Ericsson ConsumerLab: In-Line Shopping Report


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For more reports from the Ericsson ConsumerLab visit:

The In-line Shopping insight report is a result of cooperation between Copenhagen Institute for Futures Studies (CIFS) and Ericsson ConsumerLab. It draws upon research findings in the 2012 CIFS Members’

Report number 4 but focuses on an analysis of consumer attitudes and behaviors in the US in 2012.

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Ericsson ConsumerLab: In-Line Shopping Report

  1. 1. consumerlabIN-LINESHOPPINGMerging the online andin-store shopping experienceAn Ericsson Consumer Insight Summary ReportNovember 2012
  2. 2. contentsA NEW REALITY 3INTEGRAL TO THE EXPERIENCE 4MIXING IT UP 5THE BEST OF BOTH WORLDS 6THE NATURAL FLOW 7 METHODOLOGY • Ericsson ConsumerLab Analytical Platform • Method: online survey of internet users • ample size and coverage: 1,500 interviews S in the USA, spread over a national geographic • Age: 15 upwards • Field work: performed in 2012 by GFK Roper ABOUT THIS REPORT The In-line Shopping insight report is a result of cooperation between Copenhagen Institute for Futures Studies (CIFS) and Ericsson ConsumerLab. It draws upon research findings in the 2012 CIFS Members’ Report number 4 but focuses on an analysis of consumer attitudes and behaviors in the US in 2012. Ericsson ConsumerLab Copenhagen Institute for Futures Studies ConsumerLab gains its knowledge through a global consumer The Institute is an international, apolitical and not-for-profit research program based on interviews with 100,000 individuals think tank that has advised decision makers all over the world each year, in more than 40 countries and 15 megacities – about the future since 1970. A part of the Institute’s turnover is statistically representing the views of 1.1 billion people. Both invested directly in research. Futures studies are used to create quantitative and qualitative methods are used, and hundreds change, progress and innovation here and now in companies, of hours are spent with consumers from different cultures. organizations and society. All ConsumerLab reports can be found at: Visit the Copenhagen Institute for Futures Studies at:  IN-LINE SHOPPING  NOVEMBER 2012
  3. 3. A NEW REALITYThe widespread use of smartphones means that we have the ability tobe online anytime and anywhere. This is feeding an explosion in appsand online shopping services where people constantly shift their attentionbetween the internet and the physical world, without even thinking about it.Eventually it will become meaningless to talk about online and offline astwo separate realities. This will have a profound impact on our daily livesand habits, with massive implications also on our shopping behavior, whichincreasingly depends on having access to our favorite smartphone apps. Key findings Integral to the experience The best of both worlds – – smartphones are already consumers want online integral to the shopping shopping to be more experience, with 4 out like an in-store shopping of 10 US smartphone experience where they owners using their phone have the ability to see, to make small payments, touch and try things. For 80% scan product barcodes or 64 percent a major benefit download coupons. of shopping in-store is that they can take home their ixing it up – traditional M purchases directly, and of US shoppers shopping is already being 39 percent dislike waiting to like to see, touch mixed spontaneously with receive online purchases. and try things online shopping. Consumers in store. are merging the two without Conversely, consumers even thinking about it. also want the in-store We call this in-line shopping. experience to be more like online shopping where they two thirds of product For have price transparency categories, people prefer and can see what’s on offer a combination of online without having to jostle and in-store shopping with other customers. over online only. 68 percent like shopping online whenever they want, while 31 percent dislike that they cannot shop in retail stores at any time. he natural flow – T consumers are making 69% of US consumers shopping part of the natural enjoy shopping online flow of their everyday lives. because it is easy Understanding this will be to research and a crucial aspect for compare prices. successful retailing in years to come. NOVEMBER 2012  IN-LINE SHOPPING  3
