• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
GfK eCommerce Retailing Potential 2013
 

GfK eCommerce Retailing Potential 2013

on

  • 1,332 views

 

Statistics

Views

Total Views
1,332
Views on SlideShare
1,332
Embed Views
0

Actions

Likes
6
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    GfK eCommerce Retailing Potential 2013 GfK eCommerce Retailing Potential 2013 Presentation Transcript

    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 1 E-COMMERCE – THE POTENTIAL FOR RETAILING? Thomas Bachl – Global Head of Consumer Panels, GfK SE Oliver Koll – Director of Business Insights, Europanel ECR Conference Brussels May 15, 2013
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 2 E-Commerce landscape changing because of strategic investment (and divestment) plans “HomeShop18's $30M investment shows India's e-commerce market growth” “Publix will exit e-commerce for a second time. The supermarket chain will stop accepting online orders” “Retailers eye e-commerce investment amid imminent store closures” “Tesco to complete international online jigsaw early next year” ComputerWeekly.com, January 2013 Bloomberg, March 2013 Reuters, April 2012 InternetRetailer.com, 2012
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 3 Contents E-Commerce: The Current Status1 E-Commerce Models in FMCG2 E-Commerce: A broader Perspective3 Online Consumer Behavior4 Guidelines for E-Commerce Strategies in FMCG5
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 4 E-Commerce: The Current Status 1
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 5 Source Europanel based on monthly trends on hundreds of FMCG categories in 13 countries France, Germany, Italy, NL, Spain, UK, Poland, Russia, Brazil, Mexico, China, Japan, USA Stable FMCG volume sales in Western Europe Volume Yr ago % change Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13-8 -8 -4 -2 2 4 6 8 10 -0.1 +0.7 +0.7 -0.2 -0.1 +0.8 +2.8 +2.8 +1.8 +1.1 W. Europe Global W. Europe Food inflation Dez 12
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 6 Source: GfK Trendsensor Consumption, People 14/16 In (almost) all countries perception of shopping as annoying increases 48 53 42 47 34 35 41 44 44 45 29 30 49 53 52 47 58 53 66 65 59 56 56 55 71 70 51 47 2008 2012 2008 2012 2008 2012 2008 2012 2008 2012 2008 2012 2008 2012 annoying fun SPAIN FRANCE ITALY POLAND GERMANY NL UK
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 7 34% of global population are internet users Source: http://www.internetworldstats.com status June 30, 2012 Almost 2.5 bn humans access the internet Penetration Up to 10% Up to 20% Up to 30% Up to 40% Up to 50% >50%
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 8 Source: Forrester Research Online retail share low, but expected to continue at rapid rates 71% sales growth 41% sales growth 8 13 7 5 5 2 2 10 15 10 7 7 4 3 USA Germany UK Netherlands France Italy Spain 20172013
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 9 35% of households are responsible for 70% of sales Source: GfK E-Commerce Survey; 15.000 HH of GfK ConsumerScan Panel, August 2012 E-Commerce affinity differs: 70% of Germans online-involved Convenience- oriented Shopper 9% 24% Occasional Online Shopper SafeBuy Online Shopper Multi-Channel Shopper 6% 19% Offline-focused Shoppers Average Online Shopper 20% 28% Confirmed Offline Shopper E-Commerce Laggards 70%30% E-Commerce Types in Germany Share of households Share of ecommerce revenue
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 10 Multi-channel responsible for 19% of spend, convenience for 24% 9% 6% Source: GfK E-Commerce Survey; 15.000 HH of GfK ConsumerScan Panel, August 2012 Heavy E-Commerce users tend to be younger, smaller households, slightly more educated Young (204)1) Single or DINKS (184) Young Families (158) Well-educated (119) Young (148)1) Single or DINKS (174) Young Families (125) Well-educated (127) High Income (124) 1) Index relative to average Internet-involved household MULTI-CHANNEL CONVENIENCE-ORIENTED Little difference regarding social class
