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For: eBusiness & Channel Strategy Professionals Latin America eCommerce Forecast, 2014 To 2019 by Zia

For: eBusiness & Channel Strategy Professionals

Latin America eCommerce Forecast, 2014 To 2019

by Zia Daniell Wigder, January 15, 2015

Key TaKeaways

Online Retail In Latin america Is Poised For significant Growth Today’s online retail market in Latin America is set to grow substantially: By 2019, shoppers in just three markets will spend around $32 billion more online than they did in 2014. Online retail markets will be driven by a series of economic factors as well as by increasingly advanced digital offerings from both traditional and web-only retailers.

Brazil Remains The Largest Market In The Region By a wide Margin Brazil is currently -- and will remain -- the largest eCommerce market in Latin America:

Online retail sales of $18 billion this year are almost triple those for Mexico and Argentina combined.

argentina and Mexico Offer Opportunities Despite Their smaller size Opportunities exist in Argentina’s $3.4 billion and Mexico’s $2.8 billion online retail markets today. The smaller size of the markets means fewer global brands have made these markets a priority as compared to Brazil, but Mexico in particular is becoming a popular market for eCommerce brands expanding internationally.

For eBusiness & Channel strategy ProFessionals

January 15, 2015

For eBusiness & Channel strategy ProFessionals January 15, 2015
& Channel strategy ProFessionals January 15, 2015 Latin a merica eCommerce Forecast, 2014 To 2019 the

Latin a merica eCommerce Forecast, 2014 To 2019

the online retail markets of Brazil, argentina, and mexico Will more than Double By 2019

by Zia Daniell Wigder with Carrie Johnson, Jeff Wray, and rebecca Katz

why ReaD ThIs RePORT

With a population of over a half billion and two countries among the world’s 15 largest economies, Latin America has increasingly been on the radar of eBusiness leaders looking to expand their digital offerings. Doing business in the region can be a challenge, however. Regulatory hurdles, infrastructure issues, and slow economic growth rates present hurdles in key Latin American markets. Despite these challenges, eCommerce continues to charge forward in every country across the region. In this forecast, we dive into the size and growth rates of online retail in Brazil, Argentina, and Mexico and identify some of the key factors that are driving and inhibiting eCommerce in the region; it updates the report published on December 17, 2013 entitled Latin America Online Retail Forecast, 2013 To 2018.

entitled Latin America Online Retail Forecast, 2013 To 2018. table of Contents 2 Latin america sees

table of Contents

2

Latin america sees a Growing Middle Class But a Variety Of Challenges

the Population in the region is young and increasingly affluent

Key Digital trends extend throughout the region

4

Brazil Charges Forward as The Region’s Dominant eCommerce Market

6

Global Brands are Underrepresented In argentina’s Market

7

Mexico Is shifting Toward Online Retail

reCommenDations

9 Take The Time To Fully Understand eCommerce Maturity Levels

10 supplemental Material

notes & resources

Forrester used data from the Forrester research online retail Forecast, 2014 to 2019 (latin america) for this report.

related research Documents

october 20, 2014

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LaTIn aMeRICa sees a GROwInG MIDDLe CLass BUT a VaRIeTy OF ChaLLenGes

Latin American markets offer brands wildly different opportunities when it comes to eCommerce. Markets like Chile are attractive given the country’s digitally savvy shoppers and the government’s support of innovation — yet Chile’s population of 17 million is less than 10% that of Brazil. Colombia’s population of nearly 50 million is more appealing from a size perspective; however, its eCommerce market remains at a very early stage. In this report, we focus in on the three largest economies in the region — Brazil, Mexico, and Argentina — each of which presents brands with different opportunities.

