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E marketer commerce_roundup

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A really informative state of eCommerce report by eMarketer

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E marketer commerce_roundup

  1. 1. APRIL 2012eMarketerCommerce RoundupGiven the continual changes online and mobile shopping havebrought to the retail industry and the robust growth projected foronline shopping and buying as well as online ad spending by theindustry, eMarketer has curated a roundup of key trends, statisticsand information from industry insiders relevant to retail marketers.We hope this brief will help you navigate the growing complexityfacing all retail- and commerce-oriented marketers. sponsored by ATG WEB COMMERCE
  2. 2. Commerce Roundup APRIL 2012Ecommerce OvervieweMarketer expects US retail ecommerce sales to reach $224.2 billion this year, up 15% from 2011.Online sales continue to see growth despite ever-increasing penetration rates of online shoppers andbuyers. These figures exclude travel and event tickets sales, but include sales made on mobile devicesand tablets.The apparel and accessories category US Retail Ecommerce Sales, 2010-2016will lead ecommerce sales growth billions and % changethroughout the forecast period, with $361.9growth of 20% predicted for this year. By $325.22016 the category will account for just $289.8over one in five of all US online $256.0retail dollars. $224.2 $194.3Retailers continue to increase the $167.3scale of their ecommerce operations—particularly by investing in online salesplatforms that display products and 15.2% 16.1% 15.4% 14.2% 13.2% 12.2% 11.3%convert shoppers more effectively—and apparel sales have benefited morethan any other category. Apparel has 2010 2011 2012 2013 2014 2015 2016become an online success due largely Retail ecommerce sales % changeto easy and free returns, innovative Note: eMarketer benchmarks its retail ecommerce sales figures against USvisualization tools and the presence of Department of Commerce data, for which the last full year measured was 2011; excludes travel and event ticketscustomer reviews. Source: eMarketer, March 2012 137800 www.eMarketer.comeMarketer estimates that 184.3 millionUS consumers ages 14 and older will browse and research products online this year, and nearly 150million of them will go on to make at least one purchase on the web. In addition, almost 73 millionmobile users will shop on their phones this year, with just over half making at least one purchase. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 2
  3. 3. Commerce Round-Up‘Showrooming’ Is a Valid Concern for Retailers APRIL 2012Researching by smartphone while in-store is on the rise“Showrooming,” the practice of researching merchandise in a store, then buying it elsewhere—online,by phone or from another brick-and-mortar business—has retailers nervous, and rightly so. Price-con-scious consumers are inclined to defect when presented with a better deal.Shoppers armed with smartphones, though, have been causing Ways that US Online Shoppers Use Mobile Phonesthe most commotion. The number of individuals who have While In-Store, 2009-2011checked prices using mobile devices while in a store varies % of respondentsdepending on the source and methodology, but it is fair to say Access that stores website 52%that a significant number have engaged in the activity. 69% 65%Several researchers have surveyed the number of US mobile Access a competitors websitephone users who have comparison-shopped via phone while 25%in-store. Their research has found a comparison-shopping rate 46%ranging from 59% of US smartphone owners (InsightExpress, 43%2011) to 25% of US mobile phone owners (Pew Internet and Access a shopping comparison website (Shopzilla, Shopping.com)American Life Project, January 2012). 15% 32%ForeSee Results findings from between 2009 and 2011 are 26%consistent with this trend toward using mobile phones for in- Access that stores mobile shopping application 4%store research; however, in 2011, the shoppers surveyed were 19%more likely to access the website or app of the store they were 21%actually in than a competitor’s website or app. This means that Access a competitors mobile shopping applicationretailers need to not only be concerned about how their pricing 4%stacks up against others’, but also about pricing consistency 10%across their own channels. 