OMNI-CHANNEL AND ONLINE OPE TRENDS · 2016. 10. 6. · Presentation Blueprint •Background &...

1 © 2015 TRAQLINE – THE STEVENSON COMPANY

WWW.STEVENSONCOMPANY.COM

PRESENTED BY:

ERIC VOYER

VICE PRESIDENT

TRAQLINE – THE STEVENSON COMPANY

OMNI-CHANNEL AND ONLINE OPE TRENDS

GAS / ELECTRIC / BATTERY INDUSTRY TRENDS



OMNI-CHANNEL AND ONLINE OPE TRENDS



Presentation Blueprint

•Background & Sources of Information

•Overall Market Landscape

•Online Landscape

•Consumer Behavior

•Omni-Channel Trends



What is Omni-Channel?



Who we are and how we get the data

THE BACKGROUND



THE STEVENSON COMPANY

ANALYTICS SYNDICATED RESEARCH

CUSTOM RESEARCH

Economic Forecasting

(OPEI, AHAM, Mfrs)

Industry Analysis

TraQline US (2000)

TraQline Services (2005)

TraQline Canada (2005)

Brand/Store Positioning

Satisfaction

Market Segmentation

Brand Extension

Competitive Analysis

New Product Development

Sources of Information



−Quarterly Internet Survey

−600K Respondents Annually

−14 Years of History

−Demographically & Geographically Representative

Survey

−Tools, Appliances, Building Products, Kitchen / Bath Purchases

−All Brands, All Retailers

−Price

−Purchase Behavior

−Demographics

Data Captured

TraQline US Tracks the Consumer Retail Market

Largest Home Improvement tracking survey in US

TRAQLINE US



How We Collect It...

What they purchased

Where they bought

Where they shopped

How they shopped each

1

2

3

4

Bought In Store?

Bought Online?

In Store? Online?

“Other?” Online & In Store?

Feature

Brand



Overall Share Trends

THE LAY OF THE LAND



OPE Products

Line Trimmers 22%

Mower: Walk Behind 21

Power Leaf Blower 13

Chain Saws 11

Pressure Washer 7

Mower: Riding Mower 7

Hedge Trimmer 5

Snow Thrower 5

Power Edger 4

Roto-Tiller/Cultivator 2

Cordless Shears 2

Chipper/Shredder 1

OPE Product Mix

2%

4% 11%

7%

13%

7%

5%

22% 2%

1%

21%

5%

Source: TraQline Units – Q1’14-Q4’14

– How They Contribute



Total OPE Share Trends

23

21

16

10 8

4

2 3

1 0

5

10

15

20

25

4Q End Dec 2010 4Q End Dec 2011 4Q End Dec 2012 4Q End Dec 2013 4Q End Dec 2014

Source: TraQline Units



Online Share Trends

THE LAY OF THE LAND



OPE Online Share

15

28

13

8

6

0.4 1

9

0.2 0

5

10

15

20

25

30


$

Source: TraQline Units



OPE % Online Mix

(online sales as % of units sold)

16 15 13

10 10

6 4 3 2

0

5

10

15

20

25

30 100

95

100




Selected TraQline Categories

Automotive Tires, Batt., Jack

Computers/Communication

Exercise Equip.

General CE

Hand Tools and Access.

Lawn & Garden

Major Appliances

Power Tools & Access.

How does OPE Stack Up to other Categories?

What is the #1 shop online category?



Online Share Trends

Shop Online

Bought Online

Shop-to-Buy Conversion

Exercise Equip. 67 39 58%

Computers / Communication 62 39 63%

General CE 52 27 52%

Major Appliances 44 11 25%

Outdoor Power Equip 40 16 40%

Power Tools & Access. 27 13 48%

Automotive Tires, Batt., Jack 21 4 19%

Hand Tools and Access. 13 7 54%




Total Share Online Share

10

Total

Online vs. Total OPE Share

.2

.4 3

1

6

8 21

13

15 23

28

9

16

10

4

8

2

1




Shopping Activity and Ship to Store

ONLINE BEHAVIORS



Online Activity – OPE

Compared prices 67%

Compared product features 52

Product research 50

Read consumers reviews 49

Checked for promotions or sales 43

Read industry expert reviews 19

Searched for a store location 19

Researched policies on warranties/rebates 18

Searched for a website to shop 16

40% of buyers

All OPE Buyers are asked to mark all activities they did online



All Categories - Ship to Store

-10 0 10 20 30 40

Automotive Tires, Batt., Jack

Outdoor Power Equip

Hand Tools & Access.