  4. 4. INTEGRAL TO THE EXPERIENCE Smartphones are already integral to the shopping experience. This is not surprising when you consider that smartphones and apps have become a part of our daily lives. Nearly 40 percent of smartphone owners worldwide now log on to the internet before even getting out of bed and will keep their handset 39% close by all day. Similarly, apps have already been seamlessly integrated into many daily activities. OF US SMARTPHONE USERS USE Consumers find that apps make life simpler and SMARTPHONES WHEN SHOPPING are demanding them for almost everything. When it comes to shopping, we found that 4 out of Figure 1: Breakdown of what shoppers 10 US smartphone owners are using their phone for use their smartphones for small payments, product barcodes or coupons. 80% The most popular service was product barcode apps, which people scan with their phone to get 70% price comparisons and sometimes extended 60% 63% product information. This service was used by 52% 63 percent of people who already use their 50% 46% smartphones for shopping (figure 1). 40% 30% Over half use coupons and 46 percent make small 20% payments on their phones. When it comes to life stages, usage is quite evenly spread, though 10% educated white collar workers are most likely to use 0% these services. Seniors are the least likely to use their smartphones for shopping, with less than Product barcodes 10 percent doing so. Coupons Small payments Source: Ericsson ConsumerLab Analytical Platform 2012 Base: Use smartphone for small payments, product barcodes or coupons in the USA, aged 15 and upwards4  IN-LINE SHOPPING  NOVEMBER 2012
  5. 5. MIXING IT UP Either online or in-storeFigure 2: Consumers’ preference for shopping online or in-store across 12 categories Prefer to buy online100% Source: Ericsson ConsumerLab Analytical Platform 2012 Base: Internet users in the USA, aged 15 and upwards 80% 60% 40% 20% 0% es s s es cs rs Ds s ic ts s ts ng oe ok et us ke te uc ag m ni DV ck Bo sh hi pu tro M tic ga od er is /ti o/ om or ev ec rn pr t gs d de en an fu /b el g C ty in Vi Ev in od ok e al au ys th om on Fo bo be To lo rs H C el Pe av lth Tr ea HIt no longer makes sense to talk Even more interestingly, for shopping carried out in eachabout online versus offline, because two thirds of the categories, category, 2 out of 10 smartphonewe are constantly switching between people prefer a combination of owners prefer to shop online for toysthe two. Traditional shopping is online or in-store shopping rather and games, personal electronicsalready being mixed spontaneously than online only. and computers. For non-smartphonewith online shopping. owners, only 1 in 10 prefer to Figure 3 shows that as a whole, purchase these items online.In analyzing shopping preferences online shopping is becomingacross 12 goods categories, we mobilized, with smartphone users With online and in-store shoppingfound that 5-80 percent of shopping showing much higher interest preferences merging, we are seeingactivities could potentially be carried across all 12 product categories. a new reality that mixes the two.out online (figure 2). When comparing the type ofFigure 3: Percentage of smartphone users and non smartphone users who prefer to shoponline across 12 categories Not smartphone user Smartphone user 80% Source: Ericsson ConsumerLab Analytical Platform 2012 Base: Internet users in the USA, aged 15 and upwards 70% 60% 50% 40% 30% 20% 10% 0% Ds ts es s ts s es cs rs s ic s ng oe ok et us ke uc te DV ag m ni ck Bo sh hi pu tro M tic ga od er o/ is /ti om or ev ec pr rn t de gs d en an fu /b el g C ty in Vi Ev in od au ok e al ys th om on Fo be bo To lo rs H C el Pe av lth Tr eaH NOVEMBER 2012  IN-LINE SHOPPING  5
  6. 6. THE BEST OFBOTH WORLDSFigure 4: Online retailers need to cherry-pick retail store benefits What do you dislike most about shopping online? What do you like most about shopping in a store?73% I can’t see touch or try things I can see touch and try things 80% I have to wait to 39% receive purchases I can take my purchases home directly 64% 51% I worry about 34% security/credit card It’s fun to browse stores Lack of 12% 34% customer I can get personal service customer serviceSource: Ericsson ConsumerLab 11% 31%Analytical Platform 2012 Too much Something to do withBase: Internet users in the USA, choice friends or familyaged 15 and upwardsThe physical experience of shopping this is what they miss most when In choosing a mixture of