14% 2009 2010 2011The rise in smartphone adoption and the visibility of shoppers Source: ForeSee, "Mobile Satisfaction: Apple and Amazon Excel," Jan 12,using phones to scan barcodes or take photos has drawn 2012 136199 www.eMarketer.comattention to the potential problems with consumers usingstores as showrooms. And yet, for as long as there have been shops and ecommerce sites, this multichannel behavior hasexisted. A February 2012 ClickIQ survey discovered that nearly half (45.9%) of US online shoppers researched products in-store—not necessarily using smartphones—only to ultimately buy online.Retailers are coming up with solutions to combat fickle window-shoppers, however, like providing better customer servicethrough well-informed sales associates. Nordstrom, for example, recently began offering perks such as free shipping on in-storepurchases, while Target has taken more of a stopgap approach and is exploring offering more items made exclusively for theretailer, which would make comparison shopping more difficult.On the upside, most in-store researchers stay put. According to Pew, 35% bought from the retailer’s store location where theywere comparison-shopping, 19% bought online and only 8% went to another store. If approached the right way, immediacy canwork wonders for conversion. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 3
  4. 4. Commerce RoundupMcommerce Sales Shoot Up as More Consumers Buy via Mobile 2012 APRILSales will nearly double this year and more than quadruple again by 2015US mcommerce sales are on a steep upward trajectory, thanks in part to ever-increasing adoption ofsmartphones and the mobile internet among the US mobile population.eMarketer estimates mobile commerce sales will reach $6.7 US Mcommerce Sales, 2010-2015billion this year—a tiny fraction of overall retail sales, to be billions and % changesure, but a 91.4% increase over 2010. Next year, sales will rise 118.8% $31.0another 73.1%, to $11.6 billion. 91.4% $23.7“There’s no question that mobile commerce is growing at a fast 73.1%clip,” said eMarketer principal analyst Jeffrey Grau, author of a $17.2forthcoming report on mobile buying. “And mobile acts as anengine of overall ecommerce growth, by converting potential $11.6brick-and-mortar sales to digital sales as consumers use their 48.3% $6.7 37.8%smartphones while shopping in-store.” 30.8% $3.5eMarketer’s estimates of mobile sales are based on a meta- 2010 2011 2012 2013 2014 2015analysis of data from research firms as well as overall trends in M-commerce sales % changemobile ownership and usage. Mcommerce sales include sales Note: includes travel and event ticket sales but excludes digital downloadof physical goods as well as travel and event tickets purchased sales; excludes sales made on tablets Source: eMarketer, Nov 2011via mobile, but exclude digital downloads and usage of mobile 134540 www.eMarketer.comphones as a point-of-sale payment mechanism.eMarketer forecasts 37.5 million US consumers ages 14 and up US Mobile Buyers, 2010-2015will make at least one purchase on their mobile phone this year, 2010 2011 2012 2013 2014 2015up from 26.8 million in 2011. The vast majority of that group will Mobile buyers (millions) 17.5 26.8 37.5 46.1 53.8 61.8be smartphone owners, at 97% in 2012. Overall, 72.8 million —% of mobile phone users 8.0% 12.0% 16.5% 20.0% 23.0% 26.0% Smartphone buyers (millions) 13.7 25.6 36.4 44.9 52.9 61.1mobile users will research or browse items on their phone next —% of smartphone users 23.0% 29.0% 35.0% 38.5% 41.0% 42.5%year, but not necessarily make a purchase. —% of mobile buyers 77.8% 95.3% 97.0% 97.3% 98.3% 98.9% Note: ages 14+Auction sites like eBay and flash sales sites like HauteLook Source: eMarketer, Nov 2011 134542 www.eMarketer.combenefit significantly from rising mobile commerce, since theimmediacy of their offers attracts shoppers to the mobile channel to grab a limited-time deal while on the go.At the same time, brick-and-mortar retailers run an ever-greater risk of becoming showrooms for Amazon.com and other onlineretailers—though the shift to mobile shopping can benefit them as well.“If a retailer has robust mobile offerings, it can steer in-store shoppers to look online for more information or find out-of-stocksizes and items on its own mobile site or app,” noted Grau, “retaining the sale via a different channel.” Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 4
