aimia future of digital - future of online retail

The Future of Online Retail

Tim O’NeillJoint Managing Director, Reactivewww.reactive.com

ABOUT REACTIVE

• Independent digital agency with a focus on;– Web strategy, design & development– eCommerce– Social media

• Running for 12+ years• Melbourne, Sydney, London & Auckland

The Global Threat

“Australians spent $23b online in 2008, with estimated growth of 9% annually to $32b by 2012”

Forrester Research, 2009

But…

“…In 2005, Australian online shoppers reported making 86% of their total spend in Australia, but by December 2008 this had dropped to 57%...”

Australian Payments & Clearing Association, July 2009

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International Retail Websites

Local Retail Websites

Exchange Rate

Source: Experian Hitwise, October 2009 and www.rba.gov.au

INTERNATIONAL VS AUSTRALIAN ONLINE RETAIL

- Exchange Rate

The Global ThreatSo, what is the…

Social Shopping

AUSSIES LOVE FACEBOOK

• Australians spend on average 8 hours/month on Facebook

• Australians spend more time on average per month using social media than any other country

• 8 million Aussies on Facebook

Nielsen Online, 2009

Mobile Commerce

• Still in it’s infancy in Australia

• Huge growth potential

• International retailers using m-commerce include; Ralph Lauren, Victoria’s Secret, Sears, Net-A-Porter and Galeries Lafayette

MOBILE COMMERCE

• Barriers to buying on mobile devices;– Difficult to purchase with a credit-card

– Most B2C retailers don’t store credit-card details, or allow purchase ‘on account’

– Hence, a lack of compelling Australian m-commerce case studies

– But...

MOBILE COMMERCE - BARRIERS

91% of Australian online shoppers have purchased online with a credit card. 51% prefer this method.

Nielsen Australian Online Retail Monitor

• Location-aware shopping

• Always on, always with you

• Vouchers saved on phone, used instore

• QR codes / Microsoft Tag

• Micro-payments within Applications

MOBILE COMMERCE – OTHER OPPORTUNITES

Product Visualisation

Retail Environments

Personalised Experiences

• Single view of the customer• Reserve online, pick up in store• Buy online, get customer service instore, • Call up and have someone be able to see your

online orders, etc.

MULTI-CHANNEL RETAILING

DISCLAIMER… GET THE BASICS RIGHT FIRST!

• Product• Promotion• Conversion

The Global Threattim.oneill@reactive.com@timwoneillwww.reactive.com