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 11 Source: CCRRCE Study by Europanel; Roland Berger E-Commerce suited to answer evolving shopper needs RETAILER Social Networking Use the power of the social web Individualization Tailor my shopping to me Quality Moment Re-discover the joy of food shopping The value promise 2.0 Technology enabled saving 100% Transparency Understand origins and ingredients Back to origins Less complexity, more authenticity Stealth health Well-being made easy Green responsibility Fresh organic, sustainably sourcedSmart Convenience Efficiency in every respect
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 12 German retail e-commerce sales share, by industry, 2012 [% of total retail sales] UK retail e-commerce sales share, by industry, 2013 [% of total retail sales] Source: http://jeff.a16z.com/2012/06/29/the-case-for-e-commerce-acceleration-aka-bye-bye-bby; SAS and Verdict Research, "How the UK will shop: 2013, Dec 27, 2012 Online shares by product category: Grocery needs to catch up Health & Beauty 5.5% Food & Grocery 5.5% DIY & Gardening 5.5% Furniture & Floor Coverings 6.1% Homewares 11.4% Clothing & Footwear 14.3% Electronics & Appliances 42.3% Books 52.9% Music & Video 80.1% Health & Beauty 6.3% Clothing & Footwear 12.5% Furniture & Floor Coverings 7.8% DIY & Gardening 8.6% Electronics & Appliances 25.5% Books 29.2% Music & Video 45.6%
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 13 Source: Europanel Substantial variation in FMCG buying on the internet 0 1 2 3 4 5 6 7 8 9 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UK S. Korea France China ValueShare Germany Scandinavia Turkey Poland Most EU countries 50% penetration 23% penetration
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 14 Penetration [%] Sales [m] Source: GfK ConsumerScan Germany (rp) / FMCG / Top 6 Warenkörbe auf Basis KRW und Umsatz in 2012 / Internet Beauty&Health with highest penetration, pet food leads sales charts Online Penetration: 11,2Online Penetration: 11.2 Online Sales: 387 m € BHC 5.4 Other Near- food 3.9 Pet 2.4 Ambient Food 2.4 Hot Bever age 2.0 Confec- tionery 1.9 Pet 30.1 BHC 28.1 Other Near- food 13.5 Hot Bever age 8.0 Ambient Food 5.7 Confec- tionery 3.4
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 15 Take Aways Potential to ALLEVIATE conventional SHOPPING DOWNSIDES (1) TIME requirement (if done right) (2) INFLEXIBILITY (place, often time) (3) COSTS (travel, lack of comparison) TECHNOLOGY and internet SAVVINESS provide the necessary FOUNDATIONS for successful e-commerce initiatives – travel, music, but also furniture, electronics and fashion already boast high online sales Grocery e-commerce projected to take off shortly – substantial BARRIERS need to be overcome, especially (1) on the demand side for specific product categories (2) on the supply side with respect to a feasible logistics solution
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 16 E-Commerce Models in FMCG 2
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 17 Source: A.T. Kearney Etailing Business Models in FMCG PICKUPHOME DELIVERY In-store picking Ware- house picking Only available to bricks-and-mortar retailers Click-and-collect Online shoppers collect goods at grocery stores Store to home Grocers use existing stores to supply online shoppers Drive-through Some grocers are adopting this time-saving approach Warehouse to home Online start-up (and some bricks-and- mortar) deliver from warehouse Source: A.T. Kearney
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 18 Source http://www.guardian.co.uk/business/2010/feb/21/ocado-flotation Case Study 1: Grocery E-Commerce in the UK
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 19 The Shop
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 20 Ocado Promises SUSTAINABILITYFOCUS + 60 MINUTES DELIVERY WINDOW
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 21 Source: Kantar World Panel UK, Growth rates are 12 week moving averages Home Delivery Share of Till Roll Grocers 0% 1% 2% 3% 4% 5% 6% Tesco Asda Sainsbury's Waitrose Ocado Total Internet Growth 2010: 17% Growth 2011: 10% Growth 2012: 18%
