tag:econsultancy.com,2008:/topics/ecommerce Latest Ecommerce content from Econsultancy 2017-04-28T10:36:48+01:00 tag:econsultancy.com,2008:BlogPost/69047 2017-04-28T10:36:48+01:00 2017-04-28T10:36:48+01:00 10 mind-boggling digital marketing stats from this week Nikki Gilliland <p>If that’s not enough to wet your whistle, head on over to the <a href="https://econsultancy.com/reports/internet-statistics-compendium" target="_blank">Internet Statistics Compendium</a> for even more.</p> <h3>Two thirds of UK consumers are worried about data privacy</h3> <p>According to <a href="https://www.gigya.com/blog/state-of-consumer-privacy-trust-2017-fear-hope/" target="_blank">Gigya</a>, 68% of UK consumers are concerned about how brands use their personal information, with two-thirds specifically questioning the data privacy of IoT devices like smartwatches and fitness trackers.</p> <p>The results of a poll of 4,000 consumers also found that the majority of people think privacy policies have become weaker rather than stronger – 18% predict it will worsen under Theresa May’s government.</p> <p>Apprehension over privacy was found to be higher in older generations, with 73% of people aged over 65 expressing concern.</p> <p><img src="https://assets.econsultancy.com/images/0008/5812/Gigya.JPG" alt="" width="760" height="409"></p> <h3>Nearly half of parents agree that personalised marketing is the future</h3> <p>A survey by Mumsnet has found that 46% of parents expect personalisation to become a big part of advertising in future.</p> <p>However, there is certainly some resistance, with 58% saying that their data is private and only 26% liking the idea of personalised ads.</p> <p>That does not mean that parents don’t see the value. 35% say they’d be open to seeing ads that apply to their lives, while 24% say that personalised ads would make them more likely to buy. The majority surveyed also said that they’d prefer to see tailored ads based on their previous search behaviour rather than online habits.</p> <h3>UK online retail sales grow 13% YoY in March</h3> <p>The <a href="https://www.imrg.org/data-and-reports/imrg-capgemini-sales-indexes/sales-index-april-2017/" target="_blank">latest figures</a> from IMRG Capgemini e-Retail Sales Index show solid growth for UK online sales, driven by a rise in the average spend through mobile devices.</p> <p>Mobile retail was up 18% in March 2016, while overall online sales grew 13% year-on-year. More specifically, the home and garden sector saw a 10% YoY growth, while health and beauty sales increased by 15% YoY – most likely driven by Mother’s Day.</p> <h3>19% of professionals have landed a job through LinkedIn</h3> <p>This week, <a href="https://blog.linkedin.com/2017/april/24/the-power-of-linkedins-500-million-community" target="_blank">LinkedIn announced</a> that it has reached half a billion members worldwide, with 23m of these coming from the UK.</p> <p>As part of the announcement, it also revealed that London is the most connected city in the world, with professionals having an average of 307 connections. </p> <p>It also stated that a casual conversation on LinkedIn has led to a new opportunity for 29% of professionals, while 19% have landed a job through using the platform.</p> <p><img src="https://assets.econsultancy.com/images/0008/5815/LinkedIn.JPG" alt="" width="344" height="469"></p> <h3>UK adspend was 3.6% higher in Q4 2016</h3> <p>According to the Advertising Association/WARC Expenditure Report, adspend was <a href="http://expenditurereport.warc.com/" target="_blank">3.9% higher</a> in the fourth quarter of last year, with digital formats driving growth.</p> <p>Internet spending was up 15.3% during Q4 and 13.4% over the entire year. Meanwhile, mobile took a 37.5% share, hitting £3.9bn for the year and accounting for 99% of the new money spent on internet advertising. </p> <p>Lastly, forecasts for the next two years indicate continued growth, with 2.5% predicted in 2017 and 3.3% in 2018.</p> <h3>64% of marketers do not believe it is their job to analyse data</h3> <p>Research by <a href="https://www.bluevenn.com/resources/ebooks/data-deadlock-report-1" target="_blank">BlueVenn</a> has found that nearly two-thirds of UK and US marketers believe it is their role to collect customer data, but not actually analyse it.</p> <p>However, it appears this is due to sheer volume rather than a lack of aptitude, as 93% of marketers say they are ‘confident’ or ‘very confident’ in their ability to analyse complex customer data.  </p> <p>The findings suggest a general discord amongst marketers, with 51% of UK and US marketers feeling that they spend too much time analysing data in their day-to-day work, with too little time left to spend on more creative aspects of the role.</p> <h3>Eight in ten consumers forget branded content</h3> <p>Upon discovering that eight in 10 consumers forget most of the information in branded content after only three days, while more than half are unable to recall a single detail, a <a href="https://prezi.com/view/RZXW2soO8IFMkzAFoNY7/" target="_blank">new report by Prezi</a> has highlighted the reasons why.</p> <p>Irrelevancy of ads is the biggest reason for a lack of recall, with 55% of consumers citing this reason. 37.7% said a lack of motivation to remember it, while 30% said there is simply too much content to retain.</p> <p>In contrast, content which 'tells the audience something new' was found to be the most memorable, helping 27% of respondents to remember a brand. This was closely followed by content which teaches, inspires, or entertains. </p> <p><img src="https://assets.econsultancy.com/images/0008/5813/Prezi_report.JPG" alt="" width="760" height="436"></p> <h3>Half of retailers unable to predict shopper traffic</h3> <p>New research from <a href="http://d3fi73yr6l0nje.cloudfront.net/Lists/TRS-ResourceAssetsLib/EKN-TYCO_ebook_03-Excellence_Scorecard-20170427.pdf" target="_blank">Tryco</a> has found that retailers are failing to monitor store performance correctly, with 50% unable to predict shopper traffic. Consequently, it is becoming increasingly difficult for retailers to balance operational tasks and customer service. </p> <p>Other findings show 60% of retailers do not consistently manage inventory performance and turnover on a store-by-store basis</p> <p>Lastly, retailers spend 70% of their time on operational tasks as opposed to 30% on customer service, reducing the opportunity to build important relationships with consumers. </p> <h3>eBay sees spike in searches for home and garden sector</h3> <p>eBay has revealed that it saw big spikes in searches within the Home and Garden category around the May bank holidays last year, with online shoppers showing two distinct purchasing mindsets.</p> <p>On one hand, consumers appeared to be looking for quick-fix cosmetic items at the beginning of May, with sales of candles and plant pots leaping by 172% and 214% respectively.</p> <p>On the other, shoppers were planning bigger renovation and DIY projects at the end of the month. This was reflected by sales of saws and lawnmowers rising by more than 1,000%, and sales of sofas jumping by 194%.