The Population In The Region Is young and Increasingly affluent

To understand the online retail opportunity in Latin America and to put the region in a global context, it’s critical to understand some of the market dynamics in the region and the shifts that are taking place. In Latin America:

The population is relatively young. Young, digital consumers often help drive eCommerce markets by spending their newfound wealth online. Compared with its US and European counterparts, Latin America certainly boasts young populations: The average age in Argentina and Brazil is 31, and in Mexico, it’s just 27. 1 Contrast that with the US, where the average age is 38, or the UK, where it’s over 40. Having a young base of engaged online users can help lay the groundwork for eCommerce to flourish, although it can take time for consumers to move along the eCommerce adoption path — from the time they first engage through digital channels to the final stage in which they make a wide variety of purchases online. 2

The number of middle-class consumers has skyrocketed. As individuals move out of poverty into the middle class, consumer spending — both online and offline — follows. In Latin America, the World Bank estimates that more than 50 million people joined the middle class between 2000 and 2010. 3 The bulk of this new middle-class growth — some 35 million people — has been in Brazil, yet countries across the region have benefited from economic growth and declines in poverty rates. 4 In 2013, GDP per capita in Argentina, Brazil, and Mexico were all between $10,000 to $15,000. 5 These figures are far higher than those of many large emerging markets in Asia, such as China, India, and Indonesia.

The focus on educating digital leaders is growing. The governments in Latin America have often been taken to task for an insufficient focus on education; today, educational institutions in both Brazil and Mexico spend only about one-third of the Organisation for Economic Co- operation and Development (OECD) average per student on education. 6 Recent initiatives, however, are helping to lay the groundwork for a larger digital workforce. There is increased focus on the shortcomings in public education, and new courses aimed at preparing a new generation of digital professionals are cropping up across the region. Companies operating in

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Latin America often talk about the shortage of eCommerce talent in the region — especially in key areas such as analytics and customer experience — but this dynamic will shift. 7 Both public and private educational institutions are adapting to meet the needs of thriving digital markets, and companies are starting to make digital training programs a core part of their organizations.

Key Digital Trends extend Throughout The Region

While each market in Latin America comes with its own unique set of opportunities and challenges, we can observe certain digital trends occurring throughout the region. In many countries in Latin America, we find that:

Social engagement with brands is high. In the US, social networks have not always met the expectations of brands looking to connect with and influence consumers. 8 In Latin America, however, consumers have demonstrated greater enthusiasm for using these social networks to interact with brands. For example, just 21% of US online users said it was “cool to be associated with a company/brand on social media” — by contrast, over one-third of online users in metropolitan Brazil, Argentina, and Mexico agreed with that statement. 9 Similarly, far more online users in Latin America think social media websites and online social tools are a great way to communicate with brands/companies as compared to their US counterparts. 10

Barriers to consumer trust remain. For eCommerce to become a truly mass-market phenomenon in Latin America, retailers need to overcome a variety of barriers to consumer trust. These consumer trust issues are arguably the most significant in Mexico, where eCommerce remains at an earlier stage than in Brazil or Argentina: Fears that products ordered online may not be delivered or may be delivered in poor condition have presented hurdles to online retailers in recent years. 11 However, concerns about shopping online linger even as markets develop. In Brazil, for example, where a large percentage of consumers take advantage of eCommerce, less than half of online users in metro Brazil feel their credit card information is very secure when shopping online. 12

Omnichannel retailers play a key role in driving eCommerce. Latin American eCommerce differs from that in many other emerging markets in that omnichannel retailers have helped drive the market forward. Unlike markets such as China and India where web-only players dominate, many large traditional retailers in Brazil, Argentina, and Mexico have embraced eCommerce and have started to roll out omnichannel offerings. Indeed, traditional retailers tend to be trusted brands with many decades of experience in these markets. As a result, they are well positioned to play an essential role in boosting consumer confidence in the online channel.

Growth is accelerating in smaller cities. In virtually all emerging eCommerce markets, initial growth is concentrated in the large, relatively wealthy, urban areas. Latin America is no exception: Whether it’s Rio de Janeiro and São Paulo in Brazil, Buenos Aires in Argentina,

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or Mexico City in Mexico, the lion’s share of early growth comes from these areas. Over time, however, growth starts to shift to smaller cities throughout the country. Ultimately, many online retailers find the majority of their growth comes from consumers in smaller towns and cities who value the product selection offered online but don’t have the same access to brands through local retail stores.

