MobiU2012 Summit: Showrooming Study by Deloitte

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  • Investment in mobile, latest happenings from a business perspective around mobile: Private companies in mobile raised $3.9 billion in venture capital in the first half of 2012, which is $1 billion greater than the same period in 2011 (Rutberg & Co) In North America, $800 million was invested in mobile marketing efforts (Interactive Advertising Bureau) Google’s R&D budget - $5.2 bn, Apple’s R&D budget - $2.6bn (Company 10Ks) Smartphone penetration is growing and will reach 176 M users or 54% of the population by 2015 (eMarketer) Average Retailer spend on mobile presence remained less than $50,000 in 2010, although 69% of eBusiness teams planned on increasing investments in 2011 (Forrester)
  • Consumer adoption and Consumer Use Smartphone penetration is growing and will reach 176 M users or 54% of the population by 2015 (eMarketer) Users are doing more with their mobile devices resulting in bandwidth use increasing 10X by 2015 (Cisco) Analysts expect 30 million iPhones to be sold this quarter ( http://business.financialpost.com/2012/09/14/apple-iphone-5-seen-sold-out-on-first-presale-day-boosting-shares-to-record-high/ )
  • 82% Retailers state objective is to drive online or mobile sales 42% state ownership of mobile strategy falls under Web/eCommerce team 52% of eBusiness managers say they struggle to get the budget or resources for mobile Source: Forrester Research – The State of Online Retailing 2011: Marketing, Social, and Mobile, June 3, 2011
  • Retailers’ future core customers will be increasingly using smartphones   67% of smartphone owners age 14 to 34 years old have used their devices to shop 48% of smartphone owner claim that device has influenced their purchase decision. This is even more pronounced in the younger population - 55% of smartphone owners 14 to 34 years old say smartphones have influenced their decision
  • Make a new slide and show the numbers. Once consumers find a use for their smartphone for a particular type of store, they tend to consistently use it for 50 to 60% of their trips. - Smartphones currently influence 5.1 percent of annual retail store sales -- $159 billion in forecasted sales for 2012
  • Mobile’s influence will continue to grow exponentially over the next four years, driven by: Rising smartphone penetration Increased smartphone use by shoppers (Smartphone use for store-related shopping increases by 40% after the first 6 months of device ownership ) - Decreasing barriers to use (e.g. more stores implementing free wi-fi) - Improved mobile functionality of applications that support the store shopping experience
  • MobiU2012 Summit: Showrooming Study by Deloitte

