Jun 01

E-commerce highlights from Mary Meeker’s Internet Trends report

As usual, this year’s Mary Meeker report from Kleiner Perkins takes a far-reaching look at internet trends and statistics. A large chunk of the nearly 300-page report is devoted to e-commerce, offering insight into a variety of online retail trends, from growth and product search to online retail advertising and the role of social platforms driving online sales.

According to Mary Meeker’s 2018 Internet Trends report, e-commerce is showing no signs of slowing down. Online sales are up and growing faster than in the previous year. More people are using their phones to shop online. Amazon is taking a wider slice of the e-commerce pie (and product search), and social platforms are driving more product discoveries and purchases.

Here is a breakdown of the report’s e-commerce highlights, along with the stats:

E-commerce continues to grow

E-commerce sales reached upward of $450 billion, a 16 percent year-over-year lift. The e-commerce growth rate is up compared to the 14 percent year-over-year increase reported in 2017.

As e-commerce grows, it is taking a bigger bite of retail sales overall. According to the report, e-commerce represented a 13 percent share of all retail spend (both online and physical retail sales) in 2017. As e-commerce continues to grow, physical retail sales growth is trending toward deceleration, with less than 3 percent year-over-year growth.

Mobile shopping is also on the rise, with mobile shopping app sessions growing 54 percent year over year. In fact, mobile shopping represented the fastest-growing app session, ahead of music/media/entertainment (up 43 percent year over year), business/finance (up 33 percent year over year), utilities/productivity (up 20 percent year over year) and news/magazines (also up 20 percent year over year).

E-commerce ad revenue: Google, Amazon and Facebook

The report also included e-commerce-related advertising revenue trends for Google, Amazon and Facebook. Google saw a three-time increase in engagement for top mobile PLAs. Meanwhile, Amazon ad revenue reached $4 billion — a 42 percent year-over-year increase in ad revenue. And Facebook’s small business Pages were up 23 percent year over year. Facebook also saw e-commerce click-through rates (CTRs) at 3 percent during Q1 2018, up from 1 percent CTRs during the same period two years ago.

Using data pulled from Salesforce’s Digital Advertising 2020 report, customer lifetime value (CLV) ranked as the most important ad spending optimization metric — ahead of impressions and web traffic, brand recognition and lift, closed-won business, last-click attribution and multitouch attribution.

Amazon’s e-commerce share

In 2013, the Mary Meeker report showed Amazon owned $52 billion of e-commerce gross merchandise value (GMV), representing a 20 percent share. In 2017, that share grew to 28 percent, with Amazon owning $129 billion of GMV.

Not only is Amazon’s e-commerce share growing, the e-commerce site is the first place most people go to search for a product. Pulling data from a Survata survey of 2,000 US consumers, 49 percent of product searches start on Amazon, with only 36 percent starting on search engines (15 percent of product searches were attributed to “other”).

Social media’s role in e-commerce

Social platforms are gaining traction in product discovery and online purchasing. Based on data from Curalate’s 2017 consumer survey, 55 percent of the people polled bought a product online after discovering it on social (44 percent bought the product online later, and 11 percent bought it immediately).

When looking at which social platforms drove the largest share of product discovery, Facebook led, with 78 percent of respondents discovering products on the platform. Instagram and Pinterest saw a nearly even split, with 59 percent of respondents reporting they had discovered products on the image-centric platforms, followed by Twitter at 34 percent and Snapchat at 22 percent.


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May 31

How To Create An Algorithm-Proof Online Marketing Strategy

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Todd Giannattasio

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May 30

Three Columbia Businesses with Worldwide Reach

In the mid-1990s, when Tony Marrero graduated with a business degree from Texas Christian University, the internet was more of a curiosity than anything else. Not many people had access to it. Fewer still had any notion as to what it would become.

“The whole idea of the internet was developing in people’s minds as a business concept,” Marrero says. “It was very strange, and ideas of what it would become were wildly wrong, for the most part. But it was very interesting.”

Marrero combined that interest with his degree to start an internet marketing firm in Texas. Nearly a decade later, he moved to Columbia and combined his knack for e-commerce with a lifelong love of soccer to start SoccerPro.com.

Now, from an unassuming building near Cosmopolitan Park, he sells soccer apparel and supplies to people all over the country. He started SoccerPro in 2004, when consumers were still wary of doing business online.

But he knew what was coming. “Timing is everything,” Marrero says.