Credit and debit cards aren’t the only payment games in town. As in most emerging eCommerce markets, a large percentage of consumers in Latin America don’t own credit cards, and many don’t have bank accounts. To reach those without credit cards, debit cards, or bank accounts, online merchants have turned to alternative payment types. In Mexico and Argentina, some online retailers offer cash on delivery (COD) as an option; in Brazil, the boleto bancário (a printable, bar-coded invoice that can be paid online or offline) plays a similar role. 13 In Mexico, some retailers allow consumers to pay at convenience stores. Consumer possession of electronic payment types is creeping up, however: A 2013 study by the Brazilian Association of Credit Card Companies and Services (ABECS)of consumers in 11 major cities found that three- quarters of Brazilians over the age of 18 owned some means of electronic payment, whether a credit, debit, or store card. 14

Mobile is growing rapidly, with the current focus on smartphones rather than tablets. Smartphone penetration is increasing rapidly across Latin America. We forecast smartphone penetration as a percent of the total population to be almost 35% in Mexico, almost 44% in Brazil and nearly 45% in Argentina. 15 Retailers across the region are rolling out mobile apps and websites: Our forecast shows combined smartphone- and tablet-driven revenues in Brazil representing approximately 10% of all eCommerce sales in 2014, while the figures in Argentina and Mexico are slightly higher. 16 To date, most retailers have focused nearly all of their efforts on smartphones, however, rather than tablets.

BRazIL ChaRGes FORwaRD as The ReGIOn’s DOMInanT eCOMMeRCe MaRKeT

Brazil remains the single largest online retail market in Latin America by a wide margin. We forecast overall business-to-consumer (B2C) and consumer-to-consumer (C2C) online retail revenues of $17.8 billion in 2014, increasing to $40.8 billion by 2019 — a compound annual growth rate (CAGR) of 18% (see Figure 1). The number of online buyers will increase from 33.5 million to 61.8 million. A number of factors will influence the size and growth rates of online retail in Brazil:

Economic growth rates have declined, but eCommerce continues to grow. Despite Brazil’s economic momentum in the past, the recent economic situation in Brazil has looked less rosy. The World Bank’s projected GDP growth rate for Brazil in 2014 and 2015 is considerably lower than that of Mexico, and a magnitude below countries like China and India. 17 Yet eCommerce often remains a bright spot when economies slow: In 2008, for example, many leading omnichannel retailers in the US saw their online revenues continue to grow, even as the

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economy contracted and offline sales declined. 18 In Brazil, this same dynamic is set to take place, with online retail revenues continuing their upward trajectory, even as overall economic growth rates remain low.

Online buyers in Brazil cross social classes — and increasingly buy across categories. In Brazil, eCommerce isn’t heavily concentrated within the middle and upper-middle classes as it is in some other markets. Almost one-third of low-income online consumers in metropolitan Brazil have bought and paid for a purchase online in the past three months, compared with just 11% in metropolitan Mexico. 19 There is much discussion about the “C and D classes” buying online in Brazil, a dynamic that is essential for eCommerce markets to truly flourish. Additionally, online shoppers in Brazil increasingly buy across categories rather than just in early-adopter categories, such as consumer electronics or computer hardware. Today, online shoppers in Brazil are starting to buy in categories like beauty and apparel — categories that often shift online later.

Both web-only and traditional retail players have a strong presence in the Brazilian market. The large players in Brazil’s eCommerce market include a combination of web-only players as well as omnichannel retailers. Companies that operate multiple online retail sites, such as B2W (which operates eCommerce sites like Americanas.com, Shoptime.com, and Submarino.com) and Nova Pontocom (which operates the eCommerce sites of retailers Casas Bahia, Extra, and Pontofrio), hold a large percentage of the market through these online properties. Other web- only players like MercadoLivre and Netshoes also play prominent roles in the market, while more recent entrants like Dafiti have started to push categories like apparel online. Additionally, Brazil has seen traditional retailers like Magazine Luiza embrace the online channel relatively early on, with many starting to explore more advanced omnichannel features.

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latin america eCommerce Forecast, 2014 to 2019 6 Figure 1 Forecast: Online Retail Spending In Brazil

Figure 1 Forecast: Online Retail Spending In Brazil (B2C And C2C), 2013 To 2019

Total online retail spending (B2C and C2C) (US$ billions)

Total online buyers (millions)

Forecast 40.8 35.3 30.2 25.7 21.6 17.8 15.1 2013 2014 2015 2016 2017 2018 2019
Forecast
40.8
35.3
30.2
25.7
21.6
17.8
15.1
2013
2014
2015
2016
2017
2018
2019
61.8
54.3
47.9
42.3
37.6
33.5
29.8

Source: Forrester Research Online Retail Forecast, 2014 To 2019 (L atin America)

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Source: Fo rres te r Research, Inc. Unauthorized reproduction or distribution prohibited.

