The increase in m-commerce has been supported by the growth of services such as click/reserve and collect, which have taken a prominent role in the shopping cycle. According to the Index, purchasing/reserving online and collecting in store, now accounts for 25% of multichannel retailers’ sales. Multi-channel retailers, those with both an online and high-street presence, recorded a month-on-month growth of 16% in December.
This strong performance in December was recorded across the Index and not limited to just one particular sector. Clothing and electrical goods recorded particularly solid results, with a year-on-year increase of 17% in clothing and 18% in electricals, fuelled by the popularity of new budget tablet devices, iPhone models and gaming platforms.
UK is one of the most mature markets – as consumers most avid ecommerce users
2013 ‘year of the mobile’: twice as much spent on mobile devices in December 2013 compared to December 2012
Supported by the growth of services such as click/reserve and collect – which now accounts for 25% of multichannel retailers’ sales
US
US eCommerce growth slows as US retailers fail to capitalize on overseas eCommerce market
APAC
In 2014, for the first time, consumers in APAC will spend more on ecommerce purchases than those in North America
China will take the majority of this – will take in six of every $10 spent online in APAC
3. eCommerce – key stats
B2C eCommerce Sales Worldwide
•
$trn
2.5
-
2.345
2.043
2
•
1.763
1.248
1.058
•
1
Largest market in EU
39m out of 63.3m of UK population already buy online
2013 ‘year of the mobile’
-
1.5
1.5
UK is one of the most mature markets
Twice as much spent on mobile devices in December
2013 compared to December 2012
Growth in 2013, supported by:
-
Increase in services such as click/reserve and collect
0.5
•
0
2012
2013
2014
2015
2016
2%
4%
-
2017
B2C eCommerce Sales Worldwide in 2014, by region
US retailers fail to capitalize on overseas market
•
Over 1/3 of US retailers have not expanded
internationally
In 2014, consumers in APAC will spend more online than
those in North America
4%
35%
23%
APAC
North America
Wesern Europe
Central & Eastern Europe
Latin America
Middle East & Africa
32%
•
APAC will claim more than 46% of digital
buyers, onlly16.9% of population
Growth in 2014 will come from:
-
-
Expanding online and mobile user bases in emerging
markets
Increasing mCommerce sales
Advancing shipping and payment options
Push into new international markets by major brands
Sources: eConsultancy (January 2014), IMRG (January 2014), International Business Times (October 2013), eCommerce week (January 2014), bpost international (January 2014)
2
4. Trends – 7 predictions for 2014
1.
Tablet first design – default for responsive websites is still desktop – with tablets overtaking PCs in 2016 it is likely
that responsive websites will be designed for tablet first
2.
Cross-channel purchase journeys – currently cross-channel purchase journeys are being enabled by location
and identification tools / solutions, i.e. iBeacons, and wearables such as Galaxy gear
3.
Mobile payments won’t take off until 2015 – consumers still need a convincing reason on why they should use
mwallets and until then retailers are unlikely to invest in this technology. A large number of different mwallet
technologies have come to market recently – still not known which of these will make the biggest impact
4.
Consumers learning value of data and privacy – consumers are becoming more savvy about their digital
presence and the value of their data to advertisers. Needs to be a clearer value exchange – so consumers are
incentivised to provide etailers with data about themselves and are aware on where that data is going
5.
Mobile and tablet purchase points – according to some sources one in five store checkouts will take place on a
mobile / tablet by 2015
6.
Reduce high return rates – etailers currently face high return rates, on average return rates are 25% but some
etailers face return rates of >50%. Customers need to have enough information to make an informed purchase
and there is too much inconsistency in sizing – solutions such as virtual changing rooms are attempting to
combat this
7.
