According to Internet Retailer, Asda, the subsidiary of retail giant Walmart and one of the largest grocery stores in United Kingdom, plans to strengthen its ecommerce presence.
Asda is planning to invest about £ 700 million ($1.07 billion) to bolster its ecommerce, as per Internet Retailer. This massive investment will create more than 2500 jobs within ecommerce, supply chain and other few areas.
“By focusing on their needs through accelerating our investment in the technology and infrastructure to make shopping more convenient, customers can shop for what they want when they want it,” said Andy Clarke, Asda CEO.
comScore released new findings on e-commerce spending in the U.S. in the fourth quarter. They were up 14% from the year-ago quarter, reaching about $49.7 billion.
That makes nine quarters in a row for positive year-over-year growth in U.S. e-commerce spending. In fact, that’s five in a row for double digit growth.
E-commerce spending in the U.S. reached a record $161.5 billion for all of 2011, according to the firm. That’s up 13% from 2010. Read more
Online retailers like Amazon and Flipkart are stepping up their activities in India, in just one sign of the category’s increasingly rapid development.
A recent report sponsored by IAMAI, the government agency, stated India’s web audience stood at 120m people at the close of 2011, a reach of roughly 10%, meaning considerable room for growth remains.
The latest figures from IAMAI also suggested that 10m people in India now buy goods on the net and pegged ecommerce revenues at Rs46,520 crore ($9.4bn) last year, a 47% annual improvement.
“Nobody knows exactly how fast it will grow, but access to the internet is changing so quickly, and internet retail will definitely be significant in the next five years,” Raghav Gupta, a principal at Booz & Co, told the Financial Times.
Flipkart is the biggest player in India’s ecommerce segment, and anticipates that its sales should near Rs600 crore in the 2011/12 fiscal year, rising to a forecast Rs5,000 crore in the next two or three years. Read more
The breach of the database containing details of 24 million customers of Amazon-owned online shoe retailer Zappos has once again raised fears over the security of e-commerce.
Concerns over online privacy are also escalating, with millions of customer records exposed in breaches at Sony, Epsilon, Fox, NASA, PBS and the US Inland Revenue Service.
The Zappos breach comes as online shopping is gaining in popularity, driven by the proliferation of smartphones and other mobile devices and supported by trust built up over the past 10 years.
The online retailer was forced to issue a warning to customers that hackers had possibly gained access to personal data, including names, addresses, e-mail addresses, phone numbers and the last four digits of their credit card numbers.
Zappos is concerned about the damage the breach will do to its brand, although security experts say the retailer appears to have followed industry best practice by encrypting credit card data and storing it on a separate system, according to the Financial Times.
Safeguarding customer data
But given the fact that some data was protected, it is unclear why data security was not applied more thoroughly to protect other sensitive personal data, said Mark Bower, data protection expert at Voltage Security.
“Zappos published a commitment to customers to safeguard their data, but without taking the step to data-level security, it will always be at risk,” he said.
Liz Fitzsimons, senior associate at international law firm Eversheds, said the impact of the data breach should be limited by its approach of holding only truncated credit card details and scrambled passwords.
The online retailer has also sought to limit the impact of the breach by requiring customers to reset passwords and urging them to be alert for suspicious activities following the incident.
Increasing risk of cybercrime
“The cyber attack on Zappos indicates the increasing threat criminals pose and the need for organisations to continually update, refresh and review their security arrangements,” said Fitzsimons.
This is required by data legislation which refers to the need to have regard to the state of technological development and its cost to ensure appropriate security applies, considering the type of data involved and the potential harm from security breaches, she said.
“Even though financial resources may be stretched, the regulators will expect security compliance to be continued and maintaining customer confidence and reputation is key in challenging trading conditions,” said Fitzsimons.
Courtesy – Computer Weekly
In order to strengthen its online presence, the retail giant Wal-Mart Stores Inc. has named Neil Ashe as the President and Chief Executive Officer (CEO) of its global eCommerce business, effective immediately.
Ashe will replace the retiring Eduardo Castro-Wright, who will assist the new CEO in the transition process.
Until recently, Ashe served as the president of CBS Interactive, where he was responsible for handling all online properties and the development of innovative ways to distribute programming produced by the media giant and its subsidiaries. Prior to that, Ashe served as the CEO of CNET Networks, initially best known for providing technology-related information, product reviews and price comparisons through CNET.com. Read more
Ecommerce companies reportedly saw a huge surge of traffic over the festive period of 2011, with figures showing that online spending on Christmas Day and Boxing Day escalated above £300 million. However, now the holiday season is over, will e-shopping continue to grow in 2012?
According to Ashish Gupta, senior managing director and co-founder of Helion Ventures, which invests in high growth technology, the success of ecommerce has surged in the past two years alone and businesses have continued to adapt their services to the online consumer market, as well as branch out with existing platforms to cater to those who prefer to spend money via the internet.
Speaking to Forbes India magazine, Mr Gupta said: “In two years, the ecommerce number has moved from nothing to a billion dollars per annum. This is pretty compelling growth. You are seeing real money now.”
He added that in areas of Europe, the US and Latin America, the world of online shopping is thriving and this is expected to remain so throughout 2012 and beyond. However, he also explained that e-commerce in India is still in its early stages and this will be where the largest growth is seen.
“One of the things that you’ll see in 2012 is the separation of the men from the boys as some of them mature and others die. All the companies will feel the heat. Several of them will have to start scaling. The skills they need to scale are different from the skills they needed to enter the fray,” the expert commented. Read more