GLOBaL BRanDs aRe UnDeRRePResenTeD In aRGenTIna’s MaRKeT

Argentina’s online retail market is significantly smaller than Brazil’s: Its combined B2C and C2C market in 2014 is set to reach $3.4 billion and will grow to $8.3 billion in 2019, a CAGR of 19% (see Figure 2). The number of online buyers will increase from 7.8 million to 12.6 million. Argentina’s eCommerce market contains some unique dynamics, including the following:

Import restrictions challenge global brands. One area where Argentina currently differs from both Brazil and Mexico is the presence of global brands within the country. Import restrictions have been tightened over the past few years, which means that foreign imported products are extremely pricey, when they’re available at all. While the current restrictions may be relaxed after the presidential elections in 2015, they are unlikely to shift substantially before then. As a result, relatively few global monobrand or multibrand retailers operate eCommerce websites in Argentina today, despite the growing online retail opportunity.

Early-stage categories continue to dominate online. Argentina continues to show the hallmarks of a developing eCommerce market: Today a large percentage of sales are concentrated in early-stage categories like computer hardware and consumer electronics.

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Indeed, the few global brands that offer direct-to-consumer (DTC) websites in Argentina tend to be clustered in these early-stage categories, with some like Canon and Samsung offering localized sites for the country that are not currently transactional. And in Argentina, lower- income metropolitan online consumers have started to purchase online, although not yet to the same degree that they do in Brazil. 20

Traditional retailers play a strong role online. MercadoLivre continues to dominate Argentina’s online retail market. Traditional retailers in Argentina have also started to embrace the online channel: Leading retailers like CD Market, Falabella, Frávega, and Garbarino all operate eCommerce sites. Additionally, the handful of global retailers that operate in Argentina have often supplemented their retail stores with growing eCommerce offerings — examples include Wal-Mart and Staples, which, in addition to its consumer-facing offering, also boasts that it is “the largest B2B eCommerce company in South America.” 21

largest B2B eCommerce company in South America.” 2 1 Figure 2 Forecast: Online Retail Spending In

Figure 2 Forecast: Online Retail Spending In Argentina (B2C And C2C), 2013 To 2019

Total online retail spending (B2C and C2C) (US$ billions)

Total online buyers (millions)

Forecast 8.3 7. 0 5.9 4.9 3.7 4.1 3.4 2013 2014 2015 2016 2017 2018
Forecast
8.3
7. 0
5.9
4.9
3.7
4.1
3.4
2013 2014
2015
2016
2017
2018
2019
12.6
11.2
10.1
9.2
8.4
7. 8
7. 3

Source: Forrester Research Online Retail Forecast, 2014 To 2019 (L atin America)

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Source: Fo rres te r Research, Inc. Unauthorized reproduction or distribution prohibited.

MexICO Is shIFTInG TOwaRD OnLIne ReTaIL

Mexico’s online retail market remains the smallest of the three markets in this report. B2C and C2C online retail revenues of $2.8 billion in 2014 are set to grow to $6.7 billion by 2019, a CAGR of 19% (see Figure 3). The number of online buyers will increase from 10.1 million to 21.1 million, far surpassing the total number of online buyers in Argentina but with half the average spending per online buyer. In Mexico, we see that:

Today’s small market shows longer-term potential. Hit hard by a market contraction in 2009 resulting from the global economic recession, Mexico has since bounced back. The size of the Mexican economy has increased steadily since 2010, although growth rates have slowed in

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recent years. eCommerce, however, has continued its steady, upward climb throughout this time; it started from a small base but is now gaining momentum. Although Mexico received a lower score than Brazil and Argentina in Forrester’s eCommerce Readiness Index, the long-term growth potential of the market remains sizable. 22

Many early-stage eCommerce dynamics are evident. Mexico’s eCommerce market, like that of Argentina, shows many signs of a market in an early stage. Online travel purchases form a large percentage of online sales, for example, and channel conflict remains a challenge for many eCommerce leaders at omnichannel retailers. Cash — both on delivery and at convenience stores — is a popular payment method for online purchases. 23 These dynamics, however, tend to give way with time: Consumers start to buy across a wider variety of categories online; shoppers shift to online payment methods rather than cash; and retail organizations begin to prioritize and champion the online channel. In addition, today’s online retail sales, which remain concentrated in consumer electronics and computer hardware, will diversify. The online buying population will also expand to include more middle- and low-income shoppers.