  5. 5. Commerce RoundupRetail Becomes Fastest-Growing Mobile Category APRIL 2012More than one-third of smartphone users access retail sitesAs smartphones become more mainstream, mobile is becoming more pervasive in all aspects ofconsumers’ lives. And online shopping is quickly becoming a popular activity.Mobile content tied to services like travel, dining and movies— Change in Mobile Content Categories Accessed by USmore established mobile categories—is still on an uptick, but Mobile Subscribers, Sep 2011online retail experienced the largest increase vs. 2010, with 95% % change vs. same period of prior yeargrowth in the number of subscribers accessing this content year Online retail 95%over year in September 2011, according to comScore. That works Classifieds 82%out to 21.2 million mobile users, 17% of whom accessed mobile Auction sites 77%retail sites almost daily. Twenty-eight percent did so at least once a Shopping guides 74%week while 55% reported doing so one to three times per month. Real estate listings 71% Movie info 65%Among those surveyed by comScore, the leading mobileretail activity was finding a store location, performed by 33%. Restaurant info 65%Twenty-one percent compared product prices and 20% looked Search 57%for coupons or deals. Smartphone users in a Hipcricket survey Travel service 46%followed a similar pattern, but with higher involvement. Nearly half Source: comScore Inc., "State of the US Online Retail Economy in Q3 2011,"had researched prices on a retailer’s mobile site and more than a Nov 15, 2011 134559 www.eMarketer.comthird had looked for coupons and promotions.Retailers should not only be prepared to provide the content Reasons that US Smartphone Users Have Visited athat mobile searchers seek, but also on the platforms they use. Retailers Mobile Website, Oct 2011According to comScore, smartphone users in general favored % of respondentsbrowsers over apps (48% vs. 26%) with iPhone users being the Research prices 46%most likely to use apps; only 4 percentage points separated Look for coupons/promotions 36%browsers (40%) from app users (36%) among iPhone owners. To Research new products 28%reach the broadest shopping base, retailers would be wise to 13% Purchase a productoffer both modes of access. 1% Other Source: Hipcricket, "2011 Mobile Marketing Survey Research Brief," Oct 20, 2011 133678 www.eMarketer.com Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 5
  6. 6. Commerce RoundupBrowsers Beat Out Apps for Mcommerce APRIL 2012Tablet shopping on the rise as frequency of use growsApps aren’t always the answer to engaging with consumers on mobile devices—especiallywhen it comes to mcommerce. According to research from rich media company Zmags, very fewAmericans prefer to use mobile apps for shopping activities. Instead, consumers strongly preferpurchasing through web and mobile browsers.When Zmags surveyed US consumers who owned a PC or Preferred Shopping Methods According to USlaptop computer about their shopping methods, 87% said they Consumers*, Nov 2011preferred using websites and mobile sites, compared to 14% % of respondentswho most liked shopping from websites via smartphone and Website on PC/laptop 87%just 4% who preferred to shop using mobile or tablet apps. In-store 71%Although smartphone and tablet owners display a preference Website on smartphonefor browser-based mobile purchases, a significant number 14%of US retailers have created mobile apps that enable Website on tabletcommerce activities. Survey data from mobile-shopping 9%company AisleBuyer showed in December 2011 that 19% of Phone call with a service agent 7%US retailers had a mobile app to connect consumers to their App on tabletecommerce site. 4% App on smartphoneRetail apps may be of greater value to smartphone users, 4%for whom the browsing experience is more limited in nature. Note: *who own a PC or laptopThere’s also opportunity for tablet commerce apps to Source: Zmags, "Meet the Connected Consumer: How Tablets, Smartphones and Facebook are Changing the Way Consumers Shop Acrossprovide a more catalog-style approach, giving users more Retail Categories" conducted by Equation Research, Jan 16, 2012interactive features. 136219 www.eMarketer.comMeanwhile, the tablet commerce category as a whole is Frequency with Which US Tablet Owners Use Theirgrowing significantly. According to Zmags, during the 2011 Tablets to Shop, Nov 2011 % of totalholiday shopping season, 87% of tablet owners used theirdevice for shopping. Not only do users report better buying Less than Every day monthlyexperiences than with smartphones, but tablet owners are Once per 10% 12%using their devices frequently for mcommerce. According to month More than 13%Zmags, half of tablet owners are using tablets for shopping on once per week 21%at least a weekly basis. 2-3 times per month 24% Once per weekeMarketer projects that mcommerce sales will grow more than 20%fourfold over the next few years, from $6.7 billion in 2011 to $31billion in 2015. If consumers continue to prefer browsers over Source: Zmags, "Meet the Connected Consumer: How Tablets, Smartphones and Facebook are Changing the Way Consumers Shop Acrossmobile apps for shopping, retailers should consider investing Retail Categories" conducted by Equation Research, Jan 16, 2012more in mobile-optimized ecommerce sites. Moreover, 136221 www.eMarketer.commarketers should consider designing engaging, tablet-specificecommerce experiences for tablet users. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 6