</p> <p><img src="https://assets.econsultancy.com/images/0008/5816/ebay_search.jpg" alt="" width="700" height="466"></p> <h3>46% of UK consumers open to relevant ads despite surge in ad blocking </h3> <p>Trinity McQueen has revealed that consumers will tolerate relevant online advertising, despite the popularity of ad-blocking.</p> <p>In a study of 1,000 UK adults, it found that 56% of consumers now use ad-blocking software on their laptops and PCs, yet 46% say they don’t mind online advertising as long as it’s relevant to them.</p> <p>The study also highlights the changing ways UK adults consume traditional and digital media. 29% of UK adults would be happy never to watch scheduled TV again, while one third say that scheduled TV does not fit in with their lifestyle.</p> <p>Finally, 41% of UK adults now subscribe to an on-demand service such as Netflix, Amazon Prime or Now TV.</p> tag:econsultancy.com,2008:BlogPost/69044 2017-04-28T10:00:00+01:00 2017-04-28T10:00:00+01:00 Five reasons behind Boohoo’s 97% increase in profits Nikki Gilliland <p>So, is Boohoo’s success merely a reflection of the dwindling fortunes of the British high street? Perhaps somewhat, but with other online retailers struggling to capture interest, there’s a reason why Boohoo is head and shoulders above the rest.</p> <p>Here’s what it’s been doing in order to drive online sales.</p> <h3>1. Influencer marketing</h3> <p><a href="https://econsultancy.com/reports/the-rise-of-influencers/" target="_blank">According to research</a>, budgets for influencer marketing were predicted to increase by a whopping 59% last year.</p> <p>Boohoo has evidently ramped up activity in this area, with influencer marketing now a huge part of its strategy to target its core demographic of girls aged 16-24. </p> <p>The retailer has partnered with multiple influencers and bloggers to promote Boohoo across popular platforms like Instagram and Snapchat. One particularly successful example has been its collaboration with model Jordyn Woods on a new range of plus-size clothing. </p> <p><img src="https://assets.econsultancy.com/images/0008/5790/Jordyn_Woods.JPG" alt="" width="650" height="490"></p> <p>The reason it worked so well was not only due to Woods’ personal social media following, but also her connection to other high-profile media influencers like Kylie Jenner and Justine Skye – names that Boohoo’s Generation Z-consumers are likely to be aware of.</p> <p>More recently, Boohoo has also generated buzz from <a href="https://econsultancy.com/blog/69011-jumping-on-the-bandwagon-how-brands-capitalised-on-coachella/" target="_blank">influencers attending Coachella</a> – a festival that typically fills social media news feeds during April.</p> <p>For more on influencers, download these Econsultancy reports:</p> <ul> <li><a href="https://econsultancy.com/reports/the-rise-of-influencers/">The Rise of Influencers</a></li> <li><a href="https://econsultancy.com/reports/the-voice-of-the-influencer/">The Voice of the Influencer</a></li> </ul> <h3>2. Mobile mind-set</h3> <p>Google suggests that <a href="https://www.thinkwithgoogle.com/interactive-report/gen-z-a-look-inside-its-mobile-first-mindset/" target="_blank">68% of teenagers now shop via their smartphone</a>, while 63% of millennials are said to shop on their mobiles every single day.</p> <p>Unsurprisingly, two-thirds of online visits to Boohoo come from mobile, with the retailer subsequently taking steps to ensure that the user experience is as slick and seamless as possible. </p> <p>Last year, it launched apps in international markets as well as a new and improved version for the UK.</p> <p>Personally, I’ve always been a big fan of Boohoo’s app. In fact it’s one of the only examples from a fashion retailer that I turn to over its mobile site. Features like the ‘wishlist’ – which allows you to save items to revisit later – are perfectly aligned with the mobile experience, meaning browsing on the app is even easier than online.</p> <p><img src="https://assets.econsultancy.com/images/0008/5791/bohoo.PNG" alt="" width="250"></p> <h3>3. International expansion</h3> <p>As well as strong UK growth, Boohoo has also seen a rise in profits in international markets, with revenue rising 140% in the US and 40% in the rest of the world.</p> <p>What’s more, the brand looks set to increase expansion plans even further, acquiring Nasty Gal in February – a retailer with a large and existing customer base in the US. Combined with the fact that Boohoo also took over smaller rival, PrettyLittleThing, earlier this year, it looks set to capitalise on these takeovers with further international growth.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Fries before guys. <a href="https://twitter.com/hashtag/NastyGalsDoItBetter?src=hash">#NastyGalsDoItBetter</a> <a href="https://t.co/wYGU0PmtrR">pic.twitter.com/wYGU0PmtrR</a></p> — NASTY GAL (@NastyGal) <a href="https://twitter.com/NastyGal/status/856032866492334080">April 23, 2017</a> </blockquote> <h3>4. Fast and affordable fashion</h3> <p>Another draw for online consumers is undoubtedly Boohoo’s dedication to fast fashion – meaning the prices are low and the turnover is high. </p> <p>Unlike <a href="https://econsultancy.com/blog/67870-why-asos-is-still-leading-the-online-retailing-pack/" target="_blank">ASOS</a>, which is well-known for carrying a broad and expansive range of designers at a higher price point, Boohoo focuses on stocking key seasonal trends at low prices. While 11% of ASOS products are in the £5 to £9.99 category, this rises to 23% for Boohoo. </p> <p>With consumer expectations rising, and millennial shoppers developing an ‘I want it now’ mindset, Boohoo's business model enables it to deliver a rapid and continuous cycle of affordable fashion trends.</p> <p>Its ‘test and repeat’ strategy allows it to quickly find out what items are selling online before ordering and stocking more.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">This <a href="https://twitter.com/boohoo">@boohoo</a> dress FINALLY came back in stock long enough for me to grab one...Happy Friday!!<a href="https://t.co/xKexqUAbkQ">https://t.co/xKexqUAbkQ</a> <a href="https://t.co/UapfEFbDHr">pic.twitter.com/UapfEFbDHr</a></p> — Halinalinalina (@viechoufleur) <a href="https://twitter.com/viechoufleur/status/850231762961571840">April 7, 2017</a> </blockquote> <h3>5. Harnessing social media and commerce</h3> <p>Its product offering is not the only reason Boohoo has such a large online customer-base. Its dedication to delivering high quality service – both pre- and post-purchase – has helped it to retain strong levels of customer loyalty.</p> <p>One way it does this is through social media, using platforms like Twitter and Facebook to communicate and resolve customer service issues. </p> <p>Of course, it also uses social to drive engagement, continually asking for feedback and opinions, as well as offering incentives such as promotions and competitions. </p> <p>Meanwhile, its also appears to be veering into the world of <a href="https://econsultancy.com/blog/69041-social-commerce-why-basic-bots-and-buy-buttons-are-not-enough/">social commerce</a>, notably including new shoppable elements in a number of recent Facebook posts. While other examples of social commerce have failed to live up to expectations, Boohoo’s ability to resonate and relate to a young and fashion-hungry demographic could mean that its one of the first to truly take off.