Here's my tips for the big trends we're seeing in e-commerce, digital marketing and social media in technology companies (focused on Asia) in 2012. This is based specifically on what I've learned at Dell (managing their e-commerce sales in the region) and on what I see happening in Asia with other technology companies (such as Lenovo, Apple, HP, IBM, Acer, Blackberry, Nokia, etc.).
Buying and e-commerce is becoming more fragmented (particularly for tech companies corporate e-commerce enabled websites) – E-Commerce as we know it is in a death spiral. It just doesn't make sense to build an OEM direct e-commerce website like Dell did in the 1990's. E-Commerce will become more fragmented and dominated by eTailers and new types of online buying. It might seem like a strange statement considering the massive move from traditional to digital sales but consider Dell's example. Dell already has a market leading position online in the technology space. In Asia, Dell has the number 1 Online market share via Dell.com. Dell cannot increase this, it can only be eroded and share will be lost over time. It's not all bad news though, because at the same time, eTail revenue is growing exponentially, with players like Lenovo in China growing in triple digital quarter-on-quarter online (and not through Lenovo.com). There is also a rise in Group Buying, such as in Australia where it is now driving over $500m of Group Buying transactions/year. Serious contentors need to have a product and content strategy that is multi-channel across a company's website, eTail, Social Commerce and Mobile. To win in e-commerce tech companies must think of e-commerce as a transaction from ANY platform - not just an e-commerce enabled corporate site. Customers have evolved and their preferences have changed. Tech companies need to adapt and try new things to stay ahead of customer demand.
Simplify and clearly differentiate our offering for specific customer segments – Many tech companies have too many different products and are confusing customers. At the same time, so many tech companies do not have any real product differentiation (in Dell's case, what is an Inspiron vs Latitude? For HP what's the difference for their Compaq vs Envy brands?). Tech companies should take a leaf out of Apple's strategy on simplification. But for true success in 2012 tech leaders will need to both reduce and simplify their product offering and have a specific digital go-to-market plan for identified customer segments. Real winners in this area will have personalisation programs and social sign-in to truly have a one-on-one customer relationship (while being able to share that relationship with the customer's friends).
Everything is going social – How people communicate and buy technology is becoming fundamentally social. Tech companies need to take a leaf out of eBay’s strategy, where buyers are rated, sellers are rated and products are reviewed – their entire experience is social and reliant on user-generated content. Outside of a company's website, you need to think about how to more closely integrate into Facebook (with 800m global users), LinkedIn (more than 150m professionals), RenRen (over 120m Chinese consumers), Cyworld, Mixi, Mobage, Gree (the latter few for gamification - a critical element of social e-commerce in markets like China) and microblogging services like Twitter, Sina Weibo and QQ Weibo.
Everything is going mobile – There are now more mobile users than Internet users. Mobile Internet users account for 60%+ of social network usage, are driving new retail loyalty location-based services like Foursquare and will bridge the divide between physical retail stores and e-commerce. Customers are now using mobile devices to walk into retail stores to scan bar codes, compare product specs and prices and gather recommendations from people who have bought the same product (word-of-mouth, ratings & reviews, social media). There is also huge increase in the amount of traffic coming into a company website and managed community properties via mobile internet. You need clear plans for integration with mobile in 2012.
Customers are demanding are a more Retail-like experience from Online – With the rise of retail and eTail, customers are demanding to touch and feel products, have all payments options (including cash, bank transfer, credit card, PayPal, etc.) and have either take home or immediate delivery (same day or within the same week). eTailers (such as Taobao in China) have the ability to compare products, great learning content (including images and videos), cash payment options and same day delivery. Customers now expect this and most tech companies need to play catch up to get there in 2012.
Content needs to be “portable” and usable in different platforms – Currently most company's view of content is limited to product information and is located only on its website. This is particularly true of e-commerce companies. You need to consider how to take excellent content and make it available where your customers are (for a B2B company: on LinkedIn, in the company managed social sites, in communities, in Webinars/virtual events, etc.). IBM do an excellent job of this and more companies need to learn from their example.
2012 is the year of the dragon. It's a very auspicious time that will be a breakthrough year in e-commerce for those with the courage to try new things, truly embrace social and mobile, and make eTailers your best friends.
Digital Future explores marketing transformation. Specifically, the move from traditional to digital marketing - covering topics like digital marketing, mobile, social media, search marketing, e-commerce, digital advertising and online strategy.