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 22 Source: Kantar World Panel UK Home Delivery User Profile Household sizeSocial class Housewife age No. of children AB C1 C2 D E 0 1 2 3 4 5 6 7 2011 2012 2013 under 28 28-34 35-44 45-64 65+ 0 2 4 6 2011 2012 2013 8 10 Class Age Upmarket Mostly 40 and younger 1 2 3 4 5+ 2011 2012 2013 No 1 HH 2 HH 3+ HH 0 2 4 6 8 10 HH Child Larger Households With children 0 2 4 6 8 10 12 14 2011 2012 2013
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 23 On average, 10K more income results in about 1% more internet buying Source: Kantar World Panel UK Home Delivery User Income 52 w/e Jan 23 2011 52 w/e Jan 22 2012 52 w/e Jan 20 2013 [£] 0-9,999 pa 10,000-19,9 99 pa 20,000-29,9 99 pa 30,000-39,9 99 pa 40,000-49,9 99 pa 50,000-59,9 99 pa 60,000-69,9 99 pa 70,000+ 0 2 4 6 8 10 12
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 24 Source: Kantar World Panel UK, LinkQ Internet Shoppers: time poor, LOHAS, innovative&tech-savvy I am always under time pressure when I grocery shopping 175 I am prepared to pay more for organic food 172 I regularly use the Internet to find ways to make my life easier 160 My children eat what I eat 155 My style is influenced by celebrities or people I see in TV or in magazines 151 I try to give my children healthy meals 151 I have little time to myself 151 I regularly use different types of media to keep up with the latest fashion trends 146 People in my household like to have the latest technology available 145 I work to a strict budget when I'm buying groceries 145 I am actively encouraging my children to have a more active lifestyle 144 I feel I spend enough quality time with my children 141 I am always looking out for health & beauty products with new added benefits 139 I make a shopping list before I go out and stick to it 136 I actively seek out fair trade products 135 I like trying out new products when they appear on the supermarket shelves 131 The nutritional labeling on food & drink products has an effect on what I buy 130 I often buy take-away meals to eat at home 130 Till Roll Share indexed on All Shoppers – 52 w/e Apr 15 2012Time poor LOHAS Innovative & techsavvy
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 25 Chilled / Fresh – Online Index 99
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 26 Frozen – Online Index 125
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 27 Case Study 2: Drive in France
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 28 The Process
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 29 Source: Kantar Worldpanel France Drive Penetration is booming 4% 7% 10% 5,800,000 HOUSEHOLDS 21.5% 3.5% share in early 2013 from <1% in 2010 2010 2011 MAT June 2012 2012
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 30 Top 3 motivations of drive shoppers 89% 63% 65% Time and convenience Less tempted Chosen time to go shopping IT'S ALL ABOUT CONTROL Source: Kantar Worldpanel France
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 31 Preferred and less preferred categories Products aimed at young children Products that save time for parents Heavy, bulky products BUT: ONLY HALF AS MANY TRIPS CONTAIN FRESH Source: Kantar Worldpanel France
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 32 Formats affected by DRIVE 65% Of turnover gained by Drive comes from Hypermarkets Most from very large hypermarkets > 7,500m2 Source: Kantar Worldpanel France
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 33 High Private Label share in Drive Banners effect? NO Categories effect? NO Shoppers profile effect? slightly Ranging effect? YES, definitely 33.6% Hypermarkets 30.7% Click & CollectConvenience stores 43.4% Supermarkets 37.5% Source: Kantar Worldpanel France
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 34 Game changing in brand loyalty 1ST DRIVE PURCHASE Subsequent DRIVE purchase 50% 25% 25% All drive shoppers of Brand A (still water) Brand A benchmark in hypermarkets 15% 26% 59% Source: Kantar Worldpanel France
