Internationalisation
of the Online Retailer
Effectively accessing emerging
e-commerce and m-commerce markets
ALEX HAMILTON
Senior Custom Research Analyst
LEE LINTHICUM
Custom Research Director
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PlanetRetail.net
Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
Contents
1. Introduction
1
2. Online Shopper Drivers
2
3. Implications of Online Retailing Growth
4
4. Online Shopper Insights
6
5. Future Outlook
15
6. Conclusions
17
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
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PlanetRetail.net
Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
1. Introduction
T
he past decade has seen online selling leap up the list of priorities for almost all domestic and multinational
retailers worldwide, led by the rapid development and consumer adoption of the internet as a means of trade
and interaction. Shoppers in developed regions were first to embrace online retailing. Consumers in emerging
markets, such as Brazil and China, soon followed, but now present an even bigger online retailing opportunity than in
more mature markets. How to effectively access these emerging markets via the online channel has quickly become
an urgent strategic priority for retailers.
$
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
2. Online Shopper Drivers
A: Speed and Price of Online Access
Whereas internet access globally was relatively low at the turn of the century, economic development over the past
decade has driven the required investment in infrastructure to support online commerce. Around one-third of the
global population is now online, according to latest estimates, with growth largely driven by developing markets.
Online commerce now forms a key part of retailer strategy. The price of internet connectivity has also come down
sharply, further driving the online commerce push.
Today’s Complex Online Experience
Watch
video on
mobile
Download
mobile app
Compare
shop online
Search
Facebook
‘Like’
YouTube
video ad
Buy item
• Recent developments now mean that online shopping
has become increasingly complex.
• It now forms a tangled web of different options and
engagement points that ultimately influence the
shopper decision.
• Retailers must offer a fast and seamless online offering
if they are to navigate this complex web and secure a
purchase.
Demo
product
instore
View
print ad
Read
reviews
Shop on
website
Read
blog
Watch
tutorial
View
banner ad
B: M-commerce
The traditional path to purchase has been further impacted by the rise of mobile technology, which is having a profound
effect on the retail landscape.
Mobile Path to Purchase
Search
• Mobiles have made the process of shopping more
relaxed.
Choose
Go
Instore
Buy
Instore
• The ability to check product availability and offers,
read reviews, research, and alter products selected
has empowered shoppers and made the path to
purchase far less linear.
Mobile
Go
Online
Buy Online
Compare
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August 2013
• Thanks to mobile technology shoppers can collate
information from multiple sources anytime and
anywhere.
Choose
PlanetRetail.net
Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
C: Experience, Personalisation, Personality and Localisation
Beyond greater online access via PCs, mobile phones and tablets, other more intricate factors are playing a critical role
in promoting online shopping:
Personalisation - retailers are looking
at ways to make the online shopping
experience as personalised as possible.
Linking instore loyalty programmes and
online shopping is one way retail players
are looking to offer a more personalised
experience - essentially connecting online
engagement with offline behaviour.
Experience - the online shopping
experience needs to be seamless
and smooth. A slow and unwieldy
path to purchase will frustrate
and confuse the shopper, putting
any eventual sale at risk.
PERSONALISATION
EXPERIENCE
SHOPPER
DRIVERS
LOCALISATION
Localisation - rather than rolling out one
global website, retailers are increasingly
launching dedicated portals for individual
countries. UK retailer Tesco has been
introducing dedicated online shopping
sites across a host of markets, including
China. Meanwhile, apparel e-tailer ASOS
recently went live with a dedicated site in
Russia and has plans to do the same for
China towards the end of 2013.
PERSONALITY
Personality - retailers are looking to add
a personal touch to their online offerings.
Footwear retailer Schuh offers a live chat
function to encourage direct interaction,
for instance, while a number of clothing
retailers offer expert fashion trend and
insight assistance.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
3. Implications of Online
Retailing Growth
Wider Retail Landscape
Online as a sales channel is set to explode over the next five years. Although growth will remain strong across the
developed markets, rates of expansion globally will be spearheaded by the less developed emerging nations.