Here’s a look at three Columbia-based businesses who rely on e-commerce for their livelihoods: how they got into the space, how the internet has affected their businesses, and what’s coming next.

The Rebel Spirit

Jacob Halls came back from Belgium with a briefcase full of European alcohol. When customs asked him if he had anything to declare, he answered honestly. That was a mistake.

“They said, ‘Where’s your importer license?’ I said, ‘What are you talking about?’” Halls says. “So it all got taken away. But it got me to thinking, How do I do this?”

Soon, he got his importer’s license. One day, a distributor saw Halls showing off his stash at the bar Halls worked at and told him that, as the legal importer, he could technically sell these products to bars in the US. Not long after that, Halls was contacting European distributors to see if they’d be interested in his services selling their products in the states.

A business was born.

“I came to this out of pure luck, chance, entrepreneurial spirit, rebel spirit, ‘don’t tell me I can’t do it’ type of thing,” Halls says. “I was just a dumb punk teenager who was like, ‘You can’t tell me I can’t bring this in.’”

Halls started Convergence Consulting in 2014. He’s part of a 10-member team that offers a wide array of services to bars, breweries, and wineries at all stages of development.

Need help marketing your new brewery? Halls and his team can do it. Have to file licensing paperwork with state or federal agencies and just don’t have the time or know-how?

Convergence Consulting’s got your back.

“If we can’t do it, we help find you someone who can,” Halls says. “After we get asked about doing something enough times, I find someone who can and get them on board. Whatever the scale [clients are] at, we can handle it. It’s kind of cool.”

Convergence Consulting Group does about 60 percent of its business remotely, by Halls’ estimation, but it varies greatly from client to client. Some need staff members on the ground for weeks to help launch. Others Halls never meets. Halls says Convergence Consulting has done business with clients in 47 different states and three countries. Firms that offer similar services tend to cluster on the coasts.

“I usually don’t try to dip my toes into their pools because, if they’re happy, I’ll take between the Rockies and the Appalachians,” Halls says. “No problem.”

Word of mouth drives a good deal of business to Halls’ firm, and presentations at trade shows don’t hurt, either. Halls is always sure to maintain a presence at the annual South East Craft Beer Fest in Columbia, as well as the Great American Beer Festival in Denver.

He’s come a long way from that failed trip through customs.

“It’s basically really been following a passion to get here,” Halls says. “I like the fact that we’ve grown organically to where we never promised anything we can’t do. We seem like we can be from right next door. [Customers] always think we’re quasi-local. That’s part of the beauty of being on the internet. We can respond the same day, quickly.”

Designing a Business Plan

When he was an upperclassman at Hickman High School, Pat Grathwohl discovered how to turn his artistic talents into a career. He took mechanical drafting as a junior, architectural design as a senior, and, by the late 1960s, he was completing drawings for builders in town.

He started his own business, Total Design Incorporated, in 1989. By the early 2000s, he saw other designers moving their floor plans online.

He had a whole portfolio of plans to work with. He figured he’d give it a shot.

“We threw it out there, and I still have it,” Grathwohl says.

TotalPlans.com is home to nearly 400 of Grathwohl’s floor plans for houses that range between 1,100 and 5,000 square feet. Most of his business comes from the Midwest, but he’s also sold plans to builders in Brazil and Europe.

Other wholesale design sites may have 20,000 to 40,000 plans available for perusal. Grathwohl says that can be overwhelming to consumers.

“You can sit there for weeks and weeks going through all those plans and not find what you want. I try to give them that personal touch, where it doesn’t really come into play with the larger site plans,” Grathwohl says. “I do say on my site that if you can’t find anything on my website that works, I’d love to talk about designing a whole new plan for you.”

Those in-person meetings don’t happen very often. He will get the occasional customer from Columbia that likes a plan online but wants to talk through some changes in person.

He’s more than willing to alter his plans to the customer’s taste. That’s another thing Grathwohl says can set his business apart: He’s always looking to add new plans to the database.

“To take the old plans and modify them — like add a new front elevation but still use the same floor plan — is somewhat easy to do, other than putting the new elevation on the site, which takes time,” Grathwohl says. “It’s a full-time job just to keep [the site] updated and modified.”

Grathwohl is also in the process of converting his blueprints to photorealistic representations of the houses they will become using 3D computer modeling software.
Nearly 50 years in, he still knows that adaptation is a necessary part of his business’s success.

