Holiday 2016 Digital Retail Trends December 5 2016...2016/12/05 · Source: comScore/2016 UPS Pulse of the Online Shopper Smartphones and tablets are likely underindexing on purchasing

1

DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

DECEMBER5,2016

D E B O R A H W E I N S W I G

M a n a g i n g D i r e c t o r , F u n g G l o b a l R e t a i l & T e c h n o l o g y d e b o r a h w e i n s w i g @ f u n g 1 9 3 7 . c o m

U S : 6 4 6 . 8 3 9 . 7 0 1 7 H K : 8 5 2 . 6 1 1 9 . 1 7 7 9

C N : 8 6 . 1 8 6 . 1 4 2 0 . 3 0 1 6

Here are three top takeaways on digital retailing over theholidayperiod:

1) The online channel’s share of retail sales generallygoesupduringtheholidayseason,asshoppersturntoecommerce for convenience. A big push factor is theperceivedinconvenienceofshoppinginphysicalstoresovertheholidayperiod.

2) Given the pressures on consumers’ wallets and thedemands on their time over the holiday season, weexpectconsumerstoturntotechnologytohelpthemoutmoreduringthisperiodthanatothertimes.

3) Digital-shopping innovations, such as Amazon’s Echodevicesand theApple Pay thumb scanner, andotherinitiativesatmajor retailers, lookset toeasesomeofthe challenges faced by customers that shop onlineanddriveecommercethisholidayperiod.

DEEP DIVE: Holiday 2016

Digital Retail Trends:

US and UK

2


DECEMBER5,2016

TABLEOFCONTENTS

EXECUTIVESUMMARY.......................................................................................................................................3

INTRODUCTION.................................................................................................................................................4

THEECOMMERCESLICEOFTHEHOLIDAYRETAILPIE.........................................................................................4

WHYDOSHOPPERSINCREASINGLYPREFERTOSHOPONLINE?..........................................................................5

THESHOPPINGJOURNEY:TECHNOLOGYANDSTORES.......................................................................................6

1. TECHNOLOGY’SROLEINSHOPPINGRESEARCH......................................................................................62. PHYSICALSTORESSTILLHAVEABIGROLETOPLAY,BUTLESSTHANBEFORE..........................................73. CHECKINGOUTANDPAYINGONLINEISSTILLCOMPLICATED.................................................................8

DIGITALRETAILTOOLSTOBOOSTECOMMERCE................................................................................................10

1. AMAZON’SVOICESHOPPINGANDDASHBUTTONS..............................................................................102. MOBILEPAYMENTSANDTHEAPPLEPAYTHUMBSCANNERINTHENEWRANGEOFMACBOOKS.............113. RETAILCHANNELSONTHEIFTTTPLATFORM........................................................................................114. RAPIDDELIVERY…………………………………………………………………………………………………………………………………115. SMARTERCLICKANDCOLLECT……………………………………………………………………………………………………………126. CUSTOMERSERVICETHROUGHCHATBOTS..........................................................................................12

USRETAILERCASESTUDIES...............................................................................................................................13

AMAZON..................................................................................................................................................13WALMART................................................................................................................................................14TARGET.....................................................................................................................................................15KOHL’S......................................................................................................................................................16NORDSTROM............................................................................................................................................17MACY’S.....................................................................................................................................................18

UKRETAILERCASESTUDIES...............................................................................................................................19

DEBENHAMS.............................................................................................................................................19JOHNLEWIS..............................................................................................................................................20HOUSEOFFRASER.....................................................................................................................................21MARKS&SPENCER....................................................................................................................................22

3


DECEMBER5,2016

EXECUTIVESUMMARYInthisreport,welookatthefollowingthemesrelatedtoUSandUKdigitalshopping: how ecommerce overindexes during the holiday period; whyshoppersincreasinglyprefertotransactonline;thenewerdigitalretailtoolsthat are being used to draw in shoppers; and what major retailers havedonetoprepareforthecomingholidayseason.

The online channel’s share of retail sales generally goes up during theholidayseason,asshoppersturntoecommerceforconvenience.Abigpushfactoristheperceivedinconvenienceofshoppinginphysicalstoresovertheholidayperiod. InaFebruary2015surveyofUKconsumers,between39%and43%ofshoppersidentifiedunhelpfulstaff,queuingforlongdurations,shop crowds, expensive prices and poor shopping experience as the topproblems of shopping at a physical store. The pull factors for ecommercewereprimarilyeaseofshopping,lowpricesandbreadthofchoice.