Major Appliances

Sports Equipment

PTools & Access.

General CE

Computers /Communication

% points diff from mean (11%)

More Ship to Store

Less Ship to Store

Base: Customers who bought online (units)



OPE - Ship to Store

-10 -5 0 5 10 15

Mower: Riding/Lawn/Garden Tractor

Mower: Walk Behind

Chipper/Shredder

Power Edgers

Cordless Shears

Snow Thrower

Hedge Trimmer

Line Trimmers

Power Leaf Blower

Pressure Washer

Roto-Tiller/Cultivator

Chain Saws

% points diff from mean (21%)

More Ship to Store

Less Ship to Store

Base: Customers who bought OPE online (units)



Average Selling Price Online vs. Brick

ONLINE BEHAVIORS



0

50

100

150

200

250

300

350

400

450


Ave

rag

e P

rice

Pa

id

SHOP Online DID NOT SHOP Online

Shopping: Average Price Paid When

Shopping for OPE Online

$57



0

50

100

150

200

250

300

350

400

450


Ave

rag

e P

rice

Pa

id

BOUGHT Retail BOUGHT Online

Buying: Average Price Paid when

Buying OPE Online

$77



Higher APP Shop / Lower APP Buy?

Higher APP When Shopping

Online

Lower APP When Buying

Online

More Research Online but

buy In Store for High Price

Products



Online vs. Brick ASP Difference

300 200 100 0 100 200

Kitchen & Bath Improvement

Furniture/Home Accessories

Outdoor Power Equip

Consumer Electronics

Major Appliances

Sports Equipment

Home Improvement Products

Cleaning Chems

Hand Tools / Accessories

Building/Plumbing/Electric/Safety

Small Appliances

Computers/Communication/Home Office

Power Tools & Accessories

Automotive

Higher in Store

Outdoor Power Equip

Higher Online

Difference in ASP



Shop Online, Buy Online/Shop Store, Buy Online, etc.

OMNI-CHANNEL CROSS SHOP



&

Shopped OPE XYZ...

X%

...Online Only ...In a Retail Store Only ...Both Online & In Store

XYZ – Online Other Retailer – Online

Other Retailer – Brick XYZ – Brick

B

O

U

G

H

T

Close Rates (BOUGHT):

Other Retailer – Other

XYZ Co.

When Shopping XYZ, what % shopped online only?

When Shopping XYZ, what % shopped both online & brick?

When Shopping XYZ, what % shopped brick only?

Where did the above shoppers end up buying their OPE Product?

Note: A small % may shop on some other channel



10

55

7

28

& 16%

Shopped OPE Home Depot...

13% 71%

38%


32

1

64

3

Home Depot – Online Other Retailer – Online

Other Retailer – Brick Home Depot – Brick Other Retailer – Other

34 27

37 2

B

O

U

G

H

T




8

56 8

28

& 17%

Shopped OPE Lowes...

11% 72%

37%


17 34

47

2 35

1

61

3

Lowe’s – Online Other Retailer – Online

Other Retailer – Brick Lowe’s – Brick

B

O

U

G

H

T


Other Retailer – Other



15

5

65

4

16

& 15%

Shopped OPE Sears...

15% 70%

22%


48 24

27

1

21

1

77 1

Sears – Online Other Retailer – Online

Other Retailer – Brick Sears – Brick Other Retailer – Other

B

O

U

G

H

T




1

9

32

& 11%

Shopped OPE Walmart...