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 35 Take Aways CONTROL is the Top Shopper Motive for e-commerce in FMCG •  TIME (when and how long?) •  SPEND (price comparison, suggestion, guarantee) •  CHOICE (feature comparison, list making, checking) DIFFERENT MODELS seem to work and are country dominant: Driven by traffic mode, focus urban/rural, population density E-commerce can satisfy "LOHAS" needs (organic, local, environmental), but CHALLENGE for specific categories (trust with respect to fresh, awareness with respect to impulse, consulting with respect to service-dominant) Threat for manufacturers in HIGHER PL PRESENCE and less impulse (but opportunity of HIGHER BRAND LOYALTY)
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 36 E-Commerce: A Broader Perspective 3
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 37
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 38 Source: GfK Consumer Panel Nonfood, Germany Internet is more than a POS In 20% of all non-food purchase trips online plays a role in the consumer journey RESEARCH 11109 2009 2010 2011 322 2010 20112009 666 201120102009 808284 20102009 2011 PURCHASE ONLINE OFFLINE ONLINE OFFLINE Nonfood-Spend, 2009 - 2011
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 39 Source: GfK Consumer Panel Nonfood, Germany Choice frequently affected by online Nonfood-Spend, 2012 Q1&2 11 8 8 9 66 1 Confirmed Offline Shopper 96 1 2 E- Commerce Laggards 92 2 2 4 Occasional Online Shopper 78 3 12 Average Online Shopper 73 5 13 SafeBuy Online Shopper 50 6 32 Total 80 3 11 61 5 26 Multi- Channel Shopper 75 3 15 Convenience- oriented Shopper PurchaseResearch PurchaseResearch Research Purchase PurchaseResearch
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 40 Source: GfK Retail & POS Research, Base: Smartphone User Android Smartphone not only an alternative – substantial added reach Incremental Reach Browser Usage Oct. 12; Reach [%] (16,5) (94,1) (48,2) (62,9) 4 4 +46% +18%+24%+46% +31% +33% desktop +mobile 13 8 1 desktop 9 9 desktop +mobile 19 15 1 3 desktop 16 16 desktop +mobile 19 14 1 desktop 15 15 desktop +mobile 20 13 1 6 desktop 14 13 16 desktop 49 49 14 desktop +mobile 60 38 8 14 desktop 46 46 desktop +mobile 65 36
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 41 Total Germany, persons 14+ years Source: MEP | 3 months: December 2012 - February 2013 | TV*, fixed line @ home, mobile : Android only excl. tablets | Total Germany 14+ years = 64.8 mil. Not only reach, but longer usage: More contact potential! Ø usage duration per media channel fixed line seems to come on top of TV, smartphone on top of fixed line TV: only advertising relevant times and channels (11 channels) smartphone: Android only 120 109 106 104 33 43 50 81 57 57 152 213 114 TV only TV, fixed line Smartphone, TV, fixed line Smartphone, TV Smartphone, fixed line 162
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 42 Interspar print advertisement 2011 Fusion of online and offline
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 43 Fusion of online and offline
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 44
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 45 Source: Koen Pauwels, talk at the AiMark summit in Paris, March 2013 Major retailer Store Traffic: What drives it? Classic Media? Owned Media? Earned Media? Paid Media? 7/4/2010 7/18/2010 8/1/2010 8/15/2010 8/29/2010 9/12/2010 9/26/2010 10/10/2010 10/24/2010 11/7/2010 11/21/2010 12/5/2010 12/19/2010 1/2/2011 1/16/2011 1/30/2011 2/13/2011 2/27/2011 3/13/2011 3/27/2011 4/10/2011 4/24/2011 5/8/2011 5/22/2011 6/5/2011 6/19/2011 7/3/2011 7/17/2011 7/31/2011
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 46 Source: Koen Pauwels, talk at the AiMark summit in Paris, March 2013 All variables directly drive Store Traffic SEM Radio TV Circulars STORE TRAFFIC Ads Love Went/ Purchased Online Traffic Natural Search Classic Media Social Media Online Behavior MODEL CONTROLS FOR GENERAL RETAIL TRAFFIC LEVEL
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 47 Source: Koen Pauwels, talk at the AiMark summit in Paris, March 2013 But all these factors also increase liking SEM Radio TV Circulars LOVE Ads Went/ Purchased Store traffic Online Traffic Natural Search Classic Media Social Media Online Behavior MODEL CONTROLS FOR GENERAL RETAIL TRAFFIC LEVEL
