Growth and Impact of Globalization and E-commerce

Riah E. Encarnacionriah@act.edu.om

Growth and Impact of

Globalization and E-commerce

Is it a social phenomenon?Is it a cultural phenomenon?Is it a economic phenomenon?

What is Globalization?

It is an INTEGRATION of different societies, cultures and economies.

GLOBALIZATION in deeper sense

interconnectedness of the WORLD

through flows of INFORMATION, CAPITAL, and PEOPLE

facilitated by TRADE and POLITICAL openness

as well as INFORMATION TECHNOLOGY

FINANCIAL flows

cheaper and quicker TRANSPORT

size and power of CORPORATIONS

advances in new TECHNOLOGY

trade LIBERALIZATION

Technology / Internet is the main DRIVING FORCE of most of the globalization processes

What DRIVES Globalization?

Globalization could involve all these things!

Globalisation

But the spread of the INTERNET intensifies Globalization.

How the INTERNET dominates our lives?

Internet is linking businesses and individuals around the world into a common electronic network.

No. 1 medium during the day

No. 2 medium during the night

nearly 40 % of all users are online either at work or at home

more than 60 % of users are online for roughly two hours per day.

Internet population has doubled in 5 years

from 1.15 B in 2007 to 2.27 B in 2012

E-commerce is also growing

of the worlds Internet users have purchased something online.

internet researchers will make at least one purchase via the web.

E-commerce is the use of the Internet to buy, sell, or support products and services

WHERE ARE ONLINE SHOPPERS COME FROM?

WHO ARE THE MOST CRITICAL SHOPPERS?

Online shoppers up 3.3% from 2011.

85%

83%

PROJECTION IN 2012

Online buyers up 4.4% from 2011.

184.3M

154.6M

CONSUMERS ONLINE SHOPPING BEHAVIOR

Why consumers shop online?

What consumers buy online?

How much consumers spend online?

73% Time saving

30% Less Tax

59% Easy to compare prices

58% No crowd

67% More variety

40% Spend less on gas

55% Less prices

3% Other

29% Home & Garden

24% Health & Wellness

27% Cosmetics & Fragrances

22% Pet Supplies

26% Office Supplies

17% Automotive Tools

25% Luxury Goods

66% Books, Music & Video

29% Travel

60%Apparel

56%Electronics

33% Baby kids, Toys

23% Flowers, Cards, & Gifts

23% Sporting Goods

89% of consumers say they are Interested in using online coupons for online or in-store purchases.

in 2010

Americans

spent

$186billion

in

ONLINE

transactions

How much is online retail growth?

So what happens now?

Social media and Mobile devices dominate the Online Marketing Trend

Mobile Devices in 2012

Smartphones and Mobile devices rule the market

Social Mediain 2012

Mobile

Internet users-113.9M

phone users-242.6M

Shoppers 72.8M

Buyers 37.5M

next generation of smart phones will include Near Field Communication (NFC)

Smartphone

users-106.7M

Shoppers 68.6M

Buyers 36.4M

94% Smartphone Users will be Mobile internet users

TAblet

users-54.8M

iPad

users-41.9M

76.4% tablet users will be iPad users

Facebook

users 143.4 M

2/3 of web users will use social networks

90% of social network users will be on Facebook

SOCIAL NETWORKING

will continue to grow

the most popular online activity worldwide

Play a major role in lead generation

Leads in online display advertising

SOCIAL MEDIA

Mobile devices are fueling the socialaddiction

MOBILE DEVICES

MOBILE ADOPTION

CONTINUES TO SOAR

77%

of the planet owns amobile device

Of the worlds

4 Billion

mobile phones in use,

1.08 billion

are smartphones

and a whopping

3.05 billion

are SMS enabled

25%

27%

75%

By the end of 2012, more than

,

,

5

0

0

0

0

0

0

0

0

SMARTPHONES

are expected to flood the market

MOBILE SIGNALS

MASSIVE OPPORTUNITY FOR EBUSINESS

$

By 2015 mobileonline shopping willreach $163 BILLIONworldwide

34%

of mobile shoppers make $100,000 or more a year

56%

OF THE PEOPLE BELIEVE THAT MOBILE CAN MAKE THE SHOPPING EXPERIENCE MORE ENJOYABLE

CAN YOU AFFORD NOT TO OPTIMIZE?

80%

OF CUSTOMERS ABANDON A MOBILE SITE IF THEY HAVE A BAD USER EXPERIENCE

* average satisfaction was identified to be 76 out of 100 rating point

Top RETAILER WEBSITES and their satisfaction scores from MOBILE SHOPPERS

WEBSITE

SATISFACTION

STORE.APPLE.COM

85

83

84

88

78

80

77

79

77

80

77

80

76

78

75

83

What are companies currently budgeting?

25% Social Media

20% PPC

TOP OBJECTIVES

DIGITAL MARKETING PROGRAMS

IMPACT ON LEAD GENERATION

#2Increase Awareness

Generate Leads

#3Increase Revenue

#1

#2Increase Revenue

Increase Awareness

#3Generate Leads

#1

59% SEO

99% SEO

21% Social Media

26% PPC

PREVIOUS MARKETING SPEND

FUTURE MARKETING BUDGET

increase of budget for SEO

increase of budget for Social Media

increase of budget for Mobile

60.3% Search Marketing

29% Display Marketing

4.16% E-mail Marketing

4.1% Social Media marketing

2.36% Mobile Marketing

What should you do to stay global?

Localize your site

EASIEST

DIFFICULT

Convert your site to culturally-relevant content

Employ multi-lingual customer service

Convert your site to local languages

Add multiple currencies to your site

Determine and inform customers about local tariffs

Find a way to ship globally

What global trends does eBusiness expect to see in 2012?

More brands will sell direct in international markets.International shippers will focus on consumers in specific markets.eCommerce companies Tier 1 markets will include multiple emerging markets.BRIC will still be the acronym, but CBIR will be the order.The mobile commerce gap will narrow substantially on global offerings.

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REFERENCES