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Global Digital Economy - The Buoyant E-Commerce and M-Commerce Markets

Global Digital Economy - The Buoyant E-Commerce and M-Commerce Markets

Industry conditions create perfect recipe for e-commerce and m-commerce to thrive

The e-commerce and m-commerce sectors must represent one of the most innovative and rapidly evolving sectors worldwide; with the speed that new services, features and companies appear (and disappear) quite a spectacle to observe.

Recent industry and economic conditions have been a challenge to the telecoms operators – however in contrast these same industry conditions have provided the perfect recipe for digital e-commerce and m-commerce to thrive. From the rise of Over-The-Top (OTT) services and app stores offering more digital channels for e-retailers to reach audiences; to the growth of smart phones and improved infrastructure – all mixed with consumers willingness to seek cheaper and broader retail options; the e-retail sector is finally coming into its own.

Demonstrating this buoyancy, in 2013 well over $1 trillion will be spent worldwide. E-commerce offers more than just cheaper alternatives for consumers; it provides a larger pool of products stretching beyond geographical boundaries; the ability to browse extensively, compare prices and shop from home. However while it is B2C e-commerce that seems to attract much of the global media attention; it is important to acknowledge that it is actually B2B spending that holds the largest market share of e-commerce spending with over $12 trillion spent worldwide in 2012.

The rising popularity of smart phones and uptake of tablets, along with improved mobile infrastructure has been a key driver to the rise of mobile commerce. Mobile commerce is one of the hottest sectors right now and it is gaining importance for a wide range of industries, including telecommunications, IT, finance, retail and the media, as well as for end-users. It works best in those areas where it can emphasise the core virtue of mobile networks – convenience. The enormous success of smart phones is linked to the large range of available apps and increasingly commercial models are being linked to these apps - which will result in further spectacular growth in m-commerce.

The Mobile Location-Based Services (MLBS) sector has evolved and the full potential of this technology is starting to be revealed. Advertising, travel, weather, vehicle tracking and accessing local business information are just of the other applications for LBS. The sector will continue to evolve as handsets with smarter capabilities, new apps and user interfaces permeate the market. This technology will also be included in the broader concept of The Internet of Things and Machine-to-Machine (M2M) developments.

It has become clear that OTT is ‘the new normal’ for the telecoms industry and these services are viewed as a substantial threat by the traditional network operators. The companies offering them are also perceived to be getting a free lunch over their networks – the European telcos in particular are calling for international regulation. This in essence is the same argument as the one the bricks-and-mortar retailers are making when they complain about online shopping and ask their governments for tax increases to address the problem. This would be detrimental to the digital economy which is driving the desperately needed innovations and new jobs essential for countries to recover from the global economic downturn.

BuddeComm’s new report, Global Digital Economy – The Buoyant E-Commerce and M-Commerce Markets, provides important insights into how the telecoms industry transformation and growth of Over-The-Top (OTT) services has both impacted upon the digital economy and the telcos. This unique report includes information and statistics on the global e-commerce, e-payments and m-commerce markets; mobile location based services and apps based on entertainment. In addition the report provides insights and statistics on the global digital advertising sector which provides a valuable source of revenue to many of those operating in the online sector. Insightful regional overviews written by BuddeComm’s Senior Analysts are provided for North America, Europe, Africa, Middle East, Latin America and Asia Pacific.

Examples of key insights:

Demonstrating the innovation occurring in this sector; in September 2013 PayPal launched its Beacon service which utilises Bluetooth technology to allow a shopper to complete an in-store purchase without having to physically open the PayPal app.

Sending Person-to-Person (P2P) payments via email has become a hot area in 2013 with both Google (Gmail) and Square (Square Cash) entering this sector.

Mobile Location Based Advertising (LBA) is a key area for development with predictions it will account for over 30% of the mobile advertising sector by 2017.

The digital entertainment market is now worth billions of dollars in revenue and is driven by the growing uptake of smart phones and touchscreen tablets.

Banks finally seem to be embracing the new digital environment and understand that they too will have to change in order to play a key role. An emerging driving force is social banking.

Singapore, Hong Kong, Japan, South Korea and Australia are just some of the countries in Asia Pacific which have embraced online spending and there is room for much growth ahead. It has also become recognised that China and India offer enormous potential in the future.

Competition from the e-tailers and e-marketplaces is greater than ever in Australia, due to the strong Australian dollar, growing confidence in using online payments and the ease of setting up an online store. In the New Zealand sector Near Field Communications (NFC) payments are popular.

The Middle Eastern e-commerce sector is expected to grow by a third by 2015.