The BRIC markets (Brazil, Russia, India and China) are set to lead the pack. As a case in point, the online sales
compound annual growth rate (CAGR) for 2012-17 is set to run at a robust +56.2% for India.
BRIC Markets Lead Online Growth Charge
$14.1bn
Total online sales in 2012
Total Online
Sales
+7.7%
1.8% 2012
4.3% 2017f
Total Sales
CAGR 2012-17f
+31.6% Online
CAGR 2012-17f
$1.55bn
Total online sales in 2012
Total Online
Sales
+13.7%
0.2% 2012
0.9% 2017f
Total Sales
CAGR 2012-17f
+56.2% Online
CAGR 2012-17f
$11.0bn
Total online sales in 2012
Total Online
Sales
1.7% 2012
6.1% 2017f
+9.0%
Total Sales
CAGR 2012-17f
+33.7% Online
CAGR 2012-17f
$94.3bn
Total online sales in 2012
Total Online
Sales
4.2% 2012
9.0% 2017f
+12.8% Total Sales
CAGR 2012-17f
+29.6% Online
CAGR 2012-17f
Note: f - forecast; Source: Planet Retail
Online Retailing Value CAGR, 2013-2017f
15.7%
UK
15.2%
USA
15.0%
14.4%
France
Germany
31.6%
Brazil
Note: f - forecast; Source: Planet Retail
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August 2013
33.7%
Russia
56.2%
India
29.6%
China
13.1%
Japan
PlanetRetail.net
Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
Retailer E-commerce Strategies
More and more bricks and mortar retailers are moving online in a bid to drive sales growth and meet burgeoning
consumer demand for internet shopping. Retailers that already have an established online presence in a handful of
markets are also expanding their offering, especially to emerging markets.
UK grocer Tesco is one such retailer that has taken this step. By 2014, the retailer aims to operate grocery
e-commerce across nearly all its markets (with the exception of Saudi Arabia and India).
2012
2014
2013
October
November
March
April
June
...and beyond
Debuts online
grocery in Slovakia
Begins grocery click
& collect trials in
Czech Republic
(above left)
Launches Hungarian
grocery e-commerce
Officially launches Thai
grocery e-commerce
(above right)
Launches online
in China
A Turkish trial is
expected in early 2014
Malaysia - to expand
grocery e-commerce
in phases
Online Retailer Strategy: Carrefour
France is Carrefour’s only
virtual operation of some
substance. CEO Georges
Plassat is looking to reposition the
French online operation in order to
create more synergies with physical
stores and vice versa.
Internationally, strategy
and performance has been
mixed. In 2013, Carrefour
introduced an online operation in
Romania, but it pulled the plug on its
Brazilian counterpart the year before.
In Poland, Carrefour
says it has no plan to
go online, stating: “All
e-stores are losing huge amounts
of money at the moment.”
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
4.Online Shopper Insights
Encouragers/Discouragers of Online Spend in Emerging Markets
With the BRIC markets assuming increasing importance in the online retailing world, greater and more detailed
understanding of how shoppers in these markets interact with online platforms will position retailers looking to
expand their operations one step ahead of the competition.
Inevitably, the path to online purchase in the BRIC markets will grow in complexity as a result of ongoing
development. This means that the reliability, speed and security of internet connections will become fundamental in
determining the ultimate popularity and success of online shopping.
General E-commerce
Faster Internet Access
Planet Retail research shows that almost 25% of survey respondents in China and India stated that they would be more
likely to shop online had they faster internet access. Given the size of each country’s population, improved internet
speeds and enhanced service standards offer immense potential to widen the online shopper base considerably.
Online Access Relative to Potential Online Spend (%)
Faster internet access would encourage me to spend online
Source: Planet Retail
In India, 53% of those surveyed by Planet Retail rated speed of internet access as an online shopping influencer as
‘extremely’ important, compared to 35% stating that it was ‘quite’ important. Although a sizeable proportion of
shoppers in the remaining BRIC countries and Japan agreed that enhanced internet access would push them to spend
online, they generally ranked this influencer lower than in India in relative terms.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
How Would You Rate ‘Speed Of Internet’ Access as an Online Shopping Influencer? (%)
Extremely important
Quite important
54%
Russian online
shoppers
prioritising quick
and easy to use
websites and
checkout
Source: Planet Retail
Quick and Easy Use of Websites
When consumers worldwide were asked if quick and easy to use websites and checkout processes were important
when buying online, a majority ranked this highly in terms of overall influence.
