1. Growth and Impact of
Globalization and E-commerce
Riah E. Encarnacion
riah@act.edu.om
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. GLOBALIZATION in deeper sense
interconnectedness of the WORLD
through flows of
INFORMATION, CAPITAL, and PEOPLE
facilitated by
TRADE and POLITICAL
openness
as well as INFORMATION
TECHNOLOGY
4. What DRIVES Globalization?
size and power of
CORPORATIONS
trade
LIBERALIZATION
cheaper and quicker
TRANSPORT
FINANCIAL
advances in new flows
TECHNOLOGY
Technology / Internet is the main DRIVING FORCE of most of the
globalization processes
5. Globalization could involve all these things!
Globalisation
But the spread of the INTERNET intensifies Globalization.
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
8. E-commerce is also growing
E-commerce is the use of the Internet to buy, sell, or support products and services
WHERE 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 2012
WHO ARE THE MOST CRITICAL SHOPPERS?
184.3M Online shoppers
up 3.3% from 2011.
154.6M
Online buyers
up 4.4% from 2011.
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 for
Books, 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
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-41.9M
devices 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 users
90% of social
network users 2/3 of web Social
will be on users will Media
Facebook use social
networks
Facebook in 2012
users – 143.4 M
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 enabled
CAN 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. 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
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
Leads
PREVIOUS 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. 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 content
DIFFICUL
T
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.