Traditional retailers play a strong role in Mexico’s eCommerce market. Mexico’s market includes a combination of web-only and traditional retailers. In looking at the leading online retailers whose principal market is Mexico, many of the top players according to Internet Retailer’s Latin America Top 500 are traditional retailers — the list is topped by Liverpool. 24 Additionally, web-only players such as Nettbee.com have established themselves as key players in the eCommerce market. US players are also making the market a priority. In addition to Wal-Mart — which commands a significant market share in the country — other omnichannel retailers like Home Depot and Lowe’s launched eCommerce operations in Mexico in 2014, while Williams-Sonoma partnered with Liverpool to offer eCommerce in the country.

partnered with Liverpool to offer eCommerce in the country. Figure 3 Forecast: Online Retail Spending In

Figure 3 Forecast: Online Retail Spending In Mexico (B2C And C2C), 2013 To 2019

Total online retail spending (B2C and C2C) (US$ billions)

Total online buyers (millions)

Forecast 6.7 5.7 4.8 4.1 2.8 3.4 2.3 2013 2014 2015 2016 2017 2018 2019
Forecast
6.7
5.7
4.8
4.1
2.8
3.4
2.3
2013
2014
2015
2016
2017
2018
2019
21.1
18.3
15.8
13.7
11.7
10.1
8.8

Source: Forrester Research Online Retail Forecast, 2014 To 2019 (L atin America)

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Source: Fo rres te r Research, Inc. Unauthorized reproduction or distribution prohibited.

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latin america eCommerce Forecast, 2014 to 2019 9 Recommendations TaKe The TIMe TO FULLy UnDeRsTanD eCOMMeRCe

Recommendations

TaKe The TIMe TO FULLy UnDeRsTanD eCOMMeRCe MaTURITy LeVeLs

The online retail markets of Latin America differ greatly in terms of size, maturity, and growth potential. eBusiness professionals aiming to tap into the growing eCommerce markets in the region must:

Understand which eCommerce maturity phase each market is in. As in other parts of the world, the sizes of eCommerce markets across Latin America do not directly correlate with population size or GDP. While the countries highlighted in this forecast are arguably closer in their stages of eCommerce development than the markets of Asia Pacific, for example, there are still substantial differences. Savvy eBusiness leaders must take the time to understand which product categories have shifted online and whether the online buying population has expanded beyond the initial base of upper-middle-class and middle-class online shoppers. These market dynamics can help brands determine if the market is ripe for their products or if they need to plan for a much longer-term return on investment (ROI).

Work to establish a level of trust with consumers in earlier-stage markets. In earlier- stage eCommerce markets like Mexico, it will be important for brands to focus on building trust with online consumers. Forging partnerships with trusted names, for example, or highlighting product return policies can help alleviate some of these concerns; a focus on returns will be particularly critical in markets where returns are not a core part of the traditional retail culture. Additionally, eBusiness leaders will need to pay particular attention to fulfillment issues, as retailers in markets like Brazil have been challenged to meet consumer demands around fulfillment while also moving toward profitability.

Ensure they implement key eCommerce features in more mature markets. In the more mature markets of the region, such as Brazil, online retailers of all types must ensure they are implementing “must-have eCommerce features” to optimize the customer experience and differentiate their offerings from those of their competitors. 25 From site navigation best practices, such as streamlining access to discounted inventory, to exploring options such as guest checkout or alternative payment types, eBusiness leaders in these markets must ensure they are implementing the site features that will drive conversion. eCommerce companies that fail to do so will fall behind entrenched, increasingly sophisticated players that are evolving their offerings.