Shoppers in China (64%) and Brazil (63%) commented that this was most important. Interestingly, and by way of
contrast, consumers in France (8%) displayed little appetite for fast access, which reflects the fact that French shoppers
are more concerned with fulfilment and flexible product collection options.
Quick and Easy To Use Websites and Checkout Processes Are Important When Buying Online (%)
Overall influence
Source: Planet Retail
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
Online Security
With regards to general e-commerce, nowhere did the Planet Retail data show as marked a contrast between
developed and emerging markets as in questions related to online security. When asked if concerns around fraud
discouraged online buying, around 60% of shoppers in Brazil, China and India reported that this was true. In
comparison, consumers in the developed world were far less concerned with online fraud.
Do Concerns Over Online Fraud Discourage You From Buying Online? (%)
Worried about fraud online
Source: Planet Retail
Online Retailer Strategy: Casino
Number two in Brazil with
consumer electronics web
banner Nova Pontocom.
Launched deliveryextra.com.br, an
online grocery service from its Extra
hypermarkets, last year.
Casino has the leading
position in Colombia with
Exito.com.
Casino is the most complete
multi-channel retailer in
France. Realising additional
bricks and clicks synergies is a top
strategic priority.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
With this in mind, shoppers in BRIC markets reported that they would be more inclined to shop online if there was
better security to protect against identity theft. Again, the importance of this for developed-market shoppers was
smaller, largely indicative of the fact that online retailing enjoys a solid track record in these markets as regards safety
and security. This has raised consumer confidence to the point where at times it does not even factor into their
online purchasing decisions.
Inclination to Shop Online if Identity Theft Security was Improved (%)
If there was more security to protect identity theft
Better
online
security
would prompt
more BRIC
shoppers to
shop online
Source: Planet Retail
Online Retailer Strategy: M&S
Marks & Spencer operates an
e-commerce website in the
UK and launched a dedicated
French site in 2011.
In September 2012, the retailer
announced plans for a broader
online push into new markets,
with a view to launch fully localised
websites in each.
In November 2012, M&S
launched fully localised websites
across Spain, Germany, Austria
and Belgium, followed by Luxembourg and
The Netherlands earlier this year. Each site
trades in euros and offers local language,
payment and delivery options.
The retailer launched a Chinese
version of its homepage at
the start of 2013, along with
a virtual storefront on Tmall, the nation’s
largest online marketplace.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
M-commerce
Faster Internet Access
Technology is increasing the convenience of buying products online, leading to a transfer of spend to mobile devices,
namely smartphones and tablets. Relative to their counterparts in developed markets, shoppers in BRIC countries
are in general far more willing to use mobile as a means of shopping if the internet connection via mobile phone
was faster. In part, this reflects infrastructural differences between developed and developing markets, but also
demonstrates a generally greater consumer hunger for rapid m-commerce platforms across BRIC markets.
Likelihood of Shopping Via Mobile if Internet Speed was Faster (%)
If the connection to the internet via my mobile was faster
Source: Planet Retail
With regards to ranking ‘faster internet’ as a factor encouraging people to shop online via mobile, BRIC market
shoppers generally placed greater importance on this enabler than their developed market counterparts. For example,
62% of Indian respondents reported that ‘faster internet’ with regards to mobile was ‘extremely important’, compared
to only 28% of Japanese surveyed.
Rating ‘Speed of Internet’ Access as an M-Commerce Shopping Influencer (%)
Extremely important
Quite important
Source: Planet Retail
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
Quick and Easy Transactions
In general, shoppers in the BRIC markets also rated the ability to conduct quick and easy transactions as a factor
encouraging consumers to purchase online via mobile higher than consumers in developed markets. For Brazil and China,
54% of shoppers stated that this factor was ‘extremely’ important, while 61% of Indian shoppers reported the same.
