Understanding the Online Apparel Path to Purchase

Understanding the Online Apparel Path to Purchase

Confidential & Proprietary Copyright © 2011 The Nielsen Company

Period: September - November 2010

Matthew Dodd

Senior VP, Head of Media Analytics, Europe

Methodology & DefinitionsMethodology & Definitions

• Custom analysis of Nielsen's

NetView active online panel of

22,806 users

• Period: September - November

2010

• Sample size: 5,380 restricted to

Methodology

Group Designations

PurchaseThose that purchased

Sample Size: 697

Usage of each type of retail website user

Mutually exclusive & Exhaustive

Confidential & Proprietary Copyright © 2011 The Nielsen CompanyRetail (Apparel) ESSource: NetView September - November 2010

• Sample size: 5,380 restricted to

adults +16

• 114 sites analyzed

• For multicategory retailers, only

apparel urls considered

• 2,276 search terms categorized

Quote

Research Those that visit sites for research

Sample Size: 1,012

Sample Size: 4,102

Viewed items in basket

Methodology: Site Categorisation

Category: Site Designations

Apparel SpainSample Size: 5,380

Pure Players &

CatalogsPrescriptorsTraditionalPrivate Clubs


Market Overview


Market Overview

9.3m 6.6m

9.3m users of apparel sites and 1.2m online

apparel shoppers in Spain

In the period Sep-Nov 2010:


1.2m

1.5m

Total Apparel Users

Research Basket Buy

100% 17% 13% % of total: 71%

Private Clubs receive 74% of all visits

Total Visits: 160m

Private

clubs75%

Privalia18%

BuyVip

Other private clubs29%

74%


Pure players

Prescriptors

Traditionals15%

10%

BuyVip16%

Vente-privee15%Ofertix

13%

Dreivip9%

Total Private Clubs: 120m visits

15%

9%

2%

Traditional stores receive 15% of all visits

Total Visits: 160m

Private

clubs75%

74% Kiabi21%

Zara

Other Tradit.44%


Pure players

Prescriptors

Traditionals15%

10%

15%

9%

2%

Zara13%

Corte Inglés12%

Pimkie5%

Mango5%

44%

Traditional Stores: 24m visits

Pure players receive 9% of all visits

74%

Total Visits: 160m

Private

clubs

La Redoute + Vertbaudet

27%

Other Pure players / Catalogs

32%


15%

9%

2%

Pure players

Prescriptors

Traditionals

Pure Players & Catalogs: 15m visits

Spartoo22%

Yoox8%

Venca6%

eBay5%

Prescriptors receive 2% of all visits

74%

Total Visits: 160m

Private

clubs

Chicisimo30%

Other Prescriptors

27%


15%

9%

2%

Pure players

Prescriptors

Traditionals

Pure Players & Catalogs: 15m visits

Elrincondemoda.com

16%

Trendtation11%

Que-mepongo

8%

Trendencias8%

Traffic to apparel sites more than tripled in the

period 2007-2010

Private clubs: X3 in 3 Years

5.5bn6.1bn

Top 10 Private Clubs´ Page Views

CAGR: 46%


2.0bn

4.0bn

5.5bn

2007 2008 2009 2010

We looked at visits… and what about conversions?