Giventhepressuresonconsumers’walletsandthedemandsontheirtimeovertheholidayseason,weexpectconsumerstoturntotechnologytohelpthemoutmoreduringthisperiodthanatothertimes.AsurveyconductedbycomScoreandUPSintheUS,earlierin2016,foundthat56%ofshoppersuse a smartphone and 58% use a tablet to research products, and 44%complete the purchase on those devices. Meanwhile, fully 95% researchandpurchaseproductsonadesktoporlaptopcomputer.

About64%ofshopperssearchforideasontheirmobilephonesbeforetheyhead into a shop to make a purchase, and about 25% of mobile videoviewersintheUSvisitYouTubeforhelpwithapurchasedecisionwhiletheyare at a store or browsing a retailer’s website. At the same time, manyconsumers rely on retailers pushing out information to them in emails:some22%ofUSshopperssurveyedbyAdobeSystemsindicatedthatemailsfromretailersarethebestsourceof informationforonlineshoppingdealsandbargains.

Cartabandonmentremainsachallengeforonlineretailers,withtheonlinecartabandonmentrateupfrom59.8%in2006to68.5%in2015.Sixoutoften reasons customers cite for abandoning carts are related to filling outlongcheckoutformsormakingapayment.

Digital-shopping innovations, suchas Amazon’s Echo devices and theApplePaythumbscanner,andotherdigital initiatives at major retailers,look set to ease some of thechallenges faced by customers thatshop online and drive ecommercethisyear.

Source:Amazon

4


DECEMBER5,2016

INTRODUCTIONOnlineshoppingboomsduringtheholidayseason.Atthesametime,digital-shopping innovations abound, from Amazon’s Echo devices to customerservicechatbots,tomobilepaymentsandtheApplePaythumbscanner.

Inthisreport,welookatthefollowingthemesrelatedtoUSandUKdigitalshopping:

• Howecommerceoverindexesduringtheholidayperiod.

• Whyshoppersincreasinglyprefertotransactonline.

• The newer digital retail tools that are being used to draw inshoppers.

• Whatmajor retailers have done to prepare for the coming holidayseason.

THEECOMMERCESLICEOFTHEHOLIDAYRETAILPIETheholidayseasonisdoublyimportantforonlineretailing.Notonlyisitthepeaktimeofyearforretailoverall,buttheonlinechannel’sshareofretailsalesgoesup,asshoppersturntoecommerceforconvenience.

Wechartthistrendbelow,basedondatafromtheUSandtheUK.

We believe the trend for online to gain share over the holiday shoppingperiod underscores the complementary nature of instore and onlineshopping: the latter offers conveniencewhen consumers are undertaking“shopping-list shopping” and when they do not need the productimmediately.

Thetendencyforecommercetooverindexduringtheholidayperiodmeansstore-basedretailersmustofferonlineexcellenceandmustremainfront-of-mindforonlineshoppers,toavoidlosingsharetoInternet-onlyretailers.

Figure1.US:EcommerceasaShareofTotalRetailSales,2011-15

Source:USCensusBureau/ONS/FungGlobalRetail&Technology

6%

16%

2013 2014 2015 2016US UK

The share of online sales tototalretailsalesintheUSandUK tends to peak during theholidayseason.

5


DECEMBER5,2016

WHYDOSHOPPERSINCREASINGLYPREFERTOSHOPONLINE?Shoppersarepromptedtobuyonlinebyamixofpushandpullfactors.

A big push factor is the perceived inconvenience of shopping in physicalstoresovertheholidayperiod.InaFebruary2015surveyofUKconsumers,between 39% and 43%of shoppers identified unhelpful staff, queuing forlong durations, shop crowds, expensive prices and poor shoppingexperienceasthetopproblemsofshoppingataphysicalstore.

Thepullfactorsforecommercewereprimarilyeaseofshopping,lowpricesandbreadthofchoice.

Figure2.UK:ReasonsConsumersPreferOnlineShoppingtoIn-StoreShopping

Datafromtwosurveys:thesurveyontheexperienceofshoppinginstorewasconductedinFebruary2015(n=9,409)andthesurveyononlineshoppingexperiencewasconductedinJuly2015(n=10,505).Source:Which?