Learn how to accelerate growth – for bricks & mortar retailers it was easy to accelerate growth by opening a
new store – online retailers need to master how to continue growth of their online stores, by both attracting
new customers and retaining existing customers
Sources: The Drum (February 2014), Talk Business Magazine (December 2013),
3
5. eCommerce platform / full solution providers landscape
Platform Providers
Full Solution Providers
Provide fundamental eCommerce platform. Reusable software that can be implemented by third
party or in-house developers
Use either third party or proprietary software as a
starting point in delivering a fully functional online
store
4
8. What do they do?
Establish a new eCommerce
platform
•
Platform
Example – Case study
Systems Integrator
•
•
•
•
•
Developed and
implemented solution
architecture
Brand
Creative
Technical strategies
Hybris platform – local
integration hubs, templates
and merchandising
configurations
Harmonised digital
presence, brand consistency
to user experience and
product representation
Results
•
Roll out of platform in
US (April 2013)
Japan (September
2013)
UK (December 2013)
7
9. What do they do?
Service Offering
• Magento Gold Solution Partner
• Delivers Magento Enterprise platform but as a Summit
Magento solution
- Summit delivers, maintains and hosts this platform
Platform
• Integrating back end systems (ERP) e.g.
SAP, Navision, Axapta, Sage
• Digital marketing services
- SEO – ensure platform is SEO friendly
- UX – optimise user experience and maximise
conversion through MVT, analytics and usability testing
• Provide advice and recommendations to improve platform
every month
• Solution architects, developers and testers to improve
functionality and performance of platform
• Clients
8
11. 2013 Global M&A Deals – Infographic
Total deals = 30
Geographical Split
Canada
1 deal
Eastern
Europe
0 deals
Social Media Agency 14
Digital media
Adtech
Adtech
UK
7 deals
Q1
11
10
Marketing services
Western Europe
6 deals
North America
7deals
By quarter
Subsector Split
6
10
APAC
9 deals
Q2
South America
0 deals
Other – 27 deals
Middle East
0 deals
8
Q3
Africa
0 deals
Major Buyers
Deal type
1
Q4
eBay
Yahoo
2
2
PE/VC backed
deals
9
Cross border
deals
2
12. M&A market overview
Date
Buyer
Country of
Buyer
Target
Country of
Target
EV (£m)
EV/REV
EV /
EBIT
Target Description
Oct-13
RIESTER
US
Search-Werks
US
n.a.
n.a.
n.a.
Full service eCommerce
agency
UK
6*
n.a.
n.a.
Digital solutions provider
Oct-13
UK
Aug-13
Newgistics
US
Tacit
Knowledge
US
n.a.
n.a.
n.a.
eCommerce development and
consulting services
Aug-13
ICF
International
US
eCommerce
Accelerator
US
n.a.
n.a.
n.a.
Multi channel eCommerce
integrator
Aug-13
Hirschen
Group
Germany
Tengelmann
Germany
n.a.
n.a.
n.a.
Full service eCommerce
agency
Jun-13
Otto
Germany
NetImpact
Germany
n.a.
n.a.
n.a.
Digital agency that specialises in
eCommerce
May-13
Accenture
UK
Acquity Group US
186
2.0x
16.6x
Full service eCommerce
agency
Aug-13
Publicis
France
Neev
India
n.a.
n.a.
n.a.
Technology services provider in
eCommerce
Mar-13
Seren
UK
BaoBaz
UK
n.a.
n.a.
n.a.
Full service eCommerce
agency
Mar-13
St Ives
UK
Amaze
UK
15
1.2x
9.4x
Digital marketing and
technology agency
Mar-13
BiteDigital
UK
LoSource
UK
n.a.
n.a.
n.a.
Magento team – specialists in
Magento eCommerce platform
Jan-13
WPP
US
Salmon
UK
n.a.
n.a.
n.a.
eCommerce digital agency
Nov-12
Lbi
The
Netherlands
Sceneric
UK
n.a.
n.a.
n.a.
eCommerce consultancy and
systems integrator
Sep-12
Navarre
US
SpeedFC
US
43
1.1x
35.0x
eCommerce service provider
Jun-12
GroupFMG
US
Pod1
US
n.a.
n.a.
n.a.
eCommerce website design &
development agency
Jan-12
Zeon Solutions
US
Grand River
US
n.a.
n.a.
n.a.