bothin a store cannot be replaced. they shop online. online and in-store shoppingHowever, the benefits of shopping activities, we can conclude thatonline are becoming part of the However, consumers also recognize for consumers it doesn’t matterin-store experience, enabling the the benefits of shopping online whether their shopping is done inbest of both worlds for consumers. and wish to bring these to the retail the physical world or not. What is store experience. For 69 percent important is the overall convenienceFigure 4 shows that for 80 percent of Americans, the best thing about of the shopping experience in theirof consumers the best thing about making purchases online is that it everyday activities. Consumersshopping in a store is that they can is “easy to research and compare prefer the option that makes“see, touch and try things”. People prices”, whereas 56 percent say that life easier, and this involveswant to bring the same hands-on the worst thing about shopping in an integration of the two.experience to their online shopping. a store is that they “don’t like73 percent of Americans say that lines and crowds”.Figure 5: Stores need to cherry-pick online benefits What do you dislike most about shopping in a store? What do you like most about shopping online? 56% I don’t like lines and crowds Easy to research and compare prices 69% I cannot shop 31% whenever I want to I can shop whenever I want to 68% Stores have a 35% limited choice I can find things I can’t find in stores 66% Poor 17% customer service No pressure from sales people 61%Source: Ericsson ConsumerLab No need to spend time/ 22% 50%Analytical Platform 2012 It is difficult/Base:Internet users in the USA, takes time money to go to storeaged 15 and upwards6  IN-LINE SHOPPING  NOVEMBER 2012
  7. 7. THE NATURAL FLOW24/7 SHOPPINGApps make life easy. They provide access to the online services of our choice.Increasingly, the same apps also provide entry points to the shopping decisionsthat we make in line with the flow of every day life. SMS Weather Email check E-book Commute Social Exercise Podcast networkMorning noon Night Email Commute Podcast Social network Sending a vacation The pizza advert on my That book review My Australian friend plan to my manager bus looks delicious. makes me want to says that the new reminds me that I have I will scan the code read the Steve Jobs Peter Jackson movie to call the travel agent. and save it with my biography. is great. I’ll pre-order supermarket app. a ticket straight away. Exercise SMS Weather check E-book I’ve booked an online Better check with the Below freezing point I’ve had no time to appointment with my family that pizza is OK tonight, time to get pass the bookstore, personal trainer. for dinner. winter tyres. but luckily the Jobs Time to show him bio is available my measurements! from the e-book store.Consumers are making shopping part of the natural opportunities arise. Understanding the evolution of theflow of their everyday lives. It is becoming linear rather in-line shopping phenomenon will be the most crucialthan being seen as a planned activity or something aspect for successful retailers in the years to come.that needs to be postponed until shopping NOVEMBER 2012  IN-LINE SHOPPING  7
  8. 8. Ericsson is the world’s leading provider of communicationstechnology and services. We are enabling the Networked Societywith efficient real-time solutions that allow us all to study, work andlive our lives more freely, in sustainable societies around the world.Our offering comprises services, software and infrastructure withinInformation and Communications Technology for telecom operatorsand other industries. Today more than 40 percent of the world’smobile traffic goes through Ericsson networks and we supportcustomers’ networks servicing more than 2.5 billion subscribers.We operate in 180 countries and employ more than 100,000 people.Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In 2011 the company had revenues of SEK 226.9 billion (USD35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm andNASDAQ, New York stock exchanges.The content of this document is subject to revision withoutnotice due to continued progress in methodology, design andmanufacturing. Ericsson shall have no liability for any error ordamage of any kind resulting from the use of this document.EricssonSE-126 25 Stockholm, SwedenTelephone +46 10 719 00 00Fax +46 8 18 40 85 EAB-12:064365 © Ericsson AB 2012