this rapidly evolving market.

In this report we note that:

Like all categories online in China, luxury is growing rapidly. According to the World Luxury Association, China is currently the second largest luxury market in the world — it is already clear that part of the demand is coming from online shoppers. In the past few years, a number of the world’s most elite brands have gone online in China. Going online now with a strategic approach will be key to securing long-term market share. 

There are many types of luxury shoppers in China. The online luxury shopper in China spans multiple income brackets and age ranges and lives in both tier 1 and tier 2 cities. Success in this space will mean being considerate of what each of these shoppers is looking for. 

The needs of the luxury shoppers with the most purchasing power are not being met.While a handful of luxury brands have gone live in China with localized sites, today’s online luxury experience is rarely compelling. Additionally, domestic online retailers primarily target online shoppers looking for a deal, with few websites offering sophisticated interfaces. In this report, we look at what is and isn’t being done and what changes will offer the luxury shopper a satisfying online experience.

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A Week Of eCommerce In Brazil

I was thrilled to be back in São Paulo last week visiting with different companies in the eCommerce space. I met with over a half dozen online retailers, as well as other players in the industry including payment providers and market entry specialists. It was also great to have the opportunity to speak at Rakuten’s event on April 24th announcing their official launch in the country.   

Below are a handful of takeaways from the trip:

Online momentum is building in categories such as apparel and beauty. In markets like the US and the UK, apparel represents a significant percentage of total online sales. In Brazil, by contrast, this category is just starting to take off, with online sales currently representing a very small percentage of the total market. As issues such as inconsistent sizing are increasingly addressed, however, and new entrants boost the market, the online apparel sector is set to grow substantially. Likewise, there’s much talk of growing beauty sales in Brazil (the country is set to surpass Japan to become the world’s second largest beauty market) – as with apparel, online beauty sales are a tiny fraction of the total today, suggesting substantial growth opportunities going forward.

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Forrester Releases Its New Asia Pacific Online Retail Forecast

Today we published our Asia Pacific Online Retail Forecast, 2011-2016 highlighting online retail sales in five different markets in Asia Pacific: China, Japan, Australia, South Korea, and India.

Along with providing overall online retail market sizes, we note that:

The combined size and growth of China's eCommerce market are unprecedented. China's online retail market surpassed $100B in 2011 and continues to grow at a breakneck pace — when the US online retail market was the same size as the market in China today, growth was considerably slower. We revised our forecast upward to reflect the fact that online sales continue to increase at a rapid pace, even as the market size swells.

Growth rates in Japan, South Korea, and Australia are more tempered. In contrast to China, online retail sales in Japan, South Korea, and Australia will grow at rates more in line with those of the US and developed eCommerce markets of Europe. However, all three markets are attracting increased investment as a growing number of both domestic and foreign players launch new online offerings in these countries. 

India will grow quickly off a small base. India's eCommerce market, by far the smallest of those covered in our forecast, is poised to grow by more than five-fold by 2016 as the number of online buyers and per capita online spending increase rapidly. This market is gaining more attention as global brands look to markets that are in the early stages of eCommerce adoption but offer significant long-term potential.

Forrester clients can read a summary of the report here.