A Different Kind of Pro

Marrero played soccer his whole life — he was a varsity athlete at TCU — but decided to hang up his cleats after graduation. Although, if he’s being honest with himself, the decision was really made for him.

“That wasn’t going to be for me, anyway,” he says, with a laugh. “I loved the game. I think I’m good at it, but I’m not a pro athlete.”

Marrero and a business partner started SoccerPro in 2004 as a brick-and-mortar store. While the soccer community in Columbia was strong, Marrero saw more opportunities in other areas of the country.

“The floorspace that was used for the walk-in of the brick-and-mortar store was becoming a very expensive warehouse for our online inventory,” Marrero says.

SoccerPro converted to a dot-com — it does 99 percent of its business online, Marrero says — and was acquired by St. Louis-based Soccer Master in 2009. It does healthy business in areas such as California, Texas, Florida, Chicago, and the Northeast.

People can still come to the Cosmo Park location for their soccer needs. They walk in, sit down at a computer station, pick out what they want, and someone brings it from the warehouse to them.

Marrero’s company has carved out a niche with more specialized equipment than the type that would usually go to a big-name sporting goods store. SoccerPro also deals in apparel such as replica national team and club team jerseys.

The new challenge, Marrero says, is competing with manufacturers such as Nike and Adidas, who feel they can market and sell their products to consumers directly.

It’s a double-edged sword. Marrero’s familiarity with e-commerce helped him launch a successful business, but the ease with which the big brands can now connect with customers through online sales is also putting retailers like SoccerPro out of business.

“We’ve had to make sure we have a competitive advantage, a unique voice in our business,” Marrero said. “If we did not have a different way of presenting these products, there’s a really good chance we wouldn’t be around right now. The brands ask their partners to be unique and help amplify their message to a different audience. By adding that value, we’re surviving.

“You’ve got to be on your toes. It makes it interesting, challenging, and frustrating all at the same time.”

Permanent link to this article: http://homebiz2bizreview.net/internet-marketing/three-columbia-businesses-with-worldwide-reach/

May 29

Global Robotic Lawn Mower Market Outlook and Forecast 2018-2023: e-Commerce Business Platforms will …

Dublin, May 29, 2018 (GLOBE NEWSWIRE) — The “Robotic Lawn Mower Market – Global Outlook and Forecast 2018-2023” report has been added to ResearchAndMarkets.com’s offering.

The global robotic lawn mower market is estimated to reach values of around $3 billion 2023, growing at a CAGR of more than 15% during 2017-2023.

The increasing focus on development in Western European countries such as Germany and France and Nordic countries such as Sweden will augment the growth of the market. The increasing focus on use grounds maintenance services extensively and rising number of lifestyle communities and public parks will drive the demand for these lawn mowers in the global market.

The proliferation of the Internet and its power to influence end-users purchasing behavior will have a positive impact on the growth of the global robotic lawn mower market. The extensive use of online platforms and digital channels to research on pricing and other related information will help vendors reach a wide group of target audiences in the global market. The marketers and retailers are adopting omnichannel retailing to facilitate seamless shopping experience for end-users in the market.

The increasing penetration of wireless broadband internet, adoption of smartphones and tablets, and rising number of social media users are some of the major factors encouraging retailers to use the internet for expanding their distribution network in the global market. The emergence of digital consumerism and the adoption of e-commerce business platforms will revolutionize the global market. Amazon, RobotShop, and eBay are the leading online retail website for lawn mowers in the global market.

The global robotic lawn mower market is moderately concentrated with the presence of few small and large consumers. The competition in the market is very intense, and the major global vendors are based and headquartered in the European region. The top companies are launching product lines of garden products in both the corded and cordless battery-operated equipment to sustain the competition in the market.

The players are focusing on reducing weight, increasing the effectiveness, and speed of the equipment to attract more consumers in the global market. The introduction of many innovative and cutting-edge lawn mowers to gain a larger robotic lawn mower market share. The leading vendors in the global market will compete in the terms of services, product availability, price, technology, quality, efficiency, and product effectiveness during the forecast period.

