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Global E Commerce Essay

3121 words - 13 pages

Global E-Commerce
Advanced Multichannel Expectations in Highly Developed Markets

Joanne Bethlahmy, Paul Schottmiller
Cisco Internet Business Solutions Group December 2011

Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public

Internet Business Solutions Group


Executive Summary
 Many retailers are ―going global‖
to capture a larger share of the $1.4 trillion e-commerce market  Leading-edge multichannel experiences are becoming the norm in highly developed markets around the globe  To compete, retailers will need to understand customers’ needs and expectations in each market, and deliver highly advanced multichannel experiences
Source: ...view middle of the document...

All rights reserved.

Cisco Public

Internet Business Solutions Group


Demographic, Lifestyle, and Technology Differences Impact Retail Expectations
Population density

 U.K. 8x and Korea 15x denser than U.S.

Retail Impact
 Fast shipping possible  Can’t leave packages at door  Need for available, less-expensive, alternative retail spaces

Small homes and refrigerators, long hours Higher degree of governmentmandated infrastructure

 U.S. homes 2.8x size of those in U.K., 2.3x vs. Japan
 Koreans spend 25% more hours working and commuting than Americans

 Need for frequent, flexible online grocery

 Widespread broadband, early 3G mobile and Near Field Communication capabilities

 Common use of mobile shopping and payments, leading-edge retail experiences

Sources: U.S. Census Bureau, International Database; Association of Home Appliance Manufacturers; Organisation for Economic Co-operation and Development (OECD) Stat; Morgan Stanley; Forrester Research, Inc., 2010; OECD iLibrary, August 2011;, 2010;, September 2010; Statistical Survey Department, Japan Statistics Bureau, Ministry of Internal Affairs and Communications, 2008
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public

Internet Business Solutions Group


Challenge: International Knowledge Gap in E-Commerce Operations
 Retailers need to understand
differences in shopping behaviors and expectations  However, executives often lack knowledge about international multichannel ―norms‖
– Multichannel initiatives often housed in HQ e-commerce or digital divisions – Online specialists may have little or no store or international experience – May assume they can just export existing ways of doing business

 Understanding international
norms and expectations can be the difference between success and failure
Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public

Internet Business Solutions Group



Current Multichannel Expectations in Developed Markets

Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public

Internet Business Solutions Group


New Retail Entrants Will Need To Meet Current Multichannel Expectations
Innovations that are commonplace today…

 Fast e-commerce delivery
    
and order customization Non-store pickup options Established online grocery Widespread mobile shopping and payments Technology-enhanced store experiences Non-traditional storefronts

Source: Cisco IBSG, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved.

Cisco Public

Internet Business Solutions Group


In Many Small Geographies, Consumers Expect Fast Delivery at Good Prices
 Small geographies enable packages to be delivered more quickly  United Kingdom and Asia have highly developed delivery infrastructures  In areas...

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