1. 1. 1 Decoding todays everywhere shopper August 2013
2. 2. 2 Online survey of diverse shoppers across FMCG & durables Trending since 2009 Now 14 countries (n=600 per country) Broad Foundation Of Shopper Attitudes And Behavioral Trends o USA o Brazil o Chile o Mexico o Netherlands o Belgium o Austria o Russia o Czech Republic o Bulgaria o Romania o China o Korea o Australia Emerging, global shopper insights reshaping the path to purchase
3. 3. 3 Smartphones still more active in-store, but shoppers seems more comfortable transacting purchases via tablet Source: GfK Futurebuy, 2013, all country average Tablets Surpassed Smartphones For Shopping Outside The Store % shoppers engaging in shopping activity (all country average) IN STORE Find products Find best price Check product reviews Purchase product OUT of STORE Find products Find best price Check product reviews Purchase product 33% 38% 40% 44% 19% 24% 33% 28% 42% 42% 47% 50% 17% 21% 21% 21% Tablet Smartphone
4. 4. 4 Source: GfK Futurebuy, 2013 China Rises Above Diverse Array Of Top Tablet Shopping Markets Tablet penetration China % Tablet owners shopping on tablet Tablet penetration Brazil Netherlands Mexico United States Korea
5. 5. 5 Food/Bev, OTC and household categories still predominantly in-store Bigger ticket categories drive more online activity Source: GfK Futurebuy 2013 Omni-Channel Shopping Now Commonplace 14% 15% 20% 26% 31% 38% 43% 52% 57% 58% 66% 70% % shoppers reporting omni-channel behavior (US) Cleaning OTCs Food & Beverage Lawn & Garden Beauty & Personal Home Improvement Auto Mobile Devices Home Appliances Apparel Toys Consumer Electronics Cross-category average: 37%
6. 6. 6 Source: Futurebuy, 2013 Omni-Channel Just Emerging In Food/Beverage Except In APAC Food/Bev % shopping both online & in-store 46% 51% 15% Netherlands Austria Belgium Czech Republic Bulgaria Romania Mexico Chile Russia Brazil US Australia China Korea All country average Comparable to Consumer Electronics levels!
7. 7. 7 Source: GfK Global Audit, 2013 Virtual Subway Grocery Market Click arrow to play video China
8. 8. 8 Peapod Turns The Truck Into A Store US
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10. 10. 10 (% agree/strongly agree) Source: Futurebuy, 2013 Retailer Loyalty Universally Eroding plummeting softening I am now less loyal to any one retailer because I shop around more to find the best value Belgium Brazil Chile Russia Austria Czech Republic United States
11. 11. 11 Mobile payment gaining momentum; Google Wallet awareness nearly doubling Showrooming Activities Sharply On The Rise % Smartphone Shoppers Reporting Activity In Past 6 Months (US) Showrooming 22% Source: GfK Futurebuy 2013, US 37% Saw product in store then purchased on phone elsewhere UP from 22% (2012) Friendly Showrooming 31% Saw product in store & purchased on phone from same stores site Mobile Wallet Fully Digital 44% aware of Google Wallet Saw product in store & used Mobile wallet to purchase in store 33%Saw product on phone & purchased on phone without store visit.
12. 12. 12 Social Retail Experience Redefines Boundaries Germany
13. 13. 13 Spaaza My Price Loyalty App
14. 14. 14 Shopping for jeans through in-store mobile app phone is your remote control Makes experience fast, easy, fun for tech savvy customers Hointer How it works: 1. Download stores app 2. Scan items to try-on & select size 3. You are assigned a dressing room 4. Clothes are waiting there 5. Toss rejects down shoot in dressing room 6. Additional requests show up within 10sec 7. Fitted right away if alterations (free) 8. Mobile payment (associate device) 9. Email is mailed, no paper 10.Sales associate on hand to help
15. 15. 15 RFID chips embedded in select items that will start short videos on in-store mirrors/ screens when item is in close proximity Burberry, UK Digital Signage: RFID The only weakness of all this mobile tech is it depends upon shopper participation
16. 16. 16 Cell Tower Geolocation Data Enables Profiling And Tracking Of All Shoppers, Not Just App-Downloaders Mobile Providers 3rd Party Consumer Data AssetsMobile Information De-identified opt-in mobile participants provide linkage variables to project to entire population within a market. Data Feed, Tools and Applications
17. 17. 17 Features Compare your site against competition to evaluate shopper traffic and conversion over time down to the hour Utilize updated shopper traffic flow within your defined shop trade area Find out which neighborhoods your shoppers come from Independent verification of relative store traffic in sites and shops you define Have confidence in observed, rather than reported, customer behavior See census-level information about your shopper clusters
18. 18. 18 Applications Location-based tracking is a dynamic new product that will change the way you think about retail. Forever. Whos visiting your store? Where do they come from? How often do they visit? Are they your target demographics? And how does your retail space compare with the competition? Using de-identified and aggregated cell tower data, location-based tools provide the answers to these questions and more -- giving you the ability to connect with your customers movements as they go in and out of your shopping area, by the hour, over time.
19. 19. 19 Benefits Target areas for shopper activation Pinpoint locations for consumer marketing and promotions Optimize leaflet distribution areas based on actual catchment areas Determine conversion (footfall) Install bonus models based on actual potential Evaluate your/competitive retail network performance Assess visitor frequency at prospective new retail locations Adjust pricing for (digital) billboards according to (changing) frequencies
20. 20. 20 The Next POS: Implications And Success Criteria For Mobile Marketers SUCCESS CRITERIA IMPLICATIONS Appending Anonymizing Aggregating Applications Commodity Data Omnipresent Application dependent Profit will be in the application
21. 21. 21 THANK YOU Bill Romania +1 203 571 1461 Bill.Romania@gfk.com
22. 22. 22 Source: GfK Futurebuy 2013, US Tablet Shopping Expanding Faster Than Smartphones, Especially Among Older Shoppers Change in device used to shop in past 6 months (points vs. YAG US) +12 +19 +7 +8 +2 18-24 25-34 35-49 50-64 65+ +9 +23 +11 +14 +10 18-24 25-34 35-49 50-64 65+