A look at the trends that drove Christmas past, what’s hot for Christmas 2015 and looked at what you need to prepare for into 2016 and beyond.

2. About Somo
November 15 2Copyright and confidential
A full service connected devices solutions provider

4. November 15 4Confidential and copyright of Somo Global Ltd.
Gifts of Christmas past
?
1998
1997
1995
1996

5. November 15 5Confidential and copyright of Somo Global Ltd.
The rise of mobile
Source: Ofcom, 2011; IBM, 2011
26.5%
2010 smartphone
penetration
3.1%
of all 2010
October e-
sales
3.7%
2010 Christmas
retail traffic

6. November 15 6Confidential and copyright of Somo Global Ltd.
The rise of mobile
Source: Ofcom, 2015; eMarketer estimates, 2015; IBM, 2014
4%
10%
19%
28%
33%
2011 2012 2013 2014 2015
59
hours a
month
37%
22%
2%
35%
7.14
£76.29
23%
25%
3%
30%
9.31
£80.03
40%
54%
4%
27%
9.23
£81.06
% of traffic
% of sales
Conversion rate
Bounce rate
Average page views
Average order value
Smartphone Tablet Desktop
Christmas season 2014 metrics Mobile share of ecommerce sales

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Mobile changing consumer behaviour
In store and at home
Gestures Showrooming Webrooming

8. November 15 8Confidential and copyright of Somo Global Ltd.
2010 – The year of the tablet
?
1998
1997
1995
1996

9. 229 million units sold in 2014 alone
36% mobile owners have a tablet
50% smartphone owners have a tablet
Source: IDC, February 2015; ComScore MobiLens Plus, September 2015
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The rise of tablets

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Owning the ecosystem using tablets
£119 £99 £159

11. Twice the conversion rate of smartphone
Key for engaging with families
Preferred device for some silver consumers
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Tablets rounding out the purchase journey
Tablet penetration has slowed, but tablets play a key role in many purchase journeys

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New shopping days
?
1998
1997
1995
1996

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The changing Christmas shopping timetable

14. Of site traffic from mobile Of sales from mobile Average order value on
mobile
60% 47% £88.83
Source: IBM, December 2014
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The changing Christmas shopping timetable
On Black Friday 2014…

15. November 15 15Confidential and copyright of Somo Global Ltd.
Christmas 2015
?
1998
1997
1995
1996

17. Landscape and the Customer Journey

18. Source: comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., September 2015
We are a multi-device nation
November 15 18Confidential and copyright of Somo Global Ltd.
62%
54%
38%
65
%
60
%
55
%
50
%
45
%
40
%
35
%
30
% Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015
%Shareofdigitalmediatimespent
42%
49%
51%
Mobile
Mobile app
Desktop

19. Device Usage
Shopper segmentation evolves based on maturity of shoppers’ use of digital touchpoints.
Source Forrester, 2014
Super Shoppers
Copyright and confidential Nov 2014 19
Holdouts Researchers Traditional Web Shoppers Mobile Shoppers

20. 4 in 10 transactions now
involve multiple devices.
These purchasers are
20% more likely to
complete on mobile.
55%
Source: Google/Nielsen 2015
Source: Criteo, 2015 Source: Google, 2015
November 15Copyright and confidential
Key Changes in Shopping Habits
What’s changed this year
40%
Of those researching on
mobile, 55% want to
make a purchase within
the hour, 83% that day.
82%
Engage with
webrooming

21. The Digital Living Room at Christmas
November 15 21Confidential and copyright of Somo Global Ltd.
11% research
a product
advertised on
TV
69%
expected to
use a device
while
watching TV
12.1% of the
population
shop online
whilst
watching TV
The average
household
has 8 devices
74% of the
14-17 year
olds use a
smartphone
while
watching TV

22. The customer journey is changing
November 15 22Confidential and copyright of Somo Custom Ltd.
Service AdvocacyPurchaseConsiderationAwareness

23. November 15 23Confidential and copyright of Somo Global Ltd.
Micro Moments
Brand Engagement
Research
Proactive EngagementPayment
Service
Advocacy
37% of people claim to now be
more influenced by expert reviews
compared to the past
66% of smartphone users turn to
their smartphones to learn more
about something they saw in a TV
commercial.
Of online consumers, 69% agree that the
quality, timing, or relevance of a company's
message influences their perception of a brand.
Of smartphone users, 91%
look up information on their
smartphones while in the
middle of a task.
More than half (51%) of
smartphone users have discovered
a new company or product when
conducting a search on their
smartphones.
62 % of millennials respond to
marketing offers sent to their
mobile devices