eCommerce development firm
Note:
*Deal size rather than EV
Initial consideration has been used to calculate EV
EBIT is adjusted for exceptionals where appropriate
11
13. News
PFSweb, an ecommerce solutions provider, looks to make both systems
integrator and pure-play digital agency acquisitions
Webtise, an eCommerce agency is looking to acquire a specialist
eCommerce digital agency to strengthen expertise in SEO, PPC, social
media & conversion rate optimisation
Sources: The Business Desk (December 2013), Mergermarket (January 2014)
12
Hinweis der Redaktion
The increase in m-commerce has been supported by the growth of services such as click/reserve and collect, which have taken a prominent role in the shopping cycle. According to the Index, purchasing/reserving online and collecting in store, now accounts for 25% of multichannel retailers’ sales. Multi-channel retailers, those with both an online and high-street presence, recorded a month-on-month growth of 16% in December.This strong performance in December was recorded across the Index and not limited to just one particular sector. Clothing and electrical goods recorded particularly solid results, with a year-on-year increase of 17% in clothing and 18% in electricals, fuelled by the popularity of new budget tablet devices, iPhone models and gaming platforms.http://www.imrg.org/index.php?catalog=534http://www.ibtimes.com/us-e-commerce-growth-slows-international-e-commerce-growth-booms-especially-russia-middle-eastUK is one of the most mature markets – as consumers most avid ecommerce users2013 ‘year of the mobile’: twice as much spent on mobile devices in December 2013 compared to December 2012Supported by the growth of services such as click/reserve and collect – which now accounts for 25% of multichannel retailers’ salesUSUS eCommerce growth slows as US retailers fail to capitalize on overseas eCommerce marketAPACIn 2014, for the first time, consumers in APAC will spend more on ecommerce purchases than those in North America China will take the majority of this – will take in six of every $10 spent online in APAC
The increase in m-commerce has been supported by the growth of services such as click/reserve and collect, which have taken a prominent role in the shopping cycle. According to the Index, purchasing/reserving online and collecting in store, now accounts for 25% of multichannel retailers’ sales. Multi-channel retailers, those with both an online and high-street presence, recorded a month-on-month growth of 16% in December.This strong performance in December was recorded across the Index and not limited to just one particular sector. Clothing and electrical goods recorded particularly solid results, with a year-on-year increase of 17% in clothing and 18% in electricals, fuelled by the popularity of new budget tablet devices, iPhone models and gaming platforms.http://www.imrg.org/index.php?catalog=534http://www.ibtimes.com/us-e-commerce-growth-slows-international-e-commerce-growth-booms-especially-russia-middle-eastUK is one of the most mature markets – as consumers most avid ecommerce users2013 ‘year of the mobile’: twice as much spent on mobile devices in December 2013 compared to December 2012Supported by the growth of services such as click/reserve and collect – which now accounts for 25% of multichannel retailers’ salesUSUS eCommerce growth slows as US retailers fail to capitalize on overseas eCommerce marketAPACIn 2014, for the first time, consumers in APAC will spend more on ecommerce purchases than those in North America China will take the majority of this – will take in six of every $10 spent online in APAC
IDC TOP 10 PREDICTIONS - http://www.idc.com/getdoc.jsp?containerId=prUS24512213
The increase in m-commerce has been supported by the growth of services such as click/reserve and collect, which have taken a prominent role in the shopping cycle. According to the Index, purchasing/reserving online and collecting in store, now accounts for 25% of multichannel retailers’ sales. Multi-channel retailers, those with both an online and high-street presence, recorded a month-on-month growth of 16% in December.This strong performance in December was recorded across the Index and not limited to just one particular sector. Clothing and electrical goods recorded particularly solid results, with a year-on-year increase of 17% in clothing and 18% in electricals, fuelled by the popularity of new budget tablet devices, iPhone models and gaming platforms.http://www.imrg.org/index.php?catalog=534http://www.ibtimes.com/us-e-commerce-growth-slows-international-e-commerce-growth-booms-especially-russia-middle-eastUK is one of the most mature markets – as consumers most avid ecommerce users2013 ‘year of the mobile’: twice as much spent on mobile devices in December 2013 compared to December 2012Supported by the growth of services such as click/reserve and collect – which now accounts for 25% of multichannel retailers’ salesUSUS eCommerce growth slows as US retailers fail to capitalize on overseas eCommerce marketAPACIn 2014, for the first time, consumers in APAC will spend more on ecommerce purchases than those in North America China will take the majority of this – will take in six of every $10 spent online in APAC
