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State of B2B Ecommerce in ANZ, Southeast Asia and India

In association with Magento, An Adobe company

State of B2B Ecommerce in ANZ, Southeast Asia and India In association with Magento, An Adobe company

Econsultancy Singapore

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Copyright © Econsultancy.com Ltd 2018

Published September 2018

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mailto:[email protected]

State of B2B Ecommerce

in ANZ, Southeast Asia and India In association with Magento, An Adobe company

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage

and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2018

Contents

1. Executive summary ................................................... 4

1.1 Methodology ........................................................................ 6

1.2 About Econsultancy .............................................................. 7

2. Foreword by Magento ............................................... 8

2.1 About Magento .................................................................... 8

3. Recommendations ..................................................... 9

4. Growth of B2B ecommerce .......................................10

5. The B2B customer experience .................................. 15

6. Ecommerce technology ............................................ 21

7. Bridging the gap: people, processes, technology and data ........................................................................... 31

8. The future: diversified distribution, IOT and AI .... 37

9. Appendices ............................................................... 42

9.1 Respondent profiles ........................................................... 42

9.2 Additional charts, including regional breakdowns ........... 46





1. Executive summary The State of B2B Ecommerce in ANZ, Southeast Asia and India report, produced by

Econsultancy in partnership with Magento, an Adobe company, is based on a survey of more

than 500 companies in Australia and New Zealand (ANZ), Southeast Asia and India.

The research looks at the extent to which companies are seizing the B2B ecommerce opportunity,

and investing in important capabilities relating to people, processes, technology and data.

The key findings of the research are summarized below.

Growth of B2B ecommerce B2B ecommerce represents a huge opportunity for organisations to strengthen their relationships with prospects and customers, and to drive incremental revenue through digital channels. This research finds that, on average, for leading companies with a transactional website for B2B sales, 40% of revenues are directly generated through ecommerce. However, there is significant scope for companies to embrace digital technology further as they seek to acquire, convert and retain customers more effectively. For those companies without any transactional capability, there is a missed opportunity to improve both top-line and bottom-line P&L performance.

Less than a third (32%) of B2B companies surveyed ‘strongly agree’ that their organisations

are ‘committed to investment in the B2B ecommerce experience’, though a further 45%

‘somewhat’ agree.

Companies in India are most likely to be committing to investment, with an overwhelming

93% of respondents indicating that this is the case, compared with 75% in Southeast Asia and

70% in Australia and New Zealand.

The B2B customer experience With consumer retail and tech giants raising the bar when it comes to digital interaction and engagement, there is a growing need for B2B-focused brands to make more of an impact when it comes to meeting growing expectations for a great customer experience. Buyers increasingly want the same quality of digital engagement that they get from the likes of Amazon, Lazada and Alibaba.

More than eight in ten (81%) respondents agree – whether ‘strongly’ or ‘somewhat’ – that

‘professional buyers expect a consumer-grade digital experience’ from their websites.

Only a third of respondents (33%) strongly agree that they can ‘personalise the digital

experience based on previous interactions with the business’, and a quarter (24%) are still yet

to make steps towards personalised products and offers.

Respondents in Australia and New Zealand are least likely to agree that they can personalise

the digital experience, even though they are most likely to believe that professional buyers

expect a consumer-grade digital experience from their digital properties.

Ecommerce technology

B2B technology vendors need to deliver across a range of technical and marketing-related areas of

functionality. An increasingly important requirement for B2B companies striving for a more

efficient and omnichannel approach is the integration of ecommerce operations with other core

parts of the business.





Top of the priority list in terms of technical functionality is security and compliance with a

majority of respondents (54%) viewing platform capabilities as ‘critical’.

Order management systems have become an increasingly important tool for retail businesses

seeking to streamline their ecommerce operations in a more complex and multichannel

environment. Forty-three per cent of those surveyed regard good order management

capability as critical.

Across a range of areas of functionality there is a noticeable shortfall between the proportion

of respondents who regard platform capabilities as ‘critical’ or ‘important’, and the proportion

that regard their vendors as performing well in these areas.

Customer service is the area most likely to have been successfully integrated with ecommerce

operations, with two-thirds (66%) of respondents saying this is the case. More than half say

that there has been successful ecommerce integration with email (56%), CRM / sales (56%),

order management systems (54%) and business intelligence (52%).

Bridging the gap: people, processes, technology and data The performance of a B2B ecommerce function depends on the organisation’s strengths in the following four areas: people/skills, processes and workflows, technology and data. Each of these areas is important on its own, however it is the combination of the company’s capabilities in these four areas that underpins success.

India-based respondents are far more likely to rate their organisations’ capabilities in

people/skills, technology and data as ‘good’, than in the other two regions.

Respondents rate their data capabilities the lowest among the four areas required for the

development of best-in-class ecommerce technology, and they are also least likely to be

increasing their budget in the area, with just 42% indicating increased spend in the next 12

months.

Data integration is the most often-cited barrier to developing best-in-class ecommerce

operations, with 17% of respondents selecting this as the principal challenge. This is closely

followed by complexity of business (15%), and lack of strategy (14%).

The future: diversified distribution, IOT and AI The future has, to an extent, already arrived when it comes to the potential of diversified distribution options, for example through dropship vendors, shipping from stores or third-party delivery services. Meanwhile, other tech-related trends such as the Internet of Things and developments in artificial intelligence and machine learning are very much on the radar for the region’s B2B-focused companies.

The majority of responding organisations (73%) are planning to diversify their distribution

options, while a fifth (20%) have already done so.

The Internet of Things is most often cited as the most exciting technology-related trend for

B2B ecommerce, with 20% of respondents selecting it. This is very closely followed by

artificial intelligence / machine learning (including chatbots), cited by 19% of businesses.





1.1 Methodology There were more than 500 respondents to our research request, which took the form of an online

survey fielded in June and July 2018. All respondents were from Australia and New Zealand

(ANZ), Southeast Asia and India. Breakdowns for these regions are included in the main body of

the report, and also in the report appendix.

Information about the survey, including the link, was emailed to Econsultancy’s database of

marketers and ecommerce professionals, and promoted via emails. The incentive for taking part

was access to a free, advance copy of the report just prior to its publication on the Econsultancy

website. Third-party panels were used to supplement the sample size.

More breakdowns of the respondent profiles, including size of company by revenue, and business

sector, are included in the appendix.

If you have any questions about the research, please email Econsultancy’s Head of Commercial

Research Services, Monica Savut ([email protected]).

mailto:[email protected]





1.2 About Econsultancy Econsultancy’s mission is to help its customers achieve excellence in digital business, marketing

and ecommerce through research, training and events.

Founded in 1999, Econsultancy has offices in London, New York and Singapore.

Econsultancy is used by over 600,000 professionals every month. Subscribers get access to

research, market data, best practice guides, case studies and elearning – all focused on helping

individuals and enterprises get better at digital.

The subscription is supported by digital transformation services including digital capability

programs, training courses, skills assessments and audits. We train and develop thousands of

professionals each year as well as running events and networking that bring the Econsultancy

community together around the world.

Subscribe to Econsultancy today to accelerate your journey to digital excellence.

Contact us to find out more:

Singapore: +65 6653 1911

London: +44 207 269 1450

New York: +1 212 971 0630

http://econsultancy.com/subscribe





2. Foreword by Magento By 2020, customer experience will overtake price and product as the key brand differentiator.1

Modern consumers, empowered by the internet and mobile devices, have redefined what it means

to be a successful business. New technologies and business models are upending entire sectors,

B2C and B2B, creating ongoing waves of relentless disruption for every business. To address these

vast changes, you and your business must continuously adapt to meet your customer’s

expectations.

Omnichannel is more than a technological diet pill to make a quicker, cheaper sale: it’s about

creating a system which empowers you to nurture your customers at every step of their buyer’s

journey. It is a system that unites all your channels to create long-term fans that will keep coming

back to your brand and happily recommend you to others. From the customer’s point of view, the

best Customer Experiences (CX) are the easiest. From research, to payment, through to delivery,

you need to keep your CX simple and consistent across all your touchpoints, whether online or in

person. With multiple ways to fulfil desire, you must have multiple ways to instil desire, create

delight and stay top-of-mind.

