malcom pinkerton

1planetretail.net

Appeasing Grocery ShoppersAchieving omni‐channel or what consumers call ‘shopping’

June 2014 MALCOLM PINKERTONResearch Director ‐ E‐commerce

Presentation: e‐Commerce summit 2014

2

Identifying the fastest growing markets

The BRICs hold the greatest e‐commerce growth potential

Online Russia 2013Online Russia 2013

Source: Planet Retail

$1.7trillion by 2019$1.7trillion by 2019

Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’

+130%+130%

+457%+457%

+1,148%+1,148%

+296%+296%

+328%+328%

Sales: Online Growth by Country, 2013‐2019

+140%+140%+132%+132%

+139%+139%

3

Identifying the biggest online grocery shopper population

China has the highest proportion of online shoppers buying groceries




9%9%

9%9%

16%16%

48%48%

10%10%

% internet shoppers buying groceries online: 2013

27%27%12%12%

13%13%

4

Identifying the biggest online grocery markets

UK has the highest proportion of online grocery spend




4%4%

3%3%

5%5%

8%8%

3%3%

% of online spending on groceries: 2013

21%21%4%4%

8%8%

5

Identifying the biggest online grocery markets

UK has the highest online spend per head on groceries




$460$460

$494$494

$325$325

$207$207

$350$350

Average annual online spend per head on groceries: 2013

$1,176$1,176$520$520

$552$552

6

Identifying how consumers’ shopping preferences are likely to change

Use of internet for grocery shopping in the future




15%15%

33%33%

43%43%

29%29%

36%36%

18%18%6%6%

20%20%

How will your shopping preferences for grocery change in the years to come?(Very likely and Extremely likely )

7

The shopper journey used to be simple

Online Russia 2013Online Russia 2013Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’

What was once this….

Align with brand

8

But it is now increasingly complex


Search

YouTubeVideo Ad

Watch video on

mobile

Download Mobile App

Compare Shop Online

Facebook“Like”

Demo Product instore

Watch Tutorial

Buy item

Read Reviews

View Banner Ad

View Print Ad

Shop on Website

Read Blog

Has become this….

9

Mobile devices are a vital component of the path‐to‐purchase


NEED to cater for the “touch‐screen” shopper

45%45%58%58%

would be encouraged to choose a retailer if it had a MOBILE and TABLET optimised website

31%74%

40%

Use device for shopping activities when buying groceries…

62%

27%

49%

20%

are likely to shop online for groceries via MOBILE in the future

27% 45%

5%

are likely to shop online for groceries via TABLETin the future

26% 45%

7%

10

Smartphones have equipped shoppers with a powerful tool when entering stores

Mobiles are becoming the ultimate shopping companion


Grocery shoppers currently use their mobile to…

43%check prices when instore

42%find nearest store of a particular

retailer

29%downloaded a retailer’s mobile app37%

log onto retailer’s free instore Wi‐Fi

36%get more info about a product when out shopping

11

Be where the customer is at all times

Embrace the constantly connected consumer

6%6%22%22%

32%scan QR Codes to get info about products

12%have shopped a virtual supermarket using their smartphone

43%43% 42%42%


Grocery shoppers currently use their mobile to…

12

Build solutions around the technology shoppers already have

Facilitate the use of mobiles for shopping


Grocery shoppers WANT to be able to use their mobile to…

navigate a store to find what they're

looking for

45%receive tailored vouchers and discount codes when instore via their mobiles

47%gather loyalty points as they shop

35%read peer

ratings and reviews when instore

56%quickly and easily compare prices when out shopping

13

26%want to use a barcode scanner app to scan

and then pay for items when instore

34%use a barcode scanner to view product information

43%43%35%35%


Build solutions around the technology shoppers already have

Facilitate the use of mobiles for shopping

Grocery shoppers WANT to be able to use their mobile to…

14

Solutions implemented must meet a need or solve a pain‐point

Using technology to enhance the instore experience


Instore technology being used by grocery shoppers...

49%have used a self‐service check‐out

21%have used a mobile device provided by the retailer to scan the barcode of products and then pay at a checkout

30%30% 36%36%80%80% 31%31%

19%have used an instore kiosk to get more product information, view the retailer’s website

22%have used an interactive display to search for product ideas, get product recommendations and suggestions

31%31% 28%28%

15

Retailers should be providing seamless online experiences

Shoppers are device and channel agnostic


Regardless of device, online grocery shoppers want a website that...

Grocery shoppers feel it is very important an online supermarket...

52%

49%

45%

45%

has good product info

is easy to use

has good quality images

has clear product reviews

47% Always has items in stock

53% Offers value for money and range of prices to suit my budget

49% Offers a wide choice of products

16

Retailers need to save customers time and money

Shoppers are demanding convenience and value


51% flexible delivery times and options

53% receiving special discount codes and vouchers

51% a quick & easy to use website and checkout process

Choice of online supermarket influenced by...

17


Importance

InfluenceLow

High

High

Range & choice

Unique prices & products

ValuePromotions, price and range architecture, quality credentials

Convenience Flexible delivery, free delivery, choice of fulfilment

Ease of shopUsability of website. Quick, easy experience and checkout process

Nature of the shopping mission dictates factors of importance

Appeasing the online grocery shopper

Key to appeasing online grocery shoppers

18

Nurturing real brand advocate through combining content with commerce

Enrich customer relationships

33%are encouraged to

choose a retailer if got help finding new,

different & distinctive products


19

Retailers need to build closer and better relationships with their customers

Social media is essential in influencing purchasing decisions


Social Media is a huge influencer of spending decision…

54%are more influenced b

y peer

reviews & recommendations

than social media

44%feel social media is a good source of peer reviews & recommendations

39%take information on

social media into account when making a purchasing decision

71%read peer reviews and

recommendations

20

36%said participating in a Google+ Hangout would encourage them to make a purchase


Genuine conversations, where consumer driven content the king

Social media is a place to entice and engage the shopper

43%would be encouraged to make a purchase after seeing an item on Pinterest

21

Leveraging “Big Data” to understand customers vital in meeting their needs

Personalisation is becoming expected


42% want to receive tailored discount codes when instore based on previous purchases

43% choice of retailer influenced by receiving personalised promotions and deals when instore via their mobile

42% want to receive real time promotions, discounts might be eligible for when instore via their mobile

Consumers want tailored, relevant experiences…

22

Providing convenience and choice when it come to fulfilment

It is all about the final mile


Options being used now….

Home Delivery

77% 15%Click & Collect Drives

3%6%

4%

15%

23

Shortening distance and time between the customer and their online purchase essential

Fulfilment is a key differentiator when choosing a retailer


47% retailer accepting payments such as cash on delivery or collection

52% same or next day delivery

47% ability to use collection lockers, Click & Collect, collection points

Choice of online supermarket influenced by…

61% 62%65%

34% a delivery pass scheme

24

Shop & Go

Car DeliveriesAlternative locations

Freshly prepared

Crowdsourcing

Temp controlled lockers


What can we expect retailers to deliver on?

Innovative fulfilment solutions

25


Providing choice, granting complete transparency

Alternative routes to market

MySupermarket…

26


Search engines becoming a marketplace?

Alternative routes to market

27


Helping consumers live simpler, easier lives

The new business models

28


Potential game changer?

The new kids on the block

29

MALCOLM PINKERTONResearch Director

[email protected]

@MGQPinkerton

Planet Retail is a world‐leading retail intelligence product, providing global data and deep insight to 30,000 people working in influential retail, technology, banking and

consultancy organisations worldwide.


Thanks for listening!

30

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Researched and published by Planet Retail Limited

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