Private Clubs receive 77% of all conversions

Total Conversions: 2.7m

Private

clubs75%

74%77%

Privalia27%

Ofertix13%

DreiVip4%

Others13%


Pure players& Catalogs

Traditionals15%

10% Total Private Clubs: 2m conversions

15%

9%

2%

13%

10%

Vente-Privee23%

BuyVip20%

13%

Pure players & Catalogs receive 13% of conversions


Private

clubs75%

74%77%

La Spartoo

Ebay7%

Yoox6%

Others9%


Pure players

& Catalogs

Traditionals

15%

10%

15%

9%

2%

13%

10% Total PP & Catalogs: 338k conversions

La Redoute

Vertbaudet53%

Venca19%

Spartoo8%

Traditionals receive 10% of conversions


Private

clubs75%

74%77%

Zara34%

El Corte Inglés

8%

Decathlon3%

Others15%


Pure players

& Catalogs

Traditionals

15%

10%

15%

9%

2%

13%

10% Total Traditionals: 278k conversions

Kiabi32%

Mango8%

8%

The online apparel shopperThe online apparel shopper

64%

36%

Those that purchase are more likely to be women

and aged 25-44

GenderComposition

AgeComposition

Female

Male

19%

27%

22%


64%

Base: All, those that get a quote and purchase in the retail (apparel) market Note: Profile of all, those that got a quote and purchased in the retail (apparel) market; All figures are Based on Index v Active Internet Population

3%

10%

2% 2%

5%7%

3%

16 - 24 25 - 34 35 - 44 45 - 54 55 +

Top Female Transacting Audience

Important differences in gender of shoppers

Traditional

Pure Players

& Catalogs 76%

70%


Female Male

Private

Clubs

Traditional 70%

61%

Online

apparel

purchasers

made

an average of

2.2

Private

Clubs: 2.5

Pure


Base: Those that purchase in the retail (apparel) market Note: Average number of purchase events

Retail (Apparel) ESSource: NetView September – November 2010

Confidential & Proprietary Copyright © 2011 The Nielsen Company 19

2.2purchases

in a quarter

Pure

players &

Catalogs: 1.4

Traditional

Stores: 1.3

Average Number of Purchases

One third of shoppers made more than one

purchase

OneThree

7%

Four2%

Five+7%36%


Base: Those that purchase in the retail (apparel) market Note: Distribution of purchase events. Only one event can be performed on a particular site within each web session

One

Purchase

64%Two20%

7%

Private Clubs

38%

Traditional

12%

Pure Players & Catalogs

18%

More than one purchase:

But the average hides big differences between

business models


Base: Those that purchase in the retail (apparel) market Note: Distribution of purchase events. Only one event can be performed on a particular site within each web session

It takes 28 days and almost 2 hours for a shopper

to make her first purchase

28 days1

Average Journey Length

ES ApparelUp to First Purchase


21.7 times

Base: Those that purchase in the retail (apparel) market Note: Activity UP TO the first purchase event

2Sites Visits per Person

3Time Spent per Person 1hr 48 mins

50%

60%

70%

80%

90%

100%

~40% of conversions can occur after 30 days

85% purchase within 60 days

% of those that purchased

62% purchase within 30 days

Careful with 30-day conversion tracker

cookies


0%

10%

20%

30%

40%

les

s t

ha

n 2

4 h

ou

rs

1 -

5 d

ay

s

6 -

9 d

ay

s

10

- 1

4 d

ay

s

15

- 1

9 d

ay

s

20

- 2

4 d

ay

s

25

- 2

9 d

ay

s

30

- 3

9 d

ay

s

40

- 4

9 d

ay

s

50

- 5

9 d

ay

s

60

- 6

9 d

ay

s

70

- 7

9 d

ay

s

80

- 8

9 d

ay

s

90

- 9

9 d

ay

s

Base: Those that purchase in the retail (apparel) market Note: % of those that purchase and the length of time UP TO the point of the purchase occurring. Based on first event in the category.

17% purchase within 24 hours

within 30 days cookies

Private Club

Private Clubs have significantly higher look to book ratio than other types of players

12.2%Total

% of audience who purchased on the site

14.3%


Base: All in the retail (apparel) market Note: The % of people who look for a product on a site who go on to purchase on the site