24. November 15 24Confidential and copyright of Somo Global Ltd.
Owning the Mobile Micro-Moment
Awareness Consideration Purchase Service Advocacy
Research
Proactive Payment Loyalty AdvocacyBrand
Engagement Engagement
360°video
Augmented
Reality
Experiential
HTML5 / Rich
Media
App Store
Optimisation
Multi –Screening
Shoppable YouTube
Facebook search
Apple Pro
Contextual
Geo fencing
Geo targeting
IoT
Social Buy Buttons
Mobile Wallet
Wearables
Passbook
On boarding guides
Delivery options
Social
CRM
Notifications
Remarketing

25. Research Micro Moment
November 15 25Confidential and copyright of Somo Global Ltd.

26. Proactive Micro Moment
November 15 26Confidential and copyright of Somo Global Ltd.
“Our approach this
year is less feature film
and more on-trend box
set. Customers want
bite-size consumption.”
Patrick Bousquet-Chavanne,
executive director of
marketing and international

27. Loyalty Micro Moment
November 15 27Confidential and copyright of Somo Global Ltd.

28. Time-based Sales

29. To Black Friday, or not to Black Friday?

30. Retailers are taking different approaches to Black Friday
November 15 30Confidential and copyright of Somo Global Ltd.
Retailers
Disruptors
Partakers
Opt Outs

31. November 15 31Confidential and copyright of Somo Global Ltd.
Flash sales
Daily Deals Events Discounted Luxury

32. Personalisation and Relevance

33. Digital provides opportunity for contextual relevance
The right message at the right time to the right audience in the right format
Device
Activity
Location
Time
Preferences
Identity
Situation
November 15 33Copyright and confidential

34. Expect online ads to be
tailored to their tastes
And 21% expect ads
relevant to their locations.
Of global respondents
claim they buy more and/or
more often when met with
personalised retail
experiences
77%
Source: MyBuys, 2015
Source: Digitas LBi Connected Commerce April
2015
November 15Copyright and confidential
Contextual relevancy is an important facet
Half of customers regularly see irrelevant information
60%75%
Of shoppers said they’re
willing to allow retailers to
use in-store purchase data
if that means the brand’s
communication with them
will be more personal.
Source: Aberdeen Group, 2015

35. Source: Customer Pulse Survey 2015
Personalised Product
November 15Copyright and confidential

36. Social

37. The Rise of the Social Influencer
Source: McKinsey ,April 2015.
YouTubers
Peer-to-Peer
Bloggers
Top influencers account
for a disproportionate
share of total product
recommendations
Variations across categories,
and little category overlap
2/3 of impact is direct
Consumers trust
recommendations over
promotional content
Influencers drive brand loyalty
as well as purchases
November 15 37Confidential and copyright of Somo Global Ltd.

38. November 15 38Confidential and copyright of Somo Global Ltd.
Bridging the gap

39. Service

41. November 15 41Confidential and copyright of Somo Global Ltd.

42. In-store Experiences

43. Of UK consumers plan to
search online and then go
in-store to see the product
when they buy technology
this holiday.
Cite seeing and touching
products as the main
benefit of buying in-store
22 pure play etailers have
now opened physical
stores
70%44% 75%22
Source: Rubicon project, September 2015 Source: Deloitte, January 2015Source: US, Timetrade, April 2015
November 15 43Confidential and copyright of Somo Global Ltd.
The in-store experience is evolving
Mobile needs to blend seamlessly with offline
Of shoppers admitted they
are more likely to embrace
new in-store technologies
such as GPS and WiFi
tracking if they receive
customised benefits in
return, such as
personalised money-off
vouchers
Source: Retail Touchpoints, 2015

44. Summary

45. November 15 45Confidential and copyright of Somo Global Ltd.
Brand Engagement
Research
Proactive EngagementPayment
Service
Advocacy
2015: Year of the Micro Moments

46. Christmas of the future

47. Source: Gartner, August 2015
Gartner Hype Cycle for emerging technologies
November 15 47Confidential and copyright of Somo Global Ltd.

