an ecommerce platform manifesto | what retailers must deliver to outperform the competition

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AN ECOMMERCE PLATFORM MANIFESTO: !What Retailers Must Deliver to Outperform the Competition

featuring


Jason WallisChief Technology Officer, Mozu

Peter is a VP & Principal Analyst at Forrester Research serving ebusiness & channel strategy professionals. He focuses on eCommerce technologies and solutions.

Peter SheldonVP & Principal Analyst, Forrester Research

Jason Wallis, CTO, brings almost 20 years of experience to Mozu and is responsible for driving the next generation of the commerce platform.

An eCommerce Platform Manifesto: What Retailers Must Deliver to Outperform/Surpass the Competition

Peter Sheldon, VP & Principal Analyst

May 5, 2015

@peter_sheldon

eCommerce continues on a path of explosive growth

© 2015 Forrester Research, Inc. Reproduction Prohibited 5

Consumer online spend in the US will reach $414 billion by 2018

Source: 2014 Global eBusiness & Channel Strategy Online Survey


US B2B online spend will dwarf consumer spend, reaching $1 trillion by 2018


Online sales growth remains robust for almost all retailers

Source: The State of Retailing Online 2015: A Shop.org study conducted by Forrester Research

8 © 2015 Forrester Research, Inc. Reproduction Prohibited

Germany 2015: €40B ($49B) 2018: €55B ($75B)

US 2015: $325B 2018: $414B France

2015: €34B ($36B) 2018: €47B ($50B)

UK 2015: €56B ($60B) 2018: €71B ($76B)

Projected online retail sales by country

Mexico (incl. C2C) 2015: $3.4B 2018: $5.7B

Brazil (incl. C2C) 2015: $22B 2018: $35B

China (incl. C2C) 2015: $594B 2018: $990B

India (incl. C2C) 2015: $7.2B 2018: $24B

Japan 2015: $71B 2018: $93B

Australia (incl. C2C) 2015: $27B 2018: $36B Argentina (incl. C2C)

2015: $4.1B 2018: $7.0B

Source: Forrester Research Online Retail Forecast, 2013 To 2018 (US); Forrester Research Online Retail Forecast, 2013 To 2018 (Western Europe); Forrester Research Online Retail Forecast, 2014 To 2019 (Asia Pacific); Forrester Research Online Retail Forecast, 2013 To 2018 (Latin America)

International online spend is outpacing US growth

28% of online transactions are now from mobile & tablet devices


At most online retailers, mobile & tablet traffic now exceeds desktop


YOY growth in mobile sales is staggering

Source: The State of Retailing Online 2015: A Shop.org study conducted by Forrester Research


As a consequence, commerce technology budgets remain very healthy


4 key threats are driving firms to replatform their commerce technology


Existing homegrown platforms simply have too many miles on the clock

#1 ›  Experiencing:

• Platform outages • Subpar performance • Difficult maintenance • Outdated tools • Skill shortages


Existing platforms are not Omni-channel ready

#2 › Retailers need:

•  Integrated product merchandising and pricing • Associate tools for in-store customer engagement •  Increased inventory visibility • “Out of the box” Omni-channel tactics

#3 – Existing platforms can’t provide sophisticated data insights

#3

Existing platforms can’t provide sophisticated data insights

› Firms need to leverage real-time data insights to drive more efficient and sophisticated:

• Marketing • Merchandising • Pricing •  Inventory optimization • 360° view of the customer


Today’s buyer expects much, much more from their eCommerce platform

#4 ›  They need to support:

• Core commerce functionality • Experience Management • Product Information Management • Omni-channel Order Management •  In-store Associate Enablement

Welcome to era of the Suite

What does the future hold for commerce technology?


Open source & SaaS solutions will benefit as home grown and legacy solutions are retired


+


Open source & SaaS platforms move upmarket


Retirement of legacy platforms will drive investment in re-platforming programs



›  B2B industries such as manufacturing and wholesale are set to increase significantly in the next five years.

›  European and Asian B2B markets have the highest growth potential.

›  Wholesale trade, pharmaceuticals, and oil and gas will show vast adoption of B2B commerce channels.

B2B firms are set to invest heavily in commerce

forrester.com

Thank you

Peter Sheldon [email protected] @peter_sheldon


You can drown in the !Wave of Accelerating Change!

•  Mobile Adoption •  Inventory Visibility •  Blended Channels •  Mobile and In-store POS •  Social Trends •  Empowered Associates •  Multiple Platforms


Or you can ride it!!