Focus on existing online retailer partnerships for brands as well as direct offerings. Finally, it will be increasingly critical for brands’ eBusiness teams to focus on more than just selling direct to consumers online in Latin America; eBusiness leaders at these organizations must also identify areas where they can promote their brands on their online retail partners’ websites as well as on marketplaces across the region. As eCommerce initiatives become more sophisticated across the region, there will be growing opportunities for brands to

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create more compelling offerings through partnerships. Indeed, for many brands today, DTC websites generate just a small percentage of total online revenues, with marketplaces and leading multibrand online retailers driving the lion’s share.

multibrand online retailers driving the lion’s share. sUPPLeMenTaL MaTeRIaL Methodology For Forrester’s Latin

sUPPLeMenTaL MaTeRIaL

Methodology

For Forrester’s Latin American Technographics Online Benchmark Survey, 2013, Forrester conducted an online survey fielded in May 2013 of 5,994 individuals ages 16 to 75 in top metropolitan areas/provinces of Argentina and top metropolitan areas/states of Brazil and Mexico. For results based on a randomly chosen sample of this size (N = 1,995 for Argentina; N = 2,001 for Brazil; N = 1,998 for Mexico), there is 95% confidence that the results have a statistical precision of plus or minus 2.2% of what they would be if the entire metropolitan population of individuals ages 16 and older had been surveyed in each country. Forrester weighted the data by age, gender, socioeconomic level (representing ABC1, C2, and C3 levels in Argentina; AB1, B2, and C1C2 levels in Brazil; and ABC+, C, and D+ levels in Mexico), and city. The survey sample size, when weighted, was 5,994. (Note: Weighted sample sizes can be different from the actual number of respondents to account for individuals generally underrepresented in survey data.)

As part of the forecast modeling, Forrester develops comprehensive historical and base-year market size estimates based on a variety of sources, including public financial documents, executive interviews, Forrester’s proprietary primary consumer and executive research, and analysis of the Internet traffic database.

All of Forrester’s forecasts are designed by a dedicated team of forecasting analysts who build the models, conduct extensive industry research, and manage the process of formally building consensus among Forrester’s analysts. Forecast analysts have backgrounds in investment banking, management consulting, and market research, where they developed extensive experience with industry and company forecasting.

For more information on Forrester’s ForecastView offering, including access to additional details and metrics not included in this report, please contact us at data@forrester.com.

enDnOTes

1 Source: Central Intelligence Agency (https://www.cia.gov/library/publications/the-world-factbook/

fields/2177.html).

2 To read more about global eCommerce adoption, see the March 28, 2014, “ The Evolution Of Global eCommerce Markets” report.

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3 Source: Francisco H. G. Ferreira, Julian Messina, Jamele Rigolini, Luis-Felipe López-Calva, Maria Ana Lugo, and Renos Vakis, “Economic Mobility and the Rise of the Latin American Middle Class,” The World Bank, 2013 (http://siteresources.worldbank.org/LACEXT/Resources/English_Report_midclass.pdf).

4 Source: Paulo Prada, “Special Report: Why Brazil’s new middle class is seething,” Reuters, July 3, 2013

(http://www.reuters.com/article/2013/07/03/us-brazil-middle-specialreport-idUSBRE9620DT20130703).

5 Source: The World Bank (http://data.worldbank.org/indicator/NY.GDP.PCAP.CD).

6 For more information, please check out the chart on page 213 with average spending on primary, secondary, and post-secondary non-tertiary education. Source: “Education at a Glance 2014: OECD Indicators,” OECD Publishing, 2014 (http://www.keepeek.com/Digital-Asset-Management/oecd/education/education-at-a-

glance-2014_eag-2014-en#page213).

7 For more information on hiring trends in Brazil, please see the December 3, 2014, “Retail eCommerce In Brazil: Team Headcount, Priorities And Challenges” report.

8 Marketers thought social networks would revolutionize their customer relationships — that’s why Twitter accounts and Facebook pages are, by far, brands’ most common social tactics. But if you’re like most marketing leaders, you’re still struggling to generate business value from social relationship marketing. Just 55% of marketers who maintain a Facebook page are satisfied with the results. Marketers who use Twitter say it doesn’t perform much better. To read more, please see the November 17, 2014, “Social Relationship Strategies That Work” report.

9 Source: Forrester’s Latin American Consumer Technographics Online Benchmark Survey, 2014; Forrester’s North American Consumer Technographics Online Benchmark Survey (Part 1), 2014.

10 In the US, the figure of those who agree with the statement was 36%; in Metro Brazil it was 56%, in Metro Mexico it was 48%, and in Metro Argentina it was 46%. Source: Forrester’s North American Consumer Technographics Online Benchmark Survey (Part 1), 2014; Forrester’s Latin American Consumer Technographics Online Benchmark Survey, 2014.