Rating ‘Ease of Transactions’ as an M-Commerce Shopping Influencer (%)
Extremely important
Quite important
50%+
BRIC shoppers
say ease of
transaction
an extremely
important
m-commerce
influencer
Source: Planet Retail
Online Retailer Strategy: Walmart
Operates transactional
sites in 10 markets
globally. Aims to grow
global online sales to USD9 billion
by the end of 2013.
Focus is primarily on
general merchandise,
given the high costs
involved in grocery e-commerce.
That said, a grocery site has
been running in selected cities
since 2011.
Big opportunity. Present
with Samsclub.cn
(launched 2010) and
Yihaodian.com (majority stake),
China’s largest online food retailer.
The latter will look to leverage
Walmart’s GM expertise as it adds
new categories online.
Most established
market, both in
food and general
merchandise. Future growth
to come through mobile
enhancement and grocery
click & collect, followed by a
nationwide roll-out in 2013
covering 98% of postcodes.
Focus is purely on
general merchandise,
as online in Brazil
grocery tends to be limited to more
premium-positioned retailers.
Walmart launched
Walmart.com.mx
earlier this year.
The e-commerce site offers
more than 5,000 items.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
M-Commerce Security
Interestingly, m-commerce security was a bigger deterrent to mobile buying for developed markets in relation to the
BRIC countries, as the chart below illustrates. It was also generally a bigger concern, in relation to all concerns, for
developed market shoppers.
We must remember that developed market consumers have been regular e-commerce shoppers for some time
now, while online shopping is still a fairly new concept for many BRIC consumers. By contrast, mobile shopping is
uncharted territory for both developed and emerging markets.
As such, the uptake of m-commerce has been more rapid by BRIC consumers compared to developed market
shoppers given strong rates of technological adoption for smartphones and tablets. One result of this robust and
rapid uptake is greater trust in shopping and making payments via mobile phone in emerging markets.
Trust in Paying Via Mobile Phone Online (%)
I do not trust paying via my mobile phone online
Source: Planet Retail
Focus on M-Commerce in China
The size of the online prize in China has been well documented. Although the rate of growth is not perhaps as high as
in other BRIC markets, the overall market potential remains huge. This has prompted a host of retailers to establish
online operations in the country over the past few years.
Chinese shoppers are embracing m-commerce, but the vast majority of China’s population still do not own a
smartphone. This means that considerable scope exists for growth in the years ahead. The speed and security of
m-commerce will therefore continue to grow in importance.
When asked: would you be encouraged to spend on mobile if you felt safe and secure about making a transaction?
Chinese shoppers responded ‘yes’ more than all other country consumer groups.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
Encouragement Towards Mobile Spend Related to Transactional Security (%)
If I felt safe and secure about making a transaction online using my mobile phone
Identity
theft
protection
is the top
m-commerce
concern in China
Source: Planet Retail
Indeed, Chinese shoppers, across all age groups, stated that ‘identity theft protection’ was the greatest concern
for them regarding m-commerce, followed by ‘safe & secure card payments’ a close second - as evidenced in the
infographic below. This highlights a strong awareness among Chinese shoppers as regards online security. Mobiles
play an integral part in the shopping experience in China. Retailers must therefore ensure that they fully address
consumers’ security concerns and endeavour to educate them on all aspects of transactional safety surrounding
m-commerce.
18-34
35-54
55+
62%
58%
53%
52%
50%
Identity
theft
protection
Safe &
secure card
payments
Convenient
to get
purchases
Mobile
optimised
websites
Cheaper
internet
connection
63%
60%
55%
54%
53%
Identity
theft
protection
Safe &
secure card
payments
Cheaper
internet
connection
Mobile
optimised
websites
Easy
refund
process
70%
67%
65%
63%
55%
Identity
theft
protection
Safe &
secure card
payments
Easy
refund
process
Convenient
to get
purchases
Quick
& easy
returns
Source: Planet Retail
It must be remembered, however, that the Planet Retail survey found that a considerable proportion of Chinese
shoppers would be encouraged to shop via mobile if internet speed was faster. Ultimately, this means that
enhanced security of transactional websites should not act as drag on speed. Consumers in China demand both in
equal measure.
