2011 Holiday Consumer Intentions

8/2/2019 2011 Holiday Consumer Intentions

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U.S., November 2011

Holiday 2011: Consumer Intentions


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Background and Methodology

Google commissioned Ipsos OTX, an independent market research firm,to gain a better understanding of consumers shopping intentions for theupcoming 2011 Holiday Season. Specific goals of the study are to:

Provide insight into the behavior of consumers when holiday shopping for the 2011Holiday Season

Understand the role the internet & online search plays in holiday shopping Identify the hot gifts for the upcoming season Gauge the impact of the current economic climate Discern whether respondents will postpone purchases until after the holiday season

when sales are more prevalent

Interviews were conducted via an online quantitative survey yielding a totalsample of 2,000 holiday shoppers

Trended comparisons were made throughout the report to data collectedfrom 2008 through 2010, where applicable

2


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Consumers Show Signs of Optimism

3


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Signs of Positive Retail Growth for Holidays

4

Sources: BusinessWeek (http://www.businessweek.com/news/2011-10-14/u-s-economy-retail-sales-increase-by-most-in-seven-months.html), Internet Retailer (http://www.internetretailer.com/2011/10/20/holiday-bells-ring-e-commerce), Experian Hitwise Black Friday Holiday Webinar, October 2011, Wall Street Journal (http://online.wsj.com/article/AP3b54d0ae8f01415d820ea9f77c98c56e.html)

October same-store sales risemarks the 14th consecutivemonth of increases for U.S.retailers

In the four weeks ending Oct.15, traffic to top 500 retail sitesincreased 10% compared with

the same period a year ago

FedEx expects to deliver 12%more packages betweenThanksgiving & Christmas thisyear


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Consumers Plan to Spend More this Holiday

5

Average Planned Spending Amount up 6% from 2010

$717

$808

$854

2009 2010 2011

(Q4). In total, approximately how much do you plan to spend on your Holiday Shopping this coming season?

Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011


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Products Planning to Purchase

Growth Expected in Purchases Across ProductCategories

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(S11). Listed below are a variety of products or services that you may purchase for yourself or someone else during the upcoming Holiday Season. Which of the following doyou plan to shop for or purchase?

Jewelry/Watches

57%83% 56%

Clothing/Apparel/Fashion Accessories Electronics Home Furnishings

29%



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Though Spending More, Economy has ShoppersAdjusting Game Plan

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I plan to spend more timeshopping around

for gifts

I plan to use searchengines more for

researching my Holiday

purchases this year

50%


(Q16) Using the scale below please tell us how much you agree or disagree with the following statements about shopping during the holiday season *ResponsesDue to Economic Conditions

I plan to use couponsmore this year

55% 46%


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As Holiday Shoppers Adjust Their Strategy,Fewer Rely on Newspapers & Catalogs to Shop

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(Q6). Which of the following sources of information, if any, do you plan to use during your Holiday Shopping this year?

%ofCon

sumersUsingthisMediumfo

rHolidayShopping


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As More Shoppers Turn to Social & Deal-CentricResources Online

9


(Q6). Which of the following sources of information, if any, do you plan to use during your Holiday Shopping this year?

%ofCon

sumersUsingthisMediumforHolidayShopping


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US Unemployment and Consumer Interest in Deals 2004 - 2011

But Stretching Each Dollar Remains Top of Mind

10

- 50%

0%

50%

100%

150%

200%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

US Unemployment Rate Searches for Coupons and Rebates

Linear (Searches for Coupons and Rebates)Linear (US Unemployment Rate)

Jan04

May04

Sep04

Jan05

May05

Sep05

Jan06

May06

Sep06

Jan07

May07

Sep07

Jan08

May08

Sep08

Jan09

May09

Sep09

Jan10

May10

Sep10

Jan11

May11

Sep11

Source: U.S. Bureau of Labor Statistics, Google insights

Shopping and deal related queries up year/year


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Key Recommendations

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1Capture Consumer Demand: 50% of holiday purchasing will startin the next 22 days

2Make Sure Your Brand is Top of Mind: 67% of holiday shoppersplan to shop for gift ideas

3 Open Attribution Window: Purchasers are researchingup to one month prior to purchase

4Be Present Across All Screens: Consumers choosethe best device available

5 Implement full coverage for mobile and tablet: Holiday shoppers usingtablets and smartphones as shopping assistants


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50% of holiday purchasing will start in the next 30 days

Capture Consumer Demand:

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Consumer Demand is Exceeding Ad Supply

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Recommendation: Address now before traditional retailerslaunch seasonal spend

+46% Y/Y

-26% Y/Y

Google internal


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50% of Holiday Purchasing Will Start Within Next22 Days

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When Plan to Start Holiday Purchasing