  7. 7. Commerce RoundupThe Effect of Mobile on the Path to Purchase APRIL 2012Retailers should view mobile sites as a gateway for in-storeand online purchasesWhile consumer usage of smartphone and tablet devices for shopping purposes is on the rise, the devices’place in the purchase path is varied. According to several pieces of research by Google, ForeSee Results andNielsen, shoppers may start in the mobile channel for product research but then purchase in-store. They alsomay use mobile for product research on the go, then later purchase online on a PC or tablet.Nielsen’s Q3–Q4 2011 “US Digital Consumer Report” indicates Cross-Channel Shopping Behavior During 2011that 29% of smartphone owners use their phone for shopping- Holiday Season Among US Smartphone Users, Jan 2012related activities. The top mobile shopping activities include % of respondentsin-store price comparisons (38%), browsing products through Researched on smartphone, went to store to purchasethe mobile web or apps (38%), and reading online product 46%reviews (32%). Researched on smartphone, purchased on smartphone 41%A 2011 post-holiday shopping study by Google and Ipsos OTX Researched on smartphone, then purchased online on computeralso depicts consumers using their smartphones at many 37%different points in the purchase path. For instance, 46% of Researched on smartphone, visited store to check out products, then purchased online on computersmartphone users who used their mobile device for holiday 19%shopping said they researched an item on their smartphone Researched on smartphone, visited store to check out products, then purchased on smartphonethen went to a store to make their purchase. And 37% said 18%they researched an item on their smartphone then made Visited the store first, then purchased on smartphonetheir purchase online on a computer. No matter the purchase 8%channel, smartphone users are likely to find a role for their Note: n=208 who used a smartphone to do their holiday shoppingmobile device in the purchase process. Source: Google and Ipsos OTX, "Post Holiday Shopping Intentions Study" as cited in Google, "2011 Post-Holiday Recap," Jan 2012 137177 www.eMarketer.comThe Google study also shows that 41% of smartphone usersresearched with their mobile device and went on to actually purchase on the smartphone. That data point is higher than insome other mobile commerce studies. For example, a study released in January 2012 by customer experience managementfirm ForeSee indicates that during the 2011 holiday season only 15% of online shoppers used their phones to make purchases.The phone was most commonly used as a research and price comparison tool. However, Google/Ipsos OTX studied onlysmartphone owners while ForeSee looked at online shoppers as a whole, a group that includes many feature phone owners.Whether a consumer makes a purchase via mobile or elsewhere, Google’s industry director for retail, Todd Pollak, toldeMarketer that retailers need to improve the way they connect the mobile experience with the in-store or web-based shoppingexperience. “You would think retailers would be hugely invested in ensuring you’d have an optimized experience on the mobiledevice, as well as trying to understand how people use it,” he said. “But consumers are way ahead of retailers in terms of theirinvestment in mobile and how that plays into the purchase process.”Although the path to purchase may appear unclear as consumers conduct the shopping process across multiple channels,Pollak encouraged mobile marketers to think about factors such as a consumer’s distance from a store and the days and timeswhen mobile usage spikes. For example, tablet usage peaks during after-work hours and smartphone usage spikes duringweekend days. Connecting and strategizing based on those statistics will help mobile marketers provide more targeted andpersonalized campaigns akin to the marketing experiences consumers are accustomed to on the web. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 7