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 48 Source: Koen Pauwels, talk at the AiMark summit in Paris, March 2013 (Partly) Other factors drive online search SEM Radio TV Circulars NATURAL SEARCH Ads Online Traffic Store Traffic Classic Media Social Media Online Behavior Love Went/ Purchased MODEL CONTROLS FOR GENERAL RETAIL TRAFFIC LEVEL
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 49 35% paid media 24% social media Source: Koen Pauwels, talk at the AiMark summit in Paris, March 2013 In sum: 60% of variation in store traffic due to paid & social media Online Traffic Google Search Love Posts Ad Posts Went Posts TV Circulars Radio Paid Search Store Traffic
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 50 Online strategies of German retailers FMCG-ONLINESHOP YESNO NO YES BRAND PAGE ON FACEBOOK
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 51 Online strategy of a manufacturer
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 52 E-Commerce only one building block to secure brand relevance Make sure that the essence of your brand is experienced in all real and virtual touchpoints of your brand dm Brand REAL VIRTUAL EDLP Attractive Private Labels Top Manufacturer Brands Fairness Sustainability Online-Sales via Amazon Alverde App Facebook Website
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 53 Take Aways Even if shoppers do not use online for the final transaction, ONLINE MATTERS in other sections of the PURCHASE FUNNEL (information, post-purchase communication, sharing experiences) OFFLINE marketing activities impact ONLINE CONSUMER ACTIVITIES and final PURCHASE ONLINE marketing activities impact OFFLINE CONSUMER ACTIVITIES and final PURCHASE Online offers MANY OPPORTUNITIES: from customer tracking to understanding to finalizing transactions
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 54 Online Consumer Behavior 4
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 55 Source: GfK Futurebuy, 2011 (USA) Online and Offline Shopping Expectations Differ SpeedandEaseareparticularlyimportantinanOnlineshopping environment,alongwithsafetyandinformationvalue IDEAL ATTRIBUTES – IN STORE SHOPPING IDEAL ATTRIBUTES – ONLINE SHOPPING Organized 54% Friendly 44% Clean 42% Fast 41% Orderly 35% Easy 32% 65% Fast 58% Easy 55% Effortless Organized 47% Safe 43% Informative 40%
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 56 Source: comScore, Inc. 2011 data for random sample of ≈ 70K panelists Extent of search before purchase 20% of purchases are at first site visited, 37% at second, and 51% at third. Little difference across categories how long people search20% of purchases at 1st site visited, and 51% at 1st, 2nd or 3rd. Little difference across categories how long people search Among purchases made at first site visited, Amazon 22% of the time, Wal-Mart 9%, QVC 5%, Amway 4%, JCP 3%. Significant differences across categories where people search (sites have gained equity in specific categories, not in others) Based on web sessions in which consumer purchased: Shoes, bed & bath, baby supplies, tools etc., handheld devices, audio/video, office supplies, sport & fitness, health & beauty products
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 57 Wide distribution needed to get high penetration and achieve dominant shares Source: Farris, Antitrust Bulletin 2004 Distribution Share Curves in Offline Settings: Highly convex Distribution MarketShare Brand available only in stores with broad assortment - more competition Brand also in stores with narrow assortment
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 58 FROM Source: Kusum Ailawadi, Power of Brand in the Multichannel World, AiMark Summit, Paris Does this differ in an online setting? TO •  Consumers engage in (some) search (at least for durables) •  Search is easy online (made even easier by comparison sites) •  Higher preference + WTP for goods in branded and previously visited websites (Brynjolfsson & Smith 2000) •  If these are also the sites with good Search Engine Optimization (SEO) and search advertising, CURVE CAN BE VERY CONCAVE Distribution MarketShare Distribution MarketShare Most of the market share returns at the first few points of online distribution
