• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
The First Congress of E-commerce Directors: Transformation required: eCommerce to become the commerce (IDC)
 

The First Congress of E-commerce Directors: Transformation required: eCommerce to become the commerce (IDC)

on

  • 76 views

 

Statistics

Views

Total Views
76
Views on SlideShare
76
Embed Views
0

Actions

Likes
1
Downloads
3
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    The First Congress of E-commerce Directors: Transformation required: eCommerce to become the commerce (IDC) The First Congress of E-commerce Directors: Transformation required: eCommerce to become the commerce (IDC) Presentation Transcript

    • Transformation required: eCommerce to become the commerce Mark Yates 13 March 2014
    • Agenda  Irresistible force: internet, smartphones, expectations?  New competition: price aggregation and showrooming  Paradigm shift: same-store to same-shopper sales  Customer shopping cycle: going omni  Delivery and success: UK all the way  Final thoughts on getting there first 3
    • IDC: Getting Data to Reveal IT’s Secrets Turkey UAE Saudi Arabia Kuwait Qatar Oman Bahrain Lebanon Syria Iran Jordan Israel Rest of ME Albania Austria Azerbaijan Belarus Belgium Bosnia & Herz. Bulgaria Croatia Cyprus Czech Republic Belgium Denmark Estonia Finland France FYROM Germany Georgia Greece Hungary Ireland Italy Kazakhstan Egypt Morocco Algeria Tunisia Libya Ghana Kenya Uganda Nigeria Namibia Ivory Coast Ethiopia Tanzania Botswana South Africa Rest of Africa Middle East/AfricaEurope  Offices in more than 30 Countries  Research coverage of 75 countries  130+ analysts making it happen Kyrgyzstan Latvia Lithuania Malta Moldova Montenegro Netherlands Norway Poland Portugal Romania Russia Serbia Slovakia Slovenia Spain Sweden Swizterland Tajikistan Turkmenistan Ukraine United Kingdom Uzbekistan Rest of Europe
    • Permanently changed ecosystem  Ongoing trends • Risks from economic cycles • Profit pressure • Social unrest in EMEA  Transformative trends • Changed competitive landscape - intl retailers moving into PL - PL retailers expanding and upgrading • Localization strategies • Social commerce • Online and mobile commerce For example ...
    • Poland solid but still bumpy 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 2010 2011 2012 2013 2014 2015 Poland GDP growth (%)
    • Retail Performance Indicators 4 0 200 400 600 800 1000 1200 1400 2010 2011 2012 -35 -30 -25 -20 -15 -10 -5 0 2008 2009 2010 2011 2012 2013 2014 Consumer Confidence* Retail turnover – current prices Retail turnover – constant prices Retail turnover People are spending With bad attitudes *January stats Source: GUS, 2014
    • Irresistible force: Internet Global Internet penetration 2000 and 2013* ~5% ~39% * 2013 is an estimate. Source: ITU, June 2013
    • 61 0 20 40 60 80 Romania Bulgaria Italy Greece Portugal Cyprus Poland Croatia Spain Lithuania Malta Hungary Latvia Slovenia Czech Republic EU Average 0 20 40 60 80 100 Slovakia Ireland Estonia Austria France Belgium Germany United Kingdom Finland Denmark Luxembourg Netherlands Sweden Norway Iceland % of people with Internet access at home, 2013 Source: Eurostat, Feb 2014 Irresistible force: Internet
    • 0 20 40 60 80 100 Belgium Slovakia Iceland Ireland EU28 Austria Malta France Netherlands Finland Luxembourg Germany Denmark Sweden Norway UK 0 10 20 30 40 50 Romania Bulgaria Estonia Italy Lithuania Cyprus Hungary Portugal Greece Croatia Latvia Czech Republic Spain Poland Source: Eurostat, Oct 2013 % of internet users that used internet in past year for purchasing, 2012 Irresistible force: Internet and shopping
    • 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Total % that shop onlineClothes and sporting goodsTravel and holiday accommodationBooks, magazines, elearningFood and Groceries 2008 2012 Source: Eurostat, Oct 2013 Poland: % of Internet users shopping online in past 12 months) Quick bit of math 47% shop online x 61% w/home access 29% total population in 2012 Some surveys put this much higher, at up to 55% Irresistible force: Internet and shopping
    • Irresistible force: smartphones 0 500 1000 1500 2000 2500 3000 3500 2010 2011 2012 2013 2014 2015 2016 2017 WW smartphone installed base 1 in 6 1 in 3 Source: IDC, 2013 In Poland in 2012: ~1 in 4.2 In Poland in 2013: ~1 in 3.4