Weconsiderthekeytakeawayheretobethatonlineshoppingisviewedasmore efficient at a timewhen shoppers do notwish to turnmost of theirshoppingtripsinto“experiences”:theysimplywanttotickitemsofftheirlist.

PullFactorsforE-CommerceEasiertofindwhatI'mlookingfor:56%Itischeaper:53%Greaterchoiceofproducts:51%

PushFactorsFromStoresUnhelpfulstaff:43%Queueing:39%Shopcrowds:39%:Expensiveprices:39%Poorshoppingexperience:39%

Between39%and43%ofUKshoppersidentifiedunhelpfulstaff,queuingforlongdurations,shopcrowds,expensivepricesandpoorshoppingexperienceasthetopproblemsofshoppingataphysicalstore.

Source:Shutterstock

6


DECEMBER5,2016

THESHOPPINGJOURNEY:TECHNOLOGYANDSTORES

1. Technology’sRoleinShoppingResearchIn this section, we outline some of the key roles technology plays in theshopping journey. Given the pressures on consumers’ wallets and thedemandsontheirtimeovertheholidayseason,weexpectconsumerstoturntotechnologytohelpthemoutmoreduringthisperiodthanatothertimes.

Eventhoughmobiledeviceownershiphasgrownsubstantially, fewerthanhalfofUSconsumershaveresearchedorboughtproductsonsmartphonesandtablets.AsurveyconductedbycomScoreandUPSintheUS,earlier in2016,foundthat56%ofshoppersuseasmartphoneand58%useatabletto research products, and 44% complete the purchase on those devices.Meanwhile, fully 95% research and purchase products on a desktop orlaptopcomputer.

Figure3.US:Shoppers’Device-PreferenceforProductResearchandPurchase

n=5,330Source:comScore/2016UPSPulseoftheOnlineShopper

Smartphones and tablets are likely underindexing on purchasing becauseshoppersareusingthesedevicestobrowsewebsites,evenwhentheyhavelittleorno intentiontobuy:webelievethiskindof“downtimebrowsing,”undertaken by consumers simply killing time, dents conversion rates onmobiledevices.

Afurtherfactorinthehigherpurchaseratesontraditionalcomputersmaybe theperceivedadditional securityamoresophisticateddeviceprovides,thelargescreenonwhichproductsmaybeviewedclearlyandtheusabilityofretailers’appsandmobilesites.

95%

56% 58%

95%

44% 44%

DesktoporLaptopComputer

Smartphone Tablet

ResearchingProducts PurchasingProducts

About50%ofshopperswillfirstvisitastoretolookataproductandlaterbuyitfromanonlineretailer.

Some56%ofUSonlineshoppersuseasmartphoneand58%useatablettoresearchproducts,butonly44%completethepurchaseonthosedevices.

Fully95%ofconsumersresearchandcompletepurchasesonadesktoporlaptopcomputer.

7


DECEMBER5,2016

2016“TheYearoftheSupershopper”:Google’sInsightonShopperResearchBehavior2016willbe “theyearof the supershopper,”according toGoogle’sonlineadvertisingserviceAdWords.Thetechfirmdescribedtheresearchbehaviorof a supershopper and put forth some eye-opening stats that highlightmobile’simportanceinpushingconsumerstobuy:

• Some 50% of holiday shoppers were open to buying from newretailers, and at least 76% have changed their mind about theretailerorbrandtheychosetobuyfrom,aftersearchingonGoogle.

• About 64% of shoppers search for ideas on their mobile phonesbeforetheyheadintoashoptomakeapurchase,andabout25%ofmobile video viewers in the US visit YouTube for help with apurchasedecisionwhile theyareat a storeorbrowsinga retailer’swebsite.

• Fully76%ofshopperswhosearchforthingsnearbyontheirphonesvisit a related store within a day, and 28% of those convert to apurchase.

At the same time, many consumers rely on retailers pushing outinformation to them in emails: some 22% of US shoppers surveyed byAdobeSystems indicated thatemails fromretailersare thebest sourceofinformationforonlineshoppingdealsandbargains.Theleasthelpfulsourcewaspushnotificationsfrommobileapps—only5%ofthosesurveyedfoundthemuseful.

