Making Leaders Successful
Every Day
Winning Over The Global Online
Shopper
Five Things Companies Must Do To Tap Into
Growing International Markets
Zia Daniell Wigder, Vice President & Research Director
September 6, 2012
Agenda
Global eCommerce markets and how
they evolve
Five things companies must do to tap
into these growing markets
Conclusion
© 2012 Forrester Research, Inc. Reproduction Prohibited
3
Agenda
Global eCommerce markets and how
they evolve
Five things companies must do to tap
into these growing markets
Conclusion
© 2012 Forrester Research, Inc. Reproduction Prohibited
4
Emerging markets see the fastest growth
in online users
North America
281M online users
Penetration: 80%
Europe
503M online users
Penetration: 62%
Latin America/
Caribbean
244M online users
Penetration: 40%
= Population (2012)
= Online users (2012)
Source: Forrester World Online Population Forecast
Middle East/ Africa
263M online users
Penetration: 20%
Asia/Oceania
1,133M online users
Penetration: 29%
eCommerce revenues do not necessarily
correlate with economic size
United Kingdom
$49B
Japan
$64B
Germany
$32B
United States
$226B
China (incl C2C)
$169B
Mexico (incl C2C)
$1.7B
India (incl C2C)
$1.6B
Brazil (incl C2C)
$12B
Argentina (incl C2C)
$1.9B
Source: Forrester Online Retail Forecasts
Countries tend to follow a similar
eCommerce adoption path
Countries are at different stages on
this adoption path
The number of categories that consumers
purchase online will increase
Agenda
Global eCommerce markets and how
they evolve
Five things companies must do to tap
into these growing markets
Conclusion
© 2012 Forrester Research, Inc. Reproduction Prohibited
10
1. Don’t let your
international fields lie
fallow
© 2012 Forrester Research, Inc. Reproduction Prohibited
Source: Hairtoday.wordpress.com
11
Today, these examples are the exception
rather than the rule
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Paid search is an easy first step, yet
many are still getting started
100%
50%
40%
10%
© 2012 Forrester Research, Inc. Reproduction Prohibited
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2. Realize that
marketplaces are a key
entry strategy in certain
markets
© 2012 Forrester Research, Inc. Reproduction Prohibited
Source: Telegraph.co.uk
14
Chinese brand Ochirly offers three
different branded stores in China
Ochirly.com
Tmall.com
Amazon.cn
Logitech has a branded store on Amazon
in France and Germany, but not the UK
Amazon.fr
Amazon.de
Ugg and Bose have branded stores on
Australian marketplace Westfield.com.au
Marketplace options for brands are at
different stages around the globe
Region
Importance of
marketplace
strategy
Some marketplace options
for brands
AsiaPacific
High
Tmall and Amazon in China;
Rakuten in Japan; Westfield in
Australia
North
America
Medium
Amazon and eBay brand
stores in US
Europe
Medium
Amazon brand stores in UK,
France, Germany; eBay
Fashion Gallery in UK
Latin
America
Low
Middle
East
Low
MercadoShops across region,
developing initiatives like
Otto/Posthaus in Brazil
Local players like Souq.com
Established
offerings
for brands
Emerging
offerings
for brands
3. Understand
what mobile is
– and isn’t
© 2012 Forrester Research, Inc. Reproduction Prohibited
Source: Telegraph.co.uk
19
Consumers are making purchases on
their mobile devices in some sectors
Source: Txt4Ever
The power of mobile shopping is not in
the transactions on the device
Country
Likelihood of using
mobile devices for
shopping
Most popular mobile
usage for shopping
Brazil*
Low
Check store hours, locate
nearby store
France
Low
Check store hours, locate
nearby store
US
Medium
Check store hours, locate
nearby store
UK
Medium
Check store hours, locate
nearby store
Mexico*
Medium
Check store hours, look up
product information
China*
High
* Metropolitan shoppers surveyed
Read customer reviews,
check on order status
Tablets will open up new mobile
commerce opportunities
4. Don’t just focus on your own
site - be aware of how
wholesale partners are selling
your products online
Source:
SBWarehouse.com
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Research, Inc. Reproduction Prohibited
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Channel partners provide a key part of
your global customers’ experience
Source: BestBuy.com, Amazon.com, BedBathAndBeyond.com, Zazzle.com
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5. Hire global skills – even
when your business isn’t
yet global
© 2012 Forrester Research, Inc. Reproduction Prohibited
Source: VSee.com
25
All the businesses in your sector will be
looking to hire the same people in market
Source: The Wall Street Journal, The Brazil Business
© 2012 Forrester Research, Inc. Reproduction Prohibited
26
Take advantage of those in the US with an
international background and knowledge
© 2012 Forrester Research, Inc. Reproduction Prohibited
Agenda
Global eCommerce markets and how
they evolve
Five things companies must do to tap
into these growing markets
Conclusion
© 2012 Forrester Research, Inc. Reproduction Prohibited
28
Conclusion
1. Ensure you provide your global
initiatives with support
2. Evaluate the opportunity presented by
other business models like marketplaces
3. Embrace the true power of mobile, not
the hype
4. Examine the performance of your
channel partners
5. Establish a global team – in the US
© 2012 Forrester Research, Inc. Reproduction Prohibited
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Thank you
Zia Daniell Wigder
+1.212.857.0792
zwigder@forrester.com
@zdwigder