In the USA the mobile sector is increasingly driving traffic to e-commerce sites. Across Canada the most common types of online orders are for travel services, entertainment, books and magazines, clothing, jewellery and accessories.

Europe has seen m-payments stimulated by a growing range of specialised mobile money offerings.

During the last two to three years the Latin American region has become one of the main growth areas for e-commerce globally.

In Africa’s most advanced markets, m-commerce, mobile content, applications and media have reached a level of development that is beginning to foster an associated advertising and marketing industry.

Data in this report is the latest available at the time of preparation and may not be for the current year


  • EXECUTIVE SUMMARY
  • INDUSTRY TRANSFORMATION AND THE DIGITAL ECONOMY
    • TRANSFORMING THE TELECOMS INDUSTRY
      • Telcos still ignoring industry transformation
      • The rapidly shrinking traditional telecoms market
    • TELCOS HAVE ALREADY LOST THE CURRENT OTT BATTLE
      • Infrastructure investment models are stuck
      • Is the WCIT indeed wicked?
    • THE DIGITAL BUSINESS BUZZWORD IS ALSO `TRANSFORMATION'
    • WHAT WILL BE DRIVING THESE NEW INVESTMENTS?
      • It is not about speed - it's about `big data'
    • HOT SECTORS FOR OTT SERVICES
    • HOW TO MOVE FORWARD?
  • E-COMMERCE, E-PAYMENTS AND M-COMMERCE MARKETS
    • GLOBAL E-COMMERCE MARKET
      • The digital commerce evolution
      • Global e-commerce market statistics
        • Table Global e-commerce spending - 2011 - 2013
      • Leading B2C e-commerce players
        • Table Visitors to top web properties worldwide - 2013
    • KEY E-COMMERCE INSIGHTS
      • Underlying trends
      • E-payments
      • Content Delivery Networks (CDNs)
      • Cloud computing and e-commerce
      • Security concerns
    • INTERNET BANKING (E-BANKING)
      • The changing face of e-banking
    • GLOBAL M-COMMERCE MARKET
      • Table Global m-commerce revenue - 2013; 2015
      • Table Global app store revenue - 2010; 2012
      • Mobile devices rise in popularity
        • Table Global smart phone share of handset market - 2009 - 2012
      • M-commerce buzzword: SoLoMo
    • KEY M-COMMERCE INSIGHTS
      • NFC and M-Wallets
      • Mobile payments apps
      • M-banking
      • Mobile money transfer services
      • Mobile auctions
      • Mobile location shopping and marketing
      • Mobile vouchers, coupons and loyalty cards
      • Mobile advertising
  • MOBILE LOCATION BASED SERVICES
    • LOCATION BECOMES A NEW REVENUE STREAM
      • GPS
      • Geotagging
    • MOBILE LOCATION BASED SERVICES (MLBS) INTRODUCTION
      • MLBS market overview
        • Table Worldwide MLBS subscribers - 2008 - 2014
        • Table Worldwide MLBS revenue - 2007; 2009; 2011; 2013; 2015
        • Table Historical - regional MLBS revenue - 2009
      • Mobile Location Based Gaming
      • Mobile Location Based Dating
      • Mobile Location Based Advertising (MLBA)
      • Vehicle tracking
      • People and animal tracking
    • THE INTERNET OF THINGS AND M2M - BEHAVIOURAL ATTITUDINAL GEOLOCATION
  • DIGITAL AND MOBILE ENTERTAINMENT MEDIA
    • APPS, ENTERTAINMENT, SOCIAL NETWORKS AND GAMING
      • Portals or Apps?
      • Mobile apps insights
        • Table Global leading app store competitors
      • Social networks
        • Table Time spent on online in social networks by top 10 countries - 2010; 2011; 2012
      • Mobile photo-messaging
      • Online and mobile gaming
      • Online and mobile gambling
        • Table Global wagers via mobile gambling - 2011; 2017
      • Online and mobile music
        • Table Global digital music revenue - 2007 - 2013
      • Brief case studies
        • Table Top 10 countries using Facebook - 2012
        • Table Top 5 countries using LinkedIn - 2013
      • Advertising - a key revenue source
        • Table Worldwide in-game advertising spending - 2010; 2013
        • Table Worldwide social network advertising spending - 2008 - 2016
        • Table USA social network advertising spending - 2008 - 2009
    • E-BOOK AND NEWSPAPER PUBLISHING IN THE DIGITAL ERA
      • Embracing the new digital era
      • Transforming the book industry
        • Table Growth of e-reader sales - 2009 - 2013
      • Customer service is king
      • Promoting national culture
      • Industry protectionism will fail
      • More power to the author
      • E-publishers are very different beasts
      • The challenging newspaper publishing sector