Figure4.US:BestSourcesforOnlineHolidayShoppingDealsandBargains,2016

n=1,000Source:AdobeDigitalInsightsHolidaySurvey2016(UnitedStates)

2. PhysicalStoresStillHaveaBigRoletoPlay,butLessThanBeforeShoppers are increasingly channel-agnostic, browsing and buying acrosswhicheverchannels suit theirneeds.A survey fromDeloitte indicates that66% of US shoppers research products online before completing thepurchaseataphysicalstore,while50%willfirstvisitastoretolookatthe

5%

11%

12%

13%

14%

21%

22%

PushNolficalonFromApp

SocialMediaSites

OnlineNewsMedia

DisplayAdSeenWhileBrowsing

In-PersonConversalonwithFriends/Family

AdSeenFromSearch

EmailDirectlyFromRetailer

About66%ofUSshopperswillresearchproductsonlinebeforecompletingthepurchaseataphysicalstore.

8


DECEMBER5,2016

producttheywishtobuy,andlatercompletethepurchaseonlinewiththeretailer that offers the best deal. The survey also found that 43% ofshopperswillmakeapurchaseonline,butvisit a store to collect it,whichgives retailers an additional opportunity to interact with and sell moreproducts to the customer. In the same survey, some 35% of consumersindicated that they prefer to research and then buy online, and 29% saidtheyprefertoresearchandthenbuyin-store.

Figure5.US:ChoiceofChannelforResearch,PurchaseandPickupforthe2016Holidays

Source:Deloitte

3. CheckingOutandPayingOnlineisStillComplicatedCart abandonment remains a challenge for online retailers.Web usabilityresearch firm Baymard Institute found that average global cartabandonment (aborting an online purchase) rates have been mostly thesame over the past decade, and have not declined significantly despiteadvancementsinecommerce.

66%

50%43%

Researchin-store,buyonline

Researchonline,buyin-store

Buyonline,pickupin-store

Theonlinecartabandonmentratehasgrownfrom59.8%in2006to68.5%in2015.

Source:Shutterstock

9


DECEMBER5,2016

Infact,theonlinecartabandonmentrateincreasedfrom59.8%in2006to68.5%in2015.

Figure6.GlobalOnlineShoppingCartAbandonmentRate

Source:BaymardInstitute

In a survey conducted by Baymard earlier in 2016, online shoppers wereasked why they would abandon their carts if they did set out tomake apurchase.Responsesvariedfromproblemswiththeadditionalcoststotheretailer’spolicies,tothedesignofthewebsiteitself.

Six out of the ten reasons listed below are related to filling out longcheckoutformsorhavetodowithmakingapayment.

Figure7.ReasonsforUSOnlineShoppersCartAbandonment,Jul–Sep2016

n=1,044. Survey participants were asked why they abandoned online purchasesduringcheckout in thepast3months.Thestatisticsexcluderespondentswhowere“justbrowsing.”Source:BaymardInstitute

59.8% 61.4% 62.0%66.1% 64.8%

68.9%72.0% 71.2% 68.1% 68.5%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

5%

8%

10%

16%

18%

22%

24%

27%

35%

61%

Thecreditcardwasdeclined

Thereweren'tenoughpaymentmethods

Returnspolicywasn'tsalsfactory

Deliverywastooslow

Ididn'ttrustthesitewithmycreditcardinformalon

Websitehaderrors/crashed

Icouldn'tsee/calculatethetotalordercostupfront

Long/complicatedcheckoutprocess

Thesitewantedmetocreateanaccount

Extracoststoohigh(shipping,taxandfees)

Some61%ofshoppersabandontheironlineshoppingcartduetohighadditionalcostssuchasshipping,taxandotherfees.

10


DECEMBER5,2016

DIGITALRETAILTOOLSTOBOOSTECOMMERCEThe following technologies are bringing new convenience to onlineshoppingthisholidayseason:1)Amazon’svoiceshoppinganddashbuttons;2)mobilepaymentsandtheApplePaythumbscannerinthenewrangeofMacbooks; 3) retail channels on the IFTTT platform; 4) rapid delivery;5)smarterclickandcollect;and6)customerservicethroughchatbots

1. Amazon’sVoiceShoppingandDashbuttonsIn the run up to its Prime Day shopping event earlier this year, Amazonlaunchedvoice-commandshoppingvia itshostofAI-poweredsmarthomedevices,includingEcho.AmazonPrimecustomerswhohaveanEchodevicecouldshopexclusivedealsmerelybytellingthedevice,“Alexa,orderxyz”,aslongasthe“xyz”productwaspartofthee-tailer’sPrimeoffering.