</p> <p><img src="https://assets.econsultancy.com/images/0008/5792/facebook_boohoo.JPG" alt="" width="760" height="392"></p> <p><em><strong>Related articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/68659-three-reasons-behind-the-white-company-s-boost-in-profits/">Three reasons behind The White Company’s boost in profits</a></em></li> <li><em><a href="https://econsultancy.com/blog/68472-three-reasons-behind-whsmith-s-boost-in-profits/">Three reasons behind WHSmith’s boost in profits</a></em></li> </ul> tag:econsultancy.com,2008:Report/4476 2017-04-27T13:00:00+01:00 2017-04-27T13:00:00+01:00 Retail Statistics Compendium <p>Econsultancy's <strong>Retail Internet Statistics Compendium</strong> is a comprehensive collection of the most recent retail sector statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media.</p> <p>Like our main <a title="Internet Statistics Compendium" href="https://econsultancy.com/reports/internet-statistics-compendium">Internet Statistics Compendium</a>, this report has been collated from information available to the public, which we have aggregated together in one place to help you quickly find the retail internet statistics you need.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p>Areas covered in this report include:</p> <ul> <li>Global and regional digital marketing trends in retail</li> <li>Online shopping statistics - including ecommerce, mobile commerce and social commerce data</li> <li>Customer experience</li> <li>Digital strategy</li> <li>Virtual Reality/Augmented Reality</li> </ul> <p><strong>A free sample document is available for download.</strong></p> tag:econsultancy.com,2008:BlogPost/69034 2017-04-26T12:24:21+01:00 2017-04-26T12:24:21+01:00 Amazon launches 'Subscribe with Amazon' to help companies sell subscriptions Patricio Robles <p>The <a href="https://www.subscribewithamazon.com/">marketplace</a>, which is said to have been in development for the past year, was born out of Amazon's homegrown subscription initiatives. "Over the years, Amazon has gained extensive experience in the memberships and subscriptions space, innovating across programs like Prime and Kindle Unlimited," Lovina McMurchy, the GM of Subscribe with Amazon, <a href="http://www.businesswire.com/news/home/20170424005365/en/Amazon-Launches-Self-Service-Marketplace-Subscription-Providers">explained</a> in a press release. </p> <p>Vendors interested in selling through Subscribe with Amazon have access to self-service tools that allow them to create detail pages for their offerings. An API allows vendors to receive order data and updates from Amazon so that they can automate the management of subscriptions. As one would expect, Amazon is giving vendors the ability to sell subscriptions with different terms, such as monthly and annual, and also allows them to offer introductory pricing to new subscribers.</p> <p>Initial Subscribe with Amazon partners include Disney Story Central, The Wall Street Journal and Dropbox. Currently, Subscribe with Amazon is accepting applications from vendors that sell digital content, but it would not be surprising to see Amazon later extend it to subscription services that offer physical products.</p> <p><img src="https://assets.econsultancy.com/images/0008/5680/subscribewithamazon.png" alt="" width="768" height="450"></p> <h4>Distribution, but at what cost?</h4> <p>Subscribe with Amazon's primary value proposition is that it offers subscription vendors a marketplace through which they can sell to Amazon's massive customer base. To help them sell, Amazon is even offering vendors the ability to create special promotions for Prime members, which are now estimated to number more than 65m.</p> <p>For example, one Subscribe with Amazon launch partner, Texture, offers a 50% discount to Prime members for the first six months of a subscription to its digital magazine service.</p> <p>In addition to helping vendors market their wares, Subscribe with Amazon could, <a href="https://econsultancy.com/blog/68792-amazon-payments-usage-grows-should-you-adopt-it/">like Pay with Amazon</a>, reduce purchase friction because it enables Amazon customers to purchase and manage subscriptions through their existing Amazon accounts, speeding the purchase process and reducing concerns about trust. Such concerns are often more pronounced in subscription purchases because charges are recurring. </p> <p>But despite the appealing aspects of Subscribe with Amazon, vendors will probably want to think carefully before they embrace Amazon's new offering.</p> <p>First, there's the issue of margin. Amazon takes a 30% cut of subscription revenue in the first year. That drops to 15% after the first year. While giving up 30% and then 15% might make sense for some vendors – it's in line with what other distribution channels charge – it might not make sense for others and vendors will want to do the math to determine the potential impact on the profitability of their business, especially if they consider that some Subscribe with Amazon subscriptions may displace some portion of subscriptions that would otherwise be sold direct.</p> <p>Second, there's the issue of data and customer ownership. While Amazon is giving vendors access to order data through an API, Subscribe with Amazon will obviously give the online retail giant the ability to collect significant data about its vendors. And it will own the relationships with customers who purchase using Subscribe with Amazon.</p> <p>Data and customer ownership is a thorny issue for vendors. After all, Amazon increasingly competes with companies that sell in its marketplaces. For example, it has launched its own private brands in categories ranging from apparel to electronics accessories. Some companies believe that Amazon <a href="https://econsultancy.com/blog/67769-the-rise-of-amazon-s-private-labels-shows-the-perils-of-not-owning-your-data-customers">has used its vast trove of sales data to identify products that its private labels should sell</a>.</p> <p>Given that Amazon already operates a number of digital subscription services of its own, the company's actions in other markets make it clear subscription vendors will have no choice but to consider that Subscribe with Amazon could eventually help the retail giant at their expense.</p> tag:econsultancy.com,2008:BlogPost/69028 2017-04-21T15:10:00+01:00 2017-04-21T15:10:00+01:00 10 tremendous digital marketing stats from this week Nikki Gilliland <h3>UK search data shows surge in ‘snap election’ queries</h3> <p>Following on from the announcement of the snap general election this week, Hitwise has analysed how the UK responded online.</p> <p>Data shows there was a 2,000% increase in searches for Theresa May on print media sites, while three out of five searches on Tuesday 18th were about the election news. Most searches were in the form of questions, with the nation generally appearing unsure about what a ‘snap election’ actually means.