Source: Forrester’s Latin American Technographics Online Benchmark Survey, 2014 (Argentina, Brazil, Mexico); Forrester’s North American Consumer Technographics Online Benchmark Survey (Part 1), 2014.

11 Source: Forrester’s Latin American Technographics Online Benchmark Survey, Q3 2012 (Argentina, Brazil, Mexico).

12 Source: Forrester’s Latin American Consumer Technographics Brazil Survey, 2014.

13 Globalizing your eCommerce business isn’t just an option anymore — in many cases, it’s an imperative. However, winning global customers’ online spend often means adapting to local preferred payment methods. For merchants, the implications of establishing and accepting market-specific online payment types reach well beyond the checkout process into localized risk management, reconciliation, and complex regulatory and banking relationships. Merchants have the option to try to manage it all themselves, but

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eBusiness professionals are often looking to partner with payment service providers (PSPs) to help manage and streamline these complex payment processes. See the November 21, 2013, “Market Overview: Global Payment Service Providers 2013” report.

14 Source: Mercado de Cartões, “Brasileiro paga metade dos gastos com cartão,” ABECS, October 30, 2013 (http://www.abecs.org.br/noticia/brasileiro-paga-metade-dos-gastos-com-cartao).

15 Source: Forrester Research World Mobile And Smartphone Adoption Forecast, 2014 To 2019 (Global).

16 Source: Forrester Research Online Retail Forecast, 2014 To 2019 (Latin America).

17 World Bank GDP forecast in constant 2010 USD. Source: “Country and region specific forecasts and data,” The World Bank (http://www.worldbank.org/en/publication/global-economic-prospects/data).

18 In 2009, we found that even as consumer confidence hovered around all-time lows and most consumer companies struggled to even match the previous year’s revenue, shoppers were nonetheless turning to the Web and driving growth in the online channel. See the April 29, 2009, “Trends 2009: US Online Retail” report.

19 Source: Forrester’s Latin American Consumer Technographics Online Benchmark Survey, 2014.

20 The percentage of low-income online users who had bought and paid online was 31% in metro Brazil and 23% in metro Argentina. Source: Forrester’s Latin American Consumer Technographics Online Benchmark Survey, 2014.

21 Source: Staples (http://staples.newshq.businesswire.com/about/corporate_overview/

international#axzz2lbjhiSzj).

22 Forrester’s eCommerce Readiness Index assesses the eCommerce environment and the retail opportunity in different countries. For more information, read the refreshed data in the July 24, 2014 Forrester Readiness Index, eCommerce, 2014 spreadsheet and see the September 18, 2013, “Forrester Readiness Index: 2013 eCommerce Global Study” report.

23 Source: Forrester’s Latin American Consumer Technographics Online Benchmark Survey, 2014.

24 Internet Retailer Latin America Top 500 lists the top online retailers in Latin America by their principal market.

25 Companies often struggle with how to prioritize the countless issues that populate eCommerce to-do lists. This chapter of the retail eCommerce playbook is a prescriptive look at the industry standards and opportunities for differentiation in a retail eCommerce experience. We’ve divided the key opportunities into features and functionality to improve a site’s navigation, the product detail page, and the checkout experience. The report also discusses additional areas of opportunity such as fulfillment, customer service, and multichannel execution. See the October 6, 2014, “Must-Have eCommerce Features” report.

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Best practices for marketing and cross-channel strategy.

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Forrester Focuses On eBusiness & Channel Strategy Professionals

responsible for building a multichannel sales and service strategy,

you must optimize how people, processes, and technology adapt

across a rapidly evolving set of customer touchpoints. Forrester

helps you create forward-thinking strategies to justify decisions and

optimize your individual, team, and corporate performance.

« eRic cHanG, client persona representing eBusiness & Channel Strategy Professionals

Forrester Research (Nasdaq: FORR) is a global research and advisory firm serving professionals in 13 key roles across three distinct client segments. Our clients face progressively complex business and technology decisions every day. To help them understand, strategize, and act upon opportunities brought by change, Forrester provides proprietary research, consumer and business data, custom consulting, events and online communities, and peer-to-peer executive programs. We guide leaders in business technology, marketing and strategy, and the technology industry through independent fact-based insight, ensuring their business success today and tomorrow. 118923