This year, Amazon kicked off its holiday deals on November 1, andannouncedthatitwillrun52daysofBlackFridaydealsuntilDecember22.Amazon Primemembers can use the Echo, EchoDot, Tap, Fire TV or FireTablet to ask, “Alexa, what are your deals?” and gain exclusive access toshop“hundreds”ofthesedealsonthewebsite.

Japanese investment firmMizuhoSecuritieswrote inanote inSeptember2016, that the revenue generated by Amazon’s Echo devices and Alexacouldamounttonearly$11billionby2020.Thatisabout$4billionfromthesalesof theEcho, EchoDot andTapdevices, and the remaining$7billionfrom the ecommerce transactions facilitated by these devices and carriedoutonAmazon.com.Mizuhonotesthattheseareearlyestimates,but it isvery likely that the retailer’s domination in the online space will bereinforcedbysalesmadethroughthesmartdevices.

Amazon’s product-specific Dash Buttons help replenish fast-movingconsumer goods (FMCG)productsonce they aredepleted. Customers canplace orders for cat food, detergent, coffee and a multitude of otherproductswithouthavingtogoonlineeachtime.

TherevenuegeneratedbyAmazon’sAlexa-enableddevicescouldamounttonearly$11billionby2020,i.e.about$4billionfromthesalesoftheEcho,EchoDotandTapdevices,andtheremaining$7billionfromtheecommercetransactionstheyfacilitate.

Source:Amazon

11


DECEMBER5,2016

2. MobilePaymentsandtheApplePayThumbScannerintheNewRangeofMacbooks

The surge in mobile payment options and retailers releasing their ownmobile payment apps will give greater choice in completing purchasesonline. Apple unveiled a new set of MacBook Pros in October 2016 thatcomewithaTouchBarover thekeyboardarea.TheTouchBar isenabledwith a fingerprint scanner that supports authentication and the techcompany’smobilewallet,ApplePay.

Customers that shop on Apple Pay-supported retail websites can makepayments at checkout simply by scanning their finger and not have to gothroughasometimes-lengthysecuritycheckthatbankshave inplace.Thisfeaturecouldprovidealiftinconversionrates,asitreducessomefrictioninthecheckoutprocess.However,asthisisnotexclusivetoasingleretailer,itmaynothelpimproveoneretailer’spropositionagainstanotheriftheybothsupportApplePay.

3. RetailChannelsontheIFTTTPlatformIFTTT (“If This, Then That”) is a task-management service that is beingutilized by Best Buy, Home Depot and, more recently in the UK, Tesco.Shoppers can set up rules to be notified about specific products or addproducts to their shoppingcartsautomatically. Forexample, shopperscanchoose to be notified immediately if the price of a product changes, orspecific products can be added to the basket if the temperature rises ordrops.

4. RapidDeliveryAmazon’sPrimesame-dayornext-daydeliveryincertainpostalcodesintheUS and the UK, British grocer Sainsbury’s Chop Chop one-hour deliveryservice in the UK and similar services by other retailers that help thecustomer receive quick delivery of their products, can help boost onlinesales.

CustomersthatshoponApplePay-supportedretailwebsitescanmakepaymentsatcheckoutsimplybyscanningtheirfingerontheNewMacBookPro’sTouchBar.

Source:Shutterstock

12


DECEMBER5,2016

5. SmarterClickandCollectSmart click-and-collect solutions being offered by retailers provides afurther push to the convenience of online shopping, and helpsmake it amore efficient exercise. Collection lockers such as Amazon’s at strategicpoints, convenient collection points facilitated by parcel-collection serviceDoddle and other such secondary services, and automated pickup kioskssuchasthosethatWalmartistrialing,arebecomingmorecommonplace,asshoppers make the most of the ease that click-and-collect provides overshoppingatastore.

6. CustomerServiceThroughChatbotsManywebsitesandappstendtohavecustomerserviceavailablethroughachatpop-upwindow.Havingquestionsansweredinstantlythroughchatbotsoutdoes having to search for staff at a store to helpwith a query. Store-specificmobilechatbots,suchasMacy’sOnCallwhichprovidesanoptiontopagestorestaff,arereportedlystillindevelopment,butmanyretailerssuchas H&M and Sephora are interacting with customers through messagingserviceKik.

As such technology develops and new tools emerge to make shoppingonlineincreasinglyeasier,wewillseeecommercegainingfurthershareoverphysical-storeretail.Inthenextsection,wecatalogsomeoftheleadingUSandUKretailersandtheirdigital-channelfeaturesandholidayretailpoliciesthatmakeholidayshoppingwiththemconvenientandefficient.