Pure Players

& Catalogs

Traditional

6.1%

4.1%

9.3%

3.2%

Catalogs

Pure

players

27% of top

30 traditional

store sites do

not have a

store locator

10% of

audience

visits store

locator

pages

22% of

buyers visit

store locator

pages

The store locator receives more traffic than you think


store locator

used by their

customers Yes

57%

pages

Some players are leveraging store locators effectively

% Audience

who checked location

28%

30%

32%

56%

Mothercare

Trucco

Reebok

Primark

45

67

99

136

Primark

H&M

Kiabi

Marypaz

Total audience (in ‘000)

who checked location


12%

14%

21%

24%

27%

27%

28%

Loewe

Mustang

Neck&Neck

Marypaz

H&M

Karen Millen

Mothercare

25

30

26

24

31

39

45

Bershka

Merkal Calzados

Trucco

Springfield

Reebok

El Corte Inglés

Primark

The Customer JourneysThe Customer Journeys

Journey PathsSearches = Sponsored Link Clicked PurchaseQuote

DAY

SE

AR

CH

ES

SIT

ES

121 74 8 9

ofertix

Ofertix.com Zara

Ofertix.com

Privalia

zara online

Ofertix

privalia

ofertix

privalia

zara online

Ofertix.com

Privalia

Zara

ofertix

Ofertix.com

zara

Zara

ofertix

Ofertix.com


Note: Example Retail Journey Paths

491614 25 42 50 82

ofertix

privalia

zara online

Ofertix.com

Privalia

Zara

ofertix

privalia

Privalia

Ofertix.com

privalia

ofertix

Ofertix.com

Privalia

Ofertix.com

Privalia

privalia

ofertix

Ofertix.com

Privalia

ofertix

privalia zara

Zara

oferti

Ofertix.com

Journey PathsSearches = Sponsored Link Clicked PurchaseQuote

DAY

SE

AR

CH

ES

SIT

ES

191 1211 13 18

Pimkie

ropa para

hombre barata

de vestir en

madrid

dress-for-less

Springfield Pimkie

pimkie

cazadoras y

chaquetas baratas

para chica

Kiabi.com x2Pimkie

pimkie

cazadoras y

chaquetas baratas

para chica

Kiabi.com

Pimkie

Kiabi.com


Note: Example Retail Journey Paths

dress-for-less

29 30 32

kiabi

Pimkie Kiabi.com

35

kiabi x2

Yoox

Pimkie

pimkie

Kiabi.com x2

The Search ProcessThe Search Process

Online shoppers search more

use search at any point in the journey

Total Purchase

38% 56%

13%

Those that purchased were more likely to use search and sponsored search during their journey

Purchase(ex. Priv. Clubs)

64%

27%


Base: All, those that get a quote and purchase in the retail (apparel) market Note: % of audience in the retail (apparel) market; Searches are defined as only those that lead to a relevant site *Searches per searchers

start their journey with search

searchers who use sponsored searches

Average number of searches*

17%

19%

13%

25%

8.24.4

27%

22%

7.0

% of Purchasers

Those that click on sponsored searches are:

• 23% more likely to purchase than avg

• 2.5x more likely topurchase than non-

searchers

Searchers are 2x more likely to purchase than non-searchers

2x18%

+28%

23%


Base: Those that get a quote and purchase in the retail (apparel) market Note: % of those who search or do not search and either quoted or purchased; ‘Times’ more likely versus totalSearches are defined as only those that lead to a relevant website. Correlation not cause.

9%

Non Searchers Searchers Clicked on Sponsored Links

Conclusions & Recommendations

1. If you are not online ,“Jump In”: Your customer is increasingly buying

online and Private Clubs are leading the way (77% of 1.2 Mill Purchases in 3 months)

2. The power of the brand is important online. Strong brands drive better conversion rates (Private Clubs, Traditionals and well established pure

players are doing very well)

3. Work on promotions and short term offers to increase frequency of


3. Work on promotions and short term offers to increase frequency of purchase and conversion. Private Clubs, with a successful push model, drive high conversion rates and frequency of purchase but Pure Players &

Traditionals struggle with frequency

4. Develop strong store locators and make them visible and findable .

22% of buyers and 10% of the audience are looking for a physical store

online

5. Be found, work on SEO and SEM: Searches are 2x more likely to

purchase than non searches.

Understanding the Online Apparel Path to Purchase

Business