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Growth 2000 2018 GROWTH 2000 2018 In partnership with INTERNETRETAILING GROWTH 2000 UK Boost Conversion - Internet Retailing.pdf 2 9/27/2018 12:44:49 PM Simple, Scalable Reliable Payments C M Y CM MY CY CMY K DISCOVER HOW YOU CAN #BOOSTCONVERSION WWW.INGENICO.CO.UK/GROW FROM THE EDITOR-IN-CHIEF Contents Introduction PARTNERS’ PERSPECTIVES .............................................................. 4 Hello and welcome to our first InternetRetailing Growth 2000 (G2K) report. Building STRATEGIC OVERVIEW ..................................................................... 6 on our four years of RetailX IRUK Top500 research that THE GROWTH 2000 IN FULL ............................................................ 8 have assessed the largest UK ecommerce and multichannel SEARCH ....................................................................................... retailers, it offers a unique 12 performance-based perspective on 2,000 retailers that, while MOBILE ...................................................................................... 14 lacking the footprint of larger companies, are still a huge and vibrant part of the overall UK retail market. DELIVERY .................................................................................... 16 It’s a diverse list and one that encompasses regional retailers, direct-selling brands, specialists and foreign retailers selling into the UK. Yet each shares the same SOCIAL ....................................................................................... 18 core challenges, which are reflected in how we present our research. WHAT CONSTITUTES A RETAILER? ............................................... 20 They have the need to be found in Search; the need to be with Mobile customers who are increasingly reliant METHODOLOGY ............................................................................ on smartphones; the need to provide efficient and 21 flexible Delivery options; and the need to be Social – to help customers engage in conversations with retailers CONCLUSION ................................................................................ 22 as well as to share what they’ve learned with others. As ever, many people have contributed to this report, but I would especially like to thank Sangeetha Narasimhan, EMEA marketing director of Ingenico, whose insights into the dynamic nature of retailers outside the IRUK Top500 were a key initial inspiration in making us look at RetailX research from a new angle. I think this initial report is revealing. While G2K retailers by definition lack the resources of larger retailers, the research highlights many examples of companies taking innovative approaches. In the months ahead, at InternetRetailing.net, and in our reports and white papers, we will highlight some of these companies and interrogate further what it is they’re doing well. For now, though, we are happy to present our initial results, which we believe offer a unique insight into British retail beyond the very biggest high street names. IAN JINDAL, EDITOR-IN-CHIEF INTERNETRETAILING.NET/G2K ◉ 3 PARTNER PERSPECTIVE Payments are the key to international growth Ecommerce offers growing and specialist retailers the chance to expand, but that means helping customers to pay in ways that suit them, says Marc Birkner, Managing Director, Small and Medium Businesses, Ingenico Group Every merchant has one common on apps. In a worldwide first, Ingenico has launched a goal: to grow your business. Whether payment solution to convert shoppers within the chatbot you’re a global brand, a niche SMB environment, which prevents the huge abandonment seen or an entrepreneur, ecommerce has when shoppers are taken to an external web browser. opened up the world. At Ingenico, international ecommerce is in our New shopping behaviours Exceptional eCommerce growth has blood. We enable you to grow your led to demands on online retail. Consumers want the business, whether it’s by optimising widest assortment at the best price, hence the incredible conversion, reducing administration growth behind online marketplaces such as Amazon and or optimising cash flow. Your gateway to all of this is Deliveroo. A strong marketplace payment setup requires technology: enabling you to get the highest acceptance, compliant and simple buyer/seller management, such outsmart fraudsters and utilise new sales channels. as commissions and pay-out times, not just for the Each market in the world has different preferences in marketplace, but for all merchants and their customers. terms of product, delivery and payment. But they have Meanwhile, subscription payments have shaped the one thing in common: success depends on customer behaviour of consumers and powered the growth of brands experience. This needs a commitment to creating the such as Birchbox and Abel & Cole. Managing recurring most customer-friendly payment experiences in the world. payments via tokens can make it easier for consumers to We secure the best conversion in the market and help set up subscriptions, and easier for merchants to manage. you optimise payment-related costs, meaning happier As technology evolves, payments enable business customers and a healthier bottom line. growth in more creative ways. Think beyond expanding into new geographies or optimising your business: payment technologies can unlock new growth potential by tapping SUPPORTING ENTREPRENEURS ON EVERY ADVENTURE into new sales channels and revenue models that can Payments are the moment of truth for every transaction. Like catapult any business to the global stage. entrepreneurs, no single customer is the same, especially when you sell to international markets. To understand what the consumer wants, you need to understand trends, ABOUT INGENICO cultures and technological infrastructure in-store and online. We provide merchants Here’s what will impact your business in the near future: with a comprehensive and innovative range of services mCommerce Big brands were quick to jump on mCommerce, and solutions that eliminate but we’re helping growing businesses increasingly make the payment complexity and make purchasing quick, breakthrough in mobile, providing convenience and security. seamless and secure for consumers, whatever the Global mCommerce is bigger than desktop conversion (+50%) sales channel or payment method. Our ambition is to in Asia and approximately 30% higher than desktop in Europe. facilitate merchants’ transition to multi-channel sales Reaching these customers requires responsive mobile through our comprehensive range of smart terminals, designs, in-app payments and frictionless repeat purchases. payment services and mobile solutions, covering in- store, online and mobile channels on a global scale. Conversational Commerce Millennials are digital natives and Our innovative and reliable solutions let merchants 42% of them prefer mobile. Upcoming generations will secure the sale as soon as the consumer has made increasingly be mobile-first and expect technology to fit into their purchase decision, and enhance consumer their life and simplify it. These advancements are making experience. Our customers benefit from the depth and instant gratification the norm rather than the exception. breadth of our large in-store and online acceptance This has led to the rising popularity of chatbots for network. www.ingenico.com advertising, customer support, product advice and buying, 4 ◉ INTERNETRETAILING.NET/G2K PARTNER PERSPECTIVE Reaching and engaging the unexpected perfect customer In the vibrant, varied and competitive environment of UK retailing, delivering valuable experiences to new customers who sit outside the norm is essential to growth, writes Abi Jacks, Director of UK Marketing, Rakuten Marketing DISCOVERING THE UNEXPECTED CONSUMER-FOCUSED MARKETING AT ITS BEST The existence of this InternetRetailing Utilising the wealth of consumer data that is available today Growth 2000 report demonstrates not opens huge opportunities for retailers but there is a delicate only the impressive diversity of the balance to be struck. The post-GDPR environment cannot be industry but also the competitiveness ignored – consumers are more aware than ever of the power of the landscape. Growth for these their data holds, and also warier than ever. UK attitudes to retailers is dependent on standing out personalisation illustrate this point perfectly – while 17.2m from the crowd. One of the best ways UK consumers are more likely to engage with adverts tailored for retailers to differentiate themselves to them, 55% of British adults say personalised ads ‘creep is to engage an audience outside the norm. It’s no secret that them out’. This indicates the importance of getting every acquiring new valuable customers is essential to success. And step of programmatic advertising right, from gathering raw in such a competitive environment, moving beyond antiquated signals, distilling and running them through data-mining and profiles, segments, demographics and assumptions is vital. audience-modelling technology, through to finally activating This could mean looking to other markets across the globe, them in advertising systems. using performance marketing to test the waters and discover Many of the areas the InternetRetailing Growth 2000 a new target customer profile. Or it could mean changing the report focuses on – the importance of an effective mobile way you understand and engage audiences here in the UK. experience, of building a brand following through social Ultimately, we’re talking about taking customer
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