Guest comment: 5 e-commerce trends for 2010

As the end of the year approaches, thoughts inevitably turn to next year and what it will bring. 2009 has been a dramatic year for retailers and marketers even by the industry’s high standards, but whether you can see the green shoots or are simply battening down the hatches against an even harsher 2010, here is a rundown of the key trends that we expect to affect your business over the coming year.

1. M-commerce

Mobile commerce, or m-commerce, will be the watch word for 2010, fuelled by an explosion of apps and increased numbers of iPhone and smartphone customers. What the retail industry has seen so far has just been the tip of the iceberg – next year consumers will not only use their mobile devices more for shopping and browsing, they will expect more in terms of accessibility and choice. Mobile will also be used in a completely different way to traditional online shopping. Consumers on the move will be looking for different items, have different browsing patterns and will respond differently to marketing techniques. Understanding this new breed of user will be a huge advantage to brands.

2. Social commerce

2010 will arguably be the real breakthrough year for social commerce such as peer reviews, online advocacy and ratings. We have seen that 2009’s recession-hit shoppers have needed more reassurance from friends and colleagues before buying, in particular with high-value items such as holidays, cars and designer goods. The rise of social networks means more people are acting as brand advocates online by posting links to products and services on Facebook and LinkedIN pages, as well as Twitter etc. E-commerce platforms that provide customers with easy-to-use social networking tools such as ‘tweet this’ or ‘post link to Facebook’ buttons will make is easier for individuals to promote products and services online and for retailers to potentially reward them. User-generated content is one of the most cost-effective tools in a marketer’s toolbox, and it is sure to be a growing trend in the next 12 to 18 months. Consumer confidence is returning, however it is unlikely this will change, as social commerce continues to add a ‘community feel’ to the shopping experience and increase customer loyalty.

3. Vertical expertise

Another trend for next year will no doubt be the expansion of retail sector e-commerce best practice into more vertical markets. The telecoms sector is a prime example – by borrowing ideas from the leading retail brands, 2010 will see operators and device manufacturers using tried and tested e-commerce delivery methods to offer an improved online service to customers, as well as using back-end technology to take the complexity out of tariffs and bundling.

4. Internationalisation

Internationalisation will fuel the growth of e-commerce as brands that already have an online presence will use the internet to expand into new emerging markets. Online retail sales grew 31 per cent across France, Germany, Italy, the Netherlands and the UK in 2007 alone(1). In 2005 the top 250 retailers operated in 5.9 countries on average(1). By 2007 that number increased to 6.8 countries(1). Retailers with a presence in two or more countries are growing faster and more profitably than retailers operating in just one or two countries(1). Done properly, this will be a significant opportunity for businesses in 2010, but there is also a real threat to the integrity of the brand if it is done badly. Companies may seek to keep a lid on costs by adopting one platform and tweaking it for individual markets, but it is essential to bear in mind that cultural differences will range widely between regions and simply translating content and updating prices is unlikely to satisfy the discriminating consumer, and may even cause more harm than good.

5. Personalisation

Research and experience have shown that the recession has had a lasting impact on the way that consumers shop, and brands will need to bear this in mind as they plan for 2010. If and when the financial climate improves, consumers will continue to demand more from the shopping experience, not just in terms of price, but importantly in terms of service. Personalisation presents browsers with tailored options relevant to them, improving sales through cross-selling, faster search and relevancy. Personalised offerings will therefore remain a crucial weapon in the marketer’s armoury.

By Frank Lord

Regional Vice President, EMEA

ATG

www.ATG.com

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