Consumer Shopping Behavior Forever Changed with the Launch of the iPhone

1990s ECOMMERCE "IS BORN Early vendors "supplied the basics "of ecommerce: "listing products and accepting payments

2000s MOBILE RISES Mobile devices forced retailers to maintain both traditional and mobile-friendly sites

2010s MULTI-CHANNEL EXPLODES Proliferating sales channels require retailers to create a seamless experience both on- and offline

TODAY LIMITLESS COMMERCE Today’s business is truly omni-channel, requiring a modern platform that provides limitless extensions

2007 IPHONE ARRIVES The invention of the iPhone and rapid adoption of mobile devices transforms the world of online shopping


Embrace Agility and Innovation

In-store

Online

Drives innovation Unified digital experience Rapid development Faster time-to-market

Modern Technology Stack

Native Mobile

Responsive Theme

REST API

SaaS

Business Critical Applications

Commerce

Fulfillment

ERP

POS

Commerce solutions built on a flexible SaaS platform are setting a new standard for performance and innovation


Mozu Openness Powers Innovation

OPEN SOURCE SDKS!Speed up time to market development by programming in popular languages

UNLIMITED SANDBOXES!Unlimited pre-production testing environments to validate development work

REFERENCE STORES!Leverage open source Mozu applications and reference architectures to jump start development


Consistency Across Devicesü Consistent shopping across all devices is key

ü Shoppers want the ability to begin shopping on one device and end on another

ü Building, managing and maintaining separate sites for different devices is a thing of the past


Streamlined Content Management

MASTER CATALOG


Providing Convenience for Customers

ü 51% of customers used mobile to check in-store availability and 24% reserved a product for in-store pick-up

ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store

ü Empower sales associates in stores to aid in product discovery and decision making

ü 51% of customers use mobile to check in-store availability and 24% reserve a product for in-store pick-up

ü Retailers need to be transparent on inventory levels and communicate where customers can find them in-store

ü Retailers should empower sales associates in stores to aid in product discovery and decision making


CUSTOMER EXPERIENCE

Stores, Kiosks Call Centers

Mobile, Tablet, PC’s

COMMERCE MANAGEMENT

REST APIMulti-Tenant SaaS

MOZU DEV CENTER

Theme Development

Widget Development

APP DEVELOPMENT Native App

Integrations

Catalog

Reports

Customers Orders

Publish

Locations

Marketing Site Builder

SDKs Hyp

r The

me

Engin

e

Applications

Mozu Platform


Jelly Belly Experiences Sweet Growth

35

Challenges!•  Replace homegrown system •  Focus on expanding online sales •  One platform for B2C, B2B and consolidated

content sites WW

Solutions!•  Cost efficient SaaS platform •  Consistent experience across mobile •  Scale operations with master catalog •  Empower eBusiness team to quickly update

products, promotions and content

Results!•  Mobile revenue increased from 2% to 32% •  Record sales the week after launch •  Happy eBusiness team

“Migrating from our homegrown platform to Mozu has given Jelly Belly the power and agility to innovate.”

Brandon Finch—Director of eBusiness, Jelly Belly

+


TonZof Products. TonZof Growth. TonZof Innovation.

“We selected Mozu for our massive new Tonzof.com ecommerce site because it strikes the perfect balance of modern features, flexibility and value.

Compared to the other solutions we considered, nothing else even came close to the power and potential of Mozu.”

Ben Skigen—VP of eCommerce & Marketing +

Challenges!•  Limited product attributes •  Unreliable site updates •  Slow site, performance issues

Solutions!•  Admin tool simplified, sped up site updates •  Mozu’s tech stack provided a faster, more

reliable site •  Mozu’s open API made it simple to integrate

with TonZof’s proprietary systems

Results!•  Launched with over 500K SKUs in less than

6 months •  10x faster for marketing to make site updates •  Lightening fast & mobile friendly experience


Sigma Beauty. Beautiful eCommerce.

“We knew we needed an enterprise level platform that would accommodate our growing needs. That was the most important

strategic decision. Going into the project, we felt nervous but were confident in our partners”

Annie Westman—Director of Strategy

+ Challenges!

•  Engage a younger demographic •  Limited mobile experience •  Wanted to develop custom features

Solutions!•  Face Chart: Visual showcase of cosmetics on

virtual face •  Free gift with purchase: personalized and

segmented gifts with different purchases •  Dynamic pricing: unique catalogs and price lists

across customer segments •  Responsive mobile sites

Results!•  Unique experiences that disrupt the market •  Marketing is now empowered to create custom

digital experiences •  Consistent, engaging experiences across

devices including mobile


Mozu | The Cloud Commerce Platform

Connected Digital Experiences

•  Natively responsive and adaptive design •  Unmatched Site Speeds •  Personalization with customer segments •  Smart searching using SOLR •  Lookbooks and product clustering •  Streamlined checkout

Empowered Marketing Teams

•  Fully integrated CMS •  Drag and drop widgets •  Extensive promotions •  Site builder •  Order management •  Master catalog across sites •  Robust transaction and customer

reporting •  SEO optimized

Innovative Technology

•  Open API •  Unlimited dev sandboxes •  Open source SDKs •  True multi-tenant SaaS •  Hypr theme engine •  Custom widget development •  Application development •  Unmatched multi-layer security •  99.9% uptime guarantee •  App marketplace


Curious to see how a modern SaaS platform can transform your business?"

"Let us show you."

"Request a demo at mozu.com!

an ecommerce platform manifesto | what retailers must deliver to outperform the competition

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