The Econsultancy ‘State of B2B Ecommerce in ANZ, SEA and India’ research report will provide

you some great insights and the practical advice on how to begin driving a positive B2B CX

transformation. No matter what stage you are at, there’s always more to be done. No matter how

familiar you are with technology and marketing, we all struggle to keep up. The customer journey

is one we can all understand, because, whatever your current business role. you’re also very often

on the other side, as a customer.

Nicholas Kontopoulous Regional Head of APAC Marketing Magento, an Adobe company

2.1 About Magento Magento Commerce is the leading provider of cloud commerce innovation to merchants and

brands across B2C and B2B industries, with more than US$155 billion in gross merchandise

volume transacted on the platform annually. In addition to its flagship digital commerce

platform, Magento Commerce boasts a strong portfolio of cloud-based omnichannel solutions

that empower merchants to successfully integrate digital and physical shopping experiences.

Magento Commerce is the #1 provider to the Internet Retailer Top 1000, the B2B 300 and the

Top 500 Guides for Europe and Latin America. Magento Commerce is supported by a vast global

network of solution and technology partners, a highly active global developer community and the

largest ecommerce marketplace for extensions available for download on the Magento

Marketplace. More information can be found at www.magento.com.

1 https://www.walkerinfo.com/knowledge-center/featured-research-reports/customers2020-1

http://www.magento.com/

https://www.walkerinfo.com/knowledge-center/featured-research-reports/customers2020-1





3. Recommendations 1. Build the business case to secure B2B ecommerce investment

This research shows companies are generating a growing proportion of their revenue directly

through digital channels, but that there is an opportunity to drive significant incremental

ecommerce sales further. Investment in B2B ecommerce requires a business case based on the

potential impact on both the top and bottom line, based on an improved ability to acquire and

retain customers, and through timelier and more efficient customer service. A coordinated

approach is required within the business so that digital channels and ecommerce capabilities are

developed as an integral part of the overall business, rather than as a separate and standalone

channel.

2. Focus religiously on the B2B customer experience

Your business customers are consumers like everyone else. They have growing expectations about

the ability of B2B companies to anticipate their needs and personalise the experience in a world

where the tech giants and leading consumer brands have forced everyone to raise their game.

With research showing a growing number of stakeholders involved in B2B purchasing, customer

journey mapping is an effective way to build your understanding of what different types of

persona might require at different points in the research and buying process, and the role of

different channels during their journey.

3. Ensure you have ecommerce technology that is fit for purpose

This research shows that B2B ecommerce vendors need to deliver across a wide range of

capabilities, from security and billing, to content management systems and merchandising. There

is a gap between what companies are now expecting, and what vendors are actually delivering to

their satisfaction. Ensure your technology platform offers the marketing-related functionality you

require, for example the ability to personalise the experience and localise for different languages.

Consider re-platforming with a different vendor if your technology doesn’t integrate seamlessly

with other business platforms, for example customer service, CRM and back-office systems.

4. Focus on people and processes, not just technology

This study shows that companies across all the regions surveyed are significantly less likely to be

increasing their budgets for ecommerce-related workflow and skills development than they are

for technology. While technology is of the utmost importance, B2B companies also need to invest

in developing their people and processes if they want to reap the best possible returns from their

ecommerce investment. Data capabilities should be a key area of focus for companies, with the

research showing a particularly marked shortfall of investment in this area. Building a

sophisticated ecommerce operation is a significant undertaking that requires the right internal

leadership, the right partners and the right skillsets within the business.

5. Keep an eye on future trends that are shaping the future of ecommerce

The report outlines various trends that are shaping the future of ecommerce, from the Internet of

Things and artificial intelligence, to evolving payment solutions and virtual reality. Budget should

be set aside for experimentation to ensure that companies are ready to capitalise on emerging

trends and technology developments that can help them to differentiate from their competitors

while also building their reputation for innovation. IoT alone offers great opportunities to create

stronger customer relationships, while bringing about both supply chain and inventory

efficiencies.





4. Growth of B2B ecommerce During the digital revolution that has taken place over the last 20 years, consumer-facing brands have monopolised attention, overshadowing their B2B peers when it comes to digital innovation and best practice. In recent years, however, trends have been shifting. Frost & Sullivan has estimated that the global B2B ecommerce market will reach US$6.7 trillion by 20202. As the stakes become higher, there is a growing need for B2B-focused brands to make more of an impact when it comes to pushing customer experience frontiers. Just as in the consumer space, B2B executives now have a wealth of digital tools at their disposal, to better understand their customers and build engagement with them. If companies are not making full use of the available technology, they are increasingly giving their competitors an opportunity to take the initiative. Business clients are individuals, in the end, and like any consumer nowadays, will readily turn to social media and other digital channels when researching, evaluating, and purchasing products. The onus is on suppliers to address these changing demographics and habits among customers. Research published in 2017 by Boston Consulting Group, commissioned by Think with Google3, found that 67% of purchases for manufacturing and pack-and-ship industries were influenced by digital. It also noted mobile to be “increasingly playing a critical role in the B2B customer journey”, claiming that mobile “drives, or influences, an average of more than 40% of revenue in leading B2B organisations — in industries that traditionally depend more on sales than marketing to drive revenue”4. This Econsultancy report is based on a survey of B2B companies in the region that either have a transactional website for B2B sales, or that are planning one. Those respondents without any plans for a transactional B2B website were disqualified from the survey. As can be seen in Figure 1, 73% of those surveyed are able to process B2B sales online, and most of the remainder (72%) plan to do so within the next year (see Appendix, Figure 46).

Figure 1: Does your company have a transactional website for B2B sales?

Respondents: 501

Methodology note: survey respondents were disqualified if they had no plans for a transactional website for B2B sales

2 https://ww2.frost.com/news/press-releases/global-b2b-e-commerce-market-will-reach-67-trillion-usd-2020-finds-frost-sullivan/ 3 https://www.thinkwithgoogle.com/advertising-channels/b2b-buyers-online-and-offline/ 4 https://www.thinkwithgoogle.com/marketing-resources/experience-design/b2b-marketing-reshaping-growth/

73%

27%

Yes No, but we are planning to have one

https://ww2.frost.com/news/press-releases/global-b2b-e-commerce-market-will-reach-67-trillion-usd-2020-finds-frost-sullivan/

https://ww2.frost.com/news/press-releases/global-b2b-e-commerce-market-will-reach-67-trillion-usd-2020-finds-frost-sullivan/

https://www.thinkwithgoogle.com/advertising-channels/b2b-buyers-online-and-offline/

https://www.thinkwithgoogle.com/marketing-resources/experience-design/b2b-marketing-reshaping-growth/

https://www.thinkwithgoogle.com/marketing-resources/experience-design/b2b-marketing-reshaping-growth/





Figure 2: Does your company have a transactional website for B2B sales? (Regional breakdown)

Respondents: 501 Methodology note: survey respondents were disqualified if they had no plans for a transactional website for B2B sales Figure 2 shows the regional differences in the split between those who already have a transactional website, versus those who are planning one. Just under a third of ANZ (32%) and Southeast Asia (31%) respondents are only in the planning stages, while for India this proportion drops to less than a fifth (18%). While the majority of companies participating in this research are starting to embrace digital, there is still significant scope for ecommerce sales to grow in value. This research finds that, on average, for leading companies with a transactional website for B2B sales, 40% of revenues are directly generated through ecommerce. Only around a quarter of respondents (27%) to our survey state they generate more than half of their revenue directly through ecommerce (Figure 3). Instead, most companies surveyed (70%) deliver between 11% and 50% of sales digitally. For many B2B organisations the sense is that digital go-to-market activities have been embraced, but are yet to fully fire up.

Figure 3: What percentage of your revenues are currently generated directly through ecommerce?