August 2013
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
Speed
is essential to the
ultimate success
of online retail
operations in the
BRICs, especially
China and India
Key Takeaways
The Planet Retail online shopper study clearly highlights the level of importance placed on fast internet access/
browsing and purchase speed by consumers worldwide, but particularly in the BRIC markets.
Key points to highlight include:
• Shoppers in the BRIC markets generally ranked ‘faster internet access’ higher than their counterparts in developed
nations in terms of swaying their decision to spend online.
• Of those emerging markets covered by Planet Retail’s survey, shoppers in China and India placed most importance on
internet speeds in order to browse and purchase products online.
• Quick and easy to use websites and checkout processes are generally more important to BRIC shoppers as an eand m-commerce shopping influencer, in comparison to developed-world consumers in markets like the US, UK,
Germany, France and Japan.
• Security concerns with regards to e-commerce were greater among BRIC shoppers relative to developed-market
consumers. By contrast, the opposite holds true for m-commerce. This divergence most reflects the established
nature of e-commerce in developed markets, compared to the infancy of the channel in BRIC countries, and the
relative nascence of mobile retailing in both.
In summary, speed is essential to the ultimate success of online retail operations in
the BRIC markets, but most evidently in China and India. Many retailers are
opting to run on a content delivery network (CDN) over the public internet. A
CDN ensures reliability, availability, and faster response time of all website
functionality from initial download to purchase. It does this by both
caching static content on globally distributed points of presence and
accelerating dynamic content across the ‘middle-mile’ of the internet.
Security is also important, but ultimately not at the expense of
speed. All these considerations are important for retailers to
consider when expanding online operations in emerging markets.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
5. Future Outlook
Emerging Markets - M-Commerce the Driving Force
Looking forward, emerging markets are set to drive growth in online shopping, specifically via m-commerce. When
it comes to shopping online using mobile telecoms in the future, 31% of respondents overall stated that they were
likely to increase the amount spent via mobiles. As mentioned earlier, this is much higher in emerging markets, most
notably in India at 56%. The implication appears to be that emerging markets have seemed to have jumped from
traditional e-commerce straight to m-commerce.
With more than simply affluent consumers now beginning to access the internet via their phones, these devices are
sure to play a huge role in powering online spending going forward. Unlike countries such as the US and UK, where
use of mobiles will result in transference of spend from traditional devices, mobile phones in emerging markets are
set to provide a substantial fillip to overall online sales growth.
BRIC markets are most likely to shop online via mobile moving forward
Likelihood of spending online via mobile in the future (%)
Extremely Likely
Very Likely
Likely
Not Very Likely
56%
35%
29%
19%
52%
34%
22%
14%
30%
20%
Developed Markets - Building a Seamless Retail Experience
In developed markets, shoppers’ desire for convenience coupled with technology take-up is blurring channels.
Forward-thinking retailers are embracing e- and m-commerce, seeking to make the transition between online and
physical stores as seamless as possible - often through offering various fulfilment options. Moreover, and in contrast
to emerging markets, developed countries will continue to go through a period of online retailing refinement in the
near- to mid-term.
Retailers will therefore need assistance in sustaining and refining the performance of their online platforms. While
emerging-market shoppers are still getting to grips with shopping online, developed-market consumers are generally
well versed - internet-savvy, even - and expectation levels surrounding online service quality are considerably higher
as a result. Consequently, even a slight slip in online performance can quickly dent both sales and brand image.
Retailers therefore need to optimise their online offerings to meet the demands and expectations of today’s anytime,
anywhere shopper.
Future Online Retailing Trends to Watch
Beyond Speed: Added features, Functionality and Personalisation
As retailers look for more features, functionality, and personalisation to stimulate shopper interest and drive sales,
they first need to guarantee these add-ons will not impair their website’s performance. Shoppers want additional
features, but not necessarily at the expense of speed or usability. Retailers must find the right balance to ensure their
online retailing platforms are fully optimised and able to seamlessly incorporate extra functions.