</p> <h3>One fifth of retailers are failing to offer preferred delivery options</h3> <p><a href="http://ampersandcommerce.com/insights/yougov-consumer-survey-delivery-2017/" target="_blank">Research from Ampersand</a> has found that many of the UK’s biggest retailers are failing to offer next day delivery, despite a YouGov survey showing that 58% of people favour this method over any other.</p> <p>In comparison to 2014, Ampersand found that most people still favour next day delivery over click and collect and same day delivery, with preference for this increasing 6% within three years. </p> <p>Meanwhile, preference for same day delivery has gone from 21% in 2014 down to 12% this year.</p> <p><img src="https://assets.econsultancy.com/images/0008/5625/Ampersand.JPG" alt="" width="780" height="492"></p> <h3>UK add-to-basket rates on the up in Q4</h3> <p>Monetate's latest <a href="http://info.monetate.com/ecommerce_report_EQ4_2016.html" target="_blank">ecommerce report</a> has revealed that UK add-to-basket rates were 3.75% higher in Q4 2016 than a year previously. </p> <p>The report also shows that both global and UK conversion rates were lower this Q4 than in 2015. However, global and UK conversion rates saw its first increase since Q4 of 2015.</p> <p>Meanwhile, website visits via mobile continued to increase globally, with 44% of UK website visits coming from smartphones.</p> <h3>75% of UK consumers have not spoken to a chatbot</h3> <p>New research from <a href="https://insights.ubisend.com/2017-chatbot-report" target="_blank">Ubisend</a> has uncovered the brand characters people would most like to see turned into chatbots. Compare the Market’s Meerkats topped the poll, followed by the Andrex puppies and Nespresso’s George Clooney. </p> <p>Other research found that 75% of UK consumers have not yet spoken to a chatbot, however, 57% of consumers are aware of what a chatbot is. </p> <p>Lastly, 35% want to see more companies adopting chatbots to solve their queries, with 68% citing ‘reaching the desired outcome’ as the most important factor in their experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/5628/chatbots.JPG" alt="" width="780" height="297"></p> <h3>Expedia outperforms other travel brands with 7% market share</h3> <p>Conductor has released its first ever <a href="https://www.google.co.uk/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;uact=8&amp;ved=0ahUKEwis1ZyKnbXTAhXOaVAKHc0ZA4EQFggiMAA&amp;url=http%3A%2F%2Fww2.conductor.com%2Frs%2F149-ZMU-763%2Fimages%2FConductor-Organic-Online-Market-Share-Report-Holiday-2016.pdf&amp;usg=AFQjCNGO-bWF8Ak2EEpMJ7kZeecHFR3fjA" target="_blank">Organic Market Share</a> report, detailing the brands that excel at reaching consumers from organic search.</p> <p>In the travel category, Expedia was found to be the overall top performer, taking a 7% market share. Meanwhile, TripAdvisor dominates the ‘early stages’ of the consumer journey category with a 10% share. </p> <p>Data shows that airlines, car rental companies and hotel chains (including Hilton) have the potential to increase their visibility. </p> <p><img src="https://assets.econsultancy.com/images/0008/5627/Online_market_share.JPG" alt="" width="713" height="404"></p> <h3>Consumers prefer traditional advertising to digital</h3> <p>Research by Kantar Media has found that UK consumers feel significantly more positive about advertising on traditional platforms, such as TV and magazines, than they do about online formats.</p> <p>In a survey, 33% said they actively dislike seeing advertising on online video services and search engines, while 30% dislike being served ads in news and articles online. In contrast, only 13% and 14% of consumers dislike seeing ads in printed newspapers and printed magazines.</p> <p>With online ads predicted to account for more than half of all advertising spend in the next few years, this provides food for thought for brands.</p> <h3>Connected shopping driven by Generation Y </h3> <p>New research from Savvy suggests that the mass adoption of smartphones and social media has contributed to a fundamental change in the path to purchase.</p> <p>Data shows that Generation Y is driving changes in retail due to being constantly connected. 66% say they regularly use their smartphone to buy products and 49% regularly use their smartphones while in the supermarket. While this group represents around a third of shoppers at the moment, they are predicted to account for 47% by 2022.</p> <p><img src="https://assets.econsultancy.com/images/0008/5634/connected_shopper.jpg" alt="" width="680" height="453"></p> <h3>UK marketers increase budgets in 2017</h3> <p>According to data from the Q1 2017 <a href="http://www.ipa.co.uk/page/ipa-bellwether-report#.WPnTjtLyuUk" target="_blank">IPA Bellwether Report</a>, marketing budgets increased in Q1 2017 with significant growth seen in internet and main media advertising categories.  </p> <p>The report suggests that the overall outlook for 2017/18 is positive, with 26.1% of companies suggesting growth in total budgets for the coming year. Meanwhile, ad spend is now predicted to grow 0.6%, replacing the previous forecast of -0.7%.</p> <h3>Only 55% of Brits associate Easter with religion</h3> <p>New <a href="https://yougov.co.uk/news/2017/04/13/only-55-brits-associate-jesus-christ-easter/" target="_blank">research from YouGov</a> has found that Brits are more likely to think of Easter in relation to chocolate eggs than religious connotations. </p> <p>In a survey of 2,670 UK adults, only 55% said they personally associate Jesus with Easter, while 67% said they associate it with a bank holiday. Chocolate eggs is clearly at the forefront of everyone’s minds, with 76% associating this with Easter above anything else.</p> <p>In a separate study, Captify analysed found that Cadbury products dominate searches for chocolate eggs, with Crème Egg accounting for 29% of searches and Mini Eggs accounting for 18%.</p> <p><img src="https://assets.econsultancy.com/images/0008/5626/YouGov.JPG" alt="" width="650" height="752"></p> <h3>Luxury ad spend predicted to shift online </h3> <p>Zenith's <a href="https://www.zenithmedia.com/product/advertising-expenditure-forecasts" target="_blank">latest report</a> suggests that expenditure on luxury advertising is set to recover, with growth predicted to occur due to an increase in online spend. Zenith predicts a 3.9% rise in 2017 – a welcome figure following a 0.5% decline in 2016.</p> <p>It also predicts that the internet will become the main luxury advertising medium in 2018, despite print currently being the principal medium, accounting for 32.7% of ad spend in 2016 compared to 25.8% for internet advertising.