Respondents: 375

Methodology note: The sample for this question includes only companies with a transactional website for B2B sales

18%

31%

32%

82%

69%

68%

0% 20% 40% 60% 80% 100%

India

Southeast Asia

Australia and New Zealand

Yes No, but we are planning to have one

3%

2%

8%

7%

7%

17%

18%

20%

15%

4%

0% 5% 10% 15% 20% 25%

91-100%

81-90%

71-80%

61-70%

51-60%

41-50%

31-40%

21-30%

11-20%

0-10%





Table 1: Percentage of revenues generated directly through ecommerce

Average

Australia and New Zealand 38%

Southeast Asia 39%

India 44%

Methodology note: The sample for this question only includes companies with a transactional website for B2B sales

While transactional digital capabilities underpin B2B ecommerce, simply enabling purchases covers only a small fraction of the overall digital customer experience picture. It is crucial to consider the broader role of digital channels in acquiring, converting, and retaining customers. Professional buyers are becoming increasingly sophisticated in how they make their purchasing decisions. The complexity of B2B products and pricing means face-to-face meetings and phone calls remain an important part of the sales process and, in the future, buyers and sellers will continue to ‘seal the deal’ on some transactions in the traditional way, rather than online. However, few B2B players can nowadays afford to rely solely on tried-and-tested marketing, sales, and customer service activities when promoting the benefits of their products and services. With the rise of social media, online catalogues, product marketplaces and other new information sources, digital is now playing a pivotal role in how businesses allocate and direct spend. Buyers are increasingly turning to digital media at an early stage in the process of researching a purchase, so many relationships with clients and prospects now begin with a digital interaction. As a result, even if purchases end up taking place offline, businesses must have a strong digital presence to become ‘part of the conversation’ in the first place, and ensure they are present at key moments in the customer journey (whether in the physical or virtual world). The changing face of modern-day business is also making B2B marketing much more dynamic. Cultural and organisational changes within businesses are breaking up the traditional customer journey into a much more complicated process. More executives from different functions are now seeking to exert greater influence over buying decisions. According to a 2017 Harvard Business Review report5, an average of 6.8 executives were involved in B2B solutions purchases in 2017, up from 5.4 two years earlier. This, along with the increasing amount of (often contradictory) product information available online, means B2B players must have the right information available at the right times, to achieve proper cut-through within clients. Furthermore, with margin pressures always to the fore, and data analytics techniques growing in sophistication, many businesses are seeking greater accountability and visibility when it comes to spending. Analytics and machine learning techniques are emerging in procurement departments, and are expected to allow companies to predict and direct spend much more effectively by developing algorithmic models around product pricing, supplier stability, and other factors. This, in turn, raises expectations about their suppliers’ capabilities, and means B2B marketers must go beyond their comfort zone to engage customers and prospects. They can no longer rest on familiar, personal relationships between B2B sellers and buyers, and must embrace digital technologies to maintain an understanding of how clients research, evaluate, and select products.

5 https://hbr.org/2017/03/the-new-sales-imperative

https://hbr.org/2017/03/the-new-sales-imperative





Figure 4 shows a mixed picture in terms of how B2B companies across the region are responding to the challenges and opportunities presented by digital transformation. Less than a third (32%) of respondents ‘strongly agree’ that their organisations are ‘committed to investment in the B2B ecommerce experience’, though a further 45% ‘somewhat’ agree. While the market for B2B commerce is still in a nascent stage across Asia and Australasia, it is encouraging to see the appetite for investment. Looking at the differences in specific markets (Figure 5), companies in India are most likely to be committing to investment, with an overwhelming 93% of respondents indicating that this is the case, compared with 75% in Southeast Asia and 70% in Australia and New Zealand. This research also looks at the degree to which companies are focused on developing an omnichannel strategy that has ecommerce as part of the wider mix, rather than as a standalone channel or silo. Only a quarter of companies surveyed (24%) strongly agree this is the case, while just under half (46%) somewhat agree. As was the case for commitment to B2B ecommerce investment, companies in India regard themselves as most advanced in this respect, with 86% of respondents on the subcontinent saying their companies have an omnichannel strategy that incorporates ecommerce.

Figure 4: Extent to which respondents agree with B2B ecommerce-related statements

Respondents: 372

39%

24%

32%

41%

46%

45%

14%

14%

11%

4%

10%

7%

3%

7%

5%

0% 20% 40% 60% 80% 100%

We understand the indirect impact of digitalchannels on overall sales

Our company has an omnichannel strategythat incorporates B2B ecommerce

Our organisation is committed to investmentin the B2B ecommerce experience

Strongly agree Somewhat agree Neither agree nor disagree

Somewhat disagree Strongly disagree





An important part of an omnichannel strategy is the ability to understand the indirect impact of digital channels on overall sales. Again, looking at Figure 4, 39% of companies are in strong agreement that they are able to do this. While sales driven directly through ecommerce are becoming an increasingly important revenue stream, the business case for digital and ecommerce investment should ultimately be based on the contribution to overall sales. The extent to which companies can carry out this type of attribution with a view to understanding how digital channels fuel their top-line is encouraging. Even in Australia and New Zealand, where respondents are less convinced than their regional peers about their ability to do this, a quarter (25%) of respondents strongly agree that they understand the indirect impact of digital channels on overall sales, while 72% either strongly or somewhat agree (see also Appendix, Figure 48).

Figure 5: Proportion of respondents agreeing (‘strongly’ or ‘somewhat’) with ecommerce-related statements (Regional breakdown)

Respondents: 372

91%

86%

93%

79%

68%

75%

72%

59%

70%

0% 20% 40% 60% 80% 100%

We understand the indirect impact of digitalchannels on overall sales

Our company has an omnichannel strategythat incorporates B2B ecommerce

Our organisation is committed to investmentin the B2B ecommerce experience

Australia and New Zealand Southeast Asia India





5. The B2B customer experience It is natural that as many of today’s ‘star’ businesses have been built on a digital-led go-to-market play in the consumer space, they offer the customer experience benchmark for all companies, including B2B providers, to aspire to. When researching products on a supplier’s website, B2B customers are not merely comparing it with those of its rivals. Whether subconsciously or consciously, they are gauging it against the best sites they have engaged with, full stop. Expectations have been elevated, and buyers want the same standards of usability, relevance, and value whether they are interacting with Amazon, Lazada, Alibaba or any other brand. The leading consumer etailers are not only setting standards, but also offering up direct threat and opportunity for B2B suppliers. For example, many will have taken notice of the gradual international expansion of Amazon Business, its business ecommerce marketplace, since 2015. As of June 2018, it had been rolled out in eight countries, including India and Japan, and has expanded its selection to more than 100 million products6. Most B2B players see business-to-consumers players as peers, in the realm of customer experience, although some have not yet acknowledged the link. More than eight in ten (81%) respondents agree – whether ‘strongly’ or ‘somewhat’ – that ‘professional buyers expect a consumer-grade digital experience’ from their website (Figure 8). The same chart shows that more than three-quarters (77%) of respondents report they are seeing ‘increased sophistication of B2B buyers’ when they are making purchasing decisions. As apparent elsewhere in this survey, there is a sizeable minority of B2B executives that are leading the pack, in terms of digital sophistication, and believe the customer experience they offer online compares favourably with consumer-focused counterparts. Just over a third of respondents (35%) see the quality of their organisation’s digital presence as ‘equal with the best B2C experiences’ (Figure 6). Most practitioners are still bringing their digital assets up to par, however. Half of respondents in effect describe the experience they offer as near to middling (i.e. ‘reasonably advanced compared to typical B2C retail experiences’). The remainder remain at an earlier stage in development of their digital presence.

Figure 6: Compared to a typical consumer retail experience, for example Amazon, how do you think your customers rate your digital customer experience?

Respondents: 350

6 http://www.amazonbusinessblog.com/blog/2018/06/amazon-business-launches-in-italy-and-spain.html

35%

50%

12%

3%

0% 10% 20% 30% 40% 50% 60%

Equal with the best B2Cexperiences

Reasonably advanced compared totypical B2C retail experiences

Slightly less advanced than typicalB2C retail experiences

Much less advanced than typicalB2C retail experiences

http://www.amazonbusinessblog.com/blog/2018/06/amazon-business-launches-in-italy-and-spain.html

http://www.amazonbusinessblog.com/blog/2018/06/amazon-business-launches-in-italy-and-spain.html





As can be seen in Figure 7, survey respondents from Australia and New Zealand are most likely to

acknowledge that the B2B digital customer experience they offer is ‘much less’ or ‘slightly less’

advanced than a typical consumer retail experience.