48. Christmas 2016: differentiation through experiences
November 15 48Confidential and copyright of Somo Global Ltd.
Differentiated
Competitive
position
Undifferentiated
Market Pricing Premium

49. Forge brand connection
through emotions – joy,
humour, nostalgia,
celebration, love – rather
than product
Emerging quest for
authenticity through CSR
focus and charitable
partnerships
Focus on social #s, but
also create fuller
multichannel
experiences across all
customer touch-points
from online to in-store
Emotion Ethical
Joined
up
November 15 49Confidential and copyright of Somo Global Ltd.
Emotion and ethics driven campaigns

50. November 15 50Confidential and copyright of Somo Global Ltd.
Fragmentation challenges omni-channel experience
Screen sizes, device formats and hardware functionality differ hugely
4” 5” 7” 11” 13”1.3”

51. Velocity of new technology creates new interfaces
Voice
recognition
Gesture (non
touch)
Facial
recognition
Fingerprint recognition
3D Force Touch
Interface evolves...and disappears completely

52. The proactive assistant grows in influence
November 15 52Confidential and copyright of Somo Global Ltd.

53. Values driven
consumers, concerned
with notions of ethics
and fairness, on a quest
for brand authenticity.
Progressive technology
users, mobile-first and
with high expectations of
brands’ digital presence.
Seek experiential in-
store environments
where the pleasure of
being in-store isn’t
limited to products or
transactions.
Values
driven Progressive
Experience
hunters
November 15 53Confidential and copyright of Somo Global Ltd.
Millennials grow share of spend and Gen Z comes of age

54. New tech-driven opportunities in-store

55. Connected in-store experiences
November 15 55Confidential and copyright of Somo Global Ltd.
Beacons
provide
product
location and
wayfinding
assistance
Welcome
message
triggered on
customer
approach to
shop
Screen
provides
personalised
recommendat
ions
NFC on
product gives
enhanced
product
information
Items paid for
as customer
leaves using
frictionless
tech
Inventory
tracked
through RFID
tags; shelves
monitor stock
levels on
shelves
Heating and
lighting auto-
controlled
through smart
thermostat and
motion sensors
AR
scannable
mannequins
to shop the
lookCustomer
can call for
context rich
assistance
using phone
Smart price
tags can be
changed in
real time or to
specific user
Cameras
monitor
crowding
points and
most browsed
items

56. November 15 56Confidential and copyright of Somo Global Ltd.
Context and location-based experiences

57. November 15 57Confidential and copyright of Somo Global Ltd.
Re-emergence of Augmented Reality

58. November 15 58Confidential and copyright of Somo Global Ltd.
Frictionless payment

59. November 15 59Confidential and copyright of Somo Global Ltd.
Shoppable everywhere

60. Driverless cars facilitate store collection and
/ or home delivery
Impulse purchases delivered by drone – hyper
local delivery within minutes
November 15 60Confidential and copyright of Somo Global Ltd.
Delivery infrastructure will change as new tech evolves

61. New tech opportunities for customer experience at home

62. 63% of consumers believe that VR will impact their shopping experience
Source: Walker Sans, Future of Retail, 2015
VR launching to consumers
Jan 2016
Oculus Rift
H1 2016
PlayStation VR
Q1 2016
Microsoft HoloLens

63. November 15 63Confidential and copyright of Somo Global Ltd.
Large screen experiences

64. Smartphone at the heart of connected device adoption
Usage contexts
Social
Personal
24/7 connectivity
Augment ATL
marketing
Augment products post
purchase
Triggers (QR, AR, Image)
Location Contexts
Connected Health/Fitness
Connected Wallet
Connected Car
Connected Retail
Connected Home
Connected Self
Mobile content & services
delivered on device
Mobile augmenting
physical world
Mobile as remote control
for connected devices1
.
2
.
3
.
Mass market adoption
12 months 18 monthsToday

65. Smart products – the gift of Christmas 2016
November 15 65Confidential and copyright of Somo Global Ltd.
Support
Augment
Enhance

66. November 15 66Confidential and copyright of Somo Global Ltd.
From second screening to limitless connections

67. November 15 67Confidential and copyright of Somo Global Ltd.
3D Printing disrupts the production line

68. Summary

69. Some rules for success
Stay up to date and informed on new and emerging technologies
Start planning, launching and testing for Christmas 2016 now
Keep your audience front and centre and use technology as an enabler
November 15 69Confidential and copyright of Somo Global Ltd.
Pick the right partners
Ensure you educate internally

70. @somoglobal
somoglobal.com