futurebuy 2015 - gfk.com€¦ · futurebuy 2015: use of digital in the shopping journey ......

1 © GfK April 18, 2016 | Futurebuy APAC Webinar

FUTUREBUY 2015: Use of digital in the shopping journey

in APAC

Norrelle Goldring, March 2016


GfK Futurebuy 2015 Overview

APAC countries are Australia, China, India, Japan, Korea

25 Countries … 15 Categories …

Australia

Canada

Mexico

US Romania

Germany Poland

Spain

France

Russia

Bulgaria

Columbia

Argentina

Brazil

Korea China Japan

Futurebuy is GfK’s proprietary survey of shopper attitudes and behaviours- run annually since

2009

FMCG Consumer Durables

Beauty and Personal Care

Packaged Food/Bev

Household Washing and

Cleaning products

OTC Healthcare

Consumer Electronics

Mobile Phones

Home Appliances

Services Specialty Retail

Financial Services

Healthcare Services

Meals at Restaurant

Automotive

Toys

Apparel

Home Improvement

Home and Garden

20

minute

Online Survey N = 1000 per country (18+)


Definitions for this survey

By ‘shopping’ we mean:

The entire process of

browsing, comparison shopping,

information gathering, or the

actual purchase of products and

services.

By ‘omnichannel’ we mean”

Shopping process across

both online and physical store

channels.


Agenda

1

2

3

Omnichannel shopping expectations and behaviours

The role of mobile devices in shopping

Shopping tasks, touchpoints and influences

4 Spotlight on payment methods


Omnichannel shopping expectations,

behaviours


Consumers can access multiple choices and walk away when price, choice, service

or delivery fall short.

Shoppers expectations are rising, businesses must find

new routes to connect and influence

% Australia China India Japan Korea

I am now less loyal to any one brand as I need to shop around more to find the best value

63 64 76 39 45

Retailers, advertisers, and brands have less influence on my purchase decisions than ever before

47 51 66 34 40

My social networks have become as important as other information sources for me to make the best product choices

31 64 70 23 43


Shoppers desire to move towards online, particularly in India and

China

% Shoppers Agreeing (T2B) with Statement

Q3A: Below are different statements about shopping. Please indicate how much you agree or disagree with each as it relates to your shopping experience in general across the many

different products and services you shop for.

66

74 71

65

50

70

47 42

26

42 37 36

43 43 46

0

10

20

30

40

50

60

70

80

Traditional retail stores are much lessimportant in my shopping than a few

years ago

I can see a future where traditionalretail stores are not a big factor in how I

shop

I can shop for nearly 100% of theproducts/services I need online

INDIA CHINA JAPAN KOREA AUSTRALIA


APAC leads world in FMCG categories while NA leads in high ticket durables –

LATAM low across board

Omni-channel shopping has different contours across global regions

LATAM North America APAC

10% 13% 40%

8% 14% 34%

25% 31% 49%

LATAM North America APAC

37% 55% 46%

29% 43% 34%

24% 44% 27%

Food & Beverage

Cleaning Products

Beauty & Personal Care

Consumer Electronics

Mobile Phones

Auto

% Reporting Omni-Channel Shopping

Q1/Q2: Which of the following types of products or services have you shopped for in the past 6 months for yourself or other members of your household? And have you shopped for each

exclusively online, exclusively in store or both?


% shoppers reporting omni-channel shopping

People expect a seamless shopping experience across all categories

39 21 16 22 12 15 19 19 12 15 9 11 9 8

65

49 53 30 36 30 27 27

27 22 13 13 9 11

39

28 13

14 14 18 12 13 12 10

5 9 8 4

23

17

16

18 8 9

7 6 8 8

9 4 4 4

50

33 45

17 29

11 14 12 13 17

7 4

6 2

Clothing /

fashion

Beauty &

personal

care

Packaged

food &

beverage

Consumer

electronics

Cleaning

products

Mobile

phones

Toys Home

appliances

Financial

Services

Furniture &

furnishings

OTC

healthcare

Home

improve-

ment

Healthcare

services

Lawn &

garden

Korea

Japan

India

China

Australia

Q1/Q2: Which of the following types of products or services have you shopped for in the past 6 months for yourself or other members of your household? And have you shopped for each

exclusively online, exclusively in store or both?

base: have shopped for each category in the past 6 months


Financial services, mobile phones, consumer electronics and home

appliances are the categories with the highest online-only shopping process.