</p> tag:econsultancy.com,2008:Report/3008 2017-04-21T12:55:00+01:00 2017-04-21T12:55:00+01:00 Internet Statistics Compendium Econsultancy <p>Econsultancy’s <strong>Internet Statistics Compendium</strong> is a collection of the most recent statistics and market data publicly available on online marketing, ecommerce, the internet and related digital media. </p> <p><strong>The compendium is available as 11 main reports (in addition to two sector-specific reports, B2B and Healthcare &amp; Pharma) across the following topics:</strong></p> <ul> <li><strong><a href="http://econsultancy.com/reports/advertising-media-statistics">Advertising</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/content-statistics">Content</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/customer-experience-statistics">Customer Experience</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/web-analytics-statistics">Data and Analytics</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/demographics-technology-adoption">Demographics and Technology Adoption</a></strong></li> <li><strong><a href="http://econsultancy.com/uk/reports/ecommerce-statistics">Ecommerce</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/email-ecrm-statistics">Email and eCRM</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/mobile-statistics">Mobile</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/search-marketing-statistics">Search</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/social-media-statistics">Social</a></strong></li> <li><strong><a href="http://econsultancy.com/reports/strategy-and-operations-statistics">Strategy and Operations</a></strong></li> </ul> <p>Updated monthly, each document is a comprehensive compilation of internet statistics and digital market research with data, facts, charts and figures. The reports have been collated from information available to the public, which we have aggregated together in one place to help you quickly find the internet statistics you need - a huge time-saver for presentations and reports.</p> <p>There are all sorts of internet statistics which you can slot into your next presentation, report or client pitch.</p> <p><strong>Sector-specific data and reports are available under the following areas:</strong></p> <ul> <li><strong><a title="B2B Internet Statistics Compendium" href="http://econsultancy.com/reports/b2b-internet-statistics-compendium">B2B</a> </strong></li> <li><strong><a title="Healthcare and Pharmaceuticals Internet Statistics Compendium" href="https://econsultancy.com/reports/healthcare-and-pharmaceuticals-internet-statistics-compendium/">Healthcare and Pharmaceuticals</a> </strong></li> <li><strong><a title="Financial Services and Insurance Internet Statistics Compendium" href="https://econsultancy.com/reports/financial-services-and-insurance-internet-statistics-compendium/">Financial Services and Insurance</a> </strong></li> <li><strong><a title="Retail Statistics Compendium" href="https://econsultancy.com/reports/retail-statistics-compendium/" target="_self">Retail</a></strong></li> </ul> <p><strong>Regions covered in each document (where data is available) are:</strong></p> <ul> <li><strong>Global</strong></li> <li><strong>UK</strong></li> <li><strong>North America</strong></li> <li><strong>Asia</strong></li> <li><strong>Australia and New Zealand</strong></li> <li><strong>Europe</strong></li> <li><strong>Latin America</strong></li> <li><strong>MENA</strong></li> </ul> <p>A sample of the Internet Statistics Compendium is available for free, with various statistics included and a full table of contents, to show you what you're missing.</p> tag:econsultancy.com,2008:BlogPost/68973 2017-04-12T10:47:00+01:00 2017-04-12T10:47:00+01:00 13 examples of dark patterns in ecommerce checkouts Ben Davis <p>I thought I would select some examples of dark patterns found in ecommerce checkouts to highlight the issue. Most of the examples are taken from the #darkpatterns hashtag on Twitter.</p> <h4 lang="en" dir="ltr">Misdirection</h4> <p>Where the website design nudges users towards a more expensive option and distracts them from the standard option.</p> <p>Misdirection is the sneakiest type of dark pattern because it exists in a grey area. This sort of tactic is commonplace because it is harder to outlaw, as opposed to the 'sneak into basket' tactic (discussed further down the article), which is outlawed in the EU.</p> <p>The example from Delta, shown below, uses a red button to nudge checking-in users towards an upgrade. A must less conspicuous grey button must be selected to say 'no thanks' and continue checking in. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Dear <a href="https://twitter.com/Delta">@Delta</a> UX Team, This Check In screen is borderline evil. That makes you borderline evil for letting it be created. <a href="https://twitter.com/hashtag/UXFail?src=hash">#UXFail</a> <a href="https://twitter.com/hashtag/DarkPattern?src=hash">#DarkPattern</a> <a href="https://t.co/khPjMNtvHX">pic.twitter.com/khPjMNtvHX</a></p> — Ed Campodonico (@uxed) <a href="https://twitter.com/uxed/status/846926871887462400">March 29, 2017</a> </blockquote> <p>Econsultancy blogger Paul Randall has previously highlighted <a href="https://econsultancy.com/blog/68887-ethical-cro-the-end-of-dark-patterns/">an even sneakier example of misdirection</a> from ZSL London Zoo.</p> <p>In the screenshot below you can see how the 'add to basket with donation' green button appears to suggest moving forward to the next stage of the checkout. The colourless 'without donation' button points backward, leaving the unobservant user to assume this is some sort of back arrow to return to a previous page.</p> <p><img src="https://assets.econsultancy.com/images/0008/4654/zsl_focused.jpg" alt="misdirection zsl" width="700" height="428"></p> <p>Misdirection is probably most commonly found on email unsubscribe interfaces. When a user has clicked to unsubscribe, it is obviously devious to highlight the '<em>keep my subscription</em>' option over the actual intention of the user (to unsubscribe).</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr"><a href="https://twitter.com/lootcrate">@lootcrate</a> Making "Keep my subscription" an orange button on a page where I'm cancelling is deceptive and in poor taste. <a href="https://twitter.com/hashtag/darkpattern?src=hash">#darkpattern</a> <a href="https://t.co/7E2Kb80d1y">pic.twitter.com/7E2Kb80d1y</a></p> — Aaron Benjamin (@aBenjamin765) <a href="https://twitter.com/aBenjamin765/status/830454611769069570">February 11, 2017</a> </blockquote> <h4>Checkbox treachery </h4> <p>Obfuscatory checkboxes are probably the most famous and most common examples of dark patterns. What we're mainly talking about is opt-in or opt-out checkboxes and accompanying spiel that businesses use to give customers notional control over how their contact data is used.</p> <p>Whilst in the US the CAN-SPAM Act does not restrict how businesses can collect new subscribers (i.e. they do not need to gain prior consent), in the EU consumers must be offered an opt-out option.</p> <p>In practice though, these mandatory opt-out options can be a little confusing, or even downright sly. Below is a heinous mobile example provided by <a href="http://www.uxnewzealand.com/speakers/ben-and-gareth/">Ben Tollady and Gareth Roberts at UX New Zealand</a>.</p> <p><img src="https://assets.econsultancy.com/images/0008/5391/rac.jpg" alt="dark patterns" width="600"></p> <p>Of course, another common dark pattern amongst checkboxes is double negatives – language that makes the user unsure whether to tick or to untick. Here's a great example...