  8. 8. Commerce RoundupConsumer Products Brands Maintain Multichannel Harmony APRIL 2012Direct-to-consumer selling complements retailTraditionally, retailers have been the middlemen between consumers and brand manufacturers, butthese roles are becoming more fluid with the rise of ecommerce. Consumer goods companies havestarted selling to shoppers through direct online channels, and in the process are gaining access tovaluable market research data.In an IDC survey from June 2011, a majority of North American Consumer Goods Executives in North America Whoseconsumer goods executives said their companies were selling Companies Sell Directly to Consumers, April 2011directly to consumers in some form. Distributing through third- % of respondentsparty websites like Alice.com was the most popular approach, Yes, through third party internet sites 39%and more than a third were also selling through their own sites. Yes, through our website 36%The trend toward selling direct online was further illustrated Yes, through our physical retail outletsin an October 2011 Economist Intelligence Unit survey of 21%consumer products executives worldwide. Twenty-nine percent Not currently, but plan to do so in the next two yearsof respondents’ companies’ total sales were attributed to their 3%own websites, social media sites or direct-to-consumer third- Not currently, and no plans to do so 36%party sites. However, the largest amount of sales were stillcoming from retail partners (41%). Note: approximately 60% of respondents sell products directly to consumers Source: IDC Manufacturing Insights survey as cited in Consumer GoodsEven though they are expanding channels, most consumer Technology (CGT), "2011 Sales and Marketing Report," June 8, 2011 133705 www.eMarketer.combrands are being careful to avoid conflict with their establishedretail partners. Fewer than 10% of those surveyed saw Ways that Consumer Products Executives View Theirthemselves as battling with retailers’ other brands or private Consumer Engagement Relationship with Retailers, Oct 2011labels. Many saw themselves as collaborating with retailers % of respondents(41%), and nearly a quarter saw themselves as taking a Work together to serve consumers through a variety oftwo-pronged approach—branching into direct selling while marketing, sales and service programssimultaneously sticking with retailers. 41% Continue to work with retail partners but we are also committed to expanding our competing direct-to-consumer strategiesFor many CPG brands, gaining consumer insights is an 23%important additional benefit of direct sales. Sixty-one percent Share consumer data and insights to enable better planning,cited purchase data as the most valuable type of consumer though we act on those insights separately 22%insight, and it is a metric that is much easier to obtain when a Battle for shelf space with other brandsbrand is handling its own ecommerce. The future still lies with 9%retailers, though; consumer products executives predicted Compete with retailers private-label offeringsthe largest share of their sales over the next three years (40%) 5%would come from retail partners, just one percentage point Source: Economist Intelligence Unit (EIU), "New directions: Consumerlower than the current breakdown. Consumer products brands goods companies hone a cross-channel approach to consumer marketing" sponsored by Oracle, Feb 7, 2012may be stepping up their game in terms of ecommerce and 137671 www.eMarketer.comsocial initiatives, but, based on the data, they won’t be steppingon any retailers’ toes in the process. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 8
  9. 9. Commerce RoundupGilt’s Device-Agnostic Strategy Powers Mobile Growth APRIL 2012 Feldman: Absolutely. We’re always looking to offer consumers more of a competitive advantage, because when people come onto Gilt, it’s like a sport. They’re competing for products. It’s really Yon Feldman exciting, but it could be nerve-wracking as well. Vice President, Mobile & Global Engineering We’re working on making it easier to browse what you’re Gilt Groupe interested in without looking at everything. We’re looking to filter products by your particular sizes, so you don’t haveeMarketer: What percentage of Gilt’s sales come from to waste time looking at products that aren’t even availablemobile phone users, excluding tablets? in your size. We’re making search and filtering functionalityYon Feldman: We tend to see about 10% coming from faster. I like to call it “flattening the experience”—you don’tmobile, not including tablets. It’s another 5% that’s coming have to dive into a sale, a list of products or a product detailsfrom tablets. So it’s about 15% in total coming from mobile page and see if the item is available in your size, try to add it todevices and it goes as high as 25%. cart and then notice it’s already been reserved by somebody else. We want to make it easier to get in and get out.eMarketer: When do you tend to see spikes in terms ofmobile sales on Gilt? “A lot of mobile devices