12% 77%

15%


35

30

32

3


37

1

59

3

Walmart – Online Other Retailer – Online

Other Retailer – Brick Walmart – Brick Other Retailer – Other

B

O

U

G

H

T

44

14



& 0%

Shopped OPE Amazon...

100% 0%

6%


77 11

12

Amazon – Online Other Retailer – Online

Other Retailer – Brick

0% 0%

B

O

U

G

H

T




51

4 9

35

1

& 11%

Shopped OPE Menards...

8% 81%

4%


11 35

54

32

63

5

Menards – Online

Menards – Brick

Other Retailer – Online

Other Retailer – Brick Other Retailer – Other

B

O

U

G

H

T




34 10 Online

55 64 Brick

17 8 Online

56 61 Brick

48 15 Online

65 77 Brick

35 14 Online

44 59 Brick

11 4 Online

51 63 Brick

Omni-Channel Close Summary

&

38%

Shop

37%

Shop

22%

Shop

15%

Shop

4%

Shop

% Shop

Store Online Only Online & Brick Brick Only Channel Bought?

55

65

44

51

56



Key Takeaways

• Understand that just because people don’t buy online, they may be shopping there

• Expect continued emphasis on online

– Microsites, product reviews, pricing / sales

• Help get people into the store for the close

• Embrace other channels not captured here

– YouTube, twitter, print

• Manage the data across all channels, make the

experience seamless/consistent



OPE Products

Line Trimmers 22%

Mower: Walk Behind 21

Power Leaf Blower 13

Chain Saws 11

Pressure Washer 7

Hedge Trimmer 5

Snow Thrower 5

Power Edger 4

Roto-Tiller/Cultivator 2

Chipper/Shredder 1

OPE Product Mix

4%

11%

13%

7%

5%

22% 2%

1%

21%

5%


– How They Contribute

*

*

*

* No battery option available



Hypotheses:

1. Gas is constant: Mix of Battery sales are increasing

at the expense of electric, not gas

2. Established brands are losing share

as smaller brands proliferate

3. Online sales are hurting larger

brands as a whole

4. As new technologies emerge,

electric battery prices are falling



Is Electric Leading the Charge?

Gas is constant: Mix of

Battery sales are increasing

at the expense of electric,

not gas.

Hypothesis 1:



False.

Gains are primarily coming

from both electric and gas,

except when battery isn’t an option.

Is Electric Leading the Charge?

Answer:



56 56 56

54 53

42

44

46

48

50

52

54

56

58

2010 2011 2012 2013 2014

% G

as

So

ld

Gas Powered – Losing Steam?

2 Year Change:

3 points

Gas Powered

Change in Mix



3 6 4

-6 -4 -3

Is Electric Leading the Charge? % Point Mix Change 2014 vs. 2012

1

7

5

0

7 6

2 2 3

Line

Trimmer

Walk-Behind

Mower

Power

Edger

Power

Leaf Blower Chain Saw Roto-Tiller

Hedge

Trimmer

-4 -2

-3 -1 -2

-10

-1 -1

-3 -5

-0 -2

Pressure Washer Chipper Snow Thrower



53%

32%

15%

Gas / Electric / Battery Mix 2014

Gas

Electric

Battery

Note: Battery option not available to Pressure Washer, Snow Thrower, Chipper Shredder

(15% of Units Sold)



Established brands are losing

share as smaller (import)

brands proliferate.

Hypothesis 2:

Disintermediation and Share Distribution



True.

In aggregate, the top 5

brands have lost some hold

on the market.


Answer:



36

55

26

56 55

66

31

52

47

56

-25

-15

-5

5

15

25

35

45

55

65

75

-16 -12 -11 -9

-6 -6 -6 -4 -4

0

-6 -3 -5

-2 -4 -2 -4 -3 -3 3

5 Year Change 2 Year Change

Roto-

Tiller

Chain

Saw

Chipper/

Shredder

Snow

Thrower

Power

Edger

Hedge

Trimmer

Pressure

Washer

Line

Trimmer

Walk-

Behind

Mower

Power

Leaf

Blower

2014 Top 5 Brand % Share

Disintermediation and Dispersion Total Change in Top 5 Brands’ Share (Units):



Online sales are hurting

larger brands as a whole.

