Discover the key trends impacting digital commerce from today to 2020

1. Key Trends Impacting Digital Commerce by 2020
Neil Stewart – CEO, Salmon Ltd.

2. What we will cover today

3. What we will cover today

4. What we will cover today

5. What we will cover today

6. Black Friday 2015 was the first year it really worked from a
customer perspective.
Retailers offered the same
deals online as offline
Delivery and fulfilment not an issue - it
was quicker and better (incl. same-day)
Operations tested
well in advance
Imagecredits:DailyMail
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7. Online saw dominant growth during peak 2015*
Sources *Visa Europe 2015
**National Retail Federation, Dec 2015
This has profound implications for the role of the store in 2020
Stores no longer the primary
destination for consumption
Stores will support the online
purchase not the other way around
28% 3%
In USA, 2015 was the first year when, on Black Friday,
more people shopped online than instore**

9. Black Friday 2016
Salmon predicts a
record-breaking
5-day online spend
of £5 billion.
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NOVEMBER 2016
23 FEBRUARY 2016 Neil Stewart

11. Two contrasting online behaviour types
Shopping experience based on
DifferentiationCommodity
Utility
InspirationTransaction
Discovery

12. InspirationTransaction
Transaction-led experience
Shopping experience based on
DifferentiationCommodity
Utility Discovery

13. Transactional commerce being led by Amazon
Sources: *InternetRetailing.net 9.12.2014
**learn.scrapehero.com/chart-count-of-products-in-amazon-us-for-major-categories, 2015
• Convenience isn’t just location.
It’s availability, speed of end-to-
end transaction including delivery
• Amazon move into shelf-stable
grocery and B2B
• Delivery is the battleground right
now. But the war is for Data.
48
secs
Premise: Consumers don’t
want inspiration
just convenience and efficiency
Amazon has more than
320m items available to order
in the USA alone**
On average consumers took
an average of 48 seconds to
make a purchase*
BLACK
FRIDAY
#commerce2020

14. So what do you do about Amazon?
You can
Partner and utilise Amazon’s
delivery capability and customer
access
Compete by creating your own
category-focused marketplace
Compete by differentiation of both
products and experience

15. InspirationTransaction
Inspiration-led experience
Shopping experience based on
DifferentiationCommodity
Utility Discovery

16. Inspiration-led commerce equals engagement
Shoppers want to be engaged
It’s not all about an
instant transaction
They’re inspired to share
their experiences
They use a
multitude of devices

17. Integrated
digital offering
Inspirational
content
VIP access to
product events
Image source: selfridges.com (1.Feb.2016)

18. Falling short conspires to costly failure
DifferentiationCommodity
Utility
InspirationTransaction
Discovery

19. The key differentiators
Harnessing the power of data to add
context to the shopping moment

20. The key differentiators
Developing and serving content that
inspires and leads to purchase intent

21. The key differentiators
Not just about convenience in terms
of speed and delivery but also the
multichannel experience

23. The Age of Programmatic Commerce
Where consumers and businesses allow technology
to make purchase decisions on their behalf based on
pre-programmed parameters and learned
preferences.
Growth of intelligent
products and devices +
Consumers
comfortable
to share data
Why Now?
=
Consumers confident to
allow devices to make repeat
purchases on their behalf
As defined by Salmon

25. The Age of Programmatic Commerce -
Clearer?
Where consumers and businesses allow technology
to make purchase decisions on their behalf based on
pre-programmed parameters and learned
preferences.
Growth of intelligent
products and devices +
Consumers
comfortable
to share data
Why Now?
=
Consumers confident to
allow devices to make repeat
purchases on their behalf
As defined by Salmon

26. 1. From consideration to automation
*Source: Kantar Worldpanel: Accelerating the growth of e-commerce: 2015 Edition
Instead of making careful considerations of their own, consumers
are relying on automation based on pre-configuration.
If results are within set parameters or tolerance, orders are made
automatically.
Role
Lock-in – Lock-out: What can the seller do to ensure they’re not
locked out?
Welcome to a new dawn for shopper marketing.
55% of online shoppers are using the same shopping list from
one purchase to the next*
Impact

27. Digital assistants will speed up the
decision-making for both
B2C and B2B buyers.
Continued improvement of voice
recognition will support this.
The new breed of buyers are comfortable
sharing their transactional data and have
digital assistants present options to them.
Role
Search and browse will fundamentally
change away from request-led to
recommend led.
Impact
2. The role of Digital Assistants

28. Anticipated ordering.
Balanced supply and demand.
Efficiency gains for supply chains and manufacturing.
Impact
Move from a “create demand” marketplace centered on
marketing, to an on-demand marketplace centered on
responding to a future of anticipating demand, based on
known patterns of behaviour.
Role
3. From demand creation to anticipation

29. What does this mean for you?
More B2B purchasing
will be automated and
role of salesperson
will be to enable
advance configuration
B2B
for
Retail
for
Online search will be
less of a focus as
automated searches do
the work for the buyer
FMCG
for
A new role for brand
marketing as
consumers get locked
in and consideration
disappears

30. What should you be doing ?
Take Action:
1. Get ready for
Peak
2. Focus on
Transaction vs.
Experience
3. Plan your
response to
programmatic
commerce
Recognize that Amazon will play a
major role across all industries and
have a strategy for this.
Spend time looking at the
opportunities and threats that
programmatic commerce brings.
Recognise that Amazon will play a
major role across all industries and
have a strategy for this.
2
Get ready for Peak (£5bn) and a world
where digital dominates and leads the
other channels.
Get ready for Peak (£5bn) and a world
where digital dominates and leads the
other channels.
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31. ©2016 Salmon Ltd. All rights reserved. All company and product names, brands and symbols mentioned herein are brand names and/or registered trademarks of their respective owners.
Neil Stewart
CEO, Salmon Ltd.
nstewart@salmon.com
Twitter: @salmonltd