The major vendors in the global market are:

  • Husqvarna
  • MTD Products
  • Robert Bosch
  • STIGA (Global Garden Products)
  • Zucchetti Centro Sistemi (ZCS)

Key Topics Covered:

1 Research Methodology

2 Research Objectives

3 Research Process

4 Report Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of Study
4.3.1 Market Segmentation by Lawn Area Type
4.3.2 Market Segmentation by End-user Type
4.3.3 Market Segmentation by Geography

5 Report Assumptions Caveats
5.1 Key Caveats
5.2 Inclusions
5.3 Exclusions
5.4 Currency Conversion
5.5 Market Derivation

6 Market at a Glance
7 Introduction
7.1 Overview
7.2 Working System
7.3 Advantages
7.4 Macro-Economic Factors Enabling Market Growth
7.4.1 Economic Development
7.4.2 Per Capita GDP in Developing Markets
7.4.3 Dual-income Households in Developed Markets
7.5 Dynamics of Landscaping Services Industry
7.5.1 Overview

8 Market Dynamics
8.1 Market Growth Enablers
8.1.1 Resolution of Safety Hazards of Traditional Lawn Mowers
8.1.2 Decreased Time for Household Activities and Growth in Aging Population
8.1.3 Healthy Growth of Landscaping Services Industry
8.1.4 Growing Focus on Marketing Efforts and Promotional Activities by Vendors
8.1.5 YOY Impact of Market Growth Enablers
8.1.6 YOY Impact of Market Growth Enablers on Regions
8.2 Market Growth Restraints
8.2.1 Increased Competition from Chinese Vendors
8.2.2 Volatility in Raw Material Prices
8.2.3 Rise of Drought-tolerant Landscaping and High Adoption of Artificial Grass
8.2.4 YOY Impact of Market Growth Restraints
8.2.5 YOY Impact of Market Growth Restraints on Regions
8.3 Market Opportunities Trends
8.3.1 Shifting Consumer Focus toward Smart Technology
8.3.2 Influence of Internet in Shaping End-users’ Purchasing Behavior
8.3.3 Increased Adoption of Green Spaces and Green Roofs
8.3.4 YOY Impact of Market Opportunities Trends
8.3.5 YOY Impact of Market Opportunities Trends on Regions

9 Value Chain Analysis
9.1 Value Chain overview
9.2 Value Chain Analysis
9.2.1 Raw Material and Component Suppliers
9.2.2 Manufacturers
9.2.3 Distributors/Dealers/Retailers
9.2.4 End-user

10 Market Landscape
10.1 Global Power Garden Equipment market
10.1.1 Market Overview
10.1.2 Market Size Forecast
10.2 Global Power Lawn Mower Market
10.2.1 Market Size Forecast
10.3 Global Robotic Lawn Mower Market
10.3.1 Historical Data 2013-2016
10.3.2 Market Size Forecast 2017-2023
10.4 Porter’s Five Forces Analysis
10.4.1 Threat of New Entrants
10.4.2 Bargaining Power of Suppliers
10.4.3 Bargaining Power of Buyers
10.4.4 Threat of Substitutes
10.4.5 Competitive Rivalry

11 Market by Lawn Size
11.1 Market Overview
11.2 Small-sized Segment
11.2.1 Market Size Forecast
11.3 Medium-sized Segment
11.3.1 Market Size Forecast
11.4 Large-sized Segment
11.4.1 Market Size Forecast

12 Market by End-Users
12.1 Market Overview
12.2 Market Size Forecast
12.2.1 Residential End-users
12.2.2 Professional Landscaping Services
12.2.3 Sports Fields, Golf Courses, and Others

13 Market by Distribution Channel
13.1 Market Overview
13.2 Manufacture, Production, and Distribution
13.3 Distribution through Retail Stores
13.4 Distribution through Online Websites

14 Market by Geographical Segmentation
14.1 Market Overview

15 Europe: Robotic Lawn Mower Market

16 North America: Robotic Lawn Mower Market

17 APAC: Robotic Lawn Mower Market

18 ROW: Robotic Lawn Mower Market

19 Competitive Landscape
19.1 Market Overview
19.2 Market Structure and Mapping of Competition
19.2.1 Herfindahl-Hirschman Index
19.3 Market Share Analysis
19.3.1 Husqvarna
19.3.2 MTD Products
19.3.3 ZCS (Zucchetti Centro Sistemi)
19.3.4 STIGA (Global Garden Products)
19.3.5 Robert Bosch

20 Key Company Profiles
20.1 Husqvarna
20.2 MTD Products
20.3 Robert Bosch
20.4 STIGA
20.5 Zucchetti Centro Sistemi (ZCS)