Hypothesis 3:




True.

The success of the online

channel has impacted the

top 5 brands more than

brick and mortar alone.


Answer:



53 49

31

54 51

62

41

67

44

63

-25

-15

-5

5

15

25

35

45

55

65

75

-19 -16

-11

-16

-23

-10

-1

-3

-10

-5

-13

-7

-16

-8

-17 -16

-1 -3 -5 -1


Roto-

Tiller

Chain

Saw

Chipper/

Shredder

Snow

Thrower

Power

Edger

Hedge

Trimmer

Pressure

Washer

Line

Trimmer

Walk-

Behind

Mower

Power

Leaf

Blower

2014 Top 5 Online Brand % Share

Disintermediation and Share Distribution ONLINE: Total Change in Top 5 Brand Share (Units):



Increased

Disintermediation

& Brand

Distribution

Increasing

share for

online

channels

Greater

online share

decline for

top brands

Increased Disintermediation and Brand Distribution



68 72

77

71 74

78

71 71

80 76

-5

5

15

25

35

45

55

65

75

85

2 3

14

1 6 4

13

8

2

9

-1

3 6

0 -4 1

10

1 -1 -2


Roto-

Tiller

Chain

Saw

Chipper/

Shredder

Snow

Thrower

Power

Edger

Hedge

Trimmer

Pressure

Washer

Line

Trimmer

Walk-

Behind

Mower

Power

Leaf

Blower

2014 Top 5 Online Retailer % Share

Disintermediation and Brand Distribution ONLINE: Total Change in Top 5 Retailer Share (Units):



As new technologies emerge

and production efficiencies

improve, electric and battery

prices are falling.

Hypothesis 4:

Change in the Charge



False.

On average, all segments’ price points have stayed the

same or have seen a slight

increase.

Change in the Charge

Answer:



$183

$248

$99 $114

$0

$50

$100

$150

$200

$250

$300

2010 2011 2012 2013 2014

Total Industry

Total ASP Change – All Categories

No Change in the Charge



So...What’s the charge for all this?

ASP Change by Fuel Type

2014 vs. 2012

Gas Electric Battery

Line Trimmer 2% 15% -5%

Walk-Behind Mower 0 6% 7%

Power Edger 5% 9% -1%

Power Leaf Blower 6% 4% 7%

Chain Saw 0 3% 5%

Roto Tiller -4% -1% -3%

Hedge Trimmer -17% 9% 7%

Pressure Washer -3% 5%

Chipper/Shredder -28% -67%

Snow Thrower 1% 6%



REVIEW




Hypotheses:

1. Gas is constant: Mix of Battery sales are increasing

at the expense of electric, not gas

2. Established brands are losing share

as smaller brands proliferate

3. Online sales are hurting larger

brands as a whole

4. As new technologies emerge,

electric battery prices are falling

Battery sales are increasing and it is at the expense

of both Gas and Electric segments

On average, all segments’ price points have stayed the same or have seen a slight increase.



Key Takeaways

• Gas is declining, but not at an alarming rate.

Invest early in battery technology where

appropriate.

• Smaller brands are gaining share. This is a

threat for most mfrs, but can be good news for

subbrands and those manufacturers that have

strong online distribution.

• Online distribution, marketplaces, aggressive

pricing are necessary, but so are microsites and

ways to educate the consumer. Engage and

educate.



Eric R. Voyer Vice President

The Stevenson Company (w) 502-271-5267

[email protected]

@tscericv

For questions or more information about the

TraQline suite of products, including TraQline

US or Canada, please contact:

mailto:[email protected]

http://www.linkedin.com/in/ericvoyer

OMNI-CHANNEL AND ONLINE OPE TRENDS · 2016. 10. 6. · Presentation Blueprint •Background &...

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Transcript of OMNI-CHANNEL AND ONLINE OPE TRENDS · 2016. 10. 6. · Presentation Blueprint •Background &...