google canadian ecommerce june 6, 2011 from ecommerce-camp-toronto

Google Confidential and Proprietary 1

Google Confidential and Proprietary

Where Are We Now And Where Are We Going

Sara Scurfield

[email protected]

eCommerce in Canada


eCommerce Retail Sales in

Canada are about 1% of Total

Retail Sales

Source: Retailing in Canada, Euromonitor, April 2011


But Expected to Double by 2015

444

$16.5$18.5

$21.1$24.1

$27.4$30.9

2010 2011 2012 2013 2014 2015

Spend in Billions

Source: eMarketer, Feb 2011 Canada

Google Confidential and Proprietary 5Source: eMarketer, Feb 2011 Canada

Of Canadians are Online

77%

Of Canadian Internet Users

Shop Online

82%

Of Canadian

Shoppers BuyOnline

57%


In 2010, Online Shoppers

Averaged 6.5Purchases

6

Source: Ipsos Reid Interactive Digest, February 2011

= 6.9 = 6.1 = 7.4HH $75K+


One Canadian in Three Who Bought Gifts This Past Holiday Bought Them Online

777




Books 35% Apparel

33%

Toys/Games

28%

Top Three Categories Bought Online At The Holidays

DVDs/Video



The Average Annual Spend

Per Online Buyer is $1446

How Much Do Canadians Buy?

Source: eMarketer, February 2011, Projected figure for 2011


What Does The Future Hold?

101010


In Q1, eCommerce Sales in the US were

8.6% of Total Retail Sales

eCommerce Growth Rate is Almost Double That of Overall Retail

Multi Channel Retailers Starting to Re-gain Share vs. Pure Plays in Q1

Source: ComScore, State of the U.S. Online Retail Economy in Q1 2011, May 2011


Other Trends From Our Neighbours To The South

12

Mass Merchandisers & Drug Stores attract site visitors with eCommerce, Rx and Health informationNo such drivers to supermarkets in the US. In the UK, Tesco (grocery) is growing their e-Commbusiness.

Books/Mags, Computers/Peripherals, & Video Games saw Q1 growth rates higher than 15%

Consumer Electronics is the first category where online shopping is hurting the bottom line due to price transparency.

Source: ComScore, State of the U.S. Online Retail Economy in Q1 2011, May 2011


And Never Underestimate the Power of …

13Source: ComScore, State of the U.S. Online Retail Economy in Q1 2011, May 2011

49% of all

purchases in Q4 2010 offered "free shipping”

61% at least

somewhat likely tocancel their entire purchase if there

was no free shipping


And Some Trends Right Here in Canada…

1. Keeping it Local - Group Buying a Hit In Canada- Strong Multi Channel Retailing:Clicks to Bricks, Store Level Inventory online & Mobile

2. Mobile 10% of Search Queries in Canada now coming from Mobile Phones. Top Retailers with Top Apps- Promoting loyalty, extending customer service

3. US Retailers Want a Piece - US Store shipping to Canada (JC Penney, Abercrombie, Bloomingdales)- Border Agnostic Shoppers, strong CDN Dollar, go where the deals are found

14


• Google Commissioned Ipsos OTX MediaCT to conduct research to better understand consumers’ shopping behavior in:

• Home Appliances• Home Furnishing Items• Home Improvement / Gardening Items• Clothing & Apparel

• Qualified Respondents Are:

• Canadian residents • Ages 18-64• Past Six Month Purchasers of categories listed above

• Each respondent assigned to one product category they qualified for & answered surveys specific to their category

• Interviews conducted in April, 1,000 respondents.

15

Google Talked To Canadians About Shopping


What Did We Find?

16Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q1E. How did you purchase your (CATEGORY)? (n=1003)

6%Purchased Online

Highest at 8% for Home Appliances;

Lowest at 4% for Home Improvement/Gardening


4 in 10 Category Purchasers Went Onlineto Search For Information

17Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q2A. Which of the following sources did you use to gather information about the (CATEGORY) you most recently purchased? (n=1008)Q2B. And, which of the following sources did you turn to first when you began your information gathering process?) (n=586)


Where Are They Going Online?

18

Store or Retailer Websites 67%

Search engines 48%

Brand or manufacturer websites 39%

CATEGORY websites 28%

Review websites (e.g., CNET, ConsumerReview) 22%

Price comparison websites (e.g., Bizrate, Nextag) 15%

Online-only retailer websites (e.g., Amazon,

Overstock) 14%

Auction websites (e.g., eBay) 10%

Blogs, message boards or chat rooms 8%

Social networking sites (e.g., Facebook, Myspace) 7%

Coupon websites (e.g., Groupon, LivingSocial) 6%

Online video sites (e.g., Youtube, Yahoo! Video) 6%

General interest websites or portals (like AOL, MSN) 5%

Other websites 5%

Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3A. Which of the following online sources did you use as you researched and gathered information about the (CATEGORY) you most recently purchased? (n=404)


And How Useful Are Those Sources?

19

1 Store or Retailer Websites 70%

2 Search Engines 68%

3 Online Video Sites 67%

Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3B. Overall, how useful do you think each of the following online sources were to you as you gathered information about your (Category)? (n=404)

Extremely / Very Useful


One in Ten Who Used Search Bought Online

20Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3D_1. Now we would like to know how each of the following sources helped you as you researched and gathered information about the (Category) you most recently purchased. You may choose more than one statement for each source if you feel it applies.


2 in 10 Mobile Information

Gatherers Bought Online

21Source: Google Canada Retail Study, Ipsos/OTX, April 2011Q3D_1. Now we would like to know how each of the following sources helped you as you researched and gathered information about the (Category) you most recently purchased. You may choose more than one statement for each source if you feel it applies)


These Tablets Were Made for Shopping

Source: eMarketer, How the iPad is Transforming Retail, April 2011 (US Data); NPD Group, Tablet Sales Poised to Surpass eReader, May 2011; IDC - Canadian Media Tablet 2010–2014 Forecast: A First Look at the Hottest Devices in ICT, Jan 2011

“41% of consumers

who planned or were considering buying an iPad cited

shopping as a primary reason for their interest”*

*US Data

• 6% of Canadians own a tablet and half spend between 2 to 6 hours a day on their device

• Triple-digit growth in tablets by end of 2011, estimated 1.5M devices


Key Takeaways

23

1Canadians Shop Online! Break Down the

Barriers Like We’re Doing

2 Think Local

3 Think Mobile … and Tablet too.


Thank You

Sara Scurfield, Account Manager - [email protected]

Alexandra Cohn, Industry Analyst – [email protected]

mailto:[email protected]

mailto:[email protected]

google canadian ecommerce june 6, 2011 from ecommerce-camp-toronto

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