</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr"><a href="https://twitter.com/darkpatterns">@darkpatterns</a> During registration... <a href="https://t.co/wsqsUyVmod">https://t.co/wsqsUyVmod</a> … <a href="https://twitter.com/Codemasters">@Codemasters</a> <a href="https://twitter.com/hashtag/DarkPatterns?src=hash">#DarkPatterns</a> <a href="https://t.co/sKzjjq00Tm">pic.twitter.com/sKzjjq00Tm</a></p> — Trinity (@Omicron666_live) <a href="https://twitter.com/Omicron666_live/status/847701153756270592">March 31, 2017</a> </blockquote> <p>Or in the example below, a seeming call-to-action next to the checkbox ('keeping in touch') which is at odds with the functionality of the checkbox ('keeping in touch' is merely a heading). Not cool...</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr"><a href="https://twitter.com/virginmedia">@virginmedia</a> This is called a <a href="https://twitter.com/hashtag/UX?src=hash">#UX</a> <a href="https://twitter.com/hashtag/DarkPattern?src=hash">#DarkPattern</a> &amp; is rather unethical in it's design and possibly illegal. Not cool<br> <a href="https://t.co/sbuHsOcVbg">https://t.co/sbuHsOcVbg</a> <a href="https://t.co/DAFs20hFOJ">pic.twitter.com/DAFs20hFOJ</a></p> — Joelle Bataille (@Joelle_Bataille) <a href="https://twitter.com/Joelle_Bataille/status/844206550839414784">March 21, 2017</a> </blockquote> <p>Lastly, here's a more subtle example of a dark pattern – what appears to be a radio is in fact a checkbox. One might argue this is a genuine mistake – it's certainly one to look out for on your own website. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">The <a href="https://twitter.com/PostOffice">@PostOffice</a> styles up opt-out checkboxes to look like radiobuttons implying they're mutually exclusive <a href="https://twitter.com/hashtag/DarkPatterns?src=hash">#DarkPatterns</a> <a href="https://t.co/o6kMCeqiot">pic.twitter.com/o6kMCeqiot</a></p> — Benji Weber (@benjiweber) <a href="https://twitter.com/benjiweber/status/788988879588253698">October 20, 2016</a> </blockquote> <p>It's pretty simple, if you've decided to give the user the option (as is necessary in Europe), you should provide an opt in (not an opt out) with clear supporting text.</p> <h4>Sneak into basket</h4> <p>This is another classic. It is usually performed by offering a supplementary service or product to a user, who is made to actively unselect this extra product otherwise it will appear in the checkout.</p> <p>The worst transgressors here are in the travel sector. Ryanair still forces customers to deselect an insurance product when adding a flight to basket, despite the fact that this tactic is illegal according to the EU's consumer rights laws.</p> <p><img src="https://assets.econsultancy.com/images/0008/5304/don_t_insure_me.png" alt="ryanair dark pattern" width="651" height="427"></p> <p><em>Image via <a href="http://www.digital-tonic.co.uk/digital-tonic-blog/ryanairs-new-website-still-hiding-mean-tricks-dark-patterns/">Digital Tonic's Ryanair website review</a>.</em></p> <p>Sports Direct is another high profile abuser of this dark pattern. In the past a 'free' mug and Sports Direct magazine (£1 delivery charge) have been added to customer baskets online, without any notification.</p> <p>Though the retailer has now added a pop-up offering the 'free' mug to users, note how inconspicuous the 'no thanks' text is compared to the large white 'yes please' button.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Wow <a href="https://twitter.com/sportsdirect">@sportsdirect</a>, a free gift! </p> <p>But what's this extra £1 delivery charge, ON TOP of the £4.99 standard delivery charge? </p> <p>Sleazetastic! <a href="https://t.co/sHggF8Pfwi">pic.twitter.com/sHggF8Pfwi</a></p> — Dark Patterns (@darkpatterns) <a href="https://twitter.com/darkpatterns/status/819884967614447616">January 13, 2017</a> </blockquote> <h4>Obscured pricing</h4> <p>Yet another travel example here. British Airways does not tell bookers what price they will have to pay to add a bag to the hold after they have booked their ticket, merely stating 'for a fee'. Nor does it tell the price of seat selection or booking amendments.</p> <p>The obvious intention here is not to undermine the price of the £31 upgrade from 'basic' to 'plus'.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">No way to find out cost to add a hold bag when booking with <a href="https://twitter.com/British_Airways">@british_airways</a> anymore. Trying to upsell ‘Plus’. Horrible <a href="https://twitter.com/darkpatterns">@darkpatterns</a> <a href="https://t.co/ZzUCMG3PlV">pic.twitter.com/ZzUCMG3PlV</a></p> — James Russell (@kazaroth) <a href="https://twitter.com/kazaroth/status/838700975481303040">March 6, 2017</a> </blockquote> <p>It's not just obscured pricing that can be a problem. Darkpatterns.org <a href="https://darkpatterns.org/types-of-dark-pattern/price-comparison-prevention">highlights how Sainsbury's website does not allow comparison of all of its groceries</a>, instead displaying some prices per weight and some per unit. This makes it hard for users to understand which product is cheapest. </p> <h4>Misinformation / terrible language </h4> <p>I can't work out if this example is intentional or not. I hope not. But again it highlights the need to look at all your functional ecommerce copy and determine if it is as clear as it could be.</p> <blockquote class="twitter-tweet"> <p lang="und" dir="ltr"><a href="https://twitter.com/hashtag/Darkpattern?src=hash">#Darkpattern</a> <a href="https://t.co/FwvZ9bzHWP">pic.twitter.com/FwvZ9bzHWP</a></p> — Replying to (@twoplayer) <a href="https://twitter.com/twoplayer/status/823950393365381123">January 24, 2017</a> </blockquote> <h4>Hidden costs</h4> <p>In the EU, all extra charges such as shipping must be highlighted (at least the fact that they exist and will be applied) before the customer gets to the checkout.</p> <p>A good example of hidden costs provided by darkpatterns.org is <a href="https://darkpatterns.org/types-of-dark-pattern/hidden-costs">on the US flower delivery website ProFlowers</a>.</p> <h4>The ethics of CRO</h4> <p>So, that's the end of my roundup of examples. Please do check out <a href="https://econsultancy.com/blog/68887-ethical-cro-the-end-of-dark-patterns">Paul Randall's post on the ethics of conversion rate optimisation</a> – there is a way to optimise without misleading the customer.</p> <p>And do share any dark patterns you see on your travels by using the #darkpatterns hashtag.</p> <p><em>For more advice on UI design, subscribers can download the <a href="https://econsultancy.com/reports/user-experience-and-interaction-design-for-mobile-and-web/">User Experience and Interaction Design for Mobile &amp; Web Best Practice Guide</a>.</em></p> tag:econsultancy.com,2008:BlogPost/68984 2017-04-11T10:00:00+01:00 2017-04-11T10:00:00+01:00 How visual search is helping ecommerce brands Nikki Gilliland <p>I attended Brighton SEO last week, where Purma Virji from Microsoft gave a talk all about this topic. </p> <p>So, what exactly is visual search, and more specifically, how is it changing the way we buy online? With inspiration from Purma’s talk, here’s a bit of elaboration on the subject along with a few brand examples.