1planetretail.net
Appeasing Grocery ShoppersAchieving omni‐channel or what consumers call ‘shopping’
June 2014 MALCOLM PINKERTONResearch Director ‐ E‐commerce
Presentation: e‐Commerce summit 2014
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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%
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Identifying the biggest online grocery shopper population
China has the highest proportion of online shoppers buying groceries
Online Russia 2013Online Russia 2013
Source: Planet Retail
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
9%9%
9%9%
16%16%
48%48%
10%10%
% internet shoppers buying groceries online: 2013
27%27%12%12%
13%13%
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Identifying the biggest online grocery markets
UK has the highest proportion of online grocery spend
Online Russia 2013Online Russia 2013
Source: Planet Retail
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
4%4%
3%3%
5%5%
8%8%
3%3%
% of online spending on groceries: 2013
21%21%4%4%
8%8%
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Identifying the biggest online grocery markets
UK has the highest online spend per head on groceries
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Source: Planet Retail
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
$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
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Identifying how consumers’ shopping preferences are likely to change
Use of internet for grocery shopping in the future
Online Russia 2013Online Russia 2013
Source: Planet Retail
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
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 )
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The shopper journey used to be simple
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What was once this….
Align with brand
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But it is now increasingly complex
Online Russia 2013Online Russia 2013Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
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….
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Mobile devices are a vital component of the path‐to‐purchase
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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%
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Smartphones have equipped shoppers with a powerful tool when entering stores
Mobiles are becoming the ultimate shopping companion
Online Russia 2013Online Russia 2013Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
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
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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%
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
Grocery shoppers currently use their mobile to…
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Build solutions around the technology shoppers already have
Facilitate the use of mobiles for shopping
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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
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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%
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
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…
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Solutions implemented must meet a need or solve a pain‐point
Using technology to enhance the instore experience
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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%
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Retailers should be providing seamless online experiences
Shoppers are device and channel agnostic
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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
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Retailers need to save customers time and money
Shoppers are demanding convenience and value
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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...
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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
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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
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
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Retailers need to build closer and better relationships with their customers
Social media is essential in influencing purchasing decisions
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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
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36%said participating in a Google+ Hangout would encourage them to make a purchase
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
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
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Leveraging “Big Data” to understand customers vital in meeting their needs
Personalisation is becoming expected
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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…
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Providing convenience and choice when it come to fulfilment
It is all about the final mile
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Options being used now….
Home Delivery
77% 15%Click & Collect Drives
3%6%
4%
15%
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Shortening distance and time between the customer and their online purchase essential
Fulfilment is a key differentiator when choosing a retailer
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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
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Shop & Go
Car DeliveriesAlternative locations
Freshly prepared
Crowdsourcing
Temp controlled lockers
Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
What can we expect retailers to deliver on?
Innovative fulfilment solutions
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Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
Providing choice, granting complete transparency
Alternative routes to market
MySupermarket…
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Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
Search engines becoming a marketplace?
Alternative routes to market
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Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
Helping consumers live simpler, easier lives
The new business models
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Achieving omni‐channel or what consumers call ‘shopping’Achieving omni‐channel or what consumers call ‘shopping’
Potential game changer?
The new kids on the block
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MALCOLM PINKERTONResearch Director
@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.
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Thanks for listening!
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