21 Other Prominent Vendors
21.1 AL-KO
21.2 Yamabiko Europe (Belrobotics)
21.3 Deere Co.
21.4 E.ZICOM
21.5 Hangzhou Favor Robot Technology
21.6 Hitachi
21.7 Honda
21.8 Linea Tielle
21.9 LG
21.10 Milagrow HumanTech
21.11 Mamibot EU
21.12 SUMEC (Yard force)
21.13 Positec Tool (WORX)
21.14 Robin Technologies
21.15 STIHL
21.16 The Kobi Company
21.17 Turflynx
21.18 Zhejiang Tianchen Intelligence Technology

22 Report Summary
22.1 Key Takeaways
22.2 Strategic Recommendation
22.3 Qualitative Summary: Global Robotic Lawn mower Market
22.4 Quantitative Summary: Global Robotic Lawn mower Market

For more information about this report visit https://www.researchandmarkets.com/research/3xr6mk/global_robotic?w=12

CONTACT: ResearchAndMarkets.com
Laura Wood, Senior Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Related Topics: Gardening Supplies and Equipment, Robotics

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May 28

COMMENTARY: Supporting a free and open internet

Whenever Laurel Beager posts new content, you’ll get an email delivered to your inbox with a link.

Email notifications are only sent once a day, and only if there are new matching items.

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May 27

Amazon leads $12M investment in India-based digital insurance startup Acko

Amazon appears to be restarting its funding efforts in India after Acko, the digital insurance startup in India, confirmed that the U.S. retail giant led a new round of funding for its business.

Amazon — which has been linked with an Acko investment since the start of this year — backed lending startup Capital Float last month, and now it has led a $12 million funding round for Acko alongside Ashish Dhawan, the founder of PE firm ChrysCapital, and existing backer Catamaran Ventures. The deal takes Acko to $42 million raised to date.

Acko was founded in late 2016 by Varun Dua, one of the co-founders of insurance comparison site Coverfox. With Acko, Dua is taking a deeper step into insurance with a digital-only business aimed at disrupting the $10 billion industry in India by leveraging the growth of internet access in India to democratize coverage and develop more relevant products.

Significant funding and big name partners

The company got off to a good start when investors pumped $30 million into it last year, before it had even acquired a license to offer insurance. (That came in September.) Fast-forward 12 months to today, and Acko has covered the traditional space of automobile insurance policies, and a newer category ‘internet economy’ since January. It’s that latter focus that appeals to Amazon via this deal, which Dua told TechCrunch came about after Acko began talking to Amazon as a potential insurance partner.

Acko has gone after big name partnerships in its pursuit of internet economy deals, which Dua said primarily consists of e-commerce, ride-hailing and travel site-focused products. In April, Acko launched passenger insurance for Uber-rival Ola’s ride-hailing service, which covers riders for obvious items like minor accidents, and eventualities like missing a flight due to traffic delays. The insurance claim system is built into the Ola app to simplify the process for users.

“We know from user behavior experience that passengers tend to contact Ola when they have issues, so we wanted to set up a pretty seamless claims process that’s reasonable integrated,” Dua told TechCrunch in an interview, adding that Acko has covered more than 10 million Ola trips so far.

The company is likely to work with Amazon around e-commerce coverage — the first focus of which will be around gadget protection — although nothing is set in stone yet.

“The idea is to find some way to collaborate in the future,” Dua explained. “We’re a new age insurance company and [Amazon] believes it can create value. They see that bundling financial service or something in the lending space [may] happen [in the future] given the data and numbers of users they sit on.”

Acko already offers special deals for Amazon customers

Despite a fierce e-commerce battle in India, Acko isn’t restricted by this deal with Amazon.

Dua said Amazon “completely wants [Acko] to grow independently and it hasn’t laid down any conditions” that might prevent it from working with rivals like Flipkart. Indian media reported that Acko had been in investment talks with Flipkart — which Amazon’s U.S. foe Walmart has agreed to buy a majority stake in — but Dua declined to comment on that rumor.

India has emerged as a key market for Amazon, yet it has backed fewer than half a dozen startups, including home services company HouseJoyfinancial comparison service BankBazaar and gift card startup QwikCilver, and acquired just one: payment platform Emvantage in 2016. However, with Capital Float in April and Acko in May, Amazon may be back with renewed vigor.

Dua confirmed that this newest funding round “wasn’t an extremely planned capital raise” but adding Amazon gives the business a further validation.