Figure 7: Compared to a typical consumer retail experience, for example Amazon, how do you think your customers rate your digital customer experience? (Regional breakdown)

Respondents: 350

Running a poorly designed digital presence will have a material impact on any business, whether consumer- or business-focused. It not only dampens revenue generation but further hits the bottom line through operational inefficiency and increased cost of sales. As part of today’s mobile workforce, B2B purchasers naturally see seamless optimisation for smartphones as a given when buying online, having grown accustomed to Amazon-style sophistication when it comes to personalisation, recommendations, and incentives. Gartner predicted7 that, by 2018, 40% of B2B digital commerce sites would be using price optimisation algorithms and online configuration tools to support dynamic pricing, and that by 2020, ‘smart personalisation engines’ will be in wide use among B2B ecommerce players. As in the consumer space, personalisation is key not only for driving sales, but also retaining clients and boosting customer lifetime value. Encouragingly, a third of respondents (33%) strongly agree that they can ‘personalise the digital experience based on previous interactions with the business’. However, a quarter (24%) are still yet to make steps towards personalised products and offers. Interestingly, respondents in Australia and New Zealand are least likely to agree that they can personalise the digital experience, even though they are most likely to believe that professional buyers expect a consumer-grade digital experience from their digital properties (Figure 9). Delivering the right content at the right time to each individual customer naturally relies on having insight into clients and how they progress through the buying journey, from awareness through to purchase and beyond. This enables key messages and actions to be delivered digitally,

7 https://www.insideretail.com.au/wp-content/uploads/2016/11/analyst-report-critical-capabilities-for-digital-commerce-2016-en.pdf

42%

53%

6%

0%

36%

50%

12%

2%

29%

49%

17%

5%

0% 10% 20% 30% 40% 50% 60%

Equal with the best B2C experiences

Reasonably advanced compared to typicalB2C retail experiences

Slightly less advanced than typical B2Cretail experiences

Much less advanced than typical B2C retailexperiences


https://www.insideretail.com.au/wp-content/uploads/2016/11/analyst-report-critical-capabilities-for-digital-commerce-2016-en.pdf

https://www.insideretail.com.au/wp-content/uploads/2016/11/analyst-report-critical-capabilities-for-digital-commerce-2016-en.pdf





based on their persona and where they are in the journey, for example highlighting a buyer’s guide or case study when they are in ‘consideration’ mode. Just under a third of respondents (31%) have reached this level of development in their digital activities, ‘strongly agreeing’ that they have ‘mapped the B2B customer journey and understand the roles played by different channels’. A sizeable proportion (48%) say they have ‘somewhat’ achieved progress on this front.

Figure 8: Extent to which respondents agree with digital experience-related statements

Respondents: 372

31%

32%

33%

38%

48%

45%

44%

43%

13%

14%

15%

11%

6%

6%

7%

5%

2%

4%

2%

3%

0% 20% 40% 60% 80% 100%

We have mapped the B2B customer journeyand understand the roles played by different

channels

As a company we recognise the increasedsophistication of B2B buyers making

purchasing decisions

We can personalise the digital experiencebased on previous interactions with the

business

We believe that professional buyers expect aconsumer-grade digital experience from our

website







Figure 9: Proportion of respondents agreeing (‘strongly’ or ‘somewhat’) with digital experience-related statements (Regional breakdown)

Respondents: 372

The reality of customer experience improvement is that it is a major challenge for all businesses, especially those burdened by legacy infrastructure. It doesn’t just require a cultural and organisational refresh. It must also be underpinned by a clear and focused strategy, to ensure consistency in decision-making at every level of the business. Focusing on the customer is not just the domain of the marketing or customer service department – everyone has a part to play. Smoothing out these internal barriers is often cited by the most successful players in the digital world as key to what they have achieved. Strong leadership and accountability is therefore crucial. Figure 10 suggests B2B players have varying approaches to leading on customer experience initiatives, but are at least clear on who is ultimately in charge of them. Only 2% cite ‘no one’ when asked who is primarily responsible. In a broad mix, responsibility most commonly rests with a Head of Ecommerce (19%), Head of Marketing (18%), or with the Head of Sales (16%). As can be seen in Figure 11, the Head of Marketing followed by Head of Sales are most likely to be tasked with this responsibility in Australasia and Southeast Asia, while in India the Head of Ecommerce and CEO are most likely to be in charge. The more forward-thinking organisations have also begun to adapt internal reward structures to encourage greater integration of digital channels into the sales mix. Just under three in ten (29%) strongly agree they ‘incentivise sales staff for ecommerce referrals’ (Figure 12), though this percentage increases to 36% for India and decreases to 12% for Australia and New Zealand (Figure 13).

88%

86%

88%

93%

79%

78%

79%

82%

67%

71%

53%

70%

0% 20% 40% 60% 80% 100%

We have mapped the B2B customer journeyand understand the roles played by different

channels




business

We believe that professional buyers expect aconsumer-grade digital experience from our

website






Figure 10: Who is primarily responsible for the overall customer purchasing experience within your organisation?

Respondents: 511

Figure 11: Who is primarily responsible for the overall customer purchasing experience within your organisation? (Regional breakdown)

Respondents: 511

19% 18%

16%

13%11%

10%

6% 6%

2%

0%0%

5%

10%

15%

20%

14%

8%7%

10%

16%

18%

4%

17%

4%3%

10%

4%

11%

13%

16%

20%

7%

17%

2%1%

16%

9%

4%

10%

33%

15%

6% 6%

0% 0%0%

5%

10%

15%

20%

25%

30%

35%






Figure 12: ‘We incentivise sales staff for ecommerce referrals’

Respondents: 372

Figure 13: ‘We incentivise sales staff for ecommerce referrals’ (Regional breakdown)

Respondents: 372

29%

42%

18%

7%4%

Strongly agree Somewhat agree

Neither agree nor disagree Somewhat disagree

Strongly disagree

36%

33%

12%

45%

38%

43%

14%

18%

27%

4%

7%

13%

2%

3%

6%

0% 20% 40% 60% 80% 100%

India

Southeast Asia




Strongly disagree





6. Ecommerce technology Having a focused plan for technology investment is another key success factor when it comes to digital commerce, no matter whether an organisation is operating in the B2B or B2C arena. A willingness to experiment with new technologies and techniques is crucial for organisations seeking to make their mark in the digital world. However, the complications of legacy platforms and multitude of solutions available in the market makes selection no easy task. The area of technology is also one where it is less straightforward for B2B companies to adopt learnings from consumer-focused peers, considering the significant differences in demands on ecommerce platforms between the B2C and B2B environments. This section explores the key facets of ecommerce platforms that B2B executives see as important, and the performance of their existing technology across these different areas of functionality. The responses show a high level of expectation, with only a few capabilities deemed irrelevant by a significant number of respondents. Top of the priority list is security and compliance (Figure 14). This is the only area of functionality where a majority of respondents (54%) view platform capabilities as ‘critical’. Given the typically high value of B2B transactions, order management is naturally near the top of the agenda for respondents. A high percentage (43%) see this as a ‘critical’ capability. Business intelligence functionality is also seen as crucial by many executives (41%), showing the increasing focus on drawing insight from ecommerce data. Only with call centre support and third-party systems and plug-ins does the level of respondents deeming them unimportant reach double figures, but even in these areas nine in ten of executives regard them as at least ‘important’ components of their ecommerce platforms.

Figure 14: When selecting an ecommerce platform, how important are the

following types of functionality?

Respondents: 517

22%

27%

29%

32%

33%

34%

38%

38%

39%

41%

43%

54%

74%

63%

66%

58%

61%

60%

59%

58%

54%

55%

53%

43%

4%

10%

6%

10%

6%

6%

3%

4%

6%

4%

4%

3%

0% 20% 40% 60% 80% 100%

Multichannel

Third-party systems and plug-ins

Back-office integrations

Call centre support

Ability to handle high number of SKUs

Merchandising

Product information management (PIM)

Content management system

Billing / payment integration in multiplecurrencies

Business intelligence

Order management

Security and compliance

Critical Important Not important





It is encouraging that B2B brands have a long list of requirements from their ecommerce platforms, reflecting significant ambition to drive sales digitally. There is a degree of variation across different markets (Figure 15), but in every region the vast majority of respondents regard each type of functionality as either critical or important.