    • New competition: price visibility • Immediately shows prices at different stores • Often used before shopping at stores • Increasingly used within stores (showrooming) • Higher margins often not offset by opportunity costs
    • Percent of shoppers that admit to showrooming (UK) 40% Factor by which mobile coupons are redeemed 10 compared to traditional paper coupons (US) Percent of smartphones owners that have 24% taken pictures of products while shopping (EU) Percent of shoppers smartphones owners that have 14% sent pictures of products while shopping (EU) Approximate number who make purchase in store >half after researching a product online (NA) Percent of showroomers older than 40 years 48% New competition: showrooming Dozens of studies paint the same picture: clicks and bricks overlap Source: IDC, Google, Harris, Nielsen, Accenture, eConsultancy/Buy Desire, 2013 and 2014
    • 14 New competition: social media Bulletin Board system <<70/80s 1990 2000 2010 Blogging begins No one can hide poor products or services
    • The “New User” Many users are aware that behind the scene (or screen) are massive databases and algorithms – but they do not see it or feel it day to day Screening – Smart phones – – POS terminals – – Thin clients – – Check-ins – – Tablets – – ATMs – – PCs – – TVs – – etc – Interacting – with each other – – with technology – – with biz & govt – – with brands – new symbiosis blurring lines between self & technology Predicting – commercial sites – – parking spaces – – meteorology – – government – – healthcare – – telecoms – – finance – – retail –
    • Paradigm shift – love thy customer Same Store Sales Same Shopper Sales Where do we appeal to the “same shopper”?
    • Facebook In-store kiosk Review sites Coupon sites Click to chat In-site reviews Loyalty schemes Online store Main social Blogs Online deal sites Algorithms Twitter Email Twitter Email In-site review Review site Main social Blogs Mobile app Online store Mobile app This is creating a new type of shopper. Start Browse Research Discount/ Reward Transact Follow- up Paradigm shift – love thy customer
    • The Omni-channel shopper Start Browse Research Discount/ Reward Transact Follow- up
    • Receives client-specific promo when entering store Expects preferred items to be in stock Can research inventory while browsing Checks reviews online while examining options Scans barcodes to download coupon Expects store employees to answer questions Expects store to “remember them” That’s a lot of work, why do it? The Omni-channel shopper
    •  50-70% more spend than single-channel shoppers (US, UK)  45-60% choose retailers because they can buy online and return in stores (U.K, U.S., Australia, Brazil, France, Germany and Japan)  Around 40% shopping time done online (US,UK)  45% of shoppers will use any channel available and 75% will return if given great service (U.K, U.S., Australia, Brazil, France, Germany and Japan)  20%-35% reduction of store systems TCO (when implementing centralized store system architecture) (Intl)  Better data collection for analytics  Optimized future product planning Any examples? The Omni-channel shopper Source: IDC, Zendesk, eComerce.shopatron, AT Kearney, 2013 and 2014
    • Theme & variation – Korea 3 years ago!
    • Theme & variation – loyalty evolution
    • Theme & variation – making it easy
    • The keyword: integration  Get online. If online, make it better - optimize website for mobile devices - introduce multiple payment options - integrate online back-end with store systems  Pilot basic multi-channel services - loyalty program in-store and online (see below) - click-and-pick-up (see below)  Integrate POS and online view with inventory/SCM - put store and warehouse inventory online - ensure rapid delivery between the possible - train staff to offer 5-star, multichannel service  Rethink infrastructure management to optimize usage and reduce costs (e.g. perhaps via cloud)  Leverage and integrate mobility platforms and access (for internal staff and customers) Specific steps will depend on store size, location, number of outlets, current infrastructure and software. But generally speaking… And weave in the analytics
    • Shopping history Location (via IP) Content relevance The keyword: integration
    • Final thought – put customers first Appoint a customer experience leadership team; make the effort to have all staff be customer-focused rather than product focused.
    •  Mark Yates  Lead Analyst  IDC Insights  myates@idc.com  +420 221 423 208 Thank you 19