11%

11%

23%

9% 7%

22%

8% 9%

9%

12%

28%

9%8%

20%

7% 8%

0%

5%

10%

15%

20%

25%

30%

35%

BeforeHalloween

BetweenHalloween&

Thanksgiving

BlackFriday

Weeken

dafterThanksgiving

CyberMonday

Early/MidDecember

Lastminute

Afte

rChristmas/Holiday

Season

2010 2011

(Q1). When do you plan to start your holiday shopping/researching and purchasing this year? n=2000

Consumers start research up to a month prior to purchase;be present for holiday shoppers now

%ofConsumersStartin

gHolidayShopping



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43% of Holiday Shoppers Plan to do Majorityof Shopping by Cyber Monday

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Plan To Do Majority of Holiday Purchasing

3%

7%

18%

9% 6%

34%

7%5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

BeforeHalloween

BetweenH

alloween&

Thanksgiving

B

lackFriday

Weekendafter

Thanksgiving

CyberMonday

Early/MidDecember

Lastminute

AfterChristm

as/Holiday

Sea

son

2011

Keeping the Lights On Post-Holiday More Important than Ever:5% will do majority of shopping after Christmas

(Q2). And, when do you plan to do the majority of your holiday purchasing? n=2000

%o

fConsumersDoingMajorityofHolidayShopping



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67% of gift givers plan to shop for gift ideas

Make Sure Your Brandis Top of Mind:

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Undecided Holiday Shoppers are ResearchingNow

17Google Insights


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Most Shoppers Have Yet to Make Decisionson What to Buy/Where to Buy

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67% 61% 70%

Plan to shop aroundfor gift ideas

Do not have specificbrands in mind

to purchase

Are not tiedto a particular store/

retailer


(Q16) Using the scale below please tell us how much you agree or disagree with the following statements about shopping during the holiday season.


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Online Research Highly Impacts Choice ofRetailer, Brand and Type of Gift

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82%79% 77%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Retailer(s) Shop At Brand(s) Buy Type of Gift(s) Buy

%ofConsumersStatingOnlineR

esearchwillhave

Significant/ModerateI

mpact


Question: How much impact will online research have on your purchase decisions in-store for each of the following items? (Top two boxes only shown- Significant /ModerateImpact)


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Holiday Shoppers using tablets and smartphoneas Shopping Assistants

Implement Full Coveragefor Mobile and Tablet:

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Coverage Across Multiple Screens is Essentialas Consumers Turn to Best Available Device

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54%56%

68%

77%

54%

82%

Online shopping In-store shopping Both

Smartphone Tablet

Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011(Q24) How likely are you to use your smartphonet/tablet to do your Holiday Shopping?

When Will Shoppers Use Mobile Devices?

Online Shopping In-Store Shopping Either Online or In-Store Shopping


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The Majority of Online Purchases Will be Madeon Desktop, 26% Will be Done on a Mobile Device

22Base: Among those who use a tablet or smartphone regularly (n=599 smartphone users), (n=208 tablet users)(Q26). Thinking about all the online purchases you plan to make this Holiday Season, what percent will be done on each of the devices below?

Devices Shoppers Plan to Make Online Purchases on

Smartphone17%

Tablet9%

Otherinternetdevice

7%

Desktop/laptopcomputer

67%



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Holiday Shoppers Plan to Use Smartphonesto Locate Stores, Products and Compare Prices

23Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011(Q23a). In which of the following ways, if any, do you plan to use your mobile device(s) to do your shopping this Holiday Season?

47%Will use smartphones

to compare prices

42%Will search for nearest store

based on current location

55%Will use GPS/locationfeatures on some/most

shopping trips


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While Tablets are Key Throughout the HolidayPurchase Process

24Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011(Q23a). In which of the following ways, if any, do you plan to use your mobile device(s) to do your shopping this Holiday Season?

53%Will price-comparison

shop

47%Willsearch

for coupons/rebates

52%Will compare product

features

44%Will purchase on their

tablet device


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Smartphone and Tablet Shoppers Planto Download Shopping Apps This Year

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Source:. Google & Ipsos OTX Consumer Intentions Survey for Holiday 2011Base: Likely to use tablet/smartphone for Holiday Shopping (n= 599 )(Q25). And, how likely are you to download or use an app (application) to do your Holiday Shopping this Season?

52%of Tablet users are Very/Extremely Likelyto DL a shopping App this year 42%of Mobile Device users are Very/ExtremelyLikely to DL a shopping App this year


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Recommendations

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Key Recommendations

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1 Capture Consumer Demand: 50% of holiday purchasing will startin the next 22 days

2Make Sure Your Brand is Top of Mind: 67% of holiday shoppersplan to shop for gift ideas

3 Open Attribution Window: Purchasers are researchingup to one month prior to purchase

4Be Present Across All Screens: Consumers choosethe best device available

5 Implement full coverage for mobile and tablet: Device users usingtablets and smartphones both in-store and online

2011 Holiday Consumer Intentions

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