He said that Acko is aiming to raise a significant funding round next year which would be used to give it a war chest — capital is an important requisite for an insurance provider — and execute on its strategy for the following three years or so. The company has held ongoing talks with undisclosed global insurance firms, Dua said, and that may manifest in a participation in the planned round.

Working with regulators

Part of the current focus is bringing a new online approach to traditional insurance, whilst also figuring out new types of cover that apply to today’s digital age. That’s necessitated a relationship with Indian regulators, and an avoidance of traditional startup practices like the hackneyed (but often true) ‘move fast and break things’ approach to product development and user growth.

“A lot of the thing we want to attempt are new and the regulation isn’t always there,” Dua told TechCrunch. “We have to ensure regulators are on board rather than jumping the gun and facing any backlash later.”

Dua added that typically regulators require two months to sign off on new products — like the Ola micro-insurance for passengers — but that communication lines remain ongoing, and often further clarification is required on Acko’s part.

The company’s Bombay office directs the regulator dialogue and related areas such as compliance, finance and auditing. Acko’s other office in Bangalore houses product development, marketing and tech teams. The startup’s total headcount has grown to around 100, Dua said, with a tech team of around 40 whose priorities include developing claims systems, pricing models and integrating with partners such as Ola and potentially Amazon and Flipkart further down the line.

Acko is an ambitious digital play to disrupt India’s $10B insurance industry

Acko was one of the first insurers to go all in on digital — certainly at its scale — and Dua said over the past year he has heard of new challengers lining up funding, whilst traditional insurers are taking aim at online by breaking out new business units. In his eyes, Acko has a head start on other digital-only outfits — in terms of timing and funding — while he believes traditional players typical struggle with tech talent and have their eyes on legacy businesses which bring in the bulk of their revenue.

Still, he sees these moves as further validations of Acko’s goal of fully digital insurance.

“I genuinely think it’s possible to create a billion-dollar income in five to six years,” he said. “There have been three insurance model generations world: the global retail commercial risk like AIG, progressives such as DirectLine and now there’s a third-way with the likes of [$3 billion-valued U.S. startup] Oscar, [SoftBank-backed] Lemonade and [China’s] Zhong An.

“When we look at India as a market, generation two and three are both missing — there’s a lot of innovation potential in terms of pricing, distribution, claims efficiency and more.”

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May 26

A ‘whole new playing field’ for B2B

With its plan to acquire Magento Commerce for $1.68 billion, digital media and marketing products company Adobe Systems Inc. is moving to reach a wider customer base of mid-size as well as larger companies with a fuller suite of technology that covers e-commerce. But if the deal closes as expected sometime in the third quarter, having a broader technology and services platform won’t by itself be enough win over more customers of all sizes, industry analysts say.

The key for success for Adobe and Magento is leveraging each company’s products and services—Adobe’s digital media and Magento’s e-commerce software—expertise into a unique technology suite, industry experts say.

Adobe, which focuses on large corporate clients, will gain entry into the mid-size company market that is Magento’s core customer base. And if it can successfully help Magento grow its technology and services, it will also expand its reach among smaller companies as well as large enterprises, analysts say.

“Magento gives Adobe entry into the mid-market and credibility in B2B e-commerce, and Adobe will bring Magento up-market to handle larger companies,” says Ray Wang, CEO of technology research and advisory firm Constellation Research.

“Adobe really needed to get into the commerce game to provide a full solution and compete with SAP, Oracle, IBM, and Salesforce,” adds Brian Beck, senior vice president, e-commerce and omnichannel, at web design and development firm Guidance. “Magento makes a great fit to complete the package, particularly given Magento’s recent and significant investments in B2B e-commerce capabilities. Adobe will continue to pull Magento up market.”

The most immediate impact of the Adobe-Magento deal, however, would likely be in the mid-sized company market. That e-commerce technology market has long been divided among a diverse group of niche vendors. But that gives Adobe and Magento an opportunity to step in with a more complete suite of e-commerce and marketing technology and services. Adobe will be able to introduce Magento’s e-commerce software to its broad channel of companies already familiar with its digital media and marketing products.

“That mid-market space has traditionally been quite fragmented, and acquiring customers has been like herding cats,” says Andy Hoar, CEO of consulting firm Paradigm B2B. “But with Adobe’s mid-market sales channel and Magento’s e-commerce technology, there will be a viable large-scale vendor in the mid-market B2B space. This creates a whole new playing field.”