Figure 15: Proportion of respondents describing types of functionality as ‘critical’

or ‘important’? (Regional breakdown)

Respondents: 517 While the importance of these different areas of functionality has clearly been established, what is less clear is whether ecommerce platforms are meeting client requirements. Platforms tend to receive only a lukewarm level of customer validation, suggesting technical limitations. For many businesses, this remains a hurdle to implementation of an effective ecommerce strategy. The shortfall between performance and perceived importance is shown in Figure 18. While few respondents deem functionalities as ‘poor’, it is noticeable that in key areas highlighted as critical by many respondents, a significant proportion of executives only see their capabilities as ‘okay’. For security and compliance, as an example, 39% describe their platforms’ capabilities as such, though this is an area of vital performance where ecommerce platforms should unequivocally deliver. No area of functionality receives particularly wide endorsement. Content management system comes out best, with 59% of respondents reporting theirs to be ‘good’. Merchandising and

94%

90%

94%

90%

88%

99%

97%

97%

94%

97%

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94%

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98%

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82%

85%

89%

89%

89%

91%

91%

92%

94%

95%

95%

60% 70% 80% 90% 100%


Call centre support

Merchandising




Multichannel


Order management









product information management capabilities performed relatively well also, with both described in this way by 55% of respondents. As can be seen in Figure 17, respondents in India score their platforms most highly, particularly in the areas of business intelligence, product information management and order management.

Figure 16: How do you rate your ecommerce platform for these areas of

functionality?

Respondents: 367

43%

46%

46%

47%

50%

50%

51%

54%

55%

55%

57%

59%

49%

50%

49%

50%

42%

45%

44%

44%

43%

42%

39%

39%

8%

4%

5%

3%

8%

5%

5%

2%

2%

3%

4%

3%

0% 20% 40% 60% 80% 100%




Multichannel

Call centre support



Order management


Merchandising



Good Okay Poor





Figure 17: Proportion of respondents rating their ecommerce platform as ‘good’

for different areas of functionality (Regional breakdown)

Respondents: 367

47%

64%

33%

49%

65%

60%

47%

56%

55%

65%

58%

60%

50%

50%

46%

48%

54%

49%

45%

55%

48%

51%

59%

57%

29%

34%

35%

37%

38%

40%

43%

43%

44%

45%

47%

51%

0% 10% 20% 30% 40% 50% 60% 70%

Multichannel





Billing / payment integrationin multiple currencies


Merchandising

Call centre support

Order management








Figure 18: Ecommerce technology functionality: the gap between performance

and importance

Respondents: 517

90%

91%

94%

94%

94%

95%

96%

96%

96%

96%

97%

97%

43%

50%

46%

51%

55%

46%

47%

54%

50%

59%

55%

57%

0% 20% 40% 60% 80% 100% 120%


Call centre support



Merchandising


Multichannel

Order management





Percentage who rate functionality as "Critical" or "Good"

Percentage who rated their platform as "Good"





This report has already discussed how rising expectations of B2B buyers are increasing the pressure on suppliers to deliver more responsive and engaging digital experiences. Yet it remains clear – as elsewhere in this report – that only a minority of B2B players have truly embraced the commercial opportunities offered by digital. This is reflected in Figure 19, focused on which marketing-related platform functionalities are deemed most significant by respondents. While all capabilities are described as at least ‘important’ by the vast majority of respondents, it is noticeable that fewer than half of executives see key areas as ‘critical’. For example, only 37% rate mobile functionality at this level, despite the prevalence of smartphones as everyday business tools. Similarly, personalisation – an important area of opportunity for B2B players to drive sales and boost order value –is described as ‘critical’ by only 34% of executives. This appears quite telling, especially in light of the fact that site search is deemed crucial by more respondents than any other area. It suggests many organisations are yet to grasp the potential to deliver material business gain by pro-actively making personalised recommendations to clients, rather than leave customers to do the legwork when it comes to research. A more positive angle to this set of results is that key technology capabilities – when allied with strategic, organisational, and cultural changes – offer a serious opportunity for competitive differentiation in the B2B market.

Figure 19: When selecting an ecommerce platform, how important are the following types of marketing-related functionality?

Respondents: 511

32%

34%

36%

37%

39%

42%

65%

61%

58%

59%

57%

53%

3%

6%

6%

5%

5%

5%

0% 20% 40% 60% 80% 100%

Multichannel functionality

Personalisation

Localisation (languages and locales)

Mobile

SEO capabilities

Site search






Figure 20: Proportion of respondents describing types of marketing-related functionality within ecommerce platforms as ‘critical’ or ‘important’ (Regional breakdown)

Respondents: 511

An increasingly important requirement for B2B companies striving for a more efficient and

omnichannel approach is the integration of ecommerce operations with other core parts of the

business.

It is crucial that information flows smoothly between different systems to allow for the best

possible experience and reduction of any friction that the customer may encounter during their

journey to purchase.

While companies will struggle to find a single vendor that provides all the technology they require

in a single and unified platform, they should strive to ensure that they use solutions – including

ecommerce platforms - that are relatively easy to integrate with other business systems.

Figure 21 shows that customer service is the area most likely to have been successfully integrated

with ecommerce operations, with two-thirds (66%) of respondents saying this is the case. More

than half say that there has been successful ecommerce integration with email (56%), CRM /

sales (56%), order management systems (54%) and business intelligence (52%).

94%93%

92%91%

88%

87%

96%97%

96%97% 97%

96%97%

99%

93%

97%

94%

97%

80%

85%

90%

95%

100%






Figure 21: With which areas of the business are your ecommerce operations

successfully integrated?

Respondents: 361

Figure 22: With which areas of the business are your ecommerce operations

successfully integrated? (Regional breakdown)

Respondents: 361

1%

34%

37%

50%

50%

53%

54%

56%

56%

66%

0% 20% 40% 60% 80%

None of the above

Supply chain software

Enterprise resource planning

Financial systems

Marketing


Order management system

CRM / sales

Email

Customer service

2%

49%

38%

66%

70%

53%

53%

53%

83%

75%

1%

34%

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1%

26%

28%

33%

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42%

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0% 20% 40% 60% 80% 100%

None of the above





Financial systems

Marketing

CRM / sales

Customer service

Email






Order management systems have become an increasingly important tool for retail businesses seeking to streamline their ecommerce operations in a complex and often multichannel environment. The right technology is essential for ensuring that B2B companies can get their products to their customers as quickly as possible, while also allowing their service teams to interact with customers and orders, and to make changes where required. As B2B companies become more sophisticated in their approach to ecommerce, and as the expectations of customers increase, there is greater demand for instant information about orders and performance. Figure 23 shows the extent to which respondents regard a ‘near real-time view’ as crucial. The most critical requirement for instant visibility is for ‘cumulative spend for each B2B company’, (deemed to be critical by 39% of respondents), followed by ‘order status on any given day’ (37%). Meanwhile, a third of respondents say that it is critical to get a near real-time view of ‘payments made against orders’ (34%) and ‘contribution of sales reps to revenue and quotes’ (33%).

Figure 23: Thinking about what you require from an order management system, how important are the following capabilities?

Respondents: 365

33%

34%

37%

39%

61%

63%

58%

58%

7%

3%

4%

4%

0% 20% 40% 60% 80% 100%

Near real-time view of contribution of salesreps to revenue and quotes

Near real-time view of payments madeagainst orders

Near real-time view of order status on anygiven day

Near real-time view of cumulative spend foreach B2B company






Figure 24: Proportion of respondents describing types of order management

system capabilities as ‘critical’ or ‘important’? (Regional breakdown)

Respondents: 365

81%

88%91% 92%

96% 99% 98% 99%96% 100%95%

100%

0%

20%

40%

60%

80%

100%

Near real-time view ofpayments madeagainst orders

Near real-time view oforder status on any

given day

Near real-time view ofcumulative spend foreach B2B company

Near real-time view ofcontribution of salesreps to revenue and

quotes






7. Bridging the gap: people, processes,

technology and data The performance of a B2B ecommerce function depends on the organisation’s strengths in the following four areas: people/skills, processes and workflows, technology and data. Each of these areas is important on its own, however it is the combination of the company’s capabilities in these four areas that underpins success. Although the survey respondents rated their capabilities in these four areas at similar levels (Figure 25), respondents were most likely to rate their organisations as ‘good’ in the area of people / skills.

Figure 25: How do you rate your organisation’s capabilities in the following areas

when it comes to the development of best-in-class ecommerce technology?