    1. 1. The Mobile Influence FactorBobby Stephens, Senior Manager, Deloitte Consulting - @bobbystephens Jazz Singh, Manager, Deloitte Consulting - @DeloitteDIGI_US Event hashtag #MobiU2012 Presented by the Heartland Mobile Council
    2. 2. #MobiU2012, @bobbystephens, @DeloitteDIGI_US Agenda• Mobile Growth; Unclear Investments• Deloitte’s Mobile Influence Survey - Approach & Methodology - Mobile Influence Factor - Detailed Findings• Predictions for The Future• Q&A
    3. 3. #MobiU2012, @bobbystephens, @DeloitteDIGI_USTechnology companies embrace mobile… Apple, Google Push Facebook Reorients Itself Deeper Into Mobile for a Small-Screen World Amazon Already Testing Smartphone
    4. 4. #MobiU2012, @bobbystephens, @DeloitteDIGI_US…as do consumers…
    5. 5. #MobiU2012, @bobbystephens, @DeloitteDIGI_US…yet retailers struggle to justify investment Mobile’s Value Mobile Lacks Retailer + = isn’t Clearly Organizational Investment in Understood Visibility Mobile Remains Low 82% of Retailers 42% of Retailers 52% of eBusiness state objective for state mobile Managers state mobile is to drive strategy falls under they struggle to get online sales Web/eCom Team budget/resources Sources: Forrester Research – The State of Online Retailing 2011: Marketing, Social, and Mobile, June 3, 2011
    6. 6. #MobiU2012, @bobbystephens, @DeloitteDIGI_USRealmobile’s influencenot in-store conversionIt’s value for retail is on mCommerce.. US mCommerce Sales ($12 Billion) US Retail Sales ($3.4 Trillion) Even if 1% of retail sales are influenced by mobile Mobile Influenced Retail Sales ( $34 billion)
    7. 7. #MobiU2012, @bobbystephens, @DeloitteDIGI_USIntroducing…Deloitte’s Mobile Influence Survey Conducted between March 20-30, 2012 Polled a national sample of 1,041 random consumers and an additional 1,000 smartphone owners Data was collected and weighted to be representative of a U.S. Census for gender, age, income and ethnicity
    8. 8. #MobiU2012, @bobbystephens, @DeloitteDIGI_US28% of consumer population uses mobile toaid in-store shopping Total Population 100%Smartphone Owners 48% Use for In- Store Shopping 28%
    9. 9. #MobiU2012, @bobbystephens, @DeloitteDIGI_USSurvey drove estimate of the “MobileInfluence Factor” by category… Own a Use it in smartphone particular retail category Mobile Influence Factor by Retail Category Frequency of useTotal in that categoryconsumer Use it for store-population related shopping Source: Deloitte Survey
    10. 10. #MobiU2012, @bobbystephens, @DeloitteDIGI_US…mobile influence on store sales is already agame-changing opportunity US mCommerce Sales ($12 Billion) US Retail Sales ($3.4 Trillion) 5.1% of sales are influenced by mobile, which means.. Mobile Influenced Retail Sales ( $158 billion)
    11. 11. #MobiU2012, @bobbystephens, @DeloitteDIGI_USMobile adoption differs by category, but onceadopted it is used in 50 – 60% of the trips Smartphone Shopping Adoption by Store Category Electronics 60.9% 8.3% GM & Department Stores 52.5% 6.7% Clothing 56.2% 5.9% Food & Beverage 58.2% 5.7% Books & Music 57.1% 5.2% Home Improvement 4.6% 53.5% Sporting Goods 56.7% 4.7% Health & Drug 58.4% 4.4% Furniture 58.7% 3.9% Office Supply 51.1% 3.1% Convenience Store 56.0% 3.0%
    12. 12. #MobiU2012, @bobbystephens, @DeloitteDIGI_US~20% of retail store sales will be “mobileinfluenced” by 2016 Mobile Influenced Sales ($ Billion) % Change N/A 43% 40% 39% 32% % of Total 5.1% 7.1% - 7.5% 9.8% - 10.7% 13.3% - 15.3% 17.2% - 20.6% Retail SalesSource: Deloitte Analysis
    13. 13. #MobiU2012, @bobbystephens, @DeloitteDIGI_US Furthermore, “mobile influenced” sales will exceed mCommerce and eCommerce salesSales ($ Billion) 2012 2016
    14. 14. #MobiU2012, @bobbystephens, @DeloitteDIGI_US Showrooming can be an opportunity, if you can influence customers’ mobile choices How customers use Call or Text Smartphones in Store Search using Search Engine Non-retailer-specific Mobile App / Site Retailer-specific Mobile App / SiteSocial networking sites / apps to share product info None of these
    15. 15. #MobiU2012, @bobbystephens, @DeloitteDIGI_USRetailers who provide a tailored experiencevia mobile apps stand to gain the most Retailer-specific Mobile App / site Social networking sites / apps to share product info Call or Text Search using Search Engine Non-retailer-specific Mobile App / Site
    16. 16. #MobiU2012, @bobbystephens, @DeloitteDIGI_USDeloitte’s Mobile Influence Factor -Conclusions • Retailers are investing in mobile, but yet to have a industry-wide “business case” to reference • “Mobile influenced” store sales are the secret sauce for retailers, not mCommerce • In Mobile, like in retail, one size does not fit all • In-store conversion hinges on enabling the right capabilities AND getting customers to adopt quickly
    17. 17. #MobiU2012, @bobbystephens, @DeloitteDIGI_USThe Future of Mobile in Retail... Mobile form factor will change Mobile will transform and continue to blend the lines the physical store & the between “online” and store associate “mobile” Mobile Mobile Disruption Disruption Mobile interactions create Mobile will force the credit increasingly rich data for card to go the way of the retailers to use personal check Explosion of Data Mobile truly shifts the power of assortment from retailers to the consumer

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