Q2_c1s2 For these categories, have you shopped for each of the below exclusively online, exclusively in a store or both?

% online only shopping process

32 21 18 12 11 7 9 9 6 6

17 4 4 3

27 29

22 23

15 10 8 14 12 7

7

7 3 5

31 49

35 36

24 21 25 13 18 23

14

12 9 13

42 25

26 26

22

14 16

13 7 11 11

5 7 4

21 20

34 30

19

20 14 17 23 17 12

16 3 5

0

20

40

60

80

100

120

140

160

180

Korea

Japan

India

China

AUS


Is a more enjoyable experience

19% instore 14% online

Recommended by people I trust


Better after sales service


Best advice on what to buy

8 % instore 7% online

Good relationship with retailer


Community connection


Pay with mobile device


Physical stores are about tangibility, returns, supporting loca businesses.

Online stores perceived as cheaper, more delivery and payment options

51 9

37 32

33 14

32 16

25 19

19 6

17 8

12 5

See and feel the

products before I buy

Shopping is easier

Returns are more

hassle-free

Routinely shopping

there already

Can buy other things at

the same time

Let me support local

businesses

Can get products

sooner

Is a more social

experience

Advantage Instore Advantage Online

6 12

15 29

13 23

11 19

27 59

17 24

Q4_A. Thinking about the last time you were deciding whether to purchase something online versus in a store, and decided to purchase in a store/online, what factors

were most important in driving your choice to purchase there?

Save money (better pricing,

deals)

Better delivery options

Shopping is faster

Better payment options

Already have account set

up

Better selection

NB: Australia data but similar trends across other APAC countries


Macy’s creating a seamless omni-channel world

• Virtual access to loyalty offers and

coupons –through app or the POS

system using Macy’s card

• Check store inventory (via site or

in-app) buy online and pick up in-

store (and vice versa)

• App: wayfinding in-store, barcode

scan, image search, virtual wallet

• Handheld tablets for associates

• In-store large touchscreen

lookbooks to access catalog

Whether shopping online, in-app, in-store, or browsing an in-

store kiosk, shoppers’ experience is consistent and connected

with access to the same personal information.

Source: GfK FutureBuy® 2015


Q19 How important would each of the following factors be in getting you to make more online purchases in the next year?

Free delivery the top factor for getting shoppers to make more online

purchases. Deals and personalised offers also figure highly for most

40 18 20 16 17 10 11 22 13 9

74

66 58 60 53 61 58 58

58 51

87

74 76 75 71 73 80 72 69

63

46

6 8 4 5 3 2 5

7 3

79

60 50 50 59 57 53 46 55

40

Free delivery Holiday/seasonaldiscounts

Discounts onbulk purchases

Moredaily/weekly

deals

Same daydelivery

Personalizedoffers based onyour shopping

behavior

Professionalproduct reviews

Better loyaltyprograms

More userreviews

Ability to makepayments with

my mobiledevice

Korea

Japan

India

China

Australia

Free delivery generally more important than speed of delivery.


Top reason not to purchase online most commonly revolve around credit

card security, cost of delivery, lack of tangibility, and difficulty of returns

Delivery cost number one barrier, echoed in free delivery to buy more

Q19C Reasons not to buy online

Korea

Japan

India

China

Australia 49

31 41 35

22 22

18 33 15 35

19 14

45 32

34 28

29 23

39

41 33 22

10 15

26

29 34

25

18 15

Cost of delivery Credit card / Personal detailssecurity

Prefer to see the product you’re buying in-person

Difficult to return items Reliability of delivery I enjoy shopping in-store


Instant everywhere: Seven & I Holdings available just about

everywhere

omni7 from Seven & I Holdings allows

customers to seamlessly switch between

online and offline shopping.


The role of mobile devices in shopping


China, Korea and India lead in use of mobile devices for shopping tasks

Q12 Which of the following devices have you used to help you shop for a product in the past 6 months?

80 41 29 16 2 6

80

83

33 46

3 1

70

70

22 32

3 2

91

26

13 12

1 2

84

83

22

51

2 1 0

50

100

150

200

250

300

350

400

450

Computer at home Smartphone Tablet Computer at work Wearables Didn't use a device

Korea

Japan

India

China

AUS


40%

16%

29%

7% 4%

Computer at home Computer at workSmartphone TabletOther

Q11 What percent of your total time spent shopping online is represented by each of the following?