</p> <h3>Visual search + artificial intelligence</h3> <p>Visual search works by comparing the pixels in imagery to identify and return results that are similar. </p> <p>So, instead of typing in a keyword such as ‘black mini dress’ - which will return thousands of general results – users can upload an image to help narrow it down to something much more specific.</p> <p>This technology is not brand new – you might recall Google Goggles being launched way back in 2010. Zappos also introduced a way to visually navigate through its vast shoe collection in 2009.</p> <p>More recently, however, advancements in artificial intelligence have meant that visual search is becoming much slicker, with the ability to compute more data at a much quicker rate. Purma coined the term ‘visual intelligence’ to describe this rapidly improving technology. In 2016, Bing added visual search to its app.</p> <h3>What are the benefits for ecommerce brands?</h3> <h4>Social discovery</h4> <p>According to research by Accenture, social media will become the preferred shopping channel for <a href="https://econsultancy.com/blog/68554-how-retailers-are-targeting-generation-z/" target="_blank">Generation Z</a>, with <a href="https://newsroom.accenture.com/news/generation-z-to-switch-the-majority-of-purchases-to-retailers-that-provide-the-newest-digital-tools-and-channels-accenture-research-reveals.htm" target="_blank">69% of young consumers</a> interested in purchasing directly through social networks.</p> <p>Visual search could offer a breakthrough for social sales. Pinterest’s Lens feature allows consumers to search, discover and shop even more products based on a single image. In turn, this presents a greater opportunity for ecommerce brands looking to drive purchases from the platform.</p> <h4>Capturing the spearfisher </h4> <p>Visual search is a particularly great tool for shoppers who are looking for a specific item – also known as ‘spearfishers’. This is because it reduces the amount of steps the user would otherwise have to go through, such as typing in a keyword or scrolling through results. Instead, the desired product is immediately brought to the shopper’s attention.</p> <p>In turn, visual search could also help to reduce basket abandonment, eliminating the tedious processes that usually frustrate and annoy users.</p> <h4>Cross-selling and inspiration</h4> <p>Another benefit of visual search is that it can be a great cross-selling tool. If a website does not have a desired product in stock, it is able to show similar or related items that might still prompt a purchase. Moreover, it can also help consumers to imagine how other products might complement it. For instance, someone might search for a red dress, but if they see an image of a woman wearing a red dress <em>and</em> a bag that completes the entire look – they might be inclined to buy more than originally intended. </p> <p>Another example is home décor, with consumers commonly using <a href="https://econsultancy.com/blog/68765-why-brands-should-be-making-more-use-of-pinterest/" target="_blank">Pinterest</a> to visualise or plan an entire room rather than just search and buy a single item.</p> <h3>Ecommerce brands using visual search </h3> <p>So, how are brands using the technology? Here are just a few examples to appear so far.</p> <h4>Amazon</h4> <p>Amazon introduced visual search into its main iOS app in 2014 (and with the Firefly app on the ill-fated Fire phone), giving users the option to search using their smartphone camera. It is mainly designed to capture the ‘showrooming’ shopper – someone who is visiting a physical store but checking comparison prices online.</p> <p>While it doesn't recognise every single item (especially if unboxed), reviews suggest that it's particularly good for recognising images like DVDs or records.</p> <p><img src="https://assets.econsultancy.com/images/0008/5351/Amazon.JPG" alt="" width="472" height="465"></p> <h4>Target</h4> <p>Target’s ‘In a Snap’ app also launched back in 2014, allowing users to shop for items from the pages of magazines and printed ads - removing the need to manually search for the product online.</p> <p>While this version doesn’t appear to be available anymore, Target’s main app also allows shoppers to scan barcodes in-store to view more information like reviews and ratings. Again, this speeds up the path to purchase, taking away the need to ask for further assistance from in-store employees.</p> <p><img src="https://assets.econsultancy.com/images/0008/5354/Target.JPG" alt="" width="600" height="315"></p> <h4>Neiman Marcus</h4> <p>Alongside fellow US retailer, Macy's, Neiman Marcus has increased its focus on visual search technology in recent years. Its app now allows users to upload photos to find similar styles to buy on the website.</p> <p><img src="https://assets.econsultancy.com/images/0008/5353/Neiman_Marcus.JPG" alt="" width="600" height="298"></p> <p>This taps into real-time demand, with consumers able to search and buy an item they like on-the-spot, whether it’s an outfit on a celebrity or someone passing by in the street. Camera-discretion is advised.</p> <p><em><strong>Now read:</strong></em></p> <ul> <li><a href="https://econsultancy.com/blog/68777-10-uses-of-computer-vision-in-marketing-customer-experience/">10 uses of computer vision in marketing and customer experience</a></li> <li><a href="https://www.econsultancy.com/blog/68919-how-visual-social-listening-is-helping-fmcg-and-beyond/">How visual listening is helping FMCG brands and beyond</a></li> </ul> tag:econsultancy.com,2008:BlogPost/68971 2017-04-07T03:00:00+01:00 2017-04-07T03:00:00+01:00 Does Airbnb stand a chance in China? Jeff Rajeck <p>The story of a Western brand making a big announcement about launching in China and then withdrawing after a couple of years of disappointing results is on the verge of becoming a cliché.</p> <p>Recent examples of this tale of woe abound:</p> <ul> <li> <strong>ASOS</strong>: Which blew £10m trying to launch its own Chinese ecommerce site in 2014 and finally withdrew in April 2016.</li> <li> <strong>Delivery Hero</strong>: Which pulled out of China last year as well due to immense competition, laying off 400 staff in the country.</li> <li> <strong>Uber</strong>: Whose truce with Didi Chuxing in August essentially ended its adventures in China.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0008/5273/asos.jpg" alt="" width="800" height="450"></p> <p>Hope, however, springs eternal and with <a href="http://money.cnn.com/2017/03/09/technology/airbnb-billion-funding/">its recent $1bn funding</a>, <strong>Airbnb's executives are almost certainly on the hook to conquer the world, including China.</strong></p> <p>Will Airbnb succeed where others have failed? Or will the firm join the long list of other Western brands that failed to tame the red dragon? It's tough to say, but from a marketing perspective, it's not looking good for a few reasons.</p> <h3>1. The company blew it on the name</h3> <p>Airbnb went through a intense branding exercise in China. According to AdAge, Airbnb spent a year deciding on a Chinese character name for the company and, in that time, <a href="http://adage.com/article/cmo-strategy/hard-localize-brand-china-airbnb-learned/308405/">brand consultancy Labbrand tested over 1,000 possibilities with consumers.