Respondents: 509

The area businesses appear to be least confident around is ‘data’, though not by a large degree. Capabilities in ‘data’ were the least likely to be rated as ‘good’ (46%), and the most likely to be rated as ‘okay’ (51%). This is testament to the difficulty of implementing a robust data strategy in a world of often disparate technology platforms and sources of information that are often hard to reconcile. On a regional level, respondents rated their capabilities in processes and workflows similarly across the geographies. However, regional differences emerged in the other three areas, with India-based respondents far more likely to rate their organisations’ capabilities in people/skills, technology and data as ‘good’, than in the other two geographies (Figure 26).

46%

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53%

51%

45%

43%

43%

4%

5%

5%

4%

0% 20% 40% 60% 80% 100%

Data

Technology

Processes and workflows

People / skills

Good Okay Poor





Figure 26: Proportion of respondents rating their companies as ‘good’ when it

comes to development of best-in-class ecommerce technology (Regional

breakdown)

Respondents: 509 While India-based companies were more likely than not to rate their capabilities in people/skills and technology as ‘good’ (69% and 67% respectively), only about half of the organisations based in Southeast Asia, and in Australia and New Zealand, did the same. As part of this research we also sought to ascertain future investment across these same four areas of capability. In the next 12 months, responding businesses are overwhelmingly more likely to commit more budget to technology than to the other three areas (Figure 27). More than three-fifths (62%) of respondents indicated that they would increase their budget for technology, 17 percentage points more than for people/skills investment, the area in which respondents are next most likely to be increasing budget. While investment in technology is to be applauded, organisations must be careful not to neglect other areas of investment which are also key to B2B ecommerce success.

54%51%

45%

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47%45% 44% 43%

52%

69%67%

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80%

Processes andworkflows

People/skills Technology Data






Figure 27: In the context of ecommerce capabilities, what best describes your budget plans for the next 12 months?

Respondents: 509

Although respondents rated their data capabilities the lowest among the four areas required for the development of best-in-class ecommerce technology (Figure 25), they are also least likely to be increasing their budget in the area, with just 42% indicating they would spend more in the next 12 months. More than half (53%) plan to commit the same budget to the area, suggesting a lack of ambition to address a clear area of weakness for many businesses. On a regional level, respondents in India are more likely than those in the other two geographies to be increasing their budgets in all areas over the next 12 months, except for people/skills (Figure 28). At the other end of the spectrum, respondents in Australia and New Zealand are the least likely to be increasing their investment in all four areas.

42%

45%

43%

62%

53%

50%

53%

34%

4%

5%

4%

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0% 20% 40% 60% 80% 100%

Data

People / skills


Technology

Increasing budget Same budget Decreasing budget





Figure 28: Proportion of respondents saying their companies plan to increase budgets for the next 12 months (Regional breakdown)

Respondents: 509

The greater investment in these areas by India-based companies reflects the country’s rapidly growing ecommerce market.8 According to Forrester Research, the online retail market in India will grow at a CAGR of 29%, hitting $73bn in 2022. As a comparison, the ecommerce market is growing at 13.5% in China and 9% in Australia. Reduction in data prices and more affordable 4G devices will drive further expansion in the ecommerce market, along with wider adoption of mobile payments, Forrester anticipates. This trend is reflected in this survey, which found that not only are India-based companies the most likely of the three geographies to rate their capabilities in technology and data as ‘good’ (Figure 26), but they are also the most likely to be increasing budgets in these two areas over the next 12 months.

8 https://qz.com/1235293/with-amazon-and-flipkart-battling-it-out-indian-e-commerce-is-exploding-and-how/

51%

38%35%

33%

63%

42%44%

49%

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48% 46%

0%

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Technology Data Processes andworkflows

People/skills


https://qz.com/1235293/with-amazon-and-flipkart-battling-it-out-indian-e-commerce-is-exploding-and-how/

https://qz.com/1235293/with-amazon-and-flipkart-battling-it-out-indian-e-commerce-is-exploding-and-how/





The lack of investment in data capabilities is worrying when seen in the context of Figure 29, which shows the pecking order of challenges that companies are facing in their quest to develop best-in-class ecommerce operations. Data integration is the most often cited barrier, with 17% of respondents selecting it. This is closely followed by complexity of business, cited by 15%, and lack of strategy by 14% (Figure 29). It is worth noting that some of these challenges, such as limited understanding of business case, cited by 9% of respondents, and poor understanding of buyer behaviour, cited by 8%, can be solved by implementing a rigorous data strategy.

Figure 29: What is the greatest challenge your organisation faces in trying to develop best-in-class ecommerce capabilities?

Respondents: 493

10%

7%

8%

8%

10%

10%

14%

16%

16%

0% 4% 8% 12% 16% 20%

None of the above

Lack of boardroom buy-in to provideinvestment

Poor understanding of buyer behaviour

Limited understanding of business case

IT blockages

Company culture / lack of co-operation

Lack of strategy

Complexity of business

Data integration





Breaking down the responses by region tells a slightly different story, revealing that complexity of business is seen as the greatest challenge to developing best-in-class ecommerce capabilities in India- and ANZ-based organisations (cited by 20% and 18% of respondents, respectively), while respondents from Southeast Asia are most likely to view data integration as the principal barrier (18%) (Figure 30).

Figure 30: What is the greatest challenge your organisation faces in trying to develop best-in-class ecommerce capabilities? (Regional breakdown)

Respondents: 493

14%

8%

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None of the above




IT blockages


Data integration

Lack of strategy







8. The future: diversified distribution, IOT

and AI As the previous section showed, of the four key areas required for developing best-in-class ecommerce capabilities, businesses across the region are more likely to be increasing their budgets in technology than in data, people and processes. While the ecommerce technology to power existing operations is of vital importance, this section looks at the technologies and trends that B2B organisations should be harnessing to ensure their future success. Distribution is an area where ecommerce is rapidly evolving, and to a degree, the future has already arrived when it comes to the potential of diversified distribution options, for example through dropship vendors, shipping from distribution centres or third-party delivery services. Turning to dropship vendors is an increasingly popular method for distributing goods sold online. Eliminating the need for online retailers to physically hold any stock, the method requires very little – if any – starting capital. With customer orders and shipment details transferred to either the manufacturer, another retailer, or a wholesaler, this method is better for the vendor’s cashflow and reduces any costs associated with shipping the goods to the buyer. According to the survey, the vast majority of responding organisations (73%) are planning to diversify their distribution options (Figure 31). In fact, just 7% of respondents said that they have no plans to diversify their distribution options, with the remaining 20% already having done so.

Figure 31: Are you planning to diversify your distribution options (e.g. ship from

distribution centres, dropship vendors, third-party delivery service)?

Respondents: 366

73%

20%

7%

0%

20%

40%

60%

80%

Yes, we are planning this No, we are alreadydiversified

No, and no plans to dothis





Breaking down the responses by geography reveals a stark difference between Australia / New

Zealand, where businesses are far more likely to have already diversified their distribution

options (40%), and India and Southeast Asia, where respondents are far more likely to be

planning to do so (Figure 32). Just 15% of respondents from Southeast Asia-based organisations

and 11% of those from India-based organisations have already diversified their distribution

options.

Figure 32: Are you planning to diversify your distribution options (e.g. ship from

distribution centres, dropship vendors, third-party delivery service)?

Respondents: 366

This may be a reflection of the relative size of the markets, or how established the means for

distribution is in these geographies. Perhaps unexpectedly, nearly a quarter (23%) of respondents

from Australia and New Zealand say they have no plans to diversify their distribution options.

Of those planning to diversify their distribution options (Figure 33), two-thirds (67%) said that they planned to ship from distribution centres, making it the most popular option among the survey respondents, while the other two options, dropship vendors and third-party delivery service, were cited by 59% and 57% of respondents respectively. There were not any significant regional preferences for how businesses might diversify their distribution options, though respondents from India and Southeast Asia were slightly more likely to select dropship vendors than those in Australia and New Zealand (Figure 34).

0%

11%

89%

4%

15%

81%

23%

40%

37%

0% 20% 40% 60% 80% 100%

No, and no plans to do this

No, we are already diversified

Yes, we are planning this






Figure 33: How are you planning to diversify your distribution options?