        • Table Most popular formats for receiving news in the USA - 2010; 2012
      • The future of mass media news
      • Conclusion: both industries need a digital transformation
  • ONLINE AND MOBILE ADVERTISING
    • MARKET SUMMARY
      • Table Global advertising spending- all mediums - 2010 - 2014
      • Table Top ten countries by advertising spend per capita - 2010
      • Table Global online advertising spend - 2008 - 2013
      • Table Global advertising spending market share by major types - 2012
      • Table Examples of popular forms of online advertising
    • MARKET INSIGHTS
      • Consumers will lead the way
      • Changes in internet advertising
      • Mobile advertising
      • Mobile Location-Based Advertising (MLBA)
      • TV advertising
      • Digital ad exchanges
    • INTERNET MEDIA COMPANIES - SELECTED INSIGHTS
      • Google - Advertising a main strategic drivers
        • Table Google total advertising revenue - 2006 - 2012
      • Yahoo - profit up, sales down as it attempts to lure Google and Facebook users
      • Hulu - mostly positives for Hulu
      • Facebook - prepared to operate in different markets
        • Table Facebook total and mobile advertising revenue - Q2 2013
    • KEY ONLINE ADVERTISING CATEGORIES
      • In-game advertising
        • Table Global in-game advertising spending - 2010; 2013
      • Social media advertising
        • Table Worldwide social network advertising spending - 2008 - 2016
        • Table USA social network advertising spending - 2008 - 2009
      • Online video advertising
      • Online search advertising
        • Table US online advertising revenues - top four portals - 2008 - 2011
    • A MULTI-SCREEN APPROACH GAINS ATTENTION
    • CONSUMERS REACT TO PRIVACY MISUSE BY INTERNET COMPANIES
  • REGIONAL OVERVIEWS
    • CANADA
    • USA
      • E-commerce, m-commerce and online advertising
        • Table Online retail sales - 2003 - 2013
    • LATIN AMERICA
      • Mexico
      • Argentina
        • Table Argentina - B2C e-commerce spending - 2005 - 2013
      • Brazil
        • Table Brazil - B2C e-commerce spending - 2005 - 2013
    • EUROPE
      • M-commerce
      • Mobile payments
    • AFRICA
      • The mobile money revolution
        • Table Kenya: M-Pesa users and revenue - 2008 - 2013
      • Social media
    • MIDDLE EAST
      • Jordan
      • Lebanon
      • Oman
      • Qatar
      • Saudi Arabia
      • Turkey
      • United Arab Emirates
      • Israel
    • ASIA
      • China
        • Table China - mobile internet subscribers and annual change - 2006 - 2013
        • Table China Mobile - mobile internet use - 2010 - 2013
        • Table China - Utilisation rate and no. of users of various network activities - 2009 - 2011
        • Table China - estimated value of B2C e-commerce market - 2005 - 2013
        • Table China - estimated value of C2C e-commerce market - 2005 - 2013
        • Table China's online retail market - revenue and customers - 2003 - 2012
        • Table China - online banking users and utilisation rate - 2007 - 2012
      • India
      • Japan
      • Malaysia
      • Singapore
      • South Korea
        • Table South Korea - internet usage rates by service- 2009 - 2011
        • Table South Korea - main purpose of using the internet - 2009 - 2011
        • Table South Korea - e-commerce volumes - 2001 - 2011
        • Table South Korea - e-commerce volume by transaction type - 2001 - 2011
        • Table South Korea - internet banking service subscribers - 2001 - 2010
        • Table South Korea - financial services by delivery channel - 2005 - 2010
        • Table South Korea - online stock trading customers - 2004 - 2007
        • Table South Korea - purchase of items by internet shopping - 2010
        • Table South Korea - mobile banking service subscribers - 2003 - 2010
    • PACIFIC REGION
      • Australian e-commerce market
        • Table Australia - estimated retail trade revenue online and traditional - by industry - 2012
      • Market Surveys and statistics for Australia
        • Table Overview of online shopping activities by Australians - 2012
      • Key players in Australia
      • Online auctions in Australia
        • Table eBay members in Australia - 1999; 2003 - 2004; 2006; 2009 - 2012
      • The Australian coupon Market
      • Australia e-banking and m-banking
        • Table Popularity of contactless payments using smartphones - 2011 - 2012
      • Australia m-commerce market
      • New Zealand

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