Strategies for Be-er Ecommerce Management. Summary Results January 2013
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1 Strategies for Be-er Ecommerce Management Summary Results January 2013
2 Observa(ons and Conclusions Responders report huge growth in revenue from on-line operations. 46% of responders currently derive more than 10% of their total retail revenue from on-line sales, with 18% seeing more than 20% of all revenue coming through the web. A resounding 33% expect % growth in ecommerce revenue over the next 36 months; international expansion is also seen as a major driver of this growth. The major challenge for responders to grow across multiple channels is integrating systems. 25% are currently or see the need to investigate a new ecommerce platform in the next 12 months. When asked about website improvement, the top challenge was reconciling in-store and on-line shopping. The scalability of cloud-based ecommerce platforms is seen as a huge competitive advantage. 75% of responders plan to use their ecommerce platform to develop their customers mobile experience in the next 2 years. Slide 2
3 Program Overview Gatepoint Research invited 1,909 selected executives to participate in a survey Strategies for Better Ecommerce Management. Candidates were invited via and 100 executives have participated to date. Survey participants are overwhelmingly senior decision-makers; 96% work at Director, VP or CxO level. 48% responders are executives working in firms with revenue greater than $1 billion; a further 21% have revenue between $500 million and $1 billion. 100% of responders participated voluntarily; none were engaged using telemarketing. Slide 3
4 What is your company s total retail revenue from both online and tradi=onal stores? < $100 million 8% $100 $250 million 7% $251 - $500 million 16% > $1 billion 48% $501 million - $1 billion 21% 69% of responders come from companies with revenue of $500 million or more. Slide 4
5 What percent of total retail revenue is derived online including web, social, and mobile? Less than 5% 23% 5% to 10% 29% 11% to 20% 28% 21% to 30% 11% Greater than 30% 7% 0% 5% 10% 15% 20% 25% 30% 35% 46% of responders currently derive more than 10% of their total retail revenue from online sales. Slide 5
6 In how many countries do you sell online now and how many do you an=cipate in the future? 70% 60% 60% Fewer than 5 5 to to 20 Greater than 20 50% 44% 40% 34% 36% 30% 20% 14% 18% 19% 13% 24% 21% 10% 7% 7% 0% In 2012 Predicted 2013 Predicted 2014 International expansion is seen as a major driver of growth. Slide 6
7 What is your sa=sfac=on level with your organiza=on's ability to achieve the following? (Rate 1 5: 1 = Highly unsa5sfied, 5 = Highly sa5sfied) InnovaHon and speed to market 3.17 Fulfill expectahons of mulhchannel shopper 3.29 Forecast demand and ophmize inventory 3.25 Recruit and maintain top talent 3.40 ConHnually differenhate merchandise assortment Innovation and speed to market pose the greatest challenge for responders organizations. Slide 7
8 How many commerce websites do you operate today? 1 to 10 91% 11 to 20 5% 21 to 30 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Most responders currently operate a small number of websites. Slide 8
9 How much growth do you an=cipate in your ecommerce websites in the next three years? None 1% Less than 25% 27% Between 25% and 50% 39% Between 50% and 100% 19% More than 100% 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Ecommerce is clearly a major priority among responders; 33% anticipate growth of 50% to 100% or more in the next three years. Slide 9
10 What are the challenges to increasing mul=channel growth? (Rate 1-5, 1 = Least challenging, 5 = Most challenging) Limited technical integrahon across systems 3.11 Lack of flexibility of ecommerce plaworm 3.05 OrganizaHonal silos and conflichng incenhves 3.05 Lack of innovahve capabilihes accessible via the ecommerce plaworm 2.92 Lack of control over ecommerce plaworm The major challenge for responders to grow across multiple channels is integrating systems. Slide 10
11 What is the likelihood your organiza=on will inves=gate or invest in a new ecommerce plagorm or upgrade within the next 12 months? Not likely within next 12 months 59% Likely within next 12 months 12% We re already inveshgahng 13% We re already inveshng in a new plaworm 16% 0% 10% 20% 30% 40% 50% 60% 70% 25% of responders are investigating or see the need to investigate a new ecommerce platform in the next 12 months. Slide 11
12 Hos=ng an ecommerce plagorm in the cloud vs. on- premise has dis=nct advantages. Which of the advantages below do you believe? (Rate on a scale of 1-5, 1 = I don t believe, 3 = I m not sure either way, 5 = I believe) Ability to scale up or down as needed 4.05 AutomaHcally update to new features and/or funchons 3.77 Lessens need for IT infrastructure 3.75 Ability to deploy new websites in new markets/geographies Operate mulhple & uniquely branded websites in a single instance Cost benefits The scalability of cloud-based ecommerce platforms is seen as a huge competitive advantage. Slide 12
13 What is your top improvement you would like to make to your website? Provide seamless experience between in- store and online shopping 49% Enable consumers to browse and shop via mobile device 18% None of the above 12% Expand geographies where selling products 8% Establish price and inventory visibility across channels 7% Incorporate social into the shopping process 5% 0% 10% 20% 30% 40% 50% 60% Integration between in-store and online shopping is the top priority for website improvements. Slide 13
14 Which of the following do you plan to use your ecommerce plagorm for in the next 24 months? Consumer Mobile Experience 75% In- Store POS 40% In- Store Employee- Held Device 40% In- Store Kiosk 25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 75% of responders plan to use their ecommerce platform to develop their customers mobile experience in the next 2 years. Slide 14
15 Profile of Responders: Job Level Manager 4% VP & CxO 47% Director 49% 96% of responders work at the Director, VP or CxO level. Slide 15
16 About Demandware powers digital commerce success for high-growth retailers and brands who are concerned about generating and managing consumer demand in a complex and fast-changing multi-channel world. Our scalable, cloud-based commerce platform allows merchants and marketers to put their ideas into action fast across devices, applications, channels and geographies. Demandware powers commerce for hundreds of leading brands, including Lacoste, Lands' End, L'Oreal and vineyard vines. For more information, visit
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