Smartclick-and-collectsolutionsbeingofferedbyretailersprovideafurtherpushtotheconvenienceofonlineshopping,andhelpsmakeitamoreefficientexercise.

Source:Macys

13


DECEMBER5,2016

USRETAILERCASESTUDIESInthissection,weoutlinedigitalinitiativesthatmajorUSretailershaveundertakenthisholidayseason.

Apart fromAmazon’s voice-shopping feature in its products and itsDashButtons, theonline retail gianthasmovedoneupover itsomnichannelpeerswith itscampaignthisyear. Insteadofrunningpromotions justonBlackFridayandthefollowingweekend,AmazonhaschosentopromoteitsdealsandoffersfromNovember1toDecember22,thisyear.

HolidayCampaign/Theme “HolidayMadeEasier”

DigitalChannelFeatures • Amazonhasaholidaygiftguidefeaturedonitswebsite,butabigfocusisonitsBlackFridaydeals,whichrunfor52daysthisyear.Theretailerhassaidthat “customers can enjoy tens of thousands of deals this holidayseason…withnewdealsasoftenaseveryfiveminutes.”

• Starting from November 15 this year, customers can see what is in theirpackageswithoutopeningthem.TheycandothisbyscanningthebarcodeontheparcelusingthecameraintheAmazonshoppingapp.

• Customerscanalsouse thecamera feature in theapp to takeapictureofproductsandidentifysimilaritemsintheonlinestore.

HolidayRetailPolicies • Amazon already offers fast shipping to its Prime members. It notes thatPrimememberswillhave30-minuteearlyaccesstolightningdealswithfreetwo-dayshippingonmorethan30millionproducts,freesame-daydeliveryon1millionproducts to about27 cities andone-or two-hourdelivery forthousandsof“PrimeNow”products.

Source:Amazon

14


DECEMBER5,2016

Walmarthasbeenaggressivelyworkingonitsholidaypropositionthisyear.It iskeenonhelpingitscustomer“holidaybetter”andhasthemeditspromotionsbehindthisidea.

HolidayCampaign/Theme “HolidayBetter”

DigitalChannelFeatures • Anincreaseinitsonlineassortmentfrom8millionatthestartoftheyearto20millionduringtheholidayseason.

• “Early Bird” pre-holiday sales began on November 1 to compete with itspeers.

• Walmart.comfeaturesatop-20listof itemswithexclusivedealsandpriceseverydayduringtheholidaypromotionperiod.

• Theretailerhasalso increasedthenumberofproductsthatcanbeboughtonlineandpickedupinstore,throughitsin-storecollectionservice—Pickup.

• Lastyear,itunveiledamobile“checkin”featuretofacilitateeasierin-storepickup.

HolidayRetailPolicies • Walmart has expanded its assortment available for Pickup and has alsorecruited additional staff, or as it calls them “Holiday Helpers”, to helpcustomersnavigatethroughthestoreseasilyandcollecttheirproducts.

• Walmart recently testeda giant self-servicepickup kiosk in itsBentonville,Arkansasstore.Customersneedtoentertheirordernumberintoascreenatthekiosk,whichhasbeenstockedwithproductsscheduledforpickupthatday. The kiosk then retrieves the product and presents it to the customerthrough a window, similar to a snack-vending machine. This is still in atesting phase, and the retailer has not yet mentioned when this will bedeployedformainstreamuse.

Source:Walmart

15


DECEMBER5,2016

USretailerTargetofferedfreeshippingduringtheholidayseasonlastyear,whichhelpeditgrowitsonlinesalesby34%.Theholidaypromotionperiodthisyear,runsfromNovember1toJanuary1,withanadditionalweektoincludeHanukkah. In a TV spot titled “The Toycracker,” Target has enlisted singer John Legend andhiswifeChrissy Teigen to portray the retailer’s Broadway-style take on the popular musical “The Nutcracker.” Theretailerhaswoveninthe“spectacular”themethroughitsvisualmerchandiseinstoresanditswebdesign.

HolidayCampaign/Theme “MakeTheHolidaysSpectacular”

DigitalChannelFeatures • Target’s online shop features a Wonderlist—its holiday gift guide thatincludesfindingagiftforrecipientsbymatchingtheirpersonalitytooneofthefourtypesfeaturedinthelist.