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Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
M-commerce and mobile optimisation
In addition to becoming an integral element of the path to purchase
and playing a vital role in linking all channels together in a far more
seamless manner, mobiles are facilitating spend in every channel. Indeed,
mobile-optimised websites will boost online spending, with 41% of total
respondents encouraged to shop more online if there were a greater choice
of retailers with mobile-optimised websites.
Apple provides its customers
with a completely seamless
and fluid shopping
experience through its
mobile app.
Facilitating greater choice and flexibility as to how and when people shop
is now a given. Those lacking mobile-optimised websites or without a clear
mobile strategy will lose out on sales and are at risk of losing customers.
Ultimately, a key component of mobile optimisation will be speed.
Commercialising Social Media
It is important for retailers to incorporate social media networks such as
Facebook and Twitter to support sharing and social interaction for their
brand and fuel sales. As consumers discuss their shopping experience and are
influenced by peer reviews, it makes sense to enable the conversation through
one’s own shopping app.
56%
20%
The results of Planet Retail’s research shows that 24% of consumers globally
use social media to obtain friends’ opinions on a product they are considering
buying, while 20% comment about instore experiences via social media.
use social media
to get friends’
opinions on a
product they
are considering
buying
FMCG Suppliers Selling Direct To Consumer
An interesting trend in online retail which Planet Retail expects to develop
over the near-term relates to FMCG (fast-moving consumer goods) companies
selling direct to consumers - cutting out the middleman retailer in the process.
The exercise is not necessarily about generating sales, but rather about gaining
additional insight on the shopper and how they engage with the brand.
use social media
to comment
about instore
experiences
Earlier this year, global FMCG player Diageo launched a site dubbed ‘Alexander
& James’ in the UK, selling major spirits to consumers. FMCG companies
Kleenex, Kellogg and GSK have all recently launched their own direct selling
sites as they look to glean insight and add value to their digital offering.
With FMCG suppliers turning to the internet to sell direct to consumers, they
must also ensure that their online platforms run as smoothly as possible.
Consumers will generally be less likely to buy from these websites, so the
path to purchase needs to be as seamless as possible to generate sales.
•
•
•
•
•
•
•
•
16
August 2013
Blends content with commerce
Premium offering
Not just about sales
Insight into online behaviour
Highlight heritage behind brands
Enhances loyalty
Creates greater engagement
Converts searchers into buyers
PlanetRetail.net
Internationalisation of the Online Retailer: Effectively accessing emerging e-commerce and m-commerce markets
6.Conclusions
Top Considerations to Ensure Future Success in Emerging Online Markets
1.
More to success than localisation: For retailers looking to enter emerging online markets, having a tailored
website in terms of pricing, product and language will not be enough. Rather, ensuring the online experience is
quick, easy and safe will ensure latent growth opportunities are fully exploited.
2.
Need for speed, say shoppers: Speed of both internet access and the path to purchase online are important
to shoppers globally, but considerably more so to those in emerging markets in Asia Pacific, Latin America
and Eastern Europe. To win with shoppers in these markets, retailers must focus on improving speed and
functionality above all else. Consider a CDN to provide a faster online customer experience.
3.
Key markets: Chinese and Indian shoppers place most emphasis on speed as an online shopping influencer of
all the emerging markets covered. This is where retailers must invest the most effort to improve online browsing
and transactional speed.
4.
M-commerce is the future: Emerging-market shoppers have fully embraced the m-commerce revolution. This
will become a major growth area going forward. Retailers must therefore specifically concentrate on optimising
m-commerce platforms, with speed a priority.
5.
Seamless experiences need to be seamlessly fast: Adding increased functionality, social media, personalisation
and other added features to a website is all well and good, but these additions should not impact upon the
speed and efficiency of the website’s performance. If speed is compromised, this will hurt sales and may
alienate customers, potentially causing lasting damage to the retailer’s overall brand equity.
“Customers are already walking into the store with
very sophisticated technology in the form of their
smartphones. Increasingly they are using that
technology as part of how they shop - be it to scan
items, to get extra information about the items, to
find reviews, or to pay for items. All those elements
are coming our way very, very quickly.”
MARK LEWIS - Director of Online, John Lewis Partnership
August 2013
17
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