Growth and impact of globalization and e commerce


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Growth and impact of globalization and e commerce

  1. 1. Growth and Impact ofGlobalization and E-commerce Riah E. Encarnacion
  2. 2. What is Globalization?– Is it a social phenomenon?– Is it a cultural phenomenon?– Is it a economic phenomenon? It is an INTEGRATION of different societies, cultures and economies.
  3. 3. GLOBALIZATION in deeper senseinterconnectedness of the WORLDthrough flows of INFORMATION, CAPITAL, and PEOPLEfacilitated by TRADE and POLITICALopenness as well as INFORMATION TECHNOLOGY
  4. 4. What DRIVES Globalization?size and power of CORPORATIONS trade LIBERALIZATION cheaper and quicker TRANSPORT FINANCIAL advances in new flows TECHNOLOGYTechnology / Internet is the main DRIVING FORCE of most of the globalization processes
  5. 5. Globalization could involve all these things! GlobalisationBut the spread of the INTERNET intensifies Globalization.
  6. 6. How the INTERNET dominates our lives?Internet is linking businesses and individuals around the world into a common electronic network. No. 1 No. 2 medium medium during the day during the night more than 60 % nearly 40 % of users are online of all users for roughly two are online either hours per day. at work or at home
  7. 7. Internet population has doubled in 5 years from 1.15 B in 2007 to 2.27 B in 2012
  8. 8. E-commerce is also growing E-commerce is the use of the Internet to buy, sell, or support products and servicesWHERE ARE ONLINE SHOPPERS COME FROM? of the world’s Internet users have 85% purchased something online. internet researchers will make at least 83% one purchase via the web. PROJECTION IN 2012WHO ARE THE MOST CRITICAL SHOPPERS? 184.3M Online shoppers up 3.3% from 2011. 154.6M Online buyers up 4.4% from 2011.
  9. 9. CONSUMERS ONLINE SHOPPING BEHAVIOR Why consumers shop online? 73% 59% 67% 55% 30% 58% 40% 3%Time saving Easy to compare More variety Less prices Less Tax No crowd Spend less on Other prices gas What consumers buy online? 89% of consumers say they are Interested in 66% 60% 56% 33% 29% 29% 27% using online coupons forBooks, Music Apparel Electronics Baby Travel Home & Cosmetics & online or in-store & Video kids, Toys Garden Fragrances purchases. 26% 25% 24% 23% 23% 22% 17% Office Luxury Health & Sporting Flowers, Card Pet Supplies Automotive Tools Supplies Goods Wellness Goods s, & Gifts How much consumers spend online?Americans in 2010 $186billion spent in ONLINE transactions
  10. 10. How much is online retail growth?
  11. 11. So and Mobile devices dominate the Online Marketing Trend Social media what happens now? Mobile Mobile next generation of Internet users-113.9M smart phones will Devices phone users-242.6M include Near Field in 2012 Shoppers – 72.8M Communication Buyers – 37.5M (NFC) Smartphones 94% TAblet users-54.8M and Mobile Smartphone Smartphone iPad users-41.9Mdevices rule the users-106.7M Users will be market Shoppers – 68.6M Mobile internet 76.4% tablet users Buyers – 36.4M users will be iPad users90% of socialnetwork users 2/3 of web Socialwill be on users will MediaFacebook use social networks Facebook in 2012 users – 143.4 M
  12. 12. SOCIAL NETWORKINGthe most popular online activity worldwide will continue to grow
  13. 13. SOCIAL MEDIAPlay a major role in lead Leads in online display generation advertising
  14. 14. Mobile devices are fueling the social addiction
  15. 15. MOBILE DEVICES MOBILE ADOPTION MOBILE SIGNALS $ CONTINUES TO SOAR MASSIVE OPPORTUNITY FOR EBUSINESS 77% By the end of 2012, more than 5 0 0 0 0 0 0 0 0 of the planet owns a , , mobile device SMARTPHONES are expected to flood the market Of the world’s 4 Billionuse, By 2015 mobile 25% 27% mobile phones in online shopping will 1.08 billion reach $163 BILLION are smartphones 75% and a whopping worldwide 3.05 billion are SMS enabledCAN YOU AFFORD NOT TO OPTIMIZE? 34% of mobile shoppers make $100,000 or more a year 80% OF CUSTOMERS ABANDON A 56% MOBILE SITE IF THEY OF THE PEOPLE BELIEVE THAT MOBILE HAVE A BAD USER CAN MAKE THE SHOPPING EXPERIENCE MORE ENJOYABLE  EXPERIENCE
  16. 16. Top RETAILER WEBSITES and their satisfaction scores from MOBILE SHOPPERS WEBSITE SATISFACTION STORE.APPLE.COM 85 83 84 88 78 80 77 79 77 80 77 80 76 78 75 83* average satisfaction was identified to be 76 out of 100 rating point
  17. 17. What are companies currently budgeting?
  18. 18. DIGITAL MARKETING PROGRAMS TOP OBJECTIVES IMPACT ON LEAD GENERATION #1 #2 Increase Generat #3 Awarenes e Leads Increase s Revenue 20% 59% 25% 99% PPC SEO Social Media SEO #1 21% 26% #2 Increase #3 Social PPC Increase Awarenes Media Generate Revenue s LeadsPREVIOUS MARKETING SPEND FUTURE MARKETING BUDGET 29% Display Marketing increase of budget for SEO 4.16% E-mail Marketing 4.1% Social Media marketing increase of budget for Social Media 2.36% Mobile Marketing increase of budget 60.3% Search Marketing for Mobile
  19. 19. What should you do to stay global?EASIEST Localize your site Find a way to ship globally Determine and inform customers about local tariffs Add multiple currencies to your site Convert your site to local languages Employ multi-lingual customer service Convert your site to culturally-relevant contentDIFFICUL T
  20. 20. What global trends does eBusiness expect to see in 2012?• More brands will sell direct in international markets.• International shippers will focus on consumers in specific markets.• eCommerce companies’ “Tier 1” markets will include multiple emerging markets.• BRIC will still be the acronym, but CBIR will be the order.• The mobile commerce gap will narrow substantially on global offerings.
  21. 21. REFERENCES