Adobe and Magento complement each other well in the mid-market, he adds. While Magento provides Adobe an e-commerce solution, Adobe provides a strong network of  mid-market technology partners and sales reps that Magento has lacked, Hoar says.

The two companies will also better positioned to compete with technology providers that target smaller companies. With Adobe’s backing, Hoar says, Magento will be in a strong position to  better compete with other vendors down-market “in a meaningful and compelling way.”

Going forward, Adobe will also need to help Magento further develop cloud technology, Hoar says. Magento is still transitioning its software to the cloud, to let customers subscribe to it as needed under a software-as-a-service, or SaaS model, without having to run it on their own web servers. “Adobe and Magento will need to figure out how to fully ‘subscription-ize’ a Magento-led e-commerce solution,” he says.

In addition, Adobe needs to figure out how to expand on the Magento platform if it wants to enter the e-commerce technology market for the large enterprises that make up its core market. “Historically, much of Magento’s appeal has been to small businesses,” Hoar says, adding: “If Adobe wants to win in the large enterprise commerce space, it will need to ‘road-map’ and deliver that.”

Prior to the pending deal, for which Adobe says it will pay cash, the two companies already had customer synergy. Magento customers include manufacturers Canon Inc., Helly Hansen, Curt Group and Gabor Shoes. Adobe and Magento share joint customers including The Coca-Cola Co., Warner Music Group, Nestlé and Cathay Pacific, Adobe says.

Now the challenge will be to price turn-key cloud-based B2B marketing and e-commerce services in ways and packages that appeal to a wide array of businesses, Hoar says. Together one plus one could equal three if they execute well by marrying their products over time, integrating their partner networks.”

Magento offers a diverse suite of e-commerce tools and includes services such as pre-built extensions, including for payment, shipping, tax and logistics. The Magento platform is supported by a community of more than 300,000 developers. That diversity, coupled with Adobe’s digital media products and marketing services, gives the combined organization a better way to sell to specific e-commerce market segments, Beck says.

Magento has made some notable changes recently to its technology platform. At its annual Imagine conference last month, it launched technology features designed for B2B as well as retail e-commerce sites. Of particular interest to many Imagine attendees was Magento’s launch of its Progressive Web Applications Studio, a set of tools for building online stores with app-like interactivity.

While making the PWA Studio available now to site developers, Magento says it will also build it into Magento Commerce version 2.3, which will launch in late summer 2018 as an upgrade to the current version 2.2. Version 2.2 is the first version of Magento Commerce—formerly known as Magento Enterprise for larger companies—to include built-in features for B2B e-commerce, such as the ability to set multiple purchasing authorizations according to the roles of individual buyers.

The Adobe-Magento deal also has ramifications for other technology vendors, issuing in a new level of competition and sparking more consolidation, analysts say. “This will cause more consolidation in the e-commerce technology market,” Wang says.

Paul Demery contributed to this report.

Sign up for a complimentary subscription to B2BecNews, a newsletter published four times a week with coverage of technology and business trends in the growing B2B e-commerce industry. B2BecNews is owned by Vertical Web Media LLC, which also publishes DigitalCommerce360.com, Internet Retailer and Internet Health Management. Follow Mark Brohan on Twitter @markbrohan.

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Permanent link to this article: http://homebiz2bizreview.net/internet-marketing/a-whole-new-playing-field-for-b2b/

May 25

How Adobe and Magento can attract more customers

With its plan to acquire Magento Commerce for $1.68 billion, digital media and marketing products company Adobe Systems Inc. is moving to reach a wider customer base of mid-size as well as larger companies with a fuller suite of technology that covers e-commerce. But if the deal closes as expected sometime in the third quarter, having a broader technology and services platform won’t by itself be enough win over more customers of all sizes, industry analysts say.

The key for success for Adobe and Magento is leveraging each company’s products and services—Adobe’s digital media and Magento’s e-commerce software—expertise into a unique technology suite, industry experts say.

Adobe, which focuses on large corporate clients, will gain entry into the mid-size company market that is Magento’s core customer base. And if it can successfully help Magento grow its technology and services, it will also expand its reach among smaller companies as well as large enterprises, analysts say.

“Magento gives Adobe entry into the mid-market and credibility in B2B e-commerce, and Adobe will bring Magento up-market to handle larger companies,” says Ray Wang, CEO of technology research and advisory firm Constellation Research.