Respondents: 366

Methodology note: survey respondents were only asked this question if they said they were planning to diversify distribution options


Respondents: 366

Methodology note: survey respondents were only asked this question if they said they were planning to diversify distribution options

67%

59%

57%

52%

54%

56%

58%

60%

62%

64%

66%

68%

Ship from distributioncentres

Dropship vendors Third-party delivery service

39%

34%

28%

36%

31%33%

38%

30%33%

0%

10%

20%

30%

40%

50%

Ship from distributioncentres

Third-party delivery service Dropship vendors






The Internet of Things can be defined as a network of connected devices that collect and exchange data. As more of these devices join the network, they capture increasing amounts of data, creating new opportunities for B2B organisations to grow and open new revenue streams.9 According to a study by McKinsey and Company,10 B2B applications will account for nearly 70% of the value IoT offers.

According to a Magento article published in 201811, businesses that seize the IoT opportunity can look forward to, among other things: creating stronger customer relationships, as manufacturers gain access to more information about the end user; supply chain efficiencies, as internet-connected equipment and vehicles offer more visibility across the supply chain; and inventory efficiencies, as IoT products can automatically order products as and when they are needed.

The Internet of Things was most often cited as the most exciting technology-related trend for B2B ecommerce, with 20% of respondents selecting it. This was very closely followed by artificial intelligence / machine learning (including chatbots), cited by 19% of businesses. The applications of machine learning in B2B ecommerce are many. Tools powered by machine learning technology can help businesses automate processes including sales and customer support, or assess buyer habits to predict order preferences and quantities.

Figure 35: What do you see as the most exciting technology-related trend for B2B

ecommerce?

Respondents: 496

Insights generated by machine learning also make it possible to generate quotes for customers automatically, or identify which product images are most likely to result in sales, while chatbots can determine a customer’s pain points and recommend a solution without human intervention, according to Magento.

9 https://magento.com/blog/best-practices/how-iot-changing-b2b-business-models 10 https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-internet-of-things-the-value-of-digitizing-the-physical-world 11 https://magento.com/blog/best-practices/how-iot-changing-b2b-business-models

8%

9%

12%

16%

16%

19%

20%

0% 5% 10% 15% 20% 25%

Blockchain

Virtual reality / Augmented reality

Personalisation

Payment solutions

Increased engagement via mobile devices

Artificial intelligence / machine learning(including chatbots)

Internet of Things

https://magento.com/blog/best-practices/how-iot-changing-b2b-business-models

https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-internet-of-things-the-value-of-digitizing-the-physical-world

https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-internet-of-things-the-value-of-digitizing-the-physical-world

https://magento.com/blog/best-practices/how-iot-changing-b2b-business-models





Despite the hype surrounding blockchain and virtual / augmented reality, just 8% and 9% of respondents (respectively) viewed these as the most exciting technology-related trends for ecommerce. There are some subtle differences between what technology-related trends are of the most interest when it comes to geography (Figure 36). For example, India-based respondents are slightly more enthused about the Internet of Things in the context of B2B ecommerce, with 24% of respondents citing this, (compared with 18% of respondents from Australia and New Zealand) and 19% in Southeast Asia. Artificial intelligence and machine learning (including chatbots) is seen as more of an opportunity in India and Australasia, than in Southeast Asia, with 23% of India-based respondents and 24% of ANZ-based respondents viewing it as the most exciting technology-related trend for B2B ecommerce, compared with just 17% of those in Southeast Asia. It is also worth noting that increased engagement via mobile phones was more often cited by respondents based in India and Southeast Asia, where so many online transactions take place on mobile phones. Also, a greater proportion of marketers in Southeast Asia cited payment solutions as the most exciting technology-related trend for B2B ecommerce than in the other two geographies (18%, compared with 12% in India and 11% for ANZ).


ecommerce? (Regional breakdown)

Respondents: 496

5%

9%

12%

18%

9%

24%

23%

10%

8%

18%

17%

11%

19%

17%

8%

9%

11%

14%

16%

18%

24%

0% 5% 10% 15% 20% 25% 30%


Blockchain

Payment solutions


Personalisation

Internet of Things







9. Appendices

9.1 Respondent profiles

Figure 37: In which business function do you work?

Respondents: 530

0%

5%

10%

20%

20%

21%

24%

0% 5% 10% 15% 20% 25% 30%

Other

Content / editorial

Channel / partner

Ecommerce

Analytics

Digital

Marketing





Figure 38: In which country are you based?

Respondents: 528

Figure 39: What best describes your position at your company?

Respondents: 526

1%

10%

11%

12%

12%

13%

13%

14%

15%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Others

Singapore

Australia

New Zealand

Indonesia

Malaysia

India

Thailand

Philippines

5%

11%

13%

16%

24%

32%

0% 5% 10% 15% 20% 25% 30% 35%

Other

Board level / business owner

Senior Director / Director

C-level / SVP / VP / General Manager

Junior Executive / Associate

Manager





Figure 40: In which business sector is your organisation?

Respondents: 526

Figure 41: What is your annual company revenue globally? (US$)

Respondents: 524

7%

3%

4%

4%

5%

7%

11%

15%

19%

25%

0% 5% 10% 15% 20% 25% 30%

Other

Media & entertainment

Telecommunication

Pharma and healthcare

Travel and transport

Food and beverage

Financial services and insurance

Retail

Manufacturing

Technology

41%

21%23%

7%

9%

33%

24%

22%

13%

8%

14%

23%

33%

22%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Less than $50million

$50 million - $99million

$100 million -$499 million

$500 million -$999 million

More than $1billion






Figure 42: When are you planning to launch a transactional ecommerce website?

Respondents: 149

Methodology note: sample includes only companies planning to launch a transactional ecommerce website

35%37%

14% 14%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Within the next sixmonths

Within the nextyear

Within the next twoyears

Don’t know





9.2 Additional charts, including regional breakdowns

Figure 43: What best describes your position at your company? (Regional

breakdown)

Respondents: 526

28%

24%

15%14% 14%

5%

33%

10%

27%

12%11%

6%

32%

29%

9%7%

23%

0%0%

5%

10%

15%

20%

25%

30%

35%

Manager C-level / SVP /VP / General

Manager

JuniorExecutive /Associate

Board level /business

owner

Senior Director/ Director

Other






Figure 44: In which business sector is your organisation? (Regional breakdown)

Respondents: 526

7%

3%

1%

0%

6%

1%

16%

14%

16%

35%

8%

5%

4%

6%

4%

8%

8%

14%

22%

22%

10%

1%

2%

3%

5%

8%

14%

15%

17%

25%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Other

Telecommunication

Media & entertainment

Travel and transport

Pharma and healthcare

Food and beverage

Financial services and insurance

Retail

Manufacturing

Technology






Figure 45: Percentage of revenues generated directly through ecommerce (Regional breakdown)

Respondents: 375

Methodology note: The sample for this question includes only companies with a transactional website for B2B sales

Figure 46: When are you planning to launch a transactional ecommerce website? (Regional breakdown)

Respondents: 149

Methodology note: sample includes only companies planning to launch a transactional ecommerce website

4%

0%

9%

9%

6%

21%

25%

19%

8%

0%

2%

3%

9%

6%

7%

14%

16%

20%

17%

4%

4%

1%

4%

5%

8%

21%

20%

17%

14%

5%

0% 5% 10% 15% 20% 25% 30%

91-100%

81-90%

71-80%

61-70%

51-60%

41-50%

31-40%

21-30%

11-20%

0-10%


17%

0%

25%

58%

13%

15%

40%

31%

14%

11%

43%

32%

0% 10% 20% 30% 40% 50% 60% 70%

Don't know

Withn the next two years

Within the next year

Within the next six months






Figure 47: Compared to a typical consumer retail experience, for example Amazon, how do you think your customers rate your digital customer experience? (Regional breakdown)

Respondents: 350

Figure 48: Extent to which respondents agree with B2B ecommerce-related statements (Australia and New Zealand)

Respondents: 86

42%

53%

6%

0%

36%

50%

12%

2%

29%

49%

17%

5%

0% 10% 20% 30% 40% 50% 60%

Equal with the best B2C experiences

Reasonably advanced compared to typicalB2C retail experiences

Slightly less advanced than typical B2Cretail experiences

Much less advanced than typical B2C retailexperiences


19%13%

27%

52%

47%

44%

17%

19%

20%

9%

15%

7%

3%

7%

1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Our organisation is committedto investment in the B2Becommerce experience

Our company has anomnichannel strategy that

incorporates B2B ecommerce

We understand the indirectimpact of digital channels on

overall sales







Figure 49: Extent to which respondents agree with B2B ecommerce-related statements (Southeast Asia)