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 59 Source: Kusum Ailawadi, Power of Brand in the Multichannel World, AiMark Summit, Paris Power of Brand Online Why brand matters Brand equity + SEO = Search equity Lower dependence on retailers online Branded Search Fewer online distribution points More clicks and lower cost/click for search ads Lower price erosion
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 60 Sources: Lynch & Ariely 1998; Brynjolfsson & Smith 2000; Smith & Brynjolfsson, 2001; Ancarani & Shankar 2004 Prices and Price Sensitivity Online Prices levels are lower online •  "Price integrity" in posted prices common among multichannel retailers Price dispersion is greater •  High share e-tailers often don't have the lowest prices Price sensitivity is not! •  Specially in presence of additional service and information on non-price attributes •  WTP higher at branded and familiar websites – reduce uncertainty
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 61 Source: GfK Futurebuy, 2011, % Agreement shown Not everybody is insecure: Internet-savvy consumers feel in control "I am using new ways and information to find things I need" 82% 91% "I feel I'm more in control than ever in shopping" "I am learning how to shop more efficiently and better than before" "It's a better time than ever to find right products at right prices" 84%75% 82% 83% 85%86% EuropeUSA
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 62 Takeaways Some things CHANGE ONLINE •  Higher brand loyalty •  Lower price sensitivity MANY THINGS STILL THE SAME AS OFFLINE •  Brand equity builds search equity •  Store loyalty and website stickiness •  Right distribution still relevant •  A few powerful retailers •  Strong retail competition
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 63 Guidelines for E-Commerce Strategies in FMCG 5
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 64 Manufacturer Guidelines Multi channel presence seems compulsory to capture different shopper segments (or at least majority of their shopping occasions) 1 •  Optimize websites for enticement and efficiency •  Engage shoppers who use social media to share experiences (brand ambassadors) •  Build relationships post purchase (e.g. personalized messages) Leverage emerging technologies' to improve full shopper experience2 •  Be part of 'menu'-based buying to meet different needs and budget •  Use technology (gamification) to bring fun back into shopping Exploit motives for online buying (lack of time, don't enjoy shopping)3 •  With retailers identify creative impulse trigger mechanisms online •  Use customer knowledge to suggest the right impulse items •  Provide brand equity to overcome barriers in fresh buying (retailer trust, co-branded menu items involving fresh, money back) Work around downsides of online FMCG buying (less impulse, less fresh)4
    • © GfK 2013 | ECR Europe Brussels | 15. May 2013 65 Retailer Guidelines Use technology to bring back fun in a multi-channel shopping world •  Offer new experiences by integrating digital and physical (Virtual Shops in Physical Environments) •  Retail "Pause Places" to Engage the Shopper and Create Fun Time 1 •  More convenient, effortless, and informative shopper experience •  Shopper-centric stores, friendly environment, experiential conditions •  Co-locating products (and fitting sizes) for integrated solutions (saves time) •  Options for co-creation, to address more control over choices Combat deal-hunting by pursuing value creation other than price2 •  Location-based advertising, link social media sites to retail sites •  Use mobile sites designed for mobile Make serious run at getting out in front of mobile users3 •  Easy listing, menu offers •  Special products; own-label items •  Attractive loyalty programs Avoid price comparison threat and 'showrooming' effect4