Presentation from Tim O'Neill of digital agency Reactive at the AIMIA Future of Digital summit Dec 2009, on the topic of The Future of Online Retail

1. The Future of Online Retail
Tim O’Neill
Joint Managing Director, Reactive
www.reactive.com

2. ABOUT REACTIVE
• Independent digital agency with a focus on;
– Web strategy, design & development
– eCommerce
– Social media
• Running for 12+ years
• Melbourne, Sydney, London & Auckland

3. The Global Threat

4. “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

5. INTERNATIONAL VS AUSTRALIAN ONLINE RETAIL
100.0% $1.00
- Exchange Rate
$0.90
90.0%
$0.80
Share of Visits to Shopping & Classifieds
$0.70
80.0%
$0.60
$1 AUD = $USD
70.0% $0.50 International Retail Websites
Local Retail Websites
$0.40
Exchange Rate
60.0%
$0.30
$0.20
50.0%
$0.10
40.0% $0.00
5
Source: Experian Hitwise, October 2009 and www.rba.gov.au

6. The Global Threat
So, what is the…

7. Social Shopping

9. 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

14. Mobile Commerce

15. 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

18. MOBILE COMMERCE - BARRIERS
91% of Australian online shoppers have purchased online
with a credit card. 51% prefer this method.
Nielsen Australian Online Retail Monitor
• 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...

20. MOBILE COMMERCE – OTHER OPPORTUNITES
• Location-aware shopping
• Always on, always with you
• Vouchers saved on phone, used instore
• QR codes / Microsoft Tag
• Micro-payments within Applications

21. Product Visualisation

24. Retail Environments

26. Personalised Experiences

29. MULTI-CHANNEL RETAILING
• 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.

30. DISCLAIMER… GET THE BASICS RIGHT FIRST!
• Product
• Promotion
• Conversion

31. The Global Threat
tim.oneill@reactive.com
@timwoneill
www.reactive.com