• Theofflineversionisthe“Wondershop,”anoticeableshop-in-shopspaceineach store with a curated assortment of over 2,000 products for holidaygifting.

• Anincreaseinthetotalproductassortmentonlineandoffline.

• Targetwillrun10daysofdealsondifferentproductseachday,similartotheoneitranin2015.

• Cartwheel, the retailer’s digital savings app, will feature deals that werepopularlastyear,suchas50%offononetoyperdaybetweenNovember1andDecember24.

HolidayRetailPolicies • Free shipping on all purchasesmadeduring this period,with nominimumspendrequired.Targethighlightsthatthereisanextraweekoffreeshippingthisyear.

• Target has added an additional 600 locations to which its stores can shiporders,inordertoshortendeliverywindows.

• Ithasimprovedthespaceddesignatedforordersthatarepickedupin-store,addingclearersignstodirectshoppers.

Source:Target

16


DECEMBER5,2016

Department-store retailer Kohl’s released its plans for the holiday season with the statement that “Kohl’smakesiteasyforcustomerstoshop,saveandfindtherightgiftthisholidayseason.”Herearesomeofthewaysitisdoingthis.

HolidayCampaign/Theme “EasyForCustomersToShop,SaveAndFindTheRightGift”

DigitalChannelFeatures • The retailer launched its own digital-payment app Kohl’s Pay earlier inOctober this year. The app integrates its credit card Kohl’s Charge and itsloyalty rewards scheme Yes2You, allowing users to access these featuresfromoneplace.

• TheKohl’smobileshoppingappallowsshopperstoscanandstoreKohl’sgiftcards,Kohl’sCash(pointsthatcanbeearnedonpurchasesandspentduringapromotionperiod),andothersavingsoffers.

• The app also features a “store mode” that provides a more customizedshoppingexperienceforcustomers.Theycanusethe“snapandshop”tooltotakepicturesofproductstheywishtobuyandfindsimilaritemsin-store.

• To help shoppers find the right gift, Kohl’s has categorized products by“gifting personas” such as Fitness Fans, Dashing Dudes, Healthy Heroes,Holiday Hosts, Toy Techies, Winter Warriors, Beauty Queens and more.Thesepersonasallowshopperstofindproductsrelatedtothemin-storeandonline.

• Some key products that Kohl’s has identified as “The Best Gift Ever” willfeature a bright red bow on them in-store and in the “Holiday Gift Shop”onlinetohelpshoppersfindthemeasily.

HolidayRetailPolicies • This season, Kohl’s is offering faster shipping times for products boughtonlineandfreesame-daypickupin-store.

• For theKohl’sCashpromotions, customersnormallyget$10 forevery$50spentduringtheperiod,andoverNovember21–26,customersgetanextra$5,i.e.$15forevery$50spent.

Source:Kohls

17


DECEMBER5,2016

Department-storechainNordstromisfocusedonmakingitscustomersthecenterofitsholidaycampaignthisyear.Itspromotionsarethemedaroundbeinggratefultoitscustomers,andithasfeaturedabout30ofthesecustomersin itsadcampaigns.Thecampaignisalreadyunderway,andshopperscanbuyholidaygiftsonlineand in-store,but the retailerwill launch itsholidaypop-upshopsonNovember18andspecially themedgiftoffersfromNovember25.

HolidayCampaign/Theme “Love,Nordstrom”

DigitalChannelFeatures • Theretailer’s stores,appandwebsite feature thecampaign,but ithasnotyetactivelydetailedanypromotionsyet.

HolidayRetailPolicies • Nordstromoffersfreeshippingandreturnsthroughouttheyear.

• For online orders, the retailer offers pickup in-store and even curbsidepickup—thecustomercancallortextthestoreandstaffwillbringtheordertothecar.

Source:Nordstrom

18


DECEMBER5,2016

Department storeMacy’shas longbeenknown for itsThanksgivingDayParade,whichofficially kicksoff thestartoftheholidayseasonandisnowinits90thyear.Ithasputtogetheraholidaygiftguidefeaturingsomeofitstopproductsforholidaygifting.GiftingspecialistsorMyStylist@Macy’spersonalshoppersareavailabletoprovideindividualservicestocustomers.

HolidayCampaign/Theme “TheJoyofGiving”

DigitalChannelFeatures • Macy’shomepagefeaturesaholidaygiftguidetabthattakestheshoppertoapagewithholidaygiftscategorizedbyrecipient,purposeandtheretailer’sownpicks.