</a></p> <p>Yet the name they came up with for the China Airbnb brand (ài bi yíng) has been widely panned in the press <a href="http://www.campaignasia.com/video/china-to-airbnb-new-chinese-name-is-ugly-sounding-like-a-filthy-love-hotel/434914">and on social media:</a> </p> <ul> <li>"Ugly-sounding"</li> <li>"Sounds like a filthy love hotel"</li> <li>The brand "might as well stick to having no Chinese name" </li> </ul> <p>Others complained that the name is hard to say and it is remarkably similar to Microsoft's Bing search engine (bì yìng) which, apparently, is a <a href="http://shanghaiist.com/2014/03/28/hutong-school-pick-your-chinese-brand-name-carefully.php">term associated with illness</a>.</p> <p><img src="https://assets.econsultancy.com/images/0008/5274/airbnb-chinese-name.jpg" alt="" width="800" height="450"></p> <p>This is not a good start for Airbnb in the country. <a href="http://www.branding.news/2017/03/29/airbnbs-new-chinese-brand-name-welcomes-each-other-with-love/">According to Branding News</a>, "a good, and wisely-chosen Chinese name starts to attract consumers, but if not selected properly, the brand name may push away clients."</p> <p>One company which seems to have figured this out is Mercedes-Benz. The closest approximation of the company name in Chinese is <em>bensi</em> which sounds like 'rush to your death'. Because of this the company changed its Chinese brand name to a distincly different term <em>ben chi</em>, which translates to 'dashing speed'. In 2016, Mercedes-Benz celebrated the sixth successive year of growth.</p> <p>Best Buy, the American electronics firm, sadly did not do the same. Its Chinese name, <em>Baisimai</em>, translated to "think it over 100 times before buying" which is, perhaps, the opposite of the message that the company wanted to convey. Best Buy shuttered its Chinese operations after just a few years in the country.</p> <h3>2. Airbnb is up against well-established incumbents</h3> <p>Unsurprisingly, businesses which help consumers rent spare rooms on the internet already exist in China – <strong>in droves.</strong></p> <p>Local firms Tujia, Xiaozhu, and Zhubaijia are all known as the "Airbnb of China" and each have hundred of thousands of rooms available for booking already, compared to Airbnb's 75,000. And, because the companies are homegrown they are more likely to understand local tastes, housing standards, and how to build customer trust in the country.</p> <p><img src="https://assets.econsultancy.com/images/0008/5275/xiaozhu.jpg" alt="" width="800" height="464"></p> <p>That said, Airbnb is initially targeting outbound Chinese travelers in order to play on its strengths. None of these three local companies has much business outside of China where Airbnb dominates.</p> <p>This is a wise choice, <a href="http://jefftowson.com/2017/01/what-airbnb-should-do-differently-than-uber-in-china/">as one commentator notes</a>, but <strong>another local competitor, Ctrip, is already a significant player in the outbound China travel market.</strong> To illustrate this point, <a href="https://techcrunch.com/2016/11/23/ctrip-skyscanner/">Ctrip recently purchased UK-based Skyscanner</a> to further its international growth.</p> <p>This is not to say that Airbnb should avoid any market with competition, but it should consider the 'dead bodies' of other Western companies in front of them and <strong>understand that its stellar reputation in the West may not be sufficient to win China.</strong></p> <h3>3. Airbnb has not yet partnered with Baidu, Alibaba, or Tencent (aka BAT)</h3> <p>Possibly the most significant obstacle that Airbnb must overcome is that it has not yet partnered with one of the three big internet players in China: <strong>Baidu, Alibaba, or Tencent (collectively known as BAT).</strong></p> <p>It's difficult to overstate the importance of BAT in China. The total 2016 revenues of the three companies is estimated at $33bn and <strong>their combined market cap exceeds $500bn.</strong></p> <p>Also, Chinese netizens spend more that 60% of their mobile time using a service offered by BAT. This is largely because these three companies 'own' the high-frequency life services: group purchase, movie tickets, taxi hailing, and food delivery.</p> <p>With stats like this behind them, <strong>partnering with one of the BATs is essential for any Western brand to break into China.</strong> </p> <p><img src="https://assets.econsultancy.com/images/0008/5276/Baidu-Alibaba-Tencent-800x200.jpg" alt="" width="800" height="200"></p> <p>Interestingly none of the big three have yet invested in any of the clones and so <strong>Airbnb may be able to fill the homesharing niche for one or more of them.</strong></p> <p>Regardless of whether they do, though, Airbnb should seriously consider about how it is going to fit into the existing Chinese digital landscape before making too many more announcements about breaking into China.</p> <h3>So...</h3> <p>So will we soon be reading about Airbnb's massive losses in China and its decision to focus on 'more profitable, non-Chinese markets' in a few years' time?</p> <p>It's not clear one way or the other, but Airbnb does face a number of challenges in the country. While the name controversy may well disappear in time, <strong>the existing competition and the uncertainty about BAT's stance on the firm are two major issues which need to be resolved.</strong></p> <p>So while the funeral announcement may be premature, it is also a bit too soon for Airbnb to trumpet its arrival in China with much fanfare.</p> tag:econsultancy.com,2008:ConferenceEvent/863 2017-03-26T15:24:36+01:00 2017-03-26T15:24:36+01:00 Digital Outlook 2017 Part 2 - The Sequel <p>We hear you, and we understand that there are still many digital marketing topics that were not covered at <a href="https://www.facebook.com/pg/Econsultancy/photos/?tab=album&amp;album_id=10154296603034327" target="_blank">Digital Outlook 2017</a>.</p> <p>We have selected the next six trending digital marketing topics to be presented at this event. Join us in this half day session to find out the trends and digital marketing best practices for the year.</p> <p>There will be 6 keynotes - all aiming to provide the audience with a outlook for the year.</p> <p>&gt;&gt;&gt; <strong>Overview of the 2017's trending digital marketing topics</strong></p> <p>&gt;&gt;&gt; <strong>Trends, best practices and c</strong><strong>ase studies</strong></p> <p>Hear from leading practitioners and network with industry players to learn what digital marketers should focus today to plan for tomorrow and succeed later.</p> <h4>Special Announcement</h4> <p>In partnership with NTUC, e2i and WSG, Econsultancy is carring out a research on <strong>digital marketing training and development needs in Singapore for 2017</strong>. Please help us improve our training courses by completing the short survey <a href="http://www.surveygizmo.com/s3/3421857/b9062f550750" target="_blank">here</a>. In return for your time, you can redeem a discount on Econsultancy training courses in Singapore. </p>