Respondents: 229

Figure 50: Extent to which respondents agree with B2B ecommerce-related statements (India)

Respondents: 56

31%23%

39%

44%

45%

40%

11%16%

13%8% 9%

4%6% 7% 4%

0%

20%

40%

60%

80%

100%





overall sales



56%

40%

60%

38%

46%

31%

2%4%

6%6%

4% 4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%





overall sales







Figure 51: Extent to which respondents agree with digital experience-related statements (Australia and New Zealand)

Respondents: 86

Figure 52: Extent to which respondents agree with digital experience-related

statements (Southeast Asia)

Respondents: 229

35%

20%

24%

21%

22%

21%

29%

28%

25%

32%

19%

23%

18%

35%

21%

26%

50%

33%

17%

0% 20% 40% 60% 80% 100%

We believe that professional buyers expecta consumer-grade digital experience from

our website


business



We have mapped the B2B customerjourney and understand the roles played by

different channels



29%

24%

25%

21%

23%

25%

24%

28%

20%

24%

26%

29%

22%

30%

24%

24%

27%

24%

30%

18%

0% 20% 40% 60% 80% 100%


our website


business




different channels







Figure 53: Extent to which respondents agree with digital experience-related

statements (India)

Respondents: 56

Figure 54: ‘We incentivise sales staff for ecommerce referrals’ (Regional breakdown)

Respondents: 372

27%

25%

22%

25%

25%

24%

26%

24%

12%

29%

29%

29%

40%

40%

20%

50%

25%

25%

0% 20% 40% 60% 80% 100%


our website


business




different channels



36%

33%

12%

45%

38%

43%

14%

18%

27%

4%

7%

13%

2%

3%

6%

0% 20% 40% 60% 80% 100%

India

Southeast Asia




Strongly disagree





Figure 55: How do you rate your ecommerce platform for these areas of functionality? (Australia and New Zealand)

Respondents: 86 Figure 56: How do you rate your ecommerce platform for these areas of functionality? (Southeast Asia)

Respondents: 225

29%

34%

35%

37%

38%

40%

43%

43%

44%

45%

47%

51%

60%

51%

51%

55%

51%

44%

50%

49%

41%

47%

45%

42%

10%

15%

14%

8%

10%

16%

7%

8%

15%

8%

8%

7%

0% 20% 40% 60% 80% 100%

Multichannel





Billing / payment integration in multiple…

Merchandising


Call centre support

Order management



Good Okay Poor

45%

46%

48%

48%

49%

50%

50%

51%

54%

55%

57%

59%

50%

48%

50%

44%

46%

46%

47%

48%

44%

40%

39%

39%

5%

6%

2%

8%

5%

4%

3%

2%

2%

4%

4%

2%

0% 20% 40% 60% 80% 100%




Call centre support

Billing / payment integration in multiple currencies

Multichannel


Order management


Merchandising



Good Okay Poor





Figure 57: How do you rate your ecommerce platform for these areas of functionality? (India)

Respondents: 55

Figure 58: When selecting an ecommerce platform, how important are the following types of marketing-related functionality? (Regional breakdown)

Respondents: 511

33%

47%

47%

49%

55%

56%

58%

60%

60%

64%

65%

65%

53%

53%

47%

42%

42%

36%

35%

36%

33%

25%

31%

35%

15%

5%

9%

4%

7%

7%

4%

7%

11%

4%

0%

0% 20% 40% 60% 80% 100%


Multichannel



Call centre support

Merchandising



Billing / payment integration in multiple currencies


Order management


Good Okay Poor

94%93%

92%91%

88%

87%

96%

97%96%

97% 97%

96%

97%

99%

93%

97%

94%

97%

80%

85%

90%

95%

100%

SEO capabilities Multichannelfunctionality

Site search Mobile Personalisation Localisation(languages and

locales)






Figure 59: Who is primarily responsible for the overall customer purchasing experience within your organisation? (Regional breakdown)

Respondents: 511

Figure 60: With which areas of the business operations are your ecommerce

operations successfully integrated? (Regional breakdown)

Respondents: 361

0%

0%

6%

4%

9%

10%

16%

33%

6%

15%

1%

2%

7%

11%

4%

13%

10%

16%

17%

20%

3%

4%

4%

7%

8%

10%

14%

16%

17%

18%

0% 5% 10% 15% 20% 25% 30% 35%

Other

No one

Head of Product

CMO / Marketing Director

CIO / CTO

Head of Digital

CEO

Head of Ecommerce

Head of Sales

Head of Marketing


2%

49%

38%

66%

70%

53%

53%

53%

83%

75%

1%

34%

40%

57%

58%

51%

53%

59%

65%

54%

1%

26%

28%

33%

34%

42%

42%

47%

48%

51%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

None of the above





Financial systems

Marketing

CRM / sales

Customer service

Email






Figure 61: Are you planning to diversify your distribution options? (Regional

breakdown)

Respondents: 366


(Regional breakdown)

Respondents: 366

0%

11%

89%

4%

15%

81%

23%

40%

37%

0% 20% 40% 60% 80% 100%

No, and no plans to do this

No, we are already diversified

Yes, we are planning this


39%

34%

28%

36%

31%33%

38%

30%

33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Ship from stores Third-party delivery service Dropship vendors






Figure 63: Thinking about what you require from an order management system,

how important are the following capabilities? (Australia and New Zealand)

Respondents: 86


how important are the following capabilities? (Southeast Asia)

Respondents: 222

24%

26%

30%

35%

57%

63%

62%

56%

19%

12%

8%

9%

0% 20% 40% 60% 80% 100%






34%

38%

39%

41%

63%

61%

59%

57%

4%

1%

2%

1%

0% 20% 40% 60% 80% 100%











how important are the following capabilities? (India)

Respondents: 54



(Australia and New Zealand)

Respondents: 120

31%

36%

38%

45%

69%

58%

58%

55%

0%

5%

4%

0%

0% 20% 40% 60% 80% 100%






38%

45%

51%

54%

51%

44%

42%

38%

12%

11%

8%

8%

0% 20% 40% 60% 80% 100%

Data

Technology

People/skills


Good Okay Poor







(Southeast Asia)

Respondents: 320



(India)

Respondents: 67

43%

44%

45%

47%

53%

51%

48%

48%

4%

5%

7%

5%

0% 20% 40% 60% 80% 100%

Data

Technology


People/skills

Good Okay Poor

52%

57%

67%

69%

45%

39%

28%

30%

3%

4%

4%

1%

0% 20% 40% 60% 80% 100%


Data

Technology

People/skills

Good Okay Poor





Figure 69: In the context of ecommerce capabilities, what best describes your

budget plans for the next 12 months? (Australia and New Zealand)

Respondents: 120


budget plans for the next 12 months? (Southeast Asia)

Respondents: 320

33%

35%

38%

51%

57%

58%

54%

43%

10%

7%

8%

7%

0% 20% 40% 60% 80% 100%

People/skills


Data

Technology


42%

44%

49%

63%

55%

53%

47%

34%

3%

3%

4%

3%

0% 20% 40% 60% 80% 100%

Data


People/skills

Technology







budget plans for the next 12 months? (India)

Respondents: 67


ecommerce? (Regional breakdown)

Respondents: 496

46%

48%

55%

78%

52%

51%

40%

21%

1%

1%

4%

1%

0% 20% 40% 60% 80% 100%

People/skills


Data

Technology


5%

9%

12%

18%

9%

24%

23%

10%

8%

18%

17%

11%

19%

17%

8%

9%

11%

14%

16%

18%

24%

0% 5% 10% 15% 20% 25% 30%


Blockchain

Payment solutions


Personalisation

Internet of Things







Figure 73: What is the greatest challenge your organisation faces in trying to

develop best-in-class ecommerce capabilities? (Regional breakdown)

Respondents: 493

14%

8%

5%

8%

11%

3%

15%

17%

20%

6%

11%

9%

12%

9%

7%

18%

13%

15%

16%

3%

7%

8%

10%

11%

13%

16%

18%

0% 5% 10% 15% 20% 25%

None of the above




IT blockages


Data integration

Lack of strategy



STATE OF B2B ECOMMERCE IN ANZ, SEA AND INDIA

In collaboration with

September 2018

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