Search: Digital Future
Showing posts with label e-commerce. Show all posts
Showing posts with label e-commerce. Show all posts
Monday, 9 January 2012
Thursday, 29 December 2011
Two Old School Technology Prediction Fails (Telephone & Radio)
I was reading and came across these two fantastic quotes from nay-sayers on new technology. It's easy to imagine similar thoughts being expressed about e-commerce, mobile and more recently social media. The moral is to keep an open mind and be a continuous learner, not overly relying too much of your current expertise and history to-date, otherwise you could end up in the spectacular fail club below.
“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” —Western Union internal memo, 1876.
“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?” — David Sarnoff’s associates in response to his urgings for investment in the radio in the 1920s.
“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” —Western Union internal memo, 1876.
“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?” — David Sarnoff’s associates in response to his urgings for investment in the radio in the 1920s.
Tuesday, 13 July 2010
Online Shopping Rising in Asia with 60% of Shoppers Influenced by Social Media
By Kristie Thong, Marketing Magazine. 13th July 2010.
A recent global Online Shopping Report by The Nielsen Company finds Asia Pacific consumers direct more of their shopping expenditure online than the global average. 35% of Asia Pacific consumers direct 11% to online spend, as compared to the 27% global average. Only 13% of Asia Pacific consumers say they had never shopped online, compared to 16% globally.
Online-only retail sites are most popular among Asia Pacific online consumers, with close to one third of them reporting to have made online purchases from retail sites with an online-only presence. Meanwhile, 30% say they frequent sites which allowed them to select products from many different stores.
"Technology and the Internet will very likely fundamentally change how and where shoppers spend their money and interact with retailers," says Pete Gale, managing director of Nielsen's Retailer Services in APIMEA and Greater China.
"Increasingly, as consumers look for more convenience and 24/7 access to products and services, this is a great opportunity for retailers to redefine their channel strategy in order to meet the changing needs and wants of consumers."
Sixty percent of Asia Pacific consumers use social media sites to help them make purchase decisions, compared to 43% globally. Asia Pacific consumers indicate that online reviews and opinions are most important when purchasing consumer electronics, cosmetics and cars.
Asia Pacific consumers are also most likely to share a negative product experience online, with 49% saying they are more likely to give a negative review than a positive experience. This tendency is highest among consumers in China (62%), Vietnam (46%), Singapore and India (both 44%).
"Any organisation offering a consumer product or service in today's marketplace is open to scrutiny from every angle, and it is critical that these organisations not only understand those consumers, but effectively engage and communicate with them," advises Megan Clarken, Asia Pacific managing director of Nielsen's online division.
- Asia Pacific consumers most active online shoppers
- Online-only retail sites most popular
- 60% use social media sites to make purchasing decisions
A recent global Online Shopping Report by The Nielsen Company finds Asia Pacific consumers direct more of their shopping expenditure online than the global average. 35% of Asia Pacific consumers direct 11% to online spend, as compared to the 27% global average. Only 13% of Asia Pacific consumers say they had never shopped online, compared to 16% globally.
Online-only retail sites are most popular among Asia Pacific online consumers, with close to one third of them reporting to have made online purchases from retail sites with an online-only presence. Meanwhile, 30% say they frequent sites which allowed them to select products from many different stores.
"Technology and the Internet will very likely fundamentally change how and where shoppers spend their money and interact with retailers," says Pete Gale, managing director of Nielsen's Retailer Services in APIMEA and Greater China.
"Increasingly, as consumers look for more convenience and 24/7 access to products and services, this is a great opportunity for retailers to redefine their channel strategy in order to meet the changing needs and wants of consumers."
Sixty percent of Asia Pacific consumers use social media sites to help them make purchase decisions, compared to 43% globally. Asia Pacific consumers indicate that online reviews and opinions are most important when purchasing consumer electronics, cosmetics and cars.
Asia Pacific consumers are also most likely to share a negative product experience online, with 49% saying they are more likely to give a negative review than a positive experience. This tendency is highest among consumers in China (62%), Vietnam (46%), Singapore and India (both 44%).
"Any organisation offering a consumer product or service in today's marketplace is open to scrutiny from every angle, and it is critical that these organisations not only understand those consumers, but effectively engage and communicate with them," advises Megan Clarken, Asia Pacific managing director of Nielsen's online division.
Subscribe to:
Posts (Atom)