are difficult toFeldman: On weekends, when people aren’t at their office shop on because the screens are small,computers. Because our sales are timed, we get a bump but we can still try to give customersevery time people aren’t at their computers. Mobile sales more information and control and to makecan come on the weekends, when people are in parks or things faster.”out having brunch or things like that. With mobile screens, we want customers to really get“With tablets, we see sales spikes at night, a feel for what the fabric and the buttons are like on an when people are kind of lounging about, item and to give them all the tools they need to make a laying in bed or on the sofa, leisurely purchasing decision. A lot of mobile devices are difficult perusing Gilt.” to shop on because the screens are small, but we can still try to give customers more information and control and to make things faster.Plus, mobile ties into the normal spike of the Gilt business.So every day at noon, there’s a huge spike. Then we see eMarketer: Are there any specific features of your mobiledifferent spikes depending on the platform. With tablets, we offering that customers are finding particularly useful orsee sales spikes at night when people are kind of lounging that they appreciate?about, laying in bed or on the sofa, leisurely perusing Gilt. Feldman: With the tablet and the iPad app, the experienceeMarketer: What is it about your business model that is really speedy and flat. On one screen, you can essentiallymakes it ideal for mobile shopping? do everything from looking at the different views of a product—the front, back, the details—directly fromFeldman: The whole flash-sale business is ideal for mobile the cart. You can tap and hold to drag items directly toshopping, because you have access no matter where you your cart.are. It’s one of the reasons we see such strong membersand mobile revenues. When you see an email from Gilt, Our customers appreciate that we make the processyou’re going to want to open it. speedy because they are competing against other people. They can get in and out in 3 minutes. They appreciate oureMarketer: Are there some features that you’d like to push notifications that come at noon, when our sales start.introduce to make mobile shopping even easier? Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 9
  10. 10. Cabela’s Defines Roundup in Global VenturesCommerce Best Practices APRIL 2012 It was a three-step process: The first step was to shore- up customer service internationally. The second piece was to overcome the major obstacles that international Derek Fortna customers had in ordering from us here in the US. One Marketing Manager of the obstacles for international customers was when a Cabela’s package arrived in their country from a particular shipping company, the customer had no idea what they would have to pay in terms of taxes and duties. That’s dangerousIn his seven years with outdoor adventure for an international consumer, especially in places suchretailer Cabela’s, Derek Fortna has spearheaded as Mexico that have really high duties on items madevarious digital marketing programs, including in China. Cabelas.com doesn’t always specify when athe brand’s entrée into social media, it’s paid product is made in China, so sometimes the customersearch campaigns and its global ecommerce won’t know how much a duty is until the product arrives.strategy. Cabela’s, which has sold internation- FiftyOne now calculates those taxes and duties ahead ofally since the late 1990s, fine-tuned its global time, so consumers know the full amount when they place their order.ecommerce approach a few years ago with anew vendor partnership and a global market- Our third step was to start doing some internationaling push. Fortna told eMarketer’s Lauren McKay marketing, which we hadn’t really done before.about Cabela’s experience selling internationally, eMarketer: What digital tactics did you implement toand where the brand plans to pay special target international consumers?attention in the future. Fortna: The major effort was with our paid search program, and we’re complementing that with banner ads on websiteseMarketer: In 2009, Cabela’s began working with where we expect our international customers to spendinternational ecommerce platform FiftyOne to expand its time. That really boils down to international fishing andglobal selling capabilities. Can you describe the company’s hunting websites. We’re also doing some social marketing onstrategy for expansion? Facebook to bring about brand trust and awareness in certain target markets.Derek Fortna: We’ve been shipping internationally sincethe late ’90s. Prior