6 Us Trends Oct 2009


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A presentation of 6 US digital retail trends shared at the Global E-Commerce Summit on Oct 28, 2009, in Monaco. www.e-commercesummit.com.

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  • Who is Shop.org We’re the online retail association in the US Vision – to be the world’s leading membership community for digital retail Nearly 700 members Founded in 1996 Division of the NRF Proud to be co-producing this event with EMOTA – excited about this partnership Thanks to all of the speakers who participated and will be sharing their expertise Especially to those to traveled great distances to be hear so close to the holiday season Shop.org chairman Rich Last from JC Penney will talk more about why Shop.org is involved with this event tomorrow morning
  • Social media is not on this chart Let me explain why? It’s not all that new – we’ve been talking about it for a while I’ll mention it later in the context of cross-channel, where it has the most potential – no evidence of it being a huge driver of e-commerce at this time
  • Enough about the economy. Trend # 3 is cross channel I’ve been in this industry for almost 10 years – for all 10 years e-commerce people have been frustrated by the challenges of being truly cross channel Where going into our 15 th year in eCommerce and the great majority of retailers are only focused on online sales There are so many other contributions the Internet can make to a retail business that aren’t being pursued Whyt? There are decades old retail structures that are resistant to change. Very few companies have been out front on this Good news is that Borders and MEXX are two of those companies and you’ll hear from them this afternoon
  • Why mobile will break down barriers Why US is poised to be a leader in mobile internet
  • Europe has always been the most strickt US is likely to catch up Does this mean Europe will take more steps in the future?
  • 6 Us Trends Oct 2009

    1. 2. Six Trends Shaping US Online Retail Scott Silverman Executive Director, Shop.org
    2. 3. 6 Key Trends in US Online Retail <ul><li>US online retail growth in the context of overall retail and Amazon </li></ul><ul><li>Review of Q309 and ’09 Holiday Expectations </li></ul><ul><li>Cross-channel </li></ul><ul><li>Social media is (finally) a real channel </li></ul><ul><li>Private flash sales </li></ul><ul><li>Policy issues brewing </li></ul>
    3. 4. Online Retail is Big and Still Growing #1 Online vs. Store vs. Amazon Source: Forrester Research
    4. 5. Online Vs. Stores in Q2 2009 #1 Online vs. Store vs. Amazon Source: Internet Retailer, company press releases
    5. 6. Amazon Vs. Everyone Else <ul><li>Amazon </li></ul><ul><li>US/Canada sales up 19% for first 3 quarters of ’09 </li></ul><ul><li>Guidance for Q409 is sales growth between 21% and 36% </li></ul><ul><li>Everyone Else </li></ul><ul><li>Q2 E-commerce sales decreased 4.4% (U.S. Dept of Commerce) </li></ul>#1 Online vs. Store vs. Amazon
    6. 8. Almost Three-Quarters of Retailers’ Sales Grew in Q3 2009 Source: Shop.org / Forrester Research Survey, Oct 2009 #2 Q3 & Holiday Expectations Increased: 72% Flat: 3% Decreased: 25% N=69
    7. 9. Big Retailers Were the Q3 Winners Shop.org/Forrester Q3 Flash survey, 10/09 Large retailers earn $100MM+ in web revenue (N=24) Medium retailers earn $10-100MM in web revenue (N=24) Small retailers earn <$10MM in web revenue (N=18) #2 Q3 & Holiday Expectations
    8. 10. U.S. Retailers Optimistic About Holiday ‘09 1/3 Expecting Growth of 25% or More #2 Q3 & Holiday Expectations N = 59, Source, Shop.org eHoliday, 9/09
    9. 11. Oct 10, 2001!!
    10. 12. Cross-Channel Strategies Remain in the Early Stages #3 Cross Channel
    11. 13. Q: What weighs 135g and can break down some of the strongest silos in business? #3 Cross Channel
    12. 14. A: U.S. is a Leader in Mobile Internet Usage <ul><li>More text messages are now sent per user in the U.S. than in Europe </li></ul><ul><li>As of May 2008, there were 40 million active users of the Mobile Internet in the U.S. (Nielsen) </li></ul><ul><li>Apple sold 6.9 million iPhones in Q4 of 2008 </li></ul>#3 Cross Channel
    13. 15. In-store Product Reviews Now Available #3 Cross Channel
    14. 16. Social Media Has Overtaken Porn as the #1 Activity on the Web
    15. 17. Social Media Blooming for Retailers <ul><li>71% of retailers are using Twitter </li></ul><ul><ul><li>New to 40% in 2009 </li></ul></ul><ul><li>81% of retailers have a Facebook page </li></ul><ul><ul><li>New to 25% in 2009 </li></ul></ul>#4 Social Media Source: Shop.org 2009 eHoliday study
    16. 18. Private Online Flash Sales <ul><li>Daily “members only” sales of limited merchandise </li></ul><ul><li>Perfect storm of e-commerce </li></ul><ul><ul><li>Simplicity – one product </li></ul></ul><ul><ul><li>Discount </li></ul></ul><ul><ul><li>Urgency </li></ul></ul><ul><ul><li>Instant communications </li></ul></ul><ul><li>1.5 million Gilt Groupe members </li></ul>#5 Private flash sales
    17. 19. <ul><li>Privacy advocates have the ear of the Obama administration and Congress </li></ul><ul><li>ICANN pursuing unlimited domain names </li></ul><ul><ul><li>.walmart, .tesco, .retail, .beer, etc. </li></ul></ul><ul><ul><li>Significant fraud and cybersquatting threats </li></ul></ul>Online Privacy Laws & gTLDs #6 Policy Issues