“Adobe really needed to get into the commerce game to provide a full solution and compete with SAP, Oracle, IBM, and Salesforce,” adds Brian Beck, senior vice president, e-commerce and omnichannel, at web design and development firm Guidance. “Magento makes a great fit to complete the package, particularly given Magento’s recent and significant investments in B2B e-commerce capabilities. Adobe will continue to pull Magento up market.”

The most immediate impact of the Adobe-Magento deal, however, would likely be in the mid-sized company market. That e-commerce technology market has long been divided among a diverse group of niche vendors. But that gives Adobe and Magento an opportunity to step in with a more complete suite of e-commerce and marketing technology and services. Adobe will be able to introduce Magento’s e-commerce software to its broad channel of companies already familiar with its digital media and marketing products.

“That mid-market space has traditionally been quite fragmented, and acquiring customers has been like herding cats,” says Andy Hoar, CEO of consulting firm Paradigm B2B. “But with Adobe’s mid-market sales channel and Magento’s e-commerce technology, there will be a viable large-scale vendor in the mid-market B2B space. This creates a whole new playing field.”

Adobe and Magento complement each other well in the mid-market, he adds. While Magento provides Adobe an e-commerce solution, Adobe provides a strong network of  mid-market technology partners and sales reps that Magento has lacked, Hoar says.

The two companies will also better positioned to compete with technology providers that target smaller companies. With Adobe’s backing, Hoar says, Magento will be in a strong position to  better compete with other vendors down-market “in a meaningful and compelling way.”

Going forward, Adobe will also need to help Magento further develop cloud technology, Hoar says. Magento is still transitioning its software to the cloud, to let customers subscribe to it as needed under a software-as-a-service, or SaaS model, without having to run it on their own web servers. “Adobe and Magento will need to figure out how to fully ‘subscription-ize’ a Magento-led e-commerce solution,” he says.

In addition, Adobe needs to figure out how to expand on the Magento platform if it wants to enter the e-commerce technology market for the large enterprises that make up its core market. “Historically, much of Magento’s appeal has been to small businesses,” Hoar says, adding: “If Adobe wants to win in the large enterprise commerce space, it will need to ‘road-map’ and deliver that.”

Prior to the pending deal, for which Adobe says it will pay cash, the two companies already had customer synergy. Magento customers include manufacturers Canon Inc., Helly Hansen, Curt Group and Gabor Shoes. Adobe and Magento share joint customers including The Coca-Cola Co., Warner Music Group, Nestlé and Cathay Pacific, Adobe says.

Now the challenge will be to price turn-key cloud-based B2B marketing and e-commerce services in ways and packages that appeal to a wide array of businesses, Hoar says. Together one plus one could equal three if they execute well by marrying their products over time, integrating their partner networks.”

Magento offers a diverse suite of e-commerce tools and includes services such as pre-built extensions, including for payment, shipping, tax and logistics. The Magento platform is supported by a community of more than 300,000 developers. That diversity, coupled with Adobe’s digital media products and marketing services, gives the combined organization a better way to sell to specific e-commerce market segments, Beck says.

Magento has made some notable changes recently to its technology platform. At its annual Imagine conference last month, it launched technology features designed for B2B as well as retail e-commerce sites. Of particular interest to many Imagine attendees was Magento’s launch of its Progressive Web Applications Studio, a set of tools for building online stores with app-like interactivity.

While making the PWA Studio available now to site developers, Magento says it will also build it into Magento Commerce version 2.3, which will launch in late summer 2018 as an upgrade to the current version 2.2. Version 2.2 is the first version of Magento Commerce—formerly known as Magento Enterprise for larger companies—to include built-in features for B2B e-commerce, such as the ability to set multiple purchasing authorizations according to the roles of individual buyers.

The Adobe-Magento deal also has ramifications for other technology vendors, issuing in a new level of competition and sparking more consolidation, analysts say. “This will cause more consolidation in the e-commerce technology market,” Wang says.

Sign up for a complimentary subscription to B2BecNews, a newsletter published four times a week with coverage of technology and business trends in the growing B2B e-commerce industry. B2BecNews is owned by Vertical Web Media LLC, which also publishes DigitalCommerce360.com, Internet Retailer and Internet Health Management. Follow Mark Brohan on Twitter @markbrohan.

Follow us on LinkedIn and be the first to know when new B2BecNews content is published. 

 

Permanent link to this article: http://homebiz2bizreview.net/internet-marketing/how-adobe-and-magento-can-attract-more-customers/

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