to turning to FiftyOne three years ago, “We’re not driving a lot of our internationalwe had already shipped to over 200 countries. One of our business through our branding; instead,executives saw the business we were doing internationally we’re driving most of that businesswithout really trying, and he just asked the question, “What through nonbrand terms.”if we try?” So we did some research around internationalbusiness and came up with a recommendationfor expanding. Our international paid search expansion is going well, but one of the challenges we’ve found is that we’re not driving a lot of our international business through our branding;“One of the obstacles for international instead, we’re driving most of that business through customers was when a package arrived nonbrand terms. International consumers don’t necessarily in their country from a particular shipping recognize our name like they do here in the States, so we company, the customer had no idea what realized we needed to supplement our paid search with they would have to pay in terms of taxes some branding tactics to position our brand name and and duties.” what we sell. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 10
  11. 11. Commerce RoundupCabela’s Defines Best Practices in Global Ventures (Continued) APRIL 2012eMarketer: As you’re identifying your internationaltargets, are you finding that certain product categories aremore popular or that they are responding better to certainmessages than others?Fortna: From a product perspective, our hard goodsperform well internationally. Our soft goods, like clothing,aren’t as popular because international companies andcountries have their local retailers for clothing. However,there’s a pretty fragmented market internationally forhunting and fishing hard goods. There’s no one outthere as strong as we are in terms of that assortment ofproducts. There are a lot of mom-and-pop shops, but no bigcompanies with vast product selections.eMarketer: Based on your global commerce experience,can you offer a few best practices?“We have looked to local partners in international markets to help make us aware of societal aspects.”Fortna: We’ve learned to be careful and conservative interms of growing our business internationally. We havelooked to local partners in international markets to helpmake us aware of societal aspects. We’re working withPerformics in London for our paid search programs. We didthis specifically because they have a better understandingof that part of the world than we do here in the States.That’s paid off, without a doubt. They understand whencamping season starts and ends, and boating seasonstarts and ends, and the type of products that people lookfor. For example, we Americans call a fishing reel usedfor saltwater fishing a “saltwater reel,” but in the UnitedKingdom, they call that a “sea reel.” It’s a slight difference,but if we were buying search ads in the UK listing a“saltwater reel,” we’d get far less traffic than listing it asa “sea reel.” Having an international office has definitelybeen advantageous. Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 11
  12. 12. # 1Retail 10 of the 10 Top Grocers 10 of the 10 Top Fashion Retailers 10 of the 10 Top Hardline RetailersGet Better Results With Oracle oracle.com/goto/retail or call 1.800.633.0544 Copyright © 2012, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
  13. 13. About eMarketerRoundupCommerce APRIL 2012eMarketer publishes data, analysis and insights on digital marketing, media and commerce.We do this by gathering information from many sources, filtering it, and putting it into perspective.For more than a decade, leading companies have trusted this approach, and have relied oneMarketer to help them make better business decisions.BenefitsCompanies rely on eMarketer to:■■ Save time and resources by getting the right information, quickly.■■ Validate media decisions with reliable data to ensure productive investments.■■ Educate teams and senior executives on the latest digital marketing topics.■■ Evaluate emerging trends instantly and maintain competitive advantage.■■ Deliver impactful presentations with facts, figures and charts in a variety of downloadable formats.Make your business smarter and more efficient. Become an eMarketer client today by calling 800-405-0844(outside of the US and Canada, call 001-212-763-6010) or emailing sales@emarketer.com. eMarketer, Inc. www.emarketer.com 75 Broad Street Phone: 212-763-6010 Floor 31 Toll-free: 800-405-0844 New York, NY 10004 Email: sales@emarketer.com Commerce Roundup Copyright ©2012 eMarketer, Inc. All rights reserved. 12

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