© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 1
Norrelle Goldring, Head, Shopper Experience & Retail Performance
October 2014
F U T U REBU Y | 2 014
.
Bricks & (Mortar) Mobile: The industries
in Australia winning the battle.
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 2
We view retail evolution
as similar to Charles
Darwin’s description of
evolution:
It’s not the strongest
of the species that
survives nor the most
intelligent, but the
one most responsive
to change.
Ruslan Kogan, October 2014
(Qantas Magazine)
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 3
Futurebuy is GfK’s proprietary survey of shopper attitudes and behaviours- run
annually since 2009
GfK Futurebuy 2014 Overview
FMCG • Beauty and Personal Care
• Packaged Food/Bev
• Household Washing and
Cleaning products
• OTC Healthcare
Consumer Durables • Consumer Electronics
• Mobile Phones
• Home Appliances
Services • Financial Services
• Healthcare Services
• Meals at Restaurant
Other • Automotive
• Toys
• Apparel
• Home Improvement
• Home and Garden
15 Categories…
Australia
Canada
Mexico
US Romania
Germany Poland
Spain
France
Russia
Bulgaria
Columbia
Argentina
Brazil
Korea China Japan
20
minute
17 Countries…
Online Survey N = 1000 per country (18+)
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 4
GfK Futurebuy Shopper Survey Topics:
Only a small portion of these we are talking to today
Omni-Channel Shopping • Drivers of channel choice
• Prevalence of omni-channel behaviour
• How utilizing mobile devices?
Touchpoints • Sources of info
• Most influential in shopping process
• Product choice drivers
Special Topics • Social media role
• Showrooming
• Privacy/security
• Generational differences
• Leading edge consumers (LEC)
Mobile payments • How participating?
• Barriers to participating
• Attitudes toward adoption
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 5
By ‘shopping’ we mean:
“The process of browsing, comparison
shopping, information gathering, or the
actual purchase of products and
services”
By ‘omnichannel’ we mean:
“Shopping across both online and
physical store channels”
Definitions for this survey
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 6
Agenda
1
2
3
Context How Australians are shopping
What’s more important to Australians now?
Where is the game going – GfK’s Four ‘predictions’
And if we have time … retailer and manufacturer readiness for omnichannel shopping and digital shopper marketing
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 7
1. How are Australians shopping?
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 8
Context: Size of Australian online retailing
8
Domestic Australian spend proportion of
total online spend by Australians
(source: NAB, July 2014)
75%
Amount this equates of
spend at traditional
bricks & mortar stores
(source: NAB online
retail sales index)
$15.5b
6.6%
Online shopping anticipated growth.
(source: IbisWorld)
Increase by end
2015
10% 24%
Annual growth
2009-2014
Number of Australians (and 18-29yos) claim
to shop online at least once a week
(source: Ebay Aust)
57% 76%
• Grocery, liquor, electronic games online retail spend
• Daily deals, personal & recreational goods online retail spend
• Fashion, department and variety stores, homeware appliance stores
online retail spend growing but slowing (source: NAB online retail sales index)
Spent on online retail in the
12 months to June 2014.
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 9
Q13. Which of the following shopping activities have you engaged in over the past 6 months using the internet?
Usage of Internet for shopping continues its upward trend
23%
60%
66%
67%
69% Searching for best price
Make purchases
Check for general information about products
Finding products & services
Use social media to
exchange /post info about
product/service
vs 2013
7pts
6pts
9pts
9pts
7pts
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 10
Q12: Which of the following devices have you used to help you shop for a product in the past 6 months?
With smartphones and tablets increasing shopping usage
substantially, as desktops decline
24%
34%
17%
81% Computer at home
Computer
at work
Smartphone
Tablet
vs 2013
9pts
7pts
11pts
9pts
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 11
The top shopping tasks conducted on mobile devices are
highly functional, rather than sharing or social media based
Q16_01. Let’s focus on the last time you used your [DEVICE to help you shop for [CATEGORY]. In which of the following ways did you use your [DEVICE] when you were shopping? – Top 10 tasks
Compareprices
Search forproduct info
Checkproduct
availability
Locate astore
Accessproductreviews
Paid forproduct
Buy productthrough an
app
Get salesalerts
Text afamily/friend,to check with
them
Write a list ornote
Tablet Smartphone
30%
10%
20%
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 12
Travel insurance on mobile
Because travellers are on the go before and during holidays
AAMI Insurance example: mobile transactions options and a
way of linking information
Claims App
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 13
ConsumerElectronics
Apparel,Footwear
Automotive Toys HomeAppliances
MobilePhones
Financialservices
Beauty &personal care
HomeImprovement
HealthcareServices
Lawn &Garden
OTChealthcare
Packagedfood & bev
Restaurantmeals
Householdcleaning
Onlineonly
Both
Some categories are playing the omnichannel game better
than others
Q2: And have you shopped for each of the below exclusively online, exclusively instore, or both?