Likewise China, India, Korea have the higher amounts of time spent on

shopping tasks on their smartphones

80%

5%

9% 4%


39%

24%

30%

5% 2%


38%

20%

29%

9% 2%


59% 7%

14%

10% 3%


Estimated share of shopping activity by device type:


In APAC countries, although PC is still the major device used, the continued

growth of shopping via mobile devices is at the expense of PCs

Australia

88

24

23

15

Computer at home

Computer at work

Smartphone

Tablet

2013

81

17

34

24

2014

80

16

41

29

2015

%

Q12 Which of the following devices have you used to help you shop for a product in the past 6 months?


Webrooming and Showrooming confirm the need for a seamless shopping

experience. Mobile devices are enabling both.

Webrooming is the dominant behaviour. Showrooming incidence similar, whether friendly or hostile

Q17 During any of your shopping occasions over the past 6 months, have you used your (device) for any of the following?

Smartphone shoppers reporting webrooming/showrooming behaviours:

40

20

17

Webroom

Hostile Showroom

Friendly Showroom

30

30

29

40

35

37

42

16

17

34

24

28

Australia China India Japan Korea


Shopping tasks, touchpoints & influences

Or, why it’s not only where they purchase, it’s about what they need to get to the purchase


The shopping activities receiving increasing shopper energy suggest

an ongoing “digital revolution” in shopping

Top 5 Reported Shopping Activities

“Doing More of” in 2015 vs. YAG


Q7: Below are different statements about shopping. Compared to a year ago, would you say that you are doing more, less or about the same as it relates to your shopping experiences in general across the many

kinds of products and services you shop for?

AUSTRALIA CHINA INDIA JAPAN KOREA

Comparing prices 39 37 45 28 33

Researching products on the internet 47 47 45 37 36

Using the Internet to find the products I want 45 51 48 38 40

Using the Internet to purchase products 38 58 48 35 37

Using Google or other search engines as a shopping tool 37 28 44 20 20

Using a smartphone or tablet to help me shop 20 41 36 14 31

Making payments using mobile devices 15 48 31 9 27

Shopping with my smartphone at home 16 42 35 9 30

Using coupons received in e-mails 19 36 37 11 25


JCPenney’s visual search simplifies shopping research

From the JCP app, users can tap

the “Scan” button within the search

bar to scan an item and the app

will find a similar item on JCP.com

or the catalog for purchase


http://www.mobilecommercedaily.com/wp-content/uploads/2015/06/jc-other-420.png

http://www.mobilecommercedaily.com/wp-content/uploads/2015/06/jc-420.png



Smartphones used mostly for what, when, where, how much. Some

countries more likely to use for reviews.

Q16: Let’s focus on the last time you used your [device] to help you shop for [category]. In which of following ways did you use your [device} when shopping? (select all)

26

26

17

17

16

14

12

Search product info

Compare prices

Check product availability

instore

Locate a store

Access product reviews

Pay online for product

Buy product via app

Australia China India Japan Korea

26

34

14

11

25

28

22

26

31

28

20

27

23

33

25

18

7

13

10

6

8

25

29

9

14

23

26

18


UNIQLO provides omni-channel app

UNIQLO provide a smartphone app which we can search a

product and inventories in each stores.

We can find clothes which we want to have very easily.



Info at shelf and instore displays are vital touchpoints, but reviews and

recommendations and deals/coupons are important and increasing

Nascent technologies naturally of less overall importance. NB this table for Australia but was similar across APAC countries.

Q8 When shopping for [category] how important was each of the following factors in your shopping decisions? Top 2 Box, average across categories

AVE %

Brand/item experience 57

Retailer experience 57

Info at shelf 48

Instore displays 42

AVE %

Opinions of family/friends/colleagues 39

Retailer websites 38

Product samples/demos 37

Brand websites 36

Online expert reviews 36

Price comparison/discount websites 35

Online reviews from other shoppers 35

Product packaging 34

Store circulars/flyers 33

Coupons 33

Consumer opinion websites 32

Brochures/flyers 32

TV or print advertising 31

AVE %

General shopping sites 29

Online advertising 29

Pay using mobile device online 28

Social media 26

Manufacturer apps 24

Pay using mobile device in a store 24

Location-enabled 'apps' to find best

deals 24

Retailer apps 23

Shopping apps 23

VITAL IMPORTANT INFLUENTIAL


Dan Murphy’s: using local customer reviews to influence at

shelf and online the wine shoppers buy


Spotlight on Payment Methods


Mobile device payments are low in a number of markets and haven’t moved

much. This may be partially due to a lack of consolidated platforms

%

Q18B Thinking about all of the products and services you buy on a regular basis, what percentage of transactions do you estimate you pay for using each method below?

