Presentation Transcript

1. Adapting Omni-Channel Strategies to Modern Consumer Behaviour

   June 3, 2014 Presented by: Sandy Silva, Fashion Industry Analyst The NPD Group Sponsored by MasterCard for Retail Council of Canada
2. Change 2005 St. Peter’s Square
3. 2013 St. Peter’s Square
4. 1900-1940s 1970-1990 Department Stores Automobile: travel farther In-home refrigeration: stock more Big Box Stores Driving smaller merchants out of business EV LUTION OF RETAIL 1900s 1950-1970s Corner Stores Limited choice People walked 1990-2013 Malls Time of the true mall Ecommerce
5. Retailers offer products, hoping consumers buy them. What’s changed is how we talk to them before they get to the store.
6. 300 75 Conversion Conversion Rate 25%
7. Touch points STORE www. IN-STORE displays, product info, store associates RETAIL FLYERS STORE WEBSITES WORD OF MOUTH BRAND www. BRAND WEBSITES PRODUCT REVIEWS ONLINE STORES/ AUCTION SITES
8. Snapshot of Path to Winter Apparel Purchase 18Days 74% passed between first thought of buying product and making purchase of purchases are planned 1.4 Brands in mind 2.2 73 52 Retailers in mind % % Bought a brand Among first considered Bought at Retailer among first considered
9. Touch points UsageCanadians still rely on in-store to make their winter apparel purchase decisions 42% 20% 24% 24% PC electronics
10. Impact on BrandConsiderationWord of Mouth information impacts brand consideration. Consumers use online brand/product reviews to rule brands out. % 56 30 30 43 40 31 39 30 41
11. Impact on Retail ConsiderationWord of Mouth also impacts stores and websites consideration. % 48 25 35 41 33 36 18 24 62
12. How many days on average did it take to make a purchase? Are you wondering why? Remember this? 18 days
13. In-Store Visit Among the 42% who rely on in-store information,their in-store visit was not always the final step in the path to purchase! 16 PRE IN-STORE POST IN-STORE 7 42% 17 8 5 7
14. How Can Retailers Convert More Shoppers? Good news: most consumers only consider two retailers. If you have the right strategy, you should be able to convert consumers…
15. 01 Take It Back to Basics: WORD OF MOUTH! 1900-1940s 1970-1990 Department Stores Big Box Stores 1900s 1950-1970s Corner Stores 1990-2013 Malls Ecommerce
16. Word of Mouth Usage Family, friends, and coworkers are the most important followed by Facebook. 01 Total Digital Touch points WINTER APPAREL PC ELECTRONICS
17. 02 Optimizing Time In-Store Provide access to interactive digital displays in the store to allow shoppers to learn more about the brands and products
18. 02 Optimizing Time In-Store % of Yes
19. 03 Types of Information Sought After (Top 3) %
20. METHODOLOGY: Online survey fielded from Jan. 23 to Feb. 7, 2014 to a Canadian representative sample of 3,337 panelists aged 18-64, representing Canadian adult demographics. To qualify, respondents indicated a planned purchase of one of the following products in the past month: Winter Apparel n=698 (Winter coat or jacket n=362, Winter boots n=336) Personal Accessory n=555 (Watch n=409, Handbag, purse or satchel n=146) Beautyn=699 (Face or beauty cream n=699) PC/ Electronics n=793 (Headphones n=403, Tablet computer n=212, Notebook/ laptop/ desktop computer n=179) Beverage Domestic Appliance (DA) n=592 (Single serve coffee machine n=340, Juicer/ Juice extractor n=108, Espresso machine n=76, Soda maker n=69)
21. Early Retail… EV LUTION OF RETAIL
22. Change Are you ready? EV LUTION OF RETAIL
23. Contact us Sandy Silva Director, Client Development – Fashion and Prestige Beauty The NPD Group sandy.silva@npd.com 647.723.7760 Silvia Xoyon Director, Business Development – Fashion and Prestige Beauty The NPD Group silvia.xoyon@npd.com 647.723.7765