HolidayRetailPolicies • Ordersneedtobeaminimumof$99toqualifyforfreeshipping.

Source:Macys

19


DECEMBER5,2016

UKRETAILERCASESTUDIES

Inthissection,weturntodigitalinitiativesatmajorUKretailersthisholidayseason.

BritishretailerDebenhamskickedoffits“FoundIt”holidaycampaignonOctober20,2016.Itsthemefocusesonshoppersfindingtherightgift/productforeveryone,atDebenhams.

HolidayCampaign/Theme “FoundIt”

DigitalChannelFeatures • The desktop website features a “Found it For Christmas” area with aChristmasgiftguide.

• Themobileappfeaturesaholidayshop,butitisnotveryprominentyet.

HolidayRetailPolicies • Theusualperiod to return itemsatDebenhams iswithin28days fromthedateofpurchase. Itemsboughtonlineor in-storeasgiftsfromOctober20,2016canbereturnedbeforeJanuary31,2016,withsomeexceptions.

Source:Debenhams

20


DECEMBER5,2016

JohnLewismovedmanylastyearwithits“ManontheMoon”Christmasadvert,andthisyear,thereismuchanticipationthatthe2016advertwillbeatear-jerkeraswell.

HolidayCampaign/Theme “ForaChristmasthateveryonewilllove”/“Giftsthateveryonewilllove”

DigitalChannelFeatures • John Lewis’s app and website feature an area for Christmas gifts,decorationsandhomewares.

• The products are also categorized by theme to help shoppers find relateddecorationsandhomewares.

• TheChristmasshophasan“IdeasandInspiration”areathatpresentweeklycountdownplannersthathelpcustomersformulatetheirshoppingplans inadvance.

HolidayRetailPolicies • John Lewis has outlined its latest dates for orders that can be deliveredbeforeChristmas,onitswebsite.

• The costs andminimumorder values for delivery and click-and-collect arethesameasduringnon-holidayseasontime.

• John Lewis already runs a 90-day returns policy, and has not outlinedanythingspecificforChristmaspurchases.

Source:Johnlewis

21


DECEMBER5,2016

HouseofFraser’shomepagedisplaysabrightlycolored“Christmasiscomingforyou”graphic,withvariousgiftcategoriesdisplayedbelowit.

HolidayCampaign/Theme “ChristmasisComingForYou”

DigitalChannelFeatures • Thewebsiteandapphavethe“Christmasiscomingforyou”graphicandgiftitemsasthecentralfocusoftheirlandingpages.

• The House of Fraser magazine/blog features several posts related toChristmasgiftinganddressing.

HolidayRetailPolicies • Just like Debenhams, House of Fraser has an extended returns period foritems bought after October 23, 2016. Customers can return items toexchangeor refund for a gift cardor aneVoucher if returnedonline, untilJanuary22,2017.

• House of Fraser has outlined the rates and times for delivery beforeChristmasonitswebsite.

Source:Houseoffraser.co.uk

22


DECEMBER5,2016

TheChristmasshopatMarks&Spencer’s isopen,withaslightly lessprominenttabandgraphicon itshomepage.Theretailerhasgiftscategorizedbyrecipientandidea,andhasacollectionofdecorationsonoffer.

HolidayCampaign/Theme “Christmaswithlove”

DigitalChannelFeatures • Whilethefestivefervorisnotyetthecentralfocusofthewebsite,M&Shasbeen publishing detailed Christmas-related content on its blog. SinceOctober 25, it has featured at least five posts on Christmas planning,dressingandentertainment.

HolidayRetailPolicies • M&Shasanextendedreturnspolicy.CustomerscanreturnallitemsboughtafterSeptember12,2016until January15,2017,exceptforthoseoutlinedintheretailer’sstandardlistofexclusions.

• M&ShasoutlinedtheratesandtimesfordeliverybeforeChristmasandNewYearonitswebsite.

Source:Marksandspencer

23


DECEMBER5,2016

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJohnMercerSeniorAnalyst

SwaroopraniMuralidharResearchAssistantHONGKONG:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017

FungGlobalRetailTech.com

Documents

Holiday 2016 Digital Retail Trends December 5 2016...2016/12/05 · Source: comScore/2016 UPS Pulse of the Online Shopper Smartphones and tablets are likely underindexing on purchasing