35

38

49

53

24

28

26

20

42

44

30

13

20

1

21

4

21

8

2

10

4

2

3

2

1

AUS

China

India

Japan

Korea

Cash Credit Card Debit Card Mobile device Other


Whilst mobile payments have positives around speed, convenience and

efficiency, more than half have security and privacy concerns

28

28

26

25

21

20

Making payments with mymobile device is faster than…

Having all my payment methodstogether in one place on my…

Making payments on my mobiledevice makes my shopping…

Making payments with mymobile device is easier than…

Making payments with mymobile device is more secure…

I prefer to make payments withmy mobile device whenever…

59

44

23

I’m worried about my personal information when using a mobile

payment app

Mobile payment is more of agimmick today than a major part

of how I pay

I am confident that my mobiledevice payments are 100%

secure

Making payments with my mobile device is

faster than other methods

Having all my payment methods together in

one place on my mobile device is a major

convenience for me

Making payments on my mobile device

makes my shopping more efficient


easier than other methods


more secure than other methods

I prefer to make payments with my mobile

device whenever possible

I’m worried about my personal information

when using a mobile payment app

Mobile payment is more of a gimmick

today than a major part of how I pay

I am confident that my mobile device

payments are 100% secure

Positives Negatives

Q18F Thinking about your experience with mobile payments in general, how much do you agree or disagree with…

Positives and negatives relativity were very similar across APAC countries although the incidence of

negatives was lower in China and Korea. The data above is for Australia.


Biometric security authorization for payments and Apple

Pay partnership with banks are only the beginning of

securing new payment options. Citi’s app also pushes out

a notification any time a charge is made to your card.

Apple Pay biometrics authentication options


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJTTyLn578gCFQhuPgodTA4BRQ&url=http://quickresponsecode.name/qr-code-reader/citibank-wells-fargo-sending-its-customers-an-introduction-to-iphone-6-apple-pay/&psig=AFQjCNG0aS4T2N0dt3oERtDjHrjPad5eMw&ust=1446492180953954

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMKy-Nb678gCFcjKPgodGkgPTg&url=https://stewilliams.com/apple-pay-just-how-safe-is-it-going-to-be%E2%80%8F/&psig=AFQjCNFBt6mB-COsJkSMnMlhPcIcqidg1A&ust=1446492509905060


Summary


GfK FutureBuy® 2015 key takeaways

In-store Vs. Online Loyalty Issues

MOBILE migration Mobile PAYMENTS treading water

• Omnichannel shopping is everywhere

• But the physical store plays a strong role in tangibility and

experience

• Digital is omnipresent in shopping journeys

• Role of smartphones is pragmatic what, when, where

• Digital as much or more about prestore search and

webrooming as instore

• Gen Z and Gen Y are marginally ahead in

adopting smartphone shopping

• Interest in mobile payments is increasing

• However payment platforms and thus

behaviour hasn’t moved in some markets so

behaviour doesn’t reflect desire or expectation

• Receptivity to mobile is significantly higher

among LEC’s


• Loyalty harder to come by – showrooming is increasing

• Retailers need to harness their advocates, particularly LECs

• Personalisation and co-collaboration with shoppers will

help increase loyalty

• Social media platforms and reviews should be leveraged.


Want more FutureBuy info? Ask us about …

Custom reports

For example:

• YOY for 3 years for several categories

• Leading edge consumers (LEC) vs non-

LEC

• Demographics and generations

• Specific countries comparison eg Australia,

UK, USA

For 5 users globally in a company:

• All categories, all countries, all questions

• Graphing functionality

Portal Access

OR


THANK YOU

Ask us about:

• Futurebuy custom reports and

portal subscriptions

• ConsumerLife and Trendkey

reports

[email protected]

Norrelle Goldring

Shopper Lead, APAC

M: +61 437 335 686

Further reading:

• Deloitte ‘Navigating the Digital

Divide’, 2015

• IBM ‘Smarter Consumer Study,

2015

• Deloitte ‘Mobile Retail Influence

Factor’, 2012

futurebuy 2015 - gfk.com€¦ · futurebuy 2015: use of digital in the shopping journey ......

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