50%
Omni-channel driven categories In store driven categories
25%
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 14
S h o p o n l i n e O N LY
Online-only shopping tasks has increased exponentially in
some categories, even if off a small base in some cases
14%
7%
4% 3%
1%
21%
18%
14%
7%
9%
5%
15%
30%
2013 2014
Q2: And have you shopped for each of the below exclusively online, exclusively instore, or both?
Mobile
phones
Consumer
electronics
Automotive Home
appliances
Apparel Toys Household
cleaning
Beauty &
personal
care
OTC
healthcare
Home
improve
ment
Lawn and
garden
Packaged
food and
bev
Health
care
Services
Financial
Services
Meals at a
restaurant
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 15
Example: Online retailing in Australian grocery increasing
Now 15% of Australian online retail sales transactions
15
Share of online shopping industry
(source: IbisWorld, May 2014)
202
Click & Collect stores, of a total
931 stores (source: SMH)
WW Ltd Wes
Farmers
Grocery and liquor online sales
growth.
Fastest growing sector (source: NAB online retail sales index)
WW online revenue increase (source: SMH – Rose Powell)
2013 2014
8.7% 16%
9.9%
$0.8% $1.2b
50%
WW ‘dark store’, Mascot,
Aug 2014
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 16
The growth of omnichannel shopping behaviour means the
new grocery meal shopping purchase journey is moving to …
POINT 1 Daily menu suggestion sent to phone/tablet
POINT 2 Order online
POINT 3 Have delivered to home, or click & collect
(pick up instore)
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 17
2. What’s important for Australians now?
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 18
Bricks and Mortar evokes softer/more social attributes
Q5. Thinking about the times you shopped online/instore in the past 6 months, which attributes below best describe your overall experience?
Online Shopping Evokes Functional Associations, and modernity
Top Descriptors of Shopping Experiences (Aust)
Effortless
Satisfying Organized Social
Friendly Safe
Satisfying
Personal
Easy
BRICKS & MORTAR
Fast
Modern
Easy
ONLINE
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 19
Q4: Thinking about the last time your were deciding whether to purchase something online versus in a store, what factors were most important?
Drivers Of Channel Choice By Format
Reveals Divergent Strengths
Advantage- Bricks and Mortar
Advantage- Online
“More enjoyable experience.”
“Best advice.”
“Good relationship with retailer.”
Store 22%
Online 18%
Store 14%
Online 8%
Store 11%
Online 7%
35%
39%
44%
53%
58%
9%
16%
26%
26%
6%
“See and feel before buying.”
“Get products sooner.”
“Can buy other things at same time.”
“Routinely shopping there already.”
“Hassle-free returns.”
21%
27%
23%
27%
44%
46%
53%
61%
16%
5%
11%
18%
28%
21%
24%
28%
“Save money.”
“Easier.”
“Better selection.”
“Faster.”
“Better information.”
“Better delivery options.”
“Already have account set up.”
“Better payment options.”
More even
Bricks & Mortar Online
Speed, convenience, tactile
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 20
Q8. When shopping for [category], how important was each of the following factors in your shopping decision?
Experience and In-Store environment still top the
‘Touchpoint Influence Hierarchy’
Previous Experience
• Retailer
• Brand
• Store catalogues
• Gen. shop sites
• Product samples/demos
• Consumer opinion sites
• Packaging
• Retailer sites
• Brand sites
• Price sites
• TV/Print
• Brochures
• Online advertising
• Online expert reviews
• Ability to pay with mobile
• Social media
• Shopping apps
• Retailer apps
• Manufacturer apps
• Shelf info
• Coupons
• In store displays
• WOM-friends and family
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 21
Q7. Below are different statements about shopping. Compared to a year ago, would you say you are doing more, less or about the same of each activity?
But it’s use of digital touchpoints and activities that is
increasing
(Increase of 20pts+) (Increase up to 19pts)
Purchase over
web
Use Google to
shop
Use web to find
products
Shop with mobile
phone
Manufacturer
website coupons
Cross-retailer price
comparisons
Research
products on web Find products via
web
Shopping list
creation
Brand/retailer
apps
Online coupons
Click ad to buy
Store
circular/coupons “Webrooming”
Email coupon
Shopping apps
Mobile payments Geo location
apps
Advice from
friends/family
Shop from mail
catalog
Paper coupons
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 22
Example: Lowe’s Holoroom – An Immersive Augmented
Reality Reason To Visit Store
United
States
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 23
Example: Ikea Interactive Catalogue 2014
Scan to unlock extra content
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 24
Audi Virtual Store – ‘Audi City’
In February 2014, Audi City Berlin launched the 3rd of Audi’s Virtual Showrooms
Featuring digital technologies; Kinect “power wall”, multi-touch tables, 3D virtual
driving experience and RFID.
This showroom is almost completely digital and virtual, meaning there is only one
or 2 cars in the showrooms
https://www.youtube.com/watch?v=afJAtAVb4k0
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 25
Transacting online instore: The ‘endless aisle’ that enables
smaller physical store footprints
J o h n L e w i s
2 0 11
A l l S a i n t s ,
2 0 1 2
Ta r g e t ,
2 0 1 4
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 26
Example: Medadvisor app manages medicine prescriptions
Features include:
• Smart medications list
• Script refill reminders
• GP visit new script reminders
• Take my meds
• Tap to refill
• Medication info
• My favourite pharmacy
• Pharmacy locator
• Carer mode
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 27
Nestle recipes in Woolworths using Tapit, August 2014
Shoppers tap the enabled aisle fin and take home new recipe ideas from
Woolworths Fresh magazine.
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 28
My Best Buy Rewards app, US
• In-store mode gives rewards points for checking in to geo-fenced Best Buy locations
• Scan items for product information and videos – option to purchase through the app
• Targeted promotions get pushed to phone while in-store
Best Buy Becomes The Ultimate Showroom
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 29
Using your mobile camera, In a Snap recognizes select ads, makes a "snap"
sound, and then provides additional information about the product in the ad
Target In A Snap - Make Purchases From Print Ads
United
States
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 30
L’Oreal– Virtual Kiosk In NYC Subway For Makeup On The
Go …that matches your outfit
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 31
3. And where is the game going? GfK’s four future
‘predictions’
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 32
Source: GfK Futurebuy 2014
Leading Edge Consumers (LEC) - Our Tour Guides To
“Future Of Shopping”
Early Adopters
Passionate
Shoppers
Influentials
• Innovators that value new
products or ideas “before their
time”, and that are also
predictive of the rest of the
population
• Emotionally
connected to
shopping and thus,
highly involved
• Leading indicators of
trends with a history
of being years ahead
of the mainstream;
word-of-mouth
leaders who are often
called upon by others
to offer advice,
insight, information
15% of sample identified via proprietary questions and analytics
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 33
‘The relevance of
Bricks & Mortar
retail, in its current
form, will continue
decreasing’
45%
44%
45%
71%
71%
70%
“Traditional stores much less important to my
shopping than few years ago.”
“I can shop for nearly 100% of things I
need online.”
“I can see future were traditional retail stores
not a big factor in my shopping.”
1st. Prediction
Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 34
2nd. Prediction
32%
62%
60%
72%
76%
76%
80%
81%
“Feel more in control than ever before when
shopping.”
“Now less loyal to any one brand.”
“More loyal to brand/retailer that gave me input to
what I buy.”
“Now less loyal to any one retailer.”
Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B
‘Loyalty will be
scarce, unless
shoppers feel
involved’
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 35
3rd. Prediction
34%
29%
20%
61%
62%
65%
“My mobile device is quickly becoming my most
important shopping tool.”
“I am planning on making more mobile payments in
the next 12 months.”
“I make mobile payments whenever possible.”
‘Mobile devices will
become “Work
Horses” of
shopping, with
many jumping on
mobile payments’
Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 36
4th. Prediction
38%
69%
71%
83%
“More concerned about security of personal
information after shopping online (vs the store).”
“I like it when website keeps track of my visits and
recommends things for me.”
‘Security concerns
could be
overlooked if it
comes with a
tailored benefit’
Q3. Below are different statements about shopping. Indicate how much you agree od disagree with each. T2B
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 37
Takeouts
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 38
GfK Futurebuy 2014 – Some Key Takeaways
Omni-Channel coming soon to your category!
• Rapidly cascading from high
value and involvement
categories to FMCG
• Winning requires delivering
seamless and compelling
omni-channel shopping
experience
• Mobile set to overtake
desktops, and then, laptops
Mobile optimisation necessity
• Mobile devices influencing
majority of purchase
decisions
• Mobile payments increasing
• Optimisation of websites
and mobile for payment
necessity not luxury
Four future predictions
1. The relevance of Bricks &
Mortar, in its current form,
retail will continue
decreasing
2. Loyalty will be scarce,
unless shoppers feel
involved
3. Mobile devices will
become “Work Horses” of
shopping, with many using
mobile payments
4. Security could be
overlooked if it comes with
a tailored benefit
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 39
Mobile is the
mouse of the
physical world
Steve Sadove, Chair National Retail
Federation, at the World Retail
Congress, Paris, October 2014
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 40
THANK YOU
Norrelle Goldring
Head, Shopper Experience & Retail Performance
P: +61 2 9900 2888 | M: +61 437 335 686
Ask us about:
• Access to the Futurebuy
portal
• Customised presentation for
your category
Further reading:
• “The digital future: a game plan
for consumer packaged goods”,
August 2014,
Google/GMA/BCG/IRI
• IBM Smarter Consumer Study,
2014
• NAB online retail sales index,
July 2014
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 41
Appendices
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 42
Q15a And which devices have you used to help you shop for the below products and services in the past 6 months?
Mobile Shopping Predominant In Select Categories
Consumer
Electronics
Toys
Top Categories Shopped On Mobile Device (AUST)
27% 29% 29%
31% 34%
Home
Appliances
Auto Mobile Phones
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 43
Source: GfK Futurebuy 2014
Free Delivery Remains King In Driving More Online Purchases
Most Important Factors to Get Me to More
Online Purchases Next Year(Aust)
41%
42%
43%
46%
46%
69%
Free Delivery
Discounts on bulk purchases
Better Loyalty Programs
Daily/Weekly Deals
Same Day Delivery
Holiday/seasonal
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 44 44
Google Express Enters The “Same-Day Fray”
United States
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 45 45
Differences In Shopping Attitudes And Behaviours
Evident Along Generational Lines
GEN Z GEN Y GEN X Boomers Silent/GI
Social natives Book smart
& savvy
Street smart
& skeptical
Education
generation
Educational
divides
Fun and frugal Fun first,
hard work next Get it done
Break the mold –
be me Do what’s right
Connected Confidence No drama Agelessness Integrity
Global minder “Both/And”
stress Balance
Do it all –
or die trying Under control
Friends = family Close to
doting parents
Prepared,
rule-setting parents My self = my kids
Disciplined to
do what’s right
Source: GfK Consumer Trends, 2013
Age in 2014:
18-24 25-34 35-49 50-68 69+
Broadly, Gens Z, Y X similar to each other but different to Boomers and Silents
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 46
What devices are they using, to do what?
46
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 47
Product and services reviews more important for Gen Y & and less so Gen Z
Q16_01. Let’s focus on the last time you used your [DEVICE to help you shop for [CATEGORY]. In which of the following ways did you use your [DEVICE] when you were shopping?
Top 2 shopping activities on mobile devices similar across
generations
NET Gen Z Gen Y Gen X Boomers
Compare prices
Search for product info
Check product availability
Locate a store
To access product/service reviews 7
Activity Incidence Rank By Generation (Via Mobile Device – Aust)
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 48
Tablets are used more to shop electronics and higher complexity
categories. Smartphones used less for shopping than tablets
48 Q15a And which devices have you used to help you shop for the below products and services in the past 6 months?
0%
10%
20%
30%
40%
50%
60%
Tablet Smartphone
FMCG categories still in the 20%s shopped via tablet
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 49
Q17b. During any of your shopping occasions over the past 6 months, have you used your smartphone for any of the following?
Showrooming declining, whether friendly or hostile.
Trends suggest some Bricks & Mortar retailer progress (Aust)
2013 2014
35% 16%
23% “Saw the product on
phone and later went to
store to purchase.”
Consistent with global reduction 35% 25%
“Saw product in store
then purchased on
phone elsewhere.”
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 50
Source: GfK Futurebuy 2014
Showrooming Also Appears To Be Declining On Tablets (Aust)
Recent efforts buy Bricks and Mortar retailers appear to be shifting shopper perceptions that buying in
store is price competitive and offers important advantages
2013 2014
20% 28%
25% “Saw the product on
Tablet and later want to
store to purchase.”
Globally down 9pts
“Saw product in store
then purchased on
Tablet elsewhere.”
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 51
Mobile phone payments small but increasing, and are a
source of more data for retailers
51
Of credit card transactions
<$100 are via PayPass
(source: Mastercard Australia)
Of purchases <$100 are
Paywave
(source: Visa Australia)
50%
Direct mobile phone
payments % of purchases,
where they are 6% via apps
(source: RBA)
In mobile purchases
in 2013
>$5m
Ave spend pp via
mobile (2013)
Cash used of all transactions
(source: RBA) Paypal accounts in Australia
Forecast online retail sales made
on mobile devices by 2017
(Source: Emarketer)
$2,616
25%
1%
50%+
47% 69%
2007 2013
5.5m
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 52
29%
Q18F. Thinking about your experience with mobile payments in general, how much do you agree or disagree with the following statements?
Some Shoppers Recognize Mobile Payment Advantages
“Paying with mobile
device is faster.”
24%
“Make shopping more efficient.”
24%
“All payment methods in one place
on mobile device is a Major
Convenience.”
27%
“Is easier than other payments methods.”
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 53
Source: GfK Futurebuy 2014
Mobile Payment Activity In Australia lower than
global benchmarks (function of existing platforms)
% of Shoppers Reporting Making Mobile Payment (Past 6 Months)
19%
24%
35% 39%
46% China 83%
Korea 62%
Japan 10%
Australia WE CEE LATAM APAC
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 54
Q18B. What percentage of transactions do you estimate you pay for using each method below?
Mobile devices are still only 4% of shopping transactions in
2014, but set to rise
37
27
28
4 4
Cash Credit Card Debit Card Mobile device Other
Top mobile payment
categories:
• Toys
• Auto
• Financial Services
• Healthcare
• Apparel
• CE & Mobile
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 55
Q18F. Thinking about your experience with mobile payments in general, how much do you agree or disagree with the following statements?
Infrastructure aside, a range of shopper concerns are likely holding
mobile payment from full potential
“Mobile payment more of a
GIMMICK today than major way I pay.”
42%
“Mobile payment technology STILL
CLUNKY.”
44%
“Worried about SECURITY,
PERSONAL INFORMATION.”
52%
“I am planning to make
more mobile payments in
next 12 months
And…
25%
Ability to make mobile
payments important factor
in making more online
purchases next year
26%
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 56
Q3. Please indicate how much you agree dr disagree with each statement as it relates to your shopping experienes
Privacy A Highly Polarizing Issue
“I like when websites keep track of my visits, then recommend things to me.”
(-6pts)
(-5pts)
(-18pts)
(-7pts)
(-7pts)
Germany
Japan
France Australia
Canada
“Open Book”
“Most Private”
65% Colombia 64%
61%
60%
57%
56%
Romania
China
Brazil
Mexico
Bulgaria
23% 25%
34%
35%
36% (-6pts)
35%
United States
(-4pts)
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 57
LEC Non-LEC
Source: GfK Futurebuy 2014
Leading Edge Consumers Are More Wired And Heavier Web
Shoppers
(% Own Device) (% Reporting Shop behaviour)
LEC Non-LEC
80%
66%
62%
47%
44% 35%
Exclusively Online
Omni-Channel
85% 74%
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 58
Source: GfK Futurebuy 2014
Leading Edge Consumers Are Big On Saving And Sharing
“Using social media to exchange/post info
about product/services.” 46% LEC Non-LEC 24%
% of LEC reporting Doing
more of… 57% Comparing prices across
stores (v.41%) Using coupons on manufacturers websites (v.34%)
54%
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 59
Australian Retailer and Manufacturer digital shopper
marketing readiness
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 60
60%
50%
57%
46%
42%
45%
38%
26%
26%
16%
25%
21%
21%
21%
16%
25%
28%
29%
37%
34%
51%
0% 20% 40% 60% 80% 100%
Digital/mobile technologies are shifting the balance to shoppers andaway from retailers & manufacturers
My organization is prepared to manage the impact of digital/mobiletechnologies on shopping behaviour
My industry lacks best practices for leveraging digital/mobile in-store
A resource shortage is limiting my organization's ability to lead in thedigital/mobile space
A lack of specialist expertise is limiting my organization's ability tolead in the digital/mobile space
A lack of clear strategy is limiting my organization's ability to lead inthe digital/mobile space
A perceived lack of importance is limiting my organization's ability tolead in the digital/mobile space
Net Agree Neutral Net Disagree
Q: DOM5 To what extent do you agree with the following statements with regard to readiness to meet the mobile and digital challenge?
Base: Total Sample (n=145)
There is recognition that digital is shifting the balance of
power toward the shopper, but the industry is lagging
the shopper in the skills and resource to capitalise on it
Despite recognition of its importance, nearly half lack resources, specialist expertise and strategy.
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 61
Q DOM1 Which digital, online or social media techniques have you trialled or adopted for shopper marketing in the past 12 months?
Base: Total Sample (n=148)
Use of digital touchpoints has not moved much since
2011, particularly for manufacturers. 1 in 7 were using no
digital touchpoints.
67% 66%
50%
36%
27%
25% 21%
20% 19%
13%
9% 9%
9%
3%
1%
14%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Websites SocialMedia
Email offers/eDM
Promotionbased
microsites
Search engines – sponsored
results
Onlinecatalogue/printable
e-coupons
Mobileoffers
(eg via SMS)pre-store
Mobileapps (eg
price checkapplications)
Web basedcommunityfeedback &
reviewforums
Onlinereviews
& feedback
Locationbased
offers/NFC
Mobilesearch
Mobilelocation-
based offers
Augmented/Virtual reality
Groupdeal-of-day
offers
Other None ofthe above
Total
Manufacturer
Retailer
Agency
2011 53% 55% 49% 37% 25% 22% 18% 12% 28% 23% n/a 6% 5% n/a 4% n/a 15%
Expected to increase over time
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 62
7% 4% 12%
21% 18% 23%
23%
19% 24%
15%
13%
20% 19%
23%
20%
25% 26%
23%
23%
9% 8% 15%
8%
Total Manufacturer Retailer Agency
None
Less than 25%
25-49%
50-74%
75-99%
100%
Q: DOM2 How many (what %) of your shopper marketing programs and campaigns include digital/social/local/mobile elements?
Base: Total Sample (n=145)
Yet 43% say they use digital, social, mobile elements in
shopper campaigns more than half the time, with
agencies more likely to
USA
2013
75%
(!!)
But what they are using is fairly basic, per prior slide
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 63
Q: DOM3 Is there a dedicated digital/mobile function or capability in your organisation?
Base: Total Sample (n=145)
2/3 of retailers and nearly half of manufacturers don't
have dedicated digital/mobile functions in their
organisation, irrespective of where they sit
Total Manufacturer Retailer Agency
Yes 49%
No 51%
Yes 57%
No 43%
Yes 38%
No 62%
Yes 42%
No 58%
© GfK 2014 | Futurebuy 2014 Australia – Breakfast Seminar 221014 64
74% 73% 80%
4% 2%
20%
2% 2%
2% 2%
4% 5%
13% 15%
0%
20%
40%
60%
80%
100%
Total Manufacturer Retailer
In its ownfunction
Executive
IT
Shopper
Sales
Marketing
Q: DOM4 Where does the digital/mobile capability in your organisation sit (report to)?
Base: Total Sample (n=46)
Where there is a digital capability, it sits in Marketing
USA
2013 2014
37% 48%
USA
2013 2014
12% 36%
Positioning in marketing means not much used in shopper. Current focus of digital by
manufacturers is brand advocacy, not linked to purchase behaviour changes