Neoworks – systems integrator that specialises in architecture, implementation, integration and support of ecommerce platforms
We are a Magento Gold Solution Partner.Summit Magento is Magento Enterprise – pre-optimised for performance, scalability and conversion. Faster to deploy, will never slow down, no barriers to growth, improved conversion, lower hosting costs, reduced total cost of ownershipDelivering, maintaining and hosting ‘enterprise-level’ Magento projects for pure play and multi-channel retailers.Integrateretail systems with Magento and have experience with different ERP, back office systems including SAP, Navision, Axapta, Sage. Based on MS BizTalk, and an integral part of our retail eCommerce platform, our Magento Enterprise-integrated middleware is designed to handle and transform the many data sources and data formats needed to run a medium to large retail eCommerce site.Built specifically for retailers, our middleware layer simplifies integration between Magento Enterprise and your back-office systems removing the need for custom development and reducing complexity.Team of solution architects, developers and testers who understand Magento and how to get the most from the platform in terms of functionality and performance.Professional services team who will lead the reliable delivery of your project from discovery through to launch using a proven agile methodology.Specialist user experience team who will ensure the site provides a great user experience and maximises conversion rate through the use of MVT, analytics and usability testing.Provide clients with a continuous roadmap of development through dedicated teams who offer proactive advice, recommendation to improve the platform every month. Our online marketing team feed into the platform specification ensuring that every site we launch is SEO friendly and ready to convert traffic from any channel1. Hosting Maintenance & SupportServer monitoringSecurity patchingApplication installationBackupsInterface support2. Application Maintenance & SupportMagento patching, upgrades, application and integration supportBug fixing3. User SupportHelp desk, ticketed system, 24/7 supportFront line support for all requestsBacked by SLA.
The increase in m-commerce has been supported by the growth of services such as click/reserve and collect, which have taken a prominent role in the shopping cycle. According to the Index, purchasing/reserving online and collecting in store, now accounts for 25% of multichannel retailers’ sales. Multi-channel retailers, those with both an online and high-street presence, recorded a month-on-month growth of 16% in December.This strong performance in December was recorded across the Index and not limited to just one particular sector. Clothing and electrical goods recorded particularly solid results, with a year-on-year increase of 17% in clothing and 18% in electricals, fuelled by the popularity of new budget tablet devices, iPhone models and gaming platforms.http://www.imrg.org/index.php?catalog=534http://www.ibtimes.com/us-e-commerce-growth-slows-international-e-commerce-growth-booms-especially-russia-middle-eastUK is one of the most mature markets – as consumers most avid ecommerce users2013 ‘year of the mobile’: twice as much spent on mobile devices in December 2013 compared to December 2012Supported by the growth of services such as click/reserve and collect – which now accounts for 25% of multichannel retailers’ salesUSUS eCommerce growth slows as US retailers fail to capitalize on overseas eCommerce marketAPACIn 2014, for the first time, consumers in APAC will spend more on ecommerce purchases than those in North America China will take the majority of this – will take in six of every $10 spent online in APAC
Last years (2013) deals are generally smaller although we had the likes of Yahoo, Salesforce, Amazon play the game? The overall theme this year is companies consolidating their positions by acquiring companies with complementary products, technologies and talent.Total 80 deals in the space (28 Agency, Digital 27 (i.e. platform, network) , AdTech 25)Geographical split = US lionshare of deals with 43, followed by Western Europe 14, APAC 11, UK 6 deals (WAS, Ciceiro – Yatterbox , Karma – Grape Digital)Results deals: WAS , VocanicDeal type: Almost quarter of deals were cross border , unsurprisingly as previously mentioned startegics dominate the space only had 5 PE deals (one of the them was direct investment) .. LX Ventures acquried Mobio Technologies (operates social networking site)Quarterly: First Half of year quiet strong 52 deals activity dropped WHY?Buyers:WPP – acquired Muzy (early stage microbloging service) , Vocanic (social media agency) , Social Lab Belgium (social media marketing) , Y &R advertising (Turkey)To the new (Global network) – digital marketingTwitter – Bluefin and TendrPublicis, Salesforce, Amazon, Facebook also made acquisitions in the spaceTwitter IPORaised $1.82 billion (sold 70million shares at $26 each after offering them for $23-$25) above proposed rangeAt $14.2 billion, Twitter is valued at 12.4 times estimated 2014 sales of $1.14 billion, That compares with the 11.6 times 2014 sales that